Document and entity information
Document and entity information Document - USD ($) | 12 Months Ended | ||
Sep. 28, 2019 | Oct. 31, 2019 | Mar. 29, 2019 | |
Entity Information [Line Items] | |||
Document Annual Report | true | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 28, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 0-21272 | ||
Entity Registrant Name | Sanmina Corporation | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 77-0228183 | ||
Entity Address, Address Line One | 2700 N. First St., | ||
Entity Address, City or Town | San Jose | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 95134 | ||
City Area Code | 408 | ||
Local Phone Number | 964-3500 | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | SANM | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,648,359,348 | ||
Entity Common Stock, Shares Outstanding | 69,976,917 | ||
Entity Central Index Key | 0000897723 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --09-28 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 28, 2019 | Sep. 29, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 454,741 | $ 419,528 |
Accounts receivable, net of allowances of $12,481 and $12,211 as of September 28, 2019 and September 29, 2018, respectively | 1,128,379 | 1,177,219 |
Contract assets | 396,300 | 0 |
Inventories | 900,557 | 1,374,004 |
Prepaid expenses and other current assets | 40,952 | 43,676 |
Total current assets | 2,920,929 | 3,014,427 |
Property, plant and equipment, net | 630,647 | 642,913 |
Deferred income tax assets, net | 279,803 | 344,124 |
Other | 74,134 | 83,669 |
Total assets | 3,905,513 | 4,085,133 |
Current liabilities: | ||
Accounts payable | 1,336,914 | 1,547,399 |
Accrued liabilities | 180,107 | 136,427 |
Accrued payroll and related benefits | 127,647 | 124,748 |
Short-term debt, including current portion of long-term debt | 38,354 | 593,321 |
Total current liabilities | 1,683,022 | 2,401,895 |
Long-term liabilities: | ||
Long-term debt | 346,971 | 14,346 |
Other | 232,947 | 196,048 |
Total long-term liabilities | 579,918 | 210,394 |
Commitments and Contingencies (Note 9) | ||
Stockholders' equity: | ||
Preferred stock, $.01 par value, authorized 5,000 shares, none issued and outstanding | 0 | 0 |
Common stock, $.01 par value, authorized 166,667 shares; 105,551 and 103,128 shares issued and 69,720 and 67,777 shares outstanding as of September 28, 2019 and September 29, 2018, respectively | 697 | 678 |
Treasury stock, 35,831 and 35,351 shares as of September 28, 2019 and September 29, 2018, respectively, at cost | (804,118) | (791,366) |
Additional paid-in capital | 6,266,812 | 6,222,310 |
Accumulated other comprehensive income | 42,259 | 73,944 |
Accumulated deficit | (3,863,077) | (4,032,722) |
Total stockholders' equity | 1,642,573 | 1,472,844 |
Total liabilities and stockholders' equity | $ 3,905,513 | $ 4,085,133 |
Balance sheet parenthetical (Pa
Balance sheet parenthetical (Parentheticals) - USD ($) shares in Thousands, $ in Thousands | Sep. 28, 2019 | Sep. 29, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable allowances | $ 12,481 | $ 12,211 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 5,000 | 5,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 166,667 | 166,667 |
Common Stock, Shares, Issued | 105,551 | 103,128 |
Common Stock, Shares, Outstanding | 69,720 | 67,777 |
Treasury Stock, Shares | 35,831 | 35,351 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Net sales | $ 8,233,859 | $ 7,110,130 | $ 6,868,619 |
Cost of sales | 7,641,921 | 6,646,347 | 6,348,708 |
Gross profit | 591,938 | 463,783 | 519,911 |
Operating expenses: | |||
Selling, general and administrative | 260,032 | 250,924 | 251,568 |
Research and development | 27,552 | 30,754 | 33,716 |
Restructuring costs | 13,753 | 29,146 | 1,339 |
Goodwill impairment | 0 | 30,610 | 0 |
Other | 4,484 | 2,908 | 6,821 |
Total operating expenses | 305,821 | 344,342 | 293,444 |
Operating income | 286,117 | 119,441 | 226,467 |
Interest income | 1,111 | 1,268 | 1,265 |
Interest expense | (30,763) | (27,734) | (21,934) |
Other income (expense), net | (10,846) | 4,564 | 7,682 |
Interest and other, net | (40,498) | (21,902) | (12,987) |
Income before income taxes | 245,619 | 97,539 | 213,480 |
Provision for income taxes | 104,104 | 193,072 | 74,647 |
Net income (loss) | $ 141,515 | $ (95,533) | $ 138,833 |
Net income (loss) per share: | |||
Basic | $ 2.05 | $ (1.37) | $ 1.86 |
Diluted | $ 1.97 | $ (1.37) | $ 1.78 |
Weighted-average shares used in computing per share amounts: | |||
Basic | 69,129 | 69,833 | 74,481 |
Diluted | 71,678 | 69,833 | 78,128 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Net income (loss) | $ 141,515 | $ (95,533) | $ 138,833 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | (1,621) | (3,063) | 588 |
Derivative financial instruments: | |||
Changes in unrealized gain (loss) | (21,508) | (982) | 819 |
Amount reclassified into net income | 1,955 | 859 | (592) |
Pension benefit plans: | |||
Changes in unrecognized net actuarial gain (loss) and unrecognized transition cost | (11,450) | (460) | 8,833 |
Amortization of actuarial loss (gain) and transition cost | 939 | 796 | 1,765 |
Total other comprehensive income (loss) | (31,685) | (2,850) | 11,413 |
Comprehensive income (loss) | $ 109,830 | $ (98,383) | $ 150,246 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock And Additional Paid in Capital | Number of Common Shares | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Deficit |
Balance at Oct. 01, 2016 | $ 1,609,803 | $ 6,120,509 | $ (456,796) | $ 65,381 | $ (4,119,291) | |
Common Stock, Shares, Issued at Oct. 01, 2016 | 98,141 | |||||
Treasury Stock, Shares at Oct. 01, 2016 | (25,110) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuances under stock plans | 3,531 | |||||
Issuances Under Stock Plans, Value | 27,129 | 27,129 | ||||
Stock-based compensation | 37,450 | 37,450 | ||||
Repurchases of Treasury Stock, Shares | (4,898) | |||||
Repurchases of Treasury Stock, Value | (176,944) | $ (176,944) | ||||
Other comprehensive income (loss) | 11,413 | 11,413 | ||||
Net income (loss) | 138,833 | 138,833 | ||||
Common Stock, Shares, Issued at Sep. 30, 2017 | 101,672 | |||||
Treasury Stock, Shares at Sep. 30, 2017 | (30,008) | |||||
Balance at Sep. 30, 2017 | 1,647,684 | 6,185,088 | $ (633,740) | 76,794 | (3,980,458) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuances under stock plans | 1,456 | |||||
Issuances Under Stock Plans, Value | 4,407 | 4,407 | ||||
Stock-based compensation | 33,493 | 33,493 | ||||
Repurchases of Treasury Stock, Shares | (5,343) | |||||
Repurchases of Treasury Stock, Value | (157,626) | $ (157,626) | ||||
Other comprehensive income (loss) | (2,850) | (2,850) | ||||
Net income (loss) | $ (95,533) | (95,533) | ||||
Common Stock, Shares, Issued at Sep. 29, 2018 | 103,128 | 103,128 | ||||
Treasury Stock, Shares at Sep. 29, 2018 | (35,351) | (35,351) | ||||
Balance at Sep. 29, 2018 | $ 1,472,844 | 6,222,988 | $ (791,366) | 73,944 | (4,032,722) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of new accounting pronouncement | 43,269 | 43,269 | ||||
Issuances under stock plans | 2,423 | |||||
Issuances Under Stock Plans, Value | 13,539 | 13,539 | ||||
Stock-based compensation | 30,844 | 30,844 | ||||
Adjustments to Additional Paid in Capital, Other | 138 | |||||
Repurchases of Treasury Stock, Shares | (480) | |||||
Repurchases of Treasury Stock, Value | $ (12,752) | |||||
Treasury Stock, Value, Acquired, Cost Method and Adjustments to APIC | 12,614 | |||||
Other comprehensive income (loss) | (31,685) | (31,685) | ||||
Net income (loss) | $ 141,515 | 141,515 | ||||
Common Stock, Shares, Issued at Sep. 28, 2019 | 105,551 | 105,551 | ||||
Treasury Stock, Shares at Sep. 28, 2019 | (35,831) | (35,831) | ||||
Balance at Sep. 28, 2019 | $ 1,642,573 | $ 6,267,509 | $ (804,118) | $ 42,259 | (3,863,077) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of new accounting pronouncement | $ 28,130 | $ 28,130 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | |||
Net income (loss) | $ 141,515 | $ (95,533) | $ 138,833 |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | |||
Depreciation and amortization | 116,949 | 118,820 | 118,751 |
Stock-based compensation expense | 30,844 | 32,825 | 37,920 |
Deferred income taxes | 54,668 | 173,591 | 37,892 |
Goodwill impairment | 0 | 30,610 | 0 |
Other, net | 2,219 | 1,777 | 4,188 |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | 54,947 | (69,076) | (136,072) |
Contract asset | (20,814) | 0 | 0 |
Inventories | 121,383 | (324,168) | (104,468) |
Prepaid expenses and other assets | 10,018 | 7,797 | 12,303 |
Accounts payable | (182,521) | 268,421 | 130,648 |
Accrued liabilities | 53,757 | 11,360 | 10,966 |
Cash provided by operating activities | 382,965 | 156,424 | 250,961 |
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES: | |||
Purchases of property, plant and equipment | (134,674) | (118,881) | (111,833) |
Proceeds from sales of property, plant and equipment | 7,532 | 4,722 | 3,935 |
Purchases of long-term investments | (499) | (2,019) | 0 |
Cash used in investing activities | (127,641) | (116,178) | (107,898) |
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES: | |||
Proceeds from revolving credit facility borrowings | 3,884,325 | 4,040,600 | 932,770 |
Repayments of revolving credit facility borrowings | (4,099,325) | (3,910,600) | (872,770) |
Repayments of long-term debt | (378,416) | (3,416) | (43,416) |
Proceeds from long-term debt | 375,000 | 0 | 0 |
Debt issuance costs | (2,727) | 0 | 0 |
Net proceeds from stock issuances | 13,539 | 4,407 | 27,129 |
Repurchases of common stock | (12,614) | (157,625) | (176,944) |
Other, net | 0 | (1,701) | (2,262) |
Cash used in financing activities | (220,218) | (28,335) | (135,493) |
Effect of exchange rate changes | 107 | 956 | 803 |
Increase in cash and cash equivalents | 35,213 | 12,867 | 8,373 |
Cash and cash equivalents at beginning of year | 419,528 | 406,661 | 398,288 |
Cash and cash equivalents at end of year | 454,741 | 419,528 | 406,661 |
Cash paid during the year: | |||
Interest, net of capitalized interest | 30,143 | 26,156 | 17,983 |
Income taxes, net of refunds | 32,132 | 34,819 | 20,417 |
Noncash Investing and Financing Items: | |||
Unpaid purchases of property, plant and equipment at end of period | $ 27,279 | $ 49,546 | $ 49,831 |
Note 1 Organization of Sanmina
Note 1 Organization of Sanmina | 12 Months Ended |
Sep. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Organization of Sanmina Sanmina Corporation (“Sanmina,” or the “Company”) was incorporated in Delaware in 1989. The Company is a leading global provider of integrated manufacturing solutions, components, products and repair, logistics and after-market services. The Company provides these comprehensive solutions primarily to original equipment manufacturers (OEMs) that serve the industrial, medical, defense and aerospace, automotive, communications networks and cloud solutions industries. The Company's operations are managed as two businesses: 1) Integrated Manufacturing Solutions (IMS). IMS is a single operating segment consisting of printed circuit board assembly and test, final system assembly and test, and direct-order-fulfillment. 2) Components, Products and Services (CPS). Components include interconnect systems (printed circuit board fabrication, backplane, cable assemblies and plastic injection molding) and mechanical systems (enclosures and precision machining). Products include memory from our Viking Technology division; enterprise solutions from our Viking Enterprise Solutions division; RF, optical and microelectronic; defense and aerospace products from SCI Technology; and cloud-based manufacturing execution software from the Company's 42Q division. Services include design, engineering, logistics and repair services. The Company's only reportable segment is IMS, which represented approximately 80% of total revenue in 2019 . The CPS business consists of multiple operating segments which do not meet the quantitative thresholds for being presented as reportable segments. Therefore, financial information for these operating segments will be presented in a single category entitled “Components, Products and Services”. Basis of Presentation Fiscal Year. The Company operates on a 52 or 53 week year ending on the Saturday nearest September 30. Fiscal 2019 , 2018 and 2017 were each 52 weeks. All references to years relate to fiscal years unless otherwise noted. Principles of Consolidation. |
Note 2 Summary of Significant A
Note 2 Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 28, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies Management Estimates and Uncertainties. The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates made in preparing the consolidated financial statements relate to allowances for accounts receivable; provisions for excess and obsolete inventories, product returns, warranties, environmental matters, and legal exposures; determining the recoverability of claims made in connection with customer bankruptcies; determining liabilities for uncertain tax positions; determining the realizability of deferred tax assets; determining fair values of tangible and intangible assets for purposes of business combinations and impairment tests; determining fair values of contingent consideration and equity awards; and determining forfeiture rates for purposes of calculating stock compensation expense. Actual results could differ materially from these estimates. Financial Instruments and Concentration of Credit Risk. Financial instruments consist primarily of cash and cash equivalents, accounts receivable, foreign currency forward contracts, interest rate swap agreement, accounts payable and debt obligations. With the exception of certain of the Company's debt obligations (refer to Note 5. Financial Instruments), the fair value of these financial instruments approximates their carrying amount as of September 28, 2019 and September 29, 2018 due to the nature or short maturity of these instruments, or the fact that the instruments are recorded at fair value on the consolidated balance sheets. Accounts Receivable and Other Related Allowances. The Company had an allowance of $12 million as of September 28, 2019 and September 29, 2018 for uncollectible accounts, product returns and other net sales adjustments. One of the Company's most significant risks is the ultimate realization of its accounts receivable. This risk is mitigated by ongoing credit evaluations of customers and frequent contact with customers, especially the most significant customers, which enable the Company to monitor changes in its customers' business operations and respond accordingly. To establish the allowance for doubtful accounts, the Company estimates credit risk associated with accounts receivable by considering the creditworthiness of its customers, past experience, specific facts and circumstances, and the overall economic climate in industries that it serves. To establish the allowance for product returns and other adjustments, the Company primarily utilizes historical data. Accounts Receivable Sales. During 2018, the Company entered into a Receivables Purchase Agreement (the “RPA”) with certain third-party banking institutions for the sale of trade receivables generated from sales to certain customers, subject to acceptance by the banks that are party to the RPA. 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. Accounts receivable balances sold are removed from the consolidated balance sheets and the related proceeds are reported as cash provided by operating activities in the consolidated statements of cash flows. Inventories. Inventories are stated at the lower of cost (first-in, first-out method) and net realizable value. Cost includes labor, materials and manufacturing overhead. Provisions are made to reduce excess and obsolete inventories to their estimated net realizable values. The ultimate realization of inventory carrying amounts is primarily affected by changes in customer demand. Inventory provisions are established based on forecasted demand, past experience with specific customers, the age and nature of the inventory, the ability to redistribute inventory to other programs or back to suppliers, and whether customers are contractually obligated and have the ability to pay for the related inventory. Certain payments received from customers for inventory held by the Company are recorded as a reduction of inventory. Long-lived Assets. Property, plant and equipment are stated at cost or, in the case of property and equipment acquired through business combinations, at fair value as of the acquisition date. Depreciation is provided on a straight-line basis over 20 to 40 years for buildings and 3 to 15 years for machinery, equipment, furniture and fixtures. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or useful life of the asset . The Company reviews property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. An asset group is the unit of accounting which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets. An asset or asset group is considered impaired if its carrying amount exceeds the undiscounted future net cash flows the asset or asset group is expected to generate. If an asset or asset group is considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset or asset group exceeds its fair value. For asset groups for which the primary asset is a building, the Company estimates fair value based on data provided by commercial real estate brokers. For other asset groups, the Company estimates fair value based on projected discounted future net cash flows. Goodwill. Goodwill is tested for impairment on an annual basis and whenever events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable, as assessed at a reporting unit level. If, based on a qualitative assessment, the Company determines it is more-likely-than-not that goodwill is impaired, the Company performs a quantitative assessment to determine whether the fair value of our reporting unit is less than its carrying value and, if so, an impairment adjustment must be recorded up to the carrying value of goodwill. Foreign Currency Translation. For foreign subsidiaries using the local currency as their functional currency, assets and liabilities are translated to U.S. dollars at exchange rates in effect at the balance sheet date and income and expenses are translated at average exchange rates. The effects of these translation adjustments are reported in stockholders' equity as a component of accumulated other comprehensive income ("AOCI"). For all entities, remeasurement adjustments for non-functional currency monetary assets and liabilities are included in other income, net in the accompanying consolidated statements of operations. Remeasurement gains and losses arising from long-term intercompany loans denominated in a currency other than an entity's functional currency are recorded in AOCI if repayment of the loan is not anticipated in the foreseeable future. Derivative Instruments and Hedging Activities. The Company conducts business on a global basis in numerous currencies and certain of the Company's outstanding debt has a variable interest rate. Therefore, the Company is exposed to movements in foreign currency exchange rates and interest rates. The Company uses derivatives, such as foreign currency forward contracts and interest rate swaps, to minimize the volatility of earnings and cash flows associated with changes in foreign currency exchange rates and interest rates. The Company accounts for derivative instruments and hedging activities in accordance with ASC Topic 815, Derivatives and Hedging, which requires each derivative instrument to be recorded on the consolidated balance sheets at its fair value as either an asset or a liability. If a derivative is designated as a cash flow hedge, the effective portion of changes in the fair value of the derivative is recorded in stockholders' equity as a separate component of AOCI and is recognized in earnings when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges are immediately recognized in earnings. If a derivative is designated as a fair value hedge, changes in the fair value of the derivative and of the item being hedged are recognized in earnings in the current period. Derivative instruments are entered into for periods of time consistent with the related underlying exposures and are not entered into for speculative purposes. At the inception of a hedge, the Company documents all relationships between derivative instruments and related hedged items, as well as its risk-management objectives and strategies for the hedging transaction. The Company's foreign currency forward contracts and interest rate swaps potentially expose the Company to credit risk to the extent the counterparties may be unable to meet the terms of the agreement. The Company minimizes such risk by seeking high quality counterparties. Revenue Recognition. The Company derives revenue principally from sales of integrated manufacturing solutions, components and Company-proprietary products. Other sources of revenue include logistics and repair services; design, development and engineering services; defense and aerospace programs; and sales of raw materials to customers whose requirements change after the Company has procured inventory to fulfill the customer’s forecasted demand. 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. The Company recognizes revenue for the majority of its contracts on an over time basis. This is due to 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. Revenue streams for which revenue is recognized on an over time basis include sales of vertically integrated manufacturing solutions (integrated manufacturing solutions and components); logistics and repair services; design, development and engineering services; and defense and aerospace programs. 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. Revenue streams for which revenue is recognized at a point-in-time include Company-proprietary products and sales of raw materials. Refer to Note 4 for further discussion. Income taxes. The Company estimates its income tax provision or benefit in each of the jurisdictions in which it operates, including estimating exposures and making judgments regarding the realizability of deferred tax assets. The carrying value of the Company's net deferred tax assets is based on the Company's belief that it is more likely than not that the Company will generate sufficient future taxable income in certain jurisdictions to realize these deferred tax assets. A valuation allowance has been established for deferred tax assets which do not meet the “more likely than not” criteria discussed above . The Company's tax rate is highly dependent upon the geographic distribution of its worldwide income or losses, the tax regulations and tax holidays in each geographic region, the availability of tax credits and carryforwards, including net operating losses, and the effectiveness of its tax planning strategies. The Company makes an assessment of whether each income tax position is “more likely than not” of being sustained on audit, including resolution of related appeals or litigation, if any. For each income tax position that meets the “more likely than not” recognition threshold, the Company then assesses the largest amount of tax benefit that is greater than 50% likely of being realized upon effective settlement with the tax authority. Interest and penalties related to unrecognized tax benefits are recognized as a component of income tax expense. Recent Accounting Pronouncements Adopted in Fiscal Year 2019 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 4 for additional information and disclosures related to the adoption of ASC 606. Recent Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued ASU 2018-15, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." The new guidance aligns the requirements for capitalizing implementation costs incurred in a cloud-based hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This ASU is effective for the Company at the beginning of fiscal 2021, 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 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. 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. 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. The Company does not expect the impact of adoption to be significant. In June 2016, the FASB issued ASU 2016-13 "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which replaces the existing incurred loss impairment methodology with an expected credit loss methodology and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This new standard is effective for the Company at the beginning of fiscal 2021, including interim periods within that reporting period. The Company is currently evaluating the impact of adopting this new accounting standard. 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 adopted the new standard on September 29, 2019 , the first day of fiscal 2020. The Company elected certain other transition options which, among other things, allowed the Company to carry forward its prior conclusions about lease identification and classification. The Company expects adoption of the standard to result in recognition in the consolidated balance sheet of lease liabilities and right-to-use lease assets of approximately $55 million to $65 million as of September 29, 2019 |
Note 3 Balance Sheet and Income
Note 3 Balance Sheet and Income Statement Details | 12 Months Ended |
Sep. 28, 2019 | |
Balance Sheet and Income Statement Details [Abstract] | |
Additional Financial Information Disclosure [Text Block] | Balance Sheet and Income Statement Details Inventories Components of inventories were as follows: As of September 28, September 29, (In thousands) Raw materials $ 898,077 $ 1,139,585 Work-in-process 869 132,803 Finished goods 1,611 101,616 Total $ 900,557 $ 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 2 and 4. Property, Plant and Equipment, net Property, plant and equipment consisted of the following: As of September 28, September 29, (In thousands) Machinery and equipment $ 1,448,812 $ 1,476,903 Land and buildings 639,667 617,258 Leasehold improvements 44,015 56,190 Furniture and fixtures 23,619 23,911 Construction in progress 39,420 47,725 2,195,533 2,221,987 Less: Accumulated depreciation and amortization (1,564,886 ) (1,579,074 ) Property, plant and equipment, net $ 630,647 $ 642,913 Depreciation expense was $115 million , $112 million and $111 million for 2019 , 2018 and 2017 , respectively. Goodwill Goodwill is included in other noncurrent assets on the consolidated balance sheets. The net carrying value of goodwill is as follows: As of September 28, September 29, (In thousands) Goodwill - beginning of year $ 28,516 $ 59,126 Impairment — (30,610 ) Goodwill - end of year $ 28,516 $ 28,516 During the Company's annual goodwill impairment analysis in 2018, the Company concluded that the fair value of one of its CPS operating segments was below its carrying value, resulting in an impairment charge of $31 million . The fair value of the reporting unit was estimated based on the present value of future discounted cash flows. Other Income (Expense), net The following table summarizes the major components of other income (expense), net: Year ended September 28, September 29, September 30, (In thousands) Foreign exchange gains $ 281 $ 766 $ 4,709 Other, net (11,127 ) 3,798 2,973 Total $ (10,846 ) $ 4,564 $ 7,682 Other, net in 2019 is primarily fees incurred in connection with sales of accounts receivable. |
Note 4 Revenue Recognition
Note 4 Revenue Recognition | 12 Months Ended |
Sep. 28, 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 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 2019 did not materially impact any financial statement line item. 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. 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. Disaggregation of revenue In the following table, revenue is disaggregated by segment, market sector and geography. Year Ended September 28, September 29, September 30, (In thousands) Segments: IMS $ 6,858,676 $ 5,814,591 $ 5,593,913 CPS 1,375,183 1,295,539 1,274,706 Total $ 8,233,859 $ 7,110,130 $ 6,868,619 End Markets: Communications Networks $ 2,906,575 $ 2,684,609 $ 2,650,850 Industrial, Medical, Automotive and Defense 4,572,006 3,681,788 3,396,130 Cloud Solutions 755,278 743,733 821,639 Total $ 8,233,859 $ 7,110,130 $ 6,868,619 Geography: Americas (1) $ 4,194,652 $ 3,600,967 $ 3,306,538 EMEA 1,051,192 841,961 810,332 APAC 2,988,015 2,667,202 2,751,749 Total $ 8,233,859 $ 7,110,130 $ 6,868,619 (1) Mexico represents approximately 60% of the Americas revenue and the U.S. represents approximately 35% . Prior to the adoption of ASC 606, approximately 98% of the Company's revenue was recognized at a point-in-time, which was generally upon delivery (transfer of the title and risks of ownership) of a product to a customer or completion of a service being provided to a customer. Under ASC 606, 95% or more of the Company's revenue is recognized on an over time basis, which is as products are manufactured or services are performed. |
Note 5 Financial Instruments
Note 5 Financial Instruments | 12 Months Ended |
Sep. 28, 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. Additionally, the fair value of variable rate long-term debt approximates carrying value as of September 28, 2019 . 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. Other financial assets and financial liabilities measured at fair value on a recurring basis include foreign exchange contracts and interest rate swaps, neither of which were material as of September 28, 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 derivatives assets and liabilities under certain conditions, such as multiple transactions with the same currency maturing on the same date. The Company presents its derivative assets and derivative liabilities on a gross basis in the consolidated balance sheets. The amount that the Company had the right to offset under these netting arrangements was not material as of September 28, 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 risks managed by using derivative instruments is foreign currency exchange risk. Forward contracts on various foreign currencies are used to manage foreign currency risk associated with forecasted foreign currency transactions and certain monetary assets and liabilities denominated in non-functional currencies. The Company's primary foreign currency cash flows are in certain Asian and European countries, Brazil, Israel and Mexico. The Company had the following outstanding foreign currency forward contracts that were entered into to hedge foreign currency exposures: As of September 28, 2019 September 29, 2018 Derivatives Designated as Accounting Hedges: Notional amount (in thousands) $106,564 $116,992 Number of contracts 46 54 Derivatives Not Designated as Accounting Hedges: Notional amount (in thousands) $299,127 $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 gains (loss) recognized in Other Comprehensive Income ("OCI") on derivative instruments (effective portion), the amount of gain (loss) reclassified from AOCI into income (effective portion) and the amount of ineffectiveness were not material for any period presented herein. As of September 28, 2019 , AOCI related to foreign currency forward contracts was not material . The Company enters into short-term foreign currency forward contracts to hedge currency exposures associated with certain monetary assets and liabilities denominated in non-functional currencies. These contracts have maturities of up to two months and are not designated as accounting hedges. Accordingly, these contracts are marked-to-market at the end of each period with unrealized gains and losses recorded in other income, net, in the consolidated statements of operations. The amount of gains (losses) associated with these forward contracts were not material for any period presented herein. From an economic perspective, the objective of the Company's hedging program is for gains and losses on forward contracts to substantially offset gains and losses on the underlying hedged items. In addition to the contracts disclosed in the table above, the Company has numerous contracts that have been closed from an economic and financial accounting perspective and will settle early in the first month of the following quarter. Since these offsetting contracts do not expose the Company to risk of fluctuations in exchange rates, these contracts have been excluded from the above table. In addition to the short-term contracts discussed above, the Company has a foreign currency forward contract that matures in 2020 and was entered into as a hedge of foreign currency exposure associated with a long-term promissory note issued in connection with a previous business combination. 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 converts a portion of the Company's variable interest rate obligations to fixed interest rate obligations under its Amended Cash Flow Revolver. These swaps are accounted for as cash flow hedges under ASC Topic 815, Derivatives and Hedging. As of September 28, 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 September 28, 2019 was approximately 4.3% . As of September 28, 2019 , due to a decline in interest rates since the time the swaps were put in place, these interest rate swaps had a negative value of $20 million , of which $4 million is included in accrued liabilities and the remaining amount is included in other long-term liabilities on the consolidated balance sheets. |
