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Concentration of Risk and Segment Data | 6 Months Ended
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Feb. 28, 2021
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 six months ended February 28, 2021, the Company’s five largest customers accounted for approximately 49% of its net revenue and 75 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
| February 28, 2021 |  | February 29, 2020
| EMS |  | DMS |  | Total |  | EMS |  | DMS |  | Total
Timing of transfer |  |  |  |  |  |  |  |  |  |  |
Point in time | $ | 819,139 |  |  | $ | 1,782,089 |  |  | $ | 2,601,228 |  |  | $ | 980,581 |  |  | $ | 1,147,870 |  |  | $ | 2,128,451 |
Over time | 2,360,343 |  |  | 1,866,975 |  |  | 4,227,318 |  |  | 2,240,232 |  |  | 1,756,400 |  |  | 3,996,632 |
Total | $ | 3,179,482 |  |  | $ | 3,649,064 |  |  | $ | 6,828,546 |  |  | $ | 3,220,813 |  |  | $ | 2,904,270 |  |  | $ | 6,125,083 |
| Six months ended
| February 28, 2021 |  | February 29, 2020
| EMS |  | DMS |  | Total |  | EMS |  | DMS |  | Total
Timing of transfer |  |  |  |  |  |  |  |  |  |  |
Point in time | $ | 1,876,158 |  |  | $ | 4,021,917 |  |  | $ | 5,898,075 |  |  | $ | 2,364,333 |  |  | $ | 3,024,507 |  |  | $ | 5,388,840 |
Over time | 4,896,371 |  |  | 3,866,629 |  |  | 8,763,000 |  |  | 4,615,418 |  |  | 3,626,523 |  |  | 8,241,941 |
Total | $ | 6,772,529 |  |  | $ | 7,888,546 |  |  | $ | 14,661,075 |  |  | $ | 6,979,751 |  |  | $ | 6,651,030 |  |  | $ | 13,630,781 |
The following tables set forth operating segment information (in thousands):
| Three months ended |  | Six months ended
| February 28, 2021 |  | February 29, 2020 |  | February 28, 2021 |  | February 29, 2020
Segment income and reconciliation of income before income tax |  |  |  |  |  |  |
EMS | $ | 98,117 |  |  | $ | 72,501 |  |  | $ | 220,095 |  |  | $ | 161,855 |
DMS | 186,489 |  |  | 86,947 |  |  | 429,448 |  |  | 274,908 |
Total segment income | $ | 284,606 |  |  | $ | 159,448 |  |  | $ | 649,543 |  |  | $ | 436,763 |
Reconciling items: |  |  |  |  |  |  |
Amortization of intangibles | (11,639) |  |  | (13,577) |  |  | (23,094) |  |  | (29,717) |
Stock-based compensation expense and related charges | (23,813) |  |  | (15,109) |  |  | (57,354) |  |  | (45,332) |
Restructuring, severance and related charges | (6,626) |  |  | (29,604) |  |  | (4,911) |  |  | (74,855) |
Distressed customer charge | — |  |  | — |  |  | — |  |  | (14,963) |
Business interruption and impairment charges, net | 806 |  |  | — |  |  | 806 |  |  | — |
Acquisition and integration charges | (1,261) |  |  | (7,752) |  |  | (3,374) |  |  | (23,886) |
Impairment on securities | — |  |  | (12,205) |  |  | — |  |  | (12,205) |
Other expense (net of periodic benefit cost) | (4,164) |  |  | (11,277) |  |  | (7,835) |  |  | (24,274) |
Interest income | 1,655 |  |  | 5,336 |  |  | 3,536 |  |  | 11,280 |
Interest expense | (31,026) |  |  | (46,183) |  |  | (63,372) |  |  | (91,094) |
Income before income tax | $ | 208,538 |  |  | $ | 29,077 |  |  | $ | 493,945 |  |  | $ | 131,717 |
| February 28, 2021 |  | August 31, 2020
Total assets |  |  |
EMS | $ | 3,765,147 |  |  | $ | 3,233,681 |
DMS | 6,798,932 |  |  | 6,641,764 |
Other non-allocated assets | 3,930,084 |  |  | 4,521,971 |
| $ | 14,494,163 |  |  | $ | 14,397,416 |
As of February 28, 2021, 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 |  | Six months ended
| February 28, 2021 |  | February 29, 2020 |  | February 28, 2021 |  | February 29, 2020
Foreign source revenue | 84.7 | % |  | 82.6 | % |  | 84.1 | % |  | 82.2 | %

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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