Segment Reporting

3 Months Ended

Sep. 03, 2011

Segment Reporting

Segment Reporting

10. SEGMENT REPORTING

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

EDG provides engineered solutions and distributes electronic components to customers in diverse markets including the steel, automotive, textile, plastics, semiconductor manufacturing, avionics, and broadcast equipment industries.

Canvys provides global integrated display solutions serving the financial, corporate enterprise, healthcare, industrial, and medical original equipment manufacturer ("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):

	Three Months Ended
EDG	September 3, 2011		August 28, 2010
Net Sales	$	30,729	$	27,493
Gross Profit	$	9,671	$	9,055
Canvys
Net Sales	$	10,782	$	10,017
Gross Profit	$	3,031	$	2,335

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

	September 3, 2011		May 28, 2011
Segment assets	$	54,461	$	51,464
Cash		37,236		170,975
Investments - current		113,617		52,116
Other current assets (1)		17,722		9,615
Net property		5,056		5,216
Investments - non-current		33,871		16,656
Other assets (2)		—		3,994
Assets of discontinued operations (3)		2,079		4,018
Total assets	$	264,042	$	314,054

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

(2) Other assets primarily include non-current deferred income taxes.

(3) See Footnote 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):

	Three Months Ended
	September 3,			August 28,
	2011			2010
Net Sales
North America	$	16,553		$	15,929
Asia/Pacific		7,894			6,705
Europe		13,558			11,846
Latin America		2,830			2,829
Other		676			201
Total	$	41,511		$	37,510
Gross Profit
North America	$	5,365		$	5,043
Asia/Pacific		2,660			2,461
Europe		4,385			3,131
Latin America		1,062			1,142
Other		(770	)		(386	)
Total	$	12,702		$	11,391

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.