Note 6 Financial Instruments an
Note 6 Financial Instruments and Concentration of Credit Risk | 12 Months Ended |
Sep. 28, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | Financial Instruments and Concentration of Credit Risk Financial instruments that potentially subject the Company to credit risk consist primarily of cash, cash equivalents, trade accounts receivable, foreign currency forward contracts and interest rate swap agreement. The carrying value of assets such as cash, cash equivalents and accounts receivable is expected to approximate fair value due to the short duration of the assets. The Company maintains its cash and cash equivalents with recognized financial institutions that management believes to be of high credit quality. One of the Company's most significant credit risks is the ultimate realization of accounts receivable. This risk is mitigated by ongoing credit evaluations of, and frequent contact with, the Company's customers, especially its most significant customers, thus enabling it to monitor changes in business operations and respond accordingly. The Company generally does not require collateral for sales on credit. The Company considers these concentrations of credit risks when estimating its allowance for doubtful accounts. Foreign currency forward contracts and interest rate swap are maintained with high quality counterparties to reduce the Company's credit risk and are recorded on the Company's balance sheets at fair value. One customer represented more than 10% of the Company's net sales in 2019 and 2018 and two customers each represented more than 10% of the Company's net sales in 2017. One customer represented 10% or more of the Company's gross accounts receivable as of September 28, 2019 and September 29, 2018 . |
Note 7 Debt
Note 7 Debt | 12 Months Ended |
Sep. 28, 2019 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt Long-term debt consisted of the following: As of September 28, September 29, (In thousands) Senior secured notes due 2019 ("Secured Notes") $ — $ 375,000 Term loan due 2023 ("Term Loan"), net of issuance costs 370,409 — Non-interest bearing promissory notes 14,916 17,667 Total long-term debt 385,325 392,667 Less: Current portion of non-interest bearing promissory notes 14,916 3,321 Current portion of long-term debt 23,438 375,000 Long-term debt $ 346,971 $ 14,346 Secured Notes. In 2014, the Company issued $375 million of senior secured notes due 2019 ("Secured Notes"). The Secured Notes were repaid upon maturity on June 1, 2019 . There was no gain or loss associated with the extinguishment of the Secured Notes. Non-interest Bearing Promissory Notes. On February 1, 2016 , the Company completed an acquisition and financed $15 million of the purchase price with the acquiree using a four-year non-interest bearing promissory note with a discounted value of $12 million as of the acquisition date. Revolving Credit Facility. During the first quarter of 2019, the Company entered into a Fourth Amended and Restated Credit Agreement (the "Amended Cash Flow Revolver") that provided for a committed $375 million Term Loan. 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 Secured Notes. On May 31, 2019, the Company drew down the Term Loan and used the proceeds to repay the Company's Secured Notes as discussed above. As of September 28, 2019 , costs incurred in connection with the amendment of the Amended Cash Flow Revolver and Term Loan are classified as long-term debt and are being amortized to interest expense over the life of the Term Loan using the effective interest method. Following the satisfaction and discharge of the Indenture dated as of June 4, 2014, using the proceeds of the Term Loan, and the release of all liens securing the Secured Notes, the Company’s debt structure changed as follows, effective June 3, 2019: (i) revolving commitments under the Amended Cash Flow Revolver increased for a total of $700 million in revolving commitments, (ii) the accordion feature of the Amended Cash Flow Revolver was reset so that the Company can obtain, subject to the satisfaction of specified conditions, additional revolving commitments in an aggregate amount of up to $200 million , and (iii) the Company and its subsidiary guarantors’ obligations under the Amended Cash Flow Revolver became secured by substantially all of the assets (excluding real property) of the Company and the subsidiary guarantors, subject to certain exceptions. 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. The outstanding principal amount of all loans under the Amended Cash Flow Revolver, including, the Term Loan, together with accrued and unpaid interest, is due on November 30, 2023 . The Company is required to repay a portion of the principal amount of the Term Loan equal to 1.25% in quarterly installments. Maturities of the Term Loan as of September 28, 2019 by fiscal year are as follows: (In Thousands) 2020 23,438 2021 18,750 2022 18,750 2023 14,062 2024 300,000 $ 375,000 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. 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 converts a portion of the Company's variable interest rate obligations to fixed interest rate obligations under its Amended Cash Flow Revolver. These swaps are accounted for as cash flow hedges under ASC Topic 815, Derivatives and Hedging. As of September 28, 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 September 28, 2019 was approximately 4.3% . As of September 28, 2019 , due to a decline in interest rates since the time the swaps were put in place, these interest rate swaps had a negative value of $20 million , of which $4 million is included in accrued liabilities and the remaining amount is included in other long-term liabilities on the consolidated balance sheets. As of September 28, 2019 , no borrowings were outstanding under the Amended Cash Flow Revolver and, as of September 29, 2018 , $215 million of borrowings were outstanding, under the Amended Cash Flow Revolver. As of September 28, 2019 , $8 million of letters of credit were outstanding under the Amended Cash Flow Revolver and $692 million was available to borrow. Foreign Short-term Borrowing Facilities . As of September 28, 2019 , certain foreign subsidiaries of the Company had a total of $69 million of short-term borrowing facilities, under which no borrowings were outstanding. These facilities expire at various dates through the first quarter of 2021 . Debt Covenants The Company's Amended Cash Flow Revolver requires the Company to comply with certain financial covenants. In addition, the Amended Cash Flow Revolver contains a number of restrictive covenants, including restrictions on incurring additional debt, making investments and other restricted payments, selling assets and paying dividends, subject to certain exceptions. The Company was in compliance with these covenants as of September 28, 2019 . |
Note 8 Accounts Receivable Sale
Note 8 Accounts Receivable Sale Program | 12 Months Ended |
Sep. 28, 2019 | |
Transfers and Servicing [Abstract] | |
Transfers and Servicing of Financial Assets [Text Block] | Accounts Receivable Sales Programs During 2018, the Company entered into a Receivables Purchase Agreement (the “RPA”) with certain third-party banking institutions for the sale of trade receivables generated from sales to certain customers, subject to acceptance by the banks that are party to the RPA. 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. For the years ended September 28, 2019 and September 29, 2018 , the Company sold approximately $2.7 billion and approximately $900 million , respectively, of accounts receivable under these programs. Upon sale, these receivables are removed from the consolidated balance sheets and cash received is presented as cash provided by operating activities in the consolidated statements of cash flows. Discounts on sold receivables were not material for any period presented. As of September 28, 2019 and September 29, 2018 , $241 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 institutions that purchased the receivables. As of September 28, 2019 and September 29, 2018 , $76 million and $23 million , respectively, had been collected but not yet remitted. This amount is classified in accrued liabilities on the consolidated balance sheets. |
Note 9 Commitment and Contingen
Note 9 Commitment and Contingencies | 12 Months Ended |
Sep. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies From time to time, the Company is a party to litigation, claims and other contingencies, including environmental and employee matters, 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 September 28, 2019 and September 29, 2018 , the Company had reserves of $36 million and $35 million , respectively, for environmental matters, warranty, litigation, contingent consideration and other contingencies (excluding reserves for uncertain tax positions), which the Company believes are adequate. However, there can be no assurance that the Company's reserves will be sufficient to settle these contingencies. Such reserves are included in accrued liabilities and other long-term liabilities on the consolidated balance sheets. Legal Proceedings Environmental Matters The Company is subject to various federal, state, local and foreign laws and regulations and administrative orders concerning environmental protection, including those addressing the discharge of pollutants into the environment, the management and disposal of hazardous substances, the cleanup of contaminated sites, the materials used in products, and the recycling, treatment and disposal of hazardous waste. As of September 28, 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 demands that the Company and other alleged defendants remediate groundwater contamination at two landfills located in Northern California to which the Company may have sent wastewater in the past. The Company continues to investigate the allegations contained in this order and has reserved its estimated exposure for this matter as of September 28, 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 appellate 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 currently is scheduled to commence on September 14, 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, a contractor who had been retained by the Company through a third party temporary staffing agency 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 contractors and 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 operative amended complaint seeks certification of a class of all non-exempt employees, whether employed directly or through a temporary staffing agency, employed from four years before the filing of the initial complaint to the time of trial. Additionally, on November 1, 2019, another contractor retained through a temporary staffing agency filed a lawsuit against the Company in the Santa Clara County Superior Court. The complaint, which includes a single cause of action under California’s Private Attorneys General Act of 2004, alleges Labor Code violations substantially similar to those alleged in the October 2018 class action lawsuit and seeks penalties on behalf of the State of California and other “aggrieved employees” (defined to be current and former hourly, non-exempt employees employed by the Company between August 22, 2018 and the present). The Company continues to investigate plaintiffs' allegations and has not provided reserves for these matters as of September 28, 2019 . The Company intends to defend vigorously these matters. 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 it to monitor changes in business operations and respond accordingly. Customer bankruptcies also entail the risk of potential recovery by the bankruptcy estate of amounts previously paid to the Company that are deemed a preference under bankruptcy laws. Commitments - Operating Leases The Company leases certain of its facilities and equipment under non-cancellable operating leases expiring at various dates through 2042 . The Company is responsible for utilities, maintenance, insurance and property taxes under these leases. Future minimum lease payments, net of sublease income, under operating leases are as follows: (In thousands) 2020 $ 18,472 2021 15,916 2022 11,368 2023 5,887 2024 3,993 Thereafter 17,071 Total $ 72,707 Rent expense, net of sublease income, under operating leases was $26 million , $27 million and $24 million for 2019 , 2018 and 2017 |
Note 10 Restructuring
Note 10 Restructuring | 12 Months Ended |
Sep. 28, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Restructuring In the first quarter of 2018, the Company began implementing restructuring actions 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: Year Ended September 28, 2019 September 29, 2018 (In thousands) Severance costs (approximately 2,900 employees) $ 1,900 $ 26,425 Other exit costs (generally recognized as incurred) 3,247 4,984 Total 5,147 31,409 Severance reimbursement — (10,000 ) Total - Q1 FY18 Plan 5,147 21,409 Costs incurred for other plans 8,606 7,737 Total - all plans $ 13,753 $ 29,146 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 September 28, 2019 , $5 million was included in accounts receivable on the consolidated balance sheets. Costs incurred for other exit costs consist primarily of costs to maintain vacant facilities that are owned and contract termination costs. Other plans Other plans include a number of plans for which costs are not expected to be material individually or in the aggregate. All Plans The Company's IMS segment incurred a benefit under all restructuring plans of $4 million during the year ended September 28, 2019 , primarily as a result of recovery from a third party of certain environmental remediation costs. This compares to costs incurred of $12 million for the year ended September 29, 2018 . The Company's CPS segment incurred costs under all restructuring plans of $18 million and $17 million for the years ended September 28, 2019 and September 29, 2018 , respectively. As of September 28, 2019 and September 29, 2018 , the Company had accrued liabilities of $5 million and $24 million , respectively, for restructuring costs (exclusive of long-term 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. On October 28, 2019, the Company adopted a Company-wide right-sizing plan. Under this plan, the Company expects to incur restructuring charges of approximately $10 million to $20 million , consisting primarily of cash severance costs, over the first half of 2020. |
Note 11 Income Tax
Note 11 Income Tax | 12 Months Ended |
Sep. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes Domestic and foreign components of income before income taxes were as follows: Year Ended September 28, September 29, September 30, (In thousands) Domestic $ 153,696 $ 16,215 $ 128,493 Foreign 91,923 81,324 84,987 Total $ 245,619 $ 97,539 $ 213,480 The provision for income taxes consists of the following: Year Ended September 28, September 29, September 30, (In thousands) Federal: Current $ 868 $ (122 ) $ (2,524 ) Deferred 45,910 170,994 37,543 State: Current 2,747 32 1,648 Deferred 2,961 (3,672 ) 4,204 Foreign: Current 45,929 20,287 37,076 Deferred 5,689 5,553 (3,300 ) Total provision for income taxes $ 104,104 $ 193,072 $ 74,647 Impact of U.S. Tax Reform On December 22, 2017, the U.S. Tax Cuts and Jobs Act (the “Tax Act”) was enacted into law. In accordance with ASC 740, Income Taxes , the Company is required to recognize the effect of the Tax Act in the period of enactment, which was the Company’s first quarter of fiscal 2018 that ended on December 30, 2017. The many changes in the Tax Act include a permanent reduction in the maximum federal corporate income tax rate from 35% to 21% effective as of January 1, 2018. Because of this reduction in rate, the Company was required to revalue its U.S. deferred tax assets and liabilities to the new rate in the Company's first quarter of 2018. The Tax Act also required a mandatory deemed repatriation of undistributed earnings and profits, at the rate of either 15.5% for cash or 8% for non-liquid assets. The Tax Act also includes provisions for Global Intangible Low-Taxed Income (“GILTI”), which imposes taxes on foreign income in excess of a deemed return on tangible assets of foreign corporations. These new provisions were effective for the Company in fiscal year 2019. During the first quarter of 2019, the Company elected to record the effects of GILTI as a period cost. The Company's provision for income taxes for 2019 , 2018 and 2017 was $104 million ( 42% of income before taxes), $193 million ( 198% of income before taxes) and $75 million ( 35% of income before taxes), respectively. Income tax expense for 2019 is higher than the expected U.S. statutory rate primarily due to a tax-related restructuring transaction that resulted in deferred tax expense of $22 million and foreign operations that resulted in higher tax than the U.S. statutory rate. During 2018, the Company recorded a net income tax expense for the impact of the Tax Act of $161 million , which was comprised of $175 million for remeasurement of the Company’s U.S deferred tax assets, zero for the mandatory deemed repatriation of undistributed earnings and profits, and a tax benefit of $14 million for the conversion to a territorial system. During the first quarter of 2017, the Company recorded a discrete tax benefit resulting from the merger of two foreign entities, the surviving entity of which was, and continues to be, included in the Company’s U.S. federal consolidated tax group. This restructuring allowed the Company to recognize a U.S. deferred tax asset to reflect the federal deductibility of a foreign uncertain tax position that became recognizable upon the merger of the subsidiaries. The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities are as follows: As of September 28, 2019 September 29, 2018 (In thousands) Deferred tax assets: U.S. net operating loss carryforwards $ 184,188 $ 218,710 Foreign net operating loss carryforwards 117,403 129,866 Intangibles 19,422 15,099 Accruals not currently deductible 45,117 45,922 Property, plant and equipment 28,710 22,596 Tax credit carryforwards 13,601 13,825 Reserves not currently deductible 15,266 14,420 Stock compensation expense 10,249 13,645 Federal benefit of foreign operations 14,006 7,104 Other 5,889 5,934 Valuation allowance (115,998 ) (113,559 ) Total deferred tax assets 337,853 373,562 Deferred tax liabilities on undistributed earnings (18,690 ) (23,986 ) Deferred tax liabilities on branch operations (34,378 ) (10,906 ) Other deferred tax liabilities (9,456 ) — Net deferred tax assets $ 275,329 $ 338,670 Recorded as: Non-current deferred tax assets $ 279,803 $ 344,124 Non-current deferred tax liabilities (4,474 ) (5,454 ) Net deferred tax assets $ 275,329 $ 338,670 The Company offsets deferred tax assets and liabilities by tax-paying jurisdiction. The resulting net amounts by tax jurisdiction are then aggregated without further offset. A valuation allowance is established or maintained when, based on currently available information and other factors, it is more likely than not that all or a portion of the deferred tax assets will not be realized. The Company regularly assesses its valuation allowance against deferred tax assets on a jurisdiction by jurisdiction basis. The Company considers all available positive and negative evidence, including future reversals of temporary differences, projected future taxable income, tax planning strategies and recent financial results. Significant judgment is required in assessing the Company's ability to generate revenue, gross profit, operating income and jurisdictional taxable income in future periods. The Company's valuation allowance as of September 28, 2019 relates primarily to foreign net operating losses, with the exception of $15 million related to U.S. state net operating losses. As of September 28, 2019 , income taxes and foreign withholding taxes have not been provided for approximately $420 million of cumulative undistributed earnings of several non-U.S. subsidiaries. The Company intends to reinvest these earnings indefinitely in operations outside of the U.S. Determination of the amount of unrecognized deferred tax liabilities on these undistributed earnings is not practicable. As of September 28, 2019 , the Company has cumulative net operating loss carryforwards for federal, state and foreign tax purposes of $770 million , $407 million and $520 million , respectively. The federal and state net operating loss carryforwards begin expiring in 2025 and 2020, respectively, and expire at various dates through 2035 . Certain foreign net operating losses start expiring in 2020. However, the majority of foreign net operating losses carryforward indefinitely. The Tax Reform Act of 1986 and similar state provisions impose restrictions on the utilization of net operating loss and tax credit carryforwards in the event of an “ownership change” as defined in the Internal Revenue Code. The utilization of certain net operating losses may be restricted due to changes in ownership and business operations. Prior to the adoption of ASU 2016-09, the Company was prohibited from recognizing a deferred tax asset for excess tax benefits related to stock and stock option plans that have not been realized through the reduction in income taxes payable. Such unrecognized deferred tax benefit as of September 30, 2017 was $124 million on a pre-tax basis and was recognized upon the Company’s adoption of ASU 2016-09, Improvements to Employee Share-based Accounting, in 2018 with a corresponding increase to retained earnings. Following is a reconciliation of the statutory federal tax rate to the Company's effective tax rate: Year Ended September 28, September 29, September 30, Federal tax at statutory tax rate 21.00 % 24.50 % 35.00 % Tax Act impact — 165.16 — Effect of foreign operations 9.30 7.92 1.89 Permanent items 0.40 (1.37 ) 2.10 Discrete charge for restructuring transaction 8.88 — — Discrete benefit of foreign restructuring — — (4.92 ) Other 0.61 0.49 (1.84 ) State income taxes, net of federal benefit 2.19 1.24 2.72 Effective tax rate 42.38 % 197.94 % 34.95 % A reconciliation of the beginning and ending amount of total unrecognized tax benefits, excluding accrued penalties and interest, is as follows: Year Ended September 28, September 29, September 30, (In thousands) Balance, beginning of year $ 60,787 $ 67,022 $ 55,773 Increase (decrease) related to prior year tax positions (1,731 ) (5,917 ) 1,670 Increase related to current year tax positions 8,902 8,392 9,741 Settlements (626 ) (7,648 ) — Decrease related to lapse of applicable statute of limitations (655 ) (1,062 ) (162 ) Balance, end of year $ 66,677 $ 60,787 $ 67,022 The Company had reserves of $39 million and $38 million as of September 28, 2019 and September 29, 2018 , respectively, for the payment of interest and penalties relating to unrecognized tax benefits. During 2019, the Company recognized a net income tax expense for interest and penalties of $1 million compared to a net income tax benefit of $3 million in 2018 and a net income tax expense of $4 million in 2017 . The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. Should the Company be able to ultimately recognize all of these uncertain tax positions, it would result in a benefit to net income and a reduction of the effective tax rate. The Company conducts business globally and, as a result, files income tax returns in the United States federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world. The Company is currently being audited by the Internal Revenue Service for tax years 2008 through 2010. To the extent the final tax liabilities are different from the amounts accrued, this would result in an increase or decrease in net operating loss carryforwards which would impact tax expense. Additionally, the Company is being audited by various state tax agencies and certain foreign countries. To the extent the final tax liabilities are different from the amounts accrued, the increases or decreases would be recorded as income tax expense or benefit in the consolidated statements of operations. Although the Company believes that the resolution of these audits will not have a material adverse impact on the Company’s results of operations, the outcome is subject to uncertainty. In general, the Company is no longer subject to United States federal or state income tax examinations for years before 2003, and to foreign examinations for years prior to 2003 in its major foreign jurisdictions. Although the timing of the resolution of audits is highly uncertain, it is reasonably possible that the balance of gross unrecognized tax benefits could significantly change in the next 12 months. However, given the number of years subject to audit and the number of matters being examined, the Company is unable to estimate the full range of possible adjustments to the balance of gross unrecognized tax benefits. |
Note 12 Earnings Per Share
Note 12 Earnings Per Share | 12 Months Ended |
Sep. 28, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Earnings Per Share Basic and diluted earnings per share amounts are calculated by dividing net income by the weighted average number of shares of common stock outstanding during the period, as follows: Year Ended September 28, September 29, September 30, 2017 (In thousands, except per share amounts) Numerator: Net income (loss) $ 141,515 $ (95,533 ) $ 138,833 Denominator: Weighted average common shares outstanding 69,129 69,833 74,481 Effect of dilutive stock options and restricted stock units 2,549 — 3,647 Denominator for diluted earnings per share 71,678 69,833 78,128 Net income (loss) per share: Basic $ 2.05 $ (1.37 ) $ 1.86 Diluted $ 1.97 $ (1.37 ) $ 1.78 Weighted-average dilutive securities that were excluded from the above calculation because their inclusion would have had an anti-dilutive effect under ASC Topic 260, Earnings per Share , due to application of the treasury stock method were not material. |
Note 13 Stockholders' Equity
Note 13 Stockholders' Equity | 12 Months Ended |
Sep. 28, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Stockholders' Equity The Company's 2009 Stock Plan ("2009 Plan") expired as to future grants on January 26, 2019. Although the 2009 Plan expired, it will continue to govern all awards granted under it prior to its expiration date. On March 11, 2019, the Company's stockholders approved the Company's 2019 Equity Incentive Plan ("2019 Plan") and the reservation of 4 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 by the Company. As of September 28, 2019 , an aggregate of 9.5 million shares were authorized for future issuance under the Company's stock plans, of which 5.0 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. Awards other than stock options and stock appreciation rights reduce common stock available for grant by 1.36 shares for every share of common stock subject to such an award. Awards under the 2019 Plan and 2009 Plan that expire or are cancelled without delivery of shares generally become available for issuance under the 2019 Plan. The 2019 Plan will expire as to future grants in December 2028 . Stock Repurchase Program During the fourth quarter of 2017, the Board of Directors approved a $200 million stock repurchase plan. The timing of repurchases will depends upon capital needs to support the growth of the Company's business, market conditions and other factors. Although stock repurchases are intended to increase stockholder value by reducing the number of outstanding shares, repurchases of shares reduce the Company's liquidity. During 2019 , 2018 and 2017 , the Company repurchased 0.3 million shares, 5.0 million shares and 4.3 million of its common stock for $7 million , $146 million and $160 million (including commissions), respectively. As of September 28, 2019 , $101 million remains available under the repurchase program authorized by the Board of Directors. Subsequent to the end of 2019, the Board of Directors authorized the Company to purchase an additional $200 million of its common stock on the same terms as the program approved in September 2017 which brought the total Board authorized amount to $301 million . One of the objectives of the Company's share repurchase plan is to offset the dilution that results from the issuance of shares under the Company's equity incentive plans. For example, over the past 3 years, the Company issued 7 million shares under its equity incentive plans and repurchased 10 million shares under its share repurchase plan. In addition to the repurchases discussed above, the Company repurchased 207,000 , 334,000 and 549,000 shares of its common stock during 2019 , 2018 , and 2017 , respectively, in settlement of employee tax withholding obligations due upon the vesting of restricted stock units. The Company paid $6 million , $12 million and $17 million , respectively, in conjunction with these purchases. Accumulated Other Comprehensive Income Accumulated other comprehensive income, net of tax as applicable, consisted of the following: As of September 28, September 29, (In thousands) Foreign currency translation adjustments $ 86,268 $ 87,889 Unrealized holding losses on derivative financial instruments (19,888 ) (335 ) Unrecognized net actuarial loss and unrecognized transition cost for benefit plans (24,121 ) (13,610 ) Total $ 42,259 $ 73,944 |
Note 14 Business Segment, Geogr
Note 14 Business Segment, Geographic and Customer Information | 12 Months Ended |
