Revenue

3 Months Ended

Mar. 31, 2020

Revenue From Contract With Customer [Abstract]

Revenue

Note 10 – 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 March 31, 2020
(in thousands)			Americas		Asia		Europe		Total
Market Sector:
	Industrials	$	33,945		48,225		20,656	$	102,826
	A&D		113,012		—		6,188		119,200
	Medical		69,379		44,203		4,394		117,976
	Semi-Cap		30,449		37,292		14,979		82,720
	Computing		30,074		6,527		—		36,601
	Telecommunication		26,649		28,659		333		55,641
	External revenue		303,508		164,906		46,550		514,964
	Elimination of intersegment sales		10,888		6,703		450		18,041
	Segment revenue	$	314,396	$	171,609	$	47,000	$	533,005

			Reportable Operating Segments
			Three Months Ended March 31, 2019
(in thousands)			Americas		Asia		Europe		Total
Market Sector:
	Industrials	$	42,767	$	55,582	$	18,024	$	116,373
	A&D		96,337		—		7,552		103,889
	Medical		58,411		40,459		4,608		103,478
	Semi-Cap		28,400		24,743		12,878		66,021
	Computing		110,268		14,009		33		124,310
	Telecommunication		42,773		45,256		720		88,749
	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

For the three months ended March 31, 2020 and 2019, 90% and 94%, respectively, of the Company’s revenue was recognized as products and services transferred over time.