XML 36 R21.htm IDEA: XBRL DOCUMENT
v3.23.3

Concentration of Risk and Segment Data | 12 Months Ended
--- | ---
Aug. 31, 2023
Segment Reporting [Abstract] |
Concentration of Risk and Segment Data | Concentration of Risk and Segment Data Concentration of Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and trade receivables. The Company maintains cash and cash equivalents with various domestic and foreign financial institutions. Deposits held with the financial institutions may exceed the amount of insurance provided on such deposits, but may generally be redeemed upon demand. The Company performs periodic evaluations of the relative credit standing of the financial institutions and attempts to limit exposure with any one institution. For trade receivables, the Company performs ongoing credit evaluations of its customers and generally does not require collateral. The Company maintains an allowance for expected credit losses on trade receivables. Sales of the Company’s products are concentrated among specific customers. For fiscal year 2023, the Company’s five largest customers accounted for approximately 42% of its net revenue and 84 customers accounted for approximately 90% of its net revenue. As the Company is a provider of manufacturing services and solutions and products are built based on customer specifications, it is impracticable to provide revenues from external customers for each product and service. Sales to the following customers that accounted for 10% or more of the Company’s net revenues, expressed as a percentage of consolidated net revenue, and the percentage of accounts receivable for the customers, were as follows:
|  | Percentage of Net Revenue Fiscal Year Ended August 31, |  | Percentage of Accounts Receivable as of August 31,
|  | 2023 |  | 2022 |  | 2021 |  | 2023 |  | 2022
Apple, Inc.(1) |  | 17 | % |  | 19 | % |  | 22 | % |  | * |  | *
* Amount was less than 10% of total. (1)Sales to this customer were reported in the DMS operating segment. 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 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 (“CODM”) 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 CODM 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 reportable segments. The segments are organized based on the economic profiles of the services performed, including manufacturing capabilities, market strategy, margins, return on capital and risk profiles. The EMS segment is focused around leveraging IT, supply chain design and engineering, technologies largely centered on core electronics, utilizing the Company’s large scale manufacturing infrastructure and the ability to serve a broad range of end markets. The EMS segment is a high volume business that produces product at a quicker rate (i.e. cycle time) and in larger quantities and includes customers primarily in the 5G, wireless and cloud, digital print and retail, industrial and semi-capital equipment, and networking and storage industries. The DMS segment is focused on providing engineering solutions, with an emphasis on material sciences, technologies and healthcare. The DMS segment includes customers primarily in the automotive and transportation, connected devices, healthcare and packaging, and mobility 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. 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, 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, loss on debt extinguishment, (gain) loss on securities, income (loss) from discontinued operations, gain (loss) on sale of discontinued operations, other expense (excluding certain components of net periodic benefit cost), interest expense, net, income tax expense or adjustment for net income (loss) attributable to noncontrolling interests. Total segment assets are defined as accounts receivable, contract assets, 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 with third parties. The following table presents the Company’s revenues disaggregated by segment (in millions):
