XML 35 R18.htm IDEA: XBRL DOCUMENT
v3.7.0.1

SEGMENT AND GEOGRAPHIC INFORMATION | 12 Months Ended
--- | ---
May 27, 2017
Segment Reporting [Abstract] |
SEGMENT AND GEOGRAPHIC INFORMATION |
11. | SEGMENT AND GEOGRAPHIC INFORMATION
During the first quarter of fiscal 2015, we created a new strategic business unit called Healthcare. As hospitals remain under pressure to reduce costs while serving a much larger customer base, there is a growing demand for independent sources of high value replacement parts for diagnostic imaging. Having access to parts that are tested and in stock enables hospitals to terminate expensive service contracts with OEM and instead use third party service providers or in-house technicians. With our global infrastructure, technical sales team, and experience servicing the healthcare market, we are well positioned to take advantage of this market opportunity. Over time, our plan is to expand our position from being the leader in power grid tubes to a key player in the high-growth, high-profile Healthcare industry. In accordance with ASC 280-10, Segment Reporting, we have identified three reportable segments: PMT and Canvys, and Healthcare. The Power and Microwave Technologies Group (“PMT”), formerly called the Electron Device Group (“EDG”), prior to July 2015, provides engineered solutions and distributes electronic components to customers in alternative energy, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. PMT focuses on various applications including broadcast transmission, CO2 laser cutting, diagnostic imaging, dielectric and induction heating, high energy transfer, high voltage switching, plasma, power conversion, radar, and radiation oncology. PMT also offers its customers technical services for both microwave and industrial equipment. Canvys provides customized display solutions serving the corporate enterprise, financial, healthcare, industrial, and medical OEM markets. Healthcare manufactures, refurbishes and distributes high value replacement parts for the healthcare market including hospitals, medical centers, asset management companies, independent service organizations, and multi-vendor service providers. Products include Diagnostic Imaging replacement parts including CT and MRI tubes, hydrogen thyratrons, klystrons, magnetrons; replacement flat panel detectors and upgrades; and additional replacement components currently under development for the diagnostic imaging service market. Through a combination of newly developed products and partnerships, service offerings, and training programs, we believe we can help our customers improve efficiency and deliver better clinical outcomes while lowering the cost of healthcare delivery. 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):
|  | Fiscal Year Ended |
|  | May 27, 2017 |  |  | May 28, 2016 |  |  | May 30, 2015 |
PMT |  |  |  |  |  |  |  |  |
Net Sales |  | $ | 104,226 |  |  | $ | 105,554 |  |  | $ | 105,748 |
Gross Profit |  |  | 33,382 |  |  |  | 33,088 |  |  |  | 33,098 |
Canvys |  |  |  |  |  |  |  |  |  |  |  |
Net Sales |  | $ | 20,534 |  |  | $ | 23,453 |  |  | $ | 24,645 |
Gross Profit |  |  | 5,752 |  |  |  | 6,017 |  |  |  | 6,457 |
Healthcare |  |  |  |  |  |  |  |  |  |  |  |
Net Sales |  | $ | 12,112 |  |  | $ | 13,009 |  |  | $ | 6,564 |
Gross Profit |  |  | 4,749 |  |  |  | 5,730 |  |  |  | 1,583 |
A reconciliation of assets to the relevant consolidated amount is as follows (in thousands):
|  | May 27, 2017 |  |  | May 28, 2016 |
Segment assets |  | $ | 80,105 |  |  | $ | 84,863 |
Cash and cash equivalents |  |  | 55,327 |  |  |  | 60,454 |
Investments - current |  |  | 6,429 |  |  |  | 2,268 |
Other current assets (1) |  |  | 3,330 |  |  |  | 3,143 |
Net property, plant and equipment |  |  | 8,752 |  |  |  | 8,333 |
Investments - non-current |  |  | 2,419 |  |  |  | 7,799 |
Other assets - non-current deferred income taxes |  |  | 1,102 |  |  |  | 1,270 |
Total assets |  | $ | 157,464 |  |  | $ | 168,130 |
(1) | Other current assets include miscellaneous receivables, prepaid expenses, and current deferred income taxes.
Assets are not disclosed by reportable segment as the Company does not track assets by reportable segment and certain assets are not specific to any reportable segment. Capital expenditures for our Healthcare segment during fiscal 2017 and 2016 were approximately $3.4 million and $2.9 million, respectively. In addition, we also had capital expenditures during fiscal 2017 and fiscal 2016 related to the Company’s new ERP system that are not specific to any particular reportable segment. 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):
|  | Fiscal Year Ended |
|  | May 27, 2017 |  |  | May 28, 2016 |  |  | May 30, 2015 |
Net Sales |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 55,963 |  |  | $ | 66,365 |  |  | $ | 59,742 |
Asia/Pacific |  |  | 27,997 |  |  |  | 24,564 |  |  |  | 24,605 |
Europe |  |  | 44,296 |  |  |  | 44,634 |  |  |  | 44,425 |
Latin America |  |  | 8,552 |  |  |  | 6,347 |  |  |  | 8,275 |
Other (1) |  |  | 64 |  |  |  | 106 |  |  |  | (90 | )
Total |  | $ | 136,872 |  |  | $ | 142,016 |  |  | $ | 136,957 |
Gross Profit |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 20,597 |  |  | $ | 23,506 |  |  | $ | 20,352 |
Asia/Pacific |  |  | 9,630 |  |  |  | 8,212 |  |  |  | 7,967 |
Europe |  |  | 14,418 |  |  |  | 13,541 |  |  |  | 14,051 |
Latin America |  |  | 3,250 |  |  |  | 2,397 |  |  |  | 3,082 |
Other (1) |  |  | (4,012 | ) |  |  | (2,821 | ) |  |  | (4,314 | )
Total |  | $ | 43,883 |  |  | $ | 44,835 |  |  | $ | 41,138 |
| (1) | Other primarily includes net sales not allocated to a specific geographical region, unabsorbed value-add costs, and other unallocated expenses.
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. Net assets by geographic region are summarized in the following table (in thousands):
|  | Fiscal Year Ended |
|  | May 27, 2017 |  |  | May 28, 2016 |  |  | May 30, 2015 |
Net Assets |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 62,085 |  |  | $ | 65,832 |  |  | $ | 76,153 |
Asia/Pacific |  |  | 34,990 |  |  |  | 42,547 |  |  |  | 44,602 |
Europe |  |  | 32,794 |  |  |  | 31,495 |  |  |  | 34,127 |
Latin America |  |  | 2,458 |  |  |  | 1,801 |  |  |  | 1,770 |
Total |  | $ | 132,327 |  |  | $ | 141,675 |  |  | $ | 156,652 |
The Company has long-lived assets of $19.3 million as of May 27, 2017 and $16.8 million as of May 28, 2016. The long-lived assets, which include our fixed assets and intangibles, are primarily in the US. There are approximately $1.2 million of long-lived assets that belong to our foreign affiliates as of May 27, 2017 and $1.3 million as of May 28, 2016. The Company had depreciation and amortization expense of $2.7 million, $2.4 million and $1.7 million for fiscal 2017, fiscal 2016 and fiscal 2015, respectively. The depreciation and amortization, which includes our fixed assets and intangibles, are primarily in the US. Depreciation and amortization expense that belong to our foreign affiliates was approximately $0.3 million for fiscal 2017, fiscal 2016 and fiscal 2015.

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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration