Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Dec. 29, 2018 | Jan. 29, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 29, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | PLEXUS CORP | |
Entity Central Index Key | 785,786 | |
Current Fiscal Year End Date | --09-28 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 30,914,029 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Income Statement [Abstract] | ||
Net sales | $ 765,544 | $ 677,294 |
Cost of sales | 693,161 | 613,771 |
Gross profit | 72,383 | 63,523 |
Selling and administrative expenses | 35,432 | 31,966 |
Operating income | 36,951 | 31,557 |
Other income (expense): | ||
Interest expense | (2,249) | (3,725) |
Interest income | 525 | 1,555 |
Miscellaneous, net | (1,112) | (346) |
Income before income taxes | 34,115 | 29,041 |
Income tax expense | 11,889 | 127,534 |
Net income (loss) | $ 22,226 | $ (98,493) |
Earnings (loss) per share: | ||
Basic (in dollars per share) | $ 0.71 | $ (2.93) |
Diluted (in dollars per share) | $ 0.69 | $ (2.93) |
Weighted average shares outstanding: | ||
Basic (in shares) | 31,403 | 33,567 |
Diluted (in shares) | 32,286 | 33,567 |
Other comprehensive income (loss): | ||
Derivative instrument fair value adjustment | $ 378 | $ 1,539 |
Foreign currency translation adjustments | (1,871) | 2,142 |
Other comprehensive income (loss) | (1,493) | 3,681 |
Total comprehensive income (loss) | $ 20,733 | $ (94,812) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 29, 2018 | Sep. 29, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 188,799 | $ 297,269 |
Restricted cash | 4,074 | 417 |
Accounts receivable, net of allowances of $1,094 and $885, respectively | 428,487 | 394,827 |
Contract assets | 82,775 | 0 |
Inventories, net | 798,271 | 794,346 |
Prepaid expenses and other | 31,435 | 30,302 |
Total current assets | 1,533,841 | 1,517,161 |
Property, plant and equipment, net | 361,311 | 341,306 |
Deferred income taxes | 10,832 | 10,825 |
Intangible assets, net | 7,807 | 8,239 |
Other | 55,892 | 55,111 |
Total non-current assets | 435,842 | 415,481 |
Total assets | 1,969,683 | 1,932,642 |
Current liabilities: | ||
Current portion of long-term debt and capital lease obligations | 8,633 | 5,532 |
Accounts payable | 516,989 | 506,322 |
Customer deposits | 112,663 | 90,782 |
Accrued salaries and wages | 58,532 | 66,874 |
Other accrued liabilities | 83,004 | 68,163 |
Total current liabilities | 779,821 | 737,673 |
Long-term debt and capital lease obligations, net of current portion | 187,567 | 183,085 |
Long-term accrued income taxes payable | 63,848 | 56,130 |
Deferred income taxes payable | 14,610 | 14,376 |
Other liabilities | 18,674 | 20,235 |
Total non-current liabilities | 284,699 | 273,826 |
Total liabilities | 1,064,520 | 1,011,499 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Preferred stock, $.01 par value, 5,000 shares authorized, none issued or outstanding | 0 | 0 |
Common stock, $.01 par value, 200,000 shares authorized, 52,591 and 52,567 shares issued, respectively, and 30,992 and 31,838 shares outstanding, respectively | 526 | 526 |
Additional paid-in capital | 587,011 | 581,488 |
Common stock held in treasury, at cost, 21,599 and 20,729 shares, respectively | (761,189) | (711,138) |
Retained earnings | 1,092,287 | 1,062,246 |
Accumulated other comprehensive loss | (13,472) | (11,979) |
Total shareholders’ equity | 905,163 | 921,143 |
Total liabilities and shareholders’ equity | $ 1,969,683 | $ 1,932,642 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 29, 2018 | Sep. 29, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 1,094 | $ 885 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 52,591,000 | 52,567,000 |
Common stock, shares outstanding (in shares) | 30,992,000 | 31,838,000 |
Treasury stock, shares (in shares) | 21,599,000 | 20,729,000 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | |
Beginning balance (in shares) at Sep. 30, 2017 | 33,464,000 | ||||||
Beginning balance at Sep. 30, 2017 | $ 1,025,939 | $ 519 | $ 555,297 | $ (574,104) | $ 1,049,206 | $ (4,979) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (98,493) | (98,493) | |||||
Other comprehensive income (loss) | 3,681 | 3,681 | |||||
Treasury shares purchased (in shares) | (158,000) | ||||||
Treasury shares purchased | (9,547) | (9,547) | |||||
Share-based compensation expense | 3,896 | 3,896 | |||||
Exercise of stock options, including tax benefits (in shares) | 301,000 | ||||||
Exercise of stock options, including tax benefits | 8,372 | $ 3 | 8,369 | ||||
Ending balance (in shares) at Dec. 30, 2017 | 33,607,000 | ||||||
Ending balance at Dec. 30, 2017 | 933,848 | $ 522 | 567,562 | (583,651) | 950,713 | (1,298) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect adjustment for adoption of new accounting principle in pronouncement | [1] | $ 7,815 | 7,815 | ||||
Beginning balance (in shares) at Sep. 29, 2018 | 31,838,000 | 31,838,000 | |||||
Beginning balance at Sep. 29, 2018 | $ 921,143 | $ 526 | 581,488 | (711,138) | 1,062,246 | (11,979) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 22,226 | 22,226 | |||||
Other comprehensive income (loss) | (1,493) | (1,493) | |||||
Treasury shares purchased (in shares) | (870,000) | ||||||
Treasury shares purchased | (50,051) | (50,051) | |||||
Share-based compensation expense | 4,753 | 4,753 | |||||
Exercise of stock options, including tax benefits (in shares) | 24,000 | ||||||
Exercise of stock options, including tax benefits | $ 770 | 770 | |||||
Ending balance (in shares) at Dec. 29, 2018 | 30,992,000 | 30,992,000 | |||||
Ending balance at Dec. 29, 2018 | $ 905,163 | $ 526 | $ 587,011 | $ (761,189) | $ 1,092,287 | $ (13,472) | |
[1] | See Note 1, "Basis of Presentation", for a discussion of recently adopted accounting pronouncements. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Cash flows from operating activities | ||
Net income (loss) | $ 22,226 | $ (98,493) |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | ||
Depreciation and amortization | 12,574 | 11,702 |
Deferred income taxes | 943 | 21,906 |
Share-based compensation expense | 4,753 | 3,896 |
Other, net | 51 | (46) |
Changes in operating assets and liabilities, excluding impacts of acquisition: | ||
Accounts receivable | (34,240) | 31,461 |
Contract assets | (6,339) | 0 |
Inventories | (74,344) | (14,016) |
Other current and noncurrent assets | (2,221) | (4,453) |
Accrued income taxes payable | 10,811 | 106,156 |
Accounts payable | 7,928 | 8,756 |
Customer deposits | 22,050 | (5,195) |
Other current and noncurrent liabilities | 2,467 | 7,432 |
Cash flows (used in) provided by operating activities | (33,341) | 69,106 |
Cash flows from investing activities | ||
Payments for property, plant and equipment | (24,903) | (16,702) |
Proceeds from sales of property, plant and equipment | 49 | 173 |
Business acquisition | 1,180 | 0 |
Cash flows used in investing activities | (23,674) | (16,529) |
Cash flows from financing activities | ||
Borrowings under debt agreements | 231,500 | 216,314 |
Payments on debt and capital lease obligations | (229,469) | (324,192) |
Repurchases of common stock | (50,051) | (9,547) |
Proceeds from exercise of stock options | 796 | 8,513 |
Payments related to tax withholding for share-based compensation | (26) | (141) |
Cash flows used in financing activities | (47,250) | (109,053) |
Effect of exchange rate changes on cash and cash equivalents | (548) | 2,073 |
Net decrease in cash and cash equivalents and restricted cash | (104,813) | (54,403) |
Cash and cash equivalents and restricted cash: | ||
Beginning of period | 297,686 | 569,254 |
End of period | $ 192,873 | $ 514,851 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Basis of Presentation: The accompanying Condensed Consolidated Financial Statements included herein have been prepared by Plexus Corp. and its subsidiaries (together “Plexus” or the “Company”) without audit and pursuant to the rules and regulations of the United States (“U.S.”) Securities and Exchange Commission (“SEC”). The accompanying Condensed Consolidated Financial Statements reflect all adjustments, which include normal recurring adjustments necessary for the fair statement of the consolidated financial position of the Company as of December 29, 2018 and September 29, 2018 , and the results of operations for the three months ended December 29, 2018 and December 30, 2017 , and the cash flows and shareholders' equity for the same three month periods. The Company’s fiscal year ends on the Saturday closest to September 30. The Company uses a “4-4-5” weekly accounting system for the interim periods in each quarter. Each quarter, therefore, ends on a Saturday at the end of the 4-4-5 period. Periodically, an additional week must be added to the fiscal year to re-align with the Saturday closest to September 30. All fiscal quarters presented herein included 13 weeks. Certain information and footnote disclosures, normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"), have been condensed or omitted pursuant to the SEC’s rules and regulations dealing with interim financial statements. However, the Company believes that the disclosures made in the Condensed Consolidated Financial Statements included herein are adequate to make the information presented not misleading. It is suggested that these Condensed Consolidated Financial Statements be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s 2018 Annual Report on Form 10-K. Recently Adopted Accounting Pronouncements: In October 2016, the Financial Accounting Standards Board (the "FASB") issued ASU 2016-16 related to the income tax consequences of intra-entity transfers of assets other than inventory. The new standard eliminates the exception for an intra-entity transfer of an asset other than inventory and requires an entity to recognize the income tax consequences when the transfer occurs. The Company adopted this guidance under the modified retrospective approach during the first quarter of fiscal 2019. The Company recognized no net impact to its fiscal 2019 opening Retained Earnings balance upon adoption and does not anticipate any material impact to the Company's future Consolidated Financial Statements. In August 2016, the FASB issued ASU 2016-15 related to the classification of certain cash receipts and cash payments, which clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows. The new standard addresses certain issues where diversity in practice was identified. It also amends existing guidance, which is principles based and often requires judgment to determine the appropriate classification of cash flows as operating, investing or financing activities and clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows. The Company adopted this guidance during the first quarter of fiscal 2019 with no material impact to the Company's Condensed Statements of Cash Flows. In May 2014, the FASB issued ASU 2014-09, which requires an entity to recognize revenue relating to contracts with customers that depicts the transfer of promised goods or services to customers in an amount reflecting the consideration to which the entity expects to be entitled in exchange for such goods or services ("Topic 606"). Topic 606 also requires disclosures enabling users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers and is effective for the Company beginning in the first quarter of fiscal year 2019. On September 30, 2018, the Company adopted and applied Topic 606 to all contracts using the modified retrospective method of adoption. Upon adoption, the Company recognized an increase to its beginning Retained Earnings balance of $7.8 million . The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. Refer to Note 13, "Revenue from Contracts with Customers," for further information. Recently Issued Accounting Pronouncements Not Yet Adopted: In February 2016, the FASB issued ASU 2016-02, which requires lessees to recognize most leases on their balance sheets but record expenses on their income statements in a manner similar to current accounting. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. The guidance is effective for the Company beginning in the first quarter of fiscal year 2020. Early adoption is permitted. The Company is currently in the process of assessing the impact of the adoption of the new standard on its Consolidated Financial Statements and plans to adopt the standard in the first quarter of fiscal year 2020. In August 2017, the FASB issued ASU 2017-12 related to the accounting for hedging activities. The pronouncement expands and refines hedge accounting, aligns the recognition and presentation of the effects of hedging instruments and hedge items in the financial statements, and includes certain targeted improvements to ease the application of current guidance related to the assessment of hedge effectiveness. The guidance is effective for the Company beginning in the first quarter of fiscal year 2020. Early adoption is permitted. The Company is currently in the process of assessing the impact of the adoption of the new standard on its Consolidated Financial Statements and the timing of adoption. The Company believes that no other recently issued accounting standards will have a material impact on its Consolidated Financial Statements, or apply to its operations. |
Inventories
Inventories | 3 Months Ended |
Dec. 29, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories as of December 29, 2018 and September 29, 2018 consisted of the following (in thousands): December 29, 2018 September 29, 2018 Raw materials $ 637,324 $ 579,377 Work-in-process 70,956 102,337 Finished goods 89,991 112,632 Total inventories, net $ 798,271 $ 794,346 In certain circumstances, per contractual terms, customer deposits are received by the Company to offset obsolete and excess inventory risks. The total amount of customer deposits related to inventory and included within current liabilities on the accompanying Condensed Consolidated Balance Sheets as of December 29, 2018 and September 29, 2018 was $110.7 million and $87.7 million , respectively. In the first quarter of fiscal year 2019, the Company adopted and applied Topic 606 to all contracts using the modified retrospective method of adoption. The prior year comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. Refer to Note 13, "Revenue from Contracts with Customers," for further information. |
Debt, Capital Lease Obligations
Debt, Capital Lease Obligations and Other Financing | 3 Months Ended |
Dec. 29, 2018 | |
Debt and Capital Lease Obligations [Abstract] | |
Debt, Capital Lease Obligations and Other Financing | Debt, Capital Lease Obligations and Other Financing Debt and capital lease obligations as of December 29, 2018 and September 29, 2018 , consisted of the following (in thousands): December 29, 2018 September 29, 2018 4.05% Senior Notes, due June 15, 2025 $ 100,000 $ 100,000 4.22% Senior Notes, due June 15, 2028 50,000 50,000 Borrowings under the credit facility 3,000 — Capital lease and other financing obligations 44,368 39,857 Unamortized deferred financing fees (1,168 ) (1,240 ) Total obligations 196,200 188,617 Less: current portion (8,633 ) (5,532 ) Long-term debt and capital lease obligations, net of current portion $ 187,567 $ 183,085 On June 15, 2018, the Company entered into a Note Purchase Agreement (the “2018 NPA”) pursuant to which it issued an aggregate of $150.0 million in principal amount of unsecured senior notes, consisting of $100.0 million in principal amount of 4.05% Series A Senior Notes, due on June 15, 2025, and $50.0 million in principal amount of 4.22% Series B Senior Notes, due on June 15, 2028 (collectively, the “2018 Notes”), in a private placement. The 2018 NPA includes customary operational and financial covenants with which the Company is required to comply, including, among others, maintenance of certain financial ratios such as a total leverage ratio and a minimum interest coverage ratio. The 2018 Notes may be prepaid in whole or in part at any time, subject to payment of a make-whole amount. Interest on the 2018 Notes is payable semiannually. At December 29, 2018 , the Company was in compliance with the covenants under the 2018 NPA. The Company also has a senior unsecured revolving credit facility (the "Credit Facility"), with a $300.0 million maximum commitment that expires on July 5, 2021 . The Credit Facility may be further increased to $500.0 million , generally by mutual agreement of the Company and the lenders, subject to certain customary conditions. During the three months ended December 29, 2018 , the highest daily borrowing was $107.5 million ; the average daily borrowings were $47.6 million . The Company borrowed $231.5 million and repaid $228.5 million of revolving borrowings under the Credit Facility during the three months ended December 29, 2018 . The Company was in compliance with all financial covenants relating to the Credit Facility, which are generally consistent with those in the 2018 NPA discussed above. The Company is required to pay a commitment fee on the daily unused revolver credit commitment based on the Company's leverage ratio; the fee was 0.175% as of December 29, 2018 . The fair value of the Company’s debt, excluding capital leases, was $150.5 million and $151.9 million as of December 29, 2018 and September 29, 2018 , respectively. The carrying value of the Company's debt, excluding capital leases, was $153.0 million and $150.0 million as of December 29, 2018 and September 29, 2018 , respectively. If measured at fair value in the financial statements, the Company's debt would be classified as Level 2 in the fair value hierarchy. Refer to Note 4, "Derivatives," for further information regarding the Company's fair value calculations and classifications. |
Derivatives
Derivatives | 3 Months Ended |
Dec. 29, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives All derivatives are recognized in the accompanying Condensed Consolidated Balance Sheets at their estimated fair value. The Company uses derivatives to manage the variability of foreign currency obligations. The Company has cash flow hedges related to forecasted foreign currency obligations, in addition to non-designated hedges to manage foreign currency exposures associated with certain foreign currency denominated assets and liabilities. The Company does not enter into derivatives for speculative purposes. Changes in the fair value of the derivatives that qualify as cash flow hedges are recorded in "Accumulated other comprehensive loss" in the accompanying Condensed Consolidated Balance Sheets until earnings are affected by the variability of the cash flows. In the next twelve months, the Company estimates that $1.3 million of unrealized losses , net of tax, related to cash flow hedges will be reclassified from other comprehensive income (loss) into earnings. Changes in the fair value of the non-designated derivatives related to recognized foreign currency denominated assets and liabilities are recorded in "Miscellaneous, net" in the accompanying Condensed Consolidated Statements of Comprehensive Income (Loss). The Company enters into forward currency exchange contracts for its operations in Malaysia and Mexico on a rolling basis. The Company had cash flow hedges outstanding with a notional value of $74.1 million as of December 29, 2018 , and $74.0 million as of September 29, 2018 . These forward currency contracts fix the exchange rates for the settlement of future foreign currency obligations that have yet to be realized. The total fair value of the forward currency exchange contracts was a $1.3 million liability as of December 29, 2018 , and a $1.7 million liability as of September 29, 2018 . The Company had additional forward currency exchange contracts outstanding with a notional value of $34.6 million as of December 29, 2018 , and $28.6 million as of September 29, 2018 . The Company did not designate these derivative instruments as hedging instruments. The net settlement amount (fair value) related to these contracts is recorded on the Condensed Consolidated Balance Sheets as either a current or long-term asset or liability, depending on the term, and as an element of "Miscellaneous, net" within the Condensed Consolidated Statements of Comprehensive Income (Loss). The total fair value of these derivatives was a $0.4 million asset as of December 29, 2018 , and a $0.1 million liability as of September 29, 2018 . The tables below present information regarding the fair values of derivative instruments and the effects of derivative instruments on the Company’s Condensed Consolidated Financial Statements: Fair Values of Derivative Instruments In thousands of dollars Asset Derivatives Liability Derivatives December 29, September 29, December 29, September 29, Derivatives designated as hedging instruments Balance Sheet Classification Fair Value Fair Value Balance Sheet Classification Fair Value Fair Value Foreign currency forward contracts Prepaid expenses and other $ 47 $ 292 Other accrued liabilities $ 1,361 $ 1,984 Fair Values of Derivative Instruments In thousands of dollars Asset Derivatives Liability Derivatives December 29, September 29, December 