Revenue is recognized over time for arrangements with customers for which: (i) the Company's performance does not create an asset with an alternative use to the Company, and (ii) the Company has an enforceable right to payment, including reasonable profit margin, for performance completed to date. Revenue recognized over time is estimated based on costs incurred to date plus a reasonable profit margin. If either of the two conditions noted above are not met to recognize revenue over time, revenue is recognized following the transfer of control of such products to the customer, which typically occurs upon shipment or delivery depending on the terms of the underlying arrangement.

The Company recognizes revenue when a contract exists and when, or as, it satisfies a performance obligation by transferring control of a product or service to a customer. Contracts are accounted for when they have approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer.

The Company generally enters into a master services arrangement that establishes the framework under which business will be conducted. These arrangements represent the master terms and conditions of the Company's services that apply to individual orders, but they do not commit the customer to work with, or to continue to work with, the Company nor do they obligate the customer to any specific volume or pricing of purchases. Moreover, these terms can be amended in appropriate situations.

Customer purchase orders are received for specific quantities with predominantly fixed pricing and delivery requirements. Thus, for the majority of our contracts, there is no guarantee of any revenue to the Company until a customer submits a purchase order. As a result, the Company generally considers its arrangement with a customer to be the combination of the master services arrangement and the purchase order. Most of the Company's arrangements with customers create a single performance obligation as the promise to transfer the individual manufactured product or service is capable of being distinct.

The Company’s performance obligations are satisfied over time as work progresses or at a point in time. A performance obligation is satisfied over time if the Company has an enforceable right to payment, including a reasonable profit margin. Determining if an enforceable right to payment includes a reasonable profit margin requires judgment and is assessed on a contract by contract basis.

Generally, there are no subjective customer acceptance requirements or further obligations related to goods or services provided; if such requirements or obligations exist, then a sale is recognized at the time when such requirements are completed and such obligations are fulfilled.

The Company does not allow for a general right of return. Net sales include amounts billed to customers for shipping and handling and out-of-pocket expenses. The corresponding shipping and handling costs and out-of-pocket expenses are included in cost of sales. Taxes assessed by a governmental authority 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 net sales.

For contracts requiring over time revenue recognition, the selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. The Company uses a cost-based input measurement of progress because it best depicts the transfer of assets to the customer, which occurs as costs are incurred during the manufacturing process or as services are rendered. Under the cost-based measure of progress, the extent of progress towards completion is measured based on the costs incurred to date.

The table below includes the Company’s revenue for the three and six months ended April 4, 2020 and March 30, 2019, respectively, disaggregated by geographic reportable segment and market sector (in thousands):



	Three Months Ended April 4, 2020
	Reportable Segment:
	AMER		APAC		EMEA		Total
Market Sector:
Healthcare/Life Sciences	$	117,143	$	118,033	$	35,804	$	270,980
Industrial/Commercial	87,260		182,582		16,961		286,803
Aerospace/Defense	96,197		42,933		18,356		157,486
Communications	30,828		19,994		1,273		52,095
External revenue	331,428		363,542		72,394		767,364
Inter-segment sales	3,026		24,303		1,609		28,938
Segment revenue	$	334,454	$	387,845	$	74,003	$	796,302



	Three Months Ended March 30, 2019
	Reportable Segment:
	AMER		APAC		EMEA		Total
Market Sector:
Healthcare/Life Sciences	$	125,434	$	141,655	$	32,547	$	299,636
Industrial/Commercial	94,208		131,808		24,220		250,236
Aerospace/Defense	75,854		47,752		16,904		140,510
Communications	67,681		29,984		1,004		98,669
External revenue	363,177		351,199		74,675		789,051
Inter-segment sales	1,313		27,242		1,147		29,702
Segment revenue	$	364,490	$	378,441	$	75,822	$	818,753



	Six Months Ended April 4, 2020
	Reportable Segment:
	AMER		APAC		EMEA		Total
Market Sector:
Healthcare/Life Sciences	$	241,339	$	267,758	$	74,170	$	583,267
Industrial/Commercial	179,181		381,928		35,694		596,803
Aerospace/Defense	201,686		86,182		41,740		329,608
Communications	58,794		48,685		2,616		110,095
External revenue	681,000		784,553		154,220		1,619,773
Inter-segment sales	6,930		54,434		4,260		65,624
Segment revenue	$	687,930	$	838,987	$	158,480	$	1,685,397



	Six Months Ended March 30, 2019
	Reportable Segment:
	AMER		APAC		EMEA		Total
Market Sector:
Healthcare/Life Sciences	$	241,199	$	293,761	$	65,254	$	600,214
Industrial/Commercial	177,926		248,079		43,373		469,378
Aerospace/Defense	138,227		89,846		34,902		262,975
Communications	158,145		60,959		2,924		222,028
External revenue	715,497		692,645		146,453		1,554,595
Inter-segment sales	2,860		63,908		1,667		68,435
Segment revenue	$	718,357	$	756,553	$	148,120	$	1,623,030

For both the three and six months ended April 4, 2020 and March 30, 2019, approximately 90% of the Company's revenue was recognized as products and services were transferred over time.

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, contract assets, and deferred revenue on the Company’s accompanying Condensed Consolidated Balance Sheets.

Contract Assets: For performance obligations satisfied at a point in time, billing occurs subsequent to revenue recognition, at which point the customer has been billed and the resulting asset is recorded within accounts receivable. For performance obligations satisfied over time as work progresses, the Company has an unconditional right to payment, which results in the

recognition of contract assets. The following table summarizes the activity in the Company's contract assets for the six months ended April 4, 2020 and March 30, 2019 (in thousands):



	Six Months Ended
	April 4, 2020			March 30, 2019
Contract assets, beginning of period	$	90,841		$	—
Cumulative effect adjustment at September 29, 2018	—			76,417
Revenue recognized during the period	1,460,580			1,393,777
Amounts collected or invoiced during the period	(1,440,144		)	(1,383,391		)
Contract assets, end of period	$	111,277		$	86,803