SEGMENT REPORTING

12 Months Ended

May 31, 2014

SEGMENT REPORTING

10. SEGMENT AND GEOGRAPHIC INFORMATION

In accordance with ASC 280-10, Segment Reporting, we have identified two reportable segments: EDG and Canvys.

EDG provides engineered solutions and distributes electronic components to customers in alternative energy, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. EDG focuses on various applications including broadcast transmission, CO2 laser cutting, diagnostic imaging, dielectric and induction heating, high energy transfer, high voltage switching, plasma, power conversion, radar, and radiation oncology. EDG also offers its customers technical services for both microwave and industrial equipment.

Canvys provides global customized display solutions serving the corporate enterprise, financial, healthcare, industrial, and OEM markets.

The CEO evaluates performance and allocates resources primarily based on the gross profit of each segment.

Operating results by segment are summarized in the following table (in thousands):

	Fiscal Year Ended
	May 31,   2014		June 1,   2013		June 2,   2012
EDG
Net Sales	$	103,274	$	102,593	$	112,586
Gross Profit	31,610		31,431		34,626
Canvys
Net Sales	$	34,686	$	38,473	$	45,250
Gross Profit	9,404		10,114		12,155

A reconciliation of assets to the relevant consolidated amount is as follows (in thousands):

	May 31,   2014		June 1,   2013
Segment assets	$	52,790	$	53,253
Cash	102,752		102,002
Investments - current	31,732		38,971
Other current assets (1)	5,790		10,857
Net property	7,223		5,073
Investments - non-current	1,516		5,461
Other assets - non-current deferred income taxes	1,724		1,398
Assets of discontinued operations (2)	18		303
Total assets	$	203,545	$	217,318

(1) Other current assets include miscellaneous receivables, prepaid expenses, and current deferred income taxes.

(2) See Note 4 “Discontinued Operations”.

Geographic net sales information is primarily grouped by customer destination into five areas: North America; Asia/Pacific; Europe; Latin America; and Other.

Net sales and gross profit by geographic region are summarized in the following table (in thousands):

	Fiscal Year Ended
	May 31,   2014			June 1,   2013			June 2,   2012
Net Sales
North America	$	57,137		$	62,269		$	68,980
Asia/Pacific	24,069			22,732			25,588
Europe	47,610			45,663			48,998
Latin America	8,936			9,447			9,870
Other	208			955			4,400
Total	$	137,960		$	141,066		$	157,836
Gross Profit
North America	$	18,905		$	20,963		$	22,380
Asia/Pacific	7,849			7,805			9,068
Europe	15,506			14,248			15,107
Latin America	3,231			3,296			3,712
Other	(4,477		)	(4,767		)	(3,486		)
Total	$	41,014		$	41,545		$	46,781

We sell our products to customers in diversified industries and perform periodic credit evaluations of our customers’ financial condition. Terms are generally on open account, payable net 30 days in North America, and vary throughout Asia/Pacific, Europe, and Latin America. Estimates of credit losses are recorded in the financial statements based on monthly reviews of outstanding accounts. Other primarily includes net sales not allocated to a specific geographical region, unabsorbed value-add costs, and other unallocated expenses.

Net assets by geographic region are summarized in the following table (in thousands):

	Fiscal Year Ended
	May 31,   2014		June 1,   2013		June 2,   2012
Net Assets
North America	$	89,549	$	107,976	$	121,475
Asia/Pacific	45,334		43,604		47,123
Europe	38,407		36,373		33,843
Latin America	2,202		2,256		1,571
Total	$	175,492	$	190,209	$	204,012