29, September 29, Derivatives not designated as hedging instruments Balance Sheet Classification Fair Value Fair Value Balance Sheet Classification Fair Value Fair Value Foreign currency forward contracts Prepaid expenses and other $ 460 $ 42 Other accrued liabilities $ 68 $ 81 Derivative Impact on Accumulated Other Comprehensive Income (Loss) ("OCI") for the Three Months Ended In thousands of dollars Derivatives in Cash Flow Hedging Relationships Amount of (Loss) Gain Recognized in OCI on Derivatives (Effective Portion) December 29, 2018 December 30, 2017 Foreign currency forward contracts $ (388 ) $ 2,714 Derivative Impact on Gain (Loss) Recognized in Income for the Three Months Ended In thousands of dollars Derivatives in Cash Flow Hedging Relationships Classification of (Loss) Gain Reclassified from Accumulated OCI into Income (Effective Portion) Amount of (Loss) Gain Reclassified from Accumulated OCI into Income (Effective Portion) December 29, 2018 December 30, 2017 Foreign currency forward contracts Selling and administrative expenses $ (82 ) $ 105 Foreign currency forward contracts Cost of sales $ (684 ) $ 991 Treasury Rate Locks Interest expense $ — $ 79 Derivatives Not Designated as Hedging Instruments Location of (Loss) Gain Recognized on Derivatives in Income Amount of Gain (Loss) on Derivatives Recognized in Income December 29, 2018 December 30, 2017 Foreign currency forward contracts Miscellaneous, net $ 787 $ (535 ) There were no gains or losses recognized in income for derivatives related to ineffective portions and amounts excluded from effectiveness testing for the three months ended December 29, 2018 and December 30, 2017 . Fair Value Measurements: Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (or exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses quoted market prices when available or discounted cash flows to calculate fair value. The accounting guidance establishes a fair value hierarchy based on three levels of inputs that may be used to measure fair value. The input levels are: Level 1: Quoted (observable) market prices in active markets for identical assets or liabilities. Level 2: Inputs other than Level 1 that are observable, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the asset or liability. The following table lists the fair values of liabilities of the Company’s derivatives as of December 29, 2018 and September 29, 2018 , by input level: Fair Value Measurements Using Input Levels (Liability)/Asset In thousands of dollars December 29, 2018 Level 1 Level 2 Level 3 Total Derivatives Forward currency forward contracts $ — $ (922 ) $ — $ (922 ) September 29, 2018 Derivatives Forward currency forward contracts $ — $ (1,731 ) $ — $ (1,731 ) The fair value of foreign currency forward contracts is determined using a market approach, which includes obtaining directly or indirectly observable values from third parties active in the relevant markets. Inputs in the fair value of the foreign currency forward contracts include prevailing forward and spot prices for currency and interest rate forward curves. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense for the three months ended December 29, 2018 was $11.9 million . Income tax expense for the three months ended December 30, 2017 was $127.5 million . On December 22, 2017, the U.S. Tax Cuts & Jobs Act was enacted ("Tax Reform"). Due to the complexities in implementing Tax Reform, the SEC issued Staff Accounting Bulletin 118, which allowed the Company to record a tax expense when uncertainty or other factors may impact the final outcome. During fiscal year 2018, the Company made reasonable estimates related to the impact of Tax Reform and, in accordance with SAB118, recorded a net income tax expense of $85.9 million . The components of the tax expense included $61.2 million of U.S. federal and state taxes on deemed repatriation of historical undistributed foreign earnings, which are payable over an eight year period beginning in fiscal 2019, $21.8 million of foreign withholding taxes due to a change in the Company’s permanently reinvested assertion on foreign earnings that are payable upon repatriation to the U.S. and $2.9 million for unrecognized tax benefits related to the implementation of Tax Reform. For the three months ended December 29, 2018 , the Company recorded a $7.0 million increase to its income tax expense, inclusive of unrecognized tax benefits, as a result of additional proposed guidance issued by the U.S. Department of the Treasury on November 28, 2018, related to Tax Reform. The guidance related to the treatment of foreign taxes paid that impacted the tax on the deemed repatriation of historical undistributed foreign earnings. The Company's final tax expense recorded for Tax Reform was $92.9 million . Additionally, the effects of the Global Intangible Low-Taxed Income provision added by Tax Reform have been recorded in the three months ended December 29, 2018 . The Company has elected to treat the income tax effects of this provision as a period cost. The effective tax rates for the three months ended December 29, 2018 and December 30, 2017 , were 34.9% and 439.2% , respectively. The effective tax rate for the three months ended December 29, 2018 decreased from the effective tax rate for the three months ended December 30, 2017 , primarily due to the impact of Tax Reform. For the three months ended December 29, 2018 , the Company recorded an income tax benefit of $1.7 million primarily related to unrecognized tax benefits as the U.S. Department of the Treasury issued additional guidance for Tax Reform. The Company recognizes accrued interest and penalties on uncertain tax positions as a component of income tax expense. The amount of interest and penalties recorded for the three months ended December 29, 2018 was not material. One or more uncertain tax positions may be settled within the next 12 months. Settlement of these matters is not expected to have a material effect on the Company's consolidated results of operations, financial position and cash flows. The Company is not currently under examination by taxing authorities in the U.S. or any foreign jurisdictions in which the Company operates. The Company maintains valuation allowances when it is more likely than not that all or a portion of a net deferred tax asset will not be realized. During the three months ended December 29, 2018 , the Company continued to record a full valuation allowance against its net deferred tax assets in certain jurisdictions within the EMEA segment and a partial valuation against its net deferred tax assets in certain jurisdictions within the AMER segment, as it was more likely than not that these assets would not be fully realized based primarily on historical performance. The Company will continue to provide a valuation allowance against its net deferred tax assets in each of the applicable jurisdictions going forward until it determines it is more likely than not that the deferred tax assets will be realized. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 29, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following is a reconciliation of the amounts utilized in the computation of basic and diluted earnings per share for the three months ended December 29, 2018 and December 30, 2017 (in thousands, except per share amounts): Three Months Ended December 29, 2018 December 30, 2017 Net income (loss) 22,226 (98,493 ) Basic weighted average common shares outstanding 31,403 33,567 Dilutive effect of share-based awards outstanding 883 — Diluted weighted average shares outstanding 32,286 33,567 Earnings (loss) per share: Basic $ 0.71 $ (2.93 ) Diluted $ 0.69 $ (2.93 ) For the three months ended December 29, 2018 , share-based awards for approximately 0.1 million shares were not included in the computation of diluted earnings per share as they were antidilutive. For the three months ended December 30, 2017 , there were no antidilutive shares, but the total number of potentially dilutive share-based awards was 1.1 million ; however, these awards were not included in the computation of diluted loss per share, as doing so would have decreased the loss per share. See also Note 11, "Shareholders' Equity," for information regarding the Company's share repurchase plans. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Dec. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Company recognized $4.8 million and $3.9 million of compensation expense associated with share-based awards for the three months ended December 29, 2018 and December 30, 2017 , respectively. The Company uses the Black-Scholes valuation model to determine the fair value of stock options and stock-settled stock appreciation rights ("SARs"). The Company uses its stock price on grant date as the fair value assigned to restricted stock units ("RSUs"). Performance stock units ("PSUs") are payable in shares of the Company's common stock. Beginning for fiscal 2017 grants, PSUs vest based on the relative total shareholder return ("TSR") of the Company's common stock as compared to the companies in the Russell 3000 index, a market condition, and the Company's economic return performance during the three year performance period, a performance condition. The Company uses the Monte Carlo valuation model to determine the fair value of PSUs at the date of grant for PSUs that vest based on the relative TSR of the Company's common stock. The Company uses its stock price on grant date as the fair value assigned to PSUs that vest based on the Company's economic return performance. The PSUs granted in fiscal 2016 and prior years vest based solely on the relative TSR of the Company's common stock as compared to companies in the Russell 3000 Index during a three year performance period. The number of shares that may be issued pursuant to PSUs ranges from zero to 0.4 million and is dependent upon the Company's TSR and economic return performance over the applicable performance periods. The Company recognizes share-based compensation expense over the share-based awards' vesting period. |
Litigation
Litigation | 3 Months Ended |
Dec. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation | Litigation The Company is party to lawsuits in the ordinary course of business. Management does not believe that these proceedings, individually or in the aggregate, will have a material positive or adverse effect on the Company’s consolidated financial position, results of operations or cash flows. |
Reportable Segments
Reportable Segments | 3 Months Ended |
Dec. 29, 2018 | |
Segment Reporting [Abstract] | |
