Revenue

3 Months Ended

Mar. 31, 2018

Revenue From Contract With Customer [Abstract]

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 excess inventory.

Revenue is measured based on a 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 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 had recorded revenue, but not issued 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 table, revenue is disaggregated by market sector. The table also includes a reconciliation of the disaggregated revenue with the reportable operating segments.


			Reportable Operating Segments
			March 31, 2018
(in thousands)			Americas		Asia		Europe		Total
Market Sector:
	Industrials	$	52,729	$	53,657	$	18,174	$	124,560
	A&D		88,414		1,130		8,323		97,867
	Medical		54,992		38,263		4,032		97,287
	Test and instrumentation		45,869		39,233		17,112		102,214
	Computing		86,221		14,900		2,417		103,538
	Telecommunication		43,894		38,085		691		82,670
	External revenue		372,119		185,268		50,749		608,136
	Elimination of intersegment sales		6,666		9,854		47		16,567
	Segment revenue	$	378,785	$	195,122	$	50,796	$	624,703

			March 31, 2017 (as adjusted)
			Americas		Asia		Europe		Total
Market Sector:
	Industrials	$	54,097	$	45,791	$	17,298	$	117,186
	A&D		93,409		132		6,359		99,900
	Medical		47,601		32,477		4,847		84,925
	Test and instrumentation		32,654		34,694		8,402		75,750
	Computing		77,813		19,566		2,880		100,259
	Telecommunication		47,914		31,164		805		79,883
	External revenue		353,488		163,824		40,591		557,903
	Elimination of intersegment sales		7,832		15,480		53		23,365
	Segment revenue	$	361,320	$	179,304	$	40,644	$	581,268

For the three months ended March 31, 2018 and 2017, 94.4% and 95.7%, respectively, of the Company’s revenue was recognized as products and services are transferred over time.