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 other charges, if any. Losses incurred from a typhoon that impacted the APAC segment in fiscal 2016 are excluded from the segment results and included within corporate and other expenses. 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 2017, 2016 and 2015 is as follows (in thousands):



	2017			2016			2015
Net sales:
AMER	$	1,166,346		$	1,328,760		$	1,389,017
APAC	1,279,261			1,161,851			1,285,905
EMEA	192,829			170,450			140,292
Elimination of inter-segment sales	(110,384		)	(105,057		)	(160,924		)
	$	2,528,052		$	2,556,004		$	2,654,290

Operating income (loss):
AMER	$	41,924		$	64,921		$	68,585
APAC	200,103			155,501			160,217
EMEA	(6,197		)	(3,746		)	(8,129		)
Corporate and other costs	(105,922		)	(117,237		)	(105,237		)
	$	129,908		$	99,439		$	115,436
Other income (expense):
Interest expense	(13,578		)	(14,635		)	(13,964		)
Interest income	5,042			4,242			3,499
Miscellaneous	451			(1,652		)	1,324
Income before income taxes	$	121,823		$	87,394		$	106,295

Depreciation:
AMER	$	19,694		$	19,937		$	17,753
APAC	15,588			16,874			18,176
EMEA	5,467			6,106			8,339
Corporate	4,581			4,497			4,110
	$	45,330		$	47,414		$	48,378

Capital expenditures:
AMER	$	18,111		$	14,389		$	17,595
APAC	13,816			10,786			9,590
EMEA	5,748			3,399			6,976
Corporate	863			2,549			915
	$	38,538		$	31,123		$	35,076


	September 30, 2017			October 1, 2016
Total assets:
AMER	$	595,851		$	590,850
APAC	1,163,111			1,009,917
EMEA	172,830			136,636
Corporate and eliminations	44,390			28,416
	$	1,976,182		$	1,765,819

The following information is provided in accordance with the required segment disclosures for fiscal 2017, 2016 and 2015. Net sales were based on the Company’s location providing the product or service (in thousands):



	2017			2016			2015
Net sales:
United States	$	984,773		$	1,134,342		$	1,303,106
Malaysia	940,045			844,501			926,059
China	339,216			317,350			359,846
Mexico	181,573			194,418			85,911
Romania	114,363			83,712			65,338
United Kingdom	70,163			81,894			70,335
Germany	8,303			4,844			4,619
Elimination of inter-segment sales	(110,384		)	(105,057		)	(160,924		)
	$	2,528,052		$	2,556,004		$	2,654,290


	September 30, 2017			October 1, 2016
Long-lived assets:
United States	$	110,828		$	92,152
Malaysia	74,769			71,596
Mexico	37,237			39,155
Romania	33,717			30,408
China	18,602			19,197
United Kingdom	6,456			6,594
Germany	303			307
Other Foreign	5,126			4,940
Corporate	27,627			26,876
	$	314,665		$	291,225

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 September 30, 2017 and October 1, 2016 exclude other long-term assets and deferred income tax assets, which totaled $44.1 million and $41.2 million, respectively.

As a percentage of consolidated net sales, net sales attributable to customers representing 10.0% or more of consolidated net sales for fiscal 2017, 2016 and 2015 were as follows:



	2017	2016	2015
General Electric Company ("GE")	12.2%	11.1%	10.6%
Micron Technology, Inc. ("Micron")	*	10.4%	*
ARRIS Group, Inc. ("Arris")	*	10.1%	12.6%
* Net sales attributable to the customer were less than 10.0% of consolidated net sales for the period.

During fiscal 2017, 2016, and 2015, net sales attributable to GE were reported in all three reportable segments. During fiscal 2016 and 2015, sales attributable to Arris were reported in the AMER and APAC segments. During fiscal 2016, net sales attributable to Micron were reported in the AMER and APAC segments.

As of September 30, 2017, Arris represented 11.6% of total accounts receivable. As of October 1, 2016, Micron represented 18.9% of total accounts receivable.