Note 9 Business Segment, Geographic and Customer Information

9 Months Ended

Jul. 01, 2017

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 1, 2017			July 2, 2016			July 1, 2017			July 2, 2016
	(In thousands)
Gross sales:
IMS	$	1,408,442		$	1,372,551		$	4,205,149		$	3,926,323
CPS	356,998			341,812			1,057,709			1,030,797
Intersegment revenue	(54,063		)	(44,889		)	(149,242		)	(141,758		)
Net sales	$	1,711,377		$	1,669,474		$	5,113,616		$	4,815,362
Gross profit:
IMS	$	106,841		$	99,467		$	310,122		$	291,917
CPS	26,229			29,938			95,021			95,487
Total	133,070			129,405			405,143			387,404
Unallocated items (1)	(2,382		)	(2,744		)	(9,083		)	(393		)
Total	$	130,688		$	126,661		$	396,060		$	387,011

(1) For purposes of evaluating segment performance, management excludes certain items from its measure 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 1, 2017		July 2, 2016		July 1, 2017		July 2, 2016
	(In thousands)
Net sales
United States	$	313,123	$	262,195	$	916,513	$	776,659
Mexico	479,058		461,189		1,422,790		1,391,168
China	353,372		358,023		988,851		1,109,249
Malaysia	170,133		173,773		575,791		338,311
Other international	395,691		414,294		1,209,671		1,199,975
Total	$	1,711,377	$	1,669,474	$	5,113,616	$	4,815,362

Percentage of net sales represented by ten largest customers	52.6	%	52.8	%	52.6	%	52.4	%
Number of customers representing 10% or more of net sales	2		2		2		1