Revenue Recognition

3 Months Ended

Mar. 31, 2024

Revenue Recognition

Revenue Recognition

Note 14—Revenue Recognition

Revenues consist of product sales to either end customers and their appointed contract manufacturers (including original equipment manufacturers) or to distributors, and the vast majority of our sales are recognized at a point-in-time under the core principle of recognizing revenue when control transfers to the customer. With limited exceptions, the Company recognizes revenue at the point in time when we ship or deliver the product from our manufacturing facility to our customer, when our customer accepts and has legal title of the goods, and where the Company has a present right to payment for such goods. For the three months ended March 31, 2024 and 2023, less than 5% of our net sales were recognized over time, where the associated contracts relate to the sale of goods with no alternative use as they are only sold to a single customer and whose underlying contract terms provide the Company with an enforceable right to payment, including a reasonable profit margin, for performance completed to date, in the event of customer termination. Since we typically invoice our customers at the same time that we satisfy our performance obligations, contract assets and contract liabilities related to our contracts with customers recorded in the Condensed Consolidated Balance Sheets were not material as of March 31, 2024 and December 31, 2023. These amounts are recorded in the accompanying Condensed Consolidated Balance Sheets within Prepaid expenses and other current assets or Other accrued expenses as of March 31, 2024 and December 31, 2023.

The Company receives customer orders negotiated with multiple delivery dates that may extend across more than one reporting period until the contract is fulfilled, the end of the order period is reached, or a pre-determined maximum order value has been reached. Orders typically fluctuate from quarter to quarter based on customer demand and general business conditions. It is generally expected that a substantial portion of our remaining performance obligations will be fulfilled within three months, and nearly all of our performance obligations are fulfilled within one year. Since our performance obligations are part of contracts that generally have original durations of one year or less, we have not disclosed the aggregate amount of transaction prices associated with unsatisfied or partially unsatisfied performance obligations as of March 31, 2024.

While the Company typically offers standard product warranty coverage that provides assurance that our products will conform to the contractually agreed-upon specifications for a limited period from the date of shipment, the Company’s warranty liabilities as of March 31, 2024 and December 31, 2023, and related warranty expense for the three months ended March 31, 2024 and 2023, have not been and were not material in the accompanying Condensed Consolidated Financial Statements.

Disaggregation of Net Sales

The following table shows our net sales disaggregated into categories the Company considers meaningful to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors for the three months ended March 31, 2024 and 2023:

	Harsh
	Environment				Communications				Interconnect and				Total Reportable
	Solutions				Solutions				Sensor Systems				Business Segments
Three Months Ended March 31,	2024		2023		2024		2023		2024		2023		2024		2023
Net sales by:
Sales channel:
End customers and contract manufacturers	$	675.3	$	623.8	$	990.9	$	890.8	$	1,032.0	$	950.5	$	2,698.2	$	2,465.1
Distributors and resellers		240.7		230.4		274.8		235.9		42.6		42.6		558.1		508.9
	$	916.0	$	854.2	$	1,265.7	$	1,126.7	$	1,074.6	$	993.1	$	3,256.3	$	2,974.0
Geography:
United States	$	455.1	$	418.8	$	346.6	$	336.2	$	311.4	$	297.3	$	1,113.1	$	1,052.3
China		81.0		86.3		374.2		350.0		215.2		182.8		670.4		619.1
Other foreign locations		379.9		349.1		544.9		440.5		548.0		513.0		1,472.8		1,302.6
	$	916.0	$	854.2	$	1,265.7	$	1,126.7	$	1,074.6	$	993.1	$	3,256.3	$	2,974.0

Net sales by geographic area are based on the customer location to which the product is shipped. It is impracticable to disclose net sales by product or group of products.