| Fiscal Year Ended August 31,
| 2023 |  | 2022 |  | 2021
| EMS |  | DMS |  | Total |  | EMS |  | DMS |  | Total |  | EMS |  | DMS |  | Total
Timing of transfer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Point in time | $ | 5,094 |  |  | $ | 6,453 |  |  | $ | 11,547 |  |  | $ | 6,112 |  |  | $ | 6,818 |  |  | $ | 12,930 |  |  | $ | 4,464 |  |  | $ | 7,183 |  |  | $ | 11,647 |
Over time | 11,655 |  |  | 11,500 |  |  | 23,155 |  |  | 10,625 |  |  | 9,923 |  |  | 20,548 |  |  | 9,440 |  |  | 8,198 |  |  | 17,638 |
Total | $ | 16,749 |  |  | $ | 17,953 |  |  | $ | 34,702 |  |  | $ | 16,737 |  |  | $ | 16,741 |  |  | $ | 33,478 |  |  | $ | 13,904 |  |  | $ | 15,381 |  |  | $ | 29,285 |
The following tables set forth operating segment information (in millions):
|  | Fiscal Year Ended August 31,
|  | 2023 |  | 2022 |  | 2021
Segment income and reconciliation of income before income tax |  |  |  |  |  |
EMS |  | $ | 837 |  |  | $ | 727 |  |  | $ | 509 |
DMS |  | 896 |  |  | 816 |  |  | 732 |
Total segment income |  | $ | 1,733 |  |  | $ | 1,543 |  |  | $ | 1,241 |
Reconciling items: |  |  |  |  |  |
Amortization of intangibles |  | (33) |  |  | (34) |  |  | (47) |
Stock-based compensation expense and related charges |  | (95) |  |  | (81) |  |  | (102) |
Restructuring, severance and related charges |  | (57) |  |  | (18) |  |  | (10) |
Business interruption and impairment charges, net |  | — |  |  | — |  |  | 1 |
Acquisition and integration charges |  | — |  |  | — |  |  | (4) |
Loss on debt extinguishment |  | — |  |  | (4) |  |  | — |
Gain on securities |  | — |  |  | — |  |  | 2 |
Other expense (net of periodic benefit cost) |  | (80) |  |  | (29) |  |  | (13) |
Interest expense, net |  | (206) |  |  | (146) |  |  | (124) |
Income before income tax |  | $ | 1,262 |  |  | $ | 1,231 |  |  | $ | 944 |
|  | August 31, 2023 |  | August 31, 2022
Total assets: |  |  |  |
EMS |  | $ | 4,859 |  |  | $ | 5,402 |
DMS |  | 6,802 |  |  | 8,881 |
Assets held for sale(1) |  | 1,929 |  |  | — |
Other non-allocated assets |  | 5,834 |  |  | 5,434 |
Total |  | $ | 19,424 |  |  | $ | 19,717 |
(1)Assets held for sale were reported in the DMS operating segment. The Company operates in more than 30 countries worldwide. Sales to unaffiliated customers are based on the Company location that maintains the customer relationship and transacts the external sale. The following tables set forth external net revenue, net of intercompany eliminations, and long-lived asset information where individual countries represent a material portion of the total (in millions):
|  | Fiscal Year Ended August 31,
|  | 2023 |  | 2022 |  | 2021
External net revenue: |  |  |  |  |  |
Singapore |  | $ | 7,385 |  |  | $ | 7,916 |  |  | $ | 7,943 |
Mexico |  | 6,083 |  |  | 5,630 |  |  | 4,323 |
China |  | 5,868 |  |  | 5,272 |  |  | 4,666 |
Malaysia |  | 2,779 |  |  | 2,709 |  |  | 2,121 |
India |  | 1,596 |  |  | 591 |  |  | 549 |
Other |  | 6,056 |  |  | 5,971 |  |  | 4,868 |
Foreign source revenue |  | 29,767 |  |  | 28,089 |  |  | 24,470 |
U.S. |  | 4,935 |  |  | 5,389 |  |  | 4,815 |
Total |  | $ | 34,702 |  |  | $ | 33,478 |  |  | $ | 29,285 |
|  | August 31, 2023 |  | August 31, 2022
Long-lived assets: |  |  |  |
China(1) |  | $ | 684 |  |  | $ | 1,758 |
Mexico |  | 574 |  |  | 492 |
Malaysia |  | 358 |  |  | 328 |
Switzerland |  | 238 |  |  | 208 |
Singapore |  | 131 |  |  | 138 |
Hungary |  | 109 |  |  | 114 |
Taiwan |  | 97 |  |  | 101 |
Vietnam |  | 88 |  |  | 104 |
Other |  | 628 |  |  | 553 |
Long-lived assets related to foreign operations |  | 2,907 |  |  | 3,796 |
U.S. |  | 993 |  |  | 1,020 |
Total |  | $ | 3,900 |  |  | $ | 4,816 |
(1)Excludes long-lived assets of $841 million classified as held for sale. See Note 16 – “Business Acquisitions and Divestitures” for additional information.

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/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration