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Revenue | 12 Months Ended
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May 02, 2020
Revenue From Contract With Customer [Abstract] |
Revenue | Note 2. Revenue The Company is a global manufacturer of component and subsystem devices whose components are found in the primary end-markets of the aerospace, appliance, automotive, commercial vehicle, construction, consumer and industrial equipment, communications (including information processing and storage, networking equipment and wireless and terrestrial voice/data systems), medical, rail and other transportation industries. The majority of the Company's revenue is recognized at a point in time. The Company has determined that the most definitive demonstration that control has transferred to a customer is physical shipment or delivery, depending on the contractual shipping terms, except for consignment transactions. Consignment transactions are arrangements where the Company transfers product to a customer location but retains ownership and control of such product until it is used by the customer. Revenue for consignment arrangements is recognized upon the customer’s usage. Revenues associated with products which the Company believes have no alternative use, and where the Company has an enforceable right to payment, are recognized on an over time basis. The Company believes the most faithful depiction of the transfer of goods to the customer is based on progress to date, which is typically smooth throughout the production process. As such, the Company recognizes revenue evenly over the production process through transfer of control to the customer. Customers typically negotiate annual price downs. Management has evaluated these price downs and determined that in some instances, these price downs give rise to a material right. In instances that a material right exists, a portion of the transaction price is allocated to the material right and recognized over the life of the contract. Across all products, the amount of revenue recognized corresponds to the related purchase order. Revenue is adjusted for variable consideration (such as discounts) as described further below. Sales and other taxes collected concurrent with revenue-producing activities are excluded from revenue. Estimating total contract revenue may require judgment as certain contracts contain pricing discount structures, early payment discounts or other provisions that can impact the transaction price. The Company generally estimates variable consideration utilizing the most likely amount to which we expect to be entitled. When the contract provides the customer with the right to return eligible products, the Company reduces revenue at the point of sale using current facts and historical experience by using an estimate for expected product returns. The Company adjusts these estimates at the earlier of when the most likely amount of consideration that is expected to be received changes or when the consideration becomes fixed. Accordingly, an increase or decrease to revenue is recognized at that time. The Company has elected the practical expedient for significant financing components, allowing the Company to not adjust the promised amount of consideration for the effects of a financing component when payment terms are within one year from the time a performance obligation is satisfied. The Company's customers' payment terms are typically 30-45 days from the time control transfers. Costs to Fulfill/Obtain a Contract The Company incurs pre-production tooling costs related to products produced for customers under long-term supply agreements. These costs are capitalized and recognized into income upon acceptance. The Company concluded that pre-production tooling and engineering costs do not represent a promised good or service under ASC 606, and as such, reimbursements received are accounted for as a reimbursement of the expense, not revenue. Prior to the adoption of ASC 606, such reimbursements were accounted for as revenue. The Company has not historically incurred material costs to obtain a contract. In the instances that costs to obtain contracts are incurred, the Company will capitalize and amortize those over the life of the contract. Contract Assets and Liabilities The Company receives payment from customers based on the contractual billing schedule and specific performance requirements established in the contract. Billings are recorded as accounts receivable when an unconditional right to the contractual consideration exists. A contract asset is an entity’s right to consideration in exchange for goods or services that the entity has transferred to a customer. A contract liability exists when the Company has received consideration or the amount is due from the customer in advance of revenue recognition. Contract assets and contract liabilities are recognized in other current assets and other liabilities, respectively, in the Company's consolidated balance sheets. Unbilled Receivables (Contract Assets) - Pursuant to the over-time revenue recognition model, revenue may be recognized prior to the customer being invoiced. An unbilled receivable is recorded to reflect revenue that is recognized over time. Unbilled receivables were $0.5 million and $0.8 million as of May 2, 2020 and April 27, 2019, respectively. During fiscal 2020, $0.8 million of previously unbilled receivables were recorded into accounts receivable. There were no impairments of contract assets as of May 2, 2020. Deferred Revenue (Contract Liabilities) - For certain of the price reductions offered by the Company, the amount of the reduction cannot be attributed entirely to production efficiencies gained. In these cases, the annual price-downs are considered to be material rights as the customer, as part of their current contract, are purchasing an option that they would not have received without the contract to purchase future product. When a contract contains a material right, a portion of the transaction price is allocated to the material right for which revenue recognition is deferred until the customer exercises its option. Deferred revenue was $0.3 million as of both May 2, 2020 and April 27, 2019. Previously deferred revenue of $0.1 million was recorded into revenue during fiscal 2020. Disaggregated Revenue Information The following table represents a disaggregation of revenue from contracts with customers by segment and geographical location. Net sales are attributed to regions based on the location of production. Though revenue recognition patterns and contracts are generally consistent, the amount, timing and uncertainty of revenue and cash flows may vary in each reportable segment due to geographic and economic factors.