Reportable Segments | Reportable Segments Reportable segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or group, in assessing performance and allocating resources. The Company uses an internal management reporting system, which provides important financial data to evaluate performance and allocate the Company’s resources on a regional basis. Net sales for the segments are attributed to the region in which the product is manufactured or the service is performed. The services provided, manufacturing processes used, class of customers serviced and order fulfillment processes used are similar and generally interchangeable across the segments. A segment’s performance is evaluated based upon its operating income (loss). A segment’s operating income (loss) includes its net sales less cost of sales and selling and administrative expenses, but excludes corporate and other expenses. Corporate and other expenses primarily represent corporate selling and administrative expenses, and restructuring costs and other charges, if any. These costs are not allocated to the segments, as management excludes such costs when assessing the performance of the segments. Inter-segment transactions are generally recorded at amounts that approximate arm’s length transactions. The accounting policies for the segments are the same as for the Company taken as a whole. Information about the Company’s three reportable segments for the three months ended December 29, 2018 and December 30, 2017 , respectively, is as follows (in thousands): Three Months Ended December 29, 2018 December 30, 2017 Net sales: AMER $ 353,867 $ 299,043 APAC 378,112 346,123 EMEA 72,298 63,832 Elimination of inter-segment sales (38,733 ) (31,704 ) $ 765,544 $ 677,294 Operating income (loss): AMER $ 14,450 $ 10,523 APAC 51,811 50,532 EMEA 996 (1,121 ) Corporate and other costs (30,306 ) (28,377 ) $ 36,951 $ 31,557 Other income (expense): Interest expense (2,249 ) (3,725 ) Interest income 525 1,555 Miscellaneous, net (1,112 ) (346 ) Income before income taxes 34,115 29,041 December 29, September 29, Total assets: AMER $ 718,078 $ 645,791 APAC 989,574 937,510 EMEA 193,002 193,797 Corporate and eliminations 69,029 155,544 $ 1,969,683 $ 1,932,642 |
Guarantees
Guarantees | 3 Months Ended |
Dec. 29, 2018 | |
Guarantees [Abstract] | |
Guarantees | Guarantees The Company offers certain indemnifications under its customer manufacturing agreements. In the normal course of business, the Company may from time to time be obligated to indemnify its customers or its customers’ customers against damages or liabilities arising out of the Company’s negligence, misconduct, breach of contract, or infringement of third party intellectual property rights. Certain agreements have extended broader indemnification, and while most agreements have contractual limits, some do not. However, the Company generally does not provide for such indemnities and seeks indemnification from its customers for damages or liabilities arising out of the Company’s adherence to customers’ specifications or designs or use of materials furnished, or directed to be used, by its customers. The Company does not believe its obligations under such indemnities are material. In the normal course of business, the Company also provides its customers a limited warranty covering workmanship, and in some cases materials, on products manufactured by the Company. Such warranty generally provides that products will be free from defects in the Company’s workmanship and meet mutually agreed-upon specifications for periods generally ranging from 12 months to 24 months. The Company’s obligation is generally limited to correcting, at its expense, any defect by repairing or replacing such defective product. The Company’s warranty generally excludes defects resulting from faulty customer-supplied components, design defects or damage caused by any party or cause other than the Company. The Company provides for an estimate of costs that may be incurred under its limited warranty at the time product revenue is recognized and establishes additional reserves for specifically identified product issues. These costs primarily include labor and materials, as necessary, associated with repair or replacement and are included in the Company's accompanying Condensed Consolidated Balance Sheets in "Other accrued liabilities." The primary factors that affect the Company’s warranty liability include the value and the number of shipped units and historical and anticipated rates of warranty claims. As these factors are impacted by actual experience and future expectations, the Company assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. Below is a table summarizing the activity related to the Company’s limited warranty liability for the three months ended December 29, 2018 and December 30, 2017 (in thousands): Three Months Ended December 29, 2018 December 30, 2017 Reserve balance, beginning of period $ 6,646 $ 4,756 Accruals for warranties issued during the period 1,900 1,017 Settlements (in cash or in kind) during the period (1,255 ) (1,352 ) Reserve balance, end of period $ 7,291 $ 4,421 |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Dec. 29, 2018 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders' Equity On February 14, 2018, the Board of Directors approved a stock repurchase plan under which the Company is authorized to repurchase $200.0 million of its common stock (the "2018 Program"). The 2018 Program commenced upon completion of the 2016 Program, as defined below. During the three months ended December 29, 2018 , the Company repurchased 869,949 shares under this program for $50.1 million , at an average price of $57.53 per share. As of December 29, 2018 , $128.8 million of authority remained under the 2018 Program. On June 6, 2016, the Board of Directors authorized a multi-year stock repurchase program under which the Company was authorized to repurchase up to $150.0 million of its common stock beginning in fiscal 2017 (the "2016 Program"). During the three months ended December 30, 2017 , the Company repurchased 158,466 shares for $9.5 million , at an average price of $60.25 per share. All shares repurchased under the aforementioned programs were recorded as treasury stock. |
Trade Accounts Receivable Sale
Trade Accounts Receivable Sale Programs | 3 Months Ended |
Dec. 29, 2018 | |
Receivables [Abstract] | |
Trade Accounts Receivable Sale Programs | Trade Accounts Receivable Sale Programs The Company has Master Accounts Receivable Purchase Agreements with MUFG Bank, New York Branch, formerly known as The Bank of Tokyo-Mitsubishi UFJ, Ltd. (the "MUFG RPA"), and HSBC Bank (China) Company Limited, Xiamen branch (the "HSBC RPA"), under which the Company may elect to sell receivables, at a discount, on an ongoing basis. As of December 29, 2018 , the maximum facility amounts were $230.0 million and $60.0 million , respectively. The MUFG RPA is subject to expiration on October 3, 2019, but will be automatically extended each year unless any party gives no less than 10 days prior notice that the agreement should not be extended. The terms of the HSBC RPA are generally consistent with the terms of the MUFG RPA. Transfers of receivables under the programs are accounted for as sales and, accordingly, receivables sold under the programs are excluded from accounts receivable on the Condensed Consolidated Balance Sheets and are reflected as cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows. Proceeds from the transfer reflect the face value of the receivables less a discount. The sale discount is recorded within "Miscellaneous, net" in the Condensed Consolidated Statements of Comprehensive Income in the period of the sale. The Company sold $232.5 million and $162.4 million of trade accounts receivable under these programs during the three months ended December 29, 2018 and December 30, 2017 , respectively, in exchange for cash proceeds of $231.2 million and $161.5 million , respectively. |
Revenue From Contracts with Cus
Revenue From Contracts with Customers | 3 Months Ended |
Dec. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Impact of Adopting Topic 606 The Company adopted Topic 606 using the modified retrospective method. The new standard resulted in a change to the timing of revenue recognition for a significant portion of the Company's revenue, whereby revenue is recognized "over time," as products are produced, as opposed to at a "point in time" based upon shipping terms. As a result of adoption of Topic 606, the following adjustments were made to the opening balances of the Company's Condensed Consolidated Balance Sheets (in thousands): Balance at September 29, 2018 Impacts due to adoption of Topic 606 Balance at September 30, 2018 ASSETS Contract assets $ — $ 76,417 $ 76,417 Inventories 794,346 (68,959 ) 725,387 LIABILITIES AND SHAREHOLDERS' EQUITY Other accrued liabilities $ 68,163 $ (357 ) $ 67,806 Retained earnings 1,062,246 7,815 1,070,061 The cumulative effect of applying the new guidance in Topic 606 resulted in the Company increasing its opening Retained Earnings balance by $7.8 million due to certain customer contracts requiring revenue recognition over time. Contract assets in the amount of $76.4 million were recognized due to the recognition of revenue on an over time basis for some customers rather than at a specific point in time. Inventory declined $69.0 million primarily due to earlier recognition of costs related to the contracts for which revenue was recognized on an over time basis. The decline in other accrued liabilities is primarily due to the reclassification of deferred revenue to contract assets for prepayments associated with revenue recognized over time, partially offset by an increase in taxes payable associated with the increase in revenue recognized over time. The effects of the adoption on the Company's Condensed Consolidated Financial Statements for the three months ended December 29, 2018 were as follows (in thousands): Three Months Ended December 29, 2018 As Reported Adjustments due to Topic 606 December 29, 2018 As Adjusted - Without Adoption of ASC Topic 606 Net sales $ 765,544 $ 6,185 $ 759,359 Cost of sales 693,161 5,194 687,967 Gross profit 72,383 991 71,392 Operating income 36,951 991 35,960 Income before income taxes 34,115 991 33,124 Income tax expense 11,889 194 11,695 Net income $ 22,226 $ 797 $ 21,429 December 29, 2018 As Reported Effect of the Adoption of ASC Topic 606 December 29, 2018 As Adjusted - Without Adoption of ASC Topic 606 ASSETS Contract assets $ 82,775 $ 82,775 $ — Inventories 798,271 (74,152 ) 872,423 LIABILITIES AND SHAREHOLDERS' EQUITY Other accrued liabilities $ 83,004 $ 11 $ 82,993 Retained earnings 1,092,287 8,612 1,083,675 Significant Judgments Topic 606 results in a change to the timing of revenue recognition for a significant portion of the Company's revenue, whereby revenue is now recognized "over time" as products are produced, as opposed to at a "point in time" based upon shipping terms. Upon adopting the standard, revenue is now recognized over time for arrangements with customers for which: (i) the Company's performance does not create an asset with an alternative use to the Company, and (ii) the Company has an enforceable right to payment for performance completed to date. Revenue recognized over time will be estimated based on costs incurred to date plus a reasonable profit margin. If either of the two conditions noted above are not met to recognize revenue over time, revenue will be recognized following the transfer of control of such products to the customer, which typically occurs upon shipment or delivery depending on the terms of the underlying arrangement. The Company recognizes revenue when a contract exists and when, or as, it satisfies a performance obligation by transferring control of a product or service to a customer. Contracts are accounted for when they have approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. The Company generally enters into a master services arrangement that establishes the framework under which business will be conducted. These arrangements represent the master terms and conditions of the Company's services that apply to individual orders, but they do not commit the customer to work with, or to continue to work with, the Company nor do they obligate the customer to any specific volume or pricing of purchases. Moreover, these terms can be amended in appropriate situations. Customer purchase orders are received for specific quantities with predominantly fixed pricing and delivery requirements. Thus, for the majority of our contracts, there is no guarantee of any revenue to the Company until a customer submits a purchase order. As a result, the Company generally considers its arrangement with a customer to be the combination of the master services arrangement and the purchase order. Most of the Company's arrangements with customers create a single performance obligation as the promise to transfer the individual manufactured product or service is capable of being distinct. The Company’s performance obligations are satisfied over time as work progresses or at a point in time. A performance obligation is satisfied over time if the Company has an enforceable right to payment, including a reasonable profit margin. Determining if an enforceable right to payment includes a reasonable profit margin requires judgment and is assessed on a contract by contract basis. Generally, there are no subjective customer acceptance requirements or further obligations related to goods or services provided; if such requirements or obligations exist, then a sale is recognized at the time when such requirements are completed and such obligations are fulfilled. The Company does not allow for a general right of return. Net sales include amounts billed to customers for shipping and handling and out-of-pocket expenses. The corresponding shipping and handling costs and out-of-pocket expenses are included in cost of sales. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from net sales. Practical Expedients The Company applied the following practical expedients during the adoption of Topic 606: • The Company elected not to disclose information about remaining performance obligations as its performance obligations generally have expected durations of one year or less. • The Company will account for certain shipping and handling as activities to fulfill the promise to transfer the good, instead of a promised service to its customer. • The Company elected not to adjust the promised amount of consideration for the effects of a significant financing component as the Company expects, at contract inception, that the period between when the entity transfers a promised good or service to a customer and when the customer pays for that good or service will generally be one year or less. Contract Costs For contracts requiring over time revenue recognition, the selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. The Company uses a cost-based input measurement of progress because it best depicts the transfer of assets to the customer, which occurs as costs are incurred during the manufacturing process or as services are rendered. Under the cost-based measure of progress, the extent of progress towards completion is measured based on the costs incurred to date. There were no other costs to obtain or fulfill customer contracts. Disaggregated Revenue The tables below include the Company’s net sales for the three months ended December 29, 2018, disaggregated by geographic reportable segment and market sector (in thousands): Three Months Ended December 29, 2018 Reportable Segment: AMER APAC EMEA Total Market Sector: Healthcare/Life Sciences $ 115,765 $ 152,106 $ 32,707 $ 300,578 Industrial/Commercial 83,718 116,271 19,153 219,142 Communications 90,464 30,975 1,920 123,359 Aerospace/Defense 62,373 42,094 17,998 122,465 External revenue $ 352,320 $ 341,446 $ 71,778 $ 765,544 Inter-segment sales 1,547 36,666 520 38,733 Total sales revenue $ 353,867 $ 378,112 $ 72,298 $ 804,277 For the three months ended December 29, 2018, 89.0% of the Company's revenue was recognized as products and services were transferred over time. Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, contract assets, and deferred revenue on the Company’s accompanying Condensed Consolidated Balance Sheets. Contract Assets: For performance obligations satisfied at a point in time, billing occurs subsequent to revenue recognition, at which point the customer has been billed and the resulting asset is recorded within accounts receivable. For performance obligations satisfied over time as work progresses, the Company has an unconditional right to payment which results in the recognition of contract assets. The following table summarizes the activity in the Company's contract assets during the three months ended December 29, 2018 (in thousands): Contract Assets Beginning balance, September 29, 2018 $ — Cumulative effect adjustment at September 29, 2018 76,417 Revenue recognized 681,712 Amounts collected or invoiced (675,354 ) Ending balance, December 29, 2018 $ 82,775 Deferred Revenue: Deferred revenue is recorded when consideration is received from a customer prior to transferring goods or services to the customer under the terms of the contract, which is included in other accrued liabilities. The advance payment is not considered a significant financing component because it is used to meet working capital demands that can be higher in the early stages of a contract, offset obsolete and excess inventory risks and to protect the company from the other party failing to adequately complete some or all of its obligations under the contract. Deferred revenue is recognized into revenue when all revenue recognition criteria are met. For performance obligations satisfied over time, recognition will occur as work progress, otherwise deferred revenue will be recognized based upon shipping terms. |
Acquisition
Acquisition | 3 Months Ended |
Dec. 29, 2018 | |
Acquisition [Abstract] | |
Acquisition | Acquisition On July 27, 2018, the Company purchased the assets of one of the business lines of Cascade Controls, Inc. ("Cascade"), a new product introduction company in Portland, Oregon, for $12.4 million in cash, subject to certain customary post-closing adjustments. In the three months ended December 29, 2018, the Company received a $1.2 million purchase price adjustment as a result of a post-closing adjustment. |
Basis of Presentation (Policie
Basis of Presentation (Policies) | 3 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: The accompanying Condensed Consolidated Financial Statements included herein have been prepared by Plexus Corp. and its subsidiaries (together “Plexus” or the “Company”) without audit and pursuant to the rules and regulations of the United States (“U.S.”) Securities and Exchange Commission (“SEC”). The accompanying Condensed Consolidated Financial Statements reflect all adjustments, which include normal recurring adjustments necessary for the fair statement of the consolidated financial position of the Company as of December 29, 2018 and September 29, 2018 , and the results of operations for the three months ended December 29, 2018 and December 30, 2017 , and the cash flows and shareholders' equity for the same three month periods. The Company’s fiscal year ends on the Saturday closest to September 30. The Company uses a “4-4-5” weekly accounting system for the interim periods in each quarter. Each quarter, therefore, ends on a Saturday at the end of the 4-4-5 period. Periodically, an additional week must be added to the fiscal year to re-align with the Saturday closest to September 30. All fiscal quarters presented herein included 13 weeks. Certain information and footnote disclosures, normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"), have been condensed or omitted pursuant to the SEC’s rules and regulations dealing with interim financial statements. However, the Company believes that the disclosures made in the Condensed Consolidated Financial Statements included herein are adequate to make the information presented not misleading. It is suggested that these Condensed Consolidated Financial Statements be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s 2018 Annual Report on Form 10-K. |
Recently Adopted and Issued Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements: In October 2016, the Financial Accounting Standards Board (the "FASB") issued ASU 2016-16 related to the income tax consequences of intra-entity transfers of assets other than inventory. The new standard eliminates the exception for an intra-entity transfer of an asset other than inventory and requires an entity to recognize the income tax consequences when the transfer occurs. The Company adopted this guidance under the modified retrospective approach during the first quarter of fiscal 2019. The Company recognized no net impact to its fiscal 2019 opening Retained Earnings balance upon adoption and does not anticipate any material impact to the Company's future Consolidated Financial Statements. In August 2016, the FASB issued ASU 2016-15 related to the classification of certain cash receipts and cash payments, which clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows. The new standard addresses certain issues where diversity in practice was identified. It also amends existing guidance, which is principles based and often requires judgment to determine the appropriate classification of cash flows as operating, investing or financing activities and clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows. The Company adopted this guidance during the first quarter of fiscal 2019 with no material impact to the Company's Condensed Statements of Cash Flows. In May 2014, the FASB issued ASU 2014-09, which requires an entity to recognize revenue relating to contracts with customers that depicts the transfer of promised goods or services to customers in an amount reflecting the consideration to which the entity expects to be entitled in exchange for such goods or services ("Topic 606"). Topic 606 also requires disclosures enabling users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers and is effective for the Company beginning in the first quarter of fiscal year 2019. On September 30, 2018, the Company adopted and applied Topic 606 to all contracts using the modified retrospective method of adoption. Upon adoption, the Company recognized an increase to its beginning Retained Earnings balance of $7.8 million . The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. Refer to Note 13, "Revenue from Contracts with Customers," for further information. Recently Issued Accounting Pronouncements Not Yet Adopted: In February 2016, the FASB issued ASU 2016-02, which requires lessees to recognize most leases on their balance sheets but record expenses on their income statements in a manner similar to current accounting. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. The guidance is effective for the Company beginning in the first quarter of fiscal year 2020. Early adoption is permitted. The Company is currently in the process of assessing the impact of the adoption of the new standard on its Consolidated Financial Statements and plans to adopt the standard in the first quarter of fiscal year 2020. In August 2017, the FASB issued ASU 2017-12 related to the accounting for hedging activities. The pronouncement expands and refines hedge accounting, aligns the recognition and presentation of the effects of hedging instruments and hedge items in the financial statements, and includes certain targeted improvements to ease the application of current guidance related to the assessment of hedge effectiveness. The guidance is effective for the Company beginning in the first quarter of fiscal year 2020. Early adoption is permitted. The Company is currently in the process of assessing the impact of the adoption of the new standard on its Consolidated Financial Statements and the timing of adoption. The Company believes that no other recently issued accounting standards will have a material impact on its Consolidated Financial Statements, or apply to its operations. |
Fair Value of Financial Instruments | Fair Value Measurements: Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (or exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses quoted market prices when available or discounted cash flows to calculate fair value. The accounting guidance establishes a fair value hierarchy based on three levels of inputs that may be used to measure fair value. The input levels are: Level 1: Quoted (observable) market prices in active markets for identical assets or liabilities. Level 2: Inputs other than Level 1 that are observable, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the asset or liability. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories as of December 29, 2018 and September 29, 2018 consisted of the following (in thousands): December 29, 2018 September 29, 2018 Raw materials $ 637,324 $ 579,377 Work-in-process 70,956 102,337 Finished goods 89,991 112,632 Total inventories, net $ 798,271 $ 794,346 |
Debt, Capital Lease Obligatio_2
Debt, Capital Lease Obligations and Other Financing (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Debt and Capital Lease Obligations [Abstract] | |
Schedule of Debt and Capital Lease Obligations | Debt and capital lease obligations as of December 29, 2018 and September 29, 2018 , consisted of the following (in thousands): December 29, 2018 September 29, 2018 4.05% Senior Notes, due June 15, 2025 $ 100,000 $ 100,000 4.22% Senior Notes, due June 15, 2028 50,000 50,000 Borrowings under the credit facility 3,000 — Capital lease and other financing obligations 44,368 39,857 Unamortized deferred financing fees (1,168 ) (1,240 ) Total obligations 196,200 188,617 Less: current portion (8,633 ) (5,532 ) Long-term debt and capital lease obligations, net of current portion $ 187,567 $ 183,085 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Values of Derivative Instruments | The tables below present information regarding the fair values of derivative instruments and the effects of derivative instruments on the Company’s Condensed Consolidated Financial Statements: Fair Values of Derivative Instruments In thousands of dollars Asset Derivatives Liability Derivatives December 29, September 29, December 29, September 29, Derivatives designated as hedging instruments Balance Sheet Classification Fair Value Fair Value Balance Sheet Classification Fair Value Fair Value Foreign currency forward contracts Prepaid expenses and other $ 47 $ 292 Other accrued liabilities $ 1,361 $ 1,984 Fair Values of Derivative Instruments In thousands of dollars Asset Derivatives Liability Derivatives December 29, September 29, December 29, September 29, Derivatives not designated as hedging instruments Balance Sheet Classification Fair Value Fair Value Balance Sheet Classification Fair Value Fair Value Foreign currency forward contracts Prepaid expenses and other $ 460 $ 42 Other accrued liabilities $ 68 $ 81 |
Schedule of Derivative Impact on Accumulated Other Comprehensive Income (Loss) | Derivative Impact on Accumulated Other Comprehensive Income (Loss) ("OCI") for the Three Months Ended In thousands of dollars Derivatives in Cash Flow Hedging Relationships Amount of (Loss) Gain Recognized in OCI on Derivatives (Effective Portion) December 29, 2018 December 30, 2017 Foreign currency forward contracts $ (388 ) $ 2,714 |
Schedule of Derivative Impact on Gain (Loss) Recognized in Income (Designated as Hedging Instruments) | Derivative Impact on Gain (Loss) Recognized in Income for the Three Months Ended In thousands of dollars Derivatives in Cash Flow Hedging Relationships Classification of (Loss) Gain Reclassified from Accumulated OCI into Income (Effective Portion) Amount of (Loss) Gain Reclassified from Accumulated OCI into Income (Effective Portion) December 29, 2018 December 30, 2017 Foreign currency forward contracts Selling and administrative expenses $ (82 ) $ 105 Foreign currency forward contracts Cost of sales $ (684 ) $ 991 Treasury Rate Locks Interest expense $ — $ 79 |
Schedule of Derivative Impact on Gain (Loss) Recognized in Income (Not Designated as Hedging Instruments) | Derivatives Not Designated as Hedging Instruments Location of (Loss) Gain Recognized on Derivatives in Income Amount of Gain (Loss) on Derivatives Recognized in Income December 29, 2018 December 30, 2017 Foreign currency forward contracts Miscellaneous, net $ 787 $ (535 ) |
Schedule of Derivatives Fair Value Measurements Using Input Levels | The following table lists the fair values of liabilities of the Company’s derivatives as of December 29, 2018 and September 29, 2018 , by input level: Fair Value Measurements Using Input Levels (Liability)/Asset In thousands of dollars December 29, 2018 Level 1 Level 2 Level 3 Total Derivatives Forward currency forward contracts $ — $ (922 ) $ — $ (922 ) September 29, 2018 Derivatives Forward currency forward contracts $ — $ (1,731 ) $ — $ (1,731 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Amounts Utilized in Computation of Basic and Diluted Earnings Per Share | The following is a reconciliation of the amounts utilized in the computation of basic and diluted earnings per share for the three months ended December 29, 2018 and December 30, 2017 (in thousands, except per share amounts): Three Months Ended December 29, 2018 December 30, 2017 Net income (loss) 22,226 (98,493 ) Basic weighted average common shares outstanding 31,403 33,567 Dilutive effect of share-based awards outstanding 883 — Diluted weighted average shares outstanding 32,286 33,567 Earnings (loss) per share: Basic $ 0.71 $ (2.93 ) Diluted $ 0.69 $ (2.93 ) |
Reportable Segments (Tables)
Reportable Segments (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segments Information | Information about the Company’s three reportable segments for the three months ended December 29, 2018 and December 30, 2017 , respectively, is as follows (in thousands): Three Months Ended December 29, 2018 December 30, 2017 Net sales: AMER $ 353,867 $ 299,043 APAC 378,112 346,123 EMEA 72,298 63,832 Elimination of inter-segment sales (38,733 ) (31,704 ) $ 765,544 $ 677,294 Operating income (loss): AMER $ 14,450 $ 10,523 APAC 51,811 50,532 EMEA 996 (1,121 ) Corporate and other costs (30,306 ) (28,377 ) $ 36,951 $ 31,557 Other income (expense): Interest expense (2,249 ) (3,725 ) Interest income 525 1,555 Miscellaneous, net (1,112 ) (346 ) Income before income taxes 34,115 29,041 December 29, September 29, Total assets: AMER $ 718,078 $ 645,791 APAC 989,574 937,510 EMEA 193,002 193,797 Corporate and eliminations 69,029 155,544 $ 1,969,683 $ 1,932,642 |
Guarantees (Tables)
Guarantees (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Guarantees [Abstract] | |
Schedule of Activity Related to Limited Warranty Liability | Below is a table summarizing the activity related to the Company’s limited warranty liability for the three months ended December 29, 2018 and December 30, 2017 (in thousands): Three Months Ended December 29, 2018 December 30, 2017 Reserve balance, beginning of period $ 6,646 $ 4,756 Accruals for warranties issued during the period 1,900 1,017 Settlements (in cash or in kind) during the period (1,255 ) (1,352 ) Reserve balance, end of period $ 7,291 $ 4,421 |
Revenue From Contracts with C_2
