Note 10 Business Segment, Geographic and Customer Information

9 Months Ended

Jun. 30, 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						Nine Months Ended
	June 30, 2018			July 1, 2017			June 30, 2018			July 1, 2017
	(In thousands)
Gross sales:
IMS	$	1,490,069		$	1,408,442		$	4,293,497		$	4,205,149
CPS	374,642			356,998			1,077,103			1,057,709
Intersegment revenue	(51,345		)	(54,063		)	(136,805		)	(149,242		)
Net sales	$	1,813,366		$	1,711,377		$	5,233,795		$	5,113,616

Gross profit:
IMS	$	85,381		$	106,841		$	253,914		$	310,122
CPS	31,300			26,229			92,538			95,021
Total	116,681			133,070			346,452			405,143
Unallocated items (1)	1,855			(2,382		)	(3,752		)	(9,083		)
Total	$	118,536		$	130,688		$	342,700		$	396,060


(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
	June 30, 2018		July 1, 2017		June 30, 2018		July 1, 2017
	(In thousands)
Net sales
United States	$	344,149	$	313,123	$	980,294	$	916,513
Mexico	529,864		479,058		1,513,858		1,422,790
China	305,350		353,372		886,355		988,851
Malaysia	161,478		170,133		497,828		575,791
Other international	472,525		395,691		1,355,460		1,209,671
Total	$	1,813,366	$	1,711,377	$	5,233,795	$	5,113,616



Percentage of net sales represented by ten largest customers	52	%	53	%	53	%	53	%
Number of customers representing 10% or more of net sales	1		2		1		2