Business Segment, Geographic and Customer Information

3 Months Ended

Dec. 31, 2022

Business Segment, Geographic and Customer Information

Business Segment, Geographic and Customer Information

Note 11. 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 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.

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 31,		January 1,
	2022		2022
	(Restated)
	(In thousands)
Gross sales:
IMS	$	1,937,668	$	1,425,010
CPS		458,093		366,278
Intersegment revenue		(39,953)		(34,962)
Net sales	$	2,355,808	$	1,756,326
Gross profit:
IMS	$	133,337	$	106,629
CPS		66,524		39,546
Total		199,861		146,175
Unallocated items (1)		(4,475)		(4,878)
Total	$	195,386	$	141,297

(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 litigation settlements.

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

	Three Months Ended
	December 31,		January 1,
	2022		2022
	(Restated)
	(In thousands)
Net sales:
Americas (1)	$	1,135,751	$	796,021
APAC		914,341		691,071
EMEA		305,716		269,234
Total	$	2,355,808	$	1,756,326

(1) Mexico represents approximately 70% and 60% of the Americas revenue and the U.S. represents approximately 30% and 40% of the Americas revenue for the first quarter of 2023 and 2022, respectively.

Percentage of net sales represented by ten largest customers	51	%	48	%
Number of customers representing 10% or more of net sales	1		1