Sep. 28, 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: 1) Integrated Manufacturing Solutions (IMS). IMS is a reportable segment consisting of printed circuit board assembly and test, final system assembly and test, and direct order fulfillment. 2) Components, Products and Services (CPS). Components include interconnect systems (printed circuit board fabrication, backplane, cable assemblies and plastic injection molding) and mechanical systems (enclosures and precision machining). Products include memory from our Viking Technology division; enterprise solutions from our Viking Enterprise Solutions division; RF, optical and microelectronics; defense and aerospace products from SCI Technology; and cloud-based manufacturing execution software from the Company's 42Q division. Services include design, engineering, logistics and repair services. The Company evaluated its operating segments to determine whether they can be aggregated into reportable segments. Factors considered in this evaluation were similarity of economic characteristics, products, production processes, type or classes of customers, distribution methods and regulatory environments. The Company determined that it has only one reportable segment - IMS, which generated approximately 80% of the Company's total revenue in 2019 . The Company's CPS business consists of multiple operating segments which, based on this evaluation, do not meet the quantitative threshold for being presented as reportable segments. Therefore, financial information for these operating segments is presented in a single category entitled “Components, Products and Services". The accounting policies for each segment are the same as those disclosed by the Company for its consolidated financial statements. Intersegment sales consist primarily of sales of components from CPS to IMS. The Company's chief operating decision making group is the Chief Executive Officer and Chief Financial Officer and they allocate resources and assess performance of operating segments based on a measure of revenue and gross profit that excludes items not directly related to the Company's ongoing business operations. These items are typically either non-recurring or non-cash in nature. Segment information is as follows: Year Ended September 28, 2019 September 29, 2018 September 30, 2017 (In thousands) Gross sales: IMS $ 6,907,129 $ 5,847,958 $ 5,645,499 CPS 1,555,117 1,458,754 1,422,264 Intersegment revenue (228,387 ) (196,582 ) (199,144 ) Net Sales $ 8,233,859 $ 7,110,130 $ 6,868,619 Gross Profit: IMS $ 444,168 $ 352,361 $ 404,350 CPS 156,221 117,835 (1) 127,154 Total 600,389 470,196 531,504 Unallocated items (2) (8,451 ) (6,413 ) (11,593 ) Total $ 591,938 $ 463,783 $ 519,911 Depreciation and amortization: IMS $ 81,997 $ 76,071 $ 74,769 CPS 25,632 30,048 31,109 Total 107,629 106,119 105,878 Unallocated corporate items (3) 9,320 12,701 12,873 Total $ 116,949 $ 118,820 $ 118,751 Capital expenditures (receipt basis): IMS $ 79,943 $ 87,421 $ 106,000 CPS 28,629 28,696 30,512 Total 108,572 116,117 136,512 Unallocated corporate items (3) 3,836 2,480 4,122 Total $ 112,408 $ 118,597 $ 140,634 (1) During the fourth quarter of 2018, the Company recorded a $12.5 million pre-tax adjustment to correct errors that occurred from 2016 through the third quarter of 2018 with respect to the accounting for certain long-term contracts in one of the Company’s CPS divisions. These errors are immaterial to all prior periods. The impact of this out-of-period adjustment on the full year fiscal 2018 was $11 million which is also immaterial to 2018. (2) For purposes of evaluating segment performance, management excludes certain items from its measures of revenue and gross profit. These items consist of stock-based compensation expense, amortization of intangible assets, charges or credits resulting from distressed customers and acquisition-related items. (3) Primarily related to selling, general and administration functions. Segment assets, consisting of accounts receivable, inventories and fixed assets, are substantially proportional to segment sales. Information by geographic segment, determined based on the country in which a product is manufactured or a service is provided, was as follows: Year Ended September 28, September 29, September 30, (In thousands) Net sales: Americas (1) $ 4,194,652 $ 3,600,967 $ 3,306,538 EMEA 1,051,192 841,961 810,332 APAC 2,988,015 2,667,202 2,751,749 Total $ 8,233,859 $ 7,110,130 $ 6,868,619 (1) Mexico represents approximately 60% of the Americas revenue and the U.S. represents approximately 35% . Percentage of net sales represented by ten largest customers 54.2 % 53.0 % 52.9 % Number of customers representing 10% or more of net sales 1 1 2 As of September 28, September 29, (In thousands) Property, plant and equipment, net: Americas $ 369,985 $ 385,820 EMEA 72,040 72,051 APAC 188,622 185,042 Total $ 630,647 $ 642,913 |
Note 15 Stock-Based Compensatio
Note 15 Stock-Based Compensation | 12 Months Ended |
Sep. 28, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Share-based Payment Arrangement [Text Block] | Stock-Based Compensation Stock-based compensation expense was attributable to: Year Ended September 28, September 29, September 30, (In thousands) Stock options $ 1,250 $ 1,779 $ 1,640 Restricted stock units, including performance-based awards 29,594 31,046 36,280 Total $ 30,844 $ 32,825 $ 37,920 Stock-based compensation expense was recognized as follows: Year Ended September 28, September 29, September 30, (In thousands) Cost of sales $ 9,757 $ 8,187 $ 8,959 Selling, general & administrative 20,807 25,206 28,169 Research & development 280 (568 ) 792 Total $ 30,844 $ 32,825 $ 37,920 Restricted Stock Units The Company grants restricted stock units to executive officers, directors and certain management employees. These units vest over periods ranging from one to four years or based upon achievement of specified performance criteria and are automatically exchanged for shares of common stock at the vesting date. Compensation expense associated with these units is recognized ratably over the vesting period. Activity with respect to the Company's restricted stock units was as follows: Number of Shares Weighted Grant-Date Fair Value Per Share ($) Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value ($) (In thousands) (In thousands) Outstanding as of October 1, 2016 3,998 19.57 1.35 110,183 Granted 1,378 34.11 Vested/Forfeited/Cancelled (2,017 ) 16.20 Outstanding as of September 30, 2017 3,359 27.56 1.51 124,800 Granted 1,102 33.51 Vested/Forfeited/Cancelled (1,158 ) 25.31 Outstanding as of September 29, 2018 3,303 30.33 1.21 97,913 Granted 1,843 25.09 Vested/Forfeited/Cancelled (1,993 ) 29.46 Outstanding as of September 28, 2019 3,153 27.82 1.30 102,720 Expected to vest as of September 28, 2019 2,660 27.99 1.14 86,655 The fair value of restricted stock units that vested during the year was $29 million for 2019 , $36 million for 2018 and $53 million for 2017 . As of September 28, 2019 , unrecognized compensation expense of $34 million is expected to be recognized over a weighted average period of 1.2 years. Additionally, as of September 28, 2019 , unrecognized compensation expense related to performance-based restricted stock units for which achievement of vesting criteria is not currently considered probable was $7 million |
Note 16 Employee Benefit Plans
Note 16 Employee Benefit Plans | 12 Months Ended |
Sep. 28, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Employee Benefit Plans The Company has various defined contribution retirement plans that cover the majority of its domestic employees. These retirement plans permit participants to elect to have contributions made to the retirement plans in the form of salary deferrals. Under these retirement plans, the Company may match a portion of employee contributions. Amounts contributed by the Company were not material for any period presented herein. The Company sponsors a deferred compensation plan for eligible employees that allows participants to defer payment of all or part of their compensation. Deferrals under this plan were $4 million and $5 million for 2019 and 2018 , respectively. Assets associated with these plans were $36 million and $35 million as of September 28, 2019 and September 29, 2018 , respectively. Liabilities associated with these plans were $36 million and $35 million as of September 28, 2019 and September 29, 2018 , respectively. These amounts are recorded in other non-current assets and other long-term liabilities on the consolidated balance sheets. Defined benefit plans covering certain employees in the United States and Canada were frozen in 2001. Employees who had not yet vested will continue to be credited with service until vesting occurs, but no additional benefits will accrue. The Company also provides defined benefit pension plans in certain other countries. The assumptions used for calculating the pension benefit obligations for non-U.S. plans depend on the local economic environment and regulations. The measurement date for the Company's defined benefit plans is September 28, 2019 . The funded status and plan assets for the defined benefit plans and amount reported on the consolidated balance sheets were as follows: As of September 28, 2019 September 29, 2018 September 30, 2017 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Plan Assets $ 15,421 $ 23,877 $ 16,784 $ 26,114 $ 16,930 $ 26,993 Projected Benefit Obligation 24,221 58,842 22,586 50,930 24,743 48,873 Current Liabilities $ — $ 1,443 $ — $ 1,430 $ — $ 1,117 Non-current liabilities 8,800 33,522 5,802 23,386 7,813 20,763 Underfunded Status $ 8,800 $ 34,965 $ 5,802 $ 24,816 $ 7,813 $ 21,880 The Company’s investment strategy is designed to help ensure that sufficient pension assets are available to pay benefits as they become due. Plan assets are invested in mutual funds that are valued using the NAV that is quoted in active markets (Level 1 input). These plans are managed consistent with regulations or market practices of the country in which the assets are invested. As of September 28, 2019 |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Sep. 28, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts Disclosure [Text Block] | The financial statement Schedule II-VALUATION AND QUALIFYING ACCOUNTS is filed as part of this Form 10-K. SANMINA CORPORATION SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS Balance at Beginning of Period Charged to Operations Charges Utilized Balance at End of Period (In thousands) Allowances for Doubtful Accounts, Product Returns and Other Net Sales Adjustments Fiscal year ended September 30, 2017 $ 15,081 $ (747 ) $ — $ 14,334 Fiscal year ended September 29, 2018 $ 14,334 $ (2,123 ) $ — $ 12,211 Fiscal year ended September 28, 2019 $ 12,211 $ 270 $ — $ 12,481 |
Note 1 Organization of Sanmina
Note 1 Organization of Sanmina Accounting Policies (Policies) | 12 Months Ended |
Sep. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fiscal Period, Policy [Policy Text Block] | Fiscal Year. The Company operates on a 52 or 53 week year ending on the Saturday nearest September 30. Fiscal 2019 , 2018 and 2017 |
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block] | Principles of Consolidation. |
Note 2 Summary of Significant_2
Note 2 Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 28, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | Management Estimates and Uncertainties. The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates made in preparing the consolidated financial statements relate to allowances for accounts receivable; provisions for excess and obsolete inventories, product returns, warranties, environmental matters, and legal exposures; determining the recoverability of claims made in connection with customer bankruptcies; determining liabilities for uncertain tax positions; determining the realizability of deferred tax assets; determining fair values of tangible and intangible assets for purposes of business combinations and impairment tests; determining fair values of contingent consideration and equity awards; and determining forfeiture rates for purposes of calculating stock compensation expense. Actual results could differ materially from these estimates. |
Financial Instruments And Concentration of Credit Risk [Policy Text Block] | Financial Instruments and Concentration of Credit Risk. Financial instruments consist primarily of cash and cash equivalents, accounts receivable, foreign currency forward contracts, interest rate swap agreement, accounts payable and debt obligations. With the exception of certain of the Company's debt obligations (refer to Note 5. Financial Instruments), the fair value of these financial instruments approximates their carrying amount as of September 28, 2019 and September 29, 2018 due to the nature or short maturity of these instruments, or the fact that the instruments are recorded at fair value on the consolidated balance sheets. Accounts Receivable and Other Related Allowances. The Company had an allowance of $12 million as of September 28, 2019 and September 29, 2018 for uncollectible accounts, product returns and other net sales adjustments. One of the Company's most significant risks is the ultimate realization of its accounts receivable. This risk is mitigated by ongoing credit evaluations of customers and frequent contact with customers, especially the most significant customers, which enable the Company to monitor changes in its customers' business operations and respond accordingly. To establish the allowance for doubtful accounts, the Company estimates credit risk associated with accounts receivable by considering the creditworthiness of its customers, past experience, specific facts and circumstances, and the overall economic climate in industries that it serves. To establish the allowance for product returns and other adjustments, the Company primarily utilizes historical data. |
Transfers and Servicing of Financial Assets, Policy [Policy Text Block] | Accounts Receivable Sales. During 2018, the Company entered into a Receivables Purchase Agreement (the “RPA”) with certain third-party banking institutions for the sale of trade receivables generated from sales to certain customers, subject to acceptance by the banks that are party to the RPA. 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. Accounts receivable balances sold are removed from the consolidated balance sheets and the related proceeds are reported as cash provided by operating activities in the consolidated statements of cash flows. |
Inventory, Policy [Policy Text Block] | Inventories. Inventories are stated at the lower of cost (first-in, first-out method) and net realizable value. Cost includes labor, materials and manufacturing overhead. Provisions are made to reduce excess and obsolete inventories to their estimated net realizable values. The ultimate realization of inventory carrying amounts is primarily affected by changes in customer demand. Inventory provisions are established based on forecasted demand, past experience with specific customers, the age and nature of the inventory, the ability to redistribute inventory to other programs or back to suppliers, and whether customers are contractually obligated and have the ability to pay for the related inventory. Certain payments received from customers for inventory held by the Company are recorded as a reduction of inventory. |
Property, Plant and Equipment, Policy [Policy Text Block] | Long-lived Assets. Property, plant and equipment are stated at cost or, in the case of property and equipment acquired through business combinations, at fair value as of the acquisition date. Depreciation is provided on a straight-line basis over 20 to 40 years for buildings and 3 to 15 years for machinery, equipment, furniture and fixtures. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or useful life of the asset . |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill. Goodwill is tested for impairment on an annual basis and whenever events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable, as assessed at a reporting unit level. If, based on a qualitative assessment, the Company determines it is more-likely-than-not that goodwill is impaired, the Company performs a quantitative assessment to determine whether the fair value of our reporting unit is less than its carrying value and, if so, an impairment adjustment must be recorded up to the carrying value of goodwill. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation. For foreign subsidiaries using the local currency as their functional currency, assets and liabilities are translated to U.S. dollars at exchange rates in effect at the balance sheet date and income and expenses are translated at average exchange rates. The effects of these translation adjustments are reported in stockholders' equity as a component of accumulated other comprehensive income ("AOCI"). For all entities, remeasurement adjustments for non-functional currency monetary assets and liabilities are included in other income, net in the accompanying consolidated statements of operations. Remeasurement gains and losses arising from long-term intercompany loans denominated in a currency other than an entity's functional currency are recorded in AOCI if repayment of the loan is not anticipated in the foreseeable future. |