Revenue From Contracts with Customers (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Impacts of Adoption of New Accounting Pronouncement | As a result of adoption of Topic 606, the following adjustments were made to the opening balances of the Company's Condensed Consolidated Balance Sheets (in thousands): Balance at September 29, 2018 Impacts due to adoption of Topic 606 Balance at September 30, 2018 ASSETS Contract assets $ — $ 76,417 $ 76,417 Inventories 794,346 (68,959 ) 725,387 LIABILITIES AND SHAREHOLDERS' EQUITY Other accrued liabilities $ 68,163 $ (357 ) $ 67,806 Retained earnings 1,062,246 7,815 1,070,061 The effects of the adoption on the Company's Condensed Consolidated Financial Statements for the three months ended December 29, 2018 were as follows (in thousands): Three Months Ended December 29, 2018 As Reported Adjustments due to Topic 606 December 29, 2018 As Adjusted - Without Adoption of ASC Topic 606 Net sales $ 765,544 $ 6,185 $ 759,359 Cost of sales 693,161 5,194 687,967 Gross profit 72,383 991 71,392 Operating income 36,951 991 35,960 Income before income taxes 34,115 991 33,124 Income tax expense 11,889 194 11,695 Net income $ 22,226 $ 797 $ 21,429 December 29, 2018 As Reported Effect of the Adoption of ASC Topic 606 December 29, 2018 As Adjusted - Without Adoption of ASC Topic 606 ASSETS Contract assets $ 82,775 $ 82,775 $ — Inventories 798,271 (74,152 ) 872,423 LIABILITIES AND SHAREHOLDERS' EQUITY Other accrued liabilities $ 83,004 $ 11 $ 82,993 Retained earnings 1,092,287 8,612 1,083,675 |
Schedule of Disaggregation of Revenue | The tables below include the Company’s net sales for the three months ended December 29, 2018, disaggregated by geographic reportable segment and market sector (in thousands): Three Months Ended December 29, 2018 Reportable Segment: AMER APAC EMEA Total Market Sector: Healthcare/Life Sciences $ 115,765 $ 152,106 $ 32,707 $ 300,578 Industrial/Commercial 83,718 116,271 19,153 219,142 Communications 90,464 30,975 1,920 123,359 Aerospace/Defense 62,373 42,094 17,998 122,465 External revenue $ 352,320 $ 341,446 $ 71,778 $ 765,544 Inter-segment sales 1,547 36,666 520 38,733 Total sales revenue $ 353,867 $ 378,112 $ 72,298 $ 804,277 |
Schedule of Contract Assets | The following table summarizes the activity in the Company's contract assets during the three months ended December 29, 2018 (in thousands): Contract Assets Beginning balance, September 29, 2018 $ — Cumulative effect adjustment at September 29, 2018 76,417 Revenue recognized 681,712 Amounts collected or invoiced (675,354 ) Ending balance, December 29, 2018 $ 82,775 |
Basis of Presentation Narrative
Basis of Presentation Narrative (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Sep. 30, 2018 | Sep. 29, 2018 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Retained earnings | $ 1,092,287 | $ 1,070,061 | $ 1,062,246 |
ASU 2014-09 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Retained earnings | $ 8,612 | ||
Adjustments due to the adoption of ASU 2014-09 | ASU 2014-09 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Retained earnings | $ 7,815 |
Inventories - Schedule of Inve
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Sep. 30, 2018 | Sep. 29, 2018 |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 637,324 | $ 579,377 | |
Work-in-process | 70,956 | 102,337 | |
Finished goods | 89,991 | 112,632 | |
Total inventories, net | $ 798,271 | $ 725,387 | $ 794,346 |
Inventories - Narrative (Detai
Inventories - Narrative (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Sep. 29, 2018 |
Inventory [Line Items] | ||
Customer deposits | $ 112,663 | $ 90,782 |
Inventory | ||
Inventory [Line Items] | ||
Customer deposits | $ 110,700 | $ 87,700 |
Debt, Capital Lease Obligatio_3
Debt, Capital Lease Obligations and Other Financing - Schedule of Debt and Capital Lease Obligations (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Sep. 29, 2018 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 153,000 | $ 150,000 |
Capital lease and other financing obligations | 44,368 | 39,857 |
Unamortized deferred financing fees | (1,168) | (1,240) |
Total obligations | 196,200 | 188,617 |
Less: current portion | (8,633) | (5,532) |
Long-term debt and capital lease obligations, net of current portion | 187,567 | 183,085 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 150,000 | $ 150,000 |
Senior Notes | 4.05% Senior Notes, due June 15, 2025 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.05% | 4.05% |
Long-term debt, gross | $ 100,000 | $ 100,000 |
Senior Notes | 4.22% Senior Notes, due June 15, 2028 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.22% | 4.22% |
Long-term debt, gross | $ 50,000 | $ 50,000 |
Line of Credit | Borrowings under the credit facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 3,000 |
Debt, Capital Lease Obligatio_4
Debt, Capital Lease Obligations and Other Financing - Narrative (Details) - USD ($) | 3 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Sep. 29, 2018 | |
Debt Instrument [Line Items] | |||
Amount of debt outstanding | $ 153,000,000 | $ 150,000,000 | |
Amount borrowed | 231,500,000 | $ 216,314,000 | |
Debt, Fair Value | 150,500,000 | 151,900,000 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum commitment | 300,000,000 | ||
Amount credit facility may be further increased | 500,000,000 | ||
Highest daily borrowings | 107,500,000 | ||
Average daily borrowings | $ 47,600,000 | ||
Annual commitment fee | 0.175% | ||
Senior Notes | |||
Debt Instrument [Line Items] | |||
Amount of debt outstanding | $ 150,000,000 | 150,000,000 | |
Senior Notes | 4.05% Senior Notes, due June 15, 2025 | |||
Debt Instrument [Line Items] | |||
Amount of debt outstanding | $ 100,000,000 | $ 100,000,000 | |
Interest rate | 4.05% | 4.05% | |
Senior Notes | 4.22% Senior Notes, due June 15, 2028 | |||
Debt Instrument [Line Items] | |||
Amount of debt outstanding | $ 50,000,000 | $ 50,000,000 | |
Interest rate | 4.22% | 4.22% | |
Line of Credit | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Amount of debt outstanding | $ 3,000,000 | ||
Amount borrowed | 231,500,000 | ||
Amount repaid | $ 228,500,000 |
Derivatives - Schedule of Fair
Derivatives - Schedule of Fair Values of Derivative Instruments (Details) - Foreign currency forward contracts - USD ($) $ in Thousands | Dec. 29, 2018 | Sep. 29, 2018 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 400 | |
Liability Derivatives | $ 100 | |
Prepaid expenses and other | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 47 | 292 |
Prepaid expenses and other | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 460 | 42 |
Other accrued liabilities | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 1,361 | 1,984 |
Other accrued liabilities | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 68 | $ 81 |
Derivatives - Schedule of Deri
Derivatives - Schedule of Derivative Impact on Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Foreign currency forward contracts | Derivatives designated as hedging instruments | Derivatives in Cash Flow Hedging Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Loss) Gain Recognized in OCI on Derivatives (Effective Portion) | $ (388) | $ 2,714 |
Derivatives - Schedule of De_2
Derivatives - Schedule of Derivative Impact on Gain (Loss) Recognized in Income (Designated as Hedging Instruments) (Details) - Derivatives designated as hedging instruments - Derivatives in Cash Flow Hedging Relationships - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Foreign currency forward contracts | Selling and administrative expenses | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Loss) Gain Reclassified from Accumulated OCI into Income (Effective Portion) | $ (82) | $ 105 |
Foreign currency forward contracts | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Loss) Gain Reclassified from Accumulated OCI into Income (Effective Portion) | (684) | 991 |
Treasury Rate Locks | Interest expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Loss) Gain Reclassified from Accumulated OCI into Income (Effective Portion) | $ 0 | $ 79 |
Derivatives - Schedue of Deriva
Derivatives - Schedue of Derivative Impact on Gain (Loss) Recognized in Income (Not Designated as Hedging Instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Derivatives not designated as hedging instruments | Foreign currency forward contracts | Miscellaneous, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) on Derivatives Recognized in Income | $ 787 | $ (535) |
Derivatives - Schedule of De_3
Derivatives - Schedule of Derivatives Fair Value Measurements Using Input Levels (Details) - Recurring - Foreign currency forward contracts - USD ($) $ in Thousands | Dec. 29, 2018 | Sep. 29, 2018 |
Derivative liability | $ 922 | $ 1,731 |
Level 1 | ||
Derivative asset | 0 | 0 |
Level 2 | ||
Derivative liability | 922 | 1,731 |
Level 3 | ||
Derivative asset | $ 0 | $ 0 |
Derivatives - Narrative (Detai
Derivatives - Narrative (Details) - USD ($) | 3 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Sep. 29, 2018 | |
Estimated unrealized losses, net of tax, expected to be reclassified in next 12 months | $ 1,300,000 | ||
Gains (losses) recognized in income for derivatives related to ineffective portions and amounts excluded from effectiveness testing | 0 | $ 0 | |
Derivatives designated as hedging instruments | Derivatives in Cash Flow Hedging Relationships | Foreign currency forward contracts | |||
Notional amount of forward exchange contracts | 74,100,000 | $ 74,000,000 | |
Fair value of derivative liability | 1,300,000 | 1,700,000 | |
Derivatives not designated as hedging instruments | Foreign currency forward contracts | |||
Notional amount of forward exchange contracts | 34,600,000 | 28,600,000 | |
Fair value of derivative asset | $ 400,000 | ||
Fair value of derivative liability | $ 100,000 |
Income Taxes - Narrative (Deta
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | Sep. 29, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense | $ 11,889 | $ 127,534 | |
Tax Reform Income Tax Expense (Benefit) | 92,900 | $ 85,900 | |
Tax Cuts and Jobs Act of 2017, Tax on Deemed Repatriation of Foreign Earnings | 61,200 | ||
Deferred Tax Liabilities, Undistributed Foreign Earnings | 21,800 | ||
Other tax expense (benefit) | $ (2,900) | ||
Tax Cuts and Jobs Act of 2017 Income Tax Expense, Increase | $ 7,000 | ||
Effective income tax rate | 34.90% | 439.20% | |
Unrecognized tax benefits | $ 1,700 |
Earnings Per Share - Reconcili
Earnings Per Share - Reconciliation of Amounts Utilized in Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ 22,226 | $ (98,493) |
Basic weighted average common shares outstanding (in shares) | 31,403 | 33,567 |
Dilutive effect of share-based awards outstanding (in shares) | 883 | 0 |
