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SEGMENT REPORTING
12 Months Ended
Mar. 31, 2016
Segment Reporting, Measurement Disclosures [Abstract]  
SEGMENT REPORTING
SEGMENT REPORTING
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 his direct staff who oversee certain operations of the business, collectively identified as the CODM or the decision making group.
During the fourth quarter of fiscal year 2015, the Company concluded it has four reportable operating segments: HRS, CTG, IEI, and CEC. The Company assessed that there was no change to its operating segments in fiscal year 2016. 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 to the financial statements 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, certain bad debt charges, other charges (income), net and interest and other, net.
Selected financial information by segment is as follows:
 
Fiscal Year Ended March 31,
 
2016
 
2015
 
2014
 
(In thousands)
Net sales:
 
 
 
 
 
Communications & Enterprise Compute
$
8,841,642

 
$
9,191,211

 
$
9,688,023

Consumer Technologies Group
6,997,526

 
8,940,043

 
9,357,635

Industrial & Emerging Industries
4,680,718

 
4,459,351

 
3,787,838

High Reliability Solutions
3,898,999

 
3,557,311

 
3,275,111

 
$
24,418,885

 
$
26,147,916

 
$
26,108,607

Segment income and reconciliation of income before tax:
 
 
 
 
 
Communications & Enterprise Compute
$
265,076

 
$
257,323

 
$
259,329

Consumer Technologies Group
163,677

 
218,251

 
125,171

Industrial & Emerging Industries
157,588

 
131,956

 
127,085

High Reliability Solutions
294,635

 
227,595

 
221,402

Corporate and Other
(89,219
)
 
(83,988
)
 
(68,475
)
Total income
791,757

 
751,137

 
664,512

Reconciling items:
 
 
 
 
 
Intangible amortization
65,965

 
32,035

 
28,892

Stock-based compensation
77,580

 
50,270

 
40,439

Restructuring charges (2)

 

 
75,311

Bad debt charge (1)
61,006

 

 

Other charges (income), net
47,738

 
(53,233
)
 
57,512

Interest and other, net
84,793

 
51,410

 
61,904

Income before income taxes
$
454,675

 
$
670,655

 
$
400,454


(1)
During fiscal year 2016, the Company incurred a charge of $61.0 million related to SunEdison which had declared bankruptcy. This charge is included in selling, general and administrative expenses in the consolidated statement of operations but is excluded from the measurement of the Company's operating segment's performance. Refer to note 2 for additional information regarding this charge.
(2)
During the fiscal year ended March 31, 2014, the Company recognized restructuring charges of approximately $75.3 million. The costs associated with these restructuring activities include employee severance, other personnel costs, non-cash impairment charges on equipment no longer in use and to be disposed of, and other exit related costs due to facility closures or rationalizations. Refer to note 14 for additional information regarding this charge.
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.
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. During fiscal year 2016, 2015 and 2014, depreciation expense included in the segment's measure of operating performance above is as follows:
 
Fiscal Year Ended March 31,
 
2016
 
2015
 
2014
 
(In thousands)
Depreciation expense
 
 
 
 
 
Communications & Enterprise Compute
$
117,710

 
$
130,311

 
$
131,807

Consumer Technologies Group
123,139

 
203,808

 
160,684

Industrial & Emerging Industries
72,415

 
64,541

 
55,692

High Reliability Solutions
80,935

 
62,831

 
50,296

Corporate and Other
31,530

 
35,334

 
26,359

Total depreciation expense
$
425,729

 
$
496,825

 
$
424,838


Geographic information is as follows:
 
Fiscal Year Ended March 31,
 
2016
 
2015
 
2014
 
(In thousands)
Net sales:
 
 
 
 
 
 
 
 
 
 
 
Asia
$
11,788,992

 
48
%
 
$
12,953,004

 
50
%
 
$
13,714,187

 
53
%
Americas
8,347,514

 
34
%
 
8,897,868

 
34
%
 
8,189,414

 
31
%
Europe
4,282,379

 
18
%
 
4,297,044

 
16
%
 
4,205,006

 
16
%
 
$
24,418,885

 
 
 
$
26,147,916

 
 
 
$
26,108,607

 
 

Revenues are attributable to the country in which the product is manufactured or service is provided.
During fiscal years 2016, 2015 and 2014, net sales generated from Singapore, the principal country of domicile, were approximately $519.1 million, $553.4 million and $504.6 million, respectively.
During fiscal year 2016, China, Mexico, and the United States accounted for approximately 35%, 15%, and 11% of consolidated net sales, respectively. No other country accounted for more than 10% of net sales in fiscal year 2016.
During fiscal year 2015, China, Mexico, and the United States accounted for approximately 37%, 13%, and 11% of consolidated net sales, respectively. No other country accounted for more than 10% of net sales in fiscal year 2015.
During fiscal year 2014, China, Mexico, and the United States accounted for approximately 40%, 14% and 11% of consolidated net sales, respectively. No other country accounted for more than 10% of net sales in fiscal year 2014.
 
As of March 31,
 
2016
 
2015
 
(In thousands)
Property and equipment, net:
 
 
 
 
 
 
 
Asia
$
1,013,317

 
45
%
 
$
997,806

 
48
%
Americas
886,305

 
39
%
 
782,839

 
37
%
Europe
358,011

 
16
%
 
311,522

 
15
%
 
$
2,257,633

 
 
 
$
2,092,167

 
 


As of March 31, 2016 and 2015, property and equipment, net held in Singapore were approximately $13.4 million and $19.3 million, respectively.
As of March 31, 2016, China, Mexico and the United States accounted for approximately 35%, 19% and 15%, respectively, of property and equipment, net. No other country accounted for more than 10% of property and equipment, net as of March 31, 2016.
As of March 31, 2015, China, Mexico and the United States accounted for approximately 37%, 17% and 15%, respectively, of consolidated property and equipment, net. No other country accounted for more than 10% of property and equipment, net as of March 31, 2015.