SEGMENT REPORTING

The Company has four reportable segments: HRS, CTG, IEI, and CEC. These segments are determined based on several factors, including the nature of products and services, the nature of production processes, customer base, delivery channels and similar economic characteristics. Refer to note 1 for a description of the various product categories manufactured under each of these segments.

An operating segment's performance is evaluated based on its pre-tax operating contribution, or segment income. Segment income is defined as net sales less cost of sales, and segment selling, general and administrative expenses, and does not include amortization of intangibles, stock-based compensation, other charges (income), net and interest and other, net.

Selected financial information by segment is as follows:



	Three-Month Periods Ended						Six-Month Periods Ended
	September 29, 2017			September 30, 2016			September 29, 2017			September 30, 2016
	(In thousands)
Net sales:
Communications & Enterprise Compute	$	1,901,057		$	2,101,922		$	3,874,390		$	4,297,912
Consumer Technologies Group	1,755,143			1,664,736			3,267,112			2,978,518
Industrial & Emerging Industries	1,454,539			1,242,722			2,845,138			2,531,737
High Reliability Solutions	1,159,681			999,145			2,292,052			2,077,171
	$	6,270,420		$	6,008,525		$	12,278,692		$	11,885,338
Segment income and reconciliation of income before tax:
Communications & Enterprise Compute	$	42,733		$	52,453		$	91,335		$	114,352
Consumer Technologies Group	30,722			55,314			48,726			79,948
Industrial & Emerging Industries	50,945			37,363			106,322			87,340
High Reliability Solutions	92,364			78,707			182,576			167,243
Corporate and Other	(28,438		)	(26,902		)	(62,716		)	(61,702		)
Total segment income	188,326			196,935			366,243			387,181
Reconciling items:
Intangible amortization	16,376			21,986			36,277			43,584
Stock-based compensation	20,464			22,733			42,260			46,530
Distressed customers assets impairment (1)	4,753			92,915			4,753			92,915
Contingencies and other (2)	43,933			11,539			43,933			11,539
Other charges (income), net	(143,167		)	8,388			(179,332		)	11,917
Interest and other, net	27,554			24,632			54,430			49,031
Income before income taxes	$	218,413		$	14,742		$	363,922		$	131,665

(1) During the fourth quarter of fiscal year 2016, the Company accepted return of previously shipped inventory from a former customer, SunEdison, of approximately $90 million. On April 21, 2016, SunEdison filed a petition for reorganization under bankruptcy law, and as a result, the Company recognized a bad debt reserve of $61 million as of March 31, 2016, associated with its outstanding SunEdison receivables.

During the second quarter of fiscal year 2017, prices for solar panel modules declined significantly. The Company determined that certain solar panel inventory on hand as of September 30, 2016 was not fully recoverable and recorded a charge of $60.0 million to reduce the carrying costs to market in the three and six-month periods ended September 30, 2016. The Company also recognized a $16.0 million impairment charge for solar module equipment and $16.9 million primarily related to negative margin sales and other associated solar panel direct costs incurred during the same periods. The total charge of $92.9 million is included in cost of sales for the three and six-month periods ended September 30, 2016 but is excluded from segment results above.

(2) During the second quarter of fiscal year 2018, the Company incurred charges in connection with the matters described in note 13, for certain loss contingencies where it believes that losses are probable and estimable. Additionally, the Company incurred various other charges predominately related to damages incurred from a typhoon that impacted one of its China facilities.

During fiscal year 2017, the Company initiated a plan to rationalize the current footprint at existing sites including corporate SG&A functions and to continue to shift the talent base in support of its Sketch-to-Scale^tm initiatives. As part of this plan, approximately $11.5 million was recognized in the quarter ended September 30, 2016. The plan was finalized and completed during fiscal year 2017.

Corporate and other primarily includes corporate services costs that are not included in the Chief Operating Decision Maker's ("CODM") assessment of the performance of each of the identified reporting segments.

Property and equipment on a segment basis is not disclosed as it is not separately identified and is not internally reported by segment to the Company's CODM.