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, distressed customer charges, legal and other, the new revenue standard adoption impact, restructuring charges, other income, net and interest and other, net.

Selected financial information by segment is in the table below. For the three-month period ended June 29, 2018, we recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings, as further described in note 1 to the condensed consolidated financial statements. The comparative information for the three-month period ended June 30, 2017 has not been restated and continues to be reported under the accounting standards in effect at the time:



	Three-Month Periods Ended
	June 29, 2018			June 30, 2017
	(In thousands)
Net sales:
Communications & Enterprise Compute	$	1,954,286		$	1,973,333
Consumer Technologies Group	1,807,934			1,511,969
Industrial & Emerging Industries	1,446,311			1,390,599
High Reliability Solutions	1,215,425			1,132,371
	$	6,423,956		$	6,008,272
Segment income and reconciliation of income before tax:
Communications & Enterprise Compute	$	46,017		$	48,603
Consumer Technologies Group	26,557			18,004
Industrial & Emerging Industries	51,361			55,376
High Reliability Solutions	93,534			90,212
Corporate and Other	(29,761		)	(34,278		)
Total segment income	187,708			177,917
Reconciling items:
Intangible amortization	18,517			19,901
Stock-based compensation	20,953			21,796
Distressed customers asset impairments (1)	17,364			—
Restructuring charges	8,817			—
New revenue standard adoption impact (Note 1 & Note 3)	9,291			—
Legal and other (2)	16,311			—
Other income, net (Note 7)	(86,924		)	(36,165		)
Interest and other, net	41,742			26,876
Income before income taxes	$	141,637		$	145,509


1.	Distressed customers asset impairments for the three-month period ended June 29, 2018 relate to additional provision for doubtful accounts receivable, inventory and other assets for certain customers experiencing significant financial difficulties.


2.	Legal and other during the three-month period ended June 29, 2018 primarily consists of costs incurred relating to the independent investigation undertaken by the Audit Committee of the Company’s Board of Directors which was completed in June 2018 and certain charges of the China based Multek operation that was divested in the second quarter of fiscal year 2019.

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.