Revenue

12 Months Ended

May 01, 2021

Revenue From Contract With Customer [Abstract]

Revenue

Note 2. Revenue

The Company generates revenue from the manufacturing of products for customers in diversified global markets. The majority of the Company’s revenue is recognized at a point in time. The Company has determined that the most definitive demonstration that control has transferred to a customer is physical shipment or delivery, depending on the contractual shipping terms, except for consignment transactions. Consignment transactions are arrangements where the Company transfers product to a customer location but retains ownership and control of such product until it is used by the customer. Revenue for consignment arrangements is recognized upon the customer’s usage.

Revenue associated with products which the Company believes have no alternative use (such as highly customized parts), and where the Company has an enforceable right to payment, are recognized on an over time basis. Revenue is recognized based on progress to date, which is typically even over the production process through transfer of control to the customer.

Estimating total contract revenue may require judgment as certain contracts contain pricing discount structures, early payment discounts or other provisions that can impact the transaction price. The Company generally estimates variable consideration utilizing the most likely amount to which it expects to be entitled. When the contract provides the customer with the right to return eligible products, the Company reduces revenue at the point of sale using current facts and historical experience by using an estimate for expected product returns. The Company adjusts these estimates at the earlier of when the most likely amount of consideration that is expected to be received changes or when the consideration becomes fixed. Accordingly, an increase or decrease to revenue is recognized at that time. The Company’s payment terms with its customers are typically 30-45 days from the time control transfers. As the Company’s standard payments terms are less than one year, the Company has elected the practical expedient under ASC 606 to not assess whether a contract has a significant financing component.

Costs to fulfill/obtain a contract

The Company incurs pre-production tooling costs related to products produced for customers under long-term supply arrangements. These costs are capitalized and recognized into income upon acceptance. The Company concluded that pre-production tooling and engineering costs do not represent a promised good or service under ASC 606, and as such, reimbursements received are accounted for as a reimbursement of the expense, not revenue.

The Company has not historically incurred material costs to obtain a contract. In the instances that costs to obtain contracts are incurred, the Company will capitalize and amortize those over the life of the contract.

Contract balances

The Company receives payment from customers based on the contractual billing schedule and specific performance requirements established in the contract. Billings are recorded as accounts receivable when an unconditional right to the contractual consideration exists. A contract asset is an entity’s right to consideration in exchange for goods or services that the entity has transferred to a customer. A contract liability exists when the Company has received consideration, or the amount is due from the customer in advance of revenue recognition. Contract assets and contract liabilities are recognized in other current assets and other liabilities, respectively, in the Company's consolidated balance sheets.

Unbilled receivables (contract assets) - Pursuant to the over-time revenue recognition model, revenue may be recognized prior to the customer being invoiced. An unbilled receivable is recorded to reflect revenue that is recognized over time. Unbilled receivables were $0.6 million and $0.5 million as of May 1, 2021 and May 2, 2020, respectively. During fiscal 2021, $0.5 million of previously unbilled receivables were recorded into accounts receivable. There were no impairments of contract assets as of May 1, 2021.

Deferred revenue (contract liabilities) - For certain of the price reductions offered by the Company, the amount of the reduction cannot be attributed entirely to production efficiencies gained. In these cases, the annual price-downs are considered to be material rights as the customer, as part of their current contract, are purchasing an option that they would not have received without the contract to purchase future product. When a contract contains a material right, a portion of the transaction price is allocated to the material right for which revenue recognition is deferred until the customer exercises its option. Deferred revenue was $0.3 million as of both May 1, 2021 and May 2, 2020, respectively. Previously deferred revenue of $0.1 million was recorded into revenue during fiscal 2021.

Disaggregated revenue information

The following table represents a disaggregation of revenue from contracts with customers by segment and geographical location. Net sales are attributed to regions based on the location of production. Though revenue recognition patterns and contracts are generally consistent, the amount, timing and uncertainty of revenue and cash flows may vary in each reportable segment due to geographic and economic factors.

	Fiscal Year Ended May 1, 2021 (52 Weeks)
(in millions)	Auto		Industrial		Interface		Medical		Total
Geographic net sales:
North America	$	406.4	$	142.9	$	61.0	$	2.7	$	613.0
Europe & Africa		212.3		68.2		—		—		280.5
Asia		137.0		56.8		0.6		0.1		194.5
Total net sales	$	755.7	$	267.9	$	61.6	$	2.8	$	1,088.0
Timing of revenue recognition:
Goods transferred at a point in time	$	722.1	$	267.9	$	61.6	$	2.8	$	1,054.4
Goods transferred over time		33.6		—		—		—		33.6
Total net sales	$	755.7	$	267.9	$	61.6	$	2.8	$	1,088.0
	Fiscal Year Ended May 2, 2020 (53 Weeks)
(in millions)	Auto		Industrial		Interface		Medical		Total
Geographic net sales:
North America	$	435.6	$	160.6	$	57.9	$	1.6	$	655.7
Europe & Africa		202.1		48.4		0.3		—		250.8
Asia		74.4		42.4		0.6		—		117.4
Total net sales	$	712.1	$	251.4	$	58.8	$	1.6	$	1,023.9
Timing of revenue recognition:
Goods transferred at a point in time	$	675.4	$	251.4	$	58.8	$	1.6	$	987.2
Goods transferred over time		36.7		—		—		—		36.7
Total net sales	$	712.1	$	251.4	$	58.8	$	1.6	$	1,023.9

Customer Concentration

Sales to GM and Ford in the Automotive segment, either directly or through their tiered suppliers, are shown below.

	Fiscal Year Ended
	May 1, 2021			May 2, 2020			April 27, 2019
Percentage of Net Sales:
GM		27.5	%		26.8	%		35.5	%
Ford		8.8	%		10.7	%		11.6	%