Reportable Segments, Geographic Information and Major Customers

12 Months Ended

Oct. 01, 2022

Segment Reporting [Abstract]

Reportable Segments, Geographic Information and Major Customers

Reportable Segments, Geographic Information and Major CustomersReportable 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 $2.0 million, $3.3 million and $6.0 million of restructuring and impairment costs in fiscal 2022, 2021 and 2020, respectively. 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 2022, 2021 and 2020 is as follows (in thousands):

	2022		2021		2020
Net sales:
AMER	$	1,310,687	$	1,317,404	$	1,327,849
APAC	2,300,640		1,850,603		1,824,831
EMEA	316,315		312,669		349,102
Elimination of inter-segment sales	(116,274)		(111,811)		(111,388)
	$	3,811,368	$	3,368,865	$	3,390,394
Operating income (loss):
AMER	$	44,741	$	62,338	$	38,126
APAC	267,253		238,800		246,636
EMEA	8,018		(895)		1,492
Corporate and other costs	(141,827)		(123,975)		(132,882)
	$	178,185	$	176,268	$	153,372
Other income (expense):
Interest expense	$	(15,858)	$	(14,253)	$	(16,162)
Interest income	1,305		1,372		1,878
Miscellaneous, net	(5,329)		(2,976)		(3,691)
Income before income taxes	$	158,303	$	160,411	$	135,397

	2022		2021		2020
Depreciation:
AMER	$	23,482	$	24,325	$	24,217
APAC	23,547		19,924		17,912
EMEA	5,861		7,189		6,938
Corporate	8,613		8,390		6,437
	$	61,503	$	59,828	$	55,504
Capital expenditures:
AMER	$	20,024	$	16,114	$	13,361
APAC	73,758		31,774		18,902
EMEA	2,617		2,504		8,577
Corporate	5,213		6,707		9,248
	$	101,612	$	57,099	$	50,088
	October 1, 2022		October 2, 2021
Total assets:
AMER	$	1,150,605	$	789,385
APAC	1,807,542		1,283,124
EMEA	302,901		275,122
Corporate and eliminations	132,177		114,262
	$	3,393,225	$	2,461,893

The following information is provided in accordance with the required segment disclosures for fiscal 2022, 2021 and 2020. Net sales were based on the Company’s location providing the product or service (in thousands):

	2022		2021		2020
Net sales:
United States	$	869,144	$	914,360	$	989,888
Malaysia	1,846,086		1,495,049		1,432,154
China	453,591		355,554		392,677
Mexico	441,543		403,044		337,961
Romania	217,052		202,649		217,295
United Kingdom	91,137		99,365		118,463
Germany	8,126		10,655		13,344
Thailand	963		—		—
Elimination of inter-country sales	(116,274)		(111,811)		(111,388)
	$	3,811,368	$	3,368,865	$	3,390,394

	October 1, 2022		October 2, 2021
Long-lived assets:
United States	$	105,272	$	106,577
Malaysia	152,317		139,614
Mexico	77,947		75,774
Thailand	56,115		19,394
China	37,608		35,969
Romania	23,894		29,474
United Kingdom	6,842		9,073
Other Foreign	2,899		3,840
Corporate	46,945		47,466
	$	509,839	$	467,181

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 1, 2022 and October 2, 2021 exclude other long-term assets, deferred income tax assets and intangible assets, which totaled $67.3 million and $63.8 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 2022, 2021 and 2020 were as follows:

	2022	2021	2020
General Electric Company ("GE")	12.9%	11.2%	11.7%

During fiscal 2022, 2021 and 2020, net sales attributable to GE were reported in all three reportable segments.

GE represented 16.2% and 12.1% of total accounts receivable as of October 1, 2022 and October 2, 2021, respectively. Medtronic, Inc. represented 10.2% and 3.9% of total accounts receivable as of October 1, 2022 and October 2, 2021, respectively.