Reportable Segments, Geographic Information And Major Customers

12 Months Ended

Oct. 03, 2015

Segment Reporting [Abstract]

Reportable Segments, Geographic Information And Major Customers

Reportable Segments, Geographic Information and Major Customers

Reportable segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or group, in assessing performance and allocating resources. The Company uses an internal management reporting system, which provides important financial data to evaluate performance and allocate the Company’s resources on a regional basis. Net sales for the segments are attributed to the region in which the product is manufactured or the service is performed. The services provided, manufacturing processes used, class of customers serviced and order fulfillment processes used are similar and generally interchangeable across the segments. A segment’s performance is evaluated based upon its operating income (loss). A segment’s operating income (loss) includes its net sales less cost of sales and selling and administrative expenses, but excludes corporate and other expenses. Corporate and other expenses primarily represent corporate selling and administrative expenses, and restructuring and impairment charges, if any. These costs are not allocated to the segments, as management excludes such costs when assessing the performance of the segments. Inter-segment transactions are generally recorded at amounts that approximate arm’s length transactions. The accounting policies for the segments are the same as for the Company taken as a whole.

Information about the Company’s three reportable segments for fiscal 2015, 2014 and 2013 is as follows (in thousands):

	2015			2014			2013
Net sales:
AMER	$	1,389,017		$	1,238,225		$	1,062,758
APAC	1,285,905			1,132,503			1,146,299
EMEA	140,292			115,893			122,566
Elimination of inter-segment sales	(160,924		)	(108,372		)	(103,592		)
	$	2,654,290		$	2,378,249		$	2,228,031
Operating income (loss):
AMER	$	68,585		$	79,211		$	70,863
APAC	160,217			135,539			116,350
EMEA	(8,129		)	(11,923		)	(3,096		)
Corporate and other costs	(105,237		)	(102,220		)	(87,494		)
	$	115,436		$	100,607		$	96,623
Other income (expense):
Interest expense	(13,964		)	(12,295		)	(12,638		)
Interest income	3,499			2,934			1,640
Miscellaneous	1,324			2,079			(642		)
Income before income taxes	$	106,295		$	93,325		$	84,983
Depreciation:
AMER	$	17,753		$	16,452		$	13,474
APAC	18,176			20,587			23,560
EMEA	8,339			7,509			4,644
Corporate	4,110			2,713			5,732
	$	48,378		$	47,261		$	47,410
Capital expenditures:
AMER	$	17,595		$	53,135		$	60,507
APAC	9,590			4,096			12,345
EMEA	6,976			6,351			30,836
Corporate	915			1,702			4,434
	$	35,076		$	65,284		$	108,122
	October 3, 2015			September 27, 2014
Total assets:
AMER	$	573,437		$	521,259
APAC	1,011,622			881,426
EMEA	128,306			135,841
Corporate and eliminations	(10,977		)	70,500
	$	1,702,388		$	1,609,026

The following information is provided in accordance with the required segment disclosures for fiscal 2015, 2014 and 2013. Net sales to unaffiliated customers were based on the Company’s location providing product or services (in thousands):

Net sales:	2015			2014			2013
United States	$	1,303,106		$	1,188,068		$	1,004,153
Malaysia	926,059			798,447			877,748
China	359,846			334,056			268,551
Mexico	85,911			50,157			58,605
United Kingdom	70,335			72,443			81,657
Romania	65,338			39,030			38,117
Germany	4,619			4,420			2,792
Elimination of inter-segment sales	(160,924		)	(108,372		)	(103,592		)
	$	2,654,290		$	2,378,249		$	2,228,031
Long-lived assets:	October 3, 2015			September 27, 2014
United States	$	101,712		$	116,900
Malaysia	72,327			73,568
China	24,236			29,909
Mexico	39,002			33,671
United Kingdom	11,506			14,211
Romania	30,553			33,549
Germany	405			507
Other Foreign	4,689			5,280
Corporate	32,921			27,331
	$	317,351		$	334,926

As the Company operates flexible manufacturing facilities and processes designed to accommodate customers with multiple product lines and configurations, it is impracticable to report net sales for individual products or services or groups of similar products and services.

Long-lived assets as of October 3, 2015 and September 27, 2014 exclude other long-term assets and deferred income tax assets, which totaled $40.3 million and $43.3 million, respectively.

As a percentage of consolidated net sales, net sales attributable to customers representing 10.0 percent or more of consolidated net sales for fiscal 2015, 2014 and 2013 were as follows:

	2015	2014	2013
ARRIS Group, Inc. ("Arris")	12.6%	12.5%	*
General Electric Company ("GE")	10.6%	11.2%	*
Juniper Networks, Inc. (“Juniper”)	*	*	12.8%
* Net sales attributable to the customer were less than 10.0 percent of consolidated net sales for the period.

During fiscal 2015 and 2014, net sales attributable to Arris were reported in the AMER and APAC segments, and net sales attributable to GE were reported in all three segments. Net sales attributable to Juniper, which has disengaged from Plexus, were reported in the AMER and APAC segments.

No customer represented 10.0 percent or more of total accounts receivable as of October 3, 2015 or September 27, 2014.