Operating Segment, Geographic Information and Significant Customers

Operating segments are defined as components of an enterprise evaluated regularly by the Company's chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. The Company is comprised of one operating and reportable segment. The Company utilized the management approach for determining its operating segment in accordance with ASC 280, Segment Reporting.

The geographic distribution of the Company’s revenues as determined by order origination based on the country in which the Company's legal subsidiary is domiciled is summarized as follows:



	U.S.		Europe		Asia Pacific		Eliminations			Total
THREE MONTHS ENDED DECEMBER 31, 2018
Net revenues to unaffiliated customers	$	145,669	$	13,200	$	220	$	—		$	159,089
Inter-geographic revenues	803		345		—		(1,148		)	—
Net revenues	$	146,472	$	13,545	$	220	$	(1,148	)	$	159,089
THREE MONTHS ENDED DECEMBER 31, 2017
Net revenues to unaffiliated customers	$	105,687	$	9,417	$	2,808	$	—		$	117,912
Inter-geographic revenues	3,169		43		—		(3,212		)	—
Net revenues	$	108,856	$	9,460	$	2,808	$	(3,212	)	$	117,912
SIX MONTHS ENDED DECEMBER 31, 2018
Net revenues to unaffiliated customers	$	277,018	$	24,638	$	1,489	$	—		$	303,145
Inter-geographic revenues	2,450		703		—		(3,153		)	—
Net revenues	$	279,468	$	25,341	$	1,489	$	(3,153	)	$	303,145
SIX MONTHS ENDED DECEMBER 31, 2017
Net revenues to unaffiliated customers	$	203,402	$	16,895	$	3,684	$	—		$	223,981
Inter-geographic revenues	4,916		65		—		(4,981		)	—
Net revenues	$	208,318	$	16,960	$	3,684	$	(4,981	)	$	223,981

Effective July 1, 2018, the Company adopted the requirements of ASC 606 using the retrospective method. As previously mentioned, such adoption did not have a material impact to the Company's consolidated financial statements. The following tables present disaggregated revenue consistent with the Company's strategy of expanding its technological capabilities and program content. As additional information related to the Company’s products by end user, application and/or product grouping is attained, the categorization of these products can vary over time. When this occurs, the Company reclassifies revenue by end user, application and/or product grouping for prior periods. Such reclassifications typically do not materially change the sizing of, or the underlying trends of results within, each revenue category.

The following table below presents the Company's net revenue by end user for the periods presented:



	Three Months Ended December 31,				Six Months Ended December 31,
	2018		2017		2018		2017
Domestic (1)	$	142,906	$	89,969	$	273,485	$	179,647
International/Foreign Military Sales (2)	16,183		27,943		29,660		44,334
Total Net Revenue	$	159,089	$	117,912	$	303,145	$	223,981

(1) Domestic revenues consist of sales where the end user is within the U.S., as well as sales to prime defense contractor customers where the ultimate end user location is not defined.

(2) International/Foreign Military Sales consist of sales to U.S. prime defense contractor customers where the end user is known to be outside the U.S., foreign military sales through the U.S. government, and direct sales to non-U.S. based customers intended for end use outside of the U.S.

The following table below presents the Company's net revenue by end application for the periods presented:



	Three Months Ended December 31,				Six Months Ended December 31,
	2018		2017		2018		2017
Radar (1)	$	42,008	$	44,678	$	82,987	$	81,218
Electronic Warfare (2)	25,697		29,411		49,751		57,419
Other Sensor & Effector (3)	21,455		10,992		35,113		20,741
Total Sensor & Effector	89,160		85,081		167,851		159,378
C4I (4)	47,276		13,562		91,500		26,388
Other (5)	22,653		19,269		43,794		38,215
Total Net Revenue	$	159,089	$	117,912	$	303,145	$	223,981

(1) Radar includes end-use applications where radio frequency signals are utilized to detect, track, and identify objects.

(2) Electronic Warfare includes end-use applications comprising the offensive and defensive use of the electromagnetic spectrum.

(3) Other Sensor & Effector products include all Sensor & Effector end markets other than Radar and Electronic Warfare.

(4) C4I includes rugged secure rackmount servers that are designed to drive the most powerful military processing applications.

(5) Other products include all component and other sales where the end use is not specified.

The following table below presents the Company's net revenue by product grouping for the periods presented:



	Three Months Ended December 31,				Six Months Ended December 31,
	2018		2017		2018		2017
Components (1)	$	40,914	$	39,908	$	81,314	$	72,720
Modules and Sub-assemblies (2)	42,397		41,728		93,989		89,460
Integrated Subsystems (3)	75,778		36,276		127,842		61,801
Total Net Revenue	$	159,089	$	117,912	$	303,145	$	223,981

(1) Components include technology elements typically performing a single, discrete technological function, which when physically combined with other components may be used to create a module or sub-assembly. Examples include but are not limited to power amplifiers and limiters, switches, oscillators, filters, equalizers, digital and analog converters, chips, MMICs (monolithic microwave integrated circuits), and memory and storage devices.

(2) Modules and Sub-assemblies include combinations of multiple functional technology elements and/or components that work together to perform multiple functions but are typically resident on or within a single board or housing. Modules and sub-assemblies may in turn be combined to form an integrated subsystem. Examples of modules and sub-assemblies include but are not limited to embedded processing modules, embedded processing boards, switch fabric boards, high speed input/output boards, digital receiver boards, graphics and video processing and Ethernet and IO (input-output) boards, multi-chip modules, integrated radio frequency and microwave multi-function assemblies, tuners, and transceivers.

(3) Integrated Subsystems include multiple modules and/or sub-assemblies combined with a backplane or similar functional element and software to enable a solution. These are typically but not always integrated within a chassis and with cooling, power and other elements to address various requirements and are also often combined with additional technologies for interaction with other parts of a complete system or platform. Integrated subsystems also include spare and replacement modules and sub-assemblies sold as part of the same program for use in or with integrated subsystems sold by the Company.

The geographic distribution of the Company’s long-lived assets is summarized as follows:



	U.S.		Europe		Asia Pacific		Eliminations		Total
December 31, 2018	$	48,872	$	4,241	$	17	$	—	$	53,130
June 30, 2018	$	47,997	$	2,974	$	9	$	—	$	50,980

Identifiable long-lived assets exclude goodwill and intangible assets.

Customers comprising 10% or more of the Company’s revenues for the periods shown below are as follows:



	Three Months Ended December 31,				Six Months Ended December 31,
	2018		2017		2018		2017
Raytheon Company	25	%	17	%	22	%	19	%
Lockheed Martin Corporation	13	%	20	%	11	%	19	%
Northrop Grumman Corporation	*		12	%	*		11	%
	38	%	49	%	33	%	49	%


*	Indicates that the amount is less than 10% of the Company’s revenues for the respective period.

While the Company typically has customers from which it derives 10% or more of its revenue, the sales to each of these customers are spread across multiple programs and platforms. Programs comprising 10% or more of the Company’s revenues for the periods shown below are as follows:



	Three Months Ended December 31,				Six Months Ended December 31,
	2018		2017		2018		2017
F-35	11	%	*		11	%	*
	11	%	—	%	11	%	—	%


*	Indicates that the amount is less than 10% of the Company’s revenues for the respective period.