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Concentration of Risk and Segment Data | 9 Months Ended
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May 31, 2019
Segment Reporting [Abstract] |
Concentration of Risk and Segment Data | Concentration of Risk and Segment Data Concentration of Risk Sales of the Company’s products are concentrated among specific customers. During the nine months ended May 31, 2019, the Company’s five largest customers accounted for approximately 43% of its net revenue and 82 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. Some of the products manufactured by the Company require one or more components that are available from only a single source. Segment Data 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. Segment 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 expenses. Segment income does not include amortization of intangibles, stock-based compensation expense and related charges, restructuring and related charges, distressed customer charges, acquisition and integration charges, loss on disposal of subsidiaries, settlement of receivables and related charges, impairment of notes receivable and related charges, goodwill impairment charges, business interruption and impairment charges, net, 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. Transactions between operating segments are generally recorded at amounts that approximate those at which we would transact with third parties. The following table sets forth operating segment information (in thousands):
| Three months ended |  | Nine months ended
| May 31, 2019 |  | May 31, 2018 |  | May 31, 2019 |  | May 31, 2018
Net revenue |  |  |  |  |  |  |
EMS | $ | 3,988,489 |  |  | $ | 3,161,626 |  |  | $ | 11,296,319 |  |  | $ | 8,894,174 |
DMS | 2,147,113 |  |  | 2,275,326 |  |  | 7,412,548 |  |  | 7,429,411 |
| $ | 6,135,602 |  |  | $ | 5,436,952 |  |  | $ | 18,708,867 |  |  | $ | 16,323,585 |
Segment income and reconciliation of income before income tax |  |  |  |  |  |  |
EMS | $ | 130,869 |  |  | $ | 121,563 |  |  | $ | 303,618 |  |  | $ | 302,556 |
DMS | 54,896 |  |  | 28,499 |  |  | 326,866 |  |  | 253,322 |
Total segment income | $ | 185,765 |  |  | $ | 150,062 |  |  | $ | 630,484 |  |  | $ | 555,878 |
Reconciling items: |  |  |  |  |  |  |
Amortization of intangibles | (7,610 | ) |  | (10,040 | ) |  | (23,033 | ) |  | (29,909 | )
Stock-based compensation expense and related charges | (14,506 | ) |  | (15,038 | ) |  | (47,452 | ) |  | (82,822 | )
Restructuring and related charges | (9,340 | ) |  | (12,647 | ) |  | (16,182 | ) |  | (29,462 | )
Distressed customer charge | — |  |  | — |  |  | — |  |  | (14,706 | )
Business interruption and impairment charges, net(1) | — |  |  | 634 |  |  | 2,860 |  |  | (10,722 | )
Acquisition and integration charges | (13,391 | ) |  | — |  |  | (35,066 | ) |  | — |
Other expense | (14,084 | ) |  | (10,139 | ) |  | (39,391 | ) |  | (26,506 | )
Interest income | 6,758 |  |  | 4,499 |  |  | 15,897 |  |  | 13,323 |
Interest expense | (50,514 | ) |  | (36,178 | ) |  | (139,326 | ) |  | (110,220 | )
Income before income tax | $ | 83,078 |  |  | $ | 71,153 |  |  | $ | 348,791 |  |  | $ | 264,854 |
(1) | Charges, net of insurance proceeds of $5.0 million for the three months ended May 31, 2018, and $2.9 million and $21.4 million for the nine months ended May 31, 2019 and 2018, respectively, relate to business interruption and asset impairment costs associated with damage from Hurricane Maria, which impacted our operations in Cayey, Puerto Rico.
As of May 31, 2019, the Company operated in 29 countries worldwide. Sales to unaffiliated customers are based on the Company’s location that maintains the customer relationship and transacts the external sale. The following table sets forth, for the periods indicated, foreign source revenue expressed as a percentage of net revenue:
| Three months ended |  | Nine months ended
| May 31, 2019 |  | May 31, 2018 |  | May 31, 2019 |  | May 31, 2018
Foreign source revenue | 86.5 | % |  | 91.2 | % |  | 89.2 | % |  | 91.8 | %

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- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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