Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Oct. 03, 2020 | Nov. 16, 2020 | Apr. 04, 2020 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Oct. 3, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-14423 | ||
Entity Registrant Name | PLEXUS CORP. | ||
Entity Incorporation, State or Country Code | WI | ||
Entity Tax Identification Number | 39-1344447 | ||
Entity Address, Address Line One | One Plexus Way | ||
Entity Address, City or Town | Neenah | ||
Entity Address, State or Province | WI | ||
Entity Address, Postal Zip Code | 54957 | ||
City Area Code | 920 | ||
Local Phone Number | 969-6000 | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | PLXS | ||
Security Exchange Name | NASDAQ | ||
Entity Well-Known Season 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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.4 | ||
Entity Common Stock, Shares Outstanding | 28,823,390 | ||
Documents Incorporated by Reference [Text Block] | Parts of Registrant’s Proxy Statement for the 2021 Annual Meeting of Shareholders are incorporated by reference into Part III of this Report. | ||
Entity Central Index Key | 0000785786 | ||
Current Fiscal Year End Date | --10-03 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Income Statement [Abstract] | |||
Net sales | $ 3,390,394 | $ 3,164,434 | $ 2,873,508 |
Cost of sales | 3,077,688 | 2,872,596 | 2,615,908 |
Gross profit | 312,706 | 291,838 | 257,600 |
Selling and administrative expenses | 153,331 | 148,105 | 139,317 |
Restructuring and impairment charges | 6,003 | 1,678 | 0 |
Operating income | 153,372 | 142,055 | 118,283 |
Other income (expense): | |||
Interest expense | (16,162) | (12,853) | (12,226) |
Interest income | 1,878 | 1,949 | 4,696 |
Miscellaneous, net | (3,691) | (5,196) | (3,143) |
Income before income taxes | 135,397 | 125,955 | 107,610 |
Income tax expense | 17,918 | 17,339 | 94,570 |
Net income | $ 117,479 | $ 108,616 | $ 13,040 |
Earnings per share: | |||
Basic (in dollars per share) | $ 4.02 | $ 3.59 | $ 0.40 |
Diluted (in dollars per share) | $ 3.93 | $ 3.50 | $ 0.38 |
Weighted average shares outstanding: | |||
Basic (in shares) | 29,195 | 30,271 | 33,003 |
Diluted (in shares) | 29,916 | 31,074 | 33,919 |
Other comprehensive income (loss): | |||
Derivative instrument fair value adjustment | $ 1,831 | $ 1,050 | $ (3,942) |
Foreign currency translation adjustments | 10,894 | (6,855) | (3,058) |
Other comprehensive income (loss) | 12,725 | (5,805) | (7,000) |
Total comprehensive income | $ 130,204 | $ 102,811 | $ 6,040 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) shares in Thousands, $ in Thousands | Oct. 03, 2020 | Sep. 28, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 385,807 | $ 223,761 |
Restricted cash | 2,087 | 2,493 |
Accounts receivable, net of allowances of $3,597 and $1,537, respectively | 482,086 | 488,284 |
Contract assets | 113,946 | 90,841 |
Inventories, net | 763,461 | 700,938 |
Prepaid expenses and other | 31,772 | 31,974 |
Total current assets | 1,779,159 | 1,538,291 |
Property, plant and equipment, net | 383,661 | 384,224 |
Operating lease right-of-use assets | 69,879 | 0 |
Deferred income taxes | 21,422 | 13,654 |
Other non-current assets | 35,727 | 64,714 |
Total non-current assets | 510,689 | 462,592 |
Total assets | 2,289,848 | 2,000,883 |
Current liabilities: | ||
Current portion of long-term debt and finance lease obligations | 146,829 | 100,702 |
Accounts payable | 516,297 | 444,944 |
Customer deposits | 159,972 | 139,841 |
Accrued salaries and wages | 76,927 | 73,555 |
Other accrued liabilities | 103,492 | 106,461 |
Total current liabilities | 1,003,517 | 865,503 |
Long-term debt and finance lease obligations, net of current portion | 187,975 | 187,278 |
Long-term accrued income taxes payable | 53,899 | 59,572 |
Long-term operating lease liabilities | 36,779 | 0 |
Deferred income taxes payable | 6,433 | 5,305 |
Other liabilities | 23,765 | 17,649 |
Total non-current liabilities | 308,851 | 269,804 |
Total liabilities | 1,312,368 | 1,135,307 |
Commitments and contingencies | ||
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Shareholders’ equity: | ||
Preferred stock, $0.01 par value, 5,000 shares authorized, none issued or outstanding | $ 0 | $ 0 |
Common stock, $0.01 par value, 200,000 shares authorized, 53,525 and 52,917 shares issued, respectively, and 29,002 and 29,004 shares outstanding, respectively | 535 | 529 |
Additional paid-in capital | 621,564 | 597,401 |
Common stock held in treasury, at cost, 24,523 and 23,913 shares, respectively | (934,639) | (893,247) |
Retained earnings | 1,295,079 | 1,178,677 |
Accumulated other comprehensive loss | (5,059) | (17,784) |
Total shareholders’ equity | 977,480 | 865,576 |
Total liabilities and shareholders’ equity | $ 2,289,848 | $ 2,000,883 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Oct. 03, 2020 | Sep. 28, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 3,597 | $ 1,537 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 53,525,000 | 52,917,000 |
Common stock, shares outstanding (in shares) | 29,002,000 | 29,004,000 |
Treasury stock, shares (in shares) | 24,523,000 | 23,913,000 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Treasury stock | Retained earnings | Retained earningsCumulative Effect, Period of Adoption, Adjustment | Accumulated other comprehensive loss | |
Beginning of period (in shares) at Sep. 30, 2017 | 33,464,000 | |||||||
Exercise of stock options and vesting of other stock awards | 633,000 | |||||||
Treasury shares purchased (in shares) | (2,259,000) | |||||||
End of period (in shares) at Sep. 29, 2018 | 31,838,000 | |||||||
Beginning of period at Sep. 30, 2017 | $ 1,025,939 | $ 519 | $ 555,297 | $ (574,104) | $ 1,049,206 | $ (4,979) | ||
Exercise of stock options and vesting of other stock awards | 7 | |||||||
Stock-based compensation expense | 17,981 | |||||||
Exercise of stock options and vesting of other stock awards, including tax benefits | 8,210 | |||||||
Treasury shares purchased | (137,034) | |||||||
Net income | 13,040 | 13,040 | ||||||
Other comprehensive income (loss) | (7,000) | (7,000) | ||||||
End of period at Sep. 29, 2018 | $ 921,143 | $ 526 | 581,488 | (711,138) | 1,062,246 | (11,979) | ||
Cumulative effect adjustment for adoption of new accounting pronouncements (1) | [1] | $ 7,815 | ||||||
Exercise of stock options and vesting of other stock awards | 350,000 | |||||||
Treasury shares purchased (in shares) | (3,184,000) | |||||||
End of period (in shares) at Sep. 28, 2019 | 29,004,000 | 29,004,000 | ||||||
Exercise of stock options and vesting of other stock awards | $ 3 | |||||||
Stock-based compensation expense | 21,335 | |||||||
Exercise of stock options and vesting of other stock awards, including tax benefits | (5,422) | |||||||
Treasury shares purchased | (182,109) | |||||||
Net income | $ 108,616 | 108,616 | ||||||
Other comprehensive income (loss) | (5,805) | (5,805) | ||||||
End of period at Sep. 28, 2019 | $ 865,576 | $ 529 | 597,401 | (893,247) | 1,178,677 | (17,784) | ||
Cumulative effect adjustment for adoption of new accounting pronouncements (1) | [1] | $ (1,077) | ||||||
Exercise of stock options and vesting of other stock awards | 608,000 | |||||||
Treasury shares purchased (in shares) | (610,000) | |||||||
End of period (in shares) at Oct. 03, 2020 | 29,002,000 | 29,002,000 | ||||||
Exercise of stock options and vesting of other stock awards | $ 6 | |||||||
Stock-based compensation expense | 24,280 | |||||||
Exercise of stock options and vesting of other stock awards, including tax benefits | (117) | |||||||
Treasury shares purchased | (41,392) | |||||||
Net income | $ 117,479 | 117,479 | ||||||
Other comprehensive income (loss) | 12,725 | 12,725 | ||||||
End of period at Oct. 03, 2020 | $ 977,480 | $ 535 | $ 621,564 | $ (934,639) | $ 1,295,079 | $ (5,059) | ||
[1] | See Note 1, "Description of Business and Significant Accounting Policies," for a discussion of recently adopted accounting pronouncements. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Cash flows from operating activities | |||
Net income | $ 117,479 | $ 108,616 | $ 13,040 |
Adjustments to reconcile net income to net cash flows from operating activities: | |||
Depreciation and amortization | 56,690 | 52,206 | 48,296 |
Deferred income taxes | (3,583) | (9,764) | 20,388 |
Share-based compensation expense | 24,280 | 21,335 | 17,981 |
Provision for allowance for doubtful accounts | 2,405 | 0 | 0 |
Asset impairment charges | 3,052 | 0 | 0 |
Other, net | 1,358 | 204 | (196) |
Changes in operating assets and liabilities, excluding impacts of acquisition: | |||
Accounts receivable | 8,796 | (96,694) | (30,706) |
Contract assets | (22,488) | (14,526) | 0 |
Inventories | (56,420) | 18,798 | (140,615) |
Other current and noncurrent assets | 3,343 | (3,728) | (19,168) |
Accrued income taxes payable | (9,570) | 4,125 | 53,504 |
Accounts payable | 65,097 | (56,724) | 93,342 |
Customer deposits | 18,864 | 49,652 | (16,713) |
Other current and noncurrent liabilities | 1,065 | 41,800 | 27,678 |
Cash flows provided by operating activities | 210,368 | 115,300 | 66,831 |
Cash flows from investing activities | |||
Payments for property, plant and equipment | (50,088) | (90,600) | (62,780) |
Proceeds from sales of property, plant and equipment | 437 | 261 | 538 |
Business acquisition | 0 | 1,180 | |
Business acquisition | (12,379) | ||
Other, net | (200) | (200) | 0 |
Cash flows used in investing activities | (49,851) | (89,359) | (74,621) |
Cash flows from financing activities | |||
Borrowings under debt agreements | 679,042 | 1,084,500 | 834,341 |
Payments on debt and finance lease obligations | (638,298) | (993,588) | (970,258) |
Debt issuance costs | (699) | (603) | (729) |
Repurchases of common stock | (41,392) | (182,109) | (137,034) |
Proceeds from exercise of stock options | 12,827 | 2,614 | 13,699 |
Payments related to tax withholding for share-based compensation | (12,938) | (8,033) | (5,482) |
Cash flows used in financing activities | (1,458) | (97,219) | (265,463) |
Effect of exchange rate changes on cash and cash equivalents | 2,581 | (154) | 1,685 |
Net increase (decrease) in cash and cash equivalents and restricted cash | 161,640 | (71,432) | (271,568) |
Cash and cash equivalents and restricted cash: | |||
Beginning of period | 226,254 | 297,686 | 569,254 |
End of period | 387,894 | 226,254 | 297,686 |
Supplemental disclosure information: | |||
Interest Paid, net | 14,885 | 15,701 | 12,030 |
Income taxes paid | $ 31,458 | $ 26,277 | $ 18,891 |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 12 Months Ended |
Oct. 03, 2020 | |
Accounting Policies [Abstract] | |
Description of Business and Significant Accounting Policies | Description of Business and Significant Accounting Policies Description of Business: Plexus Corp. and its subsidiaries (together "Plexus," the "Company," or "we") participate in the Electronic Manufacturing Services ("EMS") industry. We partner with our customers to create the products that build a better world. Plexus has been partnering with companies to transform concepts into branded products and deliver them to customers in the Healthcare/Life Sciences, Industrial/Commercial, Aerospace/Defense and Communications market sectors. Plexus is headquartered in Neenah, Wisconsin and has operations in the Americas ("AMER"), Europe, Middle East, and Africa ("EMEA") and Asia-Pacific ("APAC") regions. Significant Accounting Policies Consolidation Principles and Basis of Presentation: The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") and include the accounts of Plexus Corp. and its subsidiaries. All intercompany transactions have been eliminated. Certain prior period amounts have been reclassified to conform to the current period presentation. The Company’s fiscal year ends on the Saturday closest to September 30. The Company also uses a "4-4-5" weekly accounting system for the interim periods in each quarter. Each quarter, therefore, ends on a Saturday at the end of the 4-4-5 period. Periodically, an additional week must be added to the fiscal year to re-align with the Saturday closest to September 30. Fiscal 2020 includes 53 weeks; therefore the first quarter of fiscal 2020 included 14 weeks while all other fiscal quarters presented herein included 13 weeks. Fiscal 2019 and fiscal 2018 each included 52 weeks. The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and notes thereto. The full extent to which the COVID-19 outbreak will impact the Company's business and operating results will depend on future developments that are highly uncertain and cannot be accurately predicted. The Company has considered information available as of the date of issuance of these financial statements and is not aware of any specific events or circumstances that would require an update to its estimates or judgments, or a revision of the carrying value of its assets or liabilities. These estimates may change as new events occur and additional information becomes available. Actual results could differ materially from these estimates. Cash and Cash Equivalents and Restricted Cash: Cash equivalents include short-term highly liquid investments and are classified as Level 1 in the fair value hierarchy described below. Restricted cash represents cash received from customers to settle invoices sold under accounts receivable purchase agreements that is contractually required to be set aside. The restrictions will lapse when the cash is remitted to the purchaser of the receivables. Restricted cash is also classified as Level 1 in the fair value hierarchy described below. As of October 3, 2020 and September 28, 2019, cash and cash equivalents and restricted cash consisted of the following (in thousands): 2020 2019 Cash $ 121,320 $ 85,688 Money market demand accounts and other 264,487 138,073 Restricted cash 2,087 2,493 Total cash and cash equivalents and restricted cash $ 387,894 $ 226,254 Inventories: Inventories are valued at the lower of cost or market. Cost is determined by the first-in, first-out ("FIFO") method. Valuing inventories at the lower of cost or market requires the use of estimates and judgment. Customers may cancel their orders, change production quantities or delay production for a number of reasons that are beyond the Company’s control. Any of these, or certain additional actions, could impact the valuation of inventory. Any actions taken by the Company’s customers that could impact the value of its inventory are considered when determining the lower of cost or market valuations. In certain instances, in accordance with contractual terms, the Company receives customer deposits to offset obsolete and excess inventory risks. Property, Plant and Equipment and Depreciation: Property, plant and equipment is stated at cost and depreciated using the straight-line method over the estimated useful lives of the respective assets. Estimated useful lives for major classes of depreciable assets are generally as follows: Buildings and improvements 5-39 years Machinery and equipment 3-7 years Computer hardware and software 3-10 years Certain facilities and equipment held under finance leases are classified as property, plant and equipment and amortized using the straight-line method over the term of the lease and the related obligations are recorded as liabilities. Amortization of assets held under finance leases is included in depreciation expense (see Note 3, "Property, Plant and Equipment") and the financing component of the lease payments is classified as interest expense. Maintenance and repairs are expensed as incurred. The Company capitalizes significant costs incurred in the acquisition or development of software for internal use. This includes costs of the software, consulting services and compensation costs for employees directly involved in developing internal use computer software. Impairment of Long-Lived Assets: Long-lived assets, including property, plant and equipment, operating lease right-of-use assets and intangible assets with finite lives are reviewed for impairment and written down to fair value when facts and circumstances indicate that the carrying value of long-lived assets or asset groups may not be recoverable through estimated future undiscounted cash flows. If an impairment has occurred, a write-down to estimated fair value is made and the impairment loss is recognized as a charge against current operations. The impairment analysis is based on management’s assumptions, including future revenue and cash flow projections. Circumstances that may lead to impairment of property, plant and equipment and intangible assets with finite lives include reduced expectations for future performance or industry demand and possible further restructurings, among others. Revenue Recognition: Revenue is recognized over time for arrangements with customers for which: (i) the Company's performance does not create an asset with an alternative use to the Company, and (ii) the Company has an enforceable right to payment, including reasonable profit margin, for performance completed to date. Revenue recognized over time is estimated based on costs incurred to date plus a reasonable profit margin. If either of the two conditions noted above are not met to recognize revenue over time, revenue is recognized following the transfer of control of such products to the customer, which typically occurs upon shipment or delivery depending on the terms of the underlying arrangement. The Company recognizes revenue when a contract exists and when, or as, it satisfies a performance obligation by transferring control of a product or service to a customer. Contracts are accounted for when they have approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. The Company generally enters into a master services arrangement that establishes the framework under which business will be conducted. These arrangements represent the master terms and conditions of the Company's services that apply to individual orders, but they do not commit the customer to work with, or to continue to work with, the Company nor do they obligate the customer to any specific volume or pricing of purchases. Moreover, these terms can be amended in appropriate situations. Customer purchase orders are received for specific quantities with predominantly fixed pricing and delivery requirements. Thus, for the majority of our contracts, there is no guarantee of any revenue to the Company until a customer submits a purchase order. As a result, the Company generally considers its arrangement with a customer to be the combination of the master services arrangement and the purchase order. Most of the Company's arrangements with customers create a single performance obligation as the promise to transfer the individual manufactured product or service is capable of being distinct. The Company’s performance obligations are satisfied over time as work progresses or at a point in time. A performance obligation is satisfied over time if the Company has an enforceable right to payment, including a reasonable profit margin. Determining if an enforceable right to payment includes a reasonable profit margin requires judgment and is assessed on a contract by contract basis. If an enforceable right to payment for work-in-process does not exist, revenue is recognized following the transfer of control of such products to the customer, which typically occurs upon shipment or delivery depending on the terms of the underlying contract. For contracts requiring over time revenue recognition, the selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. The Company uses a cost-based input measurement of progress because it best depicts the transfer of assets to the customer, which occurs as costs are incurred during the manufacturing process or as services are rendered. Under the cost-based measure of progress, the extent of progress towards completion is measured based on the costs incurred to date. Generally, there are no subjective customer acceptance requirements or further obligations related to goods or services provided; if such requirements or obligations exist, then a sale is recognized at the time when such requirements are completed and such obligations are fulfilled. The Company does not allow for a general right of return. Net sales include amounts billed to customers for shipping and handling and out-of-pocket expenses. The corresponding shipping and handling costs and out-of-pocket expenses are included in cost of sales. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from net sales. Net sales from engineering design and development services, which are generally performed under contracts with a duration of twelve months or less, are typically recognized as program costs are incurred by utilizing the proportional performance model. The completed performance model is used if certain customer acceptance criteria exist. Any losses are recognized when anticipated. Net sales from engineering design and development services were less than 5.0% of consolidated net sales for each of fiscal 2020, 2019 and 2018. Income Taxes: Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company maintains valuation allowances when it is more likely than not that all or a portion of a deferred tax asset will not be realized. In determining whether a valuation allowance is required, the Company takes into account such factors as prior earnings history, expected future earnings, carryback and carryforward periods, and tax strategies that could potentially enhance the likelihood of the realization of a deferred tax asset. Foreign Currency Translation & Transactions: The Company translates assets and liabilities of subsidiaries operating outside of the U.S. with a functional currency other than the U.S. dollar into U.S. dollars using exchange rates in effect at the relevant balance sheet date and net sales, expenses and cash flows at the average exchange rates during the respective periods. Adjustments resulting from translation of the financial statements are recorded as a component of "Accumulated other comprehensive loss." Exchange gains and losses arising from transactions denominated in a currency other than the functional currency of the entity involved and remeasurement adjustments for foreign operations where the U.S. dollar is the functional currency are included in the Consolidated Statements of Comprehensive Income as a component of "Miscellaneous, net." Exchange (losses) gains on foreign currency transactions were $(0.4) million, $0.5 million and $1.2 million for fiscal 2020, 2019 and 2018, respectively. These amounts include the amount of gain recognized in income during each fiscal year due to forward currency exchange contracts entered into to hedge recognized assets or liabilities ("non-designated hedges") the Company entered into during each respective year. Refer to Note 5, "Derivatives and Fair Value Measurements," for further details on derivatives. Derivatives: All derivatives are recognized on the balance sheets at fair value. The Company periodically enters into forward currency exchange contracts and interest rate swaps. On the date a derivative contract is entered into, the Company designates the derivative as a non-designated hedge or a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (a "cash flow" hedge). The Company does not enter into derivatives for speculative purposes. Changes in the fair value of non-designated derivatives are recorded in earnings as are the gains or losses related to the hedged asset or liability. Changes in the fair value of a derivative that qualifies as a cash flow hedge are recorded in "Accumulated other comprehensive loss" within shareholders' equity, until earnings are affected by the variability of cash flows. Certain forward currency exchange contracts are treated as cash flow hedges and, therefore, $1.8 million, $1.1 million and $(3.9) million was recorded in "Accumulated other comprehensive loss" for fiscal 2020, 2019 and 2018, respectively. See Note 5, "Derivatives and Fair Value Measurements," for further information. Earnings Per Share: The computation of basic earnings per common share is based upon the weighted average number of common shares outstanding and net income. The computation of diluted earnings per common share reflects additional dilution from share-based awards, excluding any with an antidilutive effect. See Note 7, "Earnings Per Share," for further information. Share-based Compensation: The Company measures all grants of share-based payments to employees, including grants of employee stock options, at fair value and expenses them in the Consolidated Statements of Comprehensive Income over the service period (generally the vesting period) of the grant. See Note 9, "Benefit Plans," for further information. Comprehensive Income (Loss): The Company follows the established standards for reporting comprehensive income (loss), which is defined as the changes in equity of an enterprise except those resulting from shareholder transactions. Accumulated other comprehensive loss consists of the following as of October 3, 2020 and September 28, 2019 (in thousands): 2020 2019 Foreign currency translation adjustments $ (6,501) $ (17,395) Cumulative change in fair value of derivative instruments 1,442 (389) Accumulated other comprehensive loss $ (5,059) $ (17,784) Refer to Note 5, "Derivatives and Fair Value Measurements," for further explanation regarding the change in fair value of derivative instruments that is recorded to "Accumulated other comprehensive loss." Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Fair Value of Financial Instruments: The Company holds financial instruments consisting of cash and cash equivalents, restricted cash, accounts receivable, certain deferred compensation assets held under trust arrangements, accounts payable, debt, derivatives, and finance and operating lease obligations. The carrying values of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and finance and operating lease obligations as reported in the consolidated financial statements approximate fair value. Derivatives and certain deferred compensation assets held under trust arrangements are recorded at fair value. Accounts receivable are reflected at net realizable value based on anticipated losses due to potentially uncollectible balances. Anticipated losses are based on management’s analysis of historical losses and changes in customers’ credit status. The fair value of the Company’s debt was $299.3 million and $252.3 million as of October 3, 2020 and September 28, 2019, respectively. The carrying value of the Company's debt was $288.0 million and $245.0 million as of October 3, 2020 and September 28, 2019, respectively. The Company uses quoted market prices when available or discounted cash flows to calculate fair value. If measured at fair value in the financial statements, long-term debt (including the current portion) would be classified as Level 2 in the fair value hierarchy described below. The fair values of the Company’s derivatives are disclosed in Note 5, "Derivatives and Fair Value Measurements." The fair values of the deferred compensation assets held under trust arrangements are discussed in Note 9, "Benefit Plans." Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (or exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The accounting guidance establishes a fair value hierarchy based on three levels of inputs that may be used to measure fair value. The input levels are: Level 1: Quoted (observable) market prices in active markets for identical assets or liabilities. Level 2: Inputs other than Level 1 that are observable, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the asset or liability. Business and Credit Concentrations: Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash, cash equivalents, trade accounts receivable and derivative instruments, specifically related to counterparties. In accordance with the Company’s investment policy, the Company’s cash, cash equivalents and derivative instruments were placed with recognized financial institutions. The Company’s investment policy limits the amount of credit exposure in any one issue and the maturity date of the investment securities that typically comprise investment grade short-term debt instruments. Concentrations of credit risk in accounts receivable resulting from sales to major customers are discussed in Note 11, "Reportable Segments, Geographic Information and Major Customers". The Company, at times, requires cash deposits for services performed. The Company also closely monitors extensions of credit. Recently Adopted Accounting Pronouncements: In May 2014, the FASB issued ASU 2014-09, which requires an entity to recognize revenue relating to contracts with customers that depicts the transfer of promised goods or services to customers in an amount reflecting the consideration to which the entity expects to be entitled in exchange for such goods or services ("Topic 606"). On September 30, 2018, the Company adopted and applied Topic 606 to all contracts using the modified retrospective method of adoption. Upon adoption, the Company recognized an increase to its fiscal 2019 beginning Retained Earnings balance of $7.8 million. In February 2016, the FASB issued ASU 2016-02 (“Topic 842”), which is intended to improve financial reporting of lease transactions by requiring lessees to recognize most leases as a right-of-use (“ROU”) asset and lease liability on their balance sheets for the rights and obligations created by leases, but record expenses on their income statements in a similar manner. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. ASU 2016-02 also requires disclosures regarding the amount, timing and judgments related to accounting for an entity’s leases and related cash flows. On September 29, 2019, the Company adopted Topic 842 using the modified retrospective method of adoption, which allows financial information for comparative periods prior to adoption not to be updated. The Company recognized right-of-use assets and operating lease liabilities on its Consolidated Balance Sheets, but the standard did not have a material impact on its Consolidated Statements of Comprehensive Income or Consolidated Statements of Cash Flows. Topic 842 provides optional practical expedients to assist with transition to the new standard. Management elected the package of practical expedients offered, which allows entities to not reassess: (i) whether any contracts prior to the adoption date are or contain leases, (ii) lease classification, and (iii) whether capitalized initial direct costs continue to meet the definition of initial direct costs under the new guidance. For all new and modified leases after adoption, management elected the short-term lease recognition exemption for all of the Company’s leases that qualify, in addition to the practical expedient to not separate lease and nonlease components. Refer to Note 8, "Leases," for further information. In August 2017, the FASB issued ASU 2017-12 related to the accounting for hedging activities. The pronouncement expands and refines hedge accounting, aligns the recognition and presentation of the effects of hedging instruments and hedge items in the financial statements, and includes certain targeted improvements to ease the application of current guidance related to the assessment of hedge effectiveness. The Company adopted this guidance during the first quarter of fiscal 2020 with no material impact to the Company's Consolidated Financial Statements; however, the impact of the new standard on future periods will depend on the facts and circumstances of future transactions. Recently Issued Accounting Pronouncements Not Yet Adopted: In June 2016, the FASB issued ASU 2016-13, which replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and required consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This guidance is effective for the Company beginning in the first quarter of fiscal year 2021. Early adoption is permitted. The Company plans to adopt this methodology the first quarter of fiscal 2021 and does not expect a material impact on its Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, which provides guidance in accounting for contracts, hedging relationships, and other transactions that are affected by reference rate reform. The amendments in this update are elective and were effective immediately upon issuance. The Company is currently in the process of assessing the impacts of reference rate reform but does not expect this standard to have a material impact on its Consolidated Financial Statements. The Company believes that no other recently issued accounting standards will have a material impact on its Consolidated Financial Statements, or apply to its operations. |
Inventories
Inventories | 12 Months Ended |
Oct. 03, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories as of October 3, 2020 and September 28, 2019 consisted of the following (in thousands): 2020 2019 Raw materials $ 630,833 $ 577,545 Work-in-process 53,602 49,315 Finished goods 79,026 74,078 Total inventories, net $ 763,461 $ 700,938 In certain circumstances, per contractual terms, customer deposits are received by the Company to offset obsolete and excess inventory risks. The total amount of customer deposits related to inventory and included within current liabilities on the accompanying Consolidated Balance Sheets as of October 3, 2020 and September 28, 2019 w as $154.6 million a |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Oct. 03, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment as of October 3, 2020 and September 28, 2019 consisted of the following (in thousands): 2020 2019 Land, buildings and improvements $ 334,083 $ 289,051 Machinery and equipment 403,894 381,656 Computer hardware and software 147,723 136,227 Capital assets in progress 16,279 49,599 Total property, plant and equipment, gross 901,979 856,533 Less: accumulated depreciation (518,318) (472,309) Total property, plant and equipment, net $ 383,661 $ 384,224 Assets held under finance leases and included in property, plant and equipment as of October 3, 2020 and September 28, 2019 consisted of the following (in thousands): 2020 2019 Buildings and improvements $ 35,360 $ 23,717 Machinery and equipment 11,374 12,293 Capital assets in progress — 11,831 Total property, plant and equipment held under finance leases, gross 46,734 47,841 Less: accumulated amortization (10,326) (8,762) Total property, plant and equipment held under finance leases, net $ 36,408 $ 39,079 As of October 3, 2020, September 28, 2019 and September 29, 2018, accounts payable included approximately $6.7 million, $10.0 million and $11.2 million, respectively, related to the purchase of property, plant and equipment, which have been treated as non-cash transactions for purposes of the Consolidated Statements of Cash Flows. |
Debt, Finance Lease Obligations
Debt, Finance Lease Obligations and Other Financing | 12 Months Ended |
Oct. 03, 2020 | |
Debt and Lease Obligation [Abstract] | |
