Note 9 Business Segment, Geographic and Customer Information

6 Months Ended

Apr. 01, 2017

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 measure of segment gross profit used by management to allocate resources and assess performance of operating segments:

	Three Months Ended						Six Months Ended
	April 1, 2017			April 2, 2016			April 1, 2017			April 2, 2016
	(In thousands)
Gross sales:
IMS	$	1,382,437		$	1,314,504		$	2,796,707		$	2,553,772
CPS	349,637			343,337			700,711			688,985
Intersegment revenue	(49,812		)	(46,667		)	(95,179		)	(96,869		)
Net sales	$	1,682,262		$	1,611,174		$	3,402,239		$	3,145,888
Gross profit:
IMS	$	100,644		$	96,841		$	203,281		$	192,450
CPS	35,503			35,447			68,792			65,549
Total	136,147			132,288			272,073			257,999
Unallocated items (1)	(2,937		)	4,424			(6,701		)	2,351
Total	$	133,210		$	136,712		$	265,372		$	260,350

(1) For purposes of evaluating segment performance, management excludes certain items from its measure of gross profit. These items consist of stock-based compensation expense, amortization of intangible assets, charges or credits resulting from distressed customers and acquisition-related items.

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

	Three Months Ended				Six Months Ended
	April 1, 2017		April 2, 2016		April 1, 2017		April 2, 2016
	(In thousands)
Net sales
United States	$	303,514	$	260,085	$	603,390	$	514,464
Mexico	469,572		445,009		943,732		929,979
China	313,740		383,967		635,479		751,226
Malaysia	194,467		117,930		405,658		164,538
Other international	400,969		404,183		813,980		785,681
Total	$	1,682,262	$	1,611,174	$	3,402,239	$	3,145,888

Percentage of net sales represented by ten largest customers	53.5	%	53.9	%	52.6	%	52.2	%
Number of customers representing 10% or more of net sales	2		1		2		1