Business Segment, Geographic and Customer Information

6 Months Ended

Apr. 01, 2023

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				Six Months Ended
	April 1,		April 2,		April 1,		April 2,
	2023		2022		2023		2022
			(Restated)				(Restated)
	(In thousands)
Gross sales:
IMS	$	1,929,945	$	1,558,125	$	3,867,613	$	2,983,135
CPS		431,077		393,407		889,170		759,685
Intersegment revenue		(40,919)		(36,462)		(80,872)		(71,424)
Net sales	$	2,320,103	$	1,915,070	$	4,675,911	$	3,671,396
Gross profit:
IMS	$	144,459	$	108,660	$	277,796	$	215,289
CPS		51,004		41,046		117,528		80,592
Total		195,463		149,706		395,324		295,881
Unallocated items (1)		(4,274)		(3,211)		(8,749)		(8,089)
Total	$	191,189	$	146,495	$	386,575	$	287,792

(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				Six Months Ended
	April 1,		April 2,		April 1,		April 2,
	2023		2022		2023		2022
			(Restated)				(Restated)
	(In thousands)
Net sales:
Americas (1)	$	1,112,778	$	902,111	$	2,248,529	$	1,698,132
APAC		853,492		714,379		1,767,833		1,405,450
EMEA		353,833		298,580		659,549		567,814
Total	$	2,320,103	$	1,915,070	$	4,675,911	$	3,671,396

(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 six months ended April 1, 2023 and April 2, 2022, respectively.

Percentage of net sales represented by ten largest customers	49	%	50	%	50	%	49	%
Number of customers representing 10% or more of net sales	1		2		1		2