Note 11 Business Segment, Geographic and Customer Information

6 Months Ended

Apr. 03, 2021

Segment Reporting [Abstract]

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 individually 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.

During the first quarter of 2021, the Company began including Viking Technology, an operating segment previously aggregated and reported under CPS, in its IMS reportable segment. Accordingly, the data presented in the table below reflects this change in segment reporting for all periods presented. The change in segment reporting does not affect the Company’s previously reported consolidated financial statements.

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
	April 3, 2021		March 28, 2020		April 3, 2021		March 28, 2020
	(In thousands)
Gross sales:
IMS	$	1,369,937	$	1,305,887	$	2,832,037	$	2,854,780
CPS	361,072		321,509		680,488		652,684
Intersegment revenue	(31,332)		(36,846)		(57,599)		(76,743)
Net sales	$	1,699,677	$	1,590,550	$	3,454,926	$	3,430,721
Gross profit:
IMS	$	95,030	$	75,421	$	201,596	$	176,627
CPS	51,401		34,582		91,039		71,170
Total	146,431		110,003		292,635		247,797
Unallocated items (1)	(3,333)		(2,582)		(8,302)		(5,494)
Total	$	143,098	$	107,421	$	284,333	$	242,303

(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, charges or credits resulting from distressed customers and litigation settlements.

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
	April 3, 2021		March 28, 2020		April 3, 2021		March 28, 2020
	(In thousands)
Net sales:
Americas (1)	$	803,642	$	817,061	$	1,635,464	$	1,723,629
EMEA	272,167		256,724		531,459		517,755
APAC	623,868		516,765		1,288,003		1,189,337
Total	$	1,699,677	$	1,590,550	$	3,454,926	$	3,430,721

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

Percentage of net sales represented by ten largest customers	54	%	55	%	56	%	55	%
Number of customers representing 10% or more of net sales	1		1		1		1