Document and entity information
Document and entity information Document - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Nov. 06, 2017 | Mar. 31, 2017 | |
Entity Information [Line Items] | |||
Document Period End Date | Sep. 30, 2017 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Registrant Name | SANMINA CORP | ||
Entity Central Index Key | 897,723 | ||
Document Type | 10-K | ||
Entity Common Stock, Shares Outstanding | 72,020,778 | ||
Entity Public Float | $ 2,966.5 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Oct. 01, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 406,661 | $ 398,288 |
Accounts receivable, net of allowances of $14,334 and $15,081 as of September 30, 2017 and October 1, 2016, respectively | 1,110,334 | 973,680 |
Inventories | 1,051,669 | 946,239 |
Prepaid expenses and other current assets | 47,586 | 57,445 |
Total current assets | 2,616,250 | 2,375,652 |
Property, plant and equipment, net | 640,275 | 617,524 |
Deferred income tax assets, net | 476,554 | 514,314 |
Other | 114,284 | 117,732 |
Total assets | 3,847,363 | 3,625,222 |
Current liabilities: | ||
Accounts payable | 1,280,106 | 1,121,135 |
Accrued liabilities | 116,582 | 124,386 |
Accrued payroll and related benefits | 130,939 | 127,326 |
Short-term debt, including current portion of long-term debt | 88,416 | 28,416 |
Total current liabilities | 1,616,043 | 1,401,263 |
Long-term liabilities: | ||
Long-term debt | 391,447 | 434,059 |
Other | 192,189 | 180,097 |
Total long-term liabilities | 583,636 | 614,156 |
Commitments and Contingencies (Note 7) | ||
Stockholders' equity: | ||
Preferred stock, $.01 par value, authorized 5,000 shares, none issued and outstanding | 0 | 0 |
Common stock, $.01 par value, authorized 166,667 shares; 101,672 and 98,141 shares issued and 71,664 and 73,031 shares outstanding as of September 30, 2017 and October 1, 2016, respectively | 717 | 730 |
Treasury stock, 30,008 and 25,110 shares as of September 30, 2017 and October 1, 2016, respectively, at cost | (633,740) | (456,796) |
Additional paid-in capital | 6,184,371 | 6,119,779 |
Accumulated other comprehensive income | 76,794 | 65,381 |
Accumulated deficit | (3,980,458) | (4,119,291) |
Total stockholders' equity | 1,647,684 | 1,609,803 |
Total liabilities and stockholders' equity | $ 3,847,363 | $ 3,625,222 |
Balance sheet parenthetical (Pa
Balance sheet parenthetical (Parentheticals) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2017 | Oct. 01, 2016 |
Statement of Financial Position [Abstract] | ||
Accounts receivable allowances | $ 14,334 | $ 15,081 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 5,000 | 5,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 166,667 | 166,667 |
Common Stock, Shares, Issued | 101,672 | 98,141 |
Common Stock, Shares, Outstanding | 71,664 | 73,031 |
Treasury Stock, Shares | 30,008 | 25,110 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Net sales | $ 6,868,619 | $ 6,481,181 | $ 6,374,541 |
Cost of sales | 6,348,708 | 5,966,899 | 5,890,685 |
Gross profit | 519,911 | 514,282 | 483,856 |
Operating expenses: | |||
Selling, general and administrative | 251,568 | 244,604 | 239,288 |
Research and development | 33,716 | 37,746 | 33,083 |
Other | 8,160 | 7,147 | 8,384 |
Total operating expenses | 293,444 | 289,497 | 280,755 |
Operating income | 226,467 | 224,785 | 203,101 |
Interest income | 1,265 | 680 | 1,096 |
Interest expense | (21,934) | (24,911) | (25,011) |
Other income, net | 7,682 | 4,063 | 767 |
Loss on extinguishments of debt | 0 | 0 | (3,760) |
Interest and other, net | (12,987) | (20,168) | (26,908) |
Income before income taxes | 213,480 | 204,617 | 176,193 |
Provision for (benefit from) income taxes | 74,647 | 16,779 | (201,068) |
Net income | $ 138,833 | $ 187,838 | $ 377,261 |
Net income per share: | |||
Basic | $ 1.86 | $ 2.50 | $ 4.61 |
Diluted | $ 1.78 | $ 2.38 | $ 4.41 |
Weighted-average shares used in computing per share amounts: | |||
Basic | 74,481 | 75,094 | 81,818 |
Diluted | 78,128 | 78,787 | 85,641 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Net income | $ 138,833 | $ 187,838 | $ 377,261 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | 588 | 3,734 | (13,460) |
Derivative financial instruments: | |||
Changes in unrealized gain (loss) | 819 | (2,326) | (5,995) |
Amount reclassified into net income | (592) | 2,570 | 5,887 |
Pension benefit plans: | |||
Changes in unrecognized net actuarial gain (loss) and unrecognized transition cost | 8,833 | (6,327) | (3,653) |
Amortization of actuarial gain (loss) and transition cost | 1,765 | 1,159 | 876 |
Total other comprehensive income (loss) | 11,413 | (1,190) | (16,345) |
Comprehensive income | $ 150,246 | $ 186,648 | $ 360,916 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock And Additional Paid in Capital | Number of Common Shares | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Deficit |
Balance at Sep. 27, 2014 | $ 1,246,755 | $ 6,065,086 | $ (216,857) | $ 82,916 | $ (4,684,390) | |
Common Stock, Shares, Issued at Sep. 27, 2014 | 95,733 | |||||
Treasury Stock, Shares at Sep. 27, 2014 | (13,576) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuances under stock plans | 1,727 | |||||
Issuances Under Stock Plans, Value | 18,724 | 18,724 | ||||
Stock-based compensation | 20,653 | 20,653 | ||||
Repurchases of Treasury Stock, Shares | (4,672) | |||||
Repurchases of Treasury Stock, Value | (97,693) | $ (97,693) | ||||
Stock Repurchased and Retired During Period, Shares | (1,154) | |||||
Repurchase and retirement of treasury stock, value | (25,069) | (25,069) | ||||
Acquisition of non-controlling interest | (3,815) | (3,815) | ||||
Other comprehensive income | (16,345) | (16,345) | ||||
Net income | 377,261 | 377,261 | ||||
Common Stock, Shares, Issued at Oct. 03, 2015 | 96,306 | |||||
Treasury Stock, Shares at Oct. 03, 2015 | (18,248) | |||||
Balance at Oct. 03, 2015 | 1,520,471 | 6,075,579 | $ (314,550) | 66,571 | (4,307,129) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuances under stock plans | 1,835 | |||||
Issuances Under Stock Plans, Value | 18,221 | 18,221 | ||||
Stock-based compensation | 26,709 | 26,709 | ||||
Repurchases of Treasury Stock, Shares | (6,862) | |||||
Repurchases of Treasury Stock, Value | (142,246) | $ (142,246) | ||||
Other comprehensive income | (1,190) | (1,190) | ||||
Net income | $ 187,838 | 187,838 | ||||
Common Stock, Shares, Issued at Oct. 01, 2016 | 98,141 | 98,141 | ||||
Treasury Stock, Shares at Oct. 01, 2016 | (25,110) | (25,110) | ||||
Balance at Oct. 01, 2016 | $ 1,609,803 | 6,120,509 | $ (456,796) | 65,381 | (4,119,291) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuances under stock plans | 3,531 | |||||
Issuances Under Stock Plans, Value | 27,129 | 27,129 | ||||
Stock-based compensation | 37,450 | 37,450 | ||||
Repurchases of Treasury Stock, Shares | (4,898) | |||||
Repurchases of Treasury Stock, Value | (176,944) | $ (176,944) | ||||
Other comprehensive income | 11,413 | 11,413 | ||||
Net income | $ 138,833 | 138,833 | ||||
Common Stock, Shares, Issued at Sep. 30, 2017 | 101,672 | 101,672 | ||||
Treasury Stock, Shares at Sep. 30, 2017 | (30,008) | (30,008) | ||||
Balance at Sep. 30, 2017 | $ 1,647,684 | $ 6,185,088 | $ (633,740) | $ 76,794 | $ (3,980,458) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | ||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | ||||
Net income | $ 138,833 | $ 187,838 | $ 377,261 | |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ||||
Depreciation and amortization | 118,751 | 111,910 | 100,567 | |
Stock-based compensation expense | 37,920 | 26,907 | 20,653 | |
Deferred income taxes | 37,892 | (16,829) | (242,274) | |
Other, net | 4,188 | 1,587 | 280 | |
Changes in operating assets and liabilities, net of acquisitions: | ||||
Accounts receivable | (136,072) | (36,913) | 40,207 | |
Inventories | (104,468) | 5,614 | (13,726) | |
Prepaid expenses and other assets | 12,303 | 68 | 11,117 | |
Accounts payable | 130,648 | 95,193 | (116,899) | |
Accrued liabilities | 10,966 | 14,741 | (2,290) | |
Cash provided by operating activities | 250,961 | 390,116 | 174,896 | |
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES: | ||||
Purchases of property, plant and equipment | (111,833) | (120,400) | (119,097) | |
Proceeds from sales of property, plant and equipment | 3,935 | 4,740 | 30,561 | |
Cash paid for business combinations, net of cash acquired | 0 | (58,878) | (13,887) | |
Cash used in investing activities | (107,898) | (174,538) | (102,423) | |
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES: | ||||
Repayments of short-term borrowings (1) | 0 | (18,014) | [1] | (10,221) |
Proceeds from revolving credit facility borrowings | 932,770 | 2,962,450 | 2,692,900 | |
Repayments of revolving credit facility borrowings | (872,770) | (3,047,450) | (2,582,900) | |
Repayments of long-term debt | (43,416) | (4,382) | (123,994) | |
Net proceeds from stock issuances | 27,129 | 18,221 | 18,724 | |
Repurchases of common stock | (176,944) | (142,246) | (122,762) | |
Other, net | (2,262) | 0 | 1,492 | |
Cash used in financing activities | (135,493) | (231,421) | (126,761) | |
Effect of exchange rate changes | 803 | 1,878 | (66) | |
Increase (decrease) in cash and cash equivalents | 8,373 | (13,965) | (54,354) | |
Cash and cash equivalents at beginning of year | 398,288 | 412,253 | 466,607 | |
Cash and cash equivalents at end of year | 406,661 | 398,288 | 412,253 | |
Cash paid during the year: | ||||
Interest, net of capitalized interest | 17,983 | 21,316 | 18,746 | |
Income taxes, net of refunds | 20,417 | 29,342 | 44,751 | |
Noncash Investing and Financing Items: | ||||
Unpaid purchases of property, plant and equipment at end of period | 49,831 | 22,072 | 31,913 | |
Acquisition-date fair value of promissory notes issued in conjunction with business combinations (see Note 11) | $ 0 | $ 30,105 | $ 0 | |
[1] | 2016 amount represents repayment of a promissory note issued in conjunction with a business combination in the second quarter of 2016. The note was repaid in the third quarter of 2016. |
Note 1 Organization of Sanmina
Note 1 Organization of Sanmina | 12 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Organization of Sanmina Sanmina Corporation (“Sanmina,” or the “Company”) was incorporated in Delaware in 1989. The Company is a leading global provider of integrated manufacturing solutions, components, products and repair, logistics and after-market services. The Company provides these comprehensive solutions primarily to original equipment manufacturers (OEMs) in the following industries: communications networks, storage, industrial, defense and aerospace, medical, energy and industries that include embedded computing technologies such as set-top boxes, point-of-sale devices, casino gaming machines and automotive components and products. The Company's operations are managed as two businesses: 1) Integrated Manufacturing Solutions (IMS). IMS is a single operating segment consisting of printed circuit board assembly and test, final system assembly and test, and direct-order-fulfillment. 2) Components, Products and Services (CPS). Components include interconnect systems (printed circuit board fabrication, backplane, cable assemblies and plastic injection molding) and mechanical systems (enclosures and precision machining). Products include memory, RF, optical and microelectronics solutions from the Company's Viking Technology division; defense and aerospace products from SCI Technology; storage solutions from the Company's Newisys division and cloud-based manufacturing execution software from the Company's 42Q division. Services include design, engineering, logistics and repair services. The Company's only reportable segment is IMS, which represented approximately 80% of total revenue in 2017 . The CPS business consists of multiple operating segments which do not meet the quantitative thresholds for being presented as reportable segments. Therefore, financial information for these operating segments will be presented in a single category entitled “Components, Products and Services”. Basis of Presentation Fiscal Year. The Company operates on a 52 or 53 week year ending on the Saturday nearest September 30. Fiscal 2017 and 2016 were each 52 weeks and fiscal 2015 was a 53-week year, with the extra week occurring in the fourth fiscal quarter. The additional week in 2015 did not significantly affect the Company's results of operations or financial position. All references to years relate to fiscal years unless otherwise noted. Principles of Consolidation. The consolidated financial statements include the Company's accounts and those of its subsidiaries. All intercompany balances and transactions have been eliminated. |
Note 2 Summary of Significant A
Note 2 Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies Management Estimates and Uncertainties. The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates made in preparing the consolidated financial statements relate to allowances for accounts receivable; provisions for excess and obsolete inventories, product returns, warranties, environmental matters, and legal exposures; determining the recoverability of claims made in connection with customer bankruptcies; determining liabilities for uncertain tax positions; determining the realizability of deferred tax assets; determining fair values of tangible and intangible assets for purposes of business combinations and impairment tests; determining fair values of contingent consideration and equity awards; and determining forfeiture rates for purposes of calculating stock compensation expense. Actual results could differ materially from these estimates. Financial Instruments and Concentration of Credit Risk. Financial instruments consist primarily of cash and cash equivalents, accounts receivable, foreign currency forward contracts, accounts payable and debt obligations. With the exception of certain of the Company's debt obligations (refer to Note 4. Financial Instruments), the fair value of these financial instruments approximates their carrying amount as of September 30, 2017 and October 1, 2016 due to the nature or short maturity of these instruments, or the fact that the instruments are recorded at fair value on the consolidated balance sheets. Accounts Receivable and Other Related Allowances. The Company had allowances of $14.3 million and $15.1 million as of September 30, 2017 and October 1, 2016 , respectively, for uncollectible accounts, product returns and other net sales adjustments. One of the Company's most significant risks is the ultimate realization of its accounts receivable. This risk is mitigated by ongoing credit evaluations of customers and frequent contact with customers, especially the most significant customers, which enable the Company to monitor changes in its customers' business operations and respond accordingly. To establish the allowance for doubtful accounts, the Company estimates credit risk associated with accounts receivable by considering the creditworthiness of its customers, past experience, specific facts and circumstances, and the overall economic climate in industries that it serves. To establish the allowance for product returns and other adjustments, the Company primarily utilizes historical data. Inventories. Inventories are stated at the lower of cost (first-in, first-out method) or market. Cost includes labor, materials and manufacturing overhead. Provisions are made to reduce excess and obsolete inventories to their estimated net realizable values. The ultimate realization of inventory carrying amounts is primarily affected by changes in customer demand. Inventory provisions are established based on forecasted demand, past experience with specific customers, the age and nature of the inventory, the ability to redistribute inventory to other programs or back to suppliers, and whether customers are contractually obligated and have the ability to pay for the related inventory. Certain payments received from customers for inventory held by the Company are recorded as a reduction of inventory. Long-lived Assets. Property, plant and equipment are stated at cost or, in the case of property and equipment acquired through business combinations, at fair value as of the acquisition date. Depreciation is provided on a straight-line basis over 20 to 40 years for buildings and 3 to 15 years for machinery, equipment, furniture and fixtures. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or useful life of the asset . The Company reviews property, plant and equipment and intangible assets subject to amortization for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. An asset group is the unit of accounting which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets. An asset or asset group is considered impaired if its carrying amount exceeds the undiscounted future net cash flows the asset or asset group is expected to generate. If an asset or asset group is considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset or asset group exceeds its fair value. For asset groups for which the primary asset is a building, the Company estimates fair value based on data provided by commercial real estate brokers. For other asset groups, the Company estimates fair value based on projected discounted future net cash flows. Goodwill. Goodwill is tested for impairment on an annual basis and whenever events or changes in circumstances indicate that the carrying amount of goodwill may not be recoverable, as assessed at a reporting unit level. If, based on a qualitative assessment, the Company determines it is more-likely-than-not that goodwill is impaired, the Company performs a quantitative assessment to determine whether the fair value of our reporting unit is less than its carrying value and, if so, the Company performs a further analysis to determine the amount, if any, of the impairment. Foreign Currency Translation. For foreign subsidiaries using the local currency as their functional currency, assets and liabilities are translated to U.S. dollars at exchange rates in effect at the balance sheet date and income and expenses are translated at average exchange rates. The effects of these translation adjustments are reported in stockholders' equity as a component of accumulated other comprehensive income ("AOCI"). For all entities, remeasurement adjustments for non-functional currency monetary assets and liabilities are included in other income (expense), net in the accompanying consolidated statements of income. Remeasurement gains and losses arising from long-term intercompany loans denominated in a currency other than an entity's functional currency are recorded in AOCI if repayment of the loan is not anticipated in the foreseeable future. Derivative Instruments and Hedging Activities. The Company conducts business on a global basis in numerous currencies and is therefore exposed to movements in foreign currency exchange rates. The Company uses foreign currency forward contracts to minimize the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. The Company accounts for derivative instruments and hedging activities in accordance with ASC Topic 815, Derivatives and Hedging, which requires each derivative instrument to be recorded on the consolidated balance sheets at its fair value as either an asset or a liability. If a derivative is designated as a cash flow hedge, the effective portion of changes in the fair value of the derivative is recorded in stockholders' equity as a separate component of AOCI and is recognized in earnings when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges are immediately recognized in earnings. If a derivative is designated as a fair value hedge, changes in the fair value of the derivative and of the item being hedged are recognized in earnings in the current period. Derivative instruments are entered into for periods of time consistent with the related underlying exposures and are not entered into for speculative purposes. At the inception of a hedge, the Company documents all relationships between derivative instruments and related hedged items, as well as its risk-management objectives and strategies for the hedging transaction. The Company's foreign currency forward contracts potentially expose the Company to credit risk to the extent the counterparties may be unable to meet the terms of the agreement. The Company minimizes such risk by seeking high quality counterparties. Revenue Recognition. The Company derives revenue principally from sales of manufacturing services, components and other products. Other sources of revenue include order fulfillment, logistic and repair services, and sales of certain inventory, primarily raw materials, to customers whose requirements change after the Company has procured inventory to fulfill the customers' forecasted demand. The Company recognizes revenue for manufacturing services, components, products and sales of certain inventory when a persuasive arrangement between the Company and the buyer exists, usually in the form of a purchase order received from the Company's customer, the price is fixed or determinable, delivery or performance has occurred and collectability is reasonably assured. Generally, there are no formal customer acceptance requirements or further obligations related to the product or the inventory subsequent to transfer of title and risk of loss. The Company's order fulfillment and logistics services involve warehousing and managing finished product on behalf of a customer. These services are usually provided in conjunction with manufacturing services at one of the Company's facilities. In these instances, revenue for manufacturing services is deferred until the related goods are delivered to the customer, which is upon completion of order fulfillment and logistics services. In certain instances, the Company's facility used to provide order fulfillment and logistics services is controlled by the customer pursuant to a separate arrangement. In these instances, revenue for manufacturing services is recognized upon receipt of the manufactured product at the customer-controlled location and revenue for order fulfillment and logistics services is recognized separately as the services are provided. Revenue for repair services is generally recognized upon completion of the services. Provisions are made for estimated sales returns and other adjustments at the time revenue is recognized. Such provisions were not material to the consolidated financial statements for any period presented herein. The Company presents sales net of sales taxes and value-added taxes in its consolidated statements of income. Amounts billed to customers for shipping and handling are recorded as revenue and shipping and handling costs incurred by the Company are included in cost of sales. Income taxes. The Company estimates its income tax provision or benefit in each of the jurisdictions in which it operates, including estimating exposures and making judgments regarding the realizability of deferred tax assets. The carrying value of the Company's net deferred tax assets is based on the Company's belief that it is more likely than not that the Company will generate sufficient future taxable income in certain jurisdictions to realize these deferred tax assets. A valuation allowance has been established for deferred tax assets which do not meet the “more likely than not” criteria discussed above . The Company's tax rate is highly dependent upon the geographic distribution of its worldwide income or losses, the tax regulations and tax holidays in each geographic region, the availability of tax credits and carryforwards, including net operating losses, and the effectiveness of its tax planning strategies. The Company makes an assessment of whether each income tax position is “more likely than not” of being sustained on audit, including resolution of related appeals or litigation, if any. For each income tax position that meets the “more likely than not” recognition threshold, the Company then assesses the largest amount of tax benefit that is greater than 50% likely of being realized upon effective settlement with the tax authority. Interest and penalties related to unrecognized tax benefits are recognized as a component of income tax expense. Recent Accounting Pronouncements Adopted in Fiscal Year 2017 In August 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-15 "Classification of Certain Cash Receipts and Cash Payments (Topic 230)". This ASU addresses the classification and presentation of eight specific cash flow issues that currently result in diverse practices. The Company adopted this ASU at the beginning of fiscal 2017, the adoption of which did not have a significant effect on the statement of cash flows. In September 2015, the FASB issued ASU 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments (Topic 805)". This ASU requires the Company to recognize adjustments to provisional amounts identified during the measurement period in the reporting period in which the adjustments are determined. Additionally, the Company is required to disclose the amount recorded in current-period earnings that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The Company adopted this ASU at the beginning of fiscal 2017, the adoption of which did not affect the Company's financial statements. In April 2015, the FASB issued ASU 2015-3, "Simplifying the Presentation of Debt Issuance Costs (Topic 835)". This ASU requires presentation of debt issuance costs in the balance sheet as a direct deduction from the related debt liability, rather than as an asset. The Company adopted this ASU at the beginning of fiscal 2017, the adoption of which did not affect the Company's financial statements. Recent Accounting Pronouncements Not Yet Adopted In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements for Accounting For Hedging Activities", simplifying hedge accounting guidance and improving the financial reporting of hedging relationships by allowing an entity to better align its risk management activities and financial reporting for hedging relationships through changes to both designation and measurement for qualifying hedging relationships and the presentation of hedge results. This standard eliminates the requirement to separately measure and report hedge ineffectiveness resulting in full recognition of the change in fair value (that impact earnings) in earnings in the same income statement line item that is used to present the earnings effect of the hedged item. In addition, the guidance allows more flexibility in the requirements to qualify for and maintain hedge accounting. This ASU is effective for the Company at the beginning of fiscal 2020 and early adoption is permitted. The Company is currently evaluating the potential impact of this ASU and when to adopt this ASU. In March 2017, the FASB issued ASU 2017-07, "Compensation-Retirement Benefits (Topic 715)". This ASU requires the service costs component of net periodic pension costs to be presented in the same line item as other compensation costs and all other components of net periodic pension costs to be presented in the income statement as nonoperating expenses. This ASU is effective for the Company at the beginning of fiscal 2019 and should be applied retrospectively. A practical expedient permits the use of estimates for applying the retrospective presentation requirements. The Company does not expect the impact of adopting this new accounting standard to be significant. In January 2017, the FASB issued ASU 2017-04, "Intangibles-Goodwill and Other (Topic 350)". This ASU simplifies the test for goodwill impairment by eliminating Step 2 of the goodwill impairment test which requires a hypothetical purchase price allocation to measure goodwill. A goodwill impairment loss will instead be measured at the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill allocated to that reporting unit. This ASU is effective for the Company at the beginning of fiscal 2021 and early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating when to adopt this ASU. In January 2017, the FASB issued ASU 2017-01, "Business Combinations (Topic 805)". This ASU provides guidance to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new standard is effective for the Company at the beginning of fiscal 2019, including interim periods within that reporting period, but early adoption is permitted. The Company is currently evaluating when to adopt this ASU. In November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows (Topic 230)". This ASU requires that the statement of cash flows explains the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Companies will also be required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. This ASU is effective for the Company at the beginning of fiscal 2019, including interim periods within that annual period, but early adoption is permitted. The Company is currently evaluating when to adopt this ASU and does not expect the impact of adopting this new accounting standard to be significant. In October 2016, the FASB issued ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory (Topic 740)". This ASU simplifies the accounting for income tax consequences of intra-entity transfers of assets other than inventory by requiring recognition of current and deferred income tax consequences when such transfers occur. The new standard is effective for the Company at the beginning of fiscal 2019, including interim periods within that annual period, but early adoption is permitted. The Company is currently evaluating when to adopt this ASU, but does not expect the impact of adopting this new accounting standard to be significant. In March 2016, the FASB issued ASU 2016-09 "Improvements to Employee Share-Based Payment Accounting (Topic 718)". This ASU addresses several aspects of accounting for share-based payment award transactions, including: (a) income tax consequences, (b) classification of awards as either equity or liabilities, and (c) classification in the statement of cash flows. The new standard is effective for the Company at the beginning of fiscal 2018, including interim periods within that reporting period, but early adoption is allowed. The Company will adopt this ASU at the beginning of fiscal 2018. Upon adoption, the Company expects to record an increase to its deferred tax assets of approximately $44.0 million , with a corresponding increase to retained earnings. This ASU is expected to increase the variability of the Company's provision for income taxes, the effect of which could be material. In February 2016, the FASB issued ASU 2016-02, "Leases: Amendments to the FASB Accounting Standards Codification (Topic 842)". This ASU requires the Company to recognize on the balance sheet the assets and liabilities for the rights and obligations created by leases with terms of more than twelve months. This ASU also requires disclosures enabling the users of financial statements to understand the amount, timing and uncertainty of cash flows arising from leases. The new standard is effective for the Company at the beginning of fiscal 2020, including interim periods within that reporting period. The Company expects the impact of adopting this new accounting standard to be material to its consolidated balance sheet, but is still evaluating the impact to its consolidated statement of income. In July 2015, the FASB issued ASU 2015-11, "Simplifying the Measurement of Inventory (Topic 330)". This ASU requires measurement of inventory at the lower of cost and net realizable value. Net realizable value is defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Currently, inventory is generally measured at the lower of cost or market, except for excess and obsolete inventories which are carried at their estimated net realizable values. This new standard is effective for the Company in fiscal 2018, including interim periods within that reporting period. The Company does not expect the impact of adopting this new accounting standard to be significant. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)," which supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605).” This ASU requires an entity to recognize revenue when goods are transferred or services are provided to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU 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. The new standard is effective for the Company in fiscal 2019, including interim periods within that reporting period, using one of two prescribed transition methods. The Company has determined that the new standard will result in a change to the timing of revenue recognition for a significant portion of the Company's revenue stream, whereby revenue will be recognized "over time" as opposed to at a "point in time" upon physical delivery. The new standard could have a material impact to the Company's consolidated financial statements upon initial adoption, but the Company does not expect the effect of the new standard to materially impact its revenue or gross profit on a rollover basis in periods after adoption. The Company has not yet selected a transition method and continues to closely monitor implementation issues and other guidance published by the standard setters. |
Note 3 Balance Sheet and Income
Note 3 Balance Sheet and Income Statement Details | 12 Months Ended |
Sep. 30, 2017 | |
Balance Sheet and Income Statement Details [Abstract] | |
Additional Financial Information Disclosure [Text Block] | Balance Sheet and Income Statement Details Inventories Components of inventories were as follows: As of September 30, October 1, (In thousands) Raw materials $ 834,694 $ 671,240 Work-in-process 106,914 144,355 Finished goods 110,061 130,644 Total $ 1,051,669 $ 946,239 Property, Plant and Equipment, net Property, plant and equipment consisted of the following: As of September 30, October 1, (In thousands) Machinery and equipment $ 1,452,648 $ 1,401,745 Land and buildings 607,701 601,468 Leasehold improvements 55,688 53,999 Furniture and fixtures 22,989 21,834 Construction in progress 37,864 34,415 2,176,890 2,113,461 Less: Accumulated depreciation and amortization (1,536,615 ) (1,495,937 ) Property, plant and equipment, net $ 640,275 $ 617,524 Depreciation expense was $111.5 million , $104.5 million and $96.1 million for 2017 , 2016 and 2015 , respectively. Goodwill and Other Intangible Assets Net carrying values of goodwill and other intangible assets were as follows: As of September 30, October 1, (In thousands) Goodwill - beginning of year $ 59,126 $ 26,617 Additions — 32,509 Goodwill - end of year 59,126 59,126 Intangible assets - beginning of year $ 16,498 $ 16,588 Additions — 7,330 Amortization (7,280 ) (7,420 ) Intangible assets - end of year $ 9,218 $ 16,498 Intangible assets have useful lives ranging from one to five years. Other Operating Expenses Other operating expenses consisted of the following: Year Ended September 30, October 1, October 3, (In thousands) Restructuring $ 1,339 $ 2,701 $ 13,683 Amortization of intangible assets 3,672 3,446 2,054 Asset impairment 4,600 1,000 3,454 Gain on sale of long-lived assets (1,451 ) — (10,807 ) $ 8,160 $ 7,147 $ 8,384 Other Income, net The following table summarizes the major components of other income, net (in thousand): Year ended September 30, October 1, October 3, Foreign exchange gains / (losses) $ 4,709 $ (415 ) $ 681 Bargain purchase gain, net of tax — 1,642 — Other, net 2,973 2,836 86 Total $ 7,682 $ 4,063 $ 767 |
Note 4 Financial Instruments
Note 4 Financial Instruments | 12 Months Ended |
Sep. 30, 2017 | |
Financial Instruments, at Fair Value [Abstract] | |
Derivatives and Fair Value [Text Block] | Financial Instruments Fair Value Measurements Fair Value of Financial Instruments The fair values of cash equivalents (generally less than 10% of cash and cash equivalents), accounts receivable, accounts payable and short-term debt approximate carrying value due to the short term duration of these instruments. Fair Value Option for Long-term Debt As of September 30, 2017 , the fair value of the Company's long-term debt, as estimated based primarily on quoted prices (Level 2 input), was approximately 2% higher than its carrying amount. The Company has elected not to record its long-term debt instruments at fair value. Assets and Liabilities Measured at Fair Value on a Recurring Basis The Company's primary financial assets and financial liabilities measured at fair value on a recurring basis are deferred compensation plan assets, deferred benefit plan assets, foreign exchange contracts and contingent consideration. The fair value of these assets and liabilities, other than defined benefit plan assets (Level 1 input) and deferred compensation plan assets (Level 1 input), was not material as of September 30, 2017 or October 1, 2016 . During the second quarter of 2016, the fair value of the Company's contingent consideration liability decreased by $7.6 million , resulting in a credit to cost of sales on the consolidated statement of income. The change in fair value resulted from a revision to the Company's estimate of future earnout payments, driven primarily by weakened conditions in the oil and gas industry. Offsetting Derivative Assets and Liabilities The Company has entered into master netting arrangements with each of its derivative counterparties that allows net settlement of derivatives assets and liabilities under certain conditions, such as multiple transactions with the same currency maturing on the same date. The Company presents its derivative assets and derivative liabilities on a gross basis in the consolidated balance sheets. The amount that the Company had the right to offset under these netting arrangements was not material as of September 30, 2017 or October 1, 2016 . Other non-financial assets, such as intangible assets, goodwill and other long-lived assets, are measured at fair value as of the date such assets are acquired or in the period an impairment is recorded. Derivative Instruments The Company is exposed to certain risks related to its ongoing business operations. The primary risks managed by using derivative instruments is foreign currency exchange risk. Forward contracts on various foreign currencies are used to manage foreign currency risk associated with forecasted foreign currency transactions and certain monetary assets and liabilities denominated in non-functional currencies. The Company's primary foreign currency cash flows are in certain Asian and European countries, Brazil, Israel and Mexico. The Company had the following outstanding foreign currency forward contracts that were entered into to hedge foreign currency exposures: As of September 30, 2017 October 1, 2016 Derivatives Designated as Accounting Hedges: Notional amount (in thousands) $105,523 $110,242 Number of contracts 58 43 Derivatives Not Designated as Accounting Hedges: Notional amount (in thousands) $302,944 $313,558 Number of contracts 46 46 The Company utilizes foreign currency forward contracts to hedge certain operational (“cash flow”) exposures resulting from changes in foreign currency exchange rates. Such exposures generally result from (1) forecasted sales denominated in currencies other than those used to pay for materials and labor, (2) forecasted non-functional currency labor and overhead expenses, (3) forecasted non-functional currency operating expenses, and (4) anticipated capital expenditures denominated in a currency other than the functional currency of the entity making the expenditures. These contracts are designated as cash flow hedges for accounting purposes and are generally one-to-two months in duration but, by policy, may be up to twelve months in duration. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income ("AOCI"), a component of equity, and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The amount of gains (loss) recognized in Other Comprehensive Income ("OCI") on derivative instruments (effective portion), the amount of gain (loss) reclassified from AOCI into income (effective portion) and the amount of ineffectiveness were not material for any period presented herein. As of September 30, 2017 , AOCI related to foreign currency forward contracts was not material . The Company enters into short-term foreign currency forward contracts to hedge currency exposures associated with certain monetary assets and liabilities denominated in non-functional currencies. These contracts have maturities of up to two months and are not designated as accounting hedges. Accordingly, these contracts are marked-to-market at the end of each period with unrealized gains and losses recorded in other income, net, in the consolidated statements of income. The amount of gains (losses) associated with these forward contracts were not material for any period presented herein. From an economic perspective, the objective of the Company's hedging program is for gains and losses on forward contracts to substantially offset gains and losses on the underlying hedged items. In addition to the contracts disclosed in the table above, the Company has numerous contracts that have been closed from an economic and financial accounting perspective and will settle early in the first month of the following quarter. Since these offsetting contracts do not expose the Company to risk of fluctuations in exchange rates, these contracts have been excluded from the above table. In addition to the short-term contracts discussed above, the Company has a foreign currency forward contract that matures in 2020 and was entered into as a hedge of foreign currency exposure associated with a long-term promissory note issued in connection with a previous business combination. |
Note 5 Financial Instruments an
Note 5 Financial Instruments and Concentration of Credit Risk | 12 Months Ended |
Sep. 30, 2017 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | Financial Instruments and Concentration of Credit Risk Financial instruments that potentially subject the Company to credit risk consist primarily of cash, cash equivalents, trade accounts receivable and foreign currency forward contracts. The carrying value of assets such as cash, cash equivalents and accounts receivable is expected to approximate fair value due to the short duration of the assets. The Company maintains its cash and cash equivalents with recognized financial institutions that management believes to be of high credit quality. One of the Company's most significant credit risks is the ultimate realization of accounts receivable. This risk is mitigated by ongoing credit evaluations of, and frequent contact with, the Company's customers, especially its most significant customers, thus enabling it to monitor changes in business operations and respond accordingly. The Company generally does not require collateral for sales on credit. The Company considers these concentrations of credit risks when estimating its allowance for doubtful accounts. Foreign currency forward contracts are maintained with high quality counterparties to reduce the Company's credit risk and are recorded on the Company's balance sheets at fair value. Two customers represented more than 10% of the Company's net sales in 2017, one customer represented more than 10% of the Company's net sales in 2016 and no customer represented more than 10% of the Company's net sales in 2015. One customer represented 10% or more of the Company's gross accounts receivable as of September 30, 2017 and October 1, 2016 . |
Note 6 Debt
Note 6 Debt | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt Long-term debt consisted of the following: As of September 30, October 1, (In thousands) Secured debt due 2017 $ — $ 40,000 Senior secured notes due 2019 375,000 375,000 Non-interest bearing promissory notes 19,863 22,475 Total long-term debt 394,863 437,475 Less: Current portion of non-interest bearing promissory notes 3,416 3,416 Long-term debt $ 391,447 $ 434,059 Secured Debt. During the second quarter of 2017, the Company prepaid the balance of the amount due under its secured debt due 2017 for $40.0 million plus accrued interest. Secured Notes. In 2014, the Company issued $375 million of senior secured notes due 2019. The Secured Notes mature on June 1, 2019 and bear interest at an annual rate of 4.375% , payable semi-annually in arrears in cash. Debt issuance costs incurred in connection with issuance of the Secured Notes were not material. The Secured Notes are senior secured obligations and are fully and unconditionally guaranteed, jointly and severally, on a senior secured basis by certain subsidiaries of the Company. The Secured Notes and the guarantees are secured by a first-priority lien, subject to permitted liens, on certain tangible and intangible assets including certain real property, equipment and intellectual property, and by a second-priority lien on certain assets, including accounts receivable, inventory and stock of subsidiaries, securing the Company’s revolving credit facility. All or any portion of the Secured Notes may be redeemed, at any time, at the option of the Company, at a redemption price equal to 100% of the principal amount of the Secured Notes redeemed plus accrued and unpaid interest, plus a make-whole premium. Following a change of control, as defined, the Company would be required to make an offer to repurchase all of the Secured Notes at a purchase price of 101% of the principal amount of the Secured Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the date of repurchase. The Secured Notes are subject to specified events of default, including payment defaults, breaches of covenants, certain payment defaults at final maturity or acceleration of other indebtedness, failure to pay certain judgments, certain events of bankruptcy, insolvency and reorganization involving the Company or certain of its subsidiaries and certain instances in which a guarantee ceases to be in full force and effect. If any event of default occurs and is continuing, subject to certain exceptions, the trustee or the holders of at least 25% in aggregate principal amount of the then outstanding Secured Notes, may declare all the Secured Notes to be due and payable immediately, together with any accrued and unpaid interest, if any, to the acceleration date. In the case of an event of default resulting from certain events of bankruptcy, insolvency or reorganization involving the Company, such amounts with respect to the Secured Notes will be due and payable immediately without any declaration or other act on the part of the trustee or the holders of the Secured Notes. 2019 Notes. In 2011, the Company issued $500 million of senior notes due 2019. Of these notes, $400 million were redeemed prior to 2015 and the remaining $100 million of these notes were redeemed in 2015 at par plus a redemption premium and accrued interest. In connection with this redemption, the Company recorded a net loss on extinguishment of debt of $2.9 million , consisting of redemption premiums of $5.3 million and a write-off of unamortized debt issuance costs of $1.4 million , partially offset by a $3.8 million credit for the fair value hedge adjustment related to the extinguished 2019 Notes. Non-interest Bearing Promissory Notes. On February 1, 2016 , the Company completed an acquisition and financed $15.0 million of the purchase price with the acquiree using a four-year non-interest bearing promissory note with a discounted value of $12.3 million as of the acquisition date (see Note 11). Short-term Debt Revolving Credit Facility. During the third quarter of 2015, the Company replaced its asset-backed revolving credit facility (the "ABL") with a $375 million secured revolving credit facility (the "Cash Flow Revolver"). The Cash Flow Revolver may be increased by an additional $125 million upon obtaining additional commitments from lenders then party to the Cash Flow Revolver or new lenders. The Cash Flow Revolver expires on May 20, 2020 , but may be terminated by the lenders as early as March 4, 2019 if certain conditions exist. In connection with this replacement, $0.8 million of debt issuance costs attributable to the ABL were expensed. As of September 30, 2017 , $85.0 million of borrowings and $13.1 million of letters of credit were outstanding under the Cash Flow Revolver. Foreign Short-term Borrowing Facilities . As of September 30, 2017 , certain foreign subsidiaries of the Company had a total of $74.1 million of short-term borrowing facilities, under which no borrowings were outstanding. These facilities expire at various dates through the second quarter of 2019 . Debt Covenants The Company's Cash Flow Revolver requires the Company to comply with certain financial covenants. In addition, the Company's debt agreements contain a number of restrictive covenants, including restrictions on incurring additional debt, making investments and other restricted payments, selling assets, paying dividends and redeeming or repurchasing capital stock and debt, subject to certain exceptions. The Company was in compliance with these covenants as of September 30, 2017 . |
Note 7 Commitment and Contingen
Note 7 Commitment and Contingencies | 12 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies From time to time, the Company is a party to litigation, claims and other contingencies, including environmental and employee matters and examinations and investigations by governmental agencies, which arise in the ordinary course of business. The Company cannot predict what effect these matters may have on its results of operations, financial condition or cash flows. The Company records a contingent liability when it is probable that a loss has been incurred and the amount of loss is reasonably estimable in accordance with ASC Topic 450, Contingencies or other applicable accounting standards. As of September 30, 2017 and October 1, 2016 , the Company had reserves of $36.1 million and $46.0 million , respectively, for environmental matters, warranty, litigation, contingent consideration and other contingencies (excluding reserves for uncertain tax positions) which the Company believes are adequate. However, there can be no assurance that the Company's reserves will be sufficient to settle these contingencies. Such reserves are included in accrued liabilities and other long-term liabilities on the consolidated balance sheets. Legal Proceedings Environmental Matters The Company is subject to various federal, state, local and foreign laws and regulations and administrative orders concerning environmental protection, including those addressing the discharge of pollutants into the environment, the management and disposal of hazardous substances, the cleanup of contaminated sites, the materials used in products, and the recycling, treatment and disposal of hazardous waste. As of September 30, 2017 , the Company had been named in a lawsuit and several administrative orders alleging certain of its current and former sites contributed to groundwater contamination. One such order requires the Company's Canadian subsidiary to remediate certain environmental contamination at a site owned by the subsidiary between 1999 and 2006. As of September 30, 2017 , the Company believes it has reserved a sufficient amount to satisfy anticipated future investigation and remediation costs at this site. Another such order demands that the Company and other alleged defendants remediate groundwater contamination at two landfills located in Northern California to which the Company may have sent wastewater in the past. The Company continues to investigate the allegations contained in this order and has reserved its estimated exposure for this matter as of September 30, 2017 . However, there can be no assurance that the Company's reserve will ultimately be sufficient. In June 2008, the Company was named by the Orange County Water District in a suit alleging that its actions contributed to polluted groundwater managed by the plaintiff. The complaint seeks recovery of compensatory and other damages, as well as declaratory relief, for the payment of costs necessary to investigate, monitor, remediate, abate and contain contamination of groundwater within the plaintiff’s control. In April 2013, all claims against the Company were dismissed. The plaintiff appealed this dismissal and the appeals court reversed the judgment in August 2017. The Company has petitioned the California Supreme Court to review this reversal. The Supreme Court has not yet ruled on whether it will review the appellate court's determination. Other Matters Two of the Company’s subsidiaries in Brazil are parties to a number of administrative and judicial proceedings for claims alleging that these subsidiaries failed to comply with certain bookkeeping and tax rules for certain periods between 2001 and 2011. These claims seek payment of social fund contributions and income and excise taxes allegedly owed by the subsidiaries, as well as fines. The subsidiaries believe they have meritorious positions in these matters and intend to continue to contest the claims. Other Contingencies One risk the Company faces is the ultimate realization of accounts receivable and customer inventory exposures. This risk is partially mitigated by ongoing credit evaluations of, and frequent contact with, the Company's customers, especially its most significant customers, thus enabling it to monitor changes in business operations and respond accordingly. Customer bankruptcies also entail the risk of potential recovery by the bankruptcy estate of amounts previously paid to the Company that are deemed a preference under bankruptcy laws. Commitments - Operating Leases The Company leases certain of its facilities and equipment under non-cancellable operating leases expiring at various dates through 2042 . The Company is responsible for utilities, maintenance, insurance and property taxes under these leases. Future minimum lease payments, net of sublease income, under operating leases are as follows: (In thousands) 2018 $ 23,692 2019 14,658 2020 8,946 2021 7,894 2022 6,521 Thereafter 22,607 Total $ 84,318 Rent expense, net of sublease income, under operating leases was $24.2 million , $24.0 million and $26.2 million for 2017 , 2016 and 2015 , respectively. |
Note 8 Income Tax
Note 8 Income Tax | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes Domestic and foreign components of income before income taxes were as follows: Year Ended September 30, October 1, October 3, (In thousands) Domestic $ 128,493 $ 138,138 $ 91,613 Foreign 84,987 66,479 84,580 Total $ 213,480 $ 204,617 $ 176,193 The provision for (benefit from) income taxes consists of the following: Year Ended September 30, October 1, October 3, (In thousands) Federal: Current $ (2,524 ) $ 490 $ 1,413 Deferred 37,543 (4,550 ) (226,225 ) State: Current 1,648 (265 ) 543 Deferred 4,204 (5,141 ) (513 ) Foreign: Current 37,076 32,427 42,295 Deferred (3,300 ) (6,182 ) (18,581 ) Total provision for (benefit from) income taxes $ 74,647 $ 16,779 $ (201,068 ) The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities are as follows: As of September 30, 2017 October 1, 2016 (In thousands) Deferred tax assets: U.S. net operating loss carryforwards $ 338,492 $ 373,933 Foreign net operating loss carryforwards 186,684 199,313 Acquisition related intangibles 13,913 28,928 Accruals not currently deductible 55,582 59,879 Property, plant and equipment 20,746 9,939 Tax credit carryforwards 11,832 14,191 Reserves not currently deductible 21,710 27,626 Stock compensation expense 21,151 20,617 Unrealized losses 4,475 4,475 Other 3,949 2,730 Valuation allowance (163,267 ) (176,422 ) Total deferred tax assets 515,267 565,209 Deferred tax liabilities on foreign earnings (36,027 ) (37,122 ) Other deferred tax liabilities (8,140 ) (19,228 ) Net deferred tax assets $ 471,100 $ 508,859 Recorded as: Non-current deferred tax assets $ 476,554 $ 514,314 Non-current deferred tax liabilities (5,454 ) (5,455 ) Net deferred tax assets $ 471,100 $ 508,859 The Company offsets deferred tax assets and liabilities by tax-paying jurisdiction. The resulting net amounts by tax jurisdiction are then aggregated without further offset. A valuation allowance is established or maintained when, based on currently available information and other factors, it is more likely than not that all or a portion of the deferred tax assets will not be realized. The Company regularly assesses its valuation allowance against deferred tax assets on a jurisdiction by jurisdiction basis. The Company considers all available positive and negative evidence, including future reversals of temporary differences, projected future taxable income, tax planning strategies and recent financial results. Significant judgment is required in assessing the Company's ability to generate revenue, gross profit, operating income and jurisdictional taxable income in future periods. Prior to 2012, based on negative evidence (primarily a cumulative history of operating losses), the Company had a full valuation allowance against its net deferred tax assets in the U.S. and certain foreign jurisdictions. In 2012 through 2016, the Company released a portion of its U.S. valuation allowances each year in recognition of its improved historical earnings and increasing future projected earnings. The Company released $96.2 million and $288.7 million of the valuation allowance attributable to U.S. and foreign deferred tax assets in 2016 and 2015, respectively. As of October 1, 2016 and September 30, 2017 , the Company no longer had a valuation allowance against its U.S. deferred tax assets. The valuation allowance as of September 30, 2017 relates primarily to foreign net operating losses, with the exception of $17.6 million related to U.S. state net operating losses. As of September 30, 2017 , U.S. income taxes have not been provided for approximately $571.4 million of cumulative undistributed earnings of several non-U.S. subsidiaries. The Company intends to reinvest these earnings indefinitely in operations outside of the U.S. Determination of the amount of unrecognized deferred tax liabilities on these undistributed earnings is not practicable. As of September 30, 2017 , the Company has cumulative net operating loss carryforwards for federal, state and foreign tax purposes of $1.0 billion , $633.8 million and $744.9 million , respectively. The federal and state net operating loss carryforwards begin expiring in 2023 and 2018, respectively, and expire at various dates through 2033 . Certain foreign net operating losses start expiring in 2018. However, the majority of foreign net operating losses carryforward indefinitely. The Tax Reform Act of 1986 and similar state provisions impose restrictions on the utilization of net operating loss and tax credit carryforwards in the event of an “ownership change” as defined in the Internal Revenue Code. The utilization of certain net operating losses may be restricted due to changes in ownership and business operations. The Company is prohibited from recognizing a deferred tax asset for excess tax benefits related to stock and stock option plans that have not been realized through the reduction in income taxes payable. Such unrecognized deferred tax benefit as of September 30, 2017 was $126.6 million on a pre-tax basis and will be recognized upon the Company’s adoption of ASU 2016-09, Improvements to Employee Share-based Accounting, in 2018 with a corresponding increase to retained earnings. Following is a reconciliation of the statutory federal tax rate to the Company's effective tax rate: Year Ended September 30, October 1, October 3, Federal tax at statutory tax rate 35.00 % 35.00 % 35.00 % Effect of foreign operations 1.89 5.35 3.82 Foreign income inclusion 0.26 9.43 0.21 Permanent items 2.10 (0.29 ) 2.05 Release of valuation allowance — (47.10 ) (163.92 ) Discrete benefit of foreign restructuring (4.92 ) — — Other (2.10 ) 4.61 4.41 State income taxes, net of federal benefit 2.72 1.18 4.31 Effective tax rate 34.95 % 8.18 % (114.12 )% A reconciliation of the beginning and ending amount of total unrecognized tax benefits, excluding accrued penalties and interest, is as follows: Year Ended September 30, October 1, October 3, (In thousands) Balance, beginning of year $ 55,773 $ 51,158 $ 54,237 Increase (decrease) related to prior year tax positions 1,508 (2,413 ) (5,044 ) Increase related to current year tax positions 9,741 7,028 5,564 Settlements — — (3,599 ) Balance, end of year $ 67,022 $ 55,773 $ 51,158 The Company had reserves of $40.2 million and $35.9 million as of September 30, 2017 and October 1, 2016, respectively, for the payment of interest and penalties relating to unrecognized tax benefits. The Company recorded interest and penalties related to unrecognized tax benefits of $4.3 million in 2017 , $3.7 million in 2016 and $3.9 million in 2015 . The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. Should the Company be able to ultimately recognize all of these uncertain tax positions, it would result in a benefit to net income and a reduction of the effective tax rate. The Company conducts business globally and, as a result, files income tax returns in the United States federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world. The Company is currently being audited by the Internal Revenue Service for tax years 2008 through 2010. To the extent the final tax liabilities are different from the amounts accrued, this would result in an increase or decrease in net operating loss carryforwards which would impact tax expense. Additionally, the Company is being audited by various state tax agencies and certain foreign countries. To the extent the final tax liabilities are different from the amounts accrued, the increases or decreases would be recorded as income tax expense or benefit in the consolidated statements of income. Although the Company believes that the resolution of these audits will not have a material adverse impact on the Company’s results of operations, the outcome is subject to uncertainty. In general, the Company is no longer subject to United States federal or state income tax examinations for years before 2003, and to foreign examinations for years prior to 2003 in its major foreign jurisdictions. Although the timing of the resolution of audits is highly uncertain, it is reasonably possible that the balance of gross unrecognized tax benefits could significantly change in the next 12 months. However, given the number of years subject to audit and the number of matters being examined, the Company is unable to estimate the full range of possible adjustments to the balance of gross unrecognized tax benefits. |
Note 9 Earnings Per Share
Note 9 Earnings Per Share | 12 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Earnings Per Share Basic and diluted earnings per share amounts are calculated by dividing net income by the weighted average number of shares of common stock outstanding during the period, as follows: Year Ended September 30, October 1, October 3, 2015 (In thousands, except per share amounts) Numerator: Net income $ 138,833 $ 187,838 $ 377,261 Denominator: Weighted average common shares outstanding 74,481 75,094 81,818 Effect of dilutive stock options and restricted stock units 3,647 3,693 3,823 Denominator for diluted earnings per share 78,128 78,787 85,641 Net income per share: Basic $ 1.86 $ 2.50 $ 4.61 Diluted $ 1.78 $ 2.38 $ 4.41 The following table presents weighted-average dilutive securities that were excluded from the above calculation because their inclusion would have had an anti-dilutive effect under ASC Topic 260, Earnings per Share , due to application of the treasury stock method: As of September 30, 2017 October 1, 2016 October 3, 2015 Potentially dilutive securities: (In thousands) Employee stock options — 477 776 Restricted stock units 6 3 13 Total 6 480 789 |
Note 10 Stockholders' Equity
Note 10 Stockholders' Equity | 12 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Stockholders' Equity In 2009, the Company's stockholders approved the 2009 Incentive Plan (“2009 Plan”) and the reservation of 7.5 million shares of common stock for issuance thereunder, which was subsequently increased to 23.5 million shares. The 2009 Plan provides for the grant of incentive stock options, non-statutory stock options, restricted stock, restricted stock units, stock appreciation rights, performance units, and performance shares. The per share exercise price for shares to be issued pursuant to exercise of an option must be no less than 100% of the fair market value per share on the date of grant. Upon approval of the 2009 Plan, all of the Company's other stock plans were terminated as to future grants. Although these plans have been terminated, they will continue to govern all awards granted under them until the expiration of the awards. As of September 30, 2017 , an aggregate of 10.2 million shares were authorized for future issuance under the Company's stock plans, of which 6.9 million of such shares were issuable upon exercise of outstanding options and delivery of shares upon vesting of restricted stock units and 3.3 million shares of common stock were available for future grant. Awards other than stock options and stock appreciation rights reduce common stock available for grant by 1.36 shares for every share of common stock subject to such an award. Awards under the 2009 plan that expire or are cancelled without delivery of shares generally become available for issuance under the plan. Stock Repurchase Program During the fourth quarter of 2017, the Board of Directors approved an additional $200.0 million stock repurchase plan. The timing of repurchases will depend upon capital needs to support the growth of the Company's business, market conditions and other factors. Although stock repurchases are intended to increase stockholder value, purchases of shares reduce the Company's liquidity. During 2017 and 2016 , the Company repurchased 4.3 million shares and 6.8 million shares of its common stock for $159.7 million and $141.2 million (including commissions), respectively. As of September 30, 2017 , $253.2 million remains available under repurchase programs authorized by the Board of Directors, inclusive of programs authorized by the Board of Directors prior to 2017. In addition to the repurchases discussed above, the Company repurchased 549,000 , 46,000 and 61,000 shares of its common stock during 2017 , 2016 , and 2015 , respectively, in settlement of employee tax withholding obligations due upon the vesting of restricted stock units. The Company paid $17.3 million , $1.0 million and $1.5 million , respectively, in conjunction with these purchases. Accumulated Other Comprehensive Income Accumulated other comprehensive income, net of tax as applicable, consisted of the following: As of September 30, October 1, (In thousands) Foreign currency translation adjustments $ 90,952 $ 90,364 Unrealized holding losses on derivative financial instruments (212 ) (439 ) Unrecognized net actuarial loss and unrecognized transition cost for benefit plans (13,946 ) (24,544 ) Total $ 76,794 $ 65,381 |
Note 11 Acquisition
Note 11 Acquisition | 12 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Acquisitions Fiscal 2016 Acquisitions During the second quarter of 2016, the Company purchased all of the outstanding stock of a privately-held provider of data storage software solutions targeted at OEM's and systems integrators. Goodwill arising from the acquisition is tax deductible and reflects the Company's expectation that the acquisition will enable the Company to broaden its relationships with certain of its existing key customers, realize synergies associated with leveraging the acquisition to develop other software solutions to become a provider of a full storage systems solution, and leverage the acquiree's knowledgeable and experienced workforce. Goodwill and identifiable assets are recorded in other non-current assets on the consolidated balance sheets. Identifiable intangible assets are being amortized over three to four years. In addition, the Company acquired a manufacturing facility and related assets from a customer in the industrial end market during the second quarter of 2016. Consideration paid was less than the fair values of assets acquired, resulting in a bargain purchase gain of $1.6 million , net of tax, which was recorded in interest and other, net on the condensed consolidated statements of income in the second quarter of 2016. The Company reassessed, in the second quarter of 2016, the recognition and measurement of identifiable assets and liabilities acquired and concluded that all acquired assets and liabilities were recognized and that the valuation procedures and resulting estimates of fair values were appropriate. The bargain purchase gain resulted from the discount attributable to financing a portion of the purchase price with the acquiree using a non-interest bearing promissory note. Total consideration paid for the above acquisitions was $90.3 million , consisting of $60.2 million of cash and non-interest bearing promissory notes with a discounted value of $30.1 million as of the respective acquisition dates. The Company's allocation of the purchase price was based on management's estimate of the acquisition-date fair values of the tangible and identifiable intangible assets acquired and liabilities assumed, as follows: (In thousands) Current assets, including cash of $1.3 million $ 33,198 Noncurrent assets, including identifiable intangible assets of $7.3 million and goodwill of $30.8 million 62,632 Current liabilities (3,146 ) Noncurrent liabilities (725 ) Total 91,959 Bargain purchase gain, net of tax (1,642 ) Total consideration paid $ 90,317 There were no measurement-period adjustments for either of these two acquisitions during the one-year period subsequent to the date of acquisition. Fiscal 2015 Acquisition During the fourth quarter of 2015, the Company purchased all outstanding stock of a privately-held company that designs and manufactures equipment for the oil and gas industry. Consideration for the acquisition consisted of cash of $15.4 million plus up to an additional $23.5 million if certain annual earnings targets are achieved. The fair value of contingent consideration was determined to be $11.0 million as of the acquisition date. During the second quarter of 2016, the fair value of the Company's contingent consideration liability decreased by $7.6 million , resulting in a credit to cost of sales on the condensed consolidated statement of income. The change in fair value resulted from a revision to the Company's estimate of future earnout payments, driven primarily by weakened conditions in the oil and gas industry. |
Note 12 Business Segment, Geogr
Note 12 Business Segment, Geographic and Customer Information | 12 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Business Segment, Geographic and Customer Information ASC Topic 280, Segment Reporting , establishes standards for reporting information about operating segments, products and services, geographic areas of operations and major customers. Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker or decision making group in deciding how to allocate resources and in assessing performance. The Company's operations are managed as two businesses: 1) Integrated Manufacturing Solutions (IMS). IMS is a reportable segment consisting of printed circuit board assembly and test, final system assembly and test, and direct order fulfillment. 2) Components, Products and Services (CPS). Components include interconnect systems (printed circuit board fabrication, backplane, cable assemblies and plastic injection molding) and mechanical systems (enclosures and precision machining). Products include memory, RF, optical and microelectronics solutions from the Company's Viking Technology division; defense and aerospace products from SCI Technology; storage solutions from the Company's Newisys division and cloud-based manufacturing execution software from the Company's 42Q division. Services include design, engineering, logistics and repair services. The Company evaluated its operating segments to determine whether they can be aggregated into reportable segments. Factors considered in this evaluation were similarity of economic characteristics, products, production processes, type or classes of customers, distribution methods and regulatory environments. The Company determined that it has only one reportable segment - IMS, which generated approximately 80% of the Company's total revenue in 2017 . The Company's CPS business consists of multiple operating segments which, based on this evaluation, do not meet the quantitative threshold for being presented as reportable segments. Therefore, financial information for these operating segments is presented in a single category entitled “Components, Products and Services". The accounting policies for each segment are the same as those disclosed by the Company for its consolidated financial statements. Intersegment sales consist primarily of sales of components from CPS to IMS. The Company's chief operating decision making group is the Chief Executive Officer and Chief Financial Officer and they allocate resources and assess performance of operating segments based on a measure of revenue and gross profit that excludes items not directly related to the Company's ongoing business operations. These items are typically either non-recurring or non-cash in nature. Segment information is as follows: Year Ended September 30, 2017 October 1, 2016 October 3, 2015 (In thousands) Gross sales: IMS $ 5,645,499 $ 5,297,740 $ 5,157,427 CPS 1,422,264 1,372,412 1,414,797 Intersegment revenue (199,144 ) (188,971 ) (197,683 ) Net Sales $ 6,868,619 $ 6,481,181 $ 6,374,541 Gross Profit: IMS $ 404,350 $ 397,309 $ 366,436 CPS 127,154 121,696 135,064 Total 531,504 519,005 501,500 Unallocated items (1) (11,593 ) (4,723 ) (17,644 ) Total $ 519,911 $ 514,282 $ 483,856 Depreciation and amortization: IMS $ 74,769 $ 66,036 $ 56,428 CPS 31,109 33,062 35,526 Total 105,878 99,098 91,954 Unallocated corporate items (2) 12,873 12,812 8,613 Total $ 118,751 $ 111,910 $ 100,567 Capital expenditures (receipt basis): IMS $ 106,000 $ 83,084 $ 105,755 CPS 30,512 21,852 17,290 Total 136,512 104,936 123,045 Unallocated corporate items (2) 4,122 5,624 3,436 Total $ 140,634 $ 110,560 $ 126,481 (1) For purposes of evaluating segment performance, management excludes certain items from its measures of revenue and gross profit. These items consist of stock-based compensation expense, amortization of intangible assets, charges or credits resulting from distressed customers and acquisition-related items. (2) Primarily related to selling, general and administration functions. Segment assets, consisting of accounts receivable, inventories and fixed assets, are substantially proportional to segment sales. Information by geographic segment, determined based on the country in which a product is manufactured or a service is provided, was as follows: Year Ended September 30, October 1, October 3, (In thousands) Net sales: United States $ 1,234,739 $ 1,045,998 $ 1,029,897 Mexico 1,935,634 1,869,651 1,979,085 China 1,336,118 1,421,693 1,510,208 Malaysia 743,359 512,288 200,314 Other international 1,618,769 1,631,551 1,655,037 Total $ 6,868,619 $ 6,481,181 $ 6,374,541 Percentage of net sales represented by ten largest customers 52.9 % 52.0 % 48.3 % Number of customers representing 10% or more of net sales 2 1 — As of September 30, October 1, (In thousands) Property, plant and equipment, net: United States $ 165,254 $ 164,481 Mexico 187,094 145,916 China 80,787 80,894 Other international 207,140 226,233 Total $ 640,275 $ 617,524 |
Note 13 Stock-Based Compensatio
Note 13 Stock-Based Compensation | 12 Months Ended |
Sep. 30, 2017 | |
Share-based Compensation [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Stock-Based Compensation Stock-based compensation expense was attributable to: Year Ended September 30, October 1, October 3, (In thousands) Stock options $ 1,640 $ 3,943 $ 9,894 Restricted stock units, including performance-based awards 36,280 22,964 10,759 Total $ 37,920 $ 26,907 $ 20,653 Stock-based compensation expense was recognized as follows: Year Ended September 30, October 1, October 3, (In thousands) Cost of sales $ 8,959 $ 7,350 $ 6,611 Selling, general & administrative 28,169 18,903 13,859 Research & development 792 654 183 Total $ 37,920 $ 26,907 $ 20,653 Stock Options The Company's stock option plans provide employees the right to purchase common stock at the fair market value of such shares on the grant date. The Company recognizes compensation expense for such awards ratably over the vesting period, which is generally four to five years . The contractual term of all options is ten years, at which time such options expire. The Company did not grant any stock options in 2017 and only granted 1,000 stock options in 2016. Assumptions used to estimate the fair value of stock options granted in 2015 were as follows: October 3, Volatility 52.9 % Risk-free interest rate 1.6 % Dividend yield — Expected life of options 5.0 Stock option activity was as follows: Number of Shares Weighted-Average Exercise Price ($) Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value of In-The-Money Options ($) (In thousands) (In thousands) Outstanding as of September 27, 2014 8,181 12.90 5.30 93,767 Granted 567 24.48 Exercised/Cancelled/Forfeited/Expired (1,715 ) 16.13 Outstanding as of October 3, 2015 7,033 13.05 4.94 53,938 Granted 1 23.77 Exercised/Cancelled/Forfeited/Expired (1,520 ) 14.13 Outstanding as of October 1, 2016 5,514 12.75 4.10 81,659 Exercised/Cancelled/Forfeited/Expired (1,946 ) 14.44 Outstanding as of September 30, 2017 3,568 11.83 3.82 90,327 Exercisable as of September 30, 2017 3,469 11.51 3.73 88,950 The weighted-average grant date fair value of stock options granted during 2015 was $12.46 . The aggregate intrinsic value in the preceding table represents the total pre-tax intrinsic value of in-the-money options that would have been received by the option holders had all option holders exercised their options at the Company's closing stock price on the date indicated. The total intrinsic value of stock options exercised was $41.4 million for 2017 , $15.9 million for 2016 and $16.2 million for 2015 . The following table summarizes information regarding stock options outstanding at September 30, 2017 : Options Outstanding Options Vested and Exercisable Range of Weighted Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price ($) Number Exercisable Weighted Average Exercise Price ($) (In thousands) (In thousands) $1.80-$8.81 1,922 2.90 7.88 1,920 7.88 $8.82-$11.57 455 3.55 11.08 455 11.08 $11.58-$15.47 194 0.92 12.02 194 12.02 $15.48-$23.76 555 5.55 15.87 536 15.80 $23.77-$24.65 442 7.20 24.61 364 24.60 $1.80-$24.65 3,568 3.82 11.83 3,469 11.51 Restricted Stock Units The Company grants restricted stock units to executive officers, directors and certain management employees. These units vest over periods ranging from one to four years or based upon achievement of specified performance criteria and are automatically exchanged for shares of common stock at the vesting date. Compensation expense associated with these units is recognized ratably over the vesting period. Activity with respect to the Company's restricted stock units was as follows: Number of Shares Weighted Grant-Date Fair Value Per Share ($) Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value ($) (In thousands) (In thousands) Outstanding as of September 27, 2014 2,341 13.29 2.01 56,064 Granted 966 23.42 Vested/Forfeited/Cancelled (328 ) 13.79 Outstanding as of October 3, 2015 2,979 16.52 1.52 59,843 Granted 1,698 23.22 Vested/Forfeited/Cancelled (679 ) 15.33 Outstanding as of October 1, 2016 3,998 19.57 1.35 110,183 Granted 1,378 34.11 Vested/Forfeited/Cancelled (2,017 ) 16.20 Outstanding as of September 30, 2017 3,359 27.56 1.51 124,800 Expected to vest as of September 30, 2017 2,834 26.73 1.44 105,288 The vest-date fair value of restricted stock units vested was $53.2 million for 2017 , $10.4 million for 2016 and $6.7 million for 2015. As of September 30, 2017 , unrecognized compensation expense of $41.9 million is expected to be recognized over a weighted average period of 1.5 years. Additionally, as of September 30, 2017 , unrecognized compensation expense related to performance-based restricted stock units for which achievement of vesting criteria is not currently considered probable was $9.4 million . |
Note 14 Employee Benefit Plans
Note 14 Employee Benefit Plans | 12 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Employee Benefit Plans The Company has various defined contribution retirement plans that cover the majority of its domestic employees. These retirement plans permit participants to elect to have contributions made to the retirement plans in the form of salary deferrals. Under these retirement plans, the Company may match a portion of employee contributions. Amounts contributed by the Company were not material for any period presented herein. The Company sponsors a deferred compensation plan for eligible employees that allows participants to defer payment of all or part of their compensation. Deferrals under these plans were $4.9 million and $4.2 million for 2017 and 2016 , respectively. Assets and liabilities associated with these plans were approximately $26.8 million and $28.5 million , respectively as of September 30, 2017 and $20.1 million and $21.5 million , respectively as of October 1, 2016 . These amounts are recorded in other non-current assets and other long-term liabilities on the consolidated balance sheets. Two of the funds in which plan participants can invest are managed by an independent global investment manager that is considered a related party of the Company since it owned more than 10% of the Company's outstanding common stock as of September 30, 2017. Approximately 35% of the plan's assets are in these funds, only one of which holds a position in the Company's stock (represents less than one-quarter of one percent of the fund's holdings). Defined benefit plans covering certain employees in the United States and Canada were frozen in 2001. Employees who had not yet vested will continue to be credited with service until vesting occurs, but no additional benefits will accrue. The Company also provides defined benefit pension plans in certain other countries. The assumptions used for calculating the pension benefit obligations for non-U.S. plans depend on the local economic environment and regulations. The measurement date for the Company's defined benefit plans is September 30, 2017 . Changes in benefit obligations for the defined benefit plans described above were as follows (in thousands): As of September 30, 2017 As of October 1, 2016 As of October 3, 2015 Change in Benefit Obligations U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Beginning projected benefit obligation $ 28,375 $ 53,656 $ 26,441 $ 48,816 $ 27,351 $ 49,053 Service cost — 1,210 — 1,569 — 1,143 Interest cost 737 1,088 871 1,341 819 1,498 Actuarial gain (loss) (1,987 ) (5,609 ) 3,456 3,244 492 4,625 Benefits paid (709 ) (1,499 ) (718 ) (1,266 ) (660 ) (942 ) Other (1) (1,673 ) 27 (1,675 ) (48 ) (1,561 ) (6,561 ) Ending projected benefit obligation $ 24,743 $ 48,873 $ 28,375 $ 53,656 $ 26,441 $ 48,816 Ending accumulated benefit obligation $ 24,743 $ 45,532 $ 28,375 $ 48,371 $ 26,441 $ 45,129 (1) Includes miscellaneous items such as settlements, curtailments, foreign exchange rate movements, etc. Weighted-average actuarial assumptions used to determine benefit obligations were as follows: U.S. Pensions Non-U.S. Pensions As of As of September 30, October 1, September 30, October 1, Discount rate 3.05 % 2.71 % 2.78 % 2.32 % Rate of compensation increases — % — % 1.98 % 2.72 % The Company evaluates these assumptions on a regular basis taking into consideration current market conditions and historical market data. The discount rate is used to measure expected future cash flows at present value on the measurement date. This rate represents the market rate for high-quality fixed income investments. A lower discount rate would increase the present value of the benefit obligation. Other assumptions include demographic factors such as retirement, mortality, and turnover. Changes in plan assets and funded status for the defined benefit plans described above were as follows (in thousands): As of September 30, 2017 As of October 1, 2016 As of October 3, 2015 Change in Plan Assets U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Beginning fair value $ 17,594 $ 26,045 $ 18,646 $ 27,079 $ 21,472 $ 29,049 Actual return 1,598 590 1,341 (461 ) (605 ) 2,231 Employer contributions 120 695 — 607 — 422 Benefits paid (709 ) (1,499 ) (718 ) (1,266 ) (660 ) (942 ) Other (1) (1,673 ) 1,162 (1,675 ) 86 (1,561 ) (3,681 ) Ending fair value $ 16,930 $ 26,993 $ 17,594 $ 26,045 $ 18,646 $ 27,079 Underfunded status $ (7,813 ) $ (21,880 ) $ (10,781 ) $ (27,611 ) $ (7,795 ) $ (21,737 ) (1) Includes miscellaneous items such as settlements, foreign exchange rate movements, etc. Weighted-average asset allocations by asset category for the U.S. and non-U.S. plans were as follows: U.S. Non-U.S. Level 1 Level 1 As of As of Target September 30, 2017 October 1, 2016 Target September 30, 2017 October 1, 2016 Equity securities 51 % 52.8 % 51.1 % 20 % 30.0 % 26.4 % Debt securities 49 % 47.2 % 48.9 % 80 % 67.5 % 72.3 % Cash — % — % — % — % 2.5 % 1.3 % Total 100 % 100 % 100 % 100 % 100 % 100 % The Company's investment strategy is designed to ensure that sufficient pension assets are available to pay benefits as they become due. In order to meet this objective, the Company has established targeted investment allocation percentages for equity and debt securities as noted in the preceding table. As of September 30, 2017 , U.S. plan assets are invested in mutual funds which are valued based on the net asset value (NAV) of the underlying securities that is reflective of quoted prices in an active market. The beneficial interest of each participant is represented in units which are issued and redeemed daily at the fund's closing NAV. Non-U.S. plan assets are invested in publicly-traded mutual funds consisting of medium-term Euro bonds and stocks of companies in the European region. The mutual funds are valued using the NAV that is quoted in an active market. The plans are managed consistent with regulations or market practices of the country in which the assets are invested. As of September 30, 2017 there were no significant concentrations of credit risk related to pension plan assets. The funded status of the plans, reconciled to the amount reported on the consolidated balance sheets, is as follows (in thousands): As of September 30, 2017 As of October 1, 2016 As of October 3, 2015 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Components of net amount recognized on consolidated balance sheets: Current liabilities $ — $ (1,117 ) $ — $ (1,260 ) $ — $ (1,067 ) Non-current liabilities (7,813 ) (20,763 ) (10,781 ) (26,351 ) (7,795 ) (20,670 ) Net liability recognized on consolidated balance sheets $ (7,813 ) $ (21,880 ) $ (10,781 ) $ (27,611 ) $ (7,795 ) $ (21,737 ) Amounts recognized in AOCI (pre-tax) consist primarily of unrecognized net actuarial losses and are as follows (in thousands): As of September 30, 2017 October 1, 2016 As of October 3, 2015 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Accumulated other comprehensive loss $ 4,484 $ 10,076 $ 7,801 $ 16,841 $ 6,550 $ 12,958 Estimated amortization from accumulated other comprehensive income into net periodic benefit cost in 2018 is not material. Net periodic benefit costs consist primarily of service cost and interest cost and were not material for any period presented herein. Weighted-average assumptions used to determine benefit costs were as follows: U.S. Pensions Non-U.S. Pensions September 30, October 1, September 30, October 1, Discount rate 2.71 % 3.45 % 2.32 % 2.79 % Expected return on plan assets 4.50 % 4.50 % 1.70 % 1.30 % Rate of compensation increases — % — % 2.72 % 2.58 % The expected long-term rate of return on assets for the U.S. and non-U.S. pension plans used in these calculations is developed considering several factors, including historical rates of returns, expectations of future returns for each major asset class in which the plan invests, the weight of each asset class in the target mix, the correlations between asset classes and their expected volatilities. Estimated future benefit payments are as follows: Pension Benefits (In thousands) 2018 $ 7,787 2019 $ 4,169 2020 $ 3,960 2021 $ 4,276 2022 $ 4,273 Years 2023 through 2027 $ 21,377 |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Sep. 30, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts Disclosure [Text Block] | The financial statement Schedule II-VALUATION AND QUALIFYING ACCOUNTS is filed as part of this Form 10-K. SANMINA CORPORATION SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS Balance at Beginning of Period Charged to Operations Charges Utilized Balance at End of Period (In thousands) Allowances for Doubtful Accounts, Product Returns and Other Net Sales Adjustments Fiscal year ended October 3, 2015 $ 10,278 $ 3,161 $ — $ 13,439 Fiscal year ended October 1, 2016 $ 13,439 $ 1,642 $ — $ 15,081 Fiscal year ended September 30, 2017 $ 15,081 $ (747 ) $ — $ 14,334 |
Note 1 Organization of Sanmina
Note 1 Organization of Sanmina Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fiscal Period, Policy [Policy Text Block] | Fiscal Year. The Company operates on a 52 or 53 week year ending on the Saturday nearest September 30. Fiscal 2017 and 2016 were each 52 weeks and fiscal 2015 was a 53-week year, with the extra week occurring in the fourth fiscal quarter. The additional week in 2015 did not significantly affect the Company's results of operations or financial position. All references to years relate to fiscal years unless otherwise noted. |
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block] | Principles of Consolidation. The consolidated financial statements include the Company's accounts and those of its subsidiaries. All intercompany balances and transactions have been eliminated. |
Note 2 Summary of Significant24
Note 2 Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | Management Estimates and Uncertainties. The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates made in preparing the consolidated financial statements relate to allowances for accounts receivable; provisions for excess and obsolete inventories, product returns, warranties, environmental matters, and legal exposures; determining the recoverability of claims made in connection with customer bankruptcies; determining liabilities for uncertain tax positions; determining the realizability of deferred tax assets; determining fair values of tangible and intangible assets for purposes of business combinations and impairment tests; determining fair values of contingent consideration and equity awards; and determining forfeiture rates for purposes of calculating stock compensation expense. Actual results could differ materially from these estimates. |
Financial Instruments And Concentration of Credit Risk [Policy Text Block] | Financial Instruments and Concentration of Credit Risk. Financial instruments consist primarily of cash and cash equivalents, accounts receivable, foreign currency forward contracts, accounts payable and debt obligations. With the exception of certain of the Company's debt obligations (refer to Note 4. Financial Instruments), the fair value of these financial instruments approximates their carrying amount as of September 30, 2017 and October 1, 2016 due to the nature or short maturity of these instruments, or the fact that the instruments are recorded at fair value on the consolidated balance sheets. Accounts Receivable and Other Related Allowances. The Company had allowances of $14.3 million and $15.1 million as of September 30, 2017 and October 1, 2016 , respectively, for uncollectible accounts, product returns and other net sales adjustments. One of the Company's most significant risks is the ultimate realization of its accounts receivable. This risk is mitigated by ongoing credit evaluations of customers and frequent contact with customers, especially the most significant customers, which enable the Company to monitor changes in its customers' business operations and respond accordingly. To establish the allowance for doubtful accounts, the Company estimates credit risk associated with accounts receivable by considering the creditworthiness of its customers, past experience, specific facts and circumstances, and the overall economic climate in industries that it serves. To establish the allowance for product returns and other adjustments, the Company primarily utilizes historical data. |
Inventory, Policy [Policy Text Block] | Inventories. Inventories are stated at the lower of cost (first-in, first-out method) or market. Cost includes labor, materials and manufacturing overhead. Provisions are made to reduce excess and obsolete inventories to their estimated net realizable values. The ultimate realization of inventory carrying amounts is primarily affected by changes in customer demand. Inventory provisions are established based on forecasted demand, past experience with specific customers, the age and nature of the inventory, the ability to redistribute inventory to other programs or back to suppliers, and whether customers are contractually obligated and have the ability to pay for the related inventory. Certain payments received from customers for inventory held by the Company are recorded as a reduction of inventory. |
Property, Plant and Equipment, Policy [Policy Text Block] | Long-lived Assets. Property, plant and equipment are stated at cost or, in the case of property and equipment acquired through business combinations, at fair value as of the acquisition date. Depreciation is provided on a straight-line basis over 20 to 40 years for buildings and 3 to 15 years for machinery, equipment, furniture and fixtures. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or useful life of the asset . The Company reviews property, plant and equipment and intangible assets subject to amortization for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. An asset group is the unit of accounting which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets. An asset or asset group is considered impaired if its carrying amount exceeds the undiscounted future net cash flows the asset or asset group is expected to generate. If an asset or asset group is considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset or asset group exceeds its fair value. For asset groups for which the primary asset is a building, the Company estimates fair value based on data provided by commercial real estate brokers. For other asset groups, the Company estimates fair value based on projected discounted future net cash flows. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill. Goodwill is tested for impairment on an annual basis and whenever events or changes in circumstances indicate that the carrying amount of goodwill may not be recoverable, as assessed at a reporting unit level. If, based on a qualitative assessment, the Company determines it is more-likely-than-not that goodwill is impaired, the Company performs a quantitative assessment to determine whether the fair value of our reporting unit is less than its carrying value and, if so, the Company performs a further analysis to determine the amount, if any, of the impairment. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation. For foreign subsidiaries using the local currency as their functional currency, assets and liabilities are translated to U.S. dollars at exchange rates in effect at the balance sheet date and income and expenses are translated at average exchange rates. The effects of these translation adjustments are reported in stockholders' equity as a component of accumulated other comprehensive income ("AOCI"). For all entities, remeasurement adjustments for non-functional currency monetary assets and liabilities are included in other income (expense), net in the accompanying consolidated statements of income. Remeasurement gains and losses arising from long-term intercompany loans denominated in a currency other than an entity's functional currency are recorded in AOCI if repayment of the loan is not anticipated in the foreseeable future. |
Derivatives, Policy [Policy Text Block] | Derivative Instruments and Hedging Activities. The Company conducts business on a global basis in numerous currencies and is therefore exposed to movements in foreign currency exchange rates. The Company uses foreign currency forward contracts to minimize the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. The Company accounts for derivative instruments and hedging activities in accordance with ASC Topic 815, Derivatives and Hedging, which requires each derivative instrument to be recorded on the consolidated balance sheets at its fair value as either an asset or a liability. If a derivative is designated as a cash flow hedge, the effective portion of changes in the fair value of the derivative is recorded in stockholders' equity as a separate component of AOCI and is recognized in earnings when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges are immediately recognized in earnings. If a derivative is designated as a fair value hedge, changes in the fair value of the derivative and of the item being hedged are recognized in earnings in the current period. Derivative instruments are entered into for periods of time consistent with the related underlying exposures and are not entered into for speculative purposes. At the inception of a hedge, the Company documents all relationships between derivative instruments and related hedged items, as well as its risk-management objectives and strategies for the hedging transaction. The Company's foreign currency forward contracts potentially expose the Company to credit risk to the extent the counterparties may be unable to meet the terms of the agreement. The Company minimizes such risk by seeking high quality counterparties. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition. The Company derives revenue principally from sales of manufacturing services, components and other products. Other sources of revenue include order fulfillment, logistic and repair services, and sales of certain inventory, primarily raw materials, to customers whose requirements change after the Company has procured inventory to fulfill the customers' forecasted demand. The Company recognizes revenue for manufacturing services, components, products and sales of certain inventory when a persuasive arrangement between the Company and the buyer exists, usually in the form of a purchase order received from the Company's customer, the price is fixed or determinable, delivery or performance has occurred and collectability is reasonably assured. Generally, there are no formal customer acceptance requirements or further obligations related to the product or the inventory subsequent to transfer of title and risk of loss. The Company's order fulfillment and logistics services involve warehousing and managing finished product on behalf of a customer. These services are usually provided in conjunction with manufacturing services at one of the Company's facilities. In these instances, revenue for manufacturing services is deferred until the related goods are delivered to the customer, which is upon completion of order fulfillment and logistics services. In certain instances, the Company's facility used to provide order fulfillment and logistics services is controlled by the customer pursuant to a separate arrangement. In these instances, revenue for manufacturing services is recognized upon receipt of the manufactured product at the customer-controlled location and revenue for order fulfillment and logistics services is recognized separately as the services are provided. Revenue for repair services is generally recognized upon completion of the services. Provisions are made for estimated sales returns and other adjustments at the time revenue is recognized. Such provisions were not material to the consolidated financial statements for any period presented herein. The Company presents sales net of sales taxes and value-added taxes in its consolidated statements of income. Amounts billed to customers for shipping and handling are recorded as revenue and shipping and handling costs incurred by the Company are included in cost of sales. |
Income Tax, Policy [Policy Text Block] | Income taxes. The Company estimates its income tax provision or benefit in each of the jurisdictions in which it operates, including estimating exposures and making judgments regarding the realizability of deferred tax assets. The carrying value of the Company's net deferred tax assets is based on the Company's belief that it is more likely than not that the Company will generate sufficient future taxable income in certain jurisdictions to realize these deferred tax assets. A valuation allowance has been established for deferred tax assets which do not meet the “more likely than not” criteria discussed above . The Company's tax rate is highly dependent upon the geographic distribution of its worldwide income or losses, the tax regulations and tax holidays in each geographic region, the availability of tax credits and carryforwards, including net operating losses, and the effectiveness of its tax planning strategies. The Company makes an assessment of whether each income tax position is “more likely than not” of being sustained on audit, including resolution of related appeals or litigation, if any. For each income tax position that meets the “more likely than not” recognition threshold, the Company then assesses the largest amount of tax benefit that is greater than 50% likely of being realized upon effective settlement with the tax authority. Interest and penalties related to unrecognized tax benefits are recognized as a component of income tax expense. |
New Accounting Pronouncements [Text Block] | Recent Accounting Pronouncements Adopted in Fiscal Year 2017 In August 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-15 "Classification of Certain Cash Receipts and Cash Payments (Topic 230)". This ASU addresses the classification and presentation of eight specific cash flow issues that currently result in diverse practices. The Company adopted this ASU at the beginning of fiscal 2017, the adoption of which did not have a significant effect on the statement of cash flows. In September 2015, the FASB issued ASU 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments (Topic 805)". This ASU requires the Company to recognize adjustments to provisional amounts identified during the measurement period in the reporting period in which the adjustments are determined. Additionally, the Company is required to disclose the amount recorded in current-period earnings that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The Company adopted this ASU at the beginning of fiscal 2017, the adoption of which did not affect the Company's financial statements. In April 2015, the FASB issued ASU 2015-3, "Simplifying the Presentation of Debt Issuance Costs (Topic 835)". This ASU requires presentation of debt issuance costs in the balance sheet as a direct deduction from the related debt liability, rather than as an asset. The Company adopted this ASU at the beginning of fiscal 2017, the adoption of which did not affect the Company's financial statements. Recent Accounting Pronouncements Not Yet Adopted In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements for Accounting For Hedging Activities", simplifying hedge accounting guidance and improving the financial reporting of hedging relationships by allowing an entity to better align its risk management activities and financial reporting for hedging relationships through changes to both designation and measurement for qualifying hedging relationships and the presentation of hedge results. This standard eliminates the requirement to separately measure and report hedge ineffectiveness resulting in full recognition of the change in fair value (that impact earnings) in earnings in the same income statement line item that is used to present the earnings effect of the hedged item. In addition, the guidance allows more flexibility in the requirements to qualify for and maintain hedge accounting. This ASU is effective for the Company at the beginning of fiscal 2020 and early adoption is permitted. The Company is currently evaluating the potential impact of this ASU and when to adopt this ASU. In March 2017, the FASB issued ASU 2017-07, "Compensation-Retirement Benefits (Topic 715)". This ASU requires the service costs component of net periodic pension costs to be presented in the same line item as other compensation costs and all other components of net periodic pension costs to be presented in the income statement as nonoperating expenses. This ASU is effective for the Company at the beginning of fiscal 2019 and should be applied retrospectively. A practical expedient permits the use of estimates for applying the retrospective presentation requirements. The Company does not expect the impact of adopting this new accounting standard to be significant. In January 2017, the FASB issued ASU 2017-04, "Intangibles-Goodwill and Other (Topic 350)". This ASU simplifies the test for goodwill impairment by eliminating Step 2 of the goodwill impairment test which requires a hypothetical purchase price allocation to measure goodwill. A goodwill impairment loss will instead be measured at the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill allocated to that reporting unit. This ASU is effective for the Company at the beginning of fiscal 2021 and early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating when to adopt this ASU. In January 2017, the FASB issued ASU 2017-01, "Business Combinations (Topic 805)". This ASU provides guidance to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new standard is effective for the Company at the beginning of fiscal 2019, including interim periods within that reporting period, but early adoption is permitted. The Company is currently evaluating when to adopt this ASU. In November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows (Topic 230)". This ASU requires that the statement of cash flows explains the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Companies will also be required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. This ASU is effective for the Company at the beginning of fiscal 2019, including interim periods within that annual period, but early adoption is permitted. The Company is currently evaluating when to adopt this ASU and does not expect the impact of adopting this new accounting standard to be significant. In October 2016, the FASB issued ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory (Topic 740)". This ASU simplifies the accounting for income tax consequences of intra-entity transfers of assets other than inventory by requiring recognition of current and deferred income tax consequences when such transfers occur. The new standard is effective for the Company at the beginning of fiscal 2019, including interim periods within that annual period, but early adoption is permitted. The Company is currently evaluating when to adopt this ASU, but does not expect the impact of adopting this new accounting standard to be significant. In March 2016, the FASB issued ASU 2016-09 "Improvements to Employee Share-Based Payment Accounting (Topic 718)". This ASU addresses several aspects of accounting for share-based payment award transactions, including: (a) income tax consequences, (b) classification of awards as either equity or liabilities, and (c) classification in the statement of cash flows. The new standard is effective for the Company at the beginning of fiscal 2018, including interim periods within that reporting period, but early adoption is allowed. The Company will adopt this ASU at the beginning of fiscal 2018. Upon adoption, the Company expects to record an increase to its deferred tax assets of approximately $44.0 million , with a corresponding increase to retained earnings. This ASU is expected to increase the variability of the Company's provision for income taxes, the effect of which could be material. In February 2016, the FASB issued ASU 2016-02, "Leases: Amendments to the FASB Accounting Standards Codification (Topic 842)". This ASU requires the Company to recognize on the balance sheet the assets and liabilities for the rights and obligations created by leases with terms of more than twelve months. This ASU also requires disclosures enabling the users of financial statements to understand the amount, timing and uncertainty of cash flows arising from leases. The new standard is effective for the Company at the beginning of fiscal 2020, including interim periods within that reporting period. The Company expects the impact of adopting this new accounting standard to be material to its consolidated balance sheet, but is still evaluating the impact to its consolidated statement of income. In July 2015, the FASB issued ASU 2015-11, "Simplifying the Measurement of Inventory (Topic 330)". This ASU requires measurement of inventory at the lower of cost and net realizable value. Net realizable value is defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Currently, inventory is generally measured at the lower of cost or market, except for excess and obsolete inventories which are carried at their estimated net realizable values. This new standard is effective for the Company in fiscal 2018, including interim periods within that reporting period. The Company does not expect the impact of adopting this new accounting standard to be significant. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)," which supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605).” This ASU requires an entity to recognize revenue when goods are transferred or services are provided to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU 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. The new standard is effective for the Company in fiscal 2019, including interim periods within that reporting period, using one of two prescribed transition methods. The Company has determined that the new standard will result in a change to the timing of revenue recognition for a significant portion of the Company's revenue stream, whereby revenue will be recognized "over time" as opposed to at a "point in time" upon physical delivery. The new standard could have a material impact to the Company's consolidated financial statements upon initial adoption, but the Company does not expect the effect of the new standard to materially impact its revenue or gross profit on a rollover basis in periods after adoption. The Company has not yet selected a transition method and continues to closely monitor implementation issues and other guidance published by the standard setters. |
Note 3 Balance Sheet and Inco25
Note 3 Balance Sheet and Income Statement Items (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Balance Sheet and Income Statement Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | As of September 30, October 1, (In thousands) Raw materials $ 834,694 $ 671,240 Work-in-process 106,914 144,355 Finished goods 110,061 130,644 Total $ 1,051,669 $ 946,239 |
Property, Plant and Equipment [Table Text Block] | As of September 30, October 1, (In thousands) Machinery and equipment $ 1,452,648 $ 1,401,745 Land and buildings 607,701 601,468 Leasehold improvements 55,688 53,999 Furniture and fixtures 22,989 21,834 Construction in progress 37,864 34,415 2,176,890 2,113,461 Less: Accumulated depreciation and amortization (1,536,615 ) (1,495,937 ) Property, plant and equipment, net $ 640,275 $ 617,524 |
Schedule of Intangible Assets and Goodwill [Table Text Block] | As of September 30, October 1, (In thousands) Goodwill - beginning of year $ 59,126 $ 26,617 Additions — 32,509 Goodwill - end of year 59,126 59,126 Intangible assets - beginning of year $ 16,498 $ 16,588 Additions — 7,330 Amortization (7,280 ) (7,420 ) Intangible assets - end of year $ 9,218 $ 16,498 |
Schedule of Other Operating Cost and Expense, by Component [Table Text Block] | Year Ended September 30, October 1, October 3, (In thousands) Restructuring $ 1,339 $ 2,701 $ 13,683 Amortization of intangible assets 3,672 3,446 2,054 Asset impairment 4,600 1,000 3,454 Gain on sale of long-lived assets (1,451 ) — (10,807 ) $ 8,160 $ 7,147 $ 8,384 |
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | Year ended September 30, October 1, October 3, Foreign exchange gains / (losses) $ 4,709 $ (415 ) $ 681 Bargain purchase gain, net of tax — 1,642 — Other, net 2,973 2,836 86 Total $ 7,682 $ 4,063 $ 767 |
Note 4 Derivative Financial Ins
Note 4 Derivative Financial Instruments (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Financial Instruments, at Fair Value [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | As of September 30, 2017 October 1, 2016 Derivatives Designated as Accounting Hedges: Notional amount (in thousands) $105,523 $110,242 Number of contracts 58 43 Derivatives Not Designated as Accounting Hedges: Notional amount (in thousands) $302,944 $313,558 Number of contracts 46 46 |
Note 6 Debt (Tables)
Note 6 Debt (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | As of September 30, October 1, (In thousands) Secured debt due 2017 $ — $ 40,000 Senior secured notes due 2019 375,000 375,000 Non-interest bearing promissory notes 19,863 22,475 Total long-term debt 394,863 437,475 Less: Current portion of non-interest bearing promissory notes 3,416 3,416 Long-term debt $ 391,447 $ 434,059 |
Note 7 Commitment and Conting28
Note 7 Commitment and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lessee, Operating Lease, Disclosure [Table Text Block] | (In thousands) 2018 $ 23,692 2019 14,658 2020 8,946 2021 7,894 2022 6,521 Thereafter 22,607 Total $ 84,318 |
Note 8 Income Tax (Tables)
Note 8 Income Tax (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Year Ended September 30, October 1, October 3, (In thousands) Domestic $ 128,493 $ 138,138 $ 91,613 Foreign 84,987 66,479 84,580 Total $ 213,480 $ 204,617 $ 176,193 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year Ended September 30, October 1, October 3, (In thousands) Federal: Current $ (2,524 ) $ 490 $ 1,413 Deferred 37,543 (4,550 ) (226,225 ) State: Current 1,648 (265 ) 543 Deferred 4,204 (5,141 ) (513 ) Foreign: Current 37,076 32,427 42,295 Deferred (3,300 ) (6,182 ) (18,581 ) Total provision for (benefit from) income taxes $ 74,647 $ 16,779 $ (201,068 ) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | As of September 30, 2017 October 1, 2016 (In thousands) Deferred tax assets: U.S. net operating loss carryforwards $ 338,492 $ 373,933 Foreign net operating loss carryforwards 186,684 199,313 Acquisition related intangibles 13,913 28,928 Accruals not currently deductible 55,582 59,879 Property, plant and equipment 20,746 9,939 Tax credit carryforwards 11,832 14,191 Reserves not currently deductible 21,710 27,626 Stock compensation expense 21,151 20,617 Unrealized losses 4,475 4,475 Other 3,949 2,730 Valuation allowance (163,267 ) (176,422 ) Total deferred tax assets 515,267 565,209 Deferred tax liabilities on foreign earnings (36,027 ) (37,122 ) Other deferred tax liabilities (8,140 ) (19,228 ) Net deferred tax assets $ 471,100 $ 508,859 Recorded as: Non-current deferred tax assets $ 476,554 $ 514,314 Non-current deferred tax liabilities (5,454 ) (5,455 ) Net deferred tax assets $ 471,100 $ 508,859 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended September 30, October 1, October 3, Federal tax at statutory tax rate 35.00 % 35.00 % 35.00 % Effect of foreign operations 1.89 5.35 3.82 Foreign income inclusion 0.26 9.43 0.21 Permanent items 2.10 (0.29 ) 2.05 Release of valuation allowance — (47.10 ) (163.92 ) Discrete benefit of foreign restructuring (4.92 ) — — Other (2.10 ) 4.61 4.41 State income taxes, net of federal benefit 2.72 1.18 4.31 Effective tax rate 34.95 % 8.18 % (114.12 )% |
Summary of Income Tax Contingencies [Table Text Block] | Year Ended September 30, October 1, October 3, (In thousands) Balance, beginning of year $ 55,773 $ 51,158 $ 54,237 Increase (decrease) related to prior year tax positions 1,508 (2,413 ) (5,044 ) Increase related to current year tax positions 9,741 7,028 5,564 Settlements — — (3,599 ) Balance, end of year $ 67,022 $ 55,773 $ 51,158 |
Note 9 Earnings Per Share (Tabl
Note 9 Earnings Per Share (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year Ended September 30, October 1, October 3, 2015 (In thousands, except per share amounts) Numerator: Net income $ 138,833 $ 187,838 $ 377,261 Denominator: Weighted average common shares outstanding 74,481 75,094 81,818 Effect of dilutive stock options and restricted stock units 3,647 3,693 3,823 Denominator for diluted earnings per share 78,128 78,787 85,641 Net income per share: Basic $ 1.86 $ 2.50 $ 4.61 Diluted $ 1.78 $ 2.38 $ 4.41 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | As of September 30, 2017 October 1, 2016 October 3, 2015 Potentially dilutive securities: (In thousands) Employee stock options — 477 776 Restricted stock units 6 3 13 Total 6 480 789 |
Note 10 Stockholders' Equity (T
Note 10 Stockholders' Equity (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | As of September 30, October 1, (In thousands) Foreign currency translation adjustments $ 90,952 $ 90,364 Unrealized holding losses on derivative financial instruments (212 ) (439 ) Unrecognized net actuarial loss and unrecognized transition cost for benefit plans (13,946 ) (24,544 ) Total $ 76,794 $ 65,381 |
Note 11 Acquisition (Tables)
Note 11 Acquisition (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | (In thousands) Current assets, including cash of $1.3 million $ 33,198 Noncurrent assets, including identifiable intangible assets of $7.3 million and goodwill of $30.8 million 62,632 Current liabilities (3,146 ) Noncurrent liabilities (725 ) Total 91,959 Bargain purchase gain, net of tax (1,642 ) Total consideration paid $ 90,317 |
Note 12 Business Segment, Geo33
Note 12 Business Segment, Geographic and Customer Information (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Year Ended September 30, 2017 October 1, 2016 October 3, 2015 (In thousands) Gross sales: IMS $ 5,645,499 $ 5,297,740 $ 5,157,427 CPS 1,422,264 1,372,412 1,414,797 Intersegment revenue (199,144 ) (188,971 ) (197,683 ) Net Sales $ 6,868,619 $ 6,481,181 $ 6,374,541 Gross Profit: IMS $ 404,350 $ 397,309 $ 366,436 CPS 127,154 121,696 135,064 Total 531,504 519,005 501,500 Unallocated items (1) (11,593 ) (4,723 ) (17,644 ) Total $ 519,911 $ 514,282 $ 483,856 Depreciation and amortization: IMS $ 74,769 $ 66,036 $ 56,428 CPS 31,109 33,062 35,526 Total 105,878 99,098 91,954 Unallocated corporate items (2) 12,873 12,812 8,613 Total $ 118,751 $ 111,910 $ 100,567 Capital expenditures (receipt basis): IMS $ 106,000 $ 83,084 $ 105,755 CPS 30,512 21,852 17,290 Total 136,512 104,936 123,045 Unallocated corporate items (2) 4,122 5,624 3,436 Total $ 140,634 $ 110,560 $ 126,481 (1) For purposes of evaluating segment performance, management excludes certain items from its measures of revenue and gross profit. These items consist of stock-based compensation expense, amortization of intangible assets, charges or credits resulting from distressed customers and acquisition-related items. (2) Primarily related to selling, general and administration functions. |
Revenue from External Customers by Geographic Areas [Table Text Block] | Year Ended September 30, October 1, October 3, (In thousands) Net sales: United States $ 1,234,739 $ 1,045,998 $ 1,029,897 Mexico 1,935,634 1,869,651 1,979,085 China 1,336,118 1,421,693 1,510,208 Malaysia 743,359 512,288 200,314 Other international 1,618,769 1,631,551 1,655,037 Total $ 6,868,619 $ 6,481,181 $ 6,374,541 Percentage of net sales represented by ten largest customers 52.9 % 52.0 % 48.3 % Number of customers representing 10% or more of net sales 2 1 — |
Schedule of Long-lived Assets by Geographic Areas [Table Text Block] | As of September 30, October 1, (In thousands) Property, plant and equipment, net: United States $ 165,254 $ 164,481 Mexico 187,094 145,916 China 80,787 80,894 Other international 207,140 226,233 Total $ 640,275 $ 617,524 |
Note 13 Stock-Based Compensat34
Note 13 Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Share-based Compensation [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Year Ended September 30, October 1, October 3, (In thousands) Stock options $ 1,640 $ 3,943 $ 9,894 Restricted stock units, including performance-based awards 36,280 22,964 10,759 Total $ 37,920 $ 26,907 $ 20,653 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Year Ended September 30, October 1, October 3, (In thousands) Cost of sales $ 8,959 $ 7,350 $ 6,611 Selling, general & administrative 28,169 18,903 13,859 Research & development 792 654 183 Total $ 37,920 $ 26,907 $ 20,653 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | October 3, Volatility 52.9 % Risk-free interest rate 1.6 % Dividend yield — Expected life of options 5.0 |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Number of Shares Weighted-Average Exercise Price ($) Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value of In-The-Money Options ($) (In thousands) (In thousands) Outstanding as of September 27, 2014 8,181 12.90 5.30 93,767 Granted 567 24.48 Exercised/Cancelled/Forfeited/Expired (1,715 ) 16.13 Outstanding as of October 3, 2015 7,033 13.05 4.94 53,938 Granted 1 23.77 Exercised/Cancelled/Forfeited/Expired (1,520 ) 14.13 Outstanding as of October 1, 2016 5,514 12.75 4.10 81,659 Exercised/Cancelled/Forfeited/Expired (1,946 ) 14.44 Outstanding as of September 30, 2017 3,568 11.83 3.82 90,327 Exercisable as of September 30, 2017 3,469 11.51 3.73 88,950 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Options Outstanding Options Vested and Exercisable Range of Weighted Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price ($) Number Exercisable Weighted Average Exercise Price ($) (In thousands) (In thousands) $1.80-$8.81 1,922 2.90 7.88 1,920 7.88 $8.82-$11.57 455 3.55 11.08 455 11.08 $11.58-$15.47 194 0.92 12.02 194 12.02 $15.48-$23.76 555 5.55 15.87 536 15.80 $23.77-$24.65 442 7.20 24.61 364 24.60 $1.80-$24.65 3,568 3.82 11.83 3,469 11.51 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Number of Shares Weighted Grant-Date Fair Value Per Share ($) Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value ($) (In thousands) (In thousands) Outstanding as of September 27, 2014 2,341 13.29 2.01 56,064 Granted 966 23.42 Vested/Forfeited/Cancelled (328 ) 13.79 Outstanding as of October 3, 2015 2,979 16.52 1.52 59,843 Granted 1,698 23.22 Vested/Forfeited/Cancelled (679 ) 15.33 Outstanding as of October 1, 2016 3,998 19.57 1.35 110,183 Granted 1,378 34.11 Vested/Forfeited/Cancelled (2,017 ) 16.20 Outstanding as of September 30, 2017 3,359 27.56 1.51 124,800 Expected to vest as of September 30, 2017 2,834 26.73 1.44 105,288 |
Note 14 Employee Benefit Plans
Note 14 Employee Benefit Plans (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Changes in Projected Benefit Obligations [Table Text Block] | As of September 30, 2017 As of October 1, 2016 As of October 3, 2015 Change in Benefit Obligations U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Beginning projected benefit obligation $ 28,375 $ 53,656 $ 26,441 $ 48,816 $ 27,351 $ 49,053 Service cost — 1,210 — 1,569 — 1,143 Interest cost 737 1,088 871 1,341 819 1,498 Actuarial gain (loss) (1,987 ) (5,609 ) 3,456 3,244 492 4,625 Benefits paid (709 ) (1,499 ) (718 ) (1,266 ) (660 ) (942 ) Other (1) (1,673 ) 27 (1,675 ) (48 ) (1,561 ) (6,561 ) Ending projected benefit obligation $ 24,743 $ 48,873 $ 28,375 $ 53,656 $ 26,441 $ 48,816 Ending accumulated benefit obligation $ 24,743 $ 45,532 $ 28,375 $ 48,371 $ 26,441 $ 45,129 (1) Includes miscellaneous items such as settlements, curtailments, foreign exchange rate movements, etc. |
Schedule of Changes in Fair Value of Plan Assets [Table Text Block] | As of September 30, 2017 As of October 1, 2016 As of October 3, 2015 Change in Plan Assets U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Beginning fair value $ 17,594 $ 26,045 $ 18,646 $ 27,079 $ 21,472 $ 29,049 Actual return 1,598 590 1,341 (461 ) (605 ) 2,231 Employer contributions 120 695 — 607 — 422 Benefits paid (709 ) (1,499 ) (718 ) (1,266 ) (660 ) (942 ) Other (1) (1,673 ) 1,162 (1,675 ) 86 (1,561 ) (3,681 ) Ending fair value $ 16,930 $ 26,993 $ 17,594 $ 26,045 $ 18,646 $ 27,079 Underfunded status $ (7,813 ) $ (21,880 ) $ (10,781 ) $ (27,611 ) $ (7,795 ) $ (21,737 ) (1) Includes miscellaneous items such as settlements, foreign exchange rate movements, etc. |
Schedule of Allocation of Plan Assets [Table Text Block] | U.S. Non-U.S. Level 1 Level 1 As of As of Target September 30, 2017 October 1, 2016 Target September 30, 2017 October 1, 2016 Equity securities 51 % 52.8 % 51.1 % 20 % 30.0 % 26.4 % Debt securities 49 % 47.2 % 48.9 % 80 % 67.5 % 72.3 % Cash — % — % — % — % 2.5 % 1.3 % Total 100 % 100 % 100 % 100 % 100 % 100 % |
Schedule of Amounts Recognized in Balance Sheet [Table Text Block] | As of September 30, 2017 As of October 1, 2016 As of October 3, 2015 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Components of net amount recognized on consolidated balance sheets: Current liabilities $ — $ (1,117 ) $ — $ (1,260 ) $ — $ (1,067 ) Non-current liabilities (7,813 ) (20,763 ) (10,781 ) (26,351 ) (7,795 ) (20,670 ) Net liability recognized on consolidated balance sheets $ (7,813 ) $ (21,880 ) $ (10,781 ) $ (27,611 ) $ (7,795 ) $ (21,737 ) |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | As of September 30, 2017 October 1, 2016 As of October 3, 2015 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Accumulated other comprehensive loss $ 4,484 $ 10,076 $ 7,801 $ 16,841 $ 6,550 $ 12,958 |
Schedule of Expected Benefit Payments [Table Text Block] | Pension Benefits (In thousands) 2018 $ 7,787 2019 $ 4,169 2020 $ 3,960 2021 $ 4,276 2022 $ 4,273 Years 2023 through 2027 $ 21,377 |
Projected Benefit Obligation [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Assumptions Used [Table Text Block] | U.S. Pensions Non-U.S. Pensions As of As of September 30, October 1, September 30, October 1, Discount rate 3.05 % 2.71 % 2.78 % 2.32 % Rate of compensation increases — % — % 1.98 % 2.72 % |
Benefit Costs [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Assumptions Used [Table Text Block] | U.S. Pensions Non-U.S. Pensions September 30, October 1, September 30, October 1, Discount rate 2.71 % 3.45 % 2.32 % 2.79 % Expected return on plan assets 4.50 % 4.50 % 1.70 % 1.30 % Rate of compensation increases — % — % 2.72 % 2.58 % |
Note 2 Accounts Receivable (Det
Note 2 Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Oct. 01, 2016 |
Accounts Receivable, Net [Abstract] | ||
Accounts receivable allowances | $ 14,334 | $ 15,081 |
Note 2 Property Plant and Equip
Note 2 Property Plant and Equipment (Details) | 12 Months Ended |
Sep. 30, 2017 | |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Depreciation Methods | straight-line basis over the shorter of the lease term or useful life of the asset |
Minimum | Building | |
Property, Plant and Equipment [Line Items] | |
Useful Life In Years | 20 years |
Minimum | Machinery, Equipment, Furniture and Fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful Life In Years | 3 years |
Maximum | Building | |
Property, Plant and Equipment [Line Items] | |
Useful Life In Years | 40 years |
Maximum | Machinery, Equipment, Furniture and Fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful Life In Years | 15 years |
Note 2 New Accounting Pronounce
Note 2 New Accounting Pronouncement (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2017USD ($) | |
Accounting Standards Update 2016-09 [Member] | |
Accounting Standard Update [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 44 |
Note 3 Inventory (Details)
Note 3 Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Oct. 01, 2016 |
Inventory, Net [Abstract] | ||
Raw materials | $ 834,694 | $ 671,240 |
Work-in-process | 106,914 | 144,355 |
Finished goods | 110,061 | 130,644 |
Total | $ 1,051,669 | $ 946,239 |
Note 3 Property, Plant and Equi
Note 3 Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 2,176,890 | $ 2,113,461 | |
Accumulated Depreciation and Amortization | (1,536,615) | (1,495,937) | |
Property, plant and equipment, net | 640,275 | 617,524 | |
Depreciation Expense | 111,500 | 104,500 | $ 96,100 |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 1,452,648 | 1,401,745 | |
Land and buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 607,701 | 601,468 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 55,688 | 53,999 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 22,989 | 21,834 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 37,864 | $ 34,415 |
Note 3 Intangibles Assets and G
Note 3 Intangibles Assets and Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Oct. 01, 2016 | |
Goodwill [Roll Forward] | ||
Goodwill - beginning of year | $ 59,126 | $ 26,617 |
Additions | 0 | 32,509 |
Goodwill - end of year | 59,126 | 59,126 |
Finite-lived Intangible Assets [Roll Forward] | ||
Intangible assets - beginning of year | 16,498 | 16,588 |
Additions | 0 | 7,330 |
Amortization | 7,280 | 7,420 |
Intangible assets - end of year | $ 9,218 | $ 16,498 |
Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Asset, Useful Life | 1 year | |
Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Asset, Useful Life | 5 years |
Note 3 Other Operating Expense
Note 3 Other Operating Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Other Operating Expense [Abstract] | |||
Restructuring | $ 1,339 | $ 2,701 | $ 13,683 |
Amortization of Intangibles | 3,672 | 3,446 | 2,054 |
Asset impairment | 4,600 | 1,000 | 3,454 |
Gain on sale of long-lived assets | $ 1,451 | $ 0 | $ 10,807 |
Note 3 Other Nonoperating Incom
Note 3 Other Nonoperating Income (Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Components of Other Income (Expense), Net, Nonoperating [Line Items] | |||
Other income, net | $ 7,682 | $ 4,063 | $ 767 |
Foreign exchange gains / (losses) | |||
Components of Other Income (Expense), Net, Nonoperating [Line Items] | |||
Other income, net | 4,709 | (415) | 681 |
Bargain purchase gain, net of tax | |||
Components of Other Income (Expense), Net, Nonoperating [Line Items] | |||
Other income, net | 0 | 1,642 | 0 |
Other, net | |||
Components of Other Income (Expense), Net, Nonoperating [Line Items] | |||
Other income, net | $ 2,973 | $ 2,836 | $ 86 |
Note 4 Foreign Currency Forward
Note 4 Foreign Currency Forward Contract (Details) - Foreign Currency Forward $ in Thousands | 12 Months Ended | |
Sep. 30, 2017USD ($) | Oct. 01, 2016USD ($) | |
Derivatives Designated as Accounting Hedges: | ||
Derivative [Line Items] | ||
Derivative Notional Amount | $ 105,523 | $ 110,242 |
Number of Contracts | 58 | 43 |
Maximum Length of Time Hedged | 12 months | |
Derivatives Not Designated as Accounting Hedges: | ||
Derivative [Line Items] | ||
Derivative Notional Amount | $ 302,944 | $ 313,558 |
Number of Contracts | 46 | 46 |
Maximum Remaining Maturity | 2 months |
Note 4 Financial Instruments No
Note 4 Financial Instruments Note 4 Fair Value (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Apr. 02, 2016 | Sep. 30, 2017 | |
Additional Fair Value Elements [Abstract] | ||
Fair Value of Long-term Debt Instrument | the fair value of the Company's long-term debt, as estimated based primarily on quoted prices (Level 2 input), was approximately 2% higher than its carrying amount. | |
Change in Amount of Contingent Consideration, Liability | $ 7.6 |
Note 5 Concentration of Credit
Note 5 Concentration of Credit Risk (Details) | 12 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Financial Instruments and Concentration of Credit Risk [Abstract] | |||
Number of Customers Representing 10% or More of Net Sales | 2 | 1 | 0 |
Number of Customers Representing 10% Or More of Gross Accounts Receivable | 1 | 1 |
Note 6 Debt Schedule (Details)
Note 6 Debt Schedule (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Oct. 01, 2016 |
Debt Instrument [Line Items] | ||
Non-interest bearing promissory notes | $ 19,863 | $ 22,475 |
Total long-term debt | 394,863 | 437,475 |
Less: Current portion of non-interest bearing promissory notes | 3,416 | 3,416 |
Long-term debt | 391,447 | 434,059 |
Secured Notes due 2019 | ||
Debt Instrument [Line Items] | ||
Secured Debt | 375,000 | 375,000 |
Debt due 2017 | ||
Debt Instrument [Line Items] | ||
Secured Debt | $ 0 | $ 40,000 |
Note 6 Debt Detail (Details)
Note 6 Debt Detail (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Apr. 01, 2017 | Apr. 02, 2016 | Dec. 27, 2014 | Apr. 02, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | Sep. 27, 2014 | Oct. 01, 2011 | |
Loss on extinguishments of debt | $ 0 | $ 0 | $ 3,760 | ||||||
Discounted value of notes issued | $ 30,100 | $ 0 | $ 30,105 | $ 0 | |||||
Debt due 2017 | |||||||||
Extinguishment of Debt, Amount | $ 40,000 | ||||||||
Secured Notes due 2019 | |||||||||
Face value of debt | $ 375,000 | ||||||||
Maturity Date | Jun. 1, 2019 | ||||||||
Interest rate | 4.375% | ||||||||
Frequency of Periodic Payment | semi-annually in arrears | ||||||||
Debt Instrument, Call Feature | All or any portion of the Secured Notes may be redeemed, at any time, at the option of the Company, at a redemption price equal to 100% of the principal amount of the Secured Notes redeemed plus accrued and unpaid interest, plus a make-whole premium. Following a change of control, as defined, the Company would be required to make an offer to repurchase all of the Secured Notes at a purchase price of 101% of the principal amount of the Secured Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the date of repurchase. | ||||||||
Debt due 2019 | |||||||||
Face value of debt | $ 500,000 | ||||||||
Extinguishment of Debt, Amount | $ 100,000 | ||||||||
Loss on extinguishments of debt | 2,900 | ||||||||
Write-off of Unamortized Debt Issuance Cost | 1,400 | ||||||||
Carrying value adjustment derecognized upon debt extinguishment | 3,800 | ||||||||
Manufacturing Facility [Member] | |||||||||
Face value of debt | $ 15,000 | $ 15,000 | |||||||
Effective Date of Acquisition | Feb. 1, 2016 | ||||||||
Discounted value of notes issued | $ 12,300 | ||||||||
Promissory Note Description | four-year non-interest bearing promissory note | ||||||||
Redemption premium | Debt due 2019 | |||||||||
Payment for Debt Extinguishment or Debt Prepayment Cost | $ 5,300 |
Note 6 Line of Credit Facility
Note 6 Line of Credit Facility (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Jun. 27, 2015 | Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Line of Credit Facility [Line Items] | ||||
Loss on extinguishments of debt | $ 0 | $ 0 | $ (3,760) | |
Foreign Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Maximum Borrowing Capacity | $ 74,100 | |||
Facility Expiration Date | Mar. 10, 2019 | |||
Amount Outstanding | $ 0 | |||
Asset-backed Lending Facility [Member] | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Loss on extinguishments of debt | $ (800) | |||
Cash Flow Revolver [Member] | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum Borrowing Capacity | $ 375,000 | |||
Additional Credit Line | $ 125,000 | |||
Facility Expiration Date | May 20, 2020 | |||
Amount Outstanding | $ 85,000 | |||
Letters of Credit Outstanding, Amount | $ 13,100 |
Note 7 Loss Contingency (Detail
Note 7 Loss Contingency (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Oct. 01, 2016 |
Loss Contingencies [Line Items] | ||
Loss Contingency Accrual | $ 36.1 | $ 46 |
Note 7 Commitment (Details)
Note 7 Commitment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Operating Leased Assets [Line Items] | |||
2,018 | $ 23,692 | ||
2,019 | 14,658 | ||
2,020 | 8,946 | ||
2,021 | 7,894 | ||
2,022 | 6,521 | ||
Thereafter | 22,607 | ||
Total minimum lease payments | 84,318 | ||
Operating Leases, Rent Expense, Net | $ 24,200 | $ 24,000 | $ 26,200 |
Note 8 Income (Loss) Before Inc
Note 8 Income (Loss) Before Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 128,493 | $ 138,138 | $ 91,613 |
Foreign | 84,987 | 66,479 | 84,580 |
Income before income taxes | 213,480 | 204,617 | 176,193 |
Federal: | |||
Current | (2,524) | 490 | 1,413 |
Deferred | 37,543 | (4,550) | (226,225) |
State: | |||
Current | 1,648 | (265) | 543 |
Deferred | 4,204 | (5,141) | (513) |
Foreign: | |||
Current | 37,076 | 32,427 | 42,295 |
Deferred | (3,300) | (6,182) | (18,581) |
Total provision for (benefit from) income taxes | $ 74,647 | $ 16,779 | $ (201,068) |
Note 8 Deferred Tax Assets and
Note 8 Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Oct. 01, 2016 |
Deferred tax assets: | ||
U.S. net operating loss carryforwards | $ 338,492 | $ 373,933 |
Foreign net operating loss carryforwards | 186,684 | 199,313 |
Acquisition related intangibles | 13,913 | 28,928 |
Accruals not currently deductible | 55,582 | 59,879 |
Property, plant and equipment | 20,746 | 9,939 |
Tax credit carryforwards | 11,832 | 14,191 |
Reserves not currently deductible | 21,710 | 27,626 |
Stock compensation expense | 21,151 | 20,617 |
Unrealized losses | 4,475 | 4,475 |
Other | 3,949 | 2,730 |
Valuation allowance | (163,267) | (176,422) |
Total deferred tax assets | 515,267 | 565,209 |
Deferred tax liabilities on foreign earnings | (36,027) | (37,122) |
Other deferred tax liabilities | (8,140) | (19,228) |
Recorded as: | ||
Non-current deferred tax assets | 476,554 | 514,314 |
Non-current deferred tax liabilities | (5,454) | (5,455) |
Net deferred tax assets | $ 471,100 | $ 508,859 |
Note 8 Effective Tax Rate (Deta
Note 8 Effective Tax Rate (Details) | 12 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Federal tax at statutory tax rate | 35.00% | 35.00% | 35.00% |
Effect of foreign operations | 1.89% | 5.35% | 3.82% |
Foreign income inclusion | 0.26% | 9.43% | 0.21% |
Permanent items | 2.10% | (0.29%) | 2.05% |
Release of valuation allowance | 0.00% | (47.10%) | (163.92%) |
Benefit of Foreign Restructuring | (4.92%) | 0.00% | 0.00% |
Other | (2.10%) | 4.61% | 4.41% |
State income taxes, net of federal benefit | 2.72% | 1.18% | 4.31% |
Effective tax rate | 34.95% | 8.18% | (114.12%) |
Note 8 Income Tax Detail (Detai
Note 8 Income Tax Detail (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Operating Loss Carryforwards [Line Items] | |||
Valuation Allowance Released | $ 96.2 | $ 288.7 | |
Undistributed Earnings of Foreign Subsidiaries | $ 571.4 | ||
Operating Loss Carryforwards, Expiration Date | Sep. 30, 2033 | ||
Excess Tax Benefit | $ 126.6 | ||
Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 1,000 | ||
State | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards, Valuation Allowance | 17.6 | ||
Operating Loss Carryforwards | 633.8 | ||
Foreign | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | $ 744.9 |
Note 8 Unrecognized Tax Benefit
Note 8 Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Income Tax Uncertainties [Abstract] | |||
Balance, beginning of year | $ 55,773 | $ 51,158 | $ 54,237 |
Increase related to prior year tax position | 1,508 | ||
Decrease related to prior year tax position | (2,413) | (5,044) | |
Increase related to current year tax positions | 9,741 | 7,028 | 5,564 |
Settlements | 0 | 0 | (3,599) |
Balance, end of year | 67,022 | 55,773 | 51,158 |
Unrecognized Tax Benefits, Reserve for Penalties and Interest | 40,200 | 35,900 | |
Unrecognized Tax Benefits, Penalties and Interest accrued during the year | $ 4,300 | $ 3,700 | $ 3,900 |
Note 9 Earnings Per Share (Deta
Note 9 Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Earnings Per Share [Line Items] | |||
Net income | $ 138,833 | $ 187,838 | $ 377,261 |
Potentially dilutive securities | 6 | 480 | 789 |
Weighted average shares used in computing per share amount: | |||
Weighted average common shares outstanding | 74,481 | 75,094 | 81,818 |
Effect of dilutive stock options and restricted stock units | 3,647 | 3,693 | 3,823 |
Denominator for diluted earnings per share | 78,128 | 78,787 | 85,641 |
Net income per share: | |||
Basic | $ 1.86 | $ 2.50 | $ 4.61 |
Diluted | $ 1.78 | $ 2.38 | $ 4.41 |
Employee stock options | |||
Earnings Per Share [Line Items] | |||
Potentially dilutive securities | 0 | 477 | 776 |
Restricted stock units | |||
Earnings Per Share [Line Items] | |||
Potentially dilutive securities | 6 | 3 | 13 |
Note 10 Stockholders' Equity (D
Note 10 Stockholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | Oct. 03, 2009 | |
Stockholders' Equity Note [Abstract] | |||||
Number of Shares Authorized | 23,500,000 | 23,500,000 | 7,500,000 | ||
Common Stock, Capital Shares Reserved for Future Issuance | 10,200,000 | 10,200,000 | |||
Stock options and unvested restricted stock units outstanding | 6,900,000 | 6,900,000 | |||
Number of Shares Available for Future Grant | 3,300,000 | 3,300,000 | |||
Stock Repurchase Program Additional Authorized Amount | $ 200 | ||||
Stock Repurchased During Period, Shares | 4,300,000 | 6,800,000 | |||
Stock Repurchased During Period, Value | $ 159.7 | $ 141.2 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 253.2 | $ 253.2 | |||
Shares Paid for Tax Withholding for Share Based Compensation | 549,000 | 46,000 | 61,000 | ||
Adjustments Related to Tax Withholding for Share-based Compensation | $ 17.3 | $ 1 | $ 1.5 |
Note 10 Accumulated Other Compr
Note 10 Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Oct. 01, 2016 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Foreign currency translation adjustments | $ 90,952 | $ 90,364 |
