Segment, Geographic Information and Major Customer

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment, Geographic Information and Major Customer

Note 10—Segment, Geographic Information and Major Customer

The Company’s Chief Executive Officer is our Chief Operating Decision Maker (CODM) who evaluates how resources are allocated, assesses performance and makes strategic and operational decisions. The Company currently has manufacturing facilities in the Americas, Asia and Europe to serve its customers. The Company is operated and managed geographically, and management evaluates performance and allocates the Company’s resources on a geographic basis. We provide manufacturing services, design and engineering services, and technology solutions in the Americas, Asia and Europe. Intersegment sales are generally recorded at prices that approximate arm’s length transactions. Operating segments’ measure of profitability is based on income from operations. Corporate and intersegment eliminations include (1) corporate expenses not allocated to the Company’s three reporting segments, which are primarily general and administrative expenses such as corporate employee payroll and benefit costs and corporate facility costs, and (2) income from operations on intersegment sales between reporting segments. Corporate functions include legal, finance, tax, treasury, information technology, risk management, human resources, business development and other administrative functions. The accounting policies for the reportable operating segments are the same as for the Company taken as a whole. The Company has three reportable operating segments: Americas, Asia, and Europe.

Information about the Company's operating segments follows:

(in thousands)	Americas		Asia		Europe		Total
2024
Sales from external customers	$	1,277,702	$	1,050,415	$	327,988	$	2,656,105
Intersegment sales		52,659		40,734		11,349		104,742
	$	1,330,361	$	1,091,149	$	339,337	$	2,760,847
Reconciliation of sales
Elimination of intersegment sales								(104,742	)
Sales							$	2,656,105
Less:
Cost of sales		1,201,073		895,842		292,115
Selling, general and administrative expenses		31,064		13,878		9,601
Other(1)		5,350		387		4
Segment income from operations	$	40,215	$	140,308	$	26,268	$	206,791
Reconciliation of income before income taxes
Other - corporate and eliminations(2)								(97,380	)
Interest expense								(26,922	)
Interest income								10,208
Other (expense) income, net								(8,802	)
Income before income taxes							$	83,895

(in thousands)	Americas		Asia		Europe		Total
2023
Sales from external customers	$	1,533,987	$	1,009,456	$	295,533	$	2,838,976
Intersegment sales		77,796		46,482		4,302		128,580
	$	1,611,783	$	1,055,938	$	299,835	$	2,967,556
Reconciliation of sales
Elimination of intersegment sales								(128,580	)
Sales							$	2,838,976
Less:
Cost of sales		1,431,551		871,882		269,878
Selling, general and administrative expenses		30,905		13,096		8,108
Other(1)		8,047		199		167
Segment income from operations	$	63,484	$	124,279	$	17,380	$	205,143
Reconciliation of income before income taxes
Other - corporate and eliminations(2)								(95,479	)
Interest expense								(31,875	)
Interest income								6,256
Other (expense) income, net								(2,825	)
Income before income taxes							$	81,220

(in thousands)	Americas		Asia		Europe		Total
2022
Sales from external customers	$	1,410,954	$	1,194,377	$	281,000	$	2,886,331
Intersegment sales		64,976		57,100		3,100		125,176
	$	1,475,930	$	1,251,477	$	284,100	$	3,011,507
Reconciliation of sales
Elimination of intersegment sales								(125,176	)
Sales							$	2,886,331
Less:
Cost of sales		1,321,316		1,047,354		257,493
Selling, general and administrative expenses		29,654		12,067		6,621
Other(1)		4,781		305		—
Segment income from operations	$	55,203	$	134,651	$	16,886	$	206,740
Reconciliation of income before income taxes
Other - corporate and eliminations(2)								(116,671	)
Interest expense								(12,894	)
Interest income								1,730
Other (expense) income, net								5,437
Income before income taxes							$	84,342

(1) Includes expenses for amortization of intangible assets and restructuring charges and other costs.

(2) Includes corporate expenses for unallocated expenses, amortization of intangible assets and restructuring charges and other costs and elimination of intersegment cost of sales.

	Year Ended December 31,
(in thousands)	2024		2023		2022
Depreciation and amortization:
Americas	$	21,136	$	20,940	$	19,574
Asia		10,277		9,746		10,192
Europe		3,596		3,226		3,289
Corporate		11,135		11,498		11,197
Total depreciation and amortization	$	46,144	$	45,410	$	44,252
Capital expenditures:
Americas	$	13,692	$	38,627	$	30,105
Asia		14,049		25,286		10,534
Europe		3,585		7,098		4,509
Corporate		1,927		6,728		1,626
Total capital expenditures	$	33,253	$	77,739	$	46,774

	December 31,
(in thousands)	2024		2023
Assets:
Americas	$	866,595	$	1,064,047
Asia		821,252		769,744
Europe		225,872		222,591
Corporate		225,745		218,373
Total assets	$	2,139,464	$	2,274,755

Geographic sales information about the Company's sales is determined based on the destination of the product shipped. Long-lived assets information is determined based on the physical location of the assets and includes property, plant and equipment, net, operating lease right-of-use assets and other long-term assets, net.

A summary of the Company's geographic sales and long-lived assets follows:

	Year Ended December 31,
(in thousands)	2024		2023		2022
Geographic sales:
United States	$	1,488,297	$	1,737,144	$	1,569,232
Singapore		463,553		383,914		457,889
Other Asia		215,898		210,927		332,144
Europe		406,514		402,514		387,276
Other		81,843		104,477		139,790
Total sales	$	2,656,105	$	2,838,976	$	2,886,331

	December 31,
(in thousands)	2024		2023
Long-lived assets:
United States	$	215,536	$	231,740
Asia		89,249		79,203
Europe		39,936		42,934
Other		64,506		66,072
Total long-lived assets	$	409,227	$	419,949

The Company’s customers operate in industries that are, to a varying extent, subject to rapid technological change, vigorous competition and short product life cycles. Developments adverse to the electronics industry, the Company’s customers or their products could impact the Company’s overall credit risk.

The Company extends credit based on evaluation of its customers’ financial condition and generally does not require collateral or other security from its customers and would incur a loss equal to the carrying value of the accounts receivable if its customer failed to perform according to the terms of the credit arrangement.

Sales to the Company's ten largest customers represented 50%, 52% and 52% of our consolidated sales for 2024, 2023 and 2022, respectively.

The Company had sales to the following customer that exceeded 10% of the Company's consolidated sales:

	Year Ended December 31,
	2024	2023	2022
Applied Materials, Inc. and subsidiaries	14%	12%	15%

Sales attributable to this customer were reported in the Americas and Asia operating segments.

As of December 31, 2024 and 2023, the Company had one customer whose gross accounts receivable exceeded 10% of consolidated gross accounts receivable. This customer represented 12% and 16% of consolidated gross accounts receivable as of December 31, 2024 and 2023, respectively.