Revenue

3 Months Ended

Mar. 31, 2019

Revenue From Contract With Customer [Abstract]

Note 3 – 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 a 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 of 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 March 31, 2019
(in thousands)			Americas		Asia		Europe		Total
Market Sector:
	Industrials	$	42,767	$	55,582	$	17,416	$	115,765
	A&D		96,337		—		7,552		103,889
	Medical		58,411		40,459		4,608		103,478
	Test and instrumentation		28,400		24,743		12,878		66,021
	Computing		110,268		14,009		33		124,310
	Telecommunication		42,773		45,256		1,328		89,357
	External revenue		378,956		180,049		43,815		602,820
	Elimination of intersegment sales		13,102		7,360		145		20,607
	Segment revenue	$	392,058	$	187,409	$	43,960	$	623,427


			Reportable Operating Segments
			Three Months Ended March 31, 2018
(in thousands)			Americas		Asia		Europe		Total
Market Sector:
	Industrials	$	52,687	$	54,787	$	18,174	$	125,648
	A&D		87,796		—		8,323		96,119
	Medical		54,992		38,263		3,819		97,074
	Test and instrumentation		46,030		39,233		17,112		102,375
	Computing		86,221		14,900		2,417		103,538
	Telecommunication		44,393		38,085		904		83,382
	External revenue		372,119		185,268		50,749		608,136
	Elimination of intersegment sales		6,666		9,854		47		16,567
	Segment revenue	$	378,785	$	195,122	$	50,796	$	624,703

For both the three months ended March 31, 2019 and 2018, 94% of the Company’s revenue was recognized as products and services transferred over time.