Revenue

9 Months Ended

Sep. 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 September 30, 2019
(in thousands)			Americas		Asia		Europe		Total
Market Sector:
	Industrials	$	41,328		55,454		18,191	$	114,973
	A&D		108,101		—		7,253		115,354
	Medical		79,201		44,582		3,990		127,773
	Semi-Cap		23,998		31,332		12,721		68,051
	Computing		47,364		12,158		—		59,522
	Telecommunication		33,793		35,459		304		69,556
	External revenue		333,785		178,985		42,459		555,229
	Elimination of intersegment sales		10,576		9,107		182		19,865
	Segment revenue	$	344,361	$	188,092	$	42,641	$	575,094
			Nine Months Ended September 30, 2019
			Americas		Asia		Europe		Total
Market Sector:
	Industrials	$	127,714	$	162,681	$	55,615	$	346,010
	A&D		302,961		—		23,247		326,208
	Medical		205,575		126,486		13,377		345,438
	Semi-Cap		78,536		79,801		38,185		196,522
	Computing		277,538		38,899		85		316,522
	Telecommunication		111,422		116,090		1,439		228,951
	External revenue		1,103,746		523,957		131,948		1,759,651
	Elimination of intersegment sales		36,835		25,714		551		63,100
	Segment revenue	$	1,140,581	$	549,671	$	132,499	$	1,822,751

			Reportable Operating Segments
			Three Months Ended September 30, 2018
(in thousands)			Americas		Asia		Europe		Total
Market Sector:
	Industrials	$	45,334	$	67,969	$	15,001	$	128,304
	A&D		97,141		—		7,847		104,988
	Medical		58,725		34,404		3,171		96,300
	Semi-Cap		32,016		30,494		14,098		76,608
	Computing		125,110		18,018		2,258		145,386
	Telecommunication		37,846		50,716		540		89,102
	External revenue		396,172		201,601		42,915		640,688
	Elimination of intersegment sales		7,965		8,552		139		16,656
	Segment revenue	$	404,137	$	210,153	$	43,054	$	657,344

			Nine Months Ended September 30, 2018
			Americas		Asia		Europe		Total
Market Sector:
	Industrials	$	141,966	$	180,195	$	49,887	$	372,048
	A&D		278,191		—		23,093		301,284
	Medical		173,192		106,769		10,142		290,103
	Semi-Cap		125,603		111,280		48,393		285,276
	Computing		352,747		50,446		6,368		409,561
	Telecommunication		123,386		125,708		2,049		251,143
	External revenue		1,195,085		574,398		139,932		1,909,415
	Elimination of intersegment sales		22,115		28,505		273		50,893
	Segment revenue	$	1,217,200	$	602,903	$	140,205	$	1,960,308

For the nine months ended September 30, 2019 and 2018, 92% and 93%, respectively, of the Company’s revenue was recognized as products and services transferred over time.