Note 16 Business Segment, Geographic and Customer Information

12 Months Ended

Sep. 27, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Business Segment, Geographic and Customer Information

ASC Topic 280, Segment Reporting, establishes standards for reporting information about operating segments, products and services, geographic areas of operations and major customers. Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker or decision making group in deciding how to allocate resources and in assessing performance.

The Company's operations are managed as two businesses:

1) Integrated Manufacturing Solutions (IMS). IMS is a reportable segment consisting of printed circuit board assembly and test, final system assembly and test, and direct order fulfillment.

2) Components, Products and Services (CPS). Components include interconnect systems (printed circuit board fabrication, backplane and cable assemblies) and mechanical systems (enclosures, precision machining and plastic injection molding); Products include memory and solid state drive products from the Company's Viking Technology division, defense and aerospace products from SCI Technology, storage products from the Company's Newisys division and optical and RF (Radio Frequency) modules; and Services include design, engineering, logistics and repair services.

The Company evaluated its operating segments to determine whether they can be aggregated into reportable segments. Factors considered in this evaluation were similarity regarding economic characteristics, products, production processes, type or classes of customers, distribution methods and regulatory environments. Based on this evaluation, the Company determined that it has only one reportable segment - IMS, which generated 79% of the Company's total revenue in 2014. The Company's CPS business consists of multiple operating segments which do not meet the quantitative threshold for being presented as reportable segments. Therefore, financial information for these operating segments is presented in a single category entitled “Components, Products and Services (CPS)”.

The accounting policies for each segment are the same as those disclosed by the Company for its consolidated financial statements. Intersegment sales consist primarily of sales of components from CPS to IMS.

The Company's chief operating decision making group is the Chief Executive Officer and Chief Financial Officer and they allocate resources and assess performance of operating segments based on a non-GAAP measure of revenue and gross profit that excludes items not directly related to the Company's ongoing business operations. These items are typically either non-recurring or non-cash in nature.

The following table presents segment information for the following years:

	Year Ended
	September 27, 2014			September 28, 2013			September 29, 2012
	(In thousands)
Gross sales:
IMS	$	4,933,714		$	4,766,670		$	4,968,983
CPS	1,514,340			1,335,510			1,265,855
Intersegment revenue	(231,092		)	(185,056		)	(141,504		)
Unallocated items (1)	$	(1,856	)	$	—		$	—
Net Sales	$	6,215,106		$	5,917,124		$	6,093,334
Gross Profit:
IMS	$	339,909		$	291,664		$	329,267
CPS	155,974			144,725			111,448
Total	495,883			436,389			440,715
Unallocated items (1)	(7,600		)	(9,572		)	(4,933		)
Total	$	488,283		$	426,817		$	435,782
Depreciation and amortization:
IMS	$	50,933		$	54,531		$	54,711
CPS	38,420			32,802			35,641
Total	89,353			87,333			90,352
Unallocated corporate items (2)	8,324			8,688			9,125
Total	$	97,677		$	96,021		$	99,477
Capital expenditures:
IMS	$	47,103		$	44,080		$	39,962
CPS	27,724			25,542			40,150
Total	74,827			69,622			80,112
Unallocated corporate items (2)	4,635			3,447			1,787
Total	$	79,462		$	73,069		$	81,899

(1) For purposes of evaluating segment performance, management excludes certain items from its measures of revenue and gross profit. These items include stock-based compensation expense, amortization of intangible assets, charges or credits resulting from distressed customers and similar items that either occur infrequently or are of a non-operational nature.

(2) Primarily related to selling, general and administration functions.

	As of
	September 27, 2014		September 28, 2013
	(In thousands)
Long-lived assets (including assets held for sale):
IMS	$	309,922	$	287,907
CPS	213,266		204,905
Total	523,188		492,812
Unallocated corporate items (1)	51,466		51,722
Total	$	574,654	$	544,534

(1) Primarily related to selling, general and administration functions.

Information by geographic segment, determined based on the country in which a product is manufactured or a service is provided, was as follows:

	Year Ended
	September 27, 2014		September 28, 2013		September 29, 2012
	(In thousands)
Net sales:
Domestic	$	1,041,892	$	1,074,529	$	1,106,446
Mexico	1,693,564		1,433,799		1,296,690
China	1,564,389		1,501,632		1,667,095
Other international	1,915,261		1,907,164		2,023,103
Total	$	6,215,106	$	5,917,124	$	6,093,334

Percentage of net sales represented by ten largest customers	50.3	%	50.3	%	49.7	%
Number of customers representing 10 % or more of net sales	—		1		1

	As of
	September 27, 2014		September 28, 2013
	(In thousands)
Long-lived assets (including assets held for sale):
Domestic	$	147,298	$	147,773
Mexico	168,712		125,552
China	89,380		88,160
Other international	169,264		183,049
Total	$	574,654	$	544,534