Debt, Finance Lease Obligations and Other Financing | Debt, Finance Lease Obligations and Other Financing Debt and finance lease obligations as of October 3, 2020 and September 28, 2019, consisted of the following (in thousands): 2020 2019 4.05% Senior Notes, due June 15, 2025 $ 100,000 $ 100,000 4.22% Senior Notes, due June 15, 2028 50,000 50,000 Borrowings under the credit facility — 95,000 Term loans, due April 28, 2021 138,000 — Finance lease and other financing obligations 48,435 44,492 Unamortized deferred financing fees (1,631) (1,512) Total obligations 334,804 287,980 Less: current portion (146,829) (100,702) Long-term debt and finance lease obligations, net of current portion $ 187,975 $ 187,278 On June 15, 2018, the Company entered into a Note Purchase Agreement (the “2018 NPA”) pursuant to which it issued an aggregate of $150.0 million in principal amount of unsecured senior notes, consisting of $100.0 million in principal amount of 4.05% Series A Senior Notes, due on June 15, 2025, and $50.0 million in principal amount of 4.22% Series B Senior Notes, due on June 15, 2028 (collectively, the “2018 Notes”), in a private placement. The 2018 NPA includes customary operational and financial covenants with which the Company is required to comply, including, among others, maintenance of certain financial ratios such as a total leverage ratio and a minimum interest coverage ratio. The 2018 Notes may be prepaid in whole or in part at any time, subject to payment of a make-whole amount; interest on the 2018 Notes is payable semiannually. As of October 3, 2020, the Company was in compliance with the covenants under the 2018 NPA. On May 15, 2019, the Company refinanced its then-existing senior unsecured revolving credit facility by entering into a new 5-year senior unsecured revolving credit facility (referred to as the "Credit Facility"), which expanded the maximum commitment from $300.0 million to $350.0 million and extended the maturity from July 5, 2021 to May 15, 2024. The maximum commitment under the Credit Facility may be further increased to $600.0 million, generally by mutual agreement of the Company and the lenders, subject to certain customary conditions. The increase of the maximum facility is not able to be exercised until after the maturity date of the 364 day delayed draw term loans ("term loans") on April 28, 2021, as outlined in Amendment No. 1 to the Credit Agreement (the "Amendment") subsequently discussed. During fiscal 2020, the highest daily borrowing was $164.5 million; the average daily borrowings were $78.5 million. The Company borrowed $538.7 million and repaid $633.7 million of revolving borrowings under the Credit Facility during fiscal 2020. As of October 3, 2020, the Company was in compliance with all financial covenants relating to the Credit Agreement, which are generally consistent with those in the 2018 NPA discussed above. The Company is required to pay a commitment fee on the daily unused revolver credit commitment based on the Company's leverage ratio; the fee was 0.125% as of October 3, 2020. To further ensure our ability to meet our working capital and fixed capital requirements, on April 29, 2020, the Company entered into the Amendment in response to the COVID-19 outbreak, which amends the Credit Agreement, dated as of May 15, 2019. The Amendment amends certain provisions of the Credit Facility to, among other things, provide for a $138.0 million unsecured delayed draw term loans facility. Term loans borrowed under the new facility were funded in a single draw on May 4, 2020 and will mature on April 28, 2021. Outstanding term loans will bear interest, at the Company’s option, at a eurocurrency rate (subject to a floor of 1.0%) plus a margin of 1.75% per annum or at a base rate (subject to a floor of 2.0%) plus a margin of 0.75% per annum. The proceeds of the term loans were used to prepay outstanding revolving and swing line loans under the Credit Facility and for the general corporate purposes of the Company and its subsidiaries. The $138.0 million of outstanding term loans as of October 3, 2020 was subject to a 2.75% per annum interest rate. The aggregate scheduled maturities of the Company’s debt obligations as of October 3, 2020, are as follows (in thousands): 2021 $ 138,000 2022 — 2023 — 2024 — 2025 100,000 Thereafter 50,000 Total $ 288,000 The aggregate scheduled maturities of the Company’s finance leases and other financing obligations as of October 3, 2020, are as follows (in thousands): 2021 $ 8,829 2022 4,219 2023 2,320 2024 522 2025 568 Thereafter 31,977 Total $ 48,435 The Company's weighted average interest rate on finance lease obligatio ns was 17.7% and 4.8% as of October 3, 2020 and September 28, 2019, respectively. Upon adoption of ASU 2016-02, two existing build-to-suit arrangements for the facilities in Guadalajara, Mexico were reassessed to be finance leases. These leases were included in the weighted average interest rate on finance lease obligations for the fiscal year 2020. Weighted average interest rate calculations on operating and finance lease obligations according to Topic 842 are disclosed in Note 8, "Leases". |
Derivatives and Fair Value Meas
Derivatives and Fair Value Measurements | 12 Months Ended |
Oct. 03, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Fair Value Measurements | Derivatives and Fair Value Measurements All derivatives are recognized in the accompanying Consolidated Balance Sheets at their estimated fair value. The Company uses derivatives to manage the variability of foreign currency obligations. The Company has cash flow hedges related to forecasted foreign currency obligations, in addition to non-designated hedges to manage foreign currency exposures associated with certain foreign currency denominated assets and liabilities. The Company does not enter into derivatives for speculative purposes. The Company designates some foreign currency exchange contracts as cash flow hedges of forecasted foreign currency expenses. Changes in the fair value of the derivatives that qualify as cash flow hedges are recorded in "Accumulated other comprehensive loss" in the accompanying Consolidated Bala nce Sheets until earnings are affected by the variability of the cash flows. In the next twelve months, the Company estimates that $1.2 million of unrealized gains, net of tax, related to cash flow hedges will be reclassified from other comprehensive income (loss) into earnings. Changes in the fair value of the non-designated derivatives related to recognized foreign currency denominated assets and liabilities are recorded in "Miscellaneous, net" in the accompanying Consolidated Statements of Comprehensive Income. The Company enters into forward currency exchange contracts for its operations in Malaysia and Mexico on a rolling basis. The Company had cash flow hedges outstanding with a notional value of $96.8 million as of October 3, 2020, and a notional value of $80.0 million as of September 28, 2019. These forward currency contracts fix the exchange rates for the settlement of future foreign currency obligations that have yet to be realized. The total fair value of the forward currency exchange contracts was a $1.2 million asset as of October 3, 2020, and a $0.6 million liability as of September 28, 2019. The Company had additional forward currency exchange contracts outstanding as of October 3, 2020, with a notional value of $15.8 million ; there were $34.4 million such contracts outstanding as of September 28, 2019. The Company did not designate these derivative instruments as hedging instruments. The net settlement amount (fair value) related to these contracts is recorded on the Consolidated Balance Sheets as either a current or long-term asset or liability, depending on the term, and as an element of "Miscellaneous, net." The total fair value of these derivatives was a less than $0.1 million asset as of October 3, 2020, and a $0.9 million asset as of September 28, 2019. The tables below present information regarding the fair values of derivative instruments (as defined in Note 1, "Description of Business and Significant Accounting Policies") and the effects of derivative instruments on the Company’s Consolidated Financial Statements: Fair Values of Derivative Instruments (in thousands) Derivative Assets Derivative Liabilities October 3, September 28, October 3, September 28, Derivatives designated as hedging instruments Balance sheet Fair Value Fair Value Balance sheet Fair Value Fair Value Foreign currency forward contracts Prepaid expenses and other $ 1,830 $ 156 Other accrued liabilities $ 641 $ 798 Fair Values of Derivative Instruments (in thousands) Derivative Assets Derivative Liabilities October 3, September 28, October 3, September 28, Derivatives not designated as hedging instruments Balance sheet Fair Value Fair Value Balance sheet Fair Value Fair Value Foreign currency forward contracts Prepaid expenses and other $ 70 $ 912 Other accrued liabilities $ 58 $ 54 The Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Loss ("OCL") (in thousands) for the Twelve Months Ended Derivatives in cash flow hedging relationships Amount of Gain (Loss) Recognized in OCL on Derivatives October 3, 2020 September 28, 2019 September 29, 2018 Foreign currency forward contracts $ 446 $ (629) $ 2,579 Derivative Impact on (Loss) Gain Recognized in Consolidated Statements of Comprehensive Income (in thousands) for the Twelve Months Ended Derivatives in cash flow hedging relationships Classification of (Loss) Gain Reclassified from Accumulated OCL into Income Amount of (Loss) Gain Reclassified from Accumulated OCL into Income October 3, 2020 September 28, 2019 September 29, 2018 Foreign currency forward contracts Cost of sales $ (1,278) $ (1,506) $ 5,676 Foreign currency forward contracts Selling and administrative expenses $ (107) $ (173) $ 619 Treasury rate locks Interest expense $ — $ — $ 226 Derivatives not designated as hedging instruments Location of (Loss) Gain Recognized on Derivatives in Income Amount of (Loss) Gain on Derivatives Recognized in Income October 3, 2020 September 28, 2019 September 29, 2018 Foreign currency forward contracts Miscellaneous, net $ (330) $ 2,098 $ 263 Fair Value Measurements: Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (or exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses quoted market prices when available or discounted cash flows to calculate fair value. The accounting guidance establishes a fair value hierarchy based on three levels of inputs that may be used to measure fair value. The input levels are: Level 1: Quoted (observable) market prices in active markets for identical assets or liabilities. Level 2: Inputs other than Level 1 that are observable, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the asset or liability. The following table lists the fair values of assets of the Company’s derivatives as of October 3, 2020 and September 28, 2019, by input level: Fair Value Measurements Using Input Levels Asset (in thousands) Fiscal year ended October 3, 2020 Level 1 Level 2 Level 3 Total Derivatives Foreign currency forward contracts $ — $ 1,201 $ — $ 1,201 Fiscal year ended September 28, 2019 Derivatives Foreign currency forward contracts $ — $ 216 $ — $ 216 The fair value of foreign currency forward contracts is determined using a market approach, which includes obtaining directly or indirectly observable values from third parties active in the relevant markets. Inputs in the fair value of the foreign currency forward contracts include prevailing forward and spot prices for currency. |
Income Taxes
Income Taxes | 12 Months Ended |
Oct. 03, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The domestic and foreign components of income (loss) before income tax expense for fiscal 2020, 2019 and 2018 were as follows (in thousands): 2020 2019 2018 U.S. (1) $ (69,102) $ (42,806) $ (53,243) Foreign (1) 204,499 168,761 160,853 $ 135,397 $ 125,955 $ 107,610 (1) The U.S. and Foreign components of income (loss) before income tax expense include the elimination of intercompany foreign dividends paid to the Company's U.S. operations. Income tax expense (benefit) for fiscal 2020, 2019 and 2018 were as follows (in thousands): 2020 2019 2018 Current: Federal $ 8,779 $ 15,160 $ 63,814 State 23 — 234 Foreign 12,699 11,943 10,134 21,501 27,103 74,182 Deferred: Federal (6,498) (3,498) (2,958) State 3 827 (447) Foreign 2,912 (7,093) 23,793 (3,583) (9,764) 20,388 $ 17,918 $ 17,339 $ 94,570 The following is a reconciliation of the federal statutory income tax rate to the effective income tax rates reflected in the Consolidated Statements of Comprehensive Income for fiscal 2020, 2019 and 2018: 2020 2019 2018 Federal statutory income tax rate 21.0 % 21.0 % 24.5 % (Decrease) increase resulting from: Foreign tax rate differences (24.0) (21.0) (30.2) Withholding tax on dividends 1.9 (5.4) 23.7 Permanent differences (2.6) (1.3) 0.8 Excess tax benefits related to share-based compensation (3.0) (1.3) (2.7) Global intangible low-taxed income ("GILTI") 13.8 11.7 — Deemed repatriation tax — 5.6 92.2 Non-deductible compensation 2.2 1.5 0.2 Valuation allowances 3.6 1.5 (30.6) Rate changes — — 9.0 Other, net 0.3 1.5 1.0 Effective income tax rate 13.2 % 13.8 % 87.9 % The effective tax rate for fiscal 2020 was lower than the effective tax rate for fiscal 2019 primarily due to the geographic distribution of worldwide earnings. During fiscal 2019, the Company reasserted that certain historical undistributed earnings of two foreign subsidiaries will be permanently reinvested which provided a $10.5 million benefit to the effective tax rate. The impact of the changes in the Company's assertion has been included in "Withholding tax on dividends" in the effective income tax reconciliation above. The reduction to the effective tax rate compared to fiscal 2018 was offset by an increase due to the GILTI provisions of U.S. Tax Reform in fiscal 2019. The GILTI impact in the table above includes the deduction allowed by the regulations as well as the foreign tax credits attributed to GILTI. The Company has elected to treat the income tax effects of GILTI as a period cost. During fiscal 2020, the Company recorded a $4.8 million increase to its valuation allowance due to continuing losses in certain jurisdictions within the AMER and EMEA segments, partially offset by an expiration of net operating losses that had a valuation allowance recorded. During fiscal 2019, the Company recorded a $1.9 million increase to its valuation allowance due to continuing losses in certain jurisdictions within the AMER and EMEA segments, partially offset by an expiration of net operating losses that had a valuation allowance recorded. During fiscal 2018, the Company recorded a reduction to its valuation allowance which includes $9.7 million related to the U.S. federal tax rate change as part of U.S. Tax Reform from 35% to 21%, $21.0 million of carryforward credits and net operating losses utilized against the deemed repatriation of undistributed foreign earnings and $3.6 million for the release of the U.S. valuation allowance due to the expected future U.S. taxable income related to the GILTI provisions of U.S. Tax Reform. These benefits were partially offset by a $1.4 million increase in foreign valuation allowances in the EMEA segment. The components of the net deferred income tax assets as of October 3, 2020 and September 28, 2019, were as follows (in thousands): 2020 2019 Deferred income tax assets: Loss/credit carryforwards $ 31,854 $ 28,391 Inventories 14,450 16,809 Accrued employee benefits 14,833 15,834 Accrued liabilities 7,015 — Other 5,434 3,353 Total gross deferred income tax assets 73,586 64,387 Less valuation allowances (34,948) (29,170) Deferred income tax assets 38,638 35,217 Deferred income tax liabilities: Property, plant and equipment 14,282 15,621 Tax on unremitted earnings 5,339 5,192 Acceleration of revenue under Topic 606 4,028 6,055 Deferred income tax liabilities 23,649 26,868 Net deferred income tax assets/(liabilities) $ 14,989 $ 8,349 During fiscal 2020, the Company’s valuation allowance increased by $5.8 million. This increase is the result of increases to the valuation allowances against the net deferred tax assets in the AMER region of $2.8 million and an increase in net deferred tax assets in the EMEA region of $3.0 million. As of October 3, 2020, the Company had approximately $201.7 million of pre-tax state net operating loss carryforwards that expire between fiscal 2021 and 2041. Certain state net operating losses have a full valuation allowance against them. The Company also had approximately $89.4 million of pre-tax foreign net operating loss carryforwards that expire between fiscal 2020 and 2026 or are indefinitely carried forward. These foreign net operating losses have a full valuation allowance against them. During fiscal 2020, proposed and final regulations were issued and tax legislation was adopted in various jurisdictions. The impacts of these regulations and legislation on the Company’s consolidated financial condition, results of operations and cash flows are included above. The Company has been granted a tax holiday for a foreign subsidiary in the APAC segment. This tax holiday will expire on December 31, 2034, and is subject to certain conditions with which the Company expects to continue to comply. During fiscal 2020, 2019 and 2018, the tax holiday resulted in tax reductions of approximately $28.3 million net of the impact of the GILTI provisions of U.S. Tax Reform ($0.97 per basic share, $0.95 per diluted share), $23.9 million ($0.79 per basic share, $0.77 per diluted share) and $39.1 million ($1.19 per basic share, $1.15 per diluted share), respectively. The Company does not provide for taxes that would be payable if certain undistributed earnings of foreign subsidiaries were remitted because the Company considers these earnings to be permanently reinvested. The deferred tax liability that has not been recorded for these earnings was approximately $12.0 million as of October 3, 2020. The Company has approximately $2.1 million of uncertain tax benefits as of October 3, 2020. The Company has classified these amounts in the Consolidated Balance Sheets as "Other liabilities" (noncurrent) in the amount of $1.3 million and an offset to "Deferred income taxes" (noncurrent asset) in the amount of $0.8 million. The Company has classified these amounts as "Other liabilities" (noncurrent) and "Deferred income taxes" (noncurrent asset) to the extent that payment is not anticipated within one year. The following is a reconciliation of the beginning and ending amounts of unrecognized income tax benefits (in thousands): 2020 2019 2018 Balance at beginning of fiscal year $ 2,270 $ 5,841 $ 3,115 Gross increases for tax positions of prior years 509 62 21 Gross increases for tax positions of the current year 465 39 2,893 Gross decreases for tax positions of prior years (1,148) (3,672) (188) Balance at end of fiscal year $ 2,096 $ 2,270 $ 5,841 The amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate is $1.3 million and $1.5 million for the fiscal years ended October 3, 2020 and September 28, 2019, respectively. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. The total accrued penalties and net accrued interest with respect to income taxes was approximately $0.1 million for the fiscal year ended October 3, 2020, and approximately $0.2 million for each of the fiscal years ended September 28, 2019 and September 29, 2018. The Company recognized less than $0.1 million of expense for accrued penalties and net accrued interest in the Consolidated Statements of Comprehensive Income for each of the fiscal years ended October 3, 2020, September 28, 2019 and September 29, 2018. It is possible that a number of uncertain tax positions may be settled within the next 12 months. Settlement of these matters is not expected to have a material effect on the Company’s consolidated results of operations, financial position and cash flows. The Company files income tax returns, including returns for its subsidiaries, with federal, state, local and foreign taxing jurisdictions. The following tax years remain subject to examination by the respective major tax jurisdictions: Jurisdiction Fiscal Years China 2015-2020 Germany 2015-2020 Malaysia 2016-2020 Mexico 2014-2020 Romania 2014-2020 United Kingdom 2017-2020 United States Federal 2015, 2017-2020 State 2003-2006, 2009-2020 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Oct. 03, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following is a reconciliation of the amounts utilized in the computation of basic and diluted earnings per share for fiscal 2020, 2019 and 2018 (in thousands, except per share amounts): 2020 2019 2018 Net income $ 117,479 $ 108,616 $ 13,040 Basic weighted average common shares outstanding 29,195 30,271 33,003 Dilutive effect of share-based awards and options outstanding 721 803 916 Diluted weighted average shares outstanding 29,916 31,074 33,919 Earnings per share: Basic $ 4.02 $ 3.59 $ 0.40 Diluted $ 3.93 $ 3.50 $ 0.38 In each of the fiscal years 2020, 2019 and 2018, share-based awards for approximately 0.1 million shares were not included in the computation of diluted earnings per share as they were antidilutive. |
