Revenue

9 Months Ended

Sep. 30, 2020

Revenue From Contract With Customer [Abstract]

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 September 30, 2020
(in thousands)			Americas		Asia		Europe		Total
Market Sector:
	Industrials	$	24,303	$	47,281	$	14,600	$	86,184
	A&D		100,941		—		3,958		104,899
	Medical		65,389		61,322		7,431		134,142
	Semi-Cap		47,021		38,546		13,154		98,721
	Computing		35,788		8,551		—		44,339
	Telecommunication		22,023		35,507		136		57,666
	External revenue		295,465		191,207		39,279		525,951
	Elimination of intersegment sales		10,171		6,300		264		16,735
	Segment revenue	$	305,636	$	197,507	$	39,543	$	542,686
			Nine Months Ended September 30, 2020
			Americas		Asia		Europe		Total
Market Sector:
	Industrials	$	82,546	$	144,885	$	48,709	$	276,140
	A&D		294,892		—		17,731		312,623
	Medical		207,202		161,415		18,252		386,869
	Semi-Cap		114,791		112,989		40,512		268,292
	Computing		101,349		23,444		—		124,793
	Telecommunication		69,692		92,955		517		163,164
	External revenue		870,472		535,688		125,721		1,531,881
	Elimination of intersegment sales		38,360		21,807		1,046		61,213
	Segment revenue	$	908,832	$	557,495	$	126,767	$	1,593,094

			Reportable Operating Segments
			Three Months Ended September 30, 2019
(in thousands)			Americas		Asia		Europe		Total
Market Sector:
	Industrials	$	41,328	$	55,454	$	18,191	$	114,973
	A&D		108,101		—		7,253		115,354
	Medical		79,201		44,582		3,990		127,773
	Semi-Cap		23,998		31,332		12,721		68,051
	Computing		47,364		12,158		—		59,522
	Telecommunication		33,793		35,459		304		69,556
	External revenue		333,785		178,985		42,459		555,229
	Elimination of intersegment sales		10,576		9,107		182		19,865
	Segment revenue	$	344,361	$	188,092	$	42,641	$	575,094
			Nine Months Ended September 30, 2019
			Americas		Asia		Europe		Total
Market Sector:
	Industrials	$	127,714	$	162,681	$	55,615	$	346,010
	A&D		302,961		—		23,247		326,208
	Medical		205,575		126,486		13,377		345,438
	Semi-Cap		78,536		79,801		38,185		196,522
	Computing		277,538		38,899		85		316,522
	Telecommunication		111,422		116,090		1,439		228,951
	External revenue		1,103,746		523,957		131,948		1,759,651
	Elimination of intersegment sales		36,835		25,714		551		63,100
	Segment revenue	$	1,140,581	$	549,671	$	132,499	$	1,822,751

For the nine months ended September 30, 2020 and 2019, 90% and 92%, respectively, of the Company’s revenue was recognized as products and services transferred over time.