Note 11 Business Segment, Geographic and Customer Information

6 Months Ended

Mar. 30, 2019

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 30, 2019			March 31, 2018			March 30, 2019			March 31, 2018
	(In thousands)
Gross sales:
IMS	$	1,793,119		$	1,374,581		$	3,586,301		$	2,803,428
CPS	394,985			345,732			850,788			702,461
Intersegment revenue	(61,465		)	(44,684		)	(122,432		)	(85,460		)
Net sales	$	2,126,639		$	1,675,629		$	4,314,657		$	3,420,429

Gross profit:
IMS	$	114,837		$	85,916		$	225,493		$	168,533
CPS	40,292			31,372			80,811			61,238
Total	155,129			117,288			306,304			229,771
Unallocated items (1)	(2,027		)	(2,590		)	(3,865		)	(5,607		)
Total	$	153,102		$	114,698		$	302,439		$	224,164


(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				Six Months Ended
	March 30, 2019		March 31, 2018		March 30, 2019		March 31, 2018
	(In thousands)
Net sales
United States	$	400,888	$	321,337	$	855,659	$	636,145
Mexico	661,010		494,760		1,323,158		983,994
China	413,304		265,913		846,726		581,005
Malaysia	87,588		150,638		210,493		336,350
Other international	563,849		442,981		1,078,621		882,935
Total	$	2,126,639	$	1,675,629	$	4,314,657	$	3,420,429



Percentage of net sales represented by ten largest customers	55	%	53	%	54	%	54	%
Number of customers representing 10% or more of net sales	1		1		1		2