Revenue

6 Months Ended

Jun. 30, 2019

Revenue From Contract With Customer [Abstract]

Revenue

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 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 June 30, 2019
(in thousands)			Americas		Asia		Europe		Total
Market Sector:
	Industrials	$	43,618	$	51,645	$	19,401	$	114,664
	A&D		98,523		—		8,442		106,965
	Medical		67,962		41,446		4,779		114,187
	Semi-Cap		26,139		23,726		12,585		62,450
	Computing		119,907		12,731		52		132,690
	Telecommunication		34,855		35,375		416		70,646
	External revenue		391,004		164,923		45,675		601,602
	Elimination of intersegment sales		13,158		9,247		223		22,628
	Segment revenue	$	404,162	$	174,170	$	45,898	$	624,230
			Six Months Ended June 30, 2019
			Americas		Asia		Europe		Total
Market Sector:
	Industrials	$	86,386	$	107,227	$	37,424	$	231,037
	A&D		194,860		—		15,994		210,854
	Medical		126,374		81,904		9,387		217,665
	Semi-Cap		54,538		48,469		25,464		128,471
	Computing		230,174		26,741		85		257,000
	Telecommunication		77,629		80,631		1,135		159,395
	External revenue		769,961		344,972		89,489		1,204,422
	Elimination of intersegment sales		26,259		16,607		369		43,235
	Segment revenue	$	796,220	$	361,579	$	89,858	$	1,247,657

			Reportable Operating Segments
			Three Months Ended June 30, 2018
(in thousands)			Americas		Asia		Europe		Total
Market Sector:
	Industrials	$	43,948	$	57,437	$	16,711	$	118,096
	A&D		93,254		—		6,923		100,177
	Medical		59,476		34,101		3,152		96,729
	Semi-Cap		47,556		41,552		17,185		106,293
	Computing		141,417		17,528		1,692		160,637
	Telecommunication		41,147		36,907		605		78,659
	External revenue		426,798		187,525		46,268		660,591
	Elimination of intersegment sales		7,480		10,103		87		17,670
	Segment revenue	$	434,278	$	197,628	$	46,355	$	678,261
			Six Months Ended June 30, 2018
			Americas		Asia		Europe		Total

Market Sector:
	Industrials	$	96,635	$	112,224	$	34,885	$	243,744
	A&D		181,049		—		15,247		196,296
	Medical		114,468		72,364		6,971		193,803
	Semi-Cap		93,586		80,785		34,297		208,668
	Computing		227,638		32,428		4,109		264,175
	Telecommunication		85,541		74,992		1,508		162,041
	External revenue		798,917		372,793		97,017		1,268,727
	Elimination of intersegment sales		14,146		19,957		134		34,237
	Segment revenue	$	813,063	$	392,750	$	97,151	$	1,302,964

For the six months ended June 30, 2019 and 2018, 92% and 95%, respectively, of the Company’s revenue was recognized as products and services transferred over time.