Note 2. Revenue from Contracts with Customers

9 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer

Revenue from Contracts with Customers

Our revenue from contracts with customers is generated primarily from manufacturing services provided for the production of electronic assemblies, electronic and non-electronic components, medical devices, medical disposables, precision molded plastics, and automation, test, and inspection equipment in automotive, medical, and industrial applications, to the specifications and designs of our customers. Beginning in fiscal year 2023, the Company changed its presentation of revenue for the industrial and public safety end market verticals by combining them into the industrial end market vertical. Prior year periods have been recast to conform to the current year presentation.

The following table disaggregates our revenue by end market vertical for the three and nine months ended March 31, 2023 and 2022.

	Three Months Ended				Nine Months Ended
	March 31				March 31
(Amounts in Millions)	2023		2022		2023		2022
Vertical Markets:
Automotive	$	216.0	$	161.5	$	600.5	$	429.8
Medical	134.0		102.9		373.5		277.7
Industrial	126.9		98.2		332.8		255.8
Other	7.8		5.5		20.5		12.7
Total net sales	$	484.7	$	368.1	$	1,327.3	$	976.0

For the three months ended March 31, 2023 and 2022, approximately 96% and 95% of our net sales, respectively, were recognized over time as manufacturing services were performed under a customer contract on a product with no alternative use and we have an enforceable right to payment for performance completed to date. For the nine months ended March 31, 2023 and 2022, approximately 96% and 95% of our net sales, respectively, were recognized over time. The remaining sales revenues were recognized at a point in time when the customer obtained control of the products.

The timing differences of revenue recognition, billings to our customers, and cash collections from our customers result in billed accounts receivable and unbilled accounts receivable. Contract assets on the Condensed Consolidated Balance Sheets relate to unbilled accounts receivable and occur when revenue is recognized over time as manufacturing services are provided and the billing to the customer has not yet occurred as of the balance sheet date, which are generally transferred to receivables in the next fiscal quarter due to the short-term nature of the manufacturing cycle. Contract assets were $75.7 million and $64.1 million as of March 31, 2023 and June 30, 2022, respectively.

The Company may receive payments from customers in advance of the satisfaction of performance obligations primarily for material price variances, tooling, or other miscellaneous services or costs. These advance payments are recognized as contract liabilities until the performance obligations are completed and are included in Accrued expenses on the Condensed Consolidated Balance Sheets, which amounted to $36.0 million and $22.5 million as of March 31, 2023 and June 30, 2022, respectively. Our performance obligations are short term in nature and therefore our contract liabilities are all expected to be settled within twelve months.