Derivatives, Policy [Policy Text Block] | Derivative Instruments and Hedging Activities. The Company conducts business on a global basis in numerous currencies and certain of the Company's outstanding debt has a variable interest rate. Therefore, the Company is exposed to movements in foreign currency exchange rates and interest rates. The Company uses derivatives, such as foreign currency forward contracts and interest rate swaps, to minimize the volatility of earnings and cash flows associated with changes in foreign currency exchange rates and interest rates. The Company accounts for derivative instruments and hedging activities in accordance with ASC Topic 815, Derivatives and Hedging, which requires each derivative instrument to be recorded on the consolidated balance sheets at its fair value as either an asset or a liability. If a derivative is designated as a cash flow hedge, the effective portion of changes in the fair value of the derivative is recorded in stockholders' equity as a separate component of AOCI and is recognized in earnings when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges are immediately recognized in earnings. If a derivative is designated as a fair value hedge, changes in the fair value of the derivative and of the item being hedged are recognized in earnings in the current period. Derivative instruments are entered into for periods of time consistent with the related underlying exposures and are not entered into for speculative purposes. At the inception of a hedge, the Company documents all relationships between derivative instruments and related hedged items, as well as its risk-management objectives and strategies for the hedging transaction. The Company's foreign currency forward contracts and interest rate swaps potentially expose the Company to credit risk to the extent the counterparties may be unable to meet the terms of the agreement. The Company minimizes such risk by seeking high quality counterparties. |
Revenue [Policy Text Block] | Revenue Recognition. The Company derives revenue principally from sales of integrated manufacturing solutions, components and Company-proprietary products. Other sources of revenue include logistics and repair services; design, development and engineering services; defense and aerospace programs; and sales of raw materials to customers whose requirements change after the Company has procured inventory to fulfill the customer’s forecasted demand. 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. The Company recognizes revenue for the majority of its contracts on an over time basis. This is due to 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. Revenue streams for which revenue is recognized on an over time basis include sales of vertically integrated manufacturing solutions (integrated manufacturing solutions and components); logistics and repair services; design, development and engineering services; and defense and aerospace programs. 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. Revenue streams for which revenue is recognized at a point-in-time include Company-proprietary products and sales of raw materials. Refer to Note 4 for further discussion. |
Income Tax, Policy [Policy Text Block] | Income taxes. The Company estimates its income tax provision or benefit in each of the jurisdictions in which it operates, including estimating exposures and making judgments regarding the realizability of deferred tax assets. The carrying value of the Company's net deferred tax assets is based on the Company's belief that it is more likely than not that the Company will generate sufficient future taxable income in certain jurisdictions to realize these deferred tax assets. A valuation allowance has been established for deferred tax assets which do not meet the “more likely than not” criteria discussed above . The Company's tax rate is highly dependent upon the geographic distribution of its worldwide income or losses, the tax regulations and tax holidays in each geographic region, the availability of tax credits and carryforwards, including net operating losses, and the effectiveness of its tax planning strategies. The Company makes an assessment of whether each income tax position is “more likely than not” of being sustained on audit, including resolution of related appeals or litigation, if any. For each income tax position that meets the “more likely than not” recognition threshold, the Company then assesses the largest amount of tax benefit that is greater than 50% likely of being realized upon effective settlement with the tax authority. Interest and penalties related to unrecognized tax benefits are recognized as a component of income tax expense. |
New Accounting Pronouncements [Text Block] | Recent Accounting Pronouncements Adopted in Fiscal Year 2019 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 4 for additional information and disclosures related to the adoption of ASC 606. Recent Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued ASU 2018-15, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." The new guidance aligns the requirements for capitalizing implementation costs incurred in a cloud-based hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This ASU is effective for the Company at the beginning of fiscal 2021, 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 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. 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. 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. The Company does not expect the impact of adoption to be significant. In June 2016, the FASB issued ASU 2016-13 "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which replaces the existing incurred loss impairment methodology with an expected credit loss methodology and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This new standard is effective for the Company at the beginning of fiscal 2021, including interim periods within that reporting period. The Company is currently evaluating the impact of adopting this new accounting standard. 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 adopted the new standard on September 29, 2019 , the first day of fiscal 2020. The Company elected certain other transition options which, among other things, allowed the Company to carry forward its prior conclusions about lease identification and classification. The Company expects adoption of the standard to result in recognition in the consolidated balance sheet of lease liabilities and right-to-use lease assets of approximately $55 million to $65 million as of September 29, 2019 |
Note 3 Balance Sheet and Inco_2
Note 3 Balance Sheet and Income Statement Items (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Balance Sheet and Income Statement Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | As of September 28, September 29, (In thousands) Raw materials $ 898,077 $ 1,139,585 Work-in-process 869 132,803 Finished goods 1,611 101,616 Total $ 900,557 $ 1,374,004 |
Property, Plant and Equipment [Table Text Block] | As of September 28, September 29, (In thousands) Machinery and equipment $ 1,448,812 $ 1,476,903 Land and buildings 639,667 617,258 Leasehold improvements 44,015 56,190 Furniture and fixtures 23,619 23,911 Construction in progress 39,420 47,725 2,195,533 2,221,987 Less: Accumulated depreciation and amortization (1,564,886 ) (1,579,074 ) Property, plant and equipment, net $ 630,647 $ 642,913 |
Schedule of Intangible Assets and Goodwill [Table Text Block] | As of September 28, September 29, (In thousands) Goodwill - beginning of year $ 28,516 $ 59,126 Impairment — (30,610 ) Goodwill - end of year $ 28,516 $ 28,516 |
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | Year ended September 28, September 29, September 30, (In thousands) Foreign exchange gains $ 281 $ 766 $ 4,709 Other, net (11,127 ) 3,798 2,973 Total $ (10,846 ) $ 4,564 $ 7,682 |
Note 4 Revenue Recognition (Tab
Note 4 Revenue Recognition (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Year Ended September 28, September 29, September 30, (In thousands) Segments: IMS $ 6,858,676 $ 5,814,591 $ 5,593,913 CPS 1,375,183 1,295,539 1,274,706 Total $ 8,233,859 $ 7,110,130 $ 6,868,619 End Markets: Communications Networks $ 2,906,575 $ 2,684,609 $ 2,650,850 Industrial, Medical, Automotive and Defense 4,572,006 3,681,788 3,396,130 Cloud Solutions 755,278 743,733 821,639 Total $ 8,233,859 $ 7,110,130 $ 6,868,619 Geography: Americas (1) $ 4,194,652 $ 3,600,967 $ 3,306,538 EMEA 1,051,192 841,961 810,332 APAC 2,988,015 2,667,202 2,751,749 Total $ 8,233,859 $ 7,110,130 $ 6,868,619 (1) Mexico represents approximately 60% of the Americas revenue and the U.S. represents approximately 35% . |
Note 5 Derivative Financial Ins
Note 5 Derivative Financial Instruments (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Financial Instruments [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | As of September 28, 2019 September 29, 2018 Derivatives Designated as Accounting Hedges: Notional amount (in thousands) $106,564 $116,992 Number of contracts 46 54 Derivatives Not Designated as Accounting Hedges: Notional amount (in thousands) $299,127 $356,076 Number of contracts 43 56 |
Note 7 Debt (Tables)
Note 7 Debt (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | As of September 28, September 29, (In thousands) Senior secured notes due 2019 ("Secured Notes") $ — $ 375,000 Term loan due 2023 ("Term Loan"), net of issuance costs 370,409 — Non-interest bearing promissory notes 14,916 17,667 Total long-term debt 385,325 392,667 Less: Current portion of non-interest bearing promissory notes 14,916 3,321 Current portion of long-term debt 23,438 375,000 Long-term debt $ 346,971 $ 14,346 |
Schedule of Maturities of Long-term Debt [Table Text Block] | (In Thousands) 2020 23,438 2021 18,750 2022 18,750 2023 14,062 2024 300,000 $ 375,000 |
Note 9 Commitment and Conting_2
Note 9 Commitment and Contingencies (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lessee, Operating Lease, Disclosure [Table Text Block] | (In thousands) 2020 $ 18,472 2021 15,916 2022 11,368 2023 5,887 2024 3,993 Thereafter 17,071 Total $ 72,707 |
Note 10 Restructuring and Relat
Note 10 Restructuring and Related Activities (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs [Table Text Block] | Year Ended September 28, 2019 September 29, 2018 (In thousands) Severance costs (approximately 2,900 employees) $ 1,900 $ 26,425 Other exit costs (generally recognized as incurred) 3,247 4,984 Total 5,147 31,409 Severance reimbursement — (10,000 ) Total - Q1 FY18 Plan 5,147 21,409 Costs incurred for other plans 8,606 7,737 Total - all plans $ 13,753 $ 29,146 |
Note 11 Income Tax (Tables)
Note 11 Income Tax (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Year Ended September 28, September 29, September 30, (In thousands) Domestic $ 153,696 $ 16,215 $ 128,493 Foreign 91,923 81,324 84,987 Total $ 245,619 $ 97,539 $ 213,480 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year Ended September 28, September 29, September 30, (In thousands) Federal: Current $ 868 $ (122 ) $ (2,524 ) Deferred 45,910 170,994 37,543 State: Current 2,747 32 1,648 Deferred 2,961 (3,672 ) 4,204 Foreign: Current 45,929 20,287 37,076 Deferred 5,689 5,553 (3,300 ) Total provision for income taxes $ 104,104 $ 193,072 $ 74,647 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | As of September 28, 2019 September 29, 2018 (In thousands) Deferred tax assets: U.S. net operating loss carryforwards $ 184,188 $ 218,710 Foreign net operating loss carryforwards 117,403 129,866 Intangibles 19,422 15,099 Accruals not currently deductible 45,117 45,922 Property, plant and equipment 28,710 22,596 Tax credit carryforwards 13,601 13,825 Reserves not currently deductible 15,266 14,420 Stock compensation expense 10,249 13,645 Federal benefit of foreign operations 14,006 7,104 Other 5,889 5,934 Valuation allowance (115,998 ) (113,559 ) Total deferred tax assets 337,853 373,562 Deferred tax liabilities on undistributed earnings (18,690 ) (23,986 ) Deferred tax liabilities on branch operations (34,378 ) (10,906 ) Other deferred tax liabilities (9,456 ) — Net deferred tax assets $ 275,329 $ 338,670 Recorded as: Non-current deferred tax assets $ 279,803 $ 344,124 Non-current deferred tax liabilities (4,474 ) (5,454 ) Net deferred tax assets $ 275,329 $ 338,670 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended September 28, September 29, September 30, Federal tax at statutory tax rate 21.00 % 24.50 % 35.00 % Tax Act impact — 165.16 — Effect of foreign operations 9.30 7.92 1.89 Permanent items 0.40 (1.37 ) 2.10 Discrete charge for restructuring transaction 8.88 — — Discrete benefit of foreign restructuring — — (4.92 ) Other 0.61 0.49 (1.84 ) State income taxes, net of federal benefit 2.19 1.24 2.72 Effective tax rate 42.38 % 197.94 % 34.95 % |
Summary of Income Tax Contingencies [Table Text Block] | Year Ended September 28, September 29, September 30, (In thousands) Balance, beginning of year $ 60,787 $ 67,022 $ 55,773 Increase (decrease) related to prior year tax positions (1,731 ) (5,917 ) 1,670 Increase related to current year tax positions 8,902 8,392 9,741 Settlements (626 ) (7,648 ) — Decrease related to lapse of applicable statute of limitations (655 ) (1,062 ) (162 ) Balance, end of year $ 66,677 $ 60,787 $ 67,022 |
Note 12 Earnings Per Share (Tab
Note 12 Earnings Per Share (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year Ended September 28, September 29, September 30, 2017 (In thousands, except per share amounts) Numerator: Net income (loss) $ 141,515 $ (95,533 ) $ 138,833 Denominator: Weighted average common shares outstanding 69,129 69,833 74,481 Effect of dilutive stock options and restricted stock units 2,549 — 3,647 Denominator for diluted earnings per share 71,678 69,833 78,128 Net income (loss) per share: Basic $ 2.05 $ (1.37 ) $ 1.86 Diluted $ 1.97 $ (1.37 ) $ 1.78 |
Note 13 Stockholders' Equity (T
Note 13 Stockholders' Equity (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | As of September 28, September 29, (In thousands) Foreign currency translation adjustments $ 86,268 $ 87,889 Unrealized holding losses on derivative financial instruments (19,888 ) (335 ) Unrecognized net actuarial loss and unrecognized transition cost for benefit plans (24,121 ) (13,610 ) Total $ 42,259 $ 73,944 |
Note 14 Business Segment, Geo_2
Note 14 Business Segment, Geographic and Customer Information (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Year Ended September 28, 2019 September 29, 2018 September 30, 2017 (In thousands) Gross sales: IMS $ 6,907,129 $ 5,847,958 $ 5,645,499 CPS 1,555,117 1,458,754 1,422,264 Intersegment revenue (228,387 ) (196,582 ) (199,144 ) Net Sales $ 8,233,859 $ 7,110,130 $ 6,868,619 Gross Profit: IMS $ 444,168 $ 352,361 $ 404,350 CPS 156,221 117,835 (1) 127,154 Total 600,389 470,196 531,504 Unallocated items (2) (8,451 ) (6,413 ) (11,593 ) Total $ 591,938 $ 463,783 $ 519,911 Depreciation and amortization: IMS $ 81,997 $ 76,071 $ 74,769 CPS 25,632 30,048 31,109 Total 107,629 106,119 105,878 Unallocated corporate items (3) 9,320 12,701 12,873 Total $ 116,949 $ 118,820 $ 118,751 Capital expenditures (receipt basis): IMS $ 79,943 $ 87,421 $ 106,000 CPS 28,629 28,696 30,512 Total 108,572 116,117 136,512 Unallocated corporate items (3) 3,836 2,480 4,122 Total $ 112,408 $ 118,597 $ 140,634 (1) During the fourth quarter of 2018, the Company recorded a $12.5 million pre-tax adjustment to correct errors that occurred from 2016 through the third quarter of 2018 with respect to the accounting for certain long-term contracts in one of the Company’s CPS divisions. These errors are immaterial to all prior periods. The impact of this out-of-period adjustment on the full year fiscal 2018 was $11 million which is also immaterial to 2018. (2) For purposes of evaluating segment performance, management excludes certain items from its measures of revenue and gross profit. These items consist of stock-based compensation expense, amortization of intangible assets, charges or credits resulting from distressed customers and acquisition-related items. (3) Primarily related to selling, general and administration functions. |
Revenue from External Customers by Geographic Areas [Table Text Block] | Year Ended September 28, September 29, September 30, (In thousands) Net sales: Americas (1) $ 4,194,652 $ 3,600,967 $ 3,306,538 EMEA 1,051,192 841,961 810,332 APAC 2,988,015 2,667,202 2,751,749 Total $ 8,233,859 $ 7,110,130 $ 6,868,619 (1) Mexico represents approximately 60% of the Americas revenue and the U.S. represents approximately 35% . Percentage of net sales represented by ten largest customers 54.2 % 53.0 % 52.9 % Number of customers representing 10% or more of net sales 1 1 2 |
