SEGMENT REPORTING

3 Months Ended

Jun. 28, 2019

The Company has four reportable segments: HRS, IEI, CEC and CTG. 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, customer related asset impairments charges, restructuring charges, the new revenue standard adoption impact, legal and other, interest and other, net and other charges (income), net.

Selected financial information by segment is in the table below.



	Three-Month Periods Ended
	June 28, 2019			June 29, 2018
	(In thousands)
Net sales:
High Reliability Solutions	$	1,178,043		$	1,215,425
Industrial & Emerging Industries	1,636,914			1,446,311
Communications & Enterprise Compute	1,858,849			1,954,286
Consumer Technologies Group	1,502,133			1,782,934
	$	6,175,939		$	6,398,956
Segment income and reconciliation of income before tax:
High Reliability Solutions	$	87,232		$	93,534
Industrial & Emerging Industries	95,457			51,361
Communications & Enterprise Compute	26,147			46,017
Consumer Technologies Group	30,116			26,557
Corporate and Other	(31,092		)	(29,761		)
Total segment income	207,860			187,708
Reconciling items:
Intangible amortization	17,082			18,517
Stock-based compensation	15,227			20,953
Customer related asset impairments (1)	483			17,364
Restructuring charges (Note 17)	56,192			8,817
New revenue standard adoption impact (Note 4)	—			9,291
Legal and other (2)	1,610			16,311
Interest and other, net	51,694			41,742
Other charges (income), net (Note 9)	1,463			(86,924		)
Income (loss) before income taxes	$	64,109		$	141,637


(1)	Customer related asset impairments for the three-month period ended June 29, 2018 primarily relate to additional provision for doubtful accounts receivable, and excess and obsolete inventory for certain customers experiencing significant financial difficulties and/or the Company is disengaging from.


(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 not directly related to ongoing or core business.

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.

The Company provides an overall platform of assets and services, which the segments utilize for the benefit of their various customers. The shared assets and services are contained within the Company's global manufacturing and design operations and include manufacturing and design facilities. Most of the underlying manufacturing and design assets are co-mingled on the operating campuses and are compatible to operate across segments and highly interchangeable throughout the platform. Given the highly interchangeable nature of the assets, they are not separately identified by segments nor reported by segment to the Company's CODM.