Note 10 Business Segment, Geographic and Customer Information

6 Months Ended

Mar. 31, 2018

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						Six Months Ended
	March 31, 2018			April 1, 2017			March 31, 2018			April 1, 2017
	(In thousands)
Gross sales:
IMS	$	1,374,581		$	1,382,437		$	2,803,428		$	2,796,707
CPS	345,732			349,637			702,461			700,711
Intersegment revenue	(44,684		)	(49,812		)	(85,460		)	(95,179		)
Net sales	$	1,675,629		$	1,682,262		$	3,420,429		$	3,402,239

Gross profit:
IMS	$	85,916		$	100,644		$	168,533		$	203,281
CPS	31,372			35,503			61,238			68,792
Total	117,288			136,147			229,771			272,073
Unallocated items (1)	(2,590		)	(2,937		)	(5,607		)	(6,701		)
Total	$	114,698		$	133,210		$	224,164		$	265,372


(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				Six Months Ended
	March 31, 2018		April 1, 2017		March 31, 2018		April 1, 2017
	(In thousands)
Net sales
United States	$	321,337	$	303,514	$	636,145	$	603,390
Mexico	494,760		469,572		983,994		943,732
China	265,913		313,740		581,005		635,479
Malaysia	150,638		194,467		336,350		405,658
Other international	442,981		400,969		882,935		813,980
Total	$	1,675,629	$	1,682,262	$	3,420,429	$	3,402,239



Percentage of net sales represented by ten largest customers	53	%	54	%	54	%	53	%
Number of customers representing 10% or more of net sales	1		2		2		2