|  | Fiscal Year Ended May 2, 2020 (53 Weeks) |
(Dollars in Millions) |  | Auto |  |  | Industrial |  |  | Interface |  |  | Medical |  |  | Total |
Geographic Net Sales: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 330.9 |  |  | $ | 141.1 |  |  | $ | 57.9 |  |  | $ | 1.6 |  |  | $ | 531.5 |
Malta |  |  | 113.2 |  |  |  | 30.4 |  |  |  | 0.3 |  |  |  | — |  |  |  | 143.9 |
China |  |  | 74.4 |  |  |  | 42.4 |  |  |  | 0.1 |  |  |  | — |  |  |  | 116.9 |
Mexico |  |  | 104.7 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 104.7 |
Other |  |  | 88.9 |  |  |  | 37.5 |  |  |  | 0.5 |  |  |  | — |  |  |  | 126.9 |
Total Net Sales |  | $ | 712.1 |  |  | $ | 251.4 |  |  | $ | 58.8 |  |  | $ | 1.6 |  |  | $ | 1,023.9 |
Timing of Revenue Recognition: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goods Transferred at a Point in Time |  | $ | 675.4 |  |  | $ | 251.4 |  |  | $ | 58.8 |  |  | $ | 1.6 |  |  | $ | 987.2 |
Goods Transferred Over Time |  |  | 36.7 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 36.7 |
Total Net Sales |  | $ | 712.1 |  |  | $ | 251.4 |  |  | $ | 58.8 |  |  | $ | 1.6 |  |  | $ | 1,023.9 |
|  | Fiscal Year Ended April 27, 2019 (52 Weeks) |
(Dollars in Millions) |  | Auto |  |  | Industrial |  |  | Interface |  |  | Medical |  |  | Total |
Geographic Net Sales: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 373.0 |  |  | $ | 110.3 |  |  | $ | 56.1 |  |  | $ | 1.1 |  |  | $ | 540.5 |
Malta |  |  | 116.4 |  |  |  | 31.8 |  |  |  | 0.3 |  |  |  | — |  |  |  | 148.5 |
China |  |  | 78.2 |  |  |  | 35.3 |  |  |  | 0.2 |  |  |  | — |  |  |  | 113.7 |
Canada |  |  | 87.8 |  |  |  | 13.8 |  |  |  | — |  |  |  | — |  |  |  | 101.6 |
Other |  |  | 79.3 |  |  |  | 15.6 |  |  |  | 1.1 |  |  |  | — |  |  |  | 96.0 |
Total Net Sales |  | $ | 734.7 |  |  | $ | 206.8 |  |  | $ | 57.7 |  |  | $ | 1.1 |  |  | $ | 1,000.3 |
Timing of Revenue Recognition: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goods Transferred at a Point in Time |  | $ | 704.4 |  |  | $ | 206.8 |  |  | $ | 57.7 |  |  | $ | 1.1 |  |  | $ | 970.0 |
Goods Transferred Over Time |  |  | 30.3 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 30.3 |
Total Net Sales |  | $ | 734.7 |  |  | $ | 206.8 |  |  | $ | 57.7 |  |  | $ | 1.1 |  |  | $ | 1,000.3 |
Customer Concentration Sales to GM and Ford in the Automotive segment, either directly or through their tiered suppliers, are shown below.
|  | Fiscal Year Ended |
|  | May 2, 2020 |  |  | April 27, 2019 |  |  | April 28, 2018 |
Percentage of Net Sales: |  |  |  |  |  |  |  |  |  |  |  |
GM |  |  | 26.8 | % |  |  | 35.5 | % |  |  | 43.3 | %
Ford |  |  | 10.7 | % |  |  | 11.6 | % |  |  | 12.3 | %

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- References No definition available. + Details
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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
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