Leases
Leases | 12 Months Ended |
Oct. 03, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company’s lease portfolio includes both real estate and non-real estate type leases which are accounted for as either finance or operating leases. Real estate leases generally include office, warehouse and manufacturing facilities and non-real estate leases generally include office equipment and vehicles. The Company determines if a contract is or contains a lease at inception. The Company’s leases have remaining lease terms of less than 1 year to 40 years. Renewal options that are deemed reasonably certain are included as part of the lease term for purposes of calculating the right-of-use (“ROU”) asset and lease liability. Variable lease payments are generally expensed as incurred and include certain index-based changes in rent, certain nonlease components, such as maintenance and other services provided by the lessor, and other charges included in the lease. The Company elected the practical expedient to not separate lease and nonlease components, as such nonlease components are included in the calculation of the ROU asset and lease liability and included in the lease expense over the term of the lease. The Company uses a discount rate to calculate the ROU asset and lease liability. When the implicit rate is known or provided in the lease documents, the Company is required to use this rate. In cases in which the implicit rate is not known, the Company uses an estimated incremental borrowing rate. Operating lease ROU assets and lease liabilities are recorded on the date the Company takes possession of the leased assets with expense recognized on a straight-line basis over the lease term. Leases with an estimated total term of 12 months or less are not recorded on the balance sheet and the lease expense is recognized on a straight-line basis over the lease term. Generally, the Company's lease agreements do not contain material residual value guarantees or material restrictive covenants. Upon adoption of ASU 2016-02, the Company recorded $45.5 million of ROU assets and lease liabilities, related to its existing operating lease portfolio. The Company also reclassified amounts previously held on the balance sheet to operating right-of-use assets and operating lease liabilities upon adoption due to existing arrangements subject to the new standard, including $30.2 million of prepaid leases in other non-current assets. The accounting for the Company’s finance leases remained substantially unchanged. In addition, the company recognized a $1.1 million reduction to retained earnings as a result of two existing build-to-suit arrangements for the facilities in Guadalajara, Mexico that were reassessed to be finance leases under the new standard. The adoption of this new standard did not have a material impact on the Consolidated Statements of Cash Flows or Consolidated Statements of Comprehensive Income. As a result of the adoption, the following adjustments were made to the opening balances of the Company's Consolidated Balance Sheets (in thousands): September 28, 2019 Impacts due to adoption of Topic 842 September 29, 2019 ASSETS Prepaid expenses and other $ 31,974 $ (170) $ 31,804 Operating right-of-use assets — 75,790 75,790 Property, plant and equipment, net 384,224 (1,833) 382,391 Deferred income taxes 13,654 432 14,086 Other non-current assets 64,714 (30,193) 34,521 LIABILITIES AND SHAREHOLDERS' EQUITY Other accrued liabilities $ 106,461 $ 7,939 $ 114,400 Long-term debt and finance lease obligations, net of current portion 187,278 (207) 187,071 Long-term operating lease liabilities — 37,371 37,371 Retained earnings 1,178,677 (1,077) 1,177,600 The components of lease expense for fiscal year 2020 were as follows (in thousands): 2020 Finance lease expense: Amortization of right-of-use assets $ 4,380 Interest on lease liabilities 4,956 Operating lease expense 11,707 Other lease expense 3,401 Total $ 24,444 Based on the nature of the ROU asset, amortization of finance right-of-use assets, operating lease expense and other lease expense are recorded within either cost of goods sold or selling and administrative expenses and interest on finance lease liabilities is recorded within interest expense on the Consolidated Statements of Comprehensive Income. Other lease expense includes lease expense for leases with an estimated total term of twelve months or less and variable lease expense related to variations in lease payments as a result of a change in factors or circumstances occurring after the lease possession date. Amortization of assets held under capital leases totaled $3.8 million and $3.4 million for fiscal years 2019 and 2018, respectively. Capital lease additions totaled $6.7 million, and $11.8 million for fiscal years 2019 and 2018, respectively. Rent expense under all operating leases for fiscal years 2019 and 2018 was approximat ely $12.9 million and $12.0 million, respectively. The following tables sets forth the amount of lease assets and lease liabilities included in the Company’s Consolidated Balance Sheets (in thousands): Financial Statement Line Item October 3, 2020 ASSETS Finance lease assets Property, plant and equipment, net $ 36,408 Operating lease assets Operating lease right-of-use assets 69,879 Total lease assets $ 106,287 LIABILITIES AND SHAREHOLDERS' EQUITY Current Finance lease liabilities Current portion of long-term debt and finance lease obligations $ 2,700 Operating lease liabilities Other accrued liabilities 7,724 Non-current Finance lease liabilities Long-term debt and finance lease obligations, net of current portion 37,033 Operating lease liabilities Long-term operating lease liabilities 36,779 Total lease liabilities $ 84,236 Other information related to the Company’s leases was as follows: October 3, 2020 Weighted-average remaining lease term (in years) Finance leases 12.8 Operating leases 18.5 Weighted-average discount rate Finance leases 17.7 % Operating leases 3.0 % October 3, 2020 Cash paid for amounts included in the measurement of lease liabilities (in thousands) Operating cash flows used in finance leases $ 4,539 Operating cash flows used in operating leases 10,907 Finance cash flows used in finance leases 3,321 ROU assets obtained in exchange for lease liabilities (in thousands) Operating leases $ 7,692 Finance leases 2,835 Future minimum lease payments required under finance and operating leases as of October 3, 2020, were as follows (in thousands): Operating leases Finance leases 2021 $ 8,973 $ 7,233 2022 8,144 7,045 2023 7,674 5,896 2024 6,021 4,994 2025 4,505 5,092 Thereafter 16,136 93,525 Total minimum lease payments 51,453 123,785 Less: imputed interest (6,950) (84,052) Present value of lease liabilities $ 44,503 $ 39,733 As of October 3, 2020, the Company’s future operating leases that have not yet commenced are immaterial. Future minimum lease payments required under long-term operating and capital leases as of September 28, 2019, were as follows (in thousands): Operating leases Capital leases 2020 $ 10,395 $ 6,734 2021 6,554 3,490 2022 5,584 2,884 2023 5,153 1,652 2024 3,713 958 Thereafter 9,426 34,143 Total $ 40,825 $ 49,861 |
Benefit Plans
Benefit Plans | 12 Months Ended |
Oct. 03, 2020 | |
Compensation Related Costs [Abstract] | |
Benefit Plans | Benefit Plans Share-based Compensation Plans: The Plexus Corp. 2016 Omnibus Incentive Plan (the "2016 Plan"), which was approved by shareholders, is a stock and cash-based incentive plan, and includes provisions by which the Company may grant executive officers, employees and directors stock options, stock appreciation rights ("SARs"), restricted stock (including restricted stock units ("RSUs"), performance stock awards (including performance stock units ("PSUs"), other stock awards and cash incentive awards. Similar awards were offered under its predecessor, the 2008 Long-Term Incentive Plan (the "2008 Plan"), which is no longer being used for grants; however, outstanding awards granted under the 2008 Plan and its predecessors continue in accordance with their terms. The maximum number of shares of Plexus common stock that may be issued pursuant to the 2016 Plan is 3.2 million shares; in addition, cash incentive awards of up to $4.0 million per employee may be granted annually. The exercise price of each stock option and SAR granted must not be less than the fair market value on the date of grant. The Compensation and Leadership Development Committee (the "Committee") of the Board of Directors may establish a term and vesting period for awards under the 2016 Plan as well as accelerate the vesting of such awards. Generally, stock options vest in two annual installments and have a term of ten years. SARs vest in two annual installments and have a term of seven years. RSUs granted to executive officers, other officers and key employees generally vest on the 3 year anniversary of the grant date (assuming continued employment), which is also the date as of which the underlying shares will be issued. Beginning for fiscal 2017 grants, 50% of PSUs vest based on the relative total shareholder return ("TSR") of the Company's common stock as compared to the companies in the Russell 3000 Index, a market condition, and the remaining 50% vest based upon a three-point annual average of the Company's absolute economic return, a performance condition, each during a performance period of three years performance period. The PSUs granted in fiscal 2016 and prior years vested based solely on the relative TSR of the Company's common stock as compared to companies in the Russell 3000 Index during a performance period of three years. The vesting and payout of awards will range between 0% and 200% of the shares granted based upon performance on the metrics during a performance period. Payout at target, 100% of the shares granted, will occur if the TSR of Plexus stock is at the 50th percentile of companies in the Russell 3000 Index during the performance period and if a 2.5% average economic return is achieved over the performance period of three years. The number of shares that may be issued pursuant to PSUs ranges from zero to 0.5 million. The Committee also grants RSUs to non-employee directors, which generally fully vest on the first anniversary of the grant date, which is also the date the underlying shares are issued (unless further deferred). The Company recognized $24.3 million, $21.3 million and $18.0 million of compensation expense associated with share-based awards in fiscal 2020, 2019 and 2018, respectively. Deferred tax benefits related to equity awards of $8.2 million, $9.2 million and $8.2 million were recognized in fiscal 2020, 2019 and 2018, respectively. A summary of the Company’s stock option and SAR activity follows: Number of Options/SARs (in thousands) Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Outstanding as of September 30, 2017 972 $ 36.23 Granted — — Canceled (4) 31.62 Exercised (414) 35.01 Outstanding as of September 29, 2018 554 $ 37.18 Granted — — Canceled (2) 26.96 Exercised (88) 31.55 Outstanding as of September 28, 2019 464 $ 38.28 Granted — — Canceled (16) 31.74 Exercised (325) 39.78 Outstanding as of October 3, 2020 123 $ 35.12 $ 4,393 Number of Options/SARs (in thousands) Weighted Average Exercise Price Weighted Average Remaining Life (years) Aggregate Intrinsic Value (in thousands) Exercisable as of: September 29, 2018 537 $ 36.92 September 28, 2019 464 $ 38.28 October 3, 2020 123 $ 35.12 3.24 $ 4,393 The following table summarizes outstanding stock option and SAR information as of October 3, 2020 (Options/SARs in thousands): Range of Exercise Prices Number of Options/SARs Outstanding (in thousands) Weighted Average Exercise Price Weighted Average Remaining Life Number of Options / SARs Exercisable (in thousands) Weighted Average Exercise Price $25.33 - $27.86 35 $ 26.24 2.21 35 $ 26.24 $27.87 - $36.79 33 $ 33.97 2.70 33 $ 33.97 $36.80 - $41.01 32 $ 39.57 3.63 32 $ 39.57 $41.02 - $45.45 23 $ 44.33 5.09 23 $ 44.33 $25.33 - $45.45 123 $ 35.12 3.24 123 $ 35.12 The Company uses the Black-Scholes valuation model to value options and SARs. The Company used its historical stock prices as the basis for its volatility assumptions. The assumed risk-free rates were based on U.S. Treasury rates in effect at the time of grant with a term consistent with the expected option and SAR lives. The expected options and SARs lives represent the period of time that the options and SARs granted are expected to be outstanding and were based on historical experience. There were no options or SARs granted for fiscal 2020, 2019 or 2018. There were no options and SARs vested for fiscal 2020. The fair value of options and SARs vested for fiscal 2019 and 2018 $0.3 million and $1.3 million, respectively. For fiscal 2020, 2019 and 2018, the total intrinsic value of options and SARs exercised was $10.9 million, $2.4 million and $10.9 million, respectively. As of October 3, 2020, all previously granted options and SARS have vested. A summary of the Company’s PSU and RSU activity follows: Number of Shares (in thousands) Weighted Average Fair Value at Date of Grant Aggregate Intrinsic Value (in thousands) Units outstanding as of September 30, 2017 1,068 $ 45.97 Granted 331 61.88 Canceled (42) 46.74 Vested (324) 45.48 Units outstanding as of September 29, 2018 1,033 $ 51.19 Granted 375 55.76 Canceled (38) 54.03 Vested (408) 41.51 Units outstanding as of September 28, 2019 962 $ 56.97 Granted 377 75.91 Canceled (37) 60.95 Vested (451) 54.85 Units outstanding as of October 3, 2020 851 $ 66.33 $ 60,387 The Company uses the fair value at the date of grant to value RSUs. As of October 3, 2020, there was $17.0 million of unrecognized compensation expense related to RSUs that is expected to be recognized over a weighted average period of 1.3 years. The Company recognizes share-based compensation expense over the vesting period of PSUs. During the fiscal year ended October 3, 2020, the 0.1 million PSUs granted in fiscal 2017 vested at a 148.4% payout based upon the TSR performance achieved during the performance period. There were 0.1 million PSUs granted during each of fiscal years 2020, 2019 and 2018. As of October 3, 2020, at the target achievement level, there was $8.8 million of unrecognized compensation expense related to PSUs that is expected to be recognized over a weighted average period of 1.8 years. 401(k) Savings Plan: The Company’s 401(k) Retirement Plan covers all eligible U.S. employees. The Company matches employee contributions up to 4.0% of eligible earnings. The Company’s contributions for fiscal 2020, 2019 and 2018 totaled $9.8 million, $9.3 million and $8.1 million, respectively. Deferred Compensation Arrangements: The Company has agreements with certain former executive officers to provide nonqualified deferred compensation. Under these agreements, the Company agrees to pay these former executives, or their designated beneficiaries upon such executives’ deaths, certain amounts annually for the first 15 years subsequent to their retirement. As of October 3, 2020 and September 28, 2019, the related deferred compensation liability associated with these arrangements totaled $0.1 million and $0.2 million, respectively. The Company maintains investments in a trust account to fund required payments under these deferred compensation arrangements. As of October 3, 2020 and September 28, 2019, the total value of the assets held by the trust totaled $10.8 million and $10.4 million, respectively, and was recorded at fair value on a recurring basis. These assets were classified as Level 2 in the fair value hierarchy discussed in Note 1, "Description of Business and Significant Accounting Policies." During each of the fiscal years 2020, 2019 and 2018, the Company made payments to the participants in the amount of $0.1 million. Supplemental Executive Retirement Plan: The Company also maintains a supplemental executive retirement plan (the "SERP") as an additional deferred compensation plan for executive officers. Under the SERP, a covered executive may elect to defer some or all of the participant’s compensation into the plan, and the Company may credit the participant’s account with a discretionary employer contribution. Participants are entitled to payment of deferred amounts and any related earnings upon termination or retirement from Plexus. The SERP allows investment of deferred compensation into individual accounts and, within these accounts, into one or more designated investments. Investment choices do not include Plexus stock. During fiscal 2020, 2019 and 2018, the Company made contributions to the participants’ SERP accounts in the amount of $0.7 million, $0.6 million and $1.0 million, respectively. As of October 3, 2020 and September 28, 2019, the SERP assets held in the trust totaled $12.6 million and $12.1 million, respectively, and the related liability to the participants totaled approximately $12.6 million and $12.1 million, respectively. As of October 3, 2020 and September 28, 2019, the SERP assets held in the trust were recorded at fair value on a recurring basis, and were classified as Level 2 in the fair value hierarchy discussed in Note 1, "Description of Business and Significant Accounting Policies." The trust assets are subject to the claims of the Company’s creditors. The deferred compensation and trust assets and the related liabilities to the participants are included in non-current "Other assets" and non-current "Other liabilities," respectively, in the accompanying Consolidated Balance Sheets. |