Schedule of Long-lived Assets by Geographic Areas [Table Text Block] | As of September 28, September 29, (In thousands) Property, plant and equipment, net: Americas $ 369,985 $ 385,820 EMEA 72,040 72,051 APAC 188,622 185,042 Total $ 630,647 $ 642,913 |
Note 15 Stock-Based Compensat_2
Note 15 Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Year Ended September 28, September 29, September 30, (In thousands) Stock options $ 1,250 $ 1,779 $ 1,640 Restricted stock units, including performance-based awards 29,594 31,046 36,280 Total $ 30,844 $ 32,825 $ 37,920 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | Year Ended September 28, September 29, September 30, (In thousands) Cost of sales $ 9,757 $ 8,187 $ 8,959 Selling, general & administrative 20,807 25,206 28,169 Research & development 280 (568 ) 792 Total $ 30,844 $ 32,825 $ 37,920 |
Share-based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | Number of Shares Weighted Grant-Date Fair Value Per Share ($) Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value ($) (In thousands) (In thousands) Outstanding as of October 1, 2016 3,998 19.57 1.35 110,183 Granted 1,378 34.11 Vested/Forfeited/Cancelled (2,017 ) 16.20 Outstanding as of September 30, 2017 3,359 27.56 1.51 124,800 Granted 1,102 33.51 Vested/Forfeited/Cancelled (1,158 ) 25.31 Outstanding as of September 29, 2018 3,303 30.33 1.21 97,913 Granted 1,843 25.09 Vested/Forfeited/Cancelled (1,993 ) 29.46 Outstanding as of September 28, 2019 3,153 27.82 1.30 102,720 Expected to vest as of September 28, 2019 2,660 27.99 1.14 86,655 |
Note 16 Employee Benefit Plans
Note 16 Employee Benefit Plans (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | As of September 28, 2019 September 29, 2018 September 30, 2017 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Plan Assets $ 15,421 $ 23,877 $ 16,784 $ 26,114 $ 16,930 $ 26,993 Projected Benefit Obligation 24,221 58,842 22,586 50,930 24,743 48,873 Current Liabilities $ — $ 1,443 $ — $ 1,430 $ — $ 1,117 Non-current liabilities 8,800 33,522 5,802 23,386 7,813 20,763 Underfunded Status $ 8,800 $ 34,965 $ 5,802 $ 24,816 $ 7,813 $ 21,880 |
Note 1 Organization of Sanmin_2
Note 1 Organization of Sanmina Segment Information (Details) | 12 Months Ended |
Sep. 28, 2019 | |
Segment Reporting [Abstract] | |
Revenue percentage generated by reportable segment | 80.00% |
Note 2 Accounts Receivable (Det
Note 2 Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Sep. 29, 2018 |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Accounts receivable allowances | $ 12,481 | $ 12,211 |
Note 2 Accounts Receivable Sale
Note 2 Accounts Receivable Sale Program (Details) | 12 Months Ended |
Sep. 28, 2019 | |
Transfer of Financial Assets Accounted for as Sales [Line Items] | |
Percentage of Face Value of Receivable Sold | 100.00% |
Note 2 Property Plant and Equip
Note 2 Property Plant and Equipment (Details) | 12 Months Ended |
Sep. 28, 2019 | |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Depreciation Methods | straight-line basis over the shorter of the lease term or useful life of the asset |
Minimum | Building | |
Property, Plant and Equipment [Line Items] | |
Useful Life In Years | 20 years |
Minimum | Machinery, Equipment, Furniture and Fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful Life In Years | 3 years |
Maximum | Building | |
Property, Plant and Equipment [Line Items] | |
Useful Life In Years | 40 years |
Maximum | Machinery, Equipment, Furniture and Fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful Life In Years | 15 years |
Note 2 New Accounting Pronounce
Note 2 New Accounting Pronouncement (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Nov. 08, 2019 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | |
Accounting Standard Update [Line Items] | |||||
Contract assets | $ 396,300 | $ 0 | |||
Goodwill impairment | 0 | 30,610 | $ 0 | ||
Goodwill | 28,516 | 28,516 | $ 59,126 | ||
Inventories | $ 900,557 | $ 1,374,004 | |||
Accounting Standards Update 2014-09 [Member] | |||||
Accounting Standard Update [Line Items] | |||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 28,000 | ||||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||
Accounting Standard Update [Line Items] | |||||
Contract assets | 376,000 | ||||
Inventories | $ 350,000 | ||||
Accounting Standards Update 2016-02 [Member] | |||||
Accounting Standard Update [Line Items] | |||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Sep. 29, 2019 | ||||
Forecast [Member] | Accounting Standards Update 2016-02 [Member] | Minimum | |||||
Accounting Standard Update [Line Items] | |||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 55,000 | ||||
Forecast [Member] | Accounting Standards Update 2016-02 [Member] | Maximum | |||||
Accounting Standard Update [Line Items] | |||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 65,000 |
Note 3 Inventory (Details)
Note 3 Inventory (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Sep. 29, 2018 |
Inventory, Net [Abstract] | ||
Raw materials | $ 898,077 | $ 1,139,585 |
Work-in-process | 869 | 132,803 |
Finished goods | 1,611 | 101,616 |
Total | $ 900,557 | $ 1,374,004 |
Note 3 Property, Plant and Equi
Note 3 Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 2,195,533 | $ 2,221,987 | |
Accumulated Depreciation and Amortization | (1,564,886) | (1,579,074) | |
Property, plant and equipment, net | 630,647 | 642,913 | |
Depreciation Expense | 115,000 | 112,000 | $ 111,000 |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 1,448,812 | 1,476,903 | |
Land and buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 639,667 | 617,258 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 44,015 | 56,190 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 23,619 | 23,911 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 39,420 | $ 47,725 |
Note 3 Goodwill (Details)
Note 3 Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Goodwill [Roll Forward] | |||
Goodwill - beginning of year | $ 28,516 | $ 59,126 | |
Impairment | 0 | (30,610) | $ 0 |
Goodwill - end of year | $ 28,516 | $ 28,516 | $ 59,126 |
Note 3 Other Nonoperating Incom
Note 3 Other Nonoperating Income (Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Components of Other Income (Expense), Net, Nonoperating [Line Items] | |||
Other income (expense), net | $ (10,846) | $ 4,564 | $ 7,682 |
Accounts Receivable Sold During The Period | 2,700,000 | 900,000 | |
Foreign exchange gains | |||
Components of Other Income (Expense), Net, Nonoperating [Line Items] | |||
Other income (expense), net | 281 | 766 | 4,709 |
Other, net | |||
Components of Other Income (Expense), Net, Nonoperating [Line Items] | |||
Other income (expense), net | $ (11,127) | $ 3,798 | $ 2,973 |
Note 4 Disaggregation of Revenu
Note 4 Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | ||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 8,233,859 | $ 7,110,130 | $ 6,868,619 | |
Percentage of Net Sales Transferred at Point in Time | 98.00% | |||
Percent of Net Sales Transferred Over Time | 95.00% | |||
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [1] | $ 4,194,652 | $ 3,600,967 | 3,306,538 |
EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,051,192 | 841,961 | 810,332 | |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 2,988,015 | 2,667,202 | 2,751,749 | |
Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of Net Sales to Americas Net Sales | 60.00% | |||
UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of Net Sales to Americas Net Sales | 35.00% | |||
Communications Networks [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 2,906,575 | 2,684,609 | 2,650,850 | |
Industrial, Medical, Automotive and Defense [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 4,572,006 | 3,681,788 | 3,396,130 | |
Cloud Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 755,278 | 743,733 | 821,639 | |
IMS Third Party Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 6,858,676 | 5,814,591 | 5,593,913 | |
CPS Third Party Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 1,375,183 | $ 1,295,539 | $ 1,274,706 | |
[1] | Mexico represents approximately 60% of the Americas revenue and the U.S. represents approximately 35% . |
Note 5 Derivatives (Details)
Note 5 Derivatives (Details) $ in Thousands | 12 Months Ended | |
Sep. 28, 2019USD ($) | Sep. 29, 2018USD ($) | |
Foreign Currency Forward | Derivatives Designated as Accounting Hedges: | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 106,564 | $ 116,992 |
Number of Contracts | 46 | 54 |
Maximum Length of Time Hedged | 12 months | |
Foreign Currency Forward | Derivatives Not Designated as Accounting Hedges: | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 299,127 | $ 356,076 |
Number of Contracts | 43 | 56 |
Maximum Remaining Maturity | 2 months | |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Maturity Date | Dec. 1, 2023 | |
Interest Rate Swap | Derivatives Designated as Accounting Hedges: | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 350,000 | $ 50,000 |
Effective Interest Rate | 4.30% | |
Interest Rate Cash Flow Hedge Liability at Fair Value | $ 20,000 | |
Interest Rate Swap | Derivatives Designated as Accounting Hedges: | Other Current Liabilities [Member] | ||
Derivative [Line Items] | ||
Interest Rate Cash Flow Hedge Liability at Fair Value | $ 4,000 |
Note 5 Fair Value (Details)
Note 5 Fair Value (Details) | 12 Months Ended |
Sep. 28, 2019 | |
Maximum | |
Derivative [Line Items] | |
Cash Equivalents | 10.00% |
Note 6 Concentration of Credit
Note 6 Concentration of Credit Risk (Details) | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Financial Instruments and Concentration of Credit Risk [Abstract] | |||
Number of Customers Representing 10% or More of Net Sales | 1 | 1 | 2 |
Number of Customers Representing 10% Or More of Gross Accounts Receivable | 1 | 1 |
Note 7 Debt Schedule (Details)
Note 7 Debt Schedule (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Sep. 29, 2018 |
Debt Instrument [Line Items] | ||
Non-interest bearing promissory notes | $ 14,916 | $ 17,667 |
Total long-term debt | 385,325 | 392,667 |
Less: Current portion of non-interest bearing promissory notes | 14,916 | 3,321 |
Long-term debt | 346,971 | 14,346 |
Secured Notes due 2019 | ||
Debt Instrument [Line Items] | ||
Senior secured notes due 2019 (Secured Notes) | 0 | 375,000 |
Current portion of long-term debt | 375,000 | |
Delayed Draw Term Loan | ||
Debt Instrument [Line Items] | ||
Loans Payable to Bank | 370,409 | |
Total long-term debt | $ 0 | |
Loans Payable to Bank, Current | $ 23,438 |
Note 7 Debt Detail (Details)
Note 7 Debt Detail (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Apr. 02, 2016 | Sep. 28, 2019 | Sep. 27, 2014 | |
Secured Notes due 2019 | |||
Face value of debt | $ 375 | ||
Maturity Date | Jun. 1, 2019 | ||
Manufacturing Facility [Member] | |||
Face value of debt | $ 15 | ||
Effective Date of Acquisition | Feb. 1, 2016 | ||
Discounted value of notes issued | $ 12 | ||
Promissory Note Description | four-year non-interest bearing promissory note |
Note 7 Line of Credit Facility
Note 7 Line of Credit Facility (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Sep. 28, 2019 | Jun. 03, 2019 | Apr. 05, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | |
Amendment 1 to Amended Cash Flow Revolver [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Maximum Borrowing Capacity | $ 700,000 | $ 700,000 | |||
Additional Credit Line | $ 200,000 | ||||
Amended Cash Flow Revolver [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Maximum Borrowing Capacity | $ 500,000 | ||||
Amount Outstanding | $ 0 | $ 215,000 | |||
Letters of Credit Outstanding, Amount | 8,000 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | 692,000 | ||||
Delayed Draw Term Loan | $ 375,000 | ||||
Foreign Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Maximum Borrowing Capacity | $ 69,000 | ||||
Facility Expiration Date | Nov. 30, 2020 | ||||
Amount Outstanding | $ 0 | ||||
Delayed Draw Term Loan | |||||
Line of Credit Facility [Line Items] | |||||
Facility Expiration Date | Nov. 30, 2023 | ||||
Term Loan Due 2023 | $ 375,000 | ||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 23,438 | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 18,750 | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 18,750 | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 14,062 | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | $ 300,000 | ||||
Quarterly Principal Repayment Percentage for Long-term Debt | 1.25% |
Note 7 Debt Derivatives (Detail
Note 7 Debt Derivatives (Details) - Interest Rate Swap - USD ($) $ in Millions | 12 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Derivative [Line Items] | ||
Maturity Date | Dec. 1, 2023 | |
Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 350 | $ 50 |
Effective Interest Rate | 4.30% | |
Interest Rate Cash Flow Hedge Liability at Fair Value | $ 20 | |
Other Current Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Interest Rate Cash Flow Hedge Liability at Fair Value | $ 4 |
Note 8 Accounts Receivable Sa_2
Note 8 Accounts Receivable Sale Program (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Jan. 16, 2019 | |
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||
Percentage of Face Value of Receivable Sold | 100.00% | ||
Accounts Receivable Sold During The Period | $ 2,700 | $ 900 | |
RPA [Member] | |||
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||
Percentage Sold and Outstanding At Any Time | 30.00% | ||
Accounts Receivable Sold and Outstanding | 241 | 189 | |
Amount Collected But Not Remitted to Financial Institutions | $ 76 | $ 23 | |
Amended Cash Flow Revolver [Member] | RPA [Member] | |||
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||
Percentage Sold and Outstanding At Any Time | 40.00% |
Note 9 Loss Contingency (Detail
Note 9 Loss Contingency (Details) - USD ($) $ in Millions | Sep. 28, 2019 | Sep. 29, 2018 |
Loss Contingency [Abstract] | ||
Loss Contingency Accrual | $ 36 | $ 35 |
Note 9 Commitment (Details)
Note 9 Commitment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Operating Leased Assets [Line Items] | |||
2020 | $ 18,472 | ||
2021 | 15,916 | ||
2022 | 11,368 | ||
2023 | 5,887 | ||
2024 | 3,993 | ||
Thereafter | 17,071 | ||
Total | 72,707 | ||
Operating Leases, Rent Expense, Net | $ 26,000 | $ 27,000 | $ 24,000 |
Note 10 Restructuring and Rel_2
Note 10 Restructuring and Related Activities (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018USD ($) | Sep. 28, 2019USD ($) | Sep. 29, 2018USD ($) | Sep. 30, 2017USD ($) | Oct. 28, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Current | $ 5,000 | $ 24,000 | |||
Restructuring costs | 13,753 | 29,146 | $ 1,339 | ||
IMS | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Expense (Recovery), net | (4,000) | ||||
Restructuring costs | 12,000 | ||||
CPS [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 18,000 | 17,000 | |||
Q1 FY18 Plan [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Expense (Recovery) prior to reimbursement | $ 5,147 | 31,409 | |||
Initiation Date | Dec. 30, 2017 | ||||
Completion Date | Dec. 31, 2019 | ||||
Expected Number of Positions Eliminated | 2,900 | ||||
Severance reimbursement | $ (10,000) | $ 0 | (10,000) | ||
Other Receivables | 5,000 | ||||
Restructuring costs | 5,147 | 21,409 | |||
Q1 FY18 Plan [Member] | Employee Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 1,900 | 26,425 | |||
Q1 FY18 Plan [Member] | Other Restructuring [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 3,247 | 4,984 | |||
Other plans [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | $ 8,606 | $ 7,737 | |||
Minimum | Subsequent Event [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | $ 10,000 | ||||
Maximum | Subsequent Event [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | $ 20,000 |
Note 11 Income (Loss) Before In
Note 11 Income (Loss) Before Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 153,696 | $ 16,215 | $ 128,493 |
Foreign | 91,923 | 81,324 | 84,987 |
