Revenue

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue

Note 14 – Revenue

The Company’s revenues are generated primarily from its manufacturing services, which entails 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 the 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 the product to the customer, which is generally when goods are shipped. 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 trade accounts receivable when the entitlement to payment becomes unconditional.

Taxes assessed by governmental authorities that are imposed on and concurrent with a specific revenue-producing transaction and 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

The following tables provide a summary of the Company's revenue disaggregated by market sector and a reconciliation of the disaggregated revenue to the Company's revenue by reportable operating segment:

	Year Ended December 31, 2023
(in thousands)	Americas		Asia		Europe		Total
Market sector:
Complex Industrials	$	127,491	$	345,465	$	123,522	$	596,478
A&D		304,932		29,153		27,446		361,531
Medical		329,816		182,532		44,204		556,552
Semi-Cap		262,117		283,870		100,305		646,292
Advanced Computing		311,742		25,988		—		337,730
Next-Generation Communications		197,889		142,448		56		340,393
External revenue		1,533,987		1,009,456		295,533		2,838,976
Elimination of intersegment sales		77,796		46,482		4,302		128,580
Segment revenue	$	1,611,783	$	1,055,938	$	299,835	$	2,967,556

	Year Ended December 31, 2022
(in thousands)	Americas		Asia		Europe		Total
Market sector:
Complex Industrials	$	89,949	$	363,398	$	140,258	$	593,605
A&D		286,230		43,701		17,654		347,585
Medical		319,823		228,571		44,500		592,894
Semi-Cap		286,322		357,634		78,146		722,102
Advanced Computing		258,206		52,301		2		310,509
Next-Generation Communications		170,424		148,772		440		319,636
External revenue		1,410,954		1,194,377		281,000		2,886,331
Elimination of intersegment sales		64,976		57,100		3,100		125,176
Segment revenue	$	1,475,930	$	1,251,477	$	284,100	$	3,011,507

	Year Ended December 31, 2021
(in thousands)	Americas		Asia		Europe		Total
Market sector:
Complex Industrials	$	79,726	$	262,546	$	86,174	$	428,446
A&D		360,030		1,692		20,009		381,731
Medical		220,635		189,614		51,585		461,834
Semi-Cap		215,596		266,065		67,640		549,301
Advanced Computing		163,423		35,842		140		199,405
Next-Generation Communications		120,739		112,684		1,179		234,602
External revenue		1,160,149		868,443		226,727		2,255,319
Elimination of intersegment sales		43,395		44,117		2,107		89,619
Segment revenue	$	1,203,544	$	912,560	$	228,834	$	2,344,938

The timing of revenue recognition, billings and cash collections result in billed accounts receivable, contract assets and advance payments from customers. During 2023, 2022 and 2021, 87.9%, 90.8% and 90.3%, respectively, of the Company’s revenue was recognized as products and services were transferred over time.

Contract assets primarily relate to the Company’s right to consideration for work completed but not billed to the customer as of period end. Contract asset balances are transferred to trade accounts receivable when the rights become unconditional.

A summary of activity related to the Company's contract assets follows:

	Year Ended December 31,
(in thousands)	2023			2022
Balance as of the beginning of the year	$	183,613		$	155,243
Revenue recognized		2,495,298			2,623,585
Amounts collected or invoiced		(2,503,932	)		(2,595,215	)
Balance as of the end of the year	$	174,979		$	183,613

As of December 31, 2023 and 2022, the Company had $204.9 million and $197.9 million, respectively, in advance payments from customers. Of those amounts $191.6 million and $178.9 million, respectively, were related to both customer deposits and prepayments of inventory and $13.3 million and $18.9 million, respectively, were related to the contractual timing of payments. The advance payments are not considered a significant financing component because they are used to meet working capital demands of a contract, offset inventory risks and protect the Company from the failure of other parties to fulfill obligations under a contract.