Litigation
Litigation | 12 Months Ended |
Oct. 03, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation | LitigationThe Company is party to lawsuits in the ordinary course of business. Management does not believe that these proceedings, individually or in the aggregate, will have a material positive or adverse effect on the Company’s consolidated financial position, results of operations or cash flows. |
Reportable Segments, Geographic
Reportable Segments, Geographic Information and Major Customers | 12 Months Ended |
Oct. 03, 2020 | |
Segment Reporting [Abstract] | |
Reportable Segments, Geographic Information and Major Customers | Reportable Segments, Geographic Information and Major CustomersReportable segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or group, in assessing performance and allocating resources. The Company uses an internal management reporting system, which provides important financial data to evaluate performance and allocate the Company’s resources on a regional basis. Net sales for the segments are attributed to the region in which the product is manufactured or the service is performed. The services provided, manufacturing processes used, class of customers serviced and order fulfillment processes used are similar and generally interchangeable across the segments. A segment’s performance is evaluated based upon its operating income (loss). A segment’s operating income (loss) includes its net sales less cost of sales and selling and administrative expenses, but excludes corporate and other expenses. Corporate and other expenses primarily represent corporate selling and administrative expenses, and restructuring costs and other charges, if any, such as the $6.0 million and $1.7 million of restructuring and impairment costs in fiscal 2020 and 2019, respectively, and the $13.5 million one-time employee bonus paid to full-time, non-executive employees during fiscal 2018 due to the Company's ability to access overseas cash as a result of U.S. Tax Reform. These costs are not allocated to the segments, as management excludes such costs when assessing the performance of the segments. Inter-segment transactions are generally recorded at amounts that approximate arm’s length transactions. The accounting policies for the segments are the same as for the Company taken as a whole. Information about the Company’s three reportable segments for fiscal 2020, 2019 and 2018 is as follows (in thousands): 2020 2019 2018 Net sales: AMER $ 1,327,849 $ 1,429,308 $ 1,218,944 APAC 1,824,831 1,557,205 1,498,010 EMEA 349,102 309,933 281,489 Elimination of inter-segment sales (111,388) (132,012) (124,935) $ 3,390,394 $ 3,164,434 $ 2,873,508 Operating income (loss): AMER $ 38,126 $ 57,780 $ 38,637 APAC 246,636 208,178 213,935 EMEA 1,492 4,475 1,447 Corporate and other costs (132,882) (128,378) (135,736) $ 153,372 $ 142,055 $ 118,283 Other income (expense): Interest expense $ (16,162) $ (12,853) $ (12,226) Interest income 1,878 1,949 4,696 Miscellaneous, net (3,691) (5,196) (3,143) Income before income taxes $ 135,397 $ 125,955 $ 107,610 2020 2019 2018 Depreciation: AMER $ 24,217 $ 22,531 $ 21,224 APAC 17,912 16,905 15,954 EMEA 6,938 6,105 6,054 Corporate 6,437 5,344 4,863 $ 55,504 $ 50,885 $ 48,095 Capital expenditures: AMER $ 13,361 $ 42,459 $ 17,690 APAC 18,902 33,454 33,018 EMEA 8,577 5,186 7,923 Corporate 9,248 9,501 4,149 $ 50,088 $ 90,600 $ 62,780 October 3, September 28, Total assets: AMER $ 759,030 $ 751,990 APAC 1,073,951 958,744 EMEA 279,757 209,541 Corporate and eliminations 177,110 80,608 $ 2,289,848 $ 2,000,883 The following information is provided in accordance with the required segment disclosures for fiscal 2020, 2019 and 2018. Net sales were based on the Company’s location providing the product or service (in thousands): 2020 2019 2018 Net sales: United States $ 989,888 $ 1,197,665 $ 1,000,680 Malaysia 1,432,154 1,138,380 1,118,032 China 392,677 418,825 379,977 Mexico 337,961 231,643 218,264 Romania 217,295 195,837 177,111 United Kingdom 118,463 99,825 91,426 Germany 13,344 14,271 12,953 Elimination of inter-country sales (111,388) (132,012) (124,935) $ 3,390,394 $ 3,164,434 $ 2,873,508 October 3, September 28, Long-lived assets: United States $ 99,853 $ 106,757 Malaysia 108,400 101,636 Mexico 68,154 73,864 Romania 33,801 31,033 China 21,408 22,378 United Kingdom 7,484 7,344 Other Foreign 6,446 6,751 Corporate 38,115 34,461 $ 383,661 $ 384,224 As the Company operates flexible manufacturing facilities and processes designed to accommodate customers with multiple product lines and configurations, it is impracticable to report net sales for individual products or services or groups of similar products and services. Long-lived assets as of October 3, 2020 and September 28, 2019 exclude other long-term assets, operating lease right-of-use assets, deferred income tax assets and intangible assets, which totaled $127.0 million and $78.4 million, respectively. As a percentage of consolidated net sales, net sales attributable to customers representing 10.0% or more of consolidated net sales for fiscal 2020, 2019 and 2018 were as follows: 2020 2019 2018 General Electric Company ("GE") 11.7% 12.4% 12.3% During fiscal 2020, 2019 and 2018, net sales attributable to GE were reported in all three reportable segments. |
Guarantees
Guarantees | 12 Months Ended |
Oct. 03, 2020 | |
Guarantees [Abstract] | |
Guarantees | Guarantees The Company offers certain indemnifications under its customer manufacturing agreements. In the normal course of business, the Company may from time to time be obligated to indemnify its customers or its customers’ customers against damages or liabilities arising out of the Company’s negligence, misconduct, breach of contract, or infringement of third-party intellectual property rights. Certain agreements have extended broader indemnification, and while most agreements have contractual limits, some do not. However, the Company generally does not provide for such indemnities and seeks indemnification from its customers for damages or liabilities arising out of the Company’s adherence to customers’ specifications or designs or use of materials furnished, or directed to be used, by its customers. The Company does not believe its obligations under such indemnities are material. In the normal course of business, the Company also provides its customers a limited warranty covering workmanship, and in some cases materials, on products manufactured by the Company. Such warranty generally provides that products will be free from defects in the Company’s workmanship and meet mutually agreed-upon specifications for periods generally ranging from 12 months to 24 months. The Company’s obligation is generally limited to correcting, at its expense, any defect by repairing or replacing such defective product. The Company’s warranty generally excludes defects resulting from faulty customer-supplied components, design defects or damage caused by any party or cause other than the Company. The Company provides for an estimate of costs that may be incurred under its limited warranty at the time product revenue is recognized and establishes additional reserves for specifically identified product issues. These costs primarily include labor and materials, as necessary, associated with repair or replacement and are included in the Company's accompanying Consolidated Balance Sheets in "other accrued liabilities." The primary factors that affect the Company’s warranty liability include the value and the number of shipped units and historical and anticipated rates of warranty claims. As these factors are impacted by actual experience and future expectations, the Company assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. Below is a table summarizing the activity related to the Company’s limited warranty liability for fiscal 2020, 2019 and 2018 (in thousands): Limited warranty liability, as of September 30, 2017 $ 4,756 Accruals for warranties issued during the period 5,608 Settlements (in cash or in kind) during the period (3,718) Limited warranty liability, as of September 29, 2018 6,646 Accruals for warranties issued during the period 3,254 Settlements (in cash or in kind) during the period (3,624) Limited warranty liability, as of September 28, 2019 6,276 Accruals for warranties issued during the period 2,852 Settlements (in cash or in kind) during the period (2,742) Limited warranty liability, as of October 3, 2020 $ 6,386 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Oct. 03, 2020 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders' Equity On June 6, 2016, the Board of Directors authorized a multi-year stock repurchase program under which the Company was authorized to repurchase up to $150.0 million of its common stock beginning in fiscal 2017 (the "2016 Program"). During fiscal 2018, the Company completed the 2016 Program by repurchasing 1,914,596 shares for $115.9 million, at an average price of $60.52 per share. On February 14, 2018, the Board of Directors approved a share repurchase plan under which the Company was authorized to repurchase $200.0 million of its common stock (the "2018 Program"). During fiscal 2019 and 2018, the Company completed the 2018 Program by repurchasing 3,129,059 and 343,642 shares under this program for $178.8 million and $21.2 million, at an average price of $57.15 and $61.61 per share, respectively. On August 20, 2019, the Board of Directors approved a share repurchase plan under which the Company is authorized to repurchase $50.0 million of its common stock (the "2019 Program"). The 2019 Program commenced upon completion of the 2018 Program, as defined below. During fiscal 2020 and 2019, the Company repurchased 609,935 and 54,965 shares under this program for $41.4 million and $3.3 million at an average price of $67.86 and $59.66 per share, respectively. As of October 3, 2020, $5.3 million of authority remained under the 2019 Program. On August 13, 2020, the Board of Directors approved a new share repurchase program that authorizes the Company to repurchase up to $50.0 million of its common stock (the "2021 Program") beginning upon expiration of the Company’s 2019 Program. Refer to Note 19, "Subsequent Event," for further information regarding an amendment to the 2021 Program approved by the Board of Directors on November 18, 2020. All shares repurchased under the aforementioned programs were recorded as treasury stock. |
Trade Accounts Receivable Sale
Trade Accounts Receivable Sale Programs | 12 Months Ended |
Oct. 03, 2020 | |
Receivables [Abstract] | |
Trade Accounts Receivable Sale Programs | Trade Accounts Receivable Sale Programs The Company has Master Accounts Receivable Purchase Agreements with MUFG Bank, New York Branch (formerly known as The Bank of Tokyo-Mitsubishi UFJ, Ltd.) (the "MUFG RPA"), and HSBC Bank (China) Company Limited, Xiamen branch (the "HSBC RPA"), under which the Company may elect to sell receivables; at a discount. These facilities are uncommitted facilities. The maximum facility amount under the MUFG R PA as of October 3, 2020 is $340.0 million. On September 17, 2020, the Company entered into Amendment 11 the MUFG RPA to change the allocation of factoring for certain customers and add LIBOR replacement language. The maximum facility amount under the HSBC RPA as of October 3, 2020 is $60.0 million. The MUFG RPA will be automatically extended each year unless any party gives no less than 10 days prior notice that the agreement should not be extended. The terms of the HSBC RPA are generally consistent with the terms of the MUFG RPA previously discussed. Transfers of receivables under the programs are accounted for as sales and, accordingly, receivables sold under the programs are excluded from accounts receivable on the Consolidated Balance Sheets and are reflected as cash provided by operating activities on the Consolidated Statements of Cash Flows. Proceeds from the transfer reflect the face value of the receivables less a discount. The sale discount is recorded within "Miscellaneous, net" in the Consolidated Statements of Comprehensive Income in the period of the sale. The Company sol d $834.4 million, $919.3 million and $712.9 million of trade accounts receivable under these programs, or their predecessors, during fiscal years 2020, 2019 and 2018, respectively, in exchange for cash proceeds of $831.2 million, |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Oct. 03, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Significant Judgments Revenue is recognized over time for arrangements with customers for which: (i) the Company's performance does not create an asset with an alternative use to the Company, and (ii) the Company has an enforceable right to payment, including reasonable profit margin, for performance completed to date. Revenue recognized over time is estimated based on costs incurred to date plus a reasonable profit margin. If either of the two conditions noted above are not met to recognize revenue over time, revenue is recognized following the transfer of control of such products to the customer, which typically occurs upon shipment or delivery depending on the terms of the underlying arrangement. The Company recognizes revenue when a contract exists and when, or as, it satisfies a performance obligation by transferring control of a product or service to a customer. Contracts are accounted for when they have approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. The Company generally enters into a master services arrangement that establishes the framework under which business will be conducted. These arrangements represent the master terms and conditions of the Company's services that apply to individual orders, but they do not commit the customer to work with, or to continue to work with, the Company nor do they obligate the customer to any specific volume or pricing of purchases. Moreover, these terms can be amended in appropriate situations. Customer purchase orders are received for specific quantities with predominantly fixed pricing and delivery requirements. Thus, for the majority of our contracts, there is no guarantee of any revenue to the Company until a customer submits a purchase order. As a result, the Company generally considers its arrangement with a customer to be the combination of the master services arrangement and the purchase order. Most of the Company's arrangements with customers create a single performance obligation as the promise to transfer the individual manufactured product or service is capable of being distinct. The Company’s performance obligations are satisfied over time as work progresses or at a point in time. A performance obligation is satisfied over time if the Company has an enforceable right to payment, including a reasonable profit margin. Determining if an enforceable right to payment includes a reasonable profit margin requires judgment and is assessed on a contract by contract basis. Generally, there are no subjective customer acceptance requirements or further obligations related to goods or services provided; if such requirements or obligations exist, then a sale is recognized at the time when such requirements are completed and such obligations are fulfilled. The Company does not allow for a general right of return. Net sales include amounts billed to customers for shipping and handling and out-of-pocket expenses. The corresponding shipping and handling costs and out-of-pocket expenses are included in cost of sales. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from net sales. Contract Costs For contracts requiring over time revenue recognition, the selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. The Company uses a cost-based input measurement of progress because it best depicts the transfer of assets to the customer, which occurs as costs are incurred during the manufacturing process or as services are rendered. Under the cost-based measure of progress, the extent of progress towards completion is measured based on the costs incurred to date. There were no other costs to obtain or fulfill customer contracts. Disaggregated Revenue The table below includes the Company’s revenue for the fiscal years ended October 3, 2020 and September 28, 2019 disaggregated by geographic reportable segment and market sector (in thousands): Fiscal Year Ended October 3, 2020 Reportable Segment: AMER APAC EMEA Total Market Sector: Healthcare/Life Sciences $ 464,134 $ 618,250 $ 176,001 $ 1,258,385 Industrial/Commercial 324,120 850,662 79,782 1,254,564 Aerospace/Defense 371,685 157,301 82,582 611,568 Communications 157,181 104,263 4,433 265,877 External revenue 1,317,120 1,730,476 342,798 3,390,394 Inter-segment sales 10,729 94,355 6,304 111,388 Segment revenue $ 1,327,849 $ 1,824,831 $ 349,102 $ 3,501,782 Fiscal Year Ended September 28, 2019 Reportable Segment: AMER APAC EMEA Total Market Sector: Healthcare/Life Sciences $ 488,851 $ 602,922 $ 128,225 $ 1,219,998 Industrial/Commercial 359,381 534,971 86,868 981,220 Aerospace/Defense 317,558 186,486 84,556 588,600 Communications 256,523 113,329 4,764 374,616 External revenue 1,422,313 1,437,708 304,413 3,164,434 Inter-segment sales 6,995 119,497 5,520 132,012 Segment revenue $ 1,429,308 $ 1,557,205 $ 309,933 $ 3,296,446 For the fiscal years ended October 3, 2020 and September 28, 2019, approximately 91% and 90% respectively, of the Company's revenue was recognized as products and services were transferred over time, respectively. Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, contract assets, and deferred revenue on the Company’s accompanying Consolidated Balance Sheets. Contract Assets : For performance obligations satisfied at a point in time, billing occurs subsequent to revenue recognition, at which point the customer has been billed and the resulting asset is recorded within accounts receivable. For performance obligations satisfied over time as work progresses, the Company has an unconditional right to payment, which results in the recognition of contract assets. The following table summarizes the activity in the Company's contract assets during the fiscal years ended October 3, 2020 and September 28, 2019 (in thousands): October 3, September 28, Contract assets, beginning of period $ 90,841 $ — Cumulative effect adjustment at September 29, 2018 — 76,417 Revenue recognized during the period 3,073,465 2,859,182 Amounts collected or invoiced during the period (3,050,360) (2,844,758) Contract assets, end of period $ 113,946 $ 90,841 |
