SEGMENT REPORTING

9 Months Ended

Dec. 31, 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 impairment 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						Nine-Month Periods Ended
	December 31, 2019			December 31, 2018			December 31, 2019			December 31, 2018
	(In thousands)
Net sales:
High Reliability Solutions	$	1,244,715		$	1,206,352		$	3,611,389		$	3,629,749
Industrial & Emerging Industries	1,988,865			1,658,925			5,411,347			4,671,188
Communications & Enterprise Compute	1,881,411			2,260,228			5,468,857			6,355,311
Consumer Technologies Group	1,346,396			1,797,322			4,233,787			5,328,139
	$	6,461,387		$	6,922,827		$	18,725,380		$	19,984,387
Segment income and reconciliation of income before tax:
High Reliability Solutions	$	82,111		$	95,751		$	252,743		$	278,874
Industrial & Emerging Industries	124,420			78,782			331,231			196,000
Communications & Enterprise Compute	53,086			62,590			110,867			171,463
Consumer Technologies Group	24,654			39,023			81,762			96,792
Corporate and Other	(28,233		)	(19,768		)	(85,563		)	(75,513		)
Total segment income	256,038			256,378			691,040			667,616
Reconciling items:
Intangible amortization	15,598			20,308			48,903			57,059
Stock-based compensation	19,215			21,027			53,332			61,061
Customer related asset impairments (1)	3,754			50,153			95,210			67,517
Restructuring charges (Note 17)	14,616			65,843			199,123			100,433
New revenue standard adoption impact (Note 4)	—			—			—			9,291
Legal and other (2)	6,864			4,994			28,012			25,363
Interest and other, net	36,207			54,087			135,650			136,889
Other charges (income), net (Note 9)	14,395			71,879			17,005			(8,515		)
Income (loss) before income taxes	$	145,389		$	(31,913	)	$	113,805		$	218,518

(1)

Customer related asset impairments for the three-month and nine-month periods ended December 31, 2019 and December 31, 2018 primarily relate to non-cash impairments of certain property and equipment for customers we have disengaged or are in the process of disengaging, additional provision for doubtful accounts receivable, charges for other asset impairments, and reserves for excess and obsolete inventory for certain customers experiencing financial difficulties and/or related to inventory that will not be recovered due to significant reductions in future customer demand as the Company reduces its exposure to certain higher volatility businesses.


(2)	Legal and other during the three-month and nine-month periods ended December 31, 2019 primarily consists of direct and incremental costs associated with certain wind-down activities related to the disengagement of a certain customer primarily in China and India.

Legal and other during the three and nine-month periods ended December 31, 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. In addition, for the nine-month period ended December 31, 2018, Legal and other also includes certain charges of the China based Multek operations 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.

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 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.