Note 11 Business Segment, Geographic and Customer Information

3 Months Ended

Dec. 29, 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
	December 29, 2018			December 30, 2017
	(In thousands)
Gross sales:
IMS	$	1,793,182		$	1,428,847
CPS	455,803			356,729
Intersegment revenue	(60,967		)	(40,776		)
Net sales	$	2,188,018		$	1,744,800

Gross profit:
IMS	$	110,656		$	82,617
CPS	40,519			29,866
Total	151,175			112,483
Unallocated items (1)	(1,838		)	(3,017		)
Total	$	149,337		$	109,466


(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 and charges or credits resulting from distressed customers.

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



	Three Months Ended
	December 29, 2018		December 30, 2017
	(In thousands)
Net sales
United States	$	454,771	$	314,808
Mexico	662,148		489,234
China	433,422		315,092
Malaysia	122,905		185,712
Other international	514,772		439,954
Total	$	2,188,018	$	1,744,800



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