Income before income taxes | 245,619 | 97,539 | 213,480 |
Federal: | |||
Current | 868 | (122) | (2,524) |
Deferred | 45,910 | 170,994 | 37,543 |
State: | |||
Current | 2,747 | 32 | 1,648 |
Deferred | 2,961 | (3,672) | 4,204 |
Foreign: | |||
Current | 45,929 | 20,287 | 37,076 |
Deferred | 5,689 | 5,553 | (3,300) |
Total provision for income taxes | $ 104,104 | $ 193,072 | $ 74,647 |
Note 11 Deferred Tax Assets and
Note 11 Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Sep. 29, 2018 |
Deferred tax assets: | ||
U.S. net operating loss carryforwards | $ 184,188 | $ 218,710 |
Foreign net operating loss carryforwards | 117,403 | 129,866 |
Intangibles | 19,422 | 15,099 |
Accruals not currently deductible | 45,117 | 45,922 |
Property, plant and equipment | 28,710 | 22,596 |
Tax credit carryforwards | 13,601 | 13,825 |
Reserves not currently deductible | 15,266 | 14,420 |
Stock compensation expense | 10,249 | 13,645 |
Federal benefit of foreign operations | 14,006 | 7,104 |
Other | 5,889 | 5,934 |
Valuation allowance | (115,998) | (113,559) |
Total deferred tax assets | 337,853 | 373,562 |
Deferred tax liabilities on undistributed earnings | (18,690) | (23,986) |
Deferred tax liabilities on branch operations | (34,378) | (10,906) |
Other deferred tax liabilities | (9,456) | 0 |
Recorded as: | ||
Non-current deferred tax assets | 279,803 | 344,124 |
Non-current deferred tax liabilities | (4,474) | (5,454) |
Net deferred tax assets | $ 275,329 | $ 338,670 |
Note 11 Effective Tax Rate (Det
Note 11 Effective Tax Rate (Details) | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Federal tax at statutory tax rate | 21.00% | 24.50% | 35.00% |
Tax Act impact | 0.00% | 165.16% | 0.00% |
Effect of foreign operations | 9.30% | 7.92% | 1.89% |
Permanent items | 0.40% | (1.37%) | 2.10% |
Discrete charge for restructuring transaction | 8.88% | 0.00% | 0.00% |
Discrete benefit of foreign restructuring | 0.00% | 0.00% | (4.92%) |
Other | 0.61% | 0.49% | (1.84%) |
State income taxes, net of federal benefit | 2.19% | 1.24% | 2.72% |
Effective tax rate | 42.38% | 197.94% | 34.95% |
Note 11 Income Tax Detail (Deta
Note 11 Income Tax Detail (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Operating Loss Carryforwards [Line Items] | ||
Undistributed Earnings of Foreign Subsidiaries | $ 420 | |
Excess Tax Benefit | $ 124 | |
Domestic Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards, Expiration Date | Sep. 30, 2035 | |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | $ 770 | |
State | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards, Valuation Allowance | 15 | |
Operating Loss Carryforwards | 407 | |
Foreign | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | $ 520 |
Note 11 Unrecognized Tax Benefi
Note 11 Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Income Tax Uncertainties [Abstract] | |||
Balance, beginning of year | $ 60,787 | $ 67,022 | $ 55,773 |
Increase related to prior year tax position | 1,670 | ||
Decrease related to prior year tax position | (1,731) | (5,917) | |
Increase related to current year tax positions | 8,902 | 8,392 | 9,741 |
Settlements | (626) | (7,648) | 0 |
Decrease related to lapse of applicable statute of limitations | (655) | (1,062) | (162) |
Balance, end of year | 66,677 | 60,787 | 67,022 |
Unrecognized Tax Benefits, Reserve for Penalties and Interest | 39,000 | 38,000 | |
Unrecognized Tax Benefits, Penalties and Interest accrued during the year | $ 1,000 | $ 3,000 | $ 4,000 |
Note 11 Income Tax Disclosure (
Note 11 Income Tax Disclosure (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 30, 2017 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure Table [Line Items] | ||||
Federal tax at statutory tax rate | 21.00% | 24.50% | 35.00% | |
Provision for income taxes | $ 104,104 | $ 193,072 | $ 74,647 | |
Effective Income Tax Rate Reconciliation, Percent | 42.38% | 197.94% | 34.95% | |
Deferred income taxes | $ 22,000 | |||
US Tax Cuts and Jobs Act (H.R. 1) [Member] | ||||
Income Tax Disclosure Table [Line Items] | ||||
Accumulated unremitted earnings tax rate for cash repatriation | 15.50% | |||
Accumulated unremitted earnings tax rate for non-liquid asset | 8.00% | |||
Repatriation of Foreign Earnings, Amount | $ 0 | |||
Tax Benefit from Territorial Tax Conversion | 14,000 | |||
Provision for income taxes | 161,000 | |||
Adjustment of Deferred Tax (Asset) Liability | $ 175,000 | |||
Maximum | ||||
Income Tax Disclosure Table [Line Items] | ||||
Federal tax at statutory tax rate | 35.00% | |||
Minimum | US Tax Cuts and Jobs Act (H.R. 1) [Member] | ||||
Income Tax Disclosure Table [Line Items] | ||||
Federal tax at statutory tax rate | 21.00% |
Note 12 Earnings Per Share (Det
Note 12 Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Line Items] | |||
Net income (loss) | $ 141,515 | $ (95,533) | $ 138,833 |
Weighted average shares used in computing per share amount: | |||
Weighted average common shares outstanding | 69,129 | 69,833 | 74,481 |
Effect of dilutive stock options and restricted stock units | 2,549 | 0 | 3,647 |
Denominator for diluted earnings per share | 71,678 | 69,833 | 78,128 |
Net income (loss) per share: | |||
Basic | $ 2.05 | $ (1.37) | $ 1.86 |
Diluted | $ 1.97 | $ (1.37) | $ 1.78 |
Note 13 Stockholders' Equity (D
Note 13 Stockholders' Equity (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Nov. 08, 2019 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | Mar. 11, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common Stock, Capital Shares Reserved for Future Issuance | 9,500,000 | ||||
Stock options and unvested restricted stock units outstanding | 5,000,000 | ||||
Number of Shares Available for Future Grant | 4,500,000 | ||||
Stock Repurchase Program, Authorized Amount | $ 200 | ||||
Stock Repurchased During Period, Shares | 300,000 | 5,000,000 | 4,300,000 | ||
Stock Repurchased During Period, Value | $ 7 | $ 146 | $ 160 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 101 | ||||
Shares Issued During Three Year Period | 7,000,000 | ||||
Shares Repurchased During Three Year Period | 10,000,000 | ||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 207,000 | 334,000 | 549,000 | ||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | $ 6 | $ 12 | $ 17 | ||
2019 Stock Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common Stock, Capital Shares Reserved for Future Issuance | 4,000,000 | ||||
Stock Plan Expiration Date | 2028-12 | ||||
Subsequent Event [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock Repurchase Program Additional Authorized Amount | $ 200 | ||||
Stock Repurchase Program, Authorized Amount | $ 301 |
Note 13 Accumulated Other Compr
Note 13 Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Sep. 29, 2018 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Foreign currency translation adjustments | $ 86,268 | $ 87,889 |
Unrealized holding losses on derivative financial instruments | (19,888) | (335) |
Unrecognized net actuarial loss and unrecognized transition cost for benefit plans | (24,121) | (13,610) |
Total | $ 42,259 | $ 73,944 |
Note 14 Revenue and Gross Profi
Note 14 Revenue and Gross Profit by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |||
Segment Information [Line Items] | |||||
Net sales | $ 8,233,859 | $ 7,110,130 | $ 6,868,619 | ||
Gross profit | 591,938 | 463,783 | 519,911 | ||
Depreciation and amortization | $ 116,949 | 118,820 | 118,751 | ||
Revenue percentage generated by reportable segment | 80.00% | ||||
Property, Plant and Equipment, Additions | $ 112,408 | 118,597 | 140,634 | ||
IMS | |||||
Segment Information [Line Items] | |||||
Number of reportable segments | 1 | ||||
Operating segments | |||||
Segment Information [Line Items] | |||||
Gross profit | $ 600,389 | 470,196 | 531,504 | ||
Depreciation and amortization | 107,629 | 106,119 | 105,878 | ||
Property, Plant and Equipment, Additions | 108,572 | 116,117 | 136,512 | ||
Operating segments | IMS | |||||
Segment Information [Line Items] | |||||
Net sales | 6,907,129 | 5,847,958 | 5,645,499 | ||
Gross profit | 444,168 | 352,361 | 404,350 | ||
Depreciation and amortization | 81,997 | 76,071 | 74,769 | ||
Property, Plant and Equipment, Additions | 79,943 | 87,421 | 106,000 | ||
Operating segments | CPS | |||||
Segment Information [Line Items] | |||||
Net sales | 1,555,117 | 1,458,754 | 1,422,264 | ||
Gross profit | 156,221 | 117,835 | [1] | 127,154 | |
Depreciation and amortization | 25,632 | 30,048 | 31,109 | ||
Property, Plant and Equipment, Additions | 28,629 | 28,696 | 30,512 | ||
Segment reconciling items | |||||
Segment Information [Line Items] | |||||
Gross profit | [2] | (8,451) | (6,413) | (11,593) | |
Unallocated corporate items | |||||
Segment Information [Line Items] | |||||
Depreciation and amortization | [3] | 9,320 | 12,701 | 12,873 | |
Property, Plant and Equipment, Additions | [3] | 3,836 | 2,480 | 4,122 | |
Intersegment eliminations | |||||
Segment Information [Line Items] | |||||
Net sales | $ (228,387) | $ (196,582) | $ (199,144) | ||
[1] | During the fourth quarter of 2018, the Company recorded a $12.5 million pre-tax adjustment to correct errors that occurred from 2016 through the third quarter of 2018 with respect to the accounting for certain long-term contracts in one of the Company’s CPS divisions. These errors are immaterial to all prior periods. The impact of this out-of-period adjustment on the full year fiscal 2018 was $11 million which is also immaterial to 2018. | ||||
[2] | For purposes of evaluating segment performance, management excludes certain items from its measures of revenue and gross profit. These items consist of stock-based compensation expense, amortization of intangible assets, charges or credits resulting from distressed customers and acquisition-related items. | ||||
[3] | Primarily related to selling, general and administration functions. |
Note 14 Prior Period Adjustment
Note 14 Prior Period Adjustments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Sep. 29, 2018 | Sep. 29, 2018 | |
Prior Period Adjustment [Abstract] | ||
Error Correction | $ 12.5 | |
Quantify Prior Period Misstatements Corrected in Current Year Financial Statements | $ 11 |
Note 14 Net Sales Information b
Note 14 Net Sales Information by Geographic Segment (Details) $ in Thousands | 12 Months Ended | |||
Sep. 28, 2019USD ($) | Sep. 29, 2018USD ($) | Sep. 30, 2017USD ($) | ||
Revenue from External Customers [Line Items] | ||||
Percentage of Net Sales Represented by Ten Largest Customers | 54.20% | 53.00% | 52.90% | |
Number of Customers Representing 10% or More of Net Sales | 1 | 1 | 2 | |
Net Sales | $ 8,233,859 | $ 7,110,130 | $ 6,868,619 | |
Americas | ||||
Revenue from External Customers [Line Items] | ||||
Net Sales | [1] | $ 4,194,652 | 3,600,967 | 3,306,538 |
UNITED STATES | ||||
Revenue from External Customers [Line Items] | ||||
Percentage of Net Sales to Americas Net Sales | 35.00% | |||
Mexico | ||||
Revenue from External Customers [Line Items] | ||||
Percentage of Net Sales to Americas Net Sales | 60.00% | |||
EMEA | ||||
Revenue from External Customers [Line Items] | ||||
Net Sales | $ 1,051,192 | 841,961 | 810,332 | |
Asia Pacific | ||||
Revenue from External Customers [Line Items] | ||||
Net Sales | $ 2,988,015 | $ 2,667,202 | $ 2,751,749 | |
[1] | Mexico represents approximately 60% of the Americas revenue and the U.S. represents approximately 35% . |
Note 14 Long-lived Assets Infor
Note 14 Long-lived Assets Information by Geographic Segment (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Sep. 29, 2018 |
By Geographic Areas, Long-lived Assets [Line Items] | ||
Property, plant and equipment, net | $ 630,647 | $ 642,913 |
Americas | ||
By Geographic Areas, Long-lived Assets [Line Items] | ||
Property, plant and equipment, net | 369,985 | 385,820 |
EMEA | ||
By Geographic Areas, Long-lived Assets [Line Items] | ||
Property, plant and equipment, net | 72,040 | 72,051 |
Asia Pacific | ||
By Geographic Areas, Long-lived Assets [Line Items] | ||
Property, plant and equipment, net | $ 188,622 | $ 185,042 |
Note 15 Share-Based Compensatio
Note 15 Share-Based Compensation Arrangements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Share-based Compensation [Line Items] | |||
Share-based Payment Arrangement, Noncash Expense | $ 30,844 | $ 32,825 | $ 37,920 |
Stock options | |||
Share-based Compensation [Line Items] | |||
Share-based Payment Arrangement, Noncash Expense | 1,250 | 1,779 | 1,640 |
Restricted stock units, including performance-based awards | |||
Share-based Compensation [Line Items] | |||
Share-based Payment Arrangement, Noncash Expense | 29,594 | 31,046 | 36,280 |
Cost of sales | |||
Share-based Compensation [Line Items] | |||
Share-based Payment Arrangement, Expense | 9,757 | 8,187 | 8,959 |
Selling, general & administrative | |||
Share-based Compensation [Line Items] | |||
Share-based Payment Arrangement, Expense | 20,807 | 25,206 | 28,169 |
Research & development | |||
Share-based Compensation [Line Items] | |||
Share-based Payment Arrangement, Expense | $ 280 | $ (568) | $ 792 |
Note 15 Fair Value and Intrinsi
Note 15 Fair Value and Intrinsic Value (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
RSU Vested in Period, Fair Value | $ 29 | $ 36 | $ 53 |
Note 15 Restricted Stock Rollfo
Note 15 Restricted Stock Rollforward (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | Oct. 03, 2015 | Oct. 01, 2016 | |
Awards, Nonvested, Number of Shares [Roll Forward] | |||||
Beginning outstanding | 3,303 | 3,359 | 3,998 | ||
Granted | 1,843 | 1,102 | 1,378 | ||
Vested/Cancelled | (1,993) | (1,158) | (2,017) | ||
Ending outstanding | 3,153 | 3,303 | 3,359 | ||
Expected to vest | 2,660 | ||||
Weighted Average Grant Date Fair Value Restricted Stock [Abstract] | |||||
Beginning outstanding | $ 30.33 | $ 27.56 | $ 19.57 | ||
Granted | 25.09 | 33.51 | 34.11 | ||
Vested/Cancelled | 29.46 | 25.31 | 16.20 | ||
Ending outstanding | 27.82 | $ 30.33 | $ 27.56 | ||
Expected to vest | $ 27.99 | ||||
Weighted Average Remaining Contractual Term [Abstract] | |||||
Outstanding | 1 year 3 months 18 days | 1 year 2 months 15 days | 1 year 6 months 3 days | 1 year 4 months 6 days | |
Expected to vest | 1 year 1 month 20 days | ||||
Restricted Stock Non vested Aggregate Intrinsic Value [Abstract] | |||||
Outstanding | $ 102,720 | $ 97,913 | $ 124,800 | $ 110,183 | |
Expected to vest | $ 86,655 |
Note 15 Unrecognized Stock-base
Note 15 Unrecognized Stock-based Compensation Expense (Details) $ in Millions | 12 Months Ended |
Sep. 28, 2019USD ($) | |
Restricted stock units | |
Unrecognized Compensation Cost [Line Items] | |
Unrecognized Compensation Expense | $ 34 |
Weighted Average Period of Recognition (Years) | 1 year 2 months 12 days |
Performance Shares | Vesting not probable | |
Unrecognized Compensation Cost [Line Items] | |
Unrecognized Compensation Expense | $ 7 |
Note 16 Employee Benefit Plan_2
Note 16 Employee Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Defined Contribution Plan [Abstract] | |||
Amount Deferred Under Company Sponsored Deferred Compensation Plans | $ 4,000 | $ 5,000 | |
UNITED STATES | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation | 24,221 | 22,586 | $ 24,743 |
Underfunded status | 8,800 | 5,802 | 7,813 |
Current liabilities | 0 | 0 | 0 |
Non-current liabilities | 8,800 | 5,802 | 7,813 |
Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation | 58,842 | 50,930 | 48,873 |
Underfunded status | 34,965 | 24,816 | 21,880 |
Current liabilities | 1,443 | 1,430 | 1,117 |
Non-current liabilities | 33,522 | 23,386 | 20,763 |
Fair Value, Measurements, Recurring | |||
Defined Contribution Plan [Abstract] | |||
Deferred Compensation Plan Assets | 36,000 | 35,000 | |
Deferred Compensation Liability | 36,000 | 35,000 | |
Level 1 | UNITED STATES | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 15,421 | 16,784 | 16,930 |
Level 1 | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | $ 23,877 | $ 26,114 | $ 26,993 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Details) - Allowance for Accounts Receivables - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 12,211 | $ 14,334 | $ 15,081 |
Charged to Operations | 270 | (2,123) | (747) |
Charges Utilized | 0 | 0 | 0 |
Balance at End of Period | $ 12,481 | $ 12,211 | $ 14,334 |