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, restructuring charges, other charges (income), net and interest and other, net.

Selected financial information by segment is as follows:



	Three-Month Periods Ended						Nine-Month Periods Ended
	December 31, 2017			December 31, 2016			December 31, 2017			December 31, 2016
	(In thousands)
Net sales:
Communications & Enterprise Compute	$	1,979,045		$	2,102,321		$	5,853,435		$	6,400,233
Consumer Technologies Group	2,056,801			1,848,970			5,323,913			4,827,488
Industrial & Emerging Industries	1,491,063			1,140,366			4,336,201			3,672,103
High Reliability Solutions	1,224,643			1,023,342			3,516,695			3,100,513
	$	6,751,552		$	6,114,999		$	19,030,244		$	18,000,337
Segment income and reconciliation of income before tax:
Communications & Enterprise Compute	$	50,206		$	62,109		$	141,541		$	176,460
Consumer Technologies Group	38,768			59,282			87,494			139,230
Industrial & Emerging Industries	61,328			39,681			167,650			127,020
High Reliability Solutions	100,976			82,729			283,552			249,972
Corporate and Other	(31,557		)	(20,695		)	(94,273		)	(82,395		)
Total segment income	219,721			223,106			585,964			610,287
Reconciling items:
Intangible amortization	19,588			18,734			55,865			62,318
Stock-based compensation	20,758			20,781			63,018			67,311
Distressed customers asset impairments (1)	—			—			4,753			92,915
Contingencies and other (2)	—			17,421			43,933			28,960
Other charges (income), net	6,865			3,090			(172,467		)	15,007
Interest and other, net	31,350			22,838			85,780			71,869
Income before income taxes	$	141,160		$	140,242		$	505,082		$	271,907

(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 at the end of the second quarter of fiscal year 2017 was not fully recoverable and recorded a charge of $60.0 million to reduce the carrying costs to market in the nine-month period ended December 31, 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 direct costs. The total charge of $92.9 million is included in cost of sales for the nine-month period ended December 31, 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 $17.4 million and $29.0 million was recognized during the three and nine-month periods ended December 31, 2016, respectively. 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.