Revenue

9 Months Ended

Sep. 30, 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 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, 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
	Test and instrumentation		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
	Test and instrumentation		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


			Reportable Operating Segments
			Three Months Ended September 30, 2017 (as adjusted)
(in thousands)			Americas		Asia		Europe		Total
Market Sector:
	Industrials	$	50,644	$	58,488	$	16,809	$	125,941
	A&D		89,261		871		6,163		96,295
	Medical		55,162		41,716		5,178		102,056
	Test and instrumentation		42,587		34,071		12,454		89,112
	Computing		96,688		26,257		2,396		125,341
	Telecommunication		37,555		33,857		772		72,184
	External revenue		371,897		195,260		43,772		610,929
	Elimination of intersegment sales		7,520		12,947		54		20,521
	Segment revenue	$	379,417	$	208,207	$	43,826	$	631,450

			Nine Months Ended September 30, 2017 (as adjusted)
			Americas		Asia		Europe		Total
Market Sector:
	Industrials	$	160,794	$	156,373	$	50,714	$	367,881
	A&D		275,717		1,920		18,638		296,275
	Medical		150,902		108,015		14,899		273,816
	Test and instrumentation		113,007		107,420		33,251		253,678
	Computing		291,048		68,989		7,794		367,831
	Telecommunication		130,708		96,243		2,011		228,962
	External revenue		1,122,176		538,960		127,307		1,788,443
	Elimination of intersegment sales		23,995		43,031		173		67,199
	Segment revenue	$	1,146,171	$	581,991	$	127,480	$	1,855,642

For both the nine months ended September 30, 2018 and 2017, 93% of the Company’s revenue was recognized as products and services are transferred over time.