Operating Segment, Geographic Information and Significant Customers

9 Months Ended

Mar. 27, 2020

Operating Segment, Geographic Information and Significant Customers

Operating Segment, Geographic Information and Significant CustomersOperating 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
THIRD QUARTER ENDED MARCH 27, 2020
Net revenues to unaffiliated customers	$	196,158	$	11,408	$	450	$	—	$	208,016
Inter-geographic revenues	389		754		—		(1,143)		—
Net revenues	$	196,547	$	12,162	$	450	$	(1,143)	$	208,016
THIRD QUARTER ENDED MARCH 31, 2019
Net revenues to unaffiliated customers	$	158,715	$	15,280	$	641	$	—	$	174,636
Inter-geographic revenues	2,984		314		—		(3,298)		—
Net revenues	$	161,699	$	15,594	$	641	$	(3,298)	$	174,636
NINE MONTHS ENDED MARCH 27, 2020
Net revenues to unaffiliated customers	$	539,535	$	37,569	$	2,129	$	—	$	579,233
Inter-geographic revenues	2,015		2,222		—		(4,237)		—
Net revenues	$	541,550	$	39,791	$	2,129	$	(4,237)	$	579,233
NINE MONTHS ENDED MARCH 31, 2019
Net revenues to unaffiliated customers	$	435,733	$	39,918	$	2,130	$	—	$	477,781
Inter-geographic revenues	5,434		1,017		—		(6,451)		—
Net revenues	$	441,167	$	40,935	$	2,130	$	(6,451)	$	477,781

In recent years, the Company completed a series of acquisitions that changed its technological capabilities, applications and end markets. As these acquisitions and changes occurred, the Company increased the proportion of its revenue derived from the sale of components in different technological areas, and also increased the amount of revenue associated with combining technologies into more complex and diverse products including modules, sub-assemblies and integrated subsystems. The following tables present 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 presents the Company's net revenue by end user for the periods presented:


	Third Quarters Ended						Nine Months Ended
	March 27, 2020		March 31, 2019		March 27, 2020		March 31, 2019
Domestic⁽¹⁾	$	187,560	$	153,634	$	516,659	$	427,119
International/Foreign Military Sales⁽²⁾	20,456		21,002		62,574		50,662
Total Net Revenue	$	208,016	$	174,636	$	579,233	$	477,781

(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 presents the Company's net revenue by end application for the periods presented:


	Third Quarters Ended						Nine Months Ended
	March 27, 2020		March 31, 2019		March 27, 2020		March 31, 2019
Radar⁽¹⁾	$	78,113	$	40,674	$	164,360	$	123,661
Electronic Warfare⁽²⁾	40,221		36,569		112,417		86,320
Other Sensor & Effector⁽³⁾	26,278		28,364		80,680		63,477
Total Sensor & Effector	144,612		105,607		357,457		273,458
C4I⁽⁴⁾	47,351		46,217		154,140		137,717
Other⁽⁵⁾	16,053		22,812		67,636		66,606
Total Net Revenue	$	208,016	$	174,636	$	579,233	$	477,781

(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 presents the Company's net revenue by product grouping for the periods presented:


	Third Quarters Ended						Nine Months Ended
	March 27, 2020		March 31, 2019		March 27, 2020		March 31, 2019
Components⁽¹⁾	$	56,786	$	52,372	$	170,586	$	133,686
Modules and Sub-assemblies⁽²⁾	46,069		36,153		148,583		130,142
Integrated Subsystems⁽³⁾	105,161		86,111		260,064		213,953
Total Net Revenue	$	208,016	$	174,636	$	579,233	$	477,781

(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 identifiable long-lived assets is summarized as follows:


	U.S.		Europe		Asia Pacific		Eliminations		Total
March 27, 2020	$	73,549	$	5,108	$	7	$	—	$	78,664
June 30, 2019	$	54,952	$	5,037	$	12	$	—	$	60,001

Identifiable long-lived assets exclude ROU assets, goodwill, and intangible assets.

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


	Third Quarters Ended						Nine Months Ended
	March 27, 2020		March 31, 2019		March 27, 2020		March 31, 2019
Lockheed Martin Corporation	17	%	24	%	17	%	16	%
Raytheon Company	17	%	19	%	15	%	21	%




L3Harris Technologies	*		*		10	%	*
	34	%	43	%	42	%	37	%

* Indicates that the amount is less than 10% of the Company's revenue 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. There were no programs comprising 10% or more of the Company's revenue for the third quarters and nine months ended March 27, 2020 and March 31, 2019.