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Segment Reporting
 6 Months Ended
Dec. 03, 2011
Segment Reporting [Abstract]  
Segment Reporting

12. SEGMENT REPORTING

In accordance with ASC 280-10, Segment Reporting, we have two reportable segments: EDG and Canvys.

EDG provides engineered solutions and distributes electronic components to customers in diverse markets including the steel, automotive, textile, plastics, semiconductor manufacturing, avionics, and broadcast equipment industries. With the acquisition of Powerlink, EDG also offers its customers with technical services for both microwave and power grid tubes.

Canvys provides global integrated display solutions serving the financial, corporate enterprise, healthcare, industrial, and medical original equipment manufacturer ("OEM") markets.

The CEO evaluates performance and allocates resources primarily based on the gross profit of each segment.

Operating results by segment are summarized in the following table (in thousands):

 

     Three Months Ended      Six Months Ended  
      December 3,
2011		      November 27,
2010		      December 3,
2011		      November 27,
2010		  

EDG

            

Net Sales

    $ 28,022       $ 28,655       $ 58,751       $ 56,148   

Gross Profit

    $ 8,546       $ 8,942       $ 18,217       $ 17,998   

Canvys

            

Net Sales

    $ 11,116       $ 12,325       $ 21,898       $ 22,342   

Gross Profit

    $ 3,144       $ 2,853       $ 6,175       $ 5,188   

A reconciliation of assets to the relevant consolidated amount is as follows (in thousands):

 

     December 3,
2011		      May 28,
2011		  

Segment assets

    $ 57,292       $ 51,464   

Cash

      25,182         170,975   

Investments - current

      136,084         52,116   

Other current assets (1)

     10,953         9,615   

Net property

      4,739         5,216   

Investments - non-current

      15,429         16,656   

Other assets (2)

     1,801         3,994   

Assets of discontinued operations (3)

     1,669         4,018   
  

 

 

     

 

 

  

Total assets

    $ 253,149       $ 314,054   
  

 

 

     

 

 

  

(1) Other current assets include miscellaneous receivables, prepaid expenses, and current deferred income taxes.
(2) Other assets primarily include non-current deferred income taxes.
(3) See Footnote 5 - Discontinued Operations.

Geographic net sales information is primarily grouped by customer destination into five areas: North America; Asia/Pacific; Europe; Latin America; and Other.

Net sales and gross profit by geographic region are summarized in the following table (in thousands):

 

     Three Months Ended     Six Months Ended  
     December 3,
2011		     November 27,
2010		     December 3,
2011		     November 27,
2010		  

Net Sales

         

North America

    $ 16,850      $ 17,318      $ 33,403      $ 33,246   

Asia/Pacific

      6,159        6,970        14,052        13,675   

Europe

      12,564        13,563        26,122        25,409   

Latin America

      2,282        2,564        5,113        5,394   

Other

      1,283        565        1,959        766   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $ 39,138      $ 40,980      $ 80,649      $ 78,490   
  

 

 

    

 

 

    

 

 

    

 

 

  

Gross Profit

         

North America

    $ 5,303      $ 5,347      $ 10,666      $ 10,422   

Asia/Pacific

      2,277        2,375        4,937        4,837   

Europe

      3,962        3,765        8,347        6,903   

Latin America

      855        1,020        1,917        2,162   

Other

      (707 )      (712 )      (1,475 )      (1,138 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $ 11,690      $ 11,795      $ 24,392      $ 23,186   
  

 

 

    

 

 

    

 

 

    

 

 

  

We sell our products to customers in diversified industries and perform periodic credit evaluations of our customers' financial condition. Terms are generally on open account, payable net 30 days in North America, and vary throughout Asia/Pacific, Europe, and Latin America. Estimates of credit losses are recorded in the financial statements based on monthly reviews of outstanding accounts. Other primarily includes net sales not allocated to a specific geographical region, unabsorbed value-add costs, and other unallocated expenses.