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Revenue
 12 Months Ended
Dec. 31, 2020
Revenue From Contract With Customer [Abstract]  
Revenue

Note 15 – 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 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. 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

 

 

 

Year Ended December 31, 2020

 

(in thousands)

 

Americas

 

 

Asia

 

 

Europe

 

 

Total

 

Market Sector:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Industrials

 

$

110,063

 

 

$

196,209

 

 

$

66,789

 

 

$

373,061

 

A&D

 

 

401,599

 

 

 

—

 

 

 

21,972

 

 

 

423,571

 

Medical

 

 

255,246

 

 

 

211,567

 

 

 

31,657

 

 

 

498,470

 

Semi-Cap

 

 

158,380

 

 

 

159,016

 

 

 

51,578

 

 

 

368,974

 

Computing

 

 

140,109

 

 

 

31,228

 

 

 

—

 

 

 

171,337

 

Telecommunications

 

 

96,937

 

 

 

119,987

 

 

 

794

 

 

 

217,718

 

External revenue

 

 

1,162,334

 

 

 

718,007

 

 

 

172,790

 

 

 

2,053,131

 

Elimination of intersegment sales

 

 

46,698

 

 

 

28,654

 

 

 

1,757

 

 

 

77,109

 

Segment revenue

 

$

1,209,032

 

 

$

746,661

 

 

$

174,547

 

 

$

2,130,240

 

 

 

 

Year Ended December 31, 2019

 

(in thousands)

 

Americas

 

 

Asia

 

 

Europe

 

 

Total

 

Market Sector:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Industrials

 

$

165,163

 

 

$

214,575

 

 

$

73,838

 

 

$

453,576

 

A&D

 

 

400,326

 

 

 

—

 

 

 

31,597

 

 

 

431,923

 

Medical

 

 

263,688

 

 

 

167,296

 

 

 

17,218

 

 

 

448,202

 

Semi-Cap

 

 

102,908

 

 

 

123,764

 

 

 

51,093

 

 

 

277,765

 

Computing

 

 

308,077

 

 

 

53,051

 

 

 

85

 

 

 

361,213

 

Telecommunications

 

 

143,686

 

 

 

149,890

 

 

 

1,840

 

 

 

295,416

 

External revenue

 

 

1,383,848

 

 

 

708,576

 

 

 

175,671

 

 

 

2,268,095

 

Elimination of intersegment sales

 

 

44,947

 

 

 

33,054

 

 

 

713

 

 

 

78,714

 

Segment revenue

 

$

1,428,795

 

 

$

741,630

 

 

$

176,384

 

 

$

2,346,809

 

 

 

 

Year Ended December 31, 2018

 

(in thousands)

 

Americas

 

 

Asia

 

 

Europe

 

 

Total

 

Market Sector:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Industrials

 

$

184,500

 

 

$

241,765

 

 

$

66,798

 

 

$

493,063

 

A&D

 

 

374,852

 

 

 

—

 

 

 

31,550

 

 

 

406,402

 

Medical

 

 

235,287

 

 

 

144,528

 

 

 

14,152

 

 

 

393,967

 

Semi-Cap

 

 

155,687

 

 

 

135,299

 

 

 

63,992

 

 

 

354,978

 

Computing

 

 

504,391

 

 

 

69,657

 

 

 

6,797

 

 

 

580,845

 

Telecommunications

 

 

162,813

 

 

 

171,520

 

 

 

2,877

 

 

 

337,210

 

External revenue

 

 

1,617,530

 

 

 

762,769

 

 

 

186,166

 

 

 

2,566,465

 

Elimination of intersegment sales

 

 

29,872

 

 

 

38,543

 

 

 

351

 

 

 

68,766

 

Segment revenue

 

$

1,647,402

 

 

$

801,312

 

 

$

186,517

 

 

$

2,635,231

 

 

During 2020, 2019 and 2018, 90.2%, 91.5% and 93.0%, respectively, of the Company’s revenue was recognized as products and services were transferred over time.

 

The timing of revenue recognition, billings and cash collections result in billed accounts receivable, contract assets and advance payments from customers.  

 

As of December 31, 2020 and 2019, the Company had $142.8 million and $161.1 million, respectively, in contract assets from contracts with customers. The contract assets primarily relate to the Company’s right to consideration for work completed but not billed at the reporting date. The contract assets are transferred to accounts receivable when the rights become unconditional.

 

 

 

 

December 31,

 

(in thousands)

 

2020

 

 

2019

 

Beginning balance as of December 31

 

$

161,061

 

 

$

140,082

 

Revenue recognized

 

 

1,848,807

 

 

 

2,076,680

 

Amounts collected or invoiced

 

 

(1,867,089

)

 

 

(2,055,701

)

Ending balance as of December 31

 

$

142,779

 

 

$

161,061

 

 

As of December 31, 2020 and 2019, the Company had $84.1 million and $37.5 million, respectively, in advance payments from customers.  Of those amounts $54.9 million and $35.7 million, respectively, were customer deposits and prepayments of inventory and $29.2 million and $1.8 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.