SEGMENT AND GEOGRAPHIC INFORMATION

12 Months Ended

Jun. 01, 2013

SEGMENT AND GEOGRAPHIC INFORMATION

11. 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
	June 1, 2013		June 2, 2012		May 28, 2011
EDG
Net Sales	$	102,593	$	112,586	$	113,715
Gross Profit		31,431		34,626		35,020
Canvys
Net Sales	$	38,473	$	45,250	$	45,152
Gross Profit		10,114		12,155		11,093

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

	June 1, 2013		June 2, 2012
Segment assets	$	53,253	$	54,768
Cash		102,002		43,893
Investments - current		38,971		105,009
Other current assets (1)		10,857		10,723
Net property		5,073		4,375
Investments - non-current		5,461		10,683
Other assets (2)		1,398		1,458
Assets of discontinued operations (3)		303		514
Total assets	$	217,318	$	231,423

(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 Note 5 “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
	June 1, 2013			June 2, 2012			May 28, 2011
Net Sales
North America	$	61,633		$	68,990		$	67,646
Asia/Pacific		22,732			25,588			26,354
Europe		45,663			52,039			54,040
Latin America		9,447			9,870			10,239
Other		1,591			1,349			588
Total	$	141,066		$	157,836		$	158,867
Gross Profit
North America	$	21,460		$	21,640		$	19,873
Asia/Pacific		7,753			9,061			9,441
Europe		14,323			16,082			14,356
Latin America		3,294			3,710			4,093
Other		(5,285	)		(3,712	)		(1,650	)
Total	$	41,545		$	46,781		$	46,113

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.