Revenue | Note 10 – Revenue The Company’s revenues are generated primarily from the sale of manufactured products built to customer specifications. The Company also generates revenue from design, development and engineering services, in addition to the sale of other inventory. Revenue is measured based on consideration specified in a contract with a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a manufactured product to a customer. The Company’s contracts with customers are generally short-term in nature. Customers are generally billed when the product is shipped or as services are performed. Under the majority of the Company’s manufacturing contracts with customers, the customer controls all the work-in-progress as products are being built. Revenues under these contracts are recognized progressively based on the cost-to-cost method. For other manufacturing contracts, the customer does not take control of the product until it is completed. Under these contracts, the Company recognizes revenue upon transfer of control of product to the customer. Revenue from design, development and engineering services is recognized over time as the services are performed. The Company assumes no significant obligations after shipment as it typically warrants workmanship only. Therefore, the warranty provisions are generally not significant. If the Company records revenue, but does not issue an invoice, a contract asset is recognized. The contract asset is transferred to accounts receivable when the entitlement to payment becomes unconditional. Taxes assessed by governmental authorities that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as fulfillment costs and are included in cost of sales. Disaggregation of revenue In the following tables, revenue is disaggregated by market sector. The tables also include a reconciliation of the disaggregated revenue with the reportable operating segments. Reportable Operating Segments Three Months Ended June 30, 2020 (in thousands) Americas Asia Europe Total Market Sector: Industrials $ 24,298 49,379 13,453 $ 87,130 A&D 80,939 — 7,585 88,524 Medical 72,434 55,890 6,427 134,751 Semi-Cap 37,321 37,151 12,379 86,851 Computing 35,487 8,366 — 43,853 Telecommunication 21,020 28,789 48 49,857 External revenue 271,499 179,575 39,892 490,966 Elimination of intersegment sales 17,301 8,804 332 26,437 Segment revenue $ 288,800 $ 188,379 $ 40,224 $ 517,403 Six Months Ended June 30, 2020 Americas Asia Europe Total Market Sector: Industrials $ 58,243 $ 97,604 $ 34,109 $ 189,956 A&D 193,951 — 13,773 207,724 Medical 141,813 100,093 10,821 252,727 Semi-Cap 67,770 74,443 27,358 169,571 Computing 65,561 14,893 — 80,454 Telecommunication 47,669 57,448 381 105,498 External revenue 575,007 344,481 86,442 1,005,930 Elimination of intersegment sales 28,189 15,507 782 44,478 Segment revenue $ 603,196 $ 359,988 $ 87,224 $ 1,050,408 Reportable Operating Segments Three Months Ended June 30, 2019 (in thousands) Americas Asia Europe Total Market Sector: Industrials $ 43,618 $ 51,645 $ 19,401 $ 114,664 A&D 98,523 — 8,442 106,965 Medical 67,962 41,446 4,779 114,187 Semi-Cap 26,139 23,726 12,585 62,450 Computing 119,907 12,731 52 132,690 Telecommunication 34,855 35,375 416 70,646 External revenue 391,004 164,923 45,675 601,602 Elimination of intersegment sales 13,158 9,247 223 22,628 Segment revenue $ 404,162 $ 174,170 $ 45,898 $ 624,230 Six Months Ended June 30, 2019 Americas Asia Europe Total Market Sector: Industrials $ 86,386 $ 107,227 $ 37,424 $ 231,037 A&D 194,860 — 15,994 210,854 Medical 126,374 81,904 9,387 217,665 Semi-Cap 54,538 48,469 25,464 128,471 Computing 230,174 26,741 85 257,000 Telecommunication 77,629 80,631 1,135 159,395 External revenue 769,961 344,972 89,489 1,204,422 Elimination of intersegment sales 26,259 16,607 369 43,235 Segment revenue $ 796,220 $ 361,579 $ 89,858 $ 1,247,657 For the six months ended June 30, 2020 and 2019, 91% and 92%, respectively, of the Company’s revenue was recognized as products and services transferred over time. |