Restructuring and Impairment Ch
Restructuring and Impairment Charges | 12 Months Ended |
Oct. 03, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Impairment Charges | Restructuring and Impairment Charges During fiscal 2020, the Company recorded $6.0 million of restructuring and impairment charges in the Company's AMER segment primarily related to the closure of our Boulder Design Center. During fiscal 2019, the Company recorded $1.7 million of restructuring and impairment charges in the Company's AMER segment. These charges are recorded within restructuring and impairment charges on the Consolidated Statements of Comprehensive Income. Restructuring liabilities are recorded within other accrued liabilities on the Consolidated Balance Sheets. The Company incurred no restructuring and impairment charges during fiscal 2018. The Company recognized a tax benefit of $0.6 million and $0.2 million related to restructuring and impairment charges in fiscal 2020 and fiscal 2019, respectively. No income tax benefit was recognized in fiscal 2018. The Company's restructuring accrual activity for the years ended October 3, 2020 and September 28, 2019 is included in the table below (in thousands): Fixed Asset and Operating Right-of-Use Asset Impairment Employee Termination and Severance Costs Total Accrual balance, as of September 29, 2018 $ — $ — $ — Restructuring and impairment costs — 1,678 1,678 Amounts utilized — (381) (381) Accrual balance, as of September 28, 2019 $ — $ 1,297 $ 1,297 Restructuring and impairment costs 3,054 2,949 6,003 Amounts utilized (3,054) (4,210) (7,264) Accrual balance, as of October 3, 2020 $ — $ 36 $ 36 |
Acquisition
Acquisition | 12 Months Ended |
Oct. 03, 2020 | |
Acquisition [Abstract] | |
Acquisition | AcquisitionOn July 27, 2018, the Company purchased the assets of one of the business lines of Cascade Controls, Inc. ("Cascade"), a new product introduction company in Portland, Oregon, for $12.4 million in cash, subject to certain customary post-closing adjustments. In the three months ended December 29, 2018, the Company received a $1.2 million purchase price adjustment as a result of a post-closing adjustment. Plexus acquired substantially all of the inventory, equipment and other assets of the business line, hired a majority of its employees and sub-leased one of Cascade's facilities. This transaction has been accounted for as a business combination.The acquisition resulted in a $12.4 million cash outflow in fiscal 2018 and a $1.2 million cash inflow in fiscal 2019 included in "Business acquisition" in the accompanying Consolidated Statements of Cash Flows. Additionally, $5.7 million, $6.9 million $8.2 million of intangible assets related to customer relationships is included in non-current "Other" assets in the accompanying Consolidated Balance Sheet for fiscal 2020, 2019 and 2018, respectively. The intangible assets are amortized on a straight-line basis and result in amortization expense of approximately $1.2 million per year. There were no other material impacts to the Company's Consolidated Financial Statements as a result of the acquisition. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Oct. 03, 2020 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The following is summarized quarterly financial data for fiscal 2020 and 2019 (in thousands, except per share amounts): 2020 First Second Third Fourth Total Net sales $ 852,409 $ 767,364 $ 857,394 $ 913,227 $ 3,390,394 Gross profit 79,190 61,445 82,881 89,190 312,706 Net income (2,3) 31,006 12,926 35,842 37,705 117,479 Earnings per share (1) : Basic 1.06 0.44 1.23 1.29 4.02 Diluted (7) 1.03 0.43 1.20 1.26 $ 3.93 2019 First Second Third Fourth Total Net sales $ 765,544 $ 789,051 $ 799,644 $ 810,195 $ 3,164,434 Gross profit 72,383 70,636 71,030 77,789 291,838 Net income (4,5,6) 22,226 24,758 24,801 36,831 108,616 Earnings per share (1) : Basic 0.71 0.81 0.83 1.26 3.59 Diluted (8) 0.69 0.79 0.81 1.23 3.50 (1) The annual total amounts may not equal the sum of the quarterly amounts due to rounding. Earnings per share is computed independently for each quarter and annually. (2) The first quarter of fiscal 2020 results included $1.9 million in tax benefits related to U.S. foreign tax credit regulations issued during the quarter, partially offset by $1.1 million of tax expense as a result of special tax items. (3) The second quarter of fiscal 2020 results included restructuring and impairment charges of $6.0 million, or $5.4 million net of taxes, in the AMER operating segment due to the closure of the Boulder Design Center. (4) The first quarter of fiscal 2019 results included $7.0 million of tax expense as a result of new regulations issued under U.S. Tax Reform. These regulations impacted the treatment of foreign taxes paid. (5) The fourth quarter of fiscal 2019 results included restructuring charges of $1.7 million, or $1.5 million net of taxes, in the AMER operating segment. (6) The fourth quarter of fiscal 2019 results included a benefit of $10.5 million due to the permanent reinvestment assertion of certain historical undistributed earnings of two foreign subsidiaries. (7) The first quarter of fiscal 2020 included $0.03 per share tax benefit resulting from special tax items. The second quarter of fiscal 2020 included $0.18 per share of expense related to restructuring costs. (8) The first quarter of fiscal 2019 included $0.23 per share of tax expense as a result of U.S. Tax Reform. The fourth quarter of fiscal 2019 included $0.05 per share of expense related to restructuring costs and $0.35 per share tax benefit resulting from the permanent reinvestment assertion of certain historical undistributed earnings of two foreign subsidiaries. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Oct. 03, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventOn November 18, 2020, the Board of Directors approved an additional $50.0 million in share repurchase authority under its existing 2021 Program, which commenced on October 19, 2020, upon completion of the 2019 Program, to authorize a total of $100.0 million in share repurchase authority under the program. The 2021 Program has no expiration. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Oct. 03, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II – Valuation and Qualifying Accounts For the fiscal years ended October 3, 2020, September 28, 2019 and September 29, 2018 (in thousands): Descriptions Balance at beginning of period Additions charged to costs and expenses Additions charged to other accounts Deductions Balance at end of period Fiscal Year 2020: Allowance for losses on accounts receivable (deducted from the asset to which it relates) $ 1,537 $ 4,051 $ — $ (1,991) $ 3,597 Valuation allowance on deferred income tax assets (deducted from the asset to which it relates) $ 29,170 $ 5,778 $ — $ — $ 34,948 Fiscal Year 2019: Allowance for losses on accounts receivable (deducted from the asset to which it relates) $ 885 $ 1,189 $ — $ (537) $ 1,537 Valuation allowance on deferred income tax assets (deducted from the asset to which it relates) $ 28,369 $ 2,213 $ — $ (1,412) $ 29,170 Fiscal Year 2018: Allowance for losses on accounts receivable (deducted from the asset to which it relates) $ 980 $ 380 $ — $ (475) $ 885 Valuation allowance on deferred income tax assets (deducted from the asset to which it relates) $ 61,668 $ 1,107 $ — $ (34,406) $ 28,369 |
Description of Business and S_2
Description of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Oct. 03, 2020 | |
Accounting Policies [Abstract] | |
Consolidation Principles | Consolidation Principles and Basis of Presentation: The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") and include the accounts of Plexus Corp. and its subsidiaries. All intercompany transactions have been eliminated. Certain prior period amounts have been reclassified to conform to the current period presentation. The Company’s fiscal year ends on the Saturday closest to September 30. The Company also uses a "4-4-5" weekly accounting system for the interim periods in each quarter. Each quarter, therefore, ends on a Saturday at the end of the 4-4-5 period. Periodically, an additional week must be added to the fiscal year to re-align with the Saturday closest to September 30. Fiscal 2020 includes 53 weeks; therefore the first quarter of fiscal 2020 included 14 weeks while all other fiscal quarters presented herein included 13 weeks. Fiscal 2019 and fiscal 2018 each included 52 weeks. |
Basis of Presentation | Consolidation Principles and Basis of Presentation: The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") and include the accounts of Plexus Corp. and its subsidiaries. All intercompany transactions have been eliminated. Certain prior period amounts have been reclassified to conform to the current period presentation. The Company’s fiscal year ends on the Saturday closest to September 30. The Company also uses a "4-4-5" weekly accounting system for the interim periods in each quarter. Each quarter, therefore, ends on a Saturday at the end of the 4-4-5 period. Periodically, an additional week must be added to the fiscal year to re-align with the Saturday closest to September 30. Fiscal 2020 includes 53 weeks; therefore the first quarter of fiscal 2020 included 14 weeks while all other fiscal quarters presented herein included 13 weeks. Fiscal 2019 and fiscal 2018 each included 52 weeks. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash: Cash equivalents include short-term highly liquid investments and are classified as Level 1 in the fair value hierarchy described below. Restricted cash represents cash received from customers to settle invoices sold under accounts receivable purchase agreements that is contractually required to be set aside. The restrictions will lapse when the cash is remitted to the purchaser of the receivables. Restricted cash is also classified as Level 1 in the fair value hierarchy described below. As of October 3, 2020 and September 28, 2019, cash and cash equivalents and restricted cash consisted of the following (in thousands): 2020 2019 Cash $ 121,320 $ 85,688 Money market demand accounts and other 264,487 138,073 Restricted cash 2,087 2,493 Total cash and cash equivalents and restricted cash $ 387,894 $ 226,254 |
Inventories | Inventories: Inventories are valued at the lower of cost or market. Cost is determined by the first-in, first-out ("FIFO") method. Valuing inventories at the lower of cost or market requires the use of estimates and judgment. Customers may cancel their orders, change production quantities or delay production for a number of reasons that are beyond the Company’s control. Any of these, or certain additional actions, could impact the valuation of inventory. Any actions taken by the Company’s customers that could impact the value of its inventory are considered when determining the lower of cost or market valuations. In certain instances, in accordance with contractual terms, the Company receives customer deposits to offset obsolete and excess inventory risks. |
Property, Plant and Equipment and Depreciation | Property, Plant and Equipment and Depreciation: Property, plant and equipment is stated at cost and depreciated using the straight-line method over the estimated useful lives of the respective assets. Estimated useful lives for major classes of depreciable assets are generally as follows: Buildings and improvements 5-39 years Machinery and equipment 3-7 years Computer hardware and software 3-10 years Certain facilities and equipment held under finance leases are classified as property, plant and equipment and amortized using the straight-line method over the term of the lease and the related obligations are recorded as liabilities. Amortization of assets held under finance leases is included in depreciation expense (see Note 3, "Property, Plant and Equipment") and the financing component of the lease payments is classified as interest expense. Maintenance and repairs are expensed as incurred. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets: Long-lived assets, including property, plant and equipment, operating lease right-of-use assets and intangible assets with finite lives are reviewed for impairment and written down to fair value when facts and circumstances indicate that the carrying value of long-lived assets or asset groups may not be recoverable through estimated future undiscounted cash flows. If an impairment has occurred, a write-down to estimated fair value is made and the impairment loss is recognized as a charge against current operations. The impairment analysis is based on management’s assumptions, including future revenue and cash flow projections. Circumstances that may lead to impairment of property, plant and equipment and intangible assets with finite lives include reduced expectations for future performance or industry demand and possible further restructurings, among others. |
Revenue Recognition | Revenue Recognition: Revenue is recognized over time for arrangements with customers for which: (i) the Company's performance does not create an asset with an alternative use to the Company, and (ii) the Company has an enforceable right to payment, including reasonable profit margin, for performance completed to date. Revenue recognized over time is estimated based on costs incurred to date plus a reasonable profit margin. If either of the two conditions noted above are not met to recognize revenue over time, revenue is recognized following the transfer of control of such products to the customer, which typically occurs upon shipment or delivery depending on the terms of the underlying arrangement. The Company recognizes revenue when a contract exists and when, or as, it satisfies a performance obligation by transferring control of a product or service to a customer. Contracts are accounted for when they have approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. The Company generally enters into a master services arrangement that establishes the framework under which business will be conducted. These arrangements represent the master terms and conditions of the Company's services that apply to individual orders, but they do not commit the customer to work with, or to continue to work with, the Company nor do they obligate the customer to any specific volume or pricing of purchases. Moreover, these terms can be amended in appropriate situations. Customer purchase orders are received for specific quantities with predominantly fixed pricing and delivery requirements. Thus, for the majority of our contracts, there is no guarantee of any revenue to the Company until a customer submits a purchase order. As a result, the Company generally considers its arrangement with a customer to be the combination of the master services arrangement and the purchase order. Most of the Company's arrangements with customers create a single performance obligation as the promise to transfer the individual manufactured product or service is capable of being distinct. The Company’s performance obligations are satisfied over time as work progresses or at a point in time. A performance obligation is satisfied over time if the Company has an enforceable right to payment, including a reasonable profit margin. Determining if an enforceable right to payment includes a reasonable profit margin requires judgment and is assessed on a contract by contract basis. If an enforceable right to payment for work-in-process does not exist, revenue is recognized following the transfer of control of such products to the customer, which typically occurs upon shipment or delivery depending on the terms of the underlying contract. For contracts requiring over time revenue recognition, the selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. The Company uses a cost-based input measurement of progress because it best depicts the transfer of assets to the customer, which occurs as costs are incurred during the manufacturing process or as services are rendered. Under the cost-based measure of progress, the extent of progress towards completion is measured based on the costs incurred to date. Generally, there are no subjective customer acceptance requirements or further obligations related to goods or services provided; if such requirements or obligations exist, then a sale is recognized at the time when such requirements are completed and such obligations are fulfilled. The Company does not allow for a general right of return. Net sales include amounts billed to customers for shipping and handling and out-of-pocket expenses. The corresponding shipping and handling costs and out-of-pocket expenses are included in cost of sales. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from net sales. Net sales from engineering design and development services, which are generally performed under contracts with a duration of twelve months or less, are typically recognized as program costs are incurred by utilizing the proportional performance model. The completed performance model is used if certain customer acceptance criteria exist. Any losses are recognized when anticipated. Net sales from engineering design and development services were less than 5.0% of consolidated net sales for each of fiscal 2020, 2019 and 2018. |
