Note 15 Business Segment, Geographic and Customer Information

12 Months Ended

Oct. 02, 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:

1)Integrated Manufacturing Solutions (IMS). IMS is a reportable segment consisting of printed circuit board assembly and test, high-level assembly and test and direct order fulfillment.

2)Components, Products and Services (CPS). Components include interconnect systems (printed circuit board fabrication, backplanes, cable assemblies and plastic injection molding) and mechanical systems (enclosures and precision machining). Products include memory solutions from our Viking Technology division; high-performance storage platforms for hyperscale and enterprise solutions from our Viking Enterprise Solutions (VES) division; optical, radio frequency (RF) and microelectronics (microE) design and manufacturing services from Advanced Micro Systems Technologies; defense and aerospace products from SCI Technology; and cloud-based manufacturing execution software from the Company's 42Q division. Services include design, engineering and logistics and repair.

The Company evaluated its operating segments to determine whether they can be aggregated into reportable segments. Factors considered in this evaluation were similarity of economic characteristics, products, production processes, type or classes of customers, distribution methods and regulatory environments. The Company determined that it has only one reportable segment - IMS, which generated approximately 80% of the Company's total revenue in 2021. The Company's CPS business consists of multiple operating segments which, based on this evaluation, do not meet the quantitative threshold for being presented individually as reportable segments. Therefore, financial information for these operating segments is aggregated and presented in a single category entitled “Components, Products and Services".

The accounting policies for each segment are the same as those disclosed by the Company for its consolidated financial statements. Intersegment sales consist primarily of sales of components from CPS to IMS.

The Company's chief operating decision making group is the Chief Executive Officer and Chief Financial Officer and they allocate resources and assess performance of operating segments based on a measure of revenue and gross profit that excludes items not directly related to the Company's ongoing business operations. These items are typically either non-recurring or non-cash in nature.

Segment information is as follows:

	Year Ended
	October 2, 2021		October 3, 2020		September 28, 2019
	(In thousands)
Gross sales:
IMS	$	5,485,612	$	5,733,180	$	6,907,129
CPS	1,397,742		1,365,712		1,555,117
Intersegment revenue	(126,711)		(138,522)		(228,387)
Net Sales	$	6,756,643	$	6,960,370	$	8,233,859
Gross Profit:
IMS	$	391,339	$	381,638	$	444,168
CPS	177,248		156,844		156,221
Total	568,587		538,482		600,389
Unallocated items (1)	(16,782)		(12,775)		(8,451)
Total	$	551,805	$	525,707	$	591,938
Depreciation and amortization:
IMS	$	77,076	$	81,169	$	81,997
CPS	27,770		26,718		25,632
Total	104,846		107,887		107,629
Unallocated corporate items (2)	4,810		6,331		9,320
Total	$	109,656	$	114,218	$	116,949
Capital expenditures (receipt basis):
IMS	$	44,672	$	23,933	$	79,943
CPS	33,839		23,915		28,629
Total	78,511		47,848		108,572
Unallocated corporate items (2)	3,343		3,227		3,836
Total	$	81,854	$	51,075	$	112,408

(1)    For purposes of evaluating segment performance, management excludes certain items from its measures of gross profit. These items consist of stock-based compensation expense, amortization of intangible assets, charges or credits resulting from distressed customers and litigation settlements.

(2)    Primarily related to selling, general and administration functions.

Segment assets, consisting of accounts receivable, inventories and fixed assets, are substantially proportional to segment sales.

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

	Year Ended
	October 2, 2021		October 3, 2020		September 28, 2019
	(In thousands)
Net sales:
Americas (1)	$	3,182,849	$	3,450,527	$	4,194,652
EMEA	1,055,831		995,838		1,051,192
APAC	2,517,963		2,514,005		2,988,015
Total	$	6,756,643	$	6,960,370	$	8,233,859

(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	52.7	%	55.5	%	54.2	%
Number of customers representing 10% or more of net sales	1		1		1

	As of
	October 2, 2021		October 3, 2020
	(In thousands)
Property, plant and equipment, net:
Americas	$	322,545	$	327,991
EMEA	67,329		63,089
APAC	143,111		168,162
Total	$	532,985	$	559,242