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Concentration of Risk and Segment Data
 6 Months Ended
Feb. 29, 2024
Segment Reporting [Abstract]  
Concentration of Risk and Segment Data Concentration of Risk and Segment Data
Concentration of Risk
Sales of the Company’s products are concentrated among specific customers. During the six months ended February 29, 2024, the Company’s five largest customers accounted for approximately 39% of its net revenue and 82 customers accounted for
approximately 90% of its net revenue. Sales to these customers were reported in the Electronics Manufacturing Services (“EMS”) and Diversified Manufacturing Services (“DMS”) operating segments. The DMS segment included the results of the Company’s mobility business prior to the closing of its sale on December 29, 2023.
The Company procures components from a broad group of suppliers. Some of the products manufactured by the Company require one or more components that are available from only a single source.
Segment Data
Net revenue for the operating segments is attributed to the segment in which the service is performed. An operating segment’s performance is evaluated based on its pre-tax operating contribution, or segment income. Segment income is defined as net revenue less cost of revenue, segment selling, general and administrative expenses, segment research and development expenses and an allocation of corporate manufacturing expenses and selling, general and administrative expenses. Certain items are excluded from the calculation of segment income. Transactions between operating segments are generally recorded at amounts that approximate those at which we would transact with third parties.
The following table sets forth operating segment information (in millions):
 Three months endedSix months ended
 February 29, 2024February 28, 2023February 29, 2024February 28, 2023
Segment income and reconciliation of income before income tax
EMS$145 $205 $310 $403 
DMS193 186 527 449 
Total segment income$338 $391 $837 $852 
Reconciling items:
Amortization of intangibles(9)(9)(15)(17)
Stock-based compensation expense and related charges(23)(20)(69)(62)
Restructuring, severance and related charges(70)— (197)(45)
Gain from the divestiture of businesses944 — 944 — 
Acquisition and divestiture related charges(46)— (61)— 
Other expense (net of periodic benefit cost)(25)(20)(48)(39)
Interest expense, net(47)(55)(94)(103)
Income before income tax$1,062 $287 $1,297 $586 
The following table presents the Company’s revenues disaggregated by segment (in millions):
Three months ended
February 29, 2024February 28, 2023
EMSDMSTotalEMSDMSTotal
Timing of transfer
Point in time$1,206 $773 $1,979 $1,267 $1,416 $2,683 
Over time2,125 2,663 4,788 2,784 2,667 5,451 
Total$3,331 $3,436 $6,767 $4,051 $4,083 $8,134 
Six months ended
February 29, 2024February 28, 2023
EMSDMSTotalEMSDMSTotal
Timing of transfer
Point in time$2,301 $2,787 $5,088 $2,805 $3,696 $6,501 
Over time4,622 5,444 10,066 5,792 5,476 11,268 
Total$6,923 $8,231 $15,154 $8,597 $9,172 $17,769 
The Company operates in more than 30 countries worldwide. Sales to unaffiliated customers are based on the Company location that maintains the customer relationship and transacts the external sale. The following table sets forth, for the periods indicated, foreign source revenue expressed as a percentage of net revenue:
Three months endedSix months ended
 February 29, 2024February 28, 2023February 29, 2024February 28, 2023
Foreign source revenue82.5 %84.0 %84.7 %85.0 %