Reportable Segments, Geographic Information And Major Customers

12 Months Ended

Oct. 01, 2016

Segment Reporting [Abstract]

Reportable Segments, Geographic Information And Major Customers

Reportable Segments, Geographic Information and Major Customers

Reportable segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or group, in assessing performance and allocating resources. The Company uses an internal management reporting system, which provides important financial data to evaluate performance and allocate the Company’s resources on a regional basis. Net sales for the segments are attributed to the region in which the product is manufactured or the service is performed. The services provided, manufacturing processes used, class of customers serviced and order fulfillment processes used are similar and generally interchangeable across the segments. A segment’s performance is evaluated based upon its operating income (loss). A segment’s operating income (loss) includes its net sales less cost of sales and selling and administrative expenses, but excludes corporate and other expenses. Corporate and other expenses primarily represent corporate selling and administrative expenses, and restructuring and other charges, if any. Losses incurred from a typhoon that impacted APAC in fiscal 2016 are excluded from the segment results and included within corporate and other expenses. These costs are not allocated to the segments, as management excludes such costs when assessing the performance of the segments. Inter-segment transactions are generally recorded at amounts that approximate arm’s length transactions. The accounting policies for the segments are the same as for the Company taken as a whole.

Information about the Company’s three reportable segments for fiscal 2016, 2015 and 2014 is as follows (in thousands):

	2016			2015			2014
Net sales:
AMER	$	1,328,760		$	1,389,017		$	1,238,225
APAC	1,161,851			1,285,905			1,132,503
EMEA	170,450			140,292			115,893
Elimination of inter-segment sales	(105,057		)	(160,924		)	(108,372		)
	$	2,556,004		$	2,654,290		$	2,378,249
Operating income (loss):
AMER	$	64,921		$	68,585		$	79,211
APAC	155,501			160,217			135,539
EMEA	(3,746		)	(8,129		)	(11,923		)
Corporate and other costs	(117,237		)	(105,237		)	(102,220		)
	$	99,439		$	115,436		$	100,607
Other income (expense):
Interest expense	(14,635		)	(13,964		)	(12,295		)
Interest income	4,242			3,499			2,934
Miscellaneous	(1,652		)	1,324			2,079
Income before income taxes	$	87,394		$	106,295		$	93,325
Depreciation:
AMER	$	19,937		$	17,753		$	16,452
APAC	16,874			18,176			20,587
EMEA	6,106			8,339			7,509
Corporate	4,497			4,110			2,713
	$	47,414		$	48,378		$	47,261
Capital expenditures:
AMER	$	14,389		$	17,595		$	53,135
APAC	10,786			9,590			4,096
EMEA	3,399			6,976			6,351
Corporate	2,549			915			1,702
	$	31,123		$	35,076		$	65,284
	October 1, 2016			October 3, 2015
Total assets:
AMER	$	590,850		$	573,437
APAC	1,009,917			1,011,622
EMEA	136,636			128,306
Corporate and eliminations	28,416			(21,605		)
	$	1,765,819		$	1,691,760

The following information is provided in accordance with the required segment disclosures for fiscal 2016, 2015 and 2014. Net sales were based on the Company’s location providing the product or service (in thousands):

	2016			2015			2014
Net sales:
United States	$	1,134,342		$	1,303,106		$	1,188,068
Malaysia	844,501			926,059			798,447
China	317,350			359,846			334,056
Mexico	194,418			85,911			50,157
United Kingdom	81,894			70,335			72,443
Romania	83,712			65,338			39,030
Germany	4,844			4,619			4,420
Elimination of inter-segment sales	(105,057		)	(160,924		)	(108,372		)
	$	2,556,004		$	2,654,290		$	2,378,249
	October 1, 2016			October 3, 2015
Long-lived assets:
United States	$	92,152		$	101,712
Malaysia	71,596			72,327
China	19,197			24,236
Mexico	39,155			39,002
United Kingdom	6,594			11,506
Romania	30,408			30,553
Germany	307			405
Other Foreign	4,940			4,689
Corporate	26,876			32,921
	$	291,225		$	317,351

As the Company operates flexible manufacturing facilities and processes designed to accommodate customers with multiple product lines and configurations, it is impracticable to report net sales for individual products or services or groups of similar products and services.

Long-lived assets as of October 1, 2016 and October 3, 2015 exclude other long-term assets and deferred income tax assets, which totaled $41.2 million and $40.4 million, respectively.

As a percentage of consolidated net sales, net sales attributable to customers representing 10.0% or more of consolidated net sales for fiscal 2016, 2015 and 2014 were as follows:

	2016	2015	2014
General Electric Company (“GE”)	11.1%	10.6%	11.2%
Micron Technology, Inc. (“Micron”)	10.4%	*	*
ARRIS Group, Inc. (“Arris”)	10.1%	12.6%	12.5%
* Net sales attributable to the customer were less than 10.0% of consolidated net sales for the period.

During fiscal 2016, 2015, and 2014, net sales attributable to GE were reported in the all three segments and net sales attributable to Arris were reported in the AMER and APAC segments. During fiscal 2016, net sales attributable to Micron were reported in the AMER and APAC segments.

As of October 1, 2016, Micron represented 18.9% of total accounts receivable. No customer represented 10.0% or more of total accounts receivable as of October 3, 2015.