Note 16 Business Segment, Geographic and Customer Information

12 Months Ended

Sep. 28, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Business Segment, Geographic and Customer Information

ASC Topic 280, Segment Reporting, establishes standards for reporting information about operating segments, products and services, geographic areas of operations and major customers. Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker or decision making group in deciding how to allocate resources and in assessing performance.

The Company's operations are managed as two businesses:

1) Integrated Manufacturing Solutions (IMS). IMS is a reportable segment consisting of printed circuit board assembly and test, final system assembly and test, and direct order fulfillment.

2) Components, Products and Services (CPS). Components include interconnect systems (printed circuit board fabrication, backplane and cable assemblies) and mechanical systems (enclosures, precision machining and plastic injection molding); Products include memory and solid state drive products from Viking Technology, defense and aerospace products from SCI Technology, storage products from Newisys and optical and RF (Radio Frequency) modules; and Services include design, engineering, logistics and repair services.

The Company evaluated its operating segments to determine whether they can be aggregated into reportable segments. Factors considered in this evaluation were similarity regarding economic characteristics, products, production processes, type or classes of customers, distribution methods and regulatory environments. Based on this evaluation, the Company determined that it has only one reportable segment - IMS, which generated 80% of the Company's total revenue in 2013. The Company's CPS business consists of multiple operating segments which do not meet the quantitative threshold for being presented as reportable segments. Therefore, financial information for these operating segments is presented in a single category entitled “Components, Products and Services (CPS)”.

The accounting policies for each segment are the same as those disclosed by the Company for its consolidated financial statements. Intersegment sales consist primarily of sales of components to IMS. Effective in the fourth quarter of 2013, the Optical and RF modules group was moved to CPS (previously included in IMS). The Optical and RF modules group offers customers engineering solutions and product designs, including joint product design services with customers. As a result, this group creates intellectual property that can be used in proprietary designs and products similar to the other product businesses in CPS. Accordingly, the results presented below reflect the change in segment reporting for all periods presented to conform to the current period segment reporting structure. The change in segment reporting does not affect the Company’s previously reported consolidated financial statements.

The Company's chief operating decision maker is the Chief Executive Officer and Chief Financial Officer and they allocate resources and assess performance of operating segments based on a non-GAAP measure of revenue and gross profit that excludes items not directly related to the Company's ongoing business operations. These items are typically either non-recurring or non-cash in nature.

The following table presents information for the following years:

	Year Ended
	September 28, 2013			September 29, 2012			October 1, 2011
	(In thousands)
Gross sales:
IMS	$	4,766,670		$	4,968,983		$	5,337,488
CPS	1,335,510			1,265,855			1,418,013
Intersegment revenue	(185,056		)	(141,504		)	(153,090		)
Net Sales	$	5,917,124		$	6,093,334		$	6,602,411
Gross Profit:
IMS	$	291,664		$	329,267		$	376,393
CPS	144,725			111,448			136,224
Total	436,389			440,715			512,617
Unallocated items (1)	(9,572		)	(4,933		)	(2,266		)
Total	$	426,817		$	435,782		$	510,351
Depreciation and amortization:
IMS	$	54,531		$	54,711		$	56,827
CPS	32,802			35,641			34,622
Total	87,333			90,352			91,449
Unallocated corporate items (2)	8,688			9,125			13,122
Total	$	96,021		$	99,477		$	104,571
Capital expenditures:
IMS	$	44,080		$	39,962		$	57,478
CPS	25,542			40,150			36,844
Total	69,622			80,112			94,322
Unallocated corporate items (2)	3,447			1,787			3,751
Total	$	73,069		$	81,899		$	98,073

(1) Represents amounts associated with items that management excludes from its measure of gross profit. These items include stock-based compensation expense, amortization of intangible assets, charges or credits resulting from distressed customers and similar items that either occur infrequently or are of a non-operational nature.

(2) Primarily related to selling, general and administration functions.

	As of
	September 28, 2013		September 29, 2012
	(In thousands)
Long-lived assets (including assets held for sale):
IMS	$	287,907	$	304,442
CPS	204,905		220,789
Total	492,812		525,231
Unallocated corporate items (1)	51,722		54,346
Total	$	544,534	$	579,577

(1) Primarily related to selling, general and administration functions.

Information by geographic segment, determined based on the country in which a product is manufactured or a service is provided, was as follows:

	Year Ended
	September 28, 2013			September 29, 2012			October 1, 2011
	(In thousands)
Net sales:
Domestic	$	1,074,529		$	1,106,446		$	1,199,077
Mexico	1,433,799			1,296,690			1,273,583
China	1,501,632			1,667,095			1,792,933
Other international	1,907,164			2,023,103			2,336,818
Total	$	5,917,124		$	6,093,334		$	6,602,411
Percentage of net sales represented by ten largest customers	50.3		%	49.7		%	49.9		%
Number of customers representing 10 % or more of net sales	1			1			1

	As of
	September 28, 2013		September 29, 2012
	(In thousands)
Long-lived assets (including assets held for sale):
Domestic	$	147,773	$	163,443
Mexico	125,552		119,032
China	88,160		89,175
Other international	183,049		207,927
Total	$	544,534	$	579,577