Reportable Segments, Geographic Information and Major Customers

12 Months Ended

Sep. 28, 2019

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 costs and other charges, if any, such as the $1.7 million of restructuring costs in fiscal 2019 and the $13.5 million one-time employee bonus paid to full-time, non-executive employees during fiscal 2018 due to the Company's ability to access overseas cash as a result of Tax Reform (the "one-time employee bonus"). 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 2019, 2018 and 2017 is as follows (in thousands):



	2019			2018			2017
Net sales:
AMER	$	1,429,308		$	1,218,944		$	1,166,346
APAC	1,557,205			1,498,010			1,279,261
EMEA	309,933			281,489			192,829
Elimination of inter-segment sales	(132,012		)	(124,935		)	(110,384		)
	$	3,164,434		$	2,873,508		$	2,528,052

Operating income (loss):
AMER	$	57,780		$	38,637		$	41,924
APAC	208,178			213,935			200,103
EMEA	4,475			1,447			(6,197		)
Corporate and other costs	(128,378		)	(135,736		)	(105,922		)
	$	142,055		$	118,283		$	129,908
Other income (expense):
Interest expense	$	(12,853	)	$	(12,226	)	$	(13,578	)
Interest income	1,949			4,696			5,042
Miscellaneous, net	(5,196		)	(3,143		)	451
Income before income taxes	$	125,955		$	107,610		$	121,823



	2019		2018		2017
Depreciation:
AMER	$	22,531	$	21,224	$	19,694
APAC	16,905		15,954		15,588
EMEA	6,105		6,054		5,467
Corporate	5,344		4,863		4,581
	$	50,885	$	48,095	$	45,330

Capital expenditures:
AMER	$	42,459	$	17,690	$	18,111
APAC	33,454		33,018		13,816
EMEA	5,186		7,923		5,748
Corporate	9,501		4,149		863
	$	90,600	$	62,780	$	38,538


	September 28, 2019		September 29, 2018
Total assets:
AMER	$	751,990	$	645,791
APAC	958,744		937,510
EMEA	209,541		193,797
Corporate and eliminations	80,608		155,544
	$	2,000,883	$	1,932,642

The following information is provided in accordance with the required segment disclosures for fiscal 2019, 2018 and 2017. Net sales were based on the Company’s location providing the product or service (in thousands):



	2019			2018			2017
Net sales:
United States	$	1,197,665		$	1,000,680		$	984,773
Malaysia	1,138,380			1,118,032			940,045
China	418,825			379,977			339,216
Mexico	231,643			218,264			181,573
Romania	195,837			177,111			114,363
United Kingdom	99,825			91,426			70,163
Germany	14,271			12,953			8,303
Elimination of inter-country sales	(132,012		)	(124,935		)	(110,384		)
	$	3,164,434		$	2,873,508		$	2,528,052



	September 28, 2019		September 29, 2018
Long-lived assets:
United States	$	106,757	$	108,694
Malaysia	101,636		89,938
Mexico	73,864		43,078
Romania	31,033		34,316
China	22,378		21,878
United Kingdom	7,344		6,171
Other Foreign	6,751		5,646
Corporate	34,461		31,585
	$	384,224	$	341,306

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 28, 2019 and September 29, 2018 exclude other long-term assets, deferred income tax assets and intangible assets, which totaled $78.4 million and $74.2 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 2019, 2018 and 2017 were as follows:

During fiscal 2019, 2018 and 2017, net sales attributable to GE were reported in all three reportable segments.

As of September 28, 2019, GE represented 10.1% of total accounts receivable. As of September 29, 2018, GE represented 10.9% of total accounts receivable.

General Electric Company ("GE")