XML 24 R12.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Concentration of Risk and Segment Data | 6 Months Ended
--- | ---
Feb. 28, 2017
Concentration of Risk and Segment Data [Abstract] |
Concentration of Risk and Segment Data | 5. Concentration of Risk and Segment Data a. Concentration of Risk Sales of the Company’s products are concentrated among specific customers. During the six months ended February 28, 2017, the Company’s five largest custom ers accounted for approximately 48% of its net revenue and 76 customers accounted for approximately 90% of its net revenue. Sales to these customers were reported in the Electronics Manufacturing Services (“EMS”) and Diversified Manufacturing Services (“DMS”) operating segments. The Company procures components from a broad group of suppliers. Almost all of the products manufactured by the Company require one or more components that are available from only a singl e source. Production levels for a portion of the DMS segment are subject to seasonal influences. The Company may realize greater net revenue during its first fiscal quarter due to higher demand for consumer related products manufactured in the DMS segment during the holiday selling season. Therefore, quarterly results should not be relied upon as necessarily being indicative of results for the entire fiscal year. b. Segment Data Operating segments are defined as components of an enterprise that engage in business activities from which they may earn revenues and incur expenses; for which separate financial information is available; and whose operating results are regularly reviewed by the chief operating decision maker to assess the performance of the individual segment and make decisions about resources to be allocated to the segment. The Company derives its revenue from providing comprehensive electronics design, production and product management services. The chief operating decision maker evaluates performance and allocates resources on a segment basis. The Company’s operating segments consist of two segments – EMS and DMS, which are also the Company’s reportab le segments. The EMS segment is focused around leveraging IT, supply chain design and engineering, technologies largely centered on core electronics, sharing of the Company’s large scale manufacturing infrastructure and the ability to serve a broad range o f end markets. The EMS segment includes customers primarily in the automotive and transportation, capital equipment, computing and storage, digital home, industrial and energy, networking and telecommunications, point of sale and printing industries. The D MS segment is focused on providing engineering solutions and a focus on material sciences and technologies. The DMS segment includes customers primarily in the consumer lifestyles and wearable technologies, defense and aerospace, emerging growth, healthcar e, mobility and packaging industries. Net revenue for the operating segments is attributed to the segment in which the service is performed. An operating segment’s performance is evaluated based on its pre-tax operating contribution, or segment income. Seg ment income is defined as net revenue less cost of revenue, segment selling, general and administrative expenses, segment research and development expenses and an allocation of corporate manufacturing expenses and selling, general and administrative expens es, and does not include amortization of intangibles, stock-based compensation expense and related charges, restructuring and related charges, distressed customer charges, acquisition costs and certain purchase accounting adjustments, loss on disposal of s ubsidiaries, settlement of receivables and related charges, impairment of notes receivable and related charges, goodwill impairment charges, income (loss) from discontinued operations, gain (loss) on sale of discontinued operations, other expense, interest income, interest expense, income tax expense or adjustment for net income (loss) attributable to noncontrolling interests. Total segment assets are defined as accounts receivable, inventories, net customer-related property, plant and equipment, intangible assets net of accumulated amortization and goodwill. All other non-segment assets are reviewed on a global basis by management. Transactions between operating segments are generally recorded at amounts that approximate those at which we would transact wit h third parties.
| The following tables set forth operating segment information (in thousands):
|  |  |  | Three months ended |  | Six months ended
|  |  |  | February 28, |  | February 29, |  | February 28, |  | February 29,
|  |  |  | 2017 |  | 2016 |  | 2017 |  | 2016
|  | Net revenue |  |  |  |  |  |  |  |  |  |  |
|  | EMS | $ | 2,682,811 |  | $ | 2,657,262 |  | $ | 5,386,100 |  | $ | 5,381,676
|  | DMS |  | 1,762,826 |  |  | 1,746,332 |  |  | 4,164,435 |  |  | 4,229,895
|  |  | $ | 4,445,637 |  | $ | 4,403,594 |  | $ | 9,550,535 |  | $ | 9,611,571
|  | Segment income and reconciliation of income
|  |  | before income tax |  |  |  |  |  |  |  |  |  |  |
|  | EMS | $ | 98,089 |  | $ | 84,692 |  | $ | 187,635 |  | $ | 167,957
|  | DMS |  | 54,105 |  |  | 101,639 |  |  | 174,099 |  |  | 266,863
|  |  | Total segment income | $ | 152,194 |  | $ | 186,331 |  | $ | 361,734 |  | $ | 434,820
|  | Reconciling items: |  |  |  |  |  |  |  |  |  |  |
|  |  | Amortization of intangibles |  | 8,766 |  |  | 8,599 |  |  | 17,088 |  |  | 16,439
|  |  | Stock-based compensation expense and related |  |  |  |  |  |  |  |  |  |  |
|  |  |  | charges |  | 15,318 |  |  | 20,268 |  |  | 15,027 |  |  | 45,060
|  |  | Restructuring and related charges |  | 44,927 |  |  | 2,535 |  |  | 80,829 |  |  | 3,888
|  |  | Other expense |  | 3,371 |  |  | 2,167 |  |  | 8,051 |  |  | 3,933
|  |  | Interest income |  | (2,289) |  |  | (2,287) |  |  | (4,744) |  |  | (4,351)
|  |  | Interest expense |  | 33,800 |  |  | 34,262 |  |  | 66,644 |  |  | 67,297
|  | Income before income tax | $ | 48,301 |  | $ | 120,787 |  | $ | 178,839 |  | $ | 302,554
|  | February 28, 2017 |  | August 31, 2016 |
| Total assets |  |  |  |  |  |
| EMS | $ | 2,797,581 |  | $ | 2,615,237 |
| DMS |  | 4,773,662 |  |  | 5,012,798 |
| Other non-allocated assets |  | 2,443,585 |  |  | 2,694,642 |
|  | $ | 10,014,828 |  | $ | 10,322,677 |
As of February 28, 2017, the Company operated in 28 countries worldwide. Sales to unaffiliated customers are based on the Company’s location that maintains the customer relationship and transacts the external sale. Total foreign net revenue represented 90.9% and 91.7% of net revenue during the three months and six months ended February 28, 2017, respectively, compared to 90.3% and 91.3% of net revenue during the three months and six months ended February 29, 2016, respectively.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration