DEI Document
DEI Document - shares | 6 Months Ended | |
Mar. 30, 2019 | Apr. 26, 2019 | |
Document and entity information [Abstract] | ||
Entity Registrant Name | Sanmina Corporation | |
Entity Central Index Key | 0000897723 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 30, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --09-28 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 69,004,604 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 30, 2019 | Sep. 29, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 405,494 | $ 419,528 |
Accounts receivable, net of allowances of $13,213 and $12,211 as of March 30, 2019 and September 29, 2018, respectively | 1,312,887 | 1,177,219 |
Contract assets | 401,705 | 0 |
Inventories | 1,006,548 | 1,374,004 |
Prepaid expenses and other current assets | 48,454 | 43,676 |
Total current assets | 3,175,088 | 3,014,427 |
Property, plant and equipment, net | 639,901 | 642,913 |
Deferred tax assets | 312,081 | 344,124 |
Other | 79,617 | 83,669 |
Total assets | 4,206,687 | 4,085,133 |
Current liabilities: | ||
Accounts payable | 1,439,397 | 1,547,399 |
Accrued liabilities | 208,839 | 136,427 |
Accrued payroll and related benefits | 126,932 | 124,748 |
Short-term debt, including current portion of long-term debt | 643,360 | 593,321 |
Total current liabilities | 2,418,528 | 2,401,895 |
Long-term liabilities: | ||
Long-term debt | 0 | 14,346 |
Other | 207,440 | 196,048 |
Total long-term liabilities | 207,440 | 210,394 |
Contingencies (Note 7) | ||
Stockholders' equity | 1,580,719 | 1,472,844 |
Total liabilities and stockholders' equity | $ 4,206,687 | $ 4,085,133 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Mar. 30, 2019 | Sep. 29, 2018 |
Allowance for Doubtful Accounts | $ 13,213 | $ 12,211 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Mar. 30, 2019 | Mar. 31, 2018 | |
Net sales | $ 2,126,639 | $ 1,675,629 | $ 4,314,657 | $ 3,420,429 |
Cost of sales | 1,973,537 | 1,560,931 | 4,012,218 | 3,196,265 |
Gross profit | 153,102 | 114,698 | 302,439 | 224,164 |
Operating expenses: | ||||
Selling, general and administrative | 64,186 | 65,384 | 127,214 | 128,987 |
Research and development | 7,599 | 8,221 | 14,036 | 15,836 |
Restructuring and other | 3,202 | (7,681) | 5,531 | 16,779 |
Total operating expenses | 74,987 | 65,924 | 146,781 | 161,602 |
Operating income | 78,115 | 48,774 | 155,658 | 62,562 |
Interest income | 364 | 287 | 558 | 572 |
Interest expense | (8,472) | (6,826) | (16,743) | (13,040) |
Other income (expense), net | (891) | (483) | (6,885) | 2,747 |
Interest and other, net | (8,999) | (7,022) | (23,070) | (9,721) |
Income before income taxes | 69,116 | 41,752 | 132,588 | 52,841 |
Provision for income taxes | 28,231 | 17,120 | 53,751 | 183,119 |
Net income (loss) | $ 40,885 | $ 24,632 | $ 78,837 | $ (130,278) |
Net income (loss) per share: | ||||
Basic | $ 0.59 | $ 0.35 | $ 1.15 | $ (1.83) |
Diluted | $ 0.57 | $ 0.33 | $ 1.11 | $ (1.83) |
Weighted average shares used in computing per share amounts: | ||||
Basic | 68,821 | 70,441 | 68,556 | 71,096 |
Diluted | 71,446 | 73,582 | 71,162 | 71,096 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Mar. 30, 2019 | Mar. 31, 2018 | |
Net income (loss) | $ 40,885 | $ 24,632 | $ 78,837 | $ (130,278) |
Other comprehensive income (loss), net of tax: | ||||
Change in foreign currency translation adjustments | (235) | 908 | (487) | 554 |
Derivative financial instruments: | ||||
Change in net unrealized amount | (2,478) | 2,860 | (8,975) | 1,453 |
Amount reclassified into net income | (2,645) | (2,867) | (235) | (1,342) |
Defined benefit plans: | ||||
Changes in unrecognized net actuarial losses and unrecognized transition costs | 109 | (433) | 399 | (693) |
Amortization of actuarial losses and transition costs | 237 | 178 | 435 | 499 |
Total other comprehensive income (loss) | (5,012) | 646 | (8,863) | 471 |
Comprehensive income (loss) | $ 35,873 | $ 25,278 | $ 69,974 | $ (129,807) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholder's Equity Statement - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock and Additional Paid in Capital | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Deficit | Number of Common Shares [Member] | |
Balance at Sep. 30, 2017 | $ 6,185,088 | $ (633,740) | $ 76,794 | $ (3,980,458) | |||
Common Stock, Shares, Issued at Sep. 30, 2017 | 101,672 | ||||||
Treasury Stock, Shares at Sep. 30, 2017 | (30,008) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuances under stock plans, shares | 1,028 | ||||||
Issuances under stock plans, Value | 3,439 | ||||||
Stock-based compensation expense | 18,944 | ||||||
Adjustments to Additional Paid in Capital, Other | 0 | ||||||
Repurchases of Treasury Stock, shares | (4,107) | ||||||
Repurchases of Treasury Stock, Value | $ 120,539 | ||||||
Other comprehensive income (loss) | $ 471 | 471 | |||||
Cumulative effect of new accounting pronouncement | [1] | 43,269 | |||||
Net income (loss) | (130,278) | (130,278) | |||||
Common Stock, Shares, Issued at Mar. 31, 2018 | 102,700 | ||||||
Treasury Stock, Shares at Mar. 31, 2018 | (34,115) | ||||||
Balance at Mar. 31, 2018 | 1,462,990 | 6,207,471 | $ (754,279) | 77,265 | (4,067,467) | ||
Balance at Dec. 30, 2017 | 6,196,293 | $ (679,225) | 76,619 | (4,092,099) | |||
Common Stock, Shares, Issued at Dec. 30, 2017 | 102,565 | ||||||
Treasury Stock, Shares at Dec. 30, 2017 | (31,331) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuances under stock plans, shares | 135 | ||||||
Issuances under stock plans, Value | 913 | ||||||
Stock-based compensation expense | 10,265 | ||||||
Adjustments to Additional Paid in Capital, Other | 0 | ||||||
Repurchases of Treasury Stock, shares | (2,784) | ||||||
Repurchases of Treasury Stock, Value | $ 75,054 | ||||||
Other comprehensive income (loss) | 646 | 646 | |||||
Cumulative effect of new accounting pronouncement | 0 | ||||||
Net income (loss) | 24,632 | 24,632 | |||||
Common Stock, Shares, Issued at Mar. 31, 2018 | 102,700 | ||||||
Treasury Stock, Shares at Mar. 31, 2018 | (34,115) | ||||||
Balance at Mar. 31, 2018 | 1,462,990 | 6,207,471 | $ (754,279) | 77,265 | (4,067,467) | ||
Balance at Sep. 29, 2018 | 1,472,844 | 6,222,988 | $ (791,366) | 73,944 | (4,032,722) | ||
Common Stock, Shares, Issued at Sep. 29, 2018 | 103,128 | ||||||
Treasury Stock, Shares at Sep. 29, 2018 | (35,351) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuances under stock plans, shares | 1,668 | ||||||
Issuances under stock plans, Value | 9,339 | ||||||
Stock-based compensation expense | 12,442 | ||||||
Adjustments to Additional Paid in Capital, Other | 138 | ||||||
Repurchases of Treasury Stock, shares | (455) | ||||||
Repurchases of Treasury Stock, Value | $ 12,148 | ||||||
Other comprehensive income (loss) | (8,863) | (8,863) | |||||
Cumulative effect of new accounting pronouncement | [2] | 28,130 | |||||
Net income (loss) | 78,837 | 78,837 | |||||
Common Stock, Shares, Issued at Mar. 30, 2019 | 104,796 | ||||||
Treasury Stock, Shares at Mar. 30, 2019 | (35,806) | ||||||
Balance at Mar. 30, 2019 | 1,580,719 | 6,244,907 | $ (803,514) | 65,081 | (3,925,755) | ||
Balance at Dec. 29, 2018 | 6,232,372 | $ (803,208) | 70,093 | (3,966,640) | |||
Common Stock, Shares, Issued at Dec. 29, 2018 | 104,156 | ||||||
Treasury Stock, Shares at Dec. 29, 2018 | (35,800) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuances under stock plans, shares | 640 | ||||||
Issuances under stock plans, Value | 5,771 | ||||||
Stock-based compensation expense | 6,626 | ||||||
Adjustments to Additional Paid in Capital, Other | 138 | ||||||
Repurchases of Treasury Stock, shares | (6) | ||||||
Repurchases of Treasury Stock, Value | $ 306 | ||||||
Other comprehensive income (loss) | (5,012) | (5,012) | |||||
Cumulative effect of new accounting pronouncement | 0 | ||||||
Net income (loss) | 40,885 | 40,885 | |||||
Common Stock, Shares, Issued at Mar. 30, 2019 | 104,796 | ||||||
Treasury Stock, Shares at Mar. 30, 2019 | (35,806) | ||||||
Balance at Mar. 30, 2019 | $ 1,580,719 | $ 6,244,907 | $ (803,514) | $ 65,081 | $ (3,925,755) | ||
[1] | Due to the adoption of ASU 2016-09 "Improvements to Employee Share-Based Payment Accounting (Topic 718)". | ||||||
[2] | Due to the adoption of ASU 2014-09 "Revenue from Contracts with Customers (Topic 606)" using the modified retrospective approach. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | ||
Net income (loss) | $ 78,837 | $ (130,278) |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ||
Depreciation and amortization | 58,880 | 59,502 |
Stock-based compensation expense | 12,442 | 18,937 |
Deferred income taxes | 23,410 | 165,098 |
Other, net | 587 | (674) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (129,741) | 22,967 |
Contract assets | (26,219) | 0 |
Inventories | 16,559 | (70,171) |
Prepaid expenses and other assets | 436 | (7,487) |
Accounts payable | (85,037) | (34,467) |
Accrued liabilities | 77,148 | 10,696 |
Cash provided by operating activities | 27,302 | 34,123 |
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (72,962) | (71,031) |
Purchases of long-term investments | 0 | (2,019) |
Proceeds from sales of property, plant and equipment | 1,139 | 158 |
Cash used in investing activities | (71,823) | (72,892) |
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES: | ||
Proceeds from revolving credit facility borrowings | 2,242,225 | 2,025,300 |
Repayments of revolving credit facility borrowings | (2,207,225) | (1,869,300) |
Debt issuance costs | (2,003) | (1,701) |
Net proceeds from stock issuances | 9,339 | 3,439 |
Repurchases of common stock | (12,010) | (120,539) |
Cash provided by financing activities | 30,326 | 37,199 |
Effect of exchange rate changes | 161 | 186 |
Decrease in cash and cash equivalents | (14,034) | (1,384) |
Cash and cash equivalents at beginning of period | 419,528 | 406,661 |
Cash and cash equivalents at end of period | 405,494 | 405,277 |
Cash paid during the period for: | ||
Interest, net of capitalized interest | 13,589 | 13,780 |
Income taxes, net of refunds | 13,237 | 15,369 |
Unpaid purchases of property, plant and equipment at the end of period | $ 31,780 | $ 28,139 |
Note 1 Basis of Presentation
Note 1 Basis of Presentation | 6 Months Ended |
Mar. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Sanmina Corporation (the “Company”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been omitted pursuant to those rules or regulations. The interim condensed consolidated financial statements are unaudited, but reflect all adjustments, consisting primarily of normal recurring adjustments, that are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended September 29, 2018 , included in the Company's 2018 Annual Report on Form 10-K. The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. Results of operations for the second quarter of 2019 are not necessarily indicative of the results that may be expected for other interim periods or for the full fiscal year. The Company operates on a 52 or 53 week year ending on the Saturday nearest September 30. Fiscal 2019 and 2018 are each 52-week years. All references to years relate to fiscal years unless otherwise noted. Recent Accounting Pronouncements Adopted 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 non-operating expenses. This ASU was effective for the Company at the beginning of fiscal 2019. The impact of adoption was insignificant. 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. This new standard was effective for the Company at the beginning of fiscal 2019. There was no impact upon adoption of this new standard. 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 was effective for the Company at the beginning of fiscal 2019, including interim periods within that annual period. There was no impact upon adoption of this new standard. 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 was effective for the Company at the beginning of fiscal 2019. There was no impact upon adoption of this new standard. In May 2014, the FASB issued ASU 2014-09 "Revenue from Contracts with Customers (Topic 606)" (commonly referred to as ASC 606) which requires an entity to recognize revenue when (or as) goods are transferred or services are provided to customers in an amount that reflects the consideration the entity expects to be entitled to in exchange for those goods or services. The Company adopted ASC 606 as of the beginning of its first quarter of 2019 using the modified retrospective approach, whereby the cumulative effect of initially applying the guidance was recognized as an adjustment to beginning retained earnings at the date of adoption. This adjustment resulted in an increase to beginning retained earnings of $28 million . The adoption of ASC 606 resulted in a change to the manner in which the Company recognizes revenue for the majority of its revenue streams, including integrated manufacturing solutions, components, repair services and defense and aerospace programs. Prior to the adoption of ASC 606, the Company generally recognized revenue from its integrated manufacturing solutions, the Company’s largest revenue stream, upon shipment or delivery of a product to a customer. Under ASC 606, because the Company has no alternative use for the end products generated by its vertically integrated manufacturing services and has an enforceable right to payment for work-in-progress upon a customer’s cancellation of a contract for convenience, the Company recognizes revenue from the sale of these products on an over time basis as the products are manufactured. Accordingly, the Company will recognize revenue under these contracts earlier than under the previous accounting rules. Additionally, prior to the adoption of ASC 606, revenue from repair services was generally recognized upon completion of the services. Under ASC 606, revenue for these services will be recognized as the services are performed since the Company’s customers simultaneously receive and consume the benefits provided by these services. Lastly, prior to the adoption of ASC 606, revenue from defense and aerospace programs was recognized on a percentage-of-completion basis by applying the units-of-delivery method. Under ASC 606, revenue for the majority of these programs will be recognized on an over time basis using the cost-to-cost method since the Company has no alternative use for the end products manufactured under these programs and has an enforceable right to payment for work-in-progress upon a customer’s cancellation of a contract for convenience. Revenue for certain other programs will be recognized upon shipment or delivery of a product, which is when control of a product transfers to a customer. The timing of recognition of revenue did not change for some of the Company’s revenue streams as a result of the adoption of ASC 606. These revenue streams include logistics services, for which revenue will continue to be recognized as the services are performed, Company proprietary products, for which revenue will continue to be recognized upon shipment or delivery of the product, and design, development and engineering services for which revenue will continue to be recognized as the services are performed. For revenue streams for which revenue is being recognized on an over time basis under ASC 606, work-in-progress and finished goods inventory were reduced to zero upon the adoption of ASC 606 and an associated contract asset was recorded to reflect amounts that would have been recognized as revenue prior to the adoption of ASC 606. This adjustment resulted in recognition of a contract asset of $376 million and a decrease in inventory of $350 million as of the beginning of the first fiscal quarter of 2019. No other balance sheet line items, with the exception of beginning retained earnings as mentioned previously, were materially impacted upon the adoption of ASC 606. Refer to Note 3 for additional information and disclosures related to the adoption of ASC 606. Recent Accounting Pronouncements Not Yet Adopted In June 2018, the FASB issued ASU 2018-07 "Improvements to Non-employee Share-Based Payment Accounting (Topic 718)". The ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from non-employees. The standard aligns measurement and classification guidance for share-based payments to non-employees with the guidance applicable to employees. This ASU is effective for the Company at the beginning of fiscal 2020, including interim periods within that reporting period, although early adoption is permitted. The Company does not expect the impact of adoption to be significant. In February 2018, the FASB issued ASU 2018-02, "Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income", which allows companies to reclassify stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act (H.R. 1) from accumulated other comprehensive income to retained earnings. The guidance also requires certain new disclosures regardless of the election. This ASU is effective for the Company at the beginning of fiscal 2020, although early adoption is permitted. The Company does not expect the impact of adoption to be significant. 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 impacts 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, although early adoption is permitted. The Company is currently evaluating the potential impact of this ASU. 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. In addition, the FASB provided a practical expedient transition method that allows entities to initially apply the requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, as opposed to applying the requirements retrospectively and providing comparative prior period financial statements. The Company has decided to apply the above practical expedient transition method. 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. |
Note 2 Inventories
Note 2 Inventories | 6 Months Ended |
Mar. 30, 2019 | |
Inventory, Net [Abstract] | |
Inventory Disclosure [Text Block] | Inventories Components of inventories were as follows: As of March 30, September 29, (In thousands) Raw materials $ 999,956 $ 1,139,585 Work-in-process 4,067 132,803 Finished goods 2,525 101,616 Total $ 1,006,548 $ 1,374,004 The significant decrease in work-in-process and finished goods was due to the adoption of ASC 606 in the first quarter of 2019, as further discussed in Notes 1 and 3. |
Note 3 Revenue Recognition
Note 3 Revenue Recognition | 6 Months Ended |
Mar. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue Recognition The Company is a leading global provider of integrated manufacturing solutions, components, products and repair, logistics and after-market services. For purposes of determining when to recognize revenue, and in what amount, the Company applies a 5-step model: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the Company satisfies a performance obligation. Each of these steps involves the use of significant judgments, as discussed below. Step 1 - Identify the contract with a customer A contract is defined as an agreement between two parties that creates enforceable rights and obligations. The Company generally enters into a master supply agreement (“MSA”) with its customers that provides the framework under which business will be conducted, and pursuant to which a customer will issue purchase orders or other binding documents to specify the quantity, price and delivery requirements for products or services the customer wishes to purchase. The Company generally considers its contract with a customer to be a firm commitment, consisting of the combination of an MSA and a purchase order or any other similar binding document. Step 2 - Identify the performance obligations in the contract A performance obligation is a promised good or service that is material in the context of the contract and is both capable of being distinct (customer can benefit from the good or service on its own or together with other readily available resources) and distinct within the context of the contract (separately identifiable from other promises). The Company reviews its contracts to identify promised goods or services and then evaluates such items to determine which of those items are performance obligations. The majority of the Company’s contracts have a single performance obligation since the promise to transfer an individual good or service is not separately identifiable from other promises in the contract. The Company’s performance obligations generally have an expected duration of one year or less. Step 3 - Determine the transaction price The Company’s contracts with its customers may include certain forms of variable consideration such as early payment discounts, volume discounts and shared cost savings. The Company includes an estimate of variable consideration when determining the transaction price and the appropriate amount of revenue to be recognized. This estimate is limited to an amount which will not result in a significant reversal of revenue in a future period. Factors considered in the Company’s estimate of variable consideration are the potential amount subject to these contract provisions, historical experience and other relevant facts and circumstances. Step 4 - Allocate the transaction price to the performance obligations in the contract A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. In the event that more than one performance obligation is identified in a contract, the Company is required to allocate a portion of the transaction price to each performance obligation. This allocation would generally be based on the relative standalone price of each performance obligation, which most often would represent the price at which the Company would sell similar goods or services separately. Step 5 - Recognize revenue when (or as) a performance obligation is satisfied The Company is required to assess whether control of a product or services promised under a contract is transferred to the customer at a point-in-time or over time as the product is being manufactured or the services are being provided. If the criteria in ASC 606 for recognizing revenue on an over time basis are not met, revenue must be recognized at the point-in-time determined by the Company at which its customer obtains control of a product or service. The Company has determined that revenue for the majority of its contracts is required to be recognized on an over time basis. This determination is based on the fact that 1) the Company does not have an alternative use for the end products it manufactures for its customers and has an enforceable right to payment, including a reasonable profit, for work-in-progress upon a customer’s cancelation of a contract for convenience or 2) the Company’s customer simultaneously receives and consumes the benefits provided by the Company’s services. For these contracts, revenue is recognized on an over time basis using the cost-to-cost method (ratio of costs incurred to date to total estimated costs at completion) which the Company believes best depicts the transfer of control to the customer. For contracts for which revenue is required to be recognized at a point-in-time, the Company recognizes revenue when it has transferred control of the related goods, which generally occurs upon shipment or delivery of the goods to the customer. Contract Assets A contract asset is recognized when the Company has recognized revenue, but has not issued an invoice to its customer for payment. Contract assets are classified separately on the condensed consolidated balance sheets and transferred to accounts receivable when rights to payment become unconditional. Because of the Company’s short manufacturing cycle times, the transfer from contract assets to accounts receivable generally occurs within the next fiscal quarter. Other Other than the impact upon adoption of ASC 606 at the beginning of the first quarter of 2019 (as discussed in Note 1), the application of ASC 606 during the first half of 2019 did not materially impact any financial statement line item. The Company has elected to apply the following practical expedients or policy elections under ASC 606: • Upon adoption, the Company elected to apply the requirements of ASC 606 only to open contracts as of the adoption date and to not perform an assessment of the impact of contract modifications prior to the period of adoption. • The promised amount of consideration under a contract will not be adjusted for the effects of a significant financing component because, at inception of a contract, the Company expects the period between when a good or service is transferred to a customer and when the customer pays for that good or service will generally be one year or less. • The Company has elected to not disclose information about remaining performance obligations that have original expected durations of one year or less, which is substantially all of the Company’s remaining performance obligations. • Incremental costs of obtaining a contract will not be capitalized if the period over which such costs would be amortized to expense is less than one year. Taxes assessed by governmental authorities that are both imposed on and concurrent with a specific revenue-producing transaction, and are collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control of a product has transferred to a customer are accounted for as fulfillment costs and are included in cost of sales. Disaggregation of revenue In the following table, revenue is disaggregated by segment, market sector and geography. Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, (In thousands) Segments: IMS $ 1,778,076 $ 1,368,036 $ 3,558,960 $ 2,790,079 CPS 348,563 307,593 755,697 630,350 Total $ 2,126,639 $ 1,675,629 $ 4,314,657 $ 3,420,429 End Markets: Communications Networks $ 771,970 $ 642,335 $ 1,551,691 $ 1,321,181 Industrial, Medical, Automotive and Defense 1,150,077 860,691 2,332,561 1,746,386 Cloud Solutions 204,592 172,603 430,405 352,862 Total $ 2,126,639 $ 1,675,629 $ 4,314,657 $ 3,420,429 Geography: United States $ 400,888 $ 321,337 $ 855,659 $ 636,145 Mexico 661,010 494,760 1,323,158 983,994 China 413,304 265,913 846,726 581,005 Malaysia 87,588 150,638 210,493 336,350 Other international 563,849 442,981 1,078,621 882,935 Total $ 2,126,639 $ 1,675,629 $ 4,314,657 $ 3,420,429 Timing of Revenue Recognition: Goods/services transferred at a point in time $ 45,639 $ 1,655,429 $ 133,657 $ 3,378,429 Goods/services transferred over time 2,081,000 20,200 4,181,000 42,000 Total $ 2,126,639 $ 1,675,629 $ 4,314,657 $ 3,420,429 |
Note 4 Financial Instruments
Note 4 Financial Instruments | 6 Months Ended |
Mar. 30, 2019 | |
Financial Instruments [Abstract] | |
Derivatives and Fair Value [Text Block] | Financial Instruments Fair Value Measurements Fair Value of Financial Instruments The fair values of cash equivalents (generally 10% or less 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 March 30, 2019 , the fair value of the Company's long-term debt, as estimated based primarily on quoted prices (Level 2 input), approximate 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 and defined benefit plan assets, which are both measured using Level 1 inputs. Defined benefit plan assets are measured at fair value only in the fourth quarter of each year. Other financial assets and financial liabilities measured at fair value on a recurring basis include foreign exchange contracts, interest rate swaps and contingent consideration, none of which were material as of March 30, 2019 or September 29, 2018 . Offsetting Derivative Assets and Liabilities The Company has entered into master netting arrangements with each of its derivative counterparties that allows net settlement of derivative 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 on the unaudited condensed consolidated balance sheets. The amount that the Company had the right to offset under these netting arrangements was not material as of March 30, 2019 or September 29, 2018 . 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 Foreign Exchange Rate Risk The Company is exposed to certain risks related to its ongoing business operations. The primary risk 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 March 30, September 29, Derivatives Designated as Accounting Hedges: Notional amount (in thousands) $ 108,690 $ 116,992 Number of contracts 49 54 Derivatives Not Designated as Accounting Hedges: Notional amount (in thousands) $ 327,153 $ 356,076 Number of contracts 43 56 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 non-functional currency sales (2) forecasted non-functional currency materials, labor, overhead and other expenses and (3) 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 gain (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. 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 (expense), net, in the unaudited condensed consolidated statements of operations. The amount of gains (losses) associated with these forward contracts was 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. Interest Rate Risk The Company enters into forward interest rate swap agreements with independent counterparties to partially hedge the variability in cash flows due to changes in the benchmark interest rate (LIBOR) associated with anticipated variable rate borrowings. These interest rate swaps have a maturity date of December 1, 2023 and effectively convert the Company's variable interest rate obligations to fixed interest rate obligations. These swaps are accounted for as cash flow hedges under ASC Topic 815, Derivatives and Hedging. As of March 30, 2019 and September 29, 2018 , interest rate swaps with an aggregate notional amount of $350 million and $50 million , respectively, were outstanding. The aggregate effective interest rate of these swaps as of March 30, 2019 was approximately 4.3% . |
Note 5 Debt
Note 5 Debt | 6 Months Ended |
Mar. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt Long-term debt consisted of the following: As of March 30, September 29, (In thousands) Senior secured notes due 2019 $ 375,000 $ 375,000 Non-interest bearing promissory notes 18,360 17,667 Total long-term debt 393,360 392,667 Less: Current portion of non-interest bearing promissory notes 18,360 3,321 Current portion of long-term debt 375,000 375,000 Long-term debt $ — $ 14,346 Short-term debt On November 30, 2018 , the Company entered into a Fourth Amended and Restated Credit Agreement (the "Amended Cash Flow Revolver") that provides for a committed $375 million secured delayed draw term loan. The delayed draw term loan is available to be drawn through June 30, 2019 . Proceeds from the delayed drawn term loan can only be used to repay the Company's senior secured notes due June 2019. On April 5, 2019, the Company entered into an amendment to the Amended Cash Flow Revolver that increased the amount available under the facility from $500 million to $700 million upon satisfaction of certain conditions, including repayment in full of the Company’s senior secured notes due June 2019. The revolving commitments under the Amended Cash Flow Revolver expire on November 30, 2023 . Subject to satisfaction of certain conditions, including obtaining additional commitments from existing and/or new lenders, the Company may increase the revolver commitments under the Amended Cash Flow Revolver by up to an additional $200 million . Loans under the Amended Cash Flow Revolver bear interest, at the Company's option, at either the LIBOR or a base rate, in each case plus a spread determined based on the Company's credit rating. Interest on the loans is payable quarterly in arrears with respect to base rate loans and at the end of an interest period in the case of LIBOR loans. Once borrowed, a portion of the principal amount of the delayed draw term loan is required to be repaid in quarterly installments. The outstanding principal amount of all loans under the Amended Cash Flow Revolver, including, if drawn, the delay draw term loan, together with accrued and unpaid interest, is due on the maturity date. Certain of the Company’s domestic subsidiaries are required to be guarantors in respect of the Amended Cash Flow Revolver. The Company and the subsidiary guarantors’ obligations under the Amended Cash Flow Revolver are secured by property of the Company and such guarantors, including, but not limited to cash, accounts receivables, inventory and the shares of the Company's subsidiaries, subject to limited exceptions. The Amended Cash Flow Revolver requires the Company to comply with a minimum consolidated interest coverage ratio, measured at the end of each fiscal quarter, and at all times a maximum consolidated leverage ratio. The Amended Cash Flow Revolver contains customary affirmative covenants, including covenants regarding the payment of taxes and other obligations, maintenance of insurance, reporting requirements and compliance with applicable laws and regulations. As of March 30, 2019 , there were $250 million of borrowings and $8 million of letters of credit outstanding under the Amended Cash Flow Revolver. As of March 30, 2019 , certain foreign subsidiaries of the Company had a total of $72 million of short-term borrowing facilities, under which no borrowings were outstanding. Debt covenants The Company's Amended 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 March 30, 2019 . |
Note 6 Accounts Receivable Sale
Note 6 Accounts Receivable Sale Program | 6 Months Ended |
Mar. 30, 2019 | |
Transfers and Servicing [Abstract] | |
Transfers and Servicing of Financial Assets [Text Block] | Accounts Receivable Sale Program During 2018, the Company entered into a Receivable Purchase Agreement (the “RPA”) with certain third-party banking institutions for the sale of trade receivables generated from sales to certain customers. A maximum of $555 million of sold receivables can be outstanding at any point in time under this program, subject to limitations under the Company's Amended Cash Flow Revolver. On January 16, 2019, the Company entered into an amendment to its Amended Cash Flow Revolver which increased the percentage of its total accounts receivable that can be sold and outstanding at any time from 30% to 40% . Trade receivables sold pursuant to the RPA are serviced by the Company. In addition to the RPA, the Company has the option to participate in trade receivables sales programs that have been implemented by certain of the Company's customers, as in effect from time to time. The Company does not service trade receivables sold under these other programs. Under each of the programs noted above, the Company sells its entire interest in a trade receivable for 100% of face value, less a discount. During the first half of 2019 and 2018, the Company sold $1,394 million and $337 million , respectively, of accounts receivable under these programs. Upon sale, these receivables are removed from the condensed consolidated balance sheets and cash received is presented as cash provided by operating activities in the condensed consolidated statements of cash flows. Discounts on sold receivables were not material for any period presented. As of March 30, 2019 and September 29, 2018 , $201 million and $189 million , respectively, of accounts receivable sold under the RPA and subject to servicing by the Company remained outstanding and had not yet been collected. The Company's sole risk with respect to receivables it services is with respect to commercial disputes regarding such receivables. Commercial disputes include billing errors, returns and similar matters. To date, the Company has not been required to repurchase any receivable it has sold due to a commercial dispute. Additionally, the Company is required to remit amounts collected as servicer under the RPA on a weekly basis to the financial institution that purchased the receivable. As of March 30, 2019 and September 29, 2018 , $83 million and $23 million , respectively, had been collected but not yet remitted. This amount is classified in accrued liabilities on the condensed consolidated balance sheets. |
Note 7 Commitments and Continge
Note 7 Commitments and Contingencies | 6 Months Ended |
Mar. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 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 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 March 30, 2019 and September 29, 2018 , the Company had reserves of $37 million and $35 million , respectively, for environmental matters, warranty, litigation 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 unaudited condensed 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 March 30, 2019 , 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 March 30, 2019 , the Company believes it has reserved a sufficient amount to satisfy currently 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 March 30, 2019 . 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. In November 2017, the California Supreme Court denied the Company’s petition to review this decision and in December 2017, the Court of Appeal remanded the case back to the Superior Court for further proceedings . A trial date has been set for September 2020. The Company intends to contest the plaintiff’s claims vigorously. 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. In October 2018, an individual who was employed by the Company from November 2015 to March 2016 filed a lawsuit against the Company in the Santa Clara County Superior Court on behalf of himself and all other similarly situated Company employees in California, alleging violations of California labor code provisions governing overtime, meal and rest periods, wages, wage statements and reimbursement of business expenses. The complaint seeks certification of a class of all non-exempt employees employed from four years before filing of the complaint to time of trial, whether employed directly by the Company or through a temporary staffing agency. Although the Company is investigating the allegations and cannot, at the current time, determine the outcome of this matter and has not provided a reserve for this matter as of March 30, 2019 , the Company intends to defend against this matter vigorously. Other Contingencies One of the Company's most significant risks 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 the Company 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. |
Note 8 Restructuring
Note 8 Restructuring | 6 Months Ended |
Mar. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Restructuring In the first quarter of 2018, the Company adopted a consolidated restructuring plan to address the closure and/or relocation of three of its manufacturing facilities. In addition, the Company is still in the process of completing restructuring actions under other plans. The following table is a summary of restructuring costs associated with these plans: Restructuring Expense Three Months Ended Six Months Ended March 30, 2019 March 31, 2018 March 30, 2019 March 31, 2018 Severance costs (approximately 2,900 employees) $ 359 $ 1,191 $ 752 $ 24,492 Other exit costs 768 274 3,872 274 Total 1,127 1,465 4,624 24,766 Severance reimbursement — (10,000 ) — (10,000 ) Total - Q1 FY18 plan 1,127 (8,535 ) 4,624 14,766 Costs incurred for other plans 1,885 (56 ) 527 185 Total - all plans $ 3,012 $ (8,591 ) $ 5,151 $ 14,951 Q1 FY18 Plan Actions under the Q1 FY18 plan began in the first quarter of 2018 and are expected to occur through calendar 2019. Cash payments of severance and other costs began in the second quarter of 2018 and are expected to occur through the end of calendar 2019. In connection with this plan, the Company entered into a contractual agreement with a third party pursuant to which up to $10 million of severance and retention costs incurred by the Company will be reimbursed. The Company recorded this amount as a reduction of restructuring costs in the second quarter of 2018 and, as of March 30, 2019 , $7 million was included in accounts receivable on the condensed consolidated balance sheets. Costs incurred for other exit costs consist primarily of costs to maintain vacant facilities that are owned and contract termination costs. All Plans The Company’s IMS segment incurred a benefit under all restructuring plans of $4 million in the first half of 2019, primarily as a result of recovery from a third party of certain environmental remediation costs. This compares to costs incurred of $10 million for the first half of 2018. The Company’s CPS segment incurred costs under all restructuring plans of $9 million and $5 million for the first half of 2019 and 2018, respectively. As of March 30, 2019 and September 29, 2018 , the Company had accrued liabilities of $16 million and $24 million , respectively, for restructuring costs (exclusive of environmental remediation liabilities). In addition to costs expected to be incurred under the Q1 FY18 plan, the Company expects to incur restructuring costs in future periods primarily for vacant facilities and former sites for which the Company is or may be responsible for environmental remediation. |
Note 9 Income Tax
Note 9 Income Tax | 6 Months Ended |
Mar. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Tax The Company estimates its annual effective income tax rate at the end of each quarterly period. The estimate takes into account the geographic mix of expected pre-tax income (loss), expected total annual pre-tax income (loss), enacted changes in tax laws, implementation of tax planning strategies and possible outcomes of audits and other uncertain tax positions. To the extent there are fluctuations in any of these variables during a period, the provision for income taxes may vary. The U.S. Tax Cuts and Jobs Act (“the Tax Act”) provision for Global Intangible Low-Taxed Income (“GILTI”), imposes taxes on foreign income in excess of a deemed return on tangible assets of foreign corporations and is effective for the Company in fiscal year 2019. This income will be offset by federal net operating losses and, as a result, the Company will not pay cash taxes due to GILTI. The Company has determined that the GILTI provision will be accounted for under U.S. generally accepted accounting principles as a component of income tax expense in the period in which the Company is subject to the rules (the “period cost method”). The Tax Act also imposes an additional minimum tax “base erosion and anti-abuse tax” (“BEAT”) on certain deductible payments made to a foreign subsidiary applicable to tax years beginning in 2018. The BEAT applies to the extent that a tentative BEAT on modified taxable income exceeds the regular tax liability. The Company does not expect there to be a material impact to the Company’s income taxes. The Company's provision for income taxes for the three months ended March 30, 2019 and March 31, 2018 was $28 million ( 41% of income before taxes) and $17 million ( 41% of income before taxes), respectively, and $54 million ( 41% of income before taxes) and $183 million ( 347% of income before taxes) for the six months ended March 30, 2019 and March 31, 2018 , respectively. Income tax expense for the first half of 2019 included the imposition of GILTI (as discussed above). Income tax expense for the first half of 2018 attributable to the estimated impact of the Tax Act was $162 million . |
Note 10 Stockholders' Equity
Note 10 Stockholders' Equity | 6 Months Ended |
Mar. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Stockholder's Equity Accumulated Other Comprehensive Income Accumulated other comprehensive income, net of tax as applicable, consisted of the following: As of March 30, September 29, (In thousands) Foreign currency translation adjustments $ 87,402 $ 87,889 Unrealized holding losses on derivative financial instruments (9,545 ) (335 ) Unrecognized net actuarial losses and transition costs for benefit plans (12,776 ) (13,610 ) Total $ 65,081 $ 73,944 Unrealized holding losses on derivative financial instruments includes losses (effective portion) from interest rate swap agreements with independent counterparties to partially hedge the variability in cash flows due to changes in the benchmark interest rate (LIBOR) associated with anticipated variable rate borrowings. These swaps are accounted for as cash flow hedges under ASC Topic 815, Derivatives and Hedging. As of March 30, 2019 and September 29, 2018 , interest rate swaps with an aggregate notional amount of $350 million and $50 million , respectively, were outstanding. The aggregate effective interest rate of these swaps as of March 30, 2019 was approximately 4.3% . Stock Repurchase Program During the six months ended March 30, 2019 and March 31, 2018 , the Company repurchased 0.3 million and 3.8 million shares of its common stock for $7 million and $109 million , respectively. The Company did not repurchase any shares under its repurchase programs during the three months ended March 30, 2019 . As of March 30, 2019 , subject to limitations on stock repurchases contained in certain of the Company's credit and debt agreements, an aggregate of $101 million remains available under repurchase programs authorized by the Board of Directors. In addition to the repurchases discussed above, the Company repurchased 182,000 and 304,000 shares of its common stock during the six months ended March 30, 2019 and March 31, 2018 , respectively, in settlement of employee tax withholding obligations due upon the vesting of restricted stock units. The Company paid $5 million and $11 million , respectively, in connection with these repurchases. |
Note 11 Business Segment, Geogr
Note 11 Business Segment, Geographic and Customer Information | 6 Months Ended |
Mar. 30, 2019 | |
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: Integrated Manufacturing Solutions (IMS) and Components, Products and Services (CPS). The Company's CPS business consists of multiple operating segments which 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 "CPS" and the Company has only one reportable segment - IMS. The following table presents revenue and a measure of segment gross profit used by management to allocate resources and assess performance of operating segments: Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, (In thousands) Gross sales: IMS $ 1,793,119 $ 1,374,581 $ 3,586,301 $ 2,803,428 CPS 394,985 345,732 850,788 702,461 Intersegment revenue (61,465 ) (44,684 ) (122,432 ) (85,460 ) Net sales $ 2,126,639 $ 1,675,629 $ 4,314,657 $ 3,420,429 Gross profit: IMS $ 114,837 $ 85,916 $ 225,493 $ 168,533 CPS 40,292 31,372 80,811 61,238 Total 155,129 117,288 306,304 229,771 Unallocated items (1) (2,027 ) (2,590 ) (3,865 ) (5,607 ) Total $ 153,102 $ 114,698 $ 302,439 $ 224,164 (1) For purposes of evaluating segment performance, management excludes certain items from its measure of gross profit. These items consist of stock-based compensation expense, amortization of intangible assets and charges or credits resulting from distressed customers. Net sales by geographic segment, determined based on the country in which a product is manufactured, were as follows: Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, (In thousands) Net sales United States $ 400,888 $ 321,337 $ 855,659 $ 636,145 Mexico 661,010 494,760 1,323,158 983,994 China 413,304 265,913 846,726 581,005 Malaysia 87,588 150,638 210,493 336,350 Other international 563,849 442,981 1,078,621 882,935 Total $ 2,126,639 $ 1,675,629 $ 4,314,657 $ 3,420,429 Percentage of net sales represented by ten largest customers 55 % 53 % 54 % 54 % Number of customers representing 10% or more of net sales 1 1 1 2 |
Note 12 Earnings Per Share
Note 12 Earnings Per Share | 6 Months Ended |
Mar. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Earnings Per Share Basic and diluted 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: Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, (In thousands, except per share data) Numerator: Net income (loss) $ 40,885 $ 24,632 $ 78,837 $ (130,278 ) Denominator: Weighted average common shares outstanding 68,821 70,441 68,556 71,096 Effect of dilutive stock options and restricted stock units 2,625 3,141 2,606 — Denominator for diluted earnings per share 71,446 73,582 71,162 71,096 Net income (loss) per share: Basic $ 0.59 $ 0.35 $ 1.15 $ (1.83 ) Diluted $ 0.57 $ 0.33 $ 1.11 $ (1.83 ) Had the Company reported net income in the first half of 2018 instead of a net loss, 4 million of potentially dilutive securities would have been included in the calculation of diluted earnings per share. |
Note 13 Stock-Based Compensatio
Note 13 Stock-Based Compensation | 6 Months Ended |
Mar. 30, 2019 | |
Share-based Compensation [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Stock-Based Compensation Stock-based compensation expense was attributable to: Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, (In thousands) Stock options $ 6 $ 2,566 $ 99 $ 3,743 Restricted stock units, including performance based awards 6,620 7,729 12,343 15,194 Total $ 6,626 $ 10,295 $ 12,442 $ 18,937 Stock-based compensation expense was recognized as follows: Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, (In thousands) Cost of sales $ 2,582 $ 1,851 $ 4,317 $ 4,299 Selling, general and administrative 3,939 8,388 7,929 14,552 Research and development 105 56 196 86 Total $ 6,626 $ 10,295 $ 12,442 $ 18,937 The Company's 2009 Stock Plan ("2009 Plan") expired as to future grants on January 26, 2019 . Although the 2009 Plan was terminated, it will continue to govern all awards granted under it prior to its termination date. On March 11, 2019 , the Company's stockholders approved the Company's 2019 Equity Incentive Plan ("2019 Plan") and the reservation of 4.0 million shares of common stock for issuance thereunder, plus any shares subject to stock options or similar awards granted under the 2009 Plan that expire or otherwise terminate without having been exercised in full and shares issued pursuant to awards granted that are forfeited to or repurchased by the Company. As of March 30, 2019 , an aggregate of 10.3 million shares were authorized for future issuance under the Company's stock plans, of which 5.8 million of such shares were issuable upon exercise of outstanding options and delivery of shares upon vesting of restricted stock units and 4.5 million shares of common stock were available for future grant. Restricted Stock Units Activity with respect to the Company's restricted stock units was as follows: Number of Shares Weighted- Average Grant Date Fair Value ($) Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value ($) (In thousands) (In thousands) Outstanding as of September 29, 2018 3,303 30.33 1.21 97,913 Granted 1,677 24.58 Vested/Forfeited/Cancelled (1,697 ) 30.03 Outstanding as of March 30, 2019 3,283 27.55 1.62 100,282 Expected to vest as of March 30, 2019 2,598 27.70 1.42 79,376 As of March 30, 2019 , unrecognized compensation expense of $45 million is expected to be recognized over a weighted average period of 1.5 years . Additionally, as of March 30, 2019 , unrecognized compensation expense related to performance-based restricted stock units for which achievement of the performance criteria is not currently considered probable was $11 million . |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Mar. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting [Text Block] | The accompanying unaudited condensed consolidated financial statements of Sanmina Corporation (the “Company”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been omitted pursuant to those rules or regulations. The interim condensed consolidated financial statements are unaudited, but reflect all adjustments, consisting primarily of normal recurring adjustments, that are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended September 29, 2018 , included in the Company's 2018 Annual Report on Form 10-K. |
Use of Estimates, Policy [Policy Text Block] | The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. Results of operations for the second quarter of 2019 are not necessarily indicative of the results that may be expected for other interim periods or for the full fiscal year. |
Fiscal Period, Policy [Policy Text Block] | The Company operates on a 52 or 53 week year ending on the Saturday nearest September 30. Fiscal 2019 and 2018 are each 52-week years. All references to years relate to fiscal years unless otherwise noted. |
New Accounting Pronouncements, Policy [Text Block] | Recent Accounting Pronouncements Adopted 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 non-operating expenses. This ASU was effective for the Company at the beginning of fiscal 2019. The impact of adoption was insignificant. 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. This new standard was effective for the Company at the beginning of fiscal 2019. There was no impact upon adoption of this new standard. 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 was effective for the Company at the beginning of fiscal 2019, including interim periods within that annual period. There was no impact upon adoption of this new standard. 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 was effective for the Company at the beginning of fiscal 2019. There was no impact upon adoption of this new standard. In May 2014, the FASB issued ASU 2014-09 "Revenue from Contracts with Customers (Topic 606)" (commonly referred to as ASC 606) which requires an entity to recognize revenue when (or as) goods are transferred or services are provided to customers in an amount that reflects the consideration the entity expects to be entitled to in exchange for those goods or services. The Company adopted ASC 606 as of the beginning of its first quarter of 2019 using the modified retrospective approach, whereby the cumulative effect of initially applying the guidance was recognized as an adjustment to beginning retained earnings at the date of adoption. This adjustment resulted in an increase to beginning retained earnings of $28 million . The adoption of ASC 606 resulted in a change to the manner in which the Company recognizes revenue for the majority of its revenue streams, including integrated manufacturing solutions, components, repair services and defense and aerospace programs. Prior to the adoption of ASC 606, the Company generally recognized revenue from its integrated manufacturing solutions, the Company’s largest revenue stream, upon shipment or delivery of a product to a customer. Under ASC 606, because the Company has no alternative use for the end products generated by its vertically integrated manufacturing services and has an enforceable right to payment for work-in-progress upon a customer’s cancellation of a contract for convenience, the Company recognizes revenue from the sale of these products on an over time basis as the products are manufactured. Accordingly, the Company will recognize revenue under these contracts earlier than under the previous accounting rules. Additionally, prior to the adoption of ASC 606, revenue from repair services was generally recognized upon completion of the services. Under ASC 606, revenue for these services will be recognized as the services are performed since the Company’s customers simultaneously receive and consume the benefits provided by these services. Lastly, prior to the adoption of ASC 606, revenue from defense and aerospace programs was recognized on a percentage-of-completion basis by applying the units-of-delivery method. Under ASC 606, revenue for the majority of these programs will be recognized on an over time basis using the cost-to-cost method since the Company has no alternative use for the end products manufactured under these programs and has an enforceable right to payment for work-in-progress upon a customer’s cancellation of a contract for convenience. Revenue for certain other programs will be recognized upon shipment or delivery of a product, which is when control of a product transfers to a customer. The timing of recognition of revenue did not change for some of the Company’s revenue streams as a result of the adoption of ASC 606. These revenue streams include logistics services, for which revenue will continue to be recognized as the services are performed, Company proprietary products, for which revenue will continue to be recognized upon shipment or delivery of the product, and design, development and engineering services for which revenue will continue to be recognized as the services are performed. For revenue streams for which revenue is being recognized on an over time basis under ASC 606, work-in-progress and finished goods inventory were reduced to zero upon the adoption of ASC 606 and an associated contract asset was recorded to reflect amounts that would have been recognized as revenue prior to the adoption of ASC 606. This adjustment resulted in recognition of a contract asset of $376 million and a decrease in inventory of $350 million as of the beginning of the first fiscal quarter of 2019. No other balance sheet line items, with the exception of beginning retained earnings as mentioned previously, were materially impacted upon the adoption of ASC 606. Refer to Note 3 for additional information and disclosures related to the adoption of ASC 606. Recent Accounting Pronouncements Not Yet Adopted In June 2018, the FASB issued ASU 2018-07 "Improvements to Non-employee Share-Based Payment Accounting (Topic 718)". The ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from non-employees. The standard aligns measurement and classification guidance for share-based payments to non-employees with the guidance applicable to employees. This ASU is effective for the Company at the beginning of fiscal 2020, including interim periods within that reporting period, although early adoption is permitted. The Company does not expect the impact of adoption to be significant. In February 2018, the FASB issued ASU 2018-02, "Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income", which allows companies to reclassify stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act (H.R. 1) from accumulated other comprehensive income to retained earnings. The guidance also requires certain new disclosures regardless of the election. This ASU is effective for the Company at the beginning of fiscal 2020, although early adoption is permitted. The Company does not expect the impact of adoption to be significant. 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 impacts 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, although early adoption is permitted. The Company is currently evaluating the potential impact of this ASU. 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. In addition, the FASB provided a practical expedient transition method that allows entities to initially apply the requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, as opposed to applying the requirements retrospectively and providing comparative prior period financial statements. The Company has decided to apply the above practical expedient transition method. 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. |
Note 2 Inventories (Tables)
Note 2 Inventories (Tables) | 6 Months Ended |
Mar. 30, 2019 | |
Inventory, Net [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | As of March 30, September 29, (In thousands) Raw materials $ 999,956 $ 1,139,585 Work-in-process 4,067 132,803 Finished goods 2,525 101,616 Total $ 1,006,548 $ 1,374,004 |
Note 3 Revenue Recognition (Tab
Note 3 Revenue Recognition (Tables) | 6 Months Ended |
Mar. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, (In thousands) Segments: IMS $ 1,778,076 $ 1,368,036 $ 3,558,960 $ 2,790,079 CPS 348,563 307,593 755,697 630,350 Total $ 2,126,639 $ 1,675,629 $ 4,314,657 $ 3,420,429 End Markets: Communications Networks $ 771,970 $ 642,335 $ 1,551,691 $ 1,321,181 Industrial, Medical, Automotive and Defense 1,150,077 860,691 2,332,561 1,746,386 Cloud Solutions 204,592 172,603 430,405 352,862 Total $ 2,126,639 $ 1,675,629 $ 4,314,657 $ 3,420,429 Geography: United States $ 400,888 $ 321,337 $ 855,659 $ 636,145 Mexico 661,010 494,760 1,323,158 983,994 China 413,304 265,913 846,726 581,005 Malaysia 87,588 150,638 210,493 336,350 Other international 563,849 442,981 1,078,621 882,935 Total $ 2,126,639 $ 1,675,629 $ 4,314,657 $ 3,420,429 Timing of Revenue Recognition: Goods/services transferred at a point in time $ 45,639 $ 1,655,429 $ 133,657 $ 3,378,429 Goods/services transferred over time 2,081,000 20,200 4,181,000 42,000 Total $ 2,126,639 $ 1,675,629 $ 4,314,657 $ 3,420,429 |
Note 4 Derivative Financial Ins
Note 4 Derivative Financial Instruments (Tables) | 6 Months Ended |
Mar. 30, 2019 | |
Financial Instruments [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | As of March 30, September 29, Derivatives Designated as Accounting Hedges: Notional amount (in thousands) $ 108,690 $ 116,992 Number of contracts 49 54 Derivatives Not Designated as Accounting Hedges: Notional amount (in thousands) $ 327,153 $ 356,076 Number of contracts 43 56 |
Note 5 Debt (Tables)
Note 5 Debt (Tables) | 6 Months Ended |
Mar. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | As of March 30, September 29, (In thousands) Senior secured notes due 2019 $ 375,000 $ 375,000 Non-interest bearing promissory notes 18,360 17,667 Total long-term debt 393,360 392,667 Less: Current portion of non-interest bearing promissory notes 18,360 3,321 Current portion of long-term debt 375,000 375,000 Long-term debt $ — $ 14,346 |
Note 8 Restructuring and Relate
Note 8 Restructuring and Related Activities (Tables) | 6 Months Ended |
Mar. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs [Table Text Block] | Restructuring Expense Three Months Ended Six Months Ended March 30, 2019 March 31, 2018 March 30, 2019 March 31, 2018 Severance costs (approximately 2,900 employees) $ 359 $ 1,191 $ 752 $ 24,492 Other exit costs 768 274 3,872 274 Total 1,127 1,465 4,624 24,766 Severance reimbursement — (10,000 ) — (10,000 ) Total - Q1 FY18 plan 1,127 (8,535 ) 4,624 14,766 Costs incurred for other plans 1,885 (56 ) 527 185 Total - all plans $ 3,012 $ (8,591 ) $ 5,151 $ 14,951 |
Note 10 Stockholders' Equity (T
Note 10 Stockholders' Equity (Tables) | 6 Months Ended |
Mar. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | As of March 30, September 29, (In thousands) Foreign currency translation adjustments $ 87,402 $ 87,889 Unrealized holding losses on derivative financial instruments (9,545 ) (335 ) Unrecognized net actuarial losses and transition costs for benefit plans (12,776 ) (13,610 ) Total $ 65,081 $ 73,944 Unrealized holding losses on derivative financial instruments includes losses (effective portion) from interest rate swap agreements with independent counterparties to partially hedge the variability in cash flows due to changes in the benchmark interest rate (LIBOR) associated with anticipated variable rate borrowings. These swaps are accounted for as cash flow hedges under ASC Topic 815, Derivatives and Hedging. As of March 30, 2019 and September 29, 2018 , interest rate swaps with an aggregate notional amount of $350 million and $50 million , respectively, were outstanding. |
Note 11 Business Segment, Geo_2
Note 11 Business Segment, Geographic and Customer Information (Tables) | 6 Months Ended |
Mar. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, (In thousands) Gross sales: IMS $ 1,793,119 $ 1,374,581 $ 3,586,301 $ 2,803,428 CPS 394,985 345,732 850,788 702,461 Intersegment revenue (61,465 ) (44,684 ) (122,432 ) (85,460 ) Net sales $ 2,126,639 $ 1,675,629 $ 4,314,657 $ 3,420,429 Gross profit: IMS $ 114,837 $ 85,916 $ 225,493 $ 168,533 CPS 40,292 31,372 80,811 61,238 Total 155,129 117,288 306,304 229,771 Unallocated items (1) (2,027 ) (2,590 ) (3,865 ) (5,607 ) Total $ 153,102 $ 114,698 $ 302,439 $ 224,164 (1) For purposes of evaluating segment performance, management excludes certain items from its measure of gross profit. These items consist of stock-based compensation expense, amortization of intangible assets and charges or credits resulting from distressed customers. |
Schedule of Revenue from External Customers by Geographic Area [Table Text Block] | Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, (In thousands) Net sales United States $ 400,888 $ 321,337 $ 855,659 $ 636,145 Mexico 661,010 494,760 1,323,158 983,994 China 413,304 265,913 846,726 581,005 Malaysia 87,588 150,638 210,493 336,350 Other international 563,849 442,981 1,078,621 882,935 Total $ 2,126,639 $ 1,675,629 $ 4,314,657 $ 3,420,429 Percentage of net sales represented by ten largest customers 55 % 53 % 54 % 54 % Number of customers representing 10% or more of net sales 1 1 1 2 |
Note 12 Earnings Per Share (Tab
Note 12 Earnings Per Share (Tables) | 6 Months Ended |
Mar. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, (In thousands, except per share data) Numerator: Net income (loss) $ 40,885 $ 24,632 $ 78,837 $ (130,278 ) Denominator: Weighted average common shares outstanding 68,821 70,441 68,556 71,096 Effect of dilutive stock options and restricted stock units 2,625 3,141 2,606 — Denominator for diluted earnings per share 71,446 73,582 71,162 71,096 Net income (loss) per share: Basic $ 0.59 $ 0.35 $ 1.15 $ (1.83 ) Diluted $ 0.57 $ 0.33 $ 1.11 $ (1.83 ) |
Note 13 Stock-Based Compensat_2
Note 13 Stock-Based Compensation (Tables) | 6 Months Ended |
Mar. 30, 2019 | |
Share-based Compensation [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, (In thousands) Stock options $ 6 $ 2,566 $ 99 $ 3,743 Restricted stock units, including performance based awards 6,620 7,729 12,343 15,194 Total $ 6,626 $ 10,295 $ 12,442 $ 18,937 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, (In thousands) Cost of sales $ 2,582 $ 1,851 $ 4,317 $ 4,299 Selling, general and administrative 3,939 8,388 7,929 14,552 Research and development 105 56 196 86 Total $ 6,626 $ 10,295 $ 12,442 $ 18,937 |
Schedule of Restricted Stock Units Award Activity [Table Text Block] | Number of Shares Weighted- Average Grant Date Fair Value ($) Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value ($) (In thousands) (In thousands) Outstanding as of September 29, 2018 3,303 30.33 1.21 97,913 Granted 1,677 24.58 Vested/Forfeited/Cancelled (1,697 ) 30.03 Outstanding as of March 30, 2019 3,283 27.55 1.62 100,282 Expected to vest as of March 30, 2019 2,598 27.70 1.42 79,376 |
Note 1 Revenue Beginning Balanc
Note 1 Revenue Beginning Balance Adjustments (Details) - USD ($) $ in Thousands | Mar. 30, 2019 | Sep. 30, 2018 | Sep. 29, 2018 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract assets | $ 401,705 | $ 0 | |
Inventories | $ 1,006,548 | $ 1,374,004 | |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract assets | $ 376,000 | ||
Inventories | 350,000 | ||
Accounting Standards Update 2014-09 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Cumulative Effect of Change on Equity or Net Assets | $ 28,000 |
Note 2 Inventories (Details)
Note 2 Inventories (Details) - USD ($) $ in Thousands | Mar. 30, 2019 | Sep. 29, 2018 |
Inventory, Net [Abstract] | ||
Raw materials | $ 999,956 | $ 1,139,585 |
Work-in-process | 4,067 | 132,803 |
Finished goods | 2,525 | 101,616 |
Total | $ 1,006,548 | $ 1,374,004 |
Note 3 Disagregation of Revenue
Note 3 Disagregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Mar. 30, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 2,126,639 | $ 1,675,629 | $ 4,314,657 | $ 3,420,429 |
Goods/services transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 45,639 | 1,655,429 | 133,657 | 3,378,429 |
Goods/services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,081,000 | 20,200 | 4,181,000 | 42,000 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 400,888 | 321,337 | 855,659 | 636,145 |
Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 661,010 | 494,760 | 1,323,158 | 983,994 |
China | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 413,304 | 265,913 | 846,726 | 581,005 |
Malaysia | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 87,588 | 150,638 | 210,493 | 336,350 |
Other International | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 563,849 | 442,981 | 1,078,621 | 882,935 |
Communications Networks | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 771,970 | 642,335 | 1,551,691 | 1,321,181 |
Industrial, Medical, Automotive and Defense | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,150,077 | 860,691 | 2,332,561 | 1,746,386 |
Cloud Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 204,592 | 172,603 | 430,405 | 352,862 |
IMS Third Party Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,778,076 | 1,368,036 | 3,558,960 | 2,790,079 |
CPS Third Party Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 348,563 | $ 307,593 | $ 755,697 | $ 630,350 |
Note 4 Fair Value (Details)
Note 4 Fair Value (Details) | 6 Months Ended |
Mar. 30, 2019 | |
Additional Fair Value Elements [Abstract] | |
Cash Equivalents | 10.00% |
Long-term Debt Instrument Fair Value | 0.00% |
Note 4 Derivatives (Details)
Note 4 Derivatives (Details) $ in Thousands | 6 Months Ended | |
Mar. 30, 2019USD ($) | Sep. 29, 2018USD ($) | |
Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Derivative Notional Amount | $ 350,000 | $ 50,000 |
Maturity Date | Dec. 1, 2023 | |
Effective Interest Rate | 4.30% | |
Derivatives Designated as Accounting Hedges: | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative Notional Amount | $ 108,690 | $ 116,992 |
Number of contracts | 49 | 54 |
Maximum Length of Time Hedged | 12 months | |
Derivatives Not Designated as Accounting Hedges: | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative Notional Amount | $ 327,153 | $ 356,076 |
Number of contracts | 43 | 56 |
Maximum Remaining Maturity | 2 months |
Note 5 Debt Schedule (Details)
Note 5 Debt Schedule (Details) - USD ($) $ in Thousands | Mar. 30, 2019 | Sep. 29, 2018 |
Debt Instrument [Line Items] | ||
Non-interest bearing promissory notes | $ 18,360 | $ 17,667 |
Total long-term debt | 393,360 | 392,667 |
Less: Current portion of non-interest bearing promissory notes | 18,360 | 3,321 |
Long-term debt | 0 | 14,346 |
Secured Notes Due 2019 | ||
Debt Instrument [Line Items] | ||
Senior secured notes due 2019 | 375,000 | 375,000 |
Current portion of long-term debt | $ 375,000 | $ 375,000 |
Note 5 Line of Credit Facility
Note 5 Line of Credit Facility (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Mar. 30, 2019 | Apr. 05, 2019 | Nov. 30, 2018 | |
Amended Cash Flow Revolver [Member] | |||
Line of Credit Facility [Line Items] | |||
Maximum Borrowing Capacity | $ 500 | ||
Long-term Line of Credit | 250 | ||
Letters of Credit Outstanding, Amount | 8 | ||
Additional Credit Line | $ 200 | ||
Expiration Date | Nov. 30, 2023 | ||
Foreign Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum Borrowing Capacity | $ 72 | ||
Long-term Line of Credit | $ 0 | ||
Amendment 1 to Amended Cash Flow Revolver [Member] | Subsequent Event [Member] | |||
Line of Credit Facility [Line Items] | |||
Maximum Borrowing Capacity | $ 700 | ||
Delayed Draw Term Loan [Member] | Amended Cash Flow Revolver [Member] | |||
Line of Credit Facility [Line Items] | |||
Delayed Draw Term Loan | $ 375 | ||
Expiration Date | Jun. 30, 2019 |
Note 6 Accounts Receivable Sa_2
Note 6 Accounts Receivable Sale Program (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Mar. 30, 2019 | Mar. 31, 2018 | Jan. 16, 2019 | Sep. 29, 2018 | |
Transfer of Financial Assets Accounted for as Sales [Line Items] | ||||
Face Value of Receivable Sold, Percentage | 100.00% | |||
Accounts Receivable Sold During The Period | $ 1,394 | $ 337 | ||
RPA [Member] | ||||
Transfer of Financial Assets Accounted for as Sales [Line Items] | ||||
Maximum Accounts Receivable Sale Capacity | 555 | |||
Accounts Receivable Sold and Outstanding | 201 | $ 189 | ||
Amount Collected But Not Remitted to Financial Institutions | $ 83 | $ 23 | ||
Percentage Sold and Outstanding At Any Time | 30.00% | |||
RPA [Member] | Amended Cash Flow Revolver [Member] | ||||
Transfer of Financial Assets Accounted for as Sales [Line Items] | ||||
Percentage Sold and Outstanding At Any Time | 40.00% |
Note 7 Contingencies (Details)
Note 7 Contingencies (Details) - USD ($) $ in Millions | Mar. 30, 2019 | Sep. 29, 2018 |
Contingencies [Abstract] | ||
Loss Contingency Accrual | $ 37 | $ 35 |
Note 8 Restructuring (Details)
Note 8 Restructuring (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 30, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 30, 2019USD ($) | Mar. 31, 2018USD ($) | Sep. 29, 2018USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other costs | $ 3,012 | $ (8,591) | $ 5,151 | $ 14,951 | |
Restructuring Reserve | 16,000 | 16,000 | $ 24,000 | ||
IMS | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other costs | (4,000) | 10,000 | |||
CPS | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other costs | 9,000 | 5,000 | |||
Q1 FY18 Plan [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Expense (Recovery) prior to reimbursement | 1,127 | 1,465 | 4,624 | 24,766 | |
Expected Severance Reimbursement | $ 0 | 10,000 | |||
3rd Party Reimbursement | 0 | 10,000 | |||
Initiation Date | Dec. 30, 2017 | ||||
Completion Date | Dec. 31, 2019 | ||||
Expected Number of Positions Eliminated | 2,900 | ||||
Other Receivables | 7,000 | $ 7,000 | |||
Restructuring and other costs | 1,127 | (8,535) | 4,624 | 14,766 | |
Q1 FY18 Plan [Member] | Employee Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 359 | 1,191 | 752 | 24,492 | |
Q1 FY18 Plan [Member] | Other Restructuring [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 768 | 274 | 3,872 | 274 | |
Other plans [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other costs | $ 1,885 | $ (56) | $ 527 | $ 185 |
Note 9 Income Tax (Details)
Note 9 Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Mar. 30, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure Table [Line Items] | ||||
Provision for income taxes | $ 28,231 | $ 17,120 | $ 53,751 | $ 183,119 |
Effective Income Tax Rate | 41.00% | 41.00% | 41.00% | 347.00% |
US Tax Cuts and Jobs Act (H.R. 1) [Member] | ||||
Income Tax Disclosure Table [Line Items] | ||||
Provision for income taxes | $ 162,000 |
Note 10 Stockholders' Equity (D
Note 10 Stockholders' Equity (Details) - USD ($) $ in Thousands | Mar. 30, 2019 | Sep. 29, 2018 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Foreign currency translation adjustments | $ 87,402 | $ 87,889 |
Unrealized holding losses on derivative financial instruments | (9,545) | (335) |
Unrecognized net actuarial losses and transition costs for benefit plans | (12,776) | (13,610) |
Total | 65,081 | 73,944 |
Interest Rate Swap [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Derivative Notional Amount | $ 350,000 | $ 50,000 |
Effective Interest Rate | 4.30% |
Note 10 Stock Repurchase (Detai
Note 10 Stock Repurchase (Details) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | ||
Shares Repurchased | 300,000 | 3,800,000 |
Share Repurchases | $ 7 | $ 109 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 101 | |
Shares Paid for Tax Withholding for Share Based Compensation | 182,000 | 304,000 |
Amount of Tax Withholding for Share-based Compensation | $ 5 | $ 11 |
Note 11 Revenue and Gross Profi
Note 11 Revenue and Gross Profit by Segment (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 30, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 30, 2019USD ($) | Mar. 31, 2018USD ($) | ||
Segment Reporting Information [Line Items] | |||||
Net sales | $ 2,126,639 | $ 1,675,629 | $ 4,314,657 | $ 3,420,429 | |
Gross profit | 153,102 | 114,698 | $ 302,439 | 224,164 | |
Number of Reportable Segments | 1 | ||||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Gross profit | 155,129 | 117,288 | $ 306,304 | 229,771 | |
Operating Segments | IMS | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 1,793,119 | 1,374,581 | 3,586,301 | 2,803,428 | |
Gross profit | 114,837 | 85,916 | 225,493 | 168,533 | |
Operating Segments | CPS | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 394,985 | 345,732 | 850,788 | 702,461 | |
Gross profit | 40,292 | 31,372 | 80,811 | 61,238 | |
Intersegment revenue | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | (61,465) | (44,684) | (122,432) | (85,460) | |
Unallocated items | |||||
Segment Reporting Information [Line Items] | |||||
Gross profit | [1] | $ (2,027) | $ (2,590) | $ (3,865) | $ (5,607) |
[1] | For purposes of evaluating segment performance, management excludes certain items from its measure of gross profit. These items consist of stock-based compensation expense, amortization of intangible assets and charges or credits resulting from distressed customers. |
Note 11 Segment Reporting by Ge
Note 11 Segment Reporting by Geographic Segment (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 30, 2019USD ($) | Mar. 31, 2018USD ($) | |
Revenue from External Customer [Line Items] | ||||
Net sales | $ 2,126,639 | $ 1,675,629 | $ 4,314,657 | $ 3,420,429 |
Percentage of net sales represented by ten largest customers | 55.00% | 53.00% | 54.00% | 54.00% |
Number of customers representing 10% or more of net sales | 1 | 1 | 1 | 2 |
United States | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | $ 400,888 | $ 321,337 | $ 855,659 | $ 636,145 |
Mexico | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 661,010 | 494,760 | 1,323,158 | 983,994 |
China | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 413,304 | 265,913 | 846,726 | 581,005 |
Malaysia | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 87,588 | 150,638 | 210,493 | 336,350 |
Other International | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | $ 563,849 | $ 442,981 | $ 1,078,621 | $ 882,935 |
Note 12 Earnings Per Share (Det
Note 12 Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Mar. 30, 2019 | Mar. 31, 2018 | |
Weighted average shares used in computing per share amount: | ||||
Net income (loss) | $ 40,885 | $ 24,632 | $ 78,837 | $ (130,278) |
Weighted average common shares outstanding | 68,821 | 70,441 | 68,556 | 71,096 |
Effect of dilutive stock options and restricted stock units | 2,625 | 3,141 | 2,606 | 0 |
Denominator for diluted earnings per share | 71,446 | 73,582 | 71,162 | 71,096 |
Net income (loss) per share: | ||||
Basic | $ 0.59 | $ 0.35 | $ 1.15 | $ (1.83) |
Diluted | $ 0.57 | $ 0.33 | $ 1.11 | $ (1.83) |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4,000 |
Note 13 Share-Based Compensatio
Note 13 Share-Based Compensation Arrangements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Mar. 30, 2019 | Mar. 31, 2018 | |
Allocation of Recognized Period Costs [Line Items] | ||||
Share-based Compensation | $ 6,626 | $ 10,295 | $ 12,442 | $ 18,937 |
Employee Stock Option [Member] | ||||
Allocation of Recognized Period Costs [Line Items] | ||||
Share-based Compensation | 6 | 2,566 | 99 | 3,743 |
Restricted stock units, including performance based awards | ||||
Allocation of Recognized Period Costs [Line Items] | ||||
Share-based Compensation | 6,620 | 7,729 | 12,343 | 15,194 |
Cost of sales | ||||
Allocation of Recognized Period Costs [Line Items] | ||||
Allocated Share-based Compensation Expense | 2,582 | 1,851 | 4,317 | 4,299 |
Selling, general and administrative | ||||
Allocation of Recognized Period Costs [Line Items] | ||||
Allocated Share-based Compensation Expense | 3,939 | 8,388 | 7,929 | 14,552 |
Research and development | ||||
Allocation of Recognized Period Costs [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 105 | $ 56 | $ 196 | $ 86 |
Note 13 Shares Authorized for F
Note 13 Shares Authorized for Future Issuance and Available for Grant (Details) - shares shares in Millions | Mar. 30, 2019 | Mar. 11, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Capital Shares Reserved for Future Issuance | 10.3 | |
Total number of stock options and unvested restricted stock units outstanding | 5.8 | |
Number of Shares Available for Future Grant | 4.5 | |
2019 Stock Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Capital Shares Reserved for Future Issuance | 4 |
Note 13 Restricted Stock Rollfo
Note 13 Restricted Stock Rollforward (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended |
Mar. 30, 2019 | Sep. 29, 2018 | |
Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding, beginning | 3,303 | |
Granted | 1,677 | |
Vested/Forfeited/Cancelled | (1,697) | |
Outstanding, ending | 3,283 | 3,303 |
Expected to vest | 2,598 | |
Weighted Average Grant Date Fair Value Restricted Stock [Abstract] | ||
Outstanding, beginning | $ 30.33 | |
Granted | 24.58 | |
Vested/Forfeited/Cancelled | 30.03 | |
Outstanding, ending | 27.55 | $ 30.33 |
Expected to vest | $ 27.70 | |
Weighted Average Remaining Contractual Term [Abstract] | ||
Outstanding | 1 year 7 months 15 days | 1 year 2 months 15 days |
Expected to vest | 1 year 5 months 3 days | |
Restricted Stock Non vested Aggregate Intrinsic Value [Abstract] | ||
Outstanding | $ 100,282 | $ 97,913 |
Expected to vest | $ 79,376 |
Note 13 Unrecognized Stock Base
Note 13 Unrecognized Stock Based Compensation Expense (Details) $ in Millions | 6 Months Ended |
Mar. 30, 2019USD ($) | |
Restricted stock units | |
Unrecognized Compensation Cost and Weighted Average Period [Line Items] | |
Unrecognized compensation expense | $ 45 |
Weighted average period of recognition (years) | 1 year 5 months 24 days |
Performance Shares | |
Unrecognized Compensation Cost and Weighted Average Period [Line Items] | |
Unrecognized compensation expense | $ 11 |