Income Taxes | Income Taxes: Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company maintains valuation allowances when it is more likely than not that all or a portion of a deferred tax asset will not be realized. In determining whether a valuation allowance is required, the Company takes into account such factors as prior earnings history, expected future earnings, carryback and carryforward periods, and tax strategies that could potentially enhance the likelihood of the realization of a deferred tax asset. |
Foreign Currency Translation and Transactions | Foreign Currency Translation & Transactions: The Company translates assets and liabilities of subsidiaries operating outside of the U.S. with a functional currency other than the U.S. dollar into U.S. dollars using exchange rates in effect at the relevant balance sheet date and net sales, expenses and cash flows at the average exchange rates during the respective periods. Adjustments resulting from translation of the financial statements are recorded as a component of "Accumulated other comprehensive loss." Exchange gains and losses arising from transactions denominated in a currency other than the functional currency of the entity involved and remeasurement adjustments for foreign operations where the U.S. dollar is the functional currency are included in the Consolidated Statements of Comprehensive Income as a component of "Miscellaneous, net." Exchange (losses) gains on foreign currency transactions were $(0.4) million, $0.5 million and $1.2 million for fiscal 2020, 2019 and 2018, respectively. These amounts include the amount of gain recognized in income during each fiscal year due to forward currency exchange contracts entered into to hedge recognized assets or liabilities ("non-designated hedges") the Company entered into during each respective year. Refer to Note 5, "Derivatives and Fair Value Measurements," for further details on derivatives. |
Derivatives | Derivatives: All derivatives are recognized on the balance sheets at fair value. The Company periodically enters into forward currency exchange contracts and interest rate swaps. On the date a derivative contract is entered into, the Company designates the derivative as a non-designated hedge or a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (a "cash flow" hedge). The Company does not enter into derivatives for speculative purposes. Changes in the fair value of non-designated derivatives are recorded in earnings as are the gains or losses related to the hedged asset or liability. Changes in the fair value of a derivative that qualifies as a cash flow hedge are recorded in "Accumulated other comprehensive loss" within shareholders' equity, until earnings are affected by the variability of cash flows. Certain forward currency exchange contracts are treated as cash flow hedges and, therefore, $1.8 million, $1.1 million and $(3.9) million was recorded in "Accumulated other comprehensive loss" for fiscal 2020, 2019 and 2018, respectively. See Note 5, "Derivatives and Fair Value Measurements," for further information. |
Earnings Per Share | Earnings Per Share: The computation of basic earnings per common share is based upon the weighted average number of common shares outstanding and net income. The computation of diluted earnings per common share reflects additional dilution from share-based awards, excluding any with an antidilutive effect. See Note 7, "Earnings Per Share," for further information. |
Share-based Compensation | Share-based Compensation: The Company measures all grants of share-based payments to employees, including grants of employee stock options, at fair value and expenses them in the Consolidated Statements of Comprehensive Income over the service period (generally the vesting period) of the grant. See Note 9, "Benefit Plans," for further information. |
Comprehensive Income (Loss) | Comprehensive Income (Loss): The Company follows the established standards for reporting comprehensive income (loss), which is defined as the changes in equity of an enterprise except those resulting from shareholder transactions. Accumulated other comprehensive loss consists of the following as of October 3, 2020 and September 28, 2019 (in thousands): 2020 2019 Foreign currency translation adjustments $ (6,501) $ (17,395) Cumulative change in fair value of derivative instruments 1,442 (389) Accumulated other comprehensive loss $ (5,059) $ (17,784) Refer to Note 5, "Derivatives and Fair Value Measurements," for further explanation regarding the change in fair value of derivative instruments that is recorded to "Accumulated other comprehensive loss." |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: The Company holds financial instruments consisting of cash and cash equivalents, restricted cash, accounts receivable, certain deferred compensation assets held under trust arrangements, accounts payable, debt, derivatives, and finance and operating lease obligations. The carrying values of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and finance and operating lease obligations as reported in the consolidated financial statements approximate fair value. Derivatives and certain deferred compensation assets held under trust arrangements are recorded at fair value. Accounts receivable are reflected at net realizable value based on anticipated losses due to potentially uncollectible balances. Anticipated losses are based on management’s analysis of historical losses and changes in customers’ credit status. The fair value of the Company’s debt was $299.3 million and $252.3 million as of October 3, 2020 and September 28, 2019, respectively. The carrying value of the Company's debt was $288.0 million and $245.0 million as of October 3, 2020 and September 28, 2019, respectively. The Company uses quoted market prices when available or discounted cash flows to calculate fair value. If measured at fair value in the financial statements, long-term debt (including the current portion) would be classified as Level 2 in the fair value hierarchy described below. The fair values of the Company’s derivatives are disclosed in Note 5, "Derivatives and Fair Value Measurements." The fair values of the deferred compensation assets held under trust arrangements are discussed in Note 9, "Benefit Plans." Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (or exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The accounting guidance establishes a fair value hierarchy based on three levels of inputs that may be used to measure fair value. The input levels are: Level 1: Quoted (observable) market prices in active markets for identical assets or liabilities. Level 2: Inputs other than Level 1 that are observable, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the asset or liability. |
Business and Credit Concentrations | Business and Credit Concentrations: Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash, cash equivalents, trade accounts receivable and derivative instruments, specifically related to counterparties. In accordance with the Company’s investment policy, the Company’s cash, cash equivalents and derivative instruments were placed with recognized financial institutions. The Company’s investment policy limits the amount of credit exposure in any one issue and the maturity date of the investment securities that typically comprise investment grade short-term debt instruments. Concentrations of credit risk in accounts receivable resulting from sales to major customers are discussed in Note 11, "Reportable Segments, Geographic Information and Major Customers". The Company, at times, requires cash deposits for services performed. The Company also closely monitors extensions of credit. |
Recently Adopted Accounting Pronouncements & Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements: In May 2014, the FASB issued ASU 2014-09, which requires an entity to recognize revenue relating to contracts with customers that depicts the transfer of promised goods or services to customers in an amount reflecting the consideration to which the entity expects to be entitled in exchange for such goods or services ("Topic 606"). On September 30, 2018, the Company adopted and applied Topic 606 to all contracts using the modified retrospective method of adoption. Upon adoption, the Company recognized an increase to its fiscal 2019 beginning Retained Earnings balance of $7.8 million. In February 2016, the FASB issued ASU 2016-02 (“Topic 842”), which is intended to improve financial reporting of lease transactions by requiring lessees to recognize most leases as a right-of-use (“ROU”) asset and lease liability on their balance sheets for the rights and obligations created by leases, but record expenses on their income statements in a similar manner. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. ASU 2016-02 also requires disclosures regarding the amount, timing and judgments related to accounting for an entity’s leases and related cash flows. On September 29, 2019, the Company adopted Topic 842 using the modified retrospective method of adoption, which allows financial information for comparative periods prior to adoption not to be updated. The Company recognized right-of-use assets and operating lease liabilities on its Consolidated Balance Sheets, but the standard did not have a material impact on its Consolidated Statements of Comprehensive Income or Consolidated Statements of Cash Flows. Topic 842 provides optional practical expedients to assist with transition to the new standard. Management elected the package of practical expedients offered, which allows entities to not reassess: (i) whether any contracts prior to the adoption date are or contain leases, (ii) lease classification, and (iii) whether capitalized initial direct costs continue to meet the definition of initial direct costs under the new guidance. For all new and modified leases after adoption, management elected the short-term lease recognition exemption for all of the Company’s leases that qualify, in addition to the practical expedient to not separate lease and nonlease components. Refer to Note 8, "Leases," for further information. In August 2017, the FASB issued ASU 2017-12 related to the accounting for hedging activities. The pronouncement expands and refines hedge accounting, aligns the recognition and presentation of the effects of hedging instruments and hedge items in the financial statements, and includes certain targeted improvements to ease the application of current guidance related to the assessment of hedge effectiveness. The Company adopted this guidance during the first quarter of fiscal 2020 with no material impact to the Company's Consolidated Financial Statements; however, the impact of the new standard on future periods will depend on the facts and circumstances of future transactions. Recently Issued Accounting Pronouncements Not Yet Adopted: In June 2016, the FASB issued ASU 2016-13, which replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and required consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This guidance is effective for the Company beginning in the first quarter of fiscal year 2021. Early adoption is permitted. The Company plans to adopt this methodology the first quarter of fiscal 2021 and does not expect a material impact on its Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, which provides guidance in accounting for contracts, hedging relationships, and other transactions that are affected by reference rate reform. The amendments in this update are elective and were effective immediately upon issuance. The Company is currently in the process of assessing the impacts of reference rate reform but does not expect this standard to have a material impact on its Consolidated Financial Statements. The Company believes that no other recently issued accounting standards will have a material impact on its Consolidated Financial Statements, or apply to its operations. |
Description of Business and S_3
Description of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Oct. 03, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | As of October 3, 2020 and September 28, 2019, cash and cash equivalents and restricted cash consisted of the following (in thousands): 2020 2019 Cash $ 121,320 $ 85,688 Money market demand accounts and other 264,487 138,073 Restricted cash 2,087 2,493 Total cash and cash equivalents and restricted cash $ 387,894 $ 226,254 |
Schedule of Restricted Cash and Cash Equivalents | As of October 3, 2020 and September 28, 2019, cash and cash equivalents and restricted cash consisted of the following (in thousands): 2020 2019 Cash $ 121,320 $ 85,688 Money market demand accounts and other 264,487 138,073 Restricted cash 2,087 2,493 Total cash and cash equivalents and restricted cash $ 387,894 $ 226,254 |
Schedule of Property, Plant and Equipment | Estimated useful lives for major classes of depreciable assets are generally as follows: Buildings and improvements 5-39 years Machinery and equipment 3-7 years Computer hardware and software 3-10 years Property, plant and equipment as of October 3, 2020 and September 28, 2019 consisted of the following (in thousands): 2020 2019 Land, buildings and improvements $ 334,083 $ 289,051 Machinery and equipment 403,894 381,656 Computer hardware and software 147,723 136,227 Capital assets in progress 16,279 49,599 Total property, plant and equipment, gross 901,979 856,533 Less: accumulated depreciation (518,318) (472,309) Total property, plant and equipment, net $ 383,661 $ 384,224 |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consists of the following as of October 3, 2020 and September 28, 2019 (in thousands): 2020 2019 Foreign currency translation adjustments $ (6,501) $ (17,395) Cumulative change in fair value of derivative instruments 1,442 (389) Accumulated other comprehensive loss $ (5,059) $ (17,784) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Oct. 03, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories as of October 3, 2020 and September 28, 2019 consisted of the following (in thousands): 2020 2019 Raw materials $ 630,833 $ 577,545 Work-in-process 53,602 49,315 Finished goods 79,026 74,078 Total inventories, net $ 763,461 $ 700,938 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Oct. 03, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Estimated useful lives for major classes of depreciable assets are generally as follows: Buildings and improvements 5-39 years Machinery and equipment 3-7 years Computer hardware and software 3-10 years Property, plant and equipment as of October 3, 2020 and September 28, 2019 consisted of the following (in thousands): 2020 2019 Land, buildings and improvements $ 334,083 $ 289,051 Machinery and equipment 403,894 381,656 Computer hardware and software 147,723 136,227 Capital assets in progress 16,279 49,599 Total property, plant and equipment, gross 901,979 856,533 Less: accumulated depreciation (518,318) (472,309) Total property, plant and equipment, net $ 383,661 $ 384,224 |
Schedule of Assets Held Under Finance Leases and Included in Property, Plant and Equipment | Assets held under finance leases and included in property, plant and equipment as of October 3, 2020 and September 28, 2019 consisted of the following (in thousands): 2020 2019 Buildings and improvements $ 35,360 $ 23,717 Machinery and equipment 11,374 12,293 Capital assets in progress — 11,831 Total property, plant and equipment held under finance leases, gross 46,734 47,841 Less: accumulated amortization (10,326) (8,762) Total property, plant and equipment held under finance leases, net $ 36,408 $ 39,079 |
Debt, Finance Lease Obligatio_2
Debt, Finance Lease Obligations and Other Financing (Tables) | 12 Months Ended |
Oct. 03, 2020 | |
Debt and Lease Obligation [Abstract] | |
Schedule of Debt, Finance Lease Obligations and Other Financing | Debt and finance lease obligations as of October 3, 2020 and September 28, 2019, consisted of the following (in thousands): 2020 2019 4.05% Senior Notes, due June 15, 2025 $ 100,000 $ 100,000 4.22% Senior Notes, due June 15, 2028 50,000 50,000 Borrowings under the credit facility — 95,000 Term loans, due April 28, 2021 138,000 — Finance lease and other financing obligations 48,435 44,492 Unamortized deferred financing fees (1,631) (1,512) Total obligations 334,804 287,980 Less: current portion (146,829) (100,702) Long-term debt and finance lease obligations, net of current portion $ 187,975 $ 187,278 |
