Note 9 Business Segment, Geographic and Customer Information

9 Months Ended

Jul. 02, 2016

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: Integrated Manufacturing Solutions (IMS) and Components, Products and Services (CPS). 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 "CPS" and the Company has only one reportable segment - IMS.

The following table presents revenue and a measure of segment gross profit used by management to allocate resources and assess performance of operating segments:

	Three Months Ended						Nine Months Ended
	July 2, 2016			June 27, 2015			July 2, 2016			June 27, 2015
	(In thousands)
Gross sales:
IMS	$	1,372,551		$	1,245,748		$	3,926,323		$	3,851,264
CPS	341,812			339,150			1,030,797			1,032,435
Intersegment revenue	(44,889		)	(45,627		)	(141,758		)	(145,736		)
Net sales	$	1,669,474		$	1,539,271		$	4,815,362		$	4,737,963
Gross profit:
IMS	$	99,467		$	90,764		$	291,917		$	273,507
CPS	29,938			32,670			95,487			99,615
Total	129,405			123,434			387,404			373,122
Unallocated items (1)	(2,744		)	(2,872		)	(393		)	(10,951		)
Total	$	126,661		$	120,562		$	387,011		$	362,171

(1) For purposes of evaluating segment performance, management excludes certain items from its measures of gross profit. These items consist of stock-based compensation expense, amortization of intangible assets, charges or credits resulting from distressed customers and acquisition-related items.

Net sales by geographic segment, determined based on the country in which a product is manufactured, were as follows:

	Three Months Ended				Nine Months Ended
	July 2, 2016		June 27, 2015		July 2, 2016		June 27, 2015
	(In thousands)
Net sales
United States	$	262,195	$	252,441	$	776,659	$	732,992
Mexico	461,189		467,133		1,391,168		1,481,064
China	358,023		361,004		1,109,249		1,136,605
Other international	588,067		458,693		1,538,286		1,387,302
Total	$	1,669,474	$	1,539,271	$	4,815,362	$	4,737,963

Percentage of net sales represented by ten largest customers	52.8	%	47.7	%	52.4	%	49.0	%
Number of customers representing 10% or more of net sales	2		—		1		—