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Concentration of Risk and Segment Data
 3 Months Ended
Nov. 30, 2020
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 three months ended November 30, 2020, the Company’s five largest customers accounted for approximately 50% of its net revenue and 68 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, severance and related charges, distressed customer charges, acquisition and integration charges, impairment on securities, loss on disposal of subsidiaries, settlement of receivables and related charges, impairment of notes receivable and related charges, restructuring of securities loss, goodwill impairment charges, business interruption and impairment charges, net, income (loss) from discontinued operations, gain (loss) on sale of discontinued operations, other expense (excluding certain components of net periodic benefit cost), 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.
As of September 1, 2020, certain customers have been realigned within the Company’s operating segments. As there have been no changes to how the Company’s chief operating decision maker assesses operating performance and allocates resources, the Company’s operating segments which are the reporting segments continue to consist of the DMS and EMS segments. Customers within the automotive and transportation and smart home and appliances industries are now presented within the DMS segment. Prior period disclosures are restated to reflect the realignment.
The following table presents the Company’s revenues disaggregated by segment (in thousands):
Three months ended
November 30, 2020 November 30, 2019
EMS DMS Total EMS DMS Total
Timing of transfer
Point in time $ 1,057,019  $ 2,239,828  $ 3,296,847  $ 1,383,752  $ 1,876,637  $ 3,260,389 
Over time 2,536,028  1,999,654  4,535,682  2,375,186  1,870,123  4,245,309 
Total $ 3,593,047  $ 4,239,482  $ 7,832,529  $ 3,758,938  $ 3,746,760  $ 7,505,698 
The following tables set forth operating segment information (in thousands):
  Three months ended
  November 30, 2020 November 30, 2019
Segment income and reconciliation of income before income tax
EMS $ 121,978  $ 89,354 
DMS 242,959  187,961 
Total segment income $ 364,937  $ 277,315 
Reconciling items:
Amortization of intangibles (11,455) (16,140)
Stock-based compensation expense and related charges (33,541) (30,223)
Restructuring, severance and related charges 1,715  (45,251)
Distressed customer charge —  (14,963)
Acquisition and integration charges (2,113) (16,134)
Other expense (net of periodic benefit cost) (3,671) (12,997)
Interest income 1,881  5,944 
Interest expense (32,346) (44,911)
Income before income tax $ 285,407  $ 102,640 
  November 30, 2020 August 31, 2020
Total assets
EMS $ 4,001,727  $ 3,233,681 
DMS 6,953,659  6,641,764 
Other non-allocated assets 4,314,092  4,521,971 
$ 15,269,478  $ 14,397,416 

As of November 30, 2020, the Company operated in 31 countries worldwide. Sales to unaffiliated customers are based on the Company 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
  November 30, 2020 November 30, 2019
Foreign source revenue 83.6  % 81.8  %