Diluted weighted average shares outstanding (in shares) | 32,286 | 33,567 |
Earnings (loss) per share: | ||
Basic (in dollars per share) | $ 0.71 | $ (2.93) |
Diluted (in dollars per share) | $ 0.69 | $ (2.93) |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Diluted Earnings Per Share | 1.1 | |
Share-based awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Diluted Earnings Per Share | 0.1 | 0 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Expense | $ 4.8 | $ 3.9 |
Performance Shares [Member] | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares that may be issued (in shares) | 0 | |
Performance Shares [Member] | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares that may be issued (in shares) | 400,000 |
Reportable Segments - Reportab
Reportable Segments - Reportable Segments Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Sep. 29, 2018 | |
Net sales | $ 765,544 | $ 677,294 | |
Operating income (loss): | 36,951 | 31,557 | |
Interest expense | (2,249) | (3,725) | |
Interest income | 525 | 1,555 | |
Miscellaneous, net | (1,112) | (346) | |
Income before income taxes | 34,115 | 29,041 | |
Total assets | 1,969,683 | $ 1,932,642 | |
Elimination of inter-segment sales | |||
Net sales | (38,733) | (31,704) | |
Corporate | |||
Operating income (loss): | (30,306) | (28,377) | |
Corporate and eliminations | |||
Total assets | 69,029 | 155,544 | |
AMER | Operating Segments | |||
Net sales | 353,867 | 299,043 | |
Operating income (loss): | 14,450 | 10,523 | |
Total assets | 718,078 | 645,791 | |
APAC | Operating Segments | |||
Net sales | 378,112 | 346,123 | |
Operating income (loss): | 51,811 | 50,532 | |
Total assets | 989,574 | 937,510 | |
EMEA | Operating Segments | |||
Net sales | 72,298 | 63,832 | |
Operating income (loss): | 996 | $ (1,121) | |
Total assets | $ 193,002 | $ 193,797 |
Reportable Segments - Narrativ
Reportable Segments - Narrative (Details) | 3 Months Ended |
Dec. 29, 2018segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Guarantees - Narrative (Details
Guarantees - Narrative (Details) | 3 Months Ended |
Dec. 29, 2018 | |
Minimum | |
Product Warranty Liability [Line Items] | |
Product warranty specification period | 12 months |
Maximum | |
Product Warranty Liability [Line Items] | |
Product warranty specification period | 24 months |
Guarantees - Schedule of Activ
Guarantees - Schedule of Activity Related to Limited Warranty Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Limited warranty liability, beginning balance | $ 6,646 | $ 4,756 |
Accruals for warranties issued during the period | 1,900 | 1,017 |
Settlements (in cash or in kind) during the period | (1,255) | (1,352) |
Limited warranty liability, ending balance | $ 7,291 | $ 4,421 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Feb. 14, 2018 | Jun. 06, 2016 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Amount repurchased | $ 50,051 | $ 9,547 | ||
2018 Stock Repurchase Program [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Authorized repurchase amount | $ 200,000 | |||
Amount repurchased (in shares) | 869,949 | |||
Amount repurchased | $ 50,100 | |||
Average repurchase price (in dollars per share) | $ 57.53 | |||
Remaining authorized repurchase amount | $ 128,800 | |||
2016 Stock Repurchase Program [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Authorized repurchase amount | $ 150,000 | |||
Amount repurchased (in shares) | 158,466 | |||
Amount repurchased | $ 9,500 | |||
Average repurchase price (in dollars per share) | $ 60.25 |
Trade Accounts Receivable Sal_2
Trade Accounts Receivable Sale Programs - Narrative (Details) - USD ($) | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Amount Received From Trade Accounts Receivable Sold To Third Party [Line Items] | ||
Trade accounts receivable sold | $ 232,500,000 | $ 162,400,000 |
Cash proceeds | 231,200,000 | $ 161,500,000 |
MUFG RPA | ||
Amount Received From Trade Accounts Receivable Sold To Third Party [Line Items] | ||
Maximum facility amount | $ 230,000,000 | |
Minimum prior notice required to cancel automatic extension | 10 days | |
HSBC RPA | ||
Amount Received From Trade Accounts Receivable Sold To Third Party [Line Items] | ||
Maximum facility amount | $ 60,000,000 |
Revenue From Contracts with C_3
Revenue From Contracts with Customers - Schedule of Impacts of Adoption of New Accounting Pronouncement (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Sep. 30, 2018 | Sep. 29, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Contract assets | $ 82,775 | $ 76,417 | $ 0 | |
Inventories, net | 798,271 | 725,387 | 794,346 | |
Other accrued liabilities | 83,004 | 67,806 | 68,163 | |
Retained earnings | 1,092,287 | 1,070,061 | $ 1,062,246 | |
Net sales | 765,544 | $ 677,294 | ||
Cost of sales | 693,161 | 613,771 | ||
Gross profit | 72,383 | 63,523 | ||
Operating income | 36,951 | 31,557 | ||
Income before income taxes | 34,115 | 29,041 | ||
Income tax expense | 11,889 | 127,534 | ||
Net income (loss) | 22,226 | $ (98,493) | ||
ASU 2014-09 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Contract assets | 82,775 | |||
Inventories, net | (74,152) | |||
Other accrued liabilities | 11 | |||
Retained earnings | 8,612 | |||
Net sales | 6,185 | |||
Cost of sales | 5,194 | |||
Gross profit | 991 | |||
Operating income | 991 | |||
Income before income taxes | 991 | |||
Income tax expense | 194 | |||
Net income (loss) | 797 | |||
Balance without the adoption of ASU 2014-09 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Contract assets | 0 | |||
Inventories, net | 872,423 | |||
Other accrued liabilities | 82,993 | |||
Retained earnings | 1,083,675 | |||
Net sales | 759,359 | |||
Cost of sales | 687,967 | |||
Gross profit | 71,392 | |||
Operating income | 35,960 | |||
Income before income taxes | 33,124 | |||
Income tax expense | 11,695 | |||
Net income (loss) | $ 21,429 | |||
Adjustments due to the adoption of ASU 2014-09 | ASU 2014-09 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Contract assets | 76,417 | |||
Inventories, net | (68,959) | |||
Other accrued liabilities | (357) | |||
Retained earnings | $ 7,815 |
Revenue From Contracts with C_4
Revenue From Contracts with Customers - Schedule of Disaggregation of Revenue (Details) $ in Thousands | 3 Months Ended |
Dec. 29, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer | $ 804,277 |
Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer | 765,544 |
Elimination of inter-segment sales | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer | 38,733 |
Healthcare/Life Sciences | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer | 300,578 |
Industrial/Commercial | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer | 219,142 |
Communications | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer | 123,359 |
Aerospace/Defense | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer | 122,465 |
AMER | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer | 353,867 |
AMER | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer | 352,320 |
AMER | Elimination of inter-segment sales | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer | 1,547 |
AMER | Healthcare/Life Sciences | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer | 115,765 |
AMER | Industrial/Commercial | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer | 83,718 |
AMER | Communications | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer | 90,464 |
AMER | Aerospace/Defense | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer | 62,373 |
APAC | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer | 378,112 |
APAC | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer | 341,446 |
APAC | Elimination of inter-segment sales | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer | 36,666 |
APAC | Healthcare/Life Sciences | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer | 152,106 |
APAC | Industrial/Commercial | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer | 116,271 |
APAC | Communications | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer | 30,975 |
APAC | Aerospace/Defense | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer | 42,094 |
EMEA | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer | 72,298 |
EMEA | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer | 71,778 |
EMEA | Elimination of inter-segment sales | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer | 520 |
EMEA | Healthcare/Life Sciences | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer | 32,707 |
EMEA | Industrial/Commercial | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer | 19,153 |
EMEA | Communications | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer | 1,920 |
EMEA | Aerospace/Defense | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer | $ 17,998 |
Revenue From Contracts with C_5
Revenue From Contracts with Customers - Schedule of Contract Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 29, 2018 | Sep. 30, 2018 | Sep. 29, 2018 | |
Change in Contract with Customer Assets [Line Items] | |||
Contract assets | $ 82,775 | $ 76,417 | $ 0 |
Revenue recognized | 681,712 | ||
Amounts collected or invoiced | (675,354) | ||
Balance without the adoption of ASU 2014-09 | |||
Change in Contract with Customer Assets [Line Items] | |||
Contract assets | 0 | ||
ASU 2014-09 | |||
Change in Contract with Customer Assets [Line Items] | |||
Contract assets | $ 82,775 | ||
ASU 2014-09 | Adjustments due to the adoption of ASU 2014-09 | |||
Change in Contract with Customer Assets [Line Items] | |||
Contract assets | $ 76,417 |
Revenue From Contracts with C_6
Revenue From Contracts with Customers - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 29, 2018 | Sep. 30, 2018 | Sep. 29, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Retained earnings | $ 1,092,287 | $ 1,070,061 | $ 1,062,246 |
Contract assets | 82,775 | 76,417 | 0 |
Inventories, net | $ 798,271 | 725,387 | $ 794,346 |
Transferred over Time [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Percentage of Revenue | 89.00% | ||
ASU 2014-09 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Retained earnings | $ 8,612 | ||
Contract assets | 82,775 | ||
Inventories, net | $ (74,152) | ||
Adjustments due to the adoption of ASU 2014-09 | ASU 2014-09 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Retained earnings | 7,815 | ||
Contract assets | 76,417 | ||
Inventories, net | $ (68,959) |
Acquisition - Narrative (Detail
Acquisition - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | Sep. 29, 2018 | |
Acquisition [Abstract] | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 12,400 | ||
Business acquisition | $ 1,180 | $ 0 |