Revenue Recognition

9 Months Ended

Sep. 30, 2021

Revenue Recognition

Revenue Recognition

Note 15—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 and nine months ended September 30, 2021 and 2020, 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 Company’s Condensed Consolidated Balance Sheets were not significant as of September 30, 2021 and December 31, 2020. These amounts are

recorded in the accompanying Condensed Consolidated Balance Sheets within Prepaid expenses and other current assets or Other accrued expenses as of September 30, 2021 and December 31, 2020.

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 September 30, 2021.

While the Company typically offers standard product warranty coverage which 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 September 30, 2021 and December 31, 2020, and related warranty expense for the three and nine months ended September 30, 2021 and 2020, have not been and were not material in the accompanying Condensed Consolidated Financial Statements.

Disaggregation of Net Sales

The following tables show 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 and nine months ended September 30, 2021 and 2020:

	Interconnect Products				Cable Products				Total Reportable
	and Assemblies				and Solutions				Business Segments
Three Months Ended September 30,	2021		2020		2021		2020		2021		2020
Net sales by:
Sales channel:
End customers and contract manufacturers	$	2,222.9	$	1,872.9	$	101.1	$	85.8	$	2,324.0	$	1,958.7
Distributors and resellers		476.3		349.0		18.2		15.7		494.5		364.7
	$	2,699.2	$	2,221.9	$	119.3	$	101.5	$	2,818.5	$	2,323.4
Geography:
United States	$	760.2	$	607.8	$	69.8	$	61.0	$	830.0	$	668.8
China		775.8		719.0		3.0		1.8		778.8		720.8
Other foreign locations		1,163.2		895.1		46.5		38.7		1,209.7		933.8
	$	2,699.2	$	2,221.9	$	119.3	$	101.5	$	2,818.5	$	2,323.4
Nine Months Ended September 30,
Net sales by:
Sales channel:
End customers and contract manufacturers	$	6,248.8	$	4,935.6	$	275.5	$	228.7	$	6,524.3	$	5,164.3
Distributors and resellers		1,271.7		963.8		53.5		44.8		1,325.2		1,008.6
	$	7,520.5	$	5,899.4	$	329.0	$	273.5	$	7,849.5	$	6,172.9
Geography:
United States	$	2,103.6	$	1,695.1	$	179.4	$	158.9	$	2,283.0	$	1,854.0
China		2,121.1		1,778.6		8.8		4.3		2,129.9		1,782.9
Other foreign locations		3,295.8		2,425.7		140.8		110.3		3,436.6		2,536.0
	$	7,520.5	$	5,899.4	$	329.0	$	273.5	$	7,849.5	$	6,172.9

Net sales by geographic area are based on the customer location to which the product is shipped.