Note 12 Business Segment, Geographic and Customer Information

3 Months Ended

Dec. 28, 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: IMS and 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 28, 2019			December 29, 2018
	(In thousands)
Gross sales:
IMS	$	1,543,935		$	1,793,182
CPS	336,431			455,803
Intersegment revenue	(40,195		)	(60,967		)
Net sales	$	1,840,171		$	2,188,018

Gross profit:
IMS	$	101,182		$	110,656
CPS	36,612			40,519
Total	137,794			151,175
Unallocated items (1)	(2,912		)	(1,838		)
Total	$	134,882		$	149,337


(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 28, 2019		December 29, 2018
	(In thousands)
Net sales:
Americas (1)	$	906,568	$	1,163,878
EMEA	261,031		235,053
APAC	672,572		789,087
Total	$	1,840,171	$	2,188,018


(1)	Mexico represents approximately 60% of the Americas revenue and the U.S. represents approximately 35%.




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