Revenue

6 Months Ended

Jun. 30, 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 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, 2020
(in thousands)			Americas		Asia		Europe		Total
Market Sector:
	Industrials	$	24,298		49,379		13,453	$	87,130
	A&D		80,939		—		7,585		88,524
	Medical		72,434		55,890		6,427		134,751
	Semi-Cap		37,321		37,151		12,379		86,851
	Computing		35,487		8,366		—		43,853
	Telecommunication		21,020		28,789		48		49,857
	External revenue		271,499		179,575		39,892		490,966
	Elimination of intersegment sales		17,301		8,804		332		26,437
	Segment revenue	$	288,800	$	188,379	$	40,224	$	517,403
			Six Months Ended June 30, 2020
			Americas		Asia		Europe		Total
Market Sector:
	Industrials	$	58,243	$	97,604	$	34,109	$	189,956
	A&D		193,951		—		13,773		207,724
	Medical		141,813		100,093		10,821		252,727
	Semi-Cap		67,770		74,443		27,358		169,571
	Computing		65,561		14,893		—		80,454
	Telecommunication		47,669		57,448		381		105,498
	External revenue		575,007		344,481		86,442		1,005,930
	Elimination of intersegment sales		28,189		15,507		782		44,478
	Segment revenue	$	603,196	$	359,988	$	87,224	$	1,050,408

			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

For the six months ended June 30, 2020 and 2019, 91% and 92%, respectively, of the Company’s revenue was recognized as products and services transferred over time.