Business Segment, Geographic and Major Customer Information

9 Months Ended

Jul. 02, 2011

Business Segment, Geographic and Major Customer Information

Business Segment, Geographic and Major Customer Information

NOTE 10 - BUSINESS SEGMENT, GEOGRAPHIC AND MAJOR CUSTOMER INFORMATION

            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.

            In the fiscal first quarter of 2011, we completed our migration to a regional reporting structure, and as a result, modified our reportable segments. See Note 1 – Basis of Presentation and Accounting Policies for further information.

            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 segments are attributed to the region in which the product is manufactured or 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 costs, interest expense, other income (loss), and income taxes. Corporate and other costs primarily represent corporate selling and administrative expenses, and restructuring and impairment costs, if any. 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 regions are the same as for the Company taken as a whole.

            Information about the Company's three reportable segments for the three and nine months ended July 2, 2011 and July 3, 2010 were as follows (in thousands):

		Three Months Ended						Nine Months Ended
		July 2,			July 3,			July 2,			July 3,
		2011			2010			2011			2010
Net sales:
AMER	$	305,448		$	321,932		$	981,895		$	907,619
APAC		280,126			251,497			818,509			673,368
EMEA		24,423			18,503			68,818			51,070
Elimination of inter-segment sales		(50,814	)		(55,548	)		(176,120	)		(174,296	)
	$	559,183		$	536,384		$	1,693,102		$	1,457,761
Depreciation:
AMER	$	3,781		$	3,508		$	11,283		$	10,046
APAC		5,304			4,823			15,736			13,489
EMEA		836			468			2,068			1,443
Corporate		1,773			1,596			5,333			4,228
	$	11,694		$	10,395		$	34,420		$	29,206
Operating income (loss):
AMER	$	15,278		$	18,699		$	52,777		$	55,235
APAC		30,593			31,509			92,855			83,897
EMEA		(1,031	)		41			(1,237	)		(829	)
Corporate and other costs		(19,955	)		(23,217	)		(65,251	)		(67,661	)
	$	24,885		$	27,032		$	79,144		$	70,642

		Three Months Ended				Nine Months Ended
		July 2,		July 3,		July 2,		July 3,
		2011		2010		2011		2010
Capital expenditures:
AMER	$	2,452	$	6,898	$	10,712	$	13,510
APAC		12,620		2,732		27,661		19,380
EMEA		3,734		560		6,719		906
Corporate		399		5,707		2,299		13,536
	$	19,205	$	15,897	$	47,391	$	47,332
		July 2,		October 2,
		2011		2010
Total assets:
AMER	$	452,984	$	495,639
APAC		620,660		539,543
EMEA		86,028		84,786
Corporate		152,860		170,411
	$	1,312,532	$	1,290,379

            The following enterprise-wide information is provided in accordance with the required segment disclosures. Net sales to unaffiliated customers were based on the Company's location providing product or services (in thousands):

		Three Months Ended						Nine Months Ended
		July 2,			July 3,			July 2,			July 3,
		2011			2010			2011			2010
Net sales:
United States	$	279,468		$	296,796		$	898,688		$	837,257
Malaysia		220,687			212,777			649,288			584,136
China		59,439			38,720			169,221			89,232
United Kingdom		19,825			18,225			59,307			50,368
Mexico		25,980			25,136			83,207			70,362
Romania		4,598			278			9,511			702
Elimination of inter-segment sales		(50,814	)		(55,548	)		(176,120	)		(174,296	)
	$	559,183		$	536,384		$	1,693,102		$	1,457,761
		July 2,			October 2,
		2011			2010
Long-lived assets:
United States	$	56,402		$	59,233
Malaysia		93,011			86,387
China		28,214			21,920
United Kingdom		10,333			7,248
Mexico		9,876			8,655
Romania		6,702			4,484
Corporate		43,247			47,787
	$	247,785		$	235,714

           Long-lived assets as of both July 2, 2011 and October 2, 2010, exclude other long-term assets totaling $28.7 million.      

              The percentages of net sales to customers representing 10 percent or more of total net sales for the indicated periods were as follows:

	Three Months Ended				Nine Months Ended
	July 2,		July 3,		July 2,		July 3,
	2011		2010		2011		2010
Juniper Networks, Inc. ("Juniper")	17	%	16	%	17	%	16	%

               No other customers accounted for 10 percent or more of net sales in any of the indicated periods.