Unrealized holding losses on derivative financial instruments | (212) | (439) |
Unrecognized net actuarial loss and unrecognized transition cost for benefit plans | (13,946) | (24,544) |
Total | $ 76,794 | $ 65,381 |
Note 11 Acquisition (Details)
Note 11 Acquisition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Apr. 02, 2016 | Apr. 02, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Business Acquisition [Line Items] | |||||
Consideration Transferred | $ 90,317 | ||||
Cash Paid for Business Combination | 60,200 | ||||
Bargain Purchase Gain, Net of Tax | 1,642 | ||||
Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | (7,600) | ||||
Discounted value of notes issued | 30,100 | $ 0 | $ 30,105 | $ 0 | |
Current assets | $ 33,198 | 33,198 | |||
Noncurrent assets, including identifiable intangible assets of $7.3 million and goodwill of $30.8 million | 62,632 | 62,632 | |||
Current liabilities | (3,146) | (3,146) | |||
Noncurrent liabilities | (725) | (725) | |||
Total | $ 91,959 | 91,959 | |||
Cash | 1,300 | ||||
Goodwill | $ 59,126 | $ 59,126 | 26,617 | ||
Minimum | |||||
Business Acquisition [Line Items] | |||||
Intangible Asset, Useful Life | 1 year | ||||
Maximum | |||||
Business Acquisition [Line Items] | |||||
Intangible Asset, Useful Life | 5 years | ||||
Manufacturing Facility [Member] | |||||
Business Acquisition [Line Items] | |||||
Effective Date of Acquisition | Feb. 1, 2016 | ||||
Bargain Purchase Gain, Net of Tax | 1,600 | ||||
Bargain Purchase Gain, Net of Tax Description | The bargain purchase gain resulted from the discount attributable to financing a portion of the purchase price with the acquiree using a non-interest bearing promissory note. | ||||
Discounted value of notes issued | $ 12,300 | ||||
Storage Software Provider [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible Assets, Other than Goodwill | 7,300 | 7,300 | |||
Goodwill Description | Goodwill arising from the acquisition is tax deductible and reflects the Company's expectation that the acquisition will enable the Company to broaden its relationships with certain of its existing key customers, realize synergies associated with leveraging the acquisition to develop other software solutions to become a provider of a full storage systems solution, and leverage the acquiree's knowledgeable and experienced workforce. | ||||
Goodwill | 30,800 | $ 30,800 | |||
Storage Software Provider [Member] | Minimum | |||||
Business Acquisition [Line Items] | |||||
Intangible Asset, Useful Life | 3 years | ||||
Storage Software Provider [Member] | Maximum | |||||
Business Acquisition [Line Items] | |||||
Intangible Asset, Useful Life | 4 years | ||||
Q4 2015 Acquisition | |||||
Business Acquisition [Line Items] | |||||
Cash Paid for Business Combination | 15,400 | ||||
Contingent Consideration, Liability | 11,000 | ||||
Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 23,500 | ||||
Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ (7,600) |
Note 12 Revenue and Gross Profi
Note 12 Revenue and Gross Profit by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | ||
Segment Information [Line Items] | ||||
Gross profit | $ 519,911 | $ 514,282 | $ 483,856 | |
Net sales | 6,868,619 | 6,481,181 | 6,374,541 | |
Depreciation and amortization | $ 118,751 | 111,910 | 100,567 | |
Revenue percentage generated by reportable segment | 80.00% | |||
Number of reportable segments | 1 | |||
Property, Plant and Equipment, Additions | $ 140,634 | 110,560 | 126,481 | |
Operating segments | ||||
Segment Information [Line Items] | ||||
Gross profit | 531,504 | 519,005 | 501,500 | |
Depreciation and amortization | 105,878 | 99,098 | 91,954 | |
Property, Plant and Equipment, Additions | 136,512 | 104,936 | 123,045 | |
Operating segments | IMS | ||||
Segment Information [Line Items] | ||||
Gross profit | 404,350 | 397,309 | 366,436 | |
Net sales | 5,645,499 | 5,297,740 | 5,157,427 | |
Depreciation and amortization | 74,769 | 66,036 | 56,428 | |
Property, Plant and Equipment, Additions | 106,000 | 83,084 | 105,755 | |
Operating segments | CPS | ||||
Segment Information [Line Items] | ||||
Gross profit | 127,154 | 121,696 | 135,064 | |
Net sales | 1,422,264 | 1,372,412 | 1,414,797 | |
Depreciation and amortization | 31,109 | 33,062 | 35,526 | |
Property, Plant and Equipment, Additions | 30,512 | 21,852 | 17,290 | |
Segment reconciling items | ||||
Segment Information [Line Items] | ||||
Gross profit | [1] | (11,593) | (4,723) | (17,644) |
Unallocated corporate items | ||||
Segment Information [Line Items] | ||||
Depreciation and amortization | [2] | 12,873 | 12,812 | 8,613 |
Property, Plant and Equipment, Additions | [2] | 4,122 | 5,624 | 3,436 |
Intersegment eliminations | ||||
Segment Information [Line Items] | ||||
Net sales | $ (199,144) | $ (188,971) | $ (197,683) | |
[1] | For purposes of evaluating segment performance, management excludes certain items from its measures of revenue and gross profit. These items consist of stock-based compensation expense, amortization of intangible assets, charges or credits resulting from distressed customers and acquisition-related items. | |||
[2] | Primarily related to selling, general and administration functions. |
Note 12 Net Sales Information b
Note 12 Net Sales Information by Geographic Segment (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017USD ($) | Oct. 01, 2016USD ($) | Oct. 03, 2015USD ($) | |
Revenue from External Customers [Line Items] | |||
Percentage of Net Sales Represented by Ten Largest Customers | 52.90% | 52.00% | 48.30% |
Number of Customers Representing 10% or More of Net Sales | 2 | 1 | 0 |
Net Sales | $ 6,868,619 | $ 6,481,181 | $ 6,374,541 |
United States | |||
Revenue from External Customers [Line Items] | |||
Net Sales | 1,234,739 | 1,045,998 | 1,029,897 |
Mexico | |||
Revenue from External Customers [Line Items] | |||
Net Sales | 1,935,634 | 1,869,651 | 1,979,085 |
China | |||
Revenue from External Customers [Line Items] | |||
Net Sales | 1,336,118 | 1,421,693 | 1,510,208 |
Malaysia | |||
Revenue from External Customers [Line Items] | |||
Net Sales | 743,359 | 512,288 | 200,314 |
Other international | |||
Revenue from External Customers [Line Items] | |||
Net Sales | $ 1,618,769 | $ 1,631,551 | $ 1,655,037 |
Note 12 Long-lived Assets Infor
Note 12 Long-lived Assets Information by Geographic Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Oct. 01, 2016 |
By Geographic Areas, Long-lived Assets [Line Items] | ||
Property, plant and equipment, net | $ 640,275 | $ 617,524 |
United States | ||
By Geographic Areas, Long-lived Assets [Line Items] | ||
Property, plant and equipment, net | 165,254 | 164,481 |
Mexico | ||
By Geographic Areas, Long-lived Assets [Line Items] | ||
Property, plant and equipment, net | 187,094 | 145,916 |
China | ||
By Geographic Areas, Long-lived Assets [Line Items] | ||
Property, plant and equipment, net | 80,787 | 80,894 |
Other international | ||
By Geographic Areas, Long-lived Assets [Line Items] | ||
Property, plant and equipment, net | $ 207,140 | $ 226,233 |
Note 13 Share-Based Compensatio
Note 13 Share-Based Compensation Arrangements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Share-based Compensation [Line Items] | |||
Share-based Compensation | $ 37,920 | $ 26,907 | $ 20,653 |
Stock options | |||
Share-based Compensation [Line Items] | |||
Share-based Compensation | $ 1,640 | 3,943 | 9,894 |
Options Contractual Term | 10 years | ||
Restricted stock units, including performance-based awards | |||
Share-based Compensation [Line Items] | |||
Share-based Compensation | $ 36,280 | 22,964 | 10,759 |
Cost of sales | |||
Share-based Compensation [Line Items] | |||
Allocated Share-based Compensation Expense | 8,959 | 7,350 | 6,611 |
Selling, general & administrative | |||
Share-based Compensation [Line Items] | |||
Allocated Share-based Compensation Expense | 28,169 | 18,903 | 13,859 |
Research & development | |||
Share-based Compensation [Line Items] | |||
Allocated Share-based Compensation Expense | $ 792 | $ 654 | $ 183 |
Note 13 Fair Value Assumptions
Note 13 Fair Value Assumptions and Methodology (Details) - Stock Option | 12 Months Ended |
Oct. 03, 2015 | |
Share-based Compensation [Line Items] | |
Volatility | 52.90% |
Risk-free interest rate | 1.60% |
Dividend yield | 0.00% |
Expected life of options | 5 years |
Note 13 Stock Options Outstand
Note 13 Stock Options Outstanding Rollforward (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | Sep. 27, 2014 | |
Options, Outstanding [Roll Forward] | ||||
Beginning outstanding | 5,514,000 | 7,033,000 | 8,181,000 | |
Granted | 1,000 | 567,000 | ||
Exercised, cancelled, forfeited, expired | (1,946,000) | (1,520,000) | (1,715,000) | |
Ending outstanding | 3,568,000 | 5,514,000 | 7,033,000 | 8,181,000 |
Exercisable | 3,469,000 | |||
Weighted Average Exercise Price, Options [Abstract] | ||||
Beginning outstanding | $ 12.75 | $ 13.05 | $ 12.90 | |
Granted | 23.77 | 24.48 | ||
Exercised, cancelled, forfeited, expired | 14.44 | 14.13 | 16.13 | |
Ending outstanding | 11.83 | $ 12.75 | $ 13.05 | $ 12.90 |
Exercisable | $ 11.51 | |||
Weighted Average Remaining Contractual Term (Years) [Abstract] | ||||
Outstanding | 3 years 9 months 25 days | 4 years 1 month 7 days | 4 years 11 months 7 days | 5 years 3 months 20 days |
Exercisable | 3 years 8 months 23 days | |||
Aggregate Intrinsic Value of In the Money Options | ||||
Outstanding | $ 90,327 | $ 81,659 | $ 53,938 | $ 93,767 |
Exercisable | $ 88,950 |
Note 13 Fair Value and Intrinsi
Note 13 Fair Value and Intrinsic Value (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Weighted Average Grant Date Fair Value, intrinsic value of options exercised, fair value of shares vested [Abstract] | |||
Weighted Average Grant Date Fair Value of Stock Options | $ 12.46 | ||
Weighted Average Grant Date Fair Value of Restricted Stock Units Granted | $ 34.11 | $ 23.22 | $ 23.42 |
Options Exercises in Period, Intrinsic Value | $ 41.4 | $ 15.9 | $ 16.2 |
RSU Vested in Period, Fair Value | $ 53.2 | $ 10.4 | $ 6.7 |
Note 13 Stock Options Outstandi
Note 13 Stock Options Outstanding (Details) shares in Thousands | 12 Months Ended |
Sep. 30, 2017$ / sharesshares | |
$1.80-$8.81 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding | shares | 1,922 |
Weighted Average Remaining Contractual Life (Years) | 2 years 10 months 24 days |
Weighted Average Exercise Price ($) | $ / shares | $ 7.88 |
Number Exercisable | shares | 1,920 |
Weighted Average Exercise Price ($) | $ / shares | $ 7.88 |
$8.82-$11.57 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding | shares | 455 |
Weighted Average Remaining Contractual Life (Years) | 3 years 6 months 18 days |
Weighted Average Exercise Price ($) | $ / shares | $ 11.08 |
Number Exercisable | shares | 455 |
Weighted Average Exercise Price ($) | $ / shares | $ 11.08 |
$11.58-$15.47 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding | shares | 194 |
Weighted Average Remaining Contractual Life (Years) | 11 months 2 days |
Weighted Average Exercise Price ($) | $ / shares | $ 12.02 |
Number Exercisable | shares | 194 |
Weighted Average Exercise Price ($) | $ / shares | $ 12.02 |
$15.48-$23.76 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding | shares | 555 |
Weighted Average Remaining Contractual Life (Years) | 5 years 6 months 18 days |
Weighted Average Exercise Price ($) | $ / shares | $ 15.87 |
Number Exercisable | shares | 536 |
Weighted Average Exercise Price ($) | $ / shares | $ 15.80 |
$23.77-$24.65 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding | shares | 442 |
Weighted Average Remaining Contractual Life (Years) | 7 years 2 months 13 days |
Weighted Average Exercise Price ($) | $ / shares | $ 24.61 |
Number Exercisable | shares | 364 |
Weighted Average Exercise Price ($) | $ / shares | $ 24.60 |
$1.80-$24.65 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding | shares | 3,568 |
Weighted Average Remaining Contractual Life (Years) | 3 years 9 months 26 days |
Weighted Average Exercise Price ($) | $ / shares | $ 11.83 |
Number Exercisable | shares | 3,469 |
Weighted Average Exercise Price ($) | $ / shares | $ 11.51 |
Note 13 Restricted Stock Rollfo
Note 13 Restricted Stock Rollforward (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | Sep. 27, 2014 | |
Awards, Nonvested, Number of Shares [Roll Forward] | ||||
Beginning outstanding | 3,998 | 2,979 | 2,341 | |
Granted | 1,378 | 1,698 | 966 | |
Vested/Cancelled | (2,017) | (679) | (328) | |
Ending outstanding | 3,359 | 3,998 | 2,979 | 2,341 |
Expected to vest | 2,834 | |||
Weighted Average Grant Date Fair Value Restricted Stock [Abstract] | ||||
Beginning outstanding | $ 19.57 | $ 16.52 | $ 13.29 | |
Granted | 34.11 | 23.22 | 23.42 | |
Vested/Cancelled | 16.20 | 15.33 | 13.79 | |
Ending outstanding | 27.56 | $ 19.57 | $ 16.52 | $ 13.29 |
Expected to vest | $ 26.73 | |||
Weighted Average Remaining Contractual Term [Abstract] | ||||
Outstanding | 1 year 6 months 5 days | 1 year 4 months 5 days | 1 year 6 months 8 days | 2 years 4 days |
Expected to vest | 1 year 5 months 10 days | |||
Restricted Stock Non vested Aggregate Intrinsic Value [Abstract] | ||||
Outstanding | $ 124,800 | $ 110,183 | $ 59,843 | $ 56,064 |
Expected to vest | $ 105,288 |
Note 13 Unrecognized Stock-base
Note 13 Unrecognized Stock-based Compensation Expense (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2017USD ($) | |
Restricted stock units | |
Unrecognized Compensation Cost [Line Items] | |
Unrecognized Compensation Expense | $ 41.9 |
Weighted Average Period of Recognition (Years) | 1 year 6 months |
Performance Shares | Vesting not probable | |
Unrecognized Compensation Cost [Line Items] | |
Unrecognized Compensation Expense | $ 9.4 |
Note 14 Projected Benefit Oblig
Note 14 Projected Benefit Obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | ||
Defined Contribution Plan [Abstract] | ||||
Amount Deferred Under Company Sponsored Deferred Compensation Plans | $ 4,900 | $ 4,200 | ||
Non-U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Ending accumulated benefit obligation | 45,532 | 48,371 | $ 45,129 | |
Change in Benefit Obligation [Roll Forward] | ||||
Beginning projected benefit obligation | 53,656 | 48,816 | 49,053 | |
Service cost | 1,210 | 1,569 | 1,143 | |
Interest cost | 1,088 | 1,341 | 1,498 | |
Actuarial gain (loss) | (5,609) | 3,244 | 4,625 | |
Benefits paid | (1,499) | (1,266) | (942) | |
Other (1) | [1] | 27 | (48) | (6,561) |
Ending projected benefit obligation | $ 48,873 | $ 53,656 | 48,816 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||||
Discount Rate | 2.78% | 2.32% | ||
Rate of Compensation Increase | 1.98% | 2.72% | ||
UNITED STATES | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Ending accumulated benefit obligation | $ 24,743 | $ 28,375 | 26,441 | |
Change in Benefit Obligation [Roll Forward] | ||||
Beginning projected benefit obligation | 28,375 | 26,441 | 27,351 | |
Service cost | 0 | 0 | 0 | |
Interest cost | 737 | 871 | 819 | |
Actuarial gain (loss) | (1,987) | 3,456 | 492 | |
Benefits paid | (709) | (718) | (660) | |
Other (1) | [1] | (1,673) | (1,675) | (1,561) |
Ending projected benefit obligation | $ 24,743 | $ 28,375 | $ 26,441 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||||
Discount Rate | 3.05% | 2.71% | ||
Rate of Compensation Increase | 0.00% | 0.00% | ||
Fair Value, Measurements, Recurring | ||||
Defined Contribution Plan [Abstract] | ||||
Deferred Compensation Plan Assets | $ 26,800 | $ 20,100 | ||
Deferred Compensation Liability | $ 28,500 | $ 21,500 | ||
Deferred Compensation Plan Assets [Member] | ||||
Defined Contribution Plan [Abstract] | ||||
Related Party Transaction, Description of Transaction | Two of the funds in which plan participants can invest are managed by an independent global investment manager that is considered a related party of the Company since it owned more than 10% of the Company's outstanding common stock as of September 30, 2017. Approximately 35% of the plan's assets are in these funds, only one of which holds a position in the Company's stock (represents less than one-quarter of one percent of the fund's holdings). | |||
[1] | Includes miscellaneous items such as settlements, curtailments, foreign exchange rate movements, etc. |
Note 14 Plan Assets (Details)
Note 14 Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | ||
UNITED STATES | ||||
Change in Fair Value of Plan Assets [Roll Forward] | ||||
Beginning fair value | $ 17,594 | $ 18,646 | $ 21,472 | |
Actual return | 1,598 | 1,341 | (605) | |
Employer contributions | 120 | 0 | 0 | |
Benefits paid | (709) | (718) | (660) | |
Other (1) | [1] | (1,673) | (1,675) | (1,561) |
Ending fair value | 16,930 | 17,594 | 18,646 | |
Over (under) Funded Status [Abstract] | ||||
Underfunded status | (7,813) | (10,781) | (7,795) | |
Non-U.S. | ||||
Change in Fair Value of Plan Assets [Roll Forward] | ||||
Beginning fair value | 26,045 | 27,079 | 29,049 | |
Actual return | 590 | (461) | 2,231 | |
Employer contributions | 695 | 607 | 422 | |
Benefits paid | (1,499) | (1,266) | (942) | |
Other (1) | [1] | 1,162 | 86 | (3,681) |
Ending fair value | 26,993 | 26,045 | 27,079 | |
Over (under) Funded Status [Abstract] | ||||
Underfunded status | $ (21,880) | $ (27,611) | $ (21,737) | |
Cash | UNITED STATES | ||||
Weighted Average Asset Allocations by Asset Category [Abstract] | ||||
Target | 0.00% | |||
Actual | 0.00% | 0.00% | ||
Cash | Non-U.S. | ||||
Weighted Average Asset Allocations by Asset Category [Abstract] | ||||
Target | 0.00% | |||
Actual | 2.50% | 1.30% | ||
Level 1 | Equity securities | UNITED STATES | ||||
Weighted Average Asset Allocations by Asset Category [Abstract] | ||||
Target | 51.00% | |||
Actual | 52.80% | 51.10% | ||
Level 1 | Equity securities | Non-U.S. | ||||
Weighted Average Asset Allocations by Asset Category [Abstract] | ||||
Target | 20.00% | |||
Actual | 30.00% | 26.40% | ||
Level 1 | Debt securities | UNITED STATES | ||||
Weighted Average Asset Allocations by Asset Category [Abstract] | ||||
Target | 49.00% | |||
Actual | 47.20% | 48.90% | ||
Level 1 | Debt securities | Non-U.S. | ||||
Weighted Average Asset Allocations by Asset Category [Abstract] | ||||
Target | 80.00% | |||
Actual | 67.50% | 72.30% | ||
[1] | Includes miscellaneous items such as settlements, foreign exchange rate movements, etc. |
Note 14 Net Amount Recognized I
Note 14 Net Amount Recognized In Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 |
Non-U.S. | |||
Components of net amount recognized on consolidated balance sheets: | |||
Current liabilities | $ (1,117) | $ (1,260) | $ (1,067) |
Non-current liabilities | (20,763) | (26,351) | (20,670) |
Net liability recognized on consolidated balance sheets | (21,880) | (27,611) | (21,737) |
Accumulated other comprehensive loss | 10,076 | 16,841 | 12,958 |
UNITED STATES | |||
Components of net amount recognized on consolidated balance sheets: | |||
Current liabilities | 0 | 0 | 0 |
Non-current liabilities | (7,813) | (10,781) | (7,795) |
Net liability recognized on consolidated balance sheets | (7,813) | (10,781) | (7,795) |
Accumulated other comprehensive loss | $ 4,484 | $ 7,801 | $ 6,550 |
Note 14 Net Periodic Pension Co
Note 14 Net Periodic Pension Cost (Details) | 12 Months Ended | |
Sep. 30, 2017 | Oct. 01, 2016 | |
Non-U.S. | ||
Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Discount rate | 2.32% | 2.79% |
Expected return on plan assets | 1.70% | 1.30% |
Rate of compensation increases | 2.72% | 2.58% |
UNITED STATES | ||
Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Discount rate | 2.71% | 3.45% |
Expected return on plan assets | 4.50% | 4.50% |
Rate of compensation increases | 0.00% | 0.00% |
Note 14 Future Benefit Payments
Note 14 Future Benefit Payments (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Estimated Future Benefit Payments [Abstract] | |
2,018 | $ 7,787 |
2,019 | 4,169 |
2,020 | 3,960 |
2,021 | 4,276 |
2,022 | 4,273 |
Years 2023 through 2027 | $ 21,377 |
Schedule II Valuation and Qua76
Schedule II Valuation and Qualifying Accounts (Details) - Allowance for Accounts Receivables - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 15,081 | $ 13,439 | $ 10,278 |
Charged to Operations | (747) | 1,642 | 3,161 |
Charges Utilized | 0 | 0 | 0 |
Balance at End of Period | $ 14,334 | $ 15,081 | $ 13,439 |