Note 9 Business Segment, Geographic and Customer Information

6 Months Ended

Apr. 02, 2016

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: Integrated Manufacturing Solutions (IMS) and Components, Products and Services (CPS). 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 "CPS" and the Company has only one reportable segment - IMS.

The following table presents revenue and a non-GAAP measure of segment gross profit used by management to allocate resources and assess performance of operating segments:

	Three Months Ended						Six Months Ended
	April 2, 2016			March 28, 2015			April 2, 2016			March 28, 2015
	(In thousands)
Gross sales:
IMS	$	1,314,504		$	1,228,682		$	2,553,772		$	2,605,516
CPS	343,337			340,948			688,985			693,285
Intersegment revenue	(46,667		)	(42,100		)	(96,869		)	(100,109		)
Net sales	$	1,611,174		$	1,527,530		$	3,145,888		$	3,198,692
Gross profit:
IMS	$	96,841		$	81,836		$	192,450		$	182,743
CPS	35,447			35,378			65,549			66,945
Total	132,288			117,214			257,999			249,688
Unallocated items (1)	4,424			(1,951		)	2,351			(8,079		)
Total	$	136,712		$	115,263		$	260,350		$	241,609

(1) For purposes of evaluating segment performance, management excludes certain items from its measures of gross profit. These items include stock-based compensation expense, amortization of intangible assets, charges or credits resulting from distressed customers, acquisition-related items and similar items that either occur infrequently or are of a non-operational nature.

Net sales by geographic segment, determined based on the country in which a product is manufactured, was as follows:

	Three Months Ended				Six Months Ended
	April 2, 2016		March 28, 2015		April 2, 2016		March 28, 2015
	(In thousands)
Net sales
United States	$	260,085	$	240,264	$	514,464	$	480,551
Mexico	445,009		482,477		929,979		1,013,931
China	383,967		362,794		751,226		775,601
Other international	522,113		441,995		950,219		928,609
Total	$	1,611,174	$	1,527,530	$	3,145,888	$	3,198,692

Percentage of net sales represented by ten largest customers	53.9	%	49.6	%	52.2	%	49.7	%
Number of customers representing 10% or more of net sales	1		—		1		—