SEGMENT REPORTING

12 Months Ended

Mar. 31, 2020

Segment Reporting, Measurement Disclosures [Abstract]

Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the Chief Operating Decision Maker ("CODM"), or a decision making group, in deciding how to allocate resources and in assessing performance. Resource allocation decisions and the Company's performance are assessed by its Chief Executive Officer ("CEO"), with support from certain direct staff who oversee operations of the Company's businesses, collectively identified as the CODM or the decision making group.

The Company has four reportable segments as of March 31, 2020: HRS, IEI, CEC and CTG. These segments represent components of the Company for which separate financial information is available that is utilized on a regular basis by the CODM. 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 assets impairments, 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.



	Fiscal Year Ended March 31,
	2020			2019			2018
	(In thousands)
Net sales:
High Reliability Solutions	$	4,742,424		$	4,828,950		$	4,769,464
Industrial & Emerging Industries	7,277,350			6,182,637			5,972,496
Communications & Enterprise Compute	6,985,669			8,336,330			7,729,350
Consumer Technologies Group	5,204,427			6,862,594			6,969,821
	$	24,209,870		$	26,210,511		$	25,441,131
Segment income and reconciliation of income before tax:
High Reliability Solutions	$	316,007		$	371,003		$	380,878
Industrial & Emerging Industries	465,707			269,172			235,422
Communications & Enterprise Compute	142,347			214,723			186,335
Consumer Technologies Group	87,518			121,336			111,629
Corporate and Other	(113,548		)	(104,471		)	(127,810		)
Total income	898,031			871,763			786,454
Reconciling items:
Intangible amortization	64,106			74,396			78,640
Stock-based compensation	71,546			76,032			85,244
Customer related asset impairments (1)	105,940			87,093			6,251
Restructuring charges (Note 15)	216,407			113,313			90,691
New revenue standard adoption impact (Note 4)	—			9,291			—
Legal and other (2)	26,270			35,644			51,631
Interest and other, net	163,727			183,454			122,823
Other charges (income), net (Note 16)	91,550			110,414			(169,719		)
Income before income taxes	$	158,485		$	182,126		$	520,893

(1)

Customer related asset impairments for fiscal year 2020, 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.

Customer related asset impairments for fiscal year 2019, primarily relate to provision for doubtful accounts receivable, inventory and impairment of other assets for certain customers experiencing significant financial difficulties and/or the Company is disengaging.

(2)

Legal and other during fiscal year 2020, 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, offset by certain gains resulting from the recognition of prior year expenses paid to the government now considered probable of recovery and reasonably estimable due to a favorable tax ruling.

Legal and other during fiscal year 2019, 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, Legal and other also includes certain charges related to the China based Multek operations that was divested in the second quarter of fiscal year 2019.

During fiscal year 2018, the Company incurred charges in connection with certain legal matters, for loss contingencies where it believed that losses were probable and estimable. Additionally, the Company incurred various other charges predominately related to damages incurred from a typhoon that impacted a China facility, as well as certain assets impairments during fiscal year 2018.

Corporate and other primarily includes corporate services costs that are not included in the CODM's 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 in 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.

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 as described above. During fiscal year 2020, 2019 and 2018, depreciation expense included in the segments' measure of operating performance above is as follows. Historical information has been recast to reflect realignment of customers and/or products between segments:



	Fiscal Year Ended March 31,
	2020		2019		2018
	(In thousands)
Depreciation expense:
High Reliability Solutions	$	103,266	$	96,854	$	97,114
Industrial & Emerging Industries	85,273		92,606		75,366
Communication & Enterprise Compute	89,286		103,162		118,150
Consumer Technologies Group	112,813		104,298		110,276
Corporate and Other	31,769		36,493		33,526
Total depreciation expense	$	422,407	$	433,413	$	434,432

Geographic information of net sales is as follows:



	Fiscal Year Ended March 31,
	2020				2019				2018
	(In thousands)
Net sales:
Asia	$	9,362,089	39	%	$	11,469,617	44	%	$	11,210,793	44	%
Americas	10,065,568		42	%	9,893,072		38	%	9,880,626		39	%
Europe	4,782,213		19	%	4,847,822		18	%	4,349,712		17	%
	$	24,209,870			$	26,210,511			$	25,441,131

Revenues are attributable to the country in which the product is manufactured, or service is provided.

During fiscal years 2020, 2019 and 2018, net sales generated from Singapore, the principal country of domicile, were approximately $574.6 million, $642.7 million and $686.9 million, respectively.

The following table summarizes the countries that accounted for more than 10% of net sales in fiscal year 2020, 2019, and 2018:



	Fiscal Year Ended March 31,
	2020				2019				2018
	(In thousands)
Net sales:
China	$	5,664,742	23	%	$	6,648,549	25	%	$	7,449,591	29	%
Mexico	4,449,266		18	%	4,538,720		17	%	4,361,814		17	%
U.S.	3,719,095		15	%	3,106,222		12	%	2,860,242		11	%
Brazil	1,831,214		8	%	2,181,025		8	%	2,578,466		10	%

No other country accounted for more than 10% of net sales for the fiscal periods presented in the table above.

Geographic information of property and equipment, net is as follows:



	As of March 31,
	2020				2019
	(In thousands)
Property and equipment, net:
Americas	$	1,037,018	47	%	$	1,003,708	43	%
Asia	737,551		33	%	903,288		39	%
Europe	441,422		20	%	429,217		18	%
	$	2,215,991			$	2,336,213

As of March 31, 2020 and 2019, property and equipment, net held in Singapore were approximately $8.6 million and $12.3 million, respectively.

The following table summarizes the countries that accounted for more than 10% of property and equipment, net in fiscal year 2020 and 2019:



	Fiscal Year Ended March 31,
	2020				2019
	(In thousands)
Property and equipment, net:
Mexico	$	555,077	25	%	$	537,396	23	%
China	396,179		18	%	523,124		22	%
U.S.	377,800		17	%	361,098		15	%

No other country accounted for more than 10% of property and equipment, net for the fiscal periods presented in the table above.