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Concentration of Risk and Segment Data
 9 Months Ended
May 31, 2023
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, 2023, 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. Certain items are excluded from the calculation of segment income. 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 millions):
  Three months ended Nine months ended
  May 31, 2023 May 31, 2022 May 31, 2023 May 31, 2022
Segment income and reconciliation of income before income tax
EMS $ 226  $ 208  $ 629  $ 507 
DMS 178  144  627  589 
Total segment income $ 404  $ 352  $ 1,256  $ 1,096 
Reconciling items:
Amortization of intangibles (7) (8) (24) (24)
Stock-based compensation expense and related charges (18) (16) (80) (67)
Restructuring, severance and related charges —  —  (45) — 
Loss on debt extinguishment —  (4) —  (4)
Other expense (net of periodic benefit cost) (22) (8) (61) (19)
Interest income 32  1  62  2 
Interest expense (83) (39) (216) (105)
Income before income tax $ 306  $ 278  $ 892  $ 879 
The following table presents the Company’s revenues disaggregated by segment (in millions):
Three months ended
May 31, 2023 May 31, 2022
EMS DMS Total EMS DMS Total
Timing of transfer
Point in time $ 1,120  $ 1,351  $ 2,471  $ 1,755  $ 1,395  $ 3,150 
Over time 3,010  2,994  6,004  2,736  2,442  5,178 
Total $ 4,130  $ 4,345  $ 8,475  $ 4,491  $ 3,837  $ 8,328 
Nine months ended
May 31, 2023 May 31, 2022
EMS DMS Total EMS DMS Total
Timing of transfer
Point in time $ 3,925  $ 5,047  $ 8,972  $ 4,489  $ 5,183  $ 9,672 
Over time 8,802  8,470  17,272  7,634  7,142  14,776 
Total $ 12,727  $ 13,517  $ 26,244  $ 12,123  $ 12,325  $ 24,448 
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 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, 2023 May 31, 2022 May 31, 2023 May 31, 2022
Foreign source revenue 86.9  % 82.6  % 85.6  % 83.7  %