Schedule of Aggregate Scheduled Maturities of Debt Obligations | The aggregate scheduled maturities of the Company’s debt obligations as of October 3, 2020, are as follows (in thousands): 2021 $ 138,000 2022 — 2023 — 2024 — 2025 100,000 Thereafter 50,000 Total $ 288,000 |
Schedule Of Future Minimum Lease Payments For Finance Leases and Other Financing Obligations | The aggregate scheduled maturities of the Company’s finance leases and other financing obligations as of October 3, 2020, are as follows (in thousands): 2021 $ 8,829 2022 4,219 2023 2,320 2024 522 2025 568 Thereafter 31,977 Total $ 48,435 |
Derivatives and Fair Value Me_2
Derivatives and Fair Value Measurements (Tables) | 12 Months Ended |
Oct. 03, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Values of Derivative Instruments | The tables below present information regarding the fair values of derivative instruments (as defined in Note 1, "Description of Business and Significant Accounting Policies") and the effects of derivative instruments on the Company’s Consolidated Financial Statements: Fair Values of Derivative Instruments (in thousands) Derivative Assets Derivative Liabilities October 3, September 28, October 3, September 28, Derivatives designated as hedging instruments Balance sheet Fair Value Fair Value Balance sheet Fair Value Fair Value Foreign currency forward contracts Prepaid expenses and other $ 1,830 $ 156 Other accrued liabilities $ 641 $ 798 Fair Values of Derivative Instruments (in thousands) Derivative Assets Derivative Liabilities October 3, September 28, October 3, September 28, Derivatives not designated as hedging instruments Balance sheet Fair Value Fair Value Balance sheet Fair Value Fair Value Foreign currency forward contracts Prepaid expenses and other $ 70 $ 912 Other accrued liabilities $ 58 $ 54 |
Schedule of Derivative Impact on Accumulated Other Comprehensive (Loss) Income | The Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Loss ("OCL") (in thousands) for the Twelve Months Ended Derivatives in cash flow hedging relationships Amount of Gain (Loss) Recognized in OCL on Derivatives October 3, 2020 September 28, 2019 September 29, 2018 Foreign currency forward contracts $ 446 $ (629) $ 2,579 |
Schedule of Derivative Impact on (Loss) Gain Recognized in Income | Derivative Impact on (Loss) Gain Recognized in Consolidated Statements of Comprehensive Income (in thousands) for the Twelve Months Ended Derivatives in cash flow hedging relationships Classification of (Loss) Gain Reclassified from Accumulated OCL into Income Amount of (Loss) Gain Reclassified from Accumulated OCL into Income October 3, 2020 September 28, 2019 September 29, 2018 Foreign currency forward contracts Cost of sales $ (1,278) $ (1,506) $ 5,676 Foreign currency forward contracts Selling and administrative expenses $ (107) $ (173) $ 619 Treasury rate locks Interest expense $ — $ — $ 226 |
Schedule of Amount of Gain (Loss) on Derivatives Recognized in Income | Derivatives not designated as hedging instruments Location of (Loss) Gain Recognized on Derivatives in Income Amount of (Loss) Gain on Derivatives Recognized in Income October 3, 2020 September 28, 2019 September 29, 2018 Foreign currency forward contracts Miscellaneous, net $ (330) $ 2,098 $ 263 |
Schedule of Derivatives Fair Value Measurements Using Input Levels | The following table lists the fair values of assets of the Company’s derivatives as of October 3, 2020 and September 28, 2019, by input level: Fair Value Measurements Using Input Levels Asset (in thousands) Fiscal year ended October 3, 2020 Level 1 Level 2 Level 3 Total Derivatives Foreign currency forward contracts $ — $ 1,201 $ — $ 1,201 Fiscal year ended September 28, 2019 Derivatives Foreign currency forward contracts $ — $ 216 $ — $ 216 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Oct. 03, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Domestic and Foreign Components of Income (Loss) Before Income Taxes | The domestic and foreign components of income (loss) before income tax expense for fiscal 2020, 2019 and 2018 were as follows (in thousands): 2020 2019 2018 U.S. (1) $ (69,102) $ (42,806) $ (53,243) Foreign (1) 204,499 168,761 160,853 $ 135,397 $ 125,955 $ 107,610 (1) The U.S. and Foreign components of income (loss) before income tax expense include the elimination of intercompany foreign dividends paid to the Company's U.S. operations. |
Schedule of Income Tax Expense (Benefit) | Income tax expense (benefit) for fiscal 2020, 2019 and 2018 were as follows (in thousands): 2020 2019 2018 Current: Federal $ 8,779 $ 15,160 $ 63,814 State 23 — 234 Foreign 12,699 11,943 10,134 21,501 27,103 74,182 Deferred: Federal (6,498) (3,498) (2,958) State 3 827 (447) Foreign 2,912 (7,093) 23,793 (3,583) (9,764) 20,388 $ 17,918 $ 17,339 $ 94,570 |
Schedule of Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rates | The following is a reconciliation of the federal statutory income tax rate to the effective income tax rates reflected in the Consolidated Statements of Comprehensive Income for fiscal 2020, 2019 and 2018: 2020 2019 2018 Federal statutory income tax rate 21.0 % 21.0 % 24.5 % (Decrease) increase resulting from: Foreign tax rate differences (24.0) (21.0) (30.2) Withholding tax on dividends 1.9 (5.4) 23.7 Permanent differences (2.6) (1.3) 0.8 Excess tax benefits related to share-based compensation (3.0) (1.3) (2.7) Global intangible low-taxed income ("GILTI") 13.8 11.7 — Deemed repatriation tax — 5.6 92.2 Non-deductible compensation 2.2 1.5 0.2 Valuation allowances 3.6 1.5 (30.6) Rate changes — — 9.0 Other, net 0.3 1.5 1.0 Effective income tax rate 13.2 % 13.8 % 87.9 % |
Schedule of Components of Net Deferred Income Tax Assets (Liabilities) | The components of the net deferred income tax assets as of October 3, 2020 and September 28, 2019, were as follows (in thousands): 2020 2019 Deferred income tax assets: Loss/credit carryforwards $ 31,854 $ 28,391 Inventories 14,450 16,809 Accrued employee benefits 14,833 15,834 Accrued liabilities 7,015 — Other 5,434 3,353 Total gross deferred income tax assets 73,586 64,387 Less valuation allowances (34,948) (29,170) Deferred income tax assets 38,638 35,217 Deferred income tax liabilities: Property, plant and equipment 14,282 15,621 Tax on unremitted earnings 5,339 5,192 Acceleration of revenue under Topic 606 4,028 6,055 Deferred income tax liabilities 23,649 26,868 Net deferred income tax assets/(liabilities) $ 14,989 $ 8,349 |
Schedule of Reconciliation of Beginning And Ending Amounts of Unrecognized Income Tax Benefits | The following is a reconciliation of the beginning and ending amounts of unrecognized income tax benefits (in thousands): 2020 2019 2018 Balance at beginning of fiscal year $ 2,270 $ 5,841 $ 3,115 Gross increases for tax positions of prior years 509 62 21 Gross increases for tax positions of the current year 465 39 2,893 Gross decreases for tax positions of prior years (1,148) (3,672) (188) Balance at end of fiscal year $ 2,096 $ 2,270 $ 5,841 |
Schedule of Years That Remain Subject to Examination by Major Tax Jurisdictions | The Company files income tax returns, including returns for its subsidiaries, with federal, state, local and foreign taxing jurisdictions. The following tax years remain subject to examination by the respective major tax jurisdictions: Jurisdiction Fiscal Years China 2015-2020 Germany 2015-2020 Malaysia 2016-2020 Mexico 2014-2020 Romania 2014-2020 United Kingdom 2017-2020 United States Federal 2015, 2017-2020 State 2003-2006, 2009-2020 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Oct. 03, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of Amounts Utilized in Computation of Basic and Diluted Earnings Per Share | The following is a reconciliation of the amounts utilized in the computation of basic and diluted earnings per share for fiscal 2020, 2019 and 2018 (in thousands, except per share amounts): 2020 2019 2018 Net income $ 117,479 $ 108,616 $ 13,040 Basic weighted average common shares outstanding 29,195 30,271 33,003 Dilutive effect of share-based awards and options outstanding 721 803 916 Diluted weighted average shares outstanding 29,916 31,074 33,919 Earnings per share: Basic $ 4.02 $ 3.59 $ 0.40 Diluted $ 3.93 $ 3.50 $ 0.38 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Oct. 03, 2020 | |
Leases [Abstract] | |
Schedule of Impacts of Adoption of New Accounting Prouncements | As a result of the adoption, the following adjustments were made to the opening balances of the Company's Consolidated Balance Sheets (in thousands): September 28, 2019 Impacts due to adoption of Topic 842 September 29, 2019 ASSETS Prepaid expenses and other $ 31,974 $ (170) $ 31,804 Operating right-of-use assets — 75,790 75,790 Property, plant and equipment, net 384,224 (1,833) 382,391 Deferred income taxes 13,654 432 14,086 Other non-current assets 64,714 (30,193) 34,521 LIABILITIES AND SHAREHOLDERS' EQUITY Other accrued liabilities $ 106,461 $ 7,939 $ 114,400 Long-term debt and finance lease obligations, net of current portion 187,278 (207) 187,071 Long-term operating lease liabilities — 37,371 37,371 Retained earnings 1,178,677 (1,077) 1,177,600 |
Schedule of Lease Expense and Other Information | The components of lease expense for fiscal year 2020 were as follows (in thousands): 2020 Finance lease expense: Amortization of right-of-use assets $ 4,380 Interest on lease liabilities 4,956 Operating lease expense 11,707 Other lease expense 3,401 Total $ 24,444 Other information related to the Company’s leases was as follows: October 3, 2020 Weighted-average remaining lease term (in years) Finance leases 12.8 Operating leases 18.5 Weighted-average discount rate Finance leases 17.7 % Operating leases 3.0 % October 3, 2020 Cash paid for amounts included in the measurement of lease liabilities (in thousands) Operating cash flows used in finance leases $ 4,539 Operating cash flows used in operating leases 10,907 Finance cash flows used in finance leases 3,321 ROU assets obtained in exchange for lease liabilities (in thousands) Operating leases $ 7,692 Finance leases 2,835 |
Schedule of Lease Assets and Liabilities | The following tables sets forth the amount of lease assets and lease liabilities included in the Company’s Consolidated Balance Sheets (in thousands): Financial Statement Line Item October 3, 2020 ASSETS Finance lease assets Property, plant and equipment, net $ 36,408 Operating lease assets Operating lease right-of-use assets 69,879 Total lease assets $ 106,287 LIABILITIES AND SHAREHOLDERS' EQUITY Current Finance lease liabilities Current portion of long-term debt and finance lease obligations $ 2,700 Operating lease liabilities Other accrued liabilities 7,724 Non-current Finance lease liabilities Long-term debt and finance lease obligations, net of current portion 37,033 Operating lease liabilities Long-term operating lease liabilities 36,779 Total lease liabilities $ 84,236 |
Schedule of Future Minimum Lease Payments | Future minimum lease payments required under finance and operating leases as of October 3, 2020, were as follows (in thousands): Operating leases Finance leases 2021 $ 8,973 $ 7,233 2022 8,144 7,045 2023 7,674 5,896 2024 6,021 4,994 2025 4,505 5,092 Thereafter 16,136 93,525 Total minimum lease payments 51,453 123,785 Less: imputed interest (6,950) (84,052) Present value of lease liabilities $ 44,503 $ 39,733 |
Schedule of Future Minimum Lease Payments (Prior to Adoption) | Future minimum lease payments required under long-term operating and capital leases as of September 28, 2019, were as follows (in thousands): Operating leases Capital leases 2020 $ 10,395 $ 6,734 2021 6,554 3,490 2022 5,584 2,884 2023 5,153 1,652 2024 3,713 958 Thereafter 9,426 34,143 Total $ 40,825 $ 49,861 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Oct. 03, 2020 | |
Compensation Related Costs [Abstract] | |
Schedule of Stock Option and SARs Activity | A summary of the Company’s stock option and SAR activity follows: Number of Options/SARs (in thousands) Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Outstanding as of September 30, 2017 972 $ 36.23 Granted — — Canceled (4) 31.62 Exercised (414) 35.01 Outstanding as of September 29, 2018 554 $ 37.18 Granted — — Canceled (2) 26.96 Exercised (88) 31.55 Outstanding as of September 28, 2019 464 $ 38.28 Granted — — Canceled (16) 31.74 Exercised (325) 39.78 Outstanding as of October 3, 2020 123 $ 35.12 $ 4,393 Number of Options/SARs (in thousands) Weighted Average Exercise Price Weighted Average Remaining Life (years) Aggregate Intrinsic Value (in thousands) Exercisable as of: September 29, 2018 537 $ 36.92 September 28, 2019 464 $ 38.28 October 3, 2020 123 $ 35.12 3.24 $ 4,393 |
Schedule of Stock Option and SARs Information | The following table summarizes outstanding stock option and SAR information as of October 3, 2020 (Options/SARs in thousands): Range of Exercise Prices Number of Options/SARs Outstanding (in thousands) Weighted Average Exercise Price Weighted Average Remaining Life Number of Options / SARs Exercisable (in thousands) Weighted Average Exercise Price $25.33 - $27.86 35 $ 26.24 2.21 35 $ 26.24 $27.87 - $36.79 33 $ 33.97 2.70 33 $ 33.97 $36.80 - $41.01 32 $ 39.57 3.63 32 $ 39.57 $41.02 - $45.45 23 $ 44.33 5.09 23 $ 44.33 $25.33 - $45.45 123 $ 35.12 3.24 123 $ 35.12 |
Schedule of PSU and RSU Activity | A summary of the Company’s PSU and RSU activity follows: Number of Shares (in thousands) Weighted Average Fair Value at Date of Grant Aggregate Intrinsic Value (in thousands) Units outstanding as of September 30, 2017 1,068 $ 45.97 Granted 331 61.88 Canceled (42) 46.74 Vested (324) 45.48 Units outstanding as of September 29, 2018 1,033 $ 51.19 Granted 375 55.76 Canceled (38) 54.03 Vested (408) 41.51 Units outstanding as of September 28, 2019 962 $ 56.97 Granted 377 75.91 Canceled (37) 60.95 Vested (451) 54.85 Units outstanding as of October 3, 2020 851 $ 66.33 $ 60,387 |
Reportable Segments, Geograph_2
Reportable Segments, Geographic Information and Major Customers (Tables) | 12 Months Ended |
Oct. 03, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segments Information | Information about the Company’s three reportable segments for fiscal 2020, 2019 and 2018 is as follows (in thousands): 2020 2019 2018 Net sales: AMER $ 1,327,849 $ 1,429,308 $ 1,218,944 APAC 1,824,831 1,557,205 1,498,010 EMEA 349,102 309,933 281,489 Elimination of inter-segment sales (111,388) (132,012) (124,935) $ 3,390,394 $ 3,164,434 $ 2,873,508 Operating income (loss): AMER $ 38,126 $ 57,780 $ 38,637 APAC 246,636 208,178 213,935 EMEA 1,492 4,475 1,447 Corporate and other costs (132,882) (128,378) (135,736) $ 153,372 $ 142,055 $ 118,283 Other income (expense): Interest expense $ (16,162) $ (12,853) $ (12,226) Interest income 1,878 1,949 4,696 Miscellaneous, net (3,691) (5,196) (3,143) Income before income taxes $ 135,397 $ 125,955 $ 107,610 2020 2019 2018 Depreciation: AMER $ 24,217 $ 22,531 $ 21,224 APAC 17,912 16,905 15,954 EMEA 6,938 6,105 6,054 Corporate 6,437 5,344 4,863 $ 55,504 $ 50,885 $ 48,095 Capital expenditures: AMER $ 13,361 $ 42,459 $ 17,690 APAC 18,902 33,454 33,018 EMEA 8,577 5,186 7,923 Corporate 9,248 9,501 4,149 $ 50,088 $ 90,600 $ 62,780 October 3, September 28, Total assets: AMER $ 759,030 $ 751,990 APAC 1,073,951 958,744 EMEA 279,757 209,541 Corporate and eliminations 177,110 80,608 $ 2,289,848 $ 2,000,883 |
Schedule of Net Sales and Long-lived Assets | The following information is provided in accordance with the required segment disclosures for fiscal 2020, 2019 and 2018. Net sales were based on the Company’s location providing the product or service (in thousands): 2020 2019 2018 Net sales: United States $ 989,888 $ 1,197,665 $ 1,000,680 Malaysia 1,432,154 1,138,380 1,118,032 China 392,677 418,825 379,977 Mexico 337,961 231,643 218,264 Romania 217,295 195,837 177,111 United Kingdom 118,463 99,825 91,426 Germany 13,344 14,271 12,953 Elimination of inter-country sales (111,388) (132,012) (124,935) $ 3,390,394 $ 3,164,434 $ 2,873,508 October 3, September 28, Long-lived assets: United States $ 99,853 $ 106,757 Malaysia 108,400 101,636 Mexico 68,154 73,864 Romania 33,801 31,033 China 21,408 22,378 United Kingdom 7,484 7,344 Other Foreign 6,446 6,751 Corporate 38,115 34,461 $ 383,661 $ 384,224 |
Concentration of Risk | As a percentage of consolidated net sales, net sales attributable to customers representing 10.0% or more of consolidated net sales for fiscal 2020, 2019 and 2018 were as follows: 2020 2019 2018 General Electric Company ("GE") 11.7% 12.4% 12.3% |
Guarantees (Tables)
Guarantees (Tables) | 12 Months Ended |
Oct. 03, 2020 | |
Guarantees [Abstract] | |
Schedule of Activity Related to Limited Warranty Liability | Below is a table summarizing the activity related to the Company’s limited warranty liability for fiscal 2020, 2019 and 2018 (in thousands): Limited warranty liability, as of September 30, 2017 $ 4,756 Accruals for warranties issued during the period 5,608 Settlements (in cash or in kind) during the period (3,718) Limited warranty liability, as of September 29, 2018 6,646 Accruals for warranties issued during the period 3,254 Settlements (in cash or in kind) during the period (3,624) Limited warranty liability, as of September 28, 2019 6,276 Accruals for warranties issued during the period 2,852 Settlements (in cash or in kind) during the period (2,742) Limited warranty liability, as of October 3, 2020 $ 6,386 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Oct. 03, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The table below includes the Company’s revenue for the fiscal years ended October 3, 2020 and September 28, 2019 disaggregated by geographic reportable segment and market sector (in thousands): Fiscal Year Ended October 3, 2020 Reportable Segment: AMER APAC EMEA Total Market Sector: Healthcare/Life Sciences $ 464,134 $ 618,250 $ 176,001 $ 1,258,385 Industrial/Commercial 324,120 850,662 79,782 1,254,564 Aerospace/Defense 371,685 157,301 82,582 611,568 Communications 157,181 104,263 4,433 265,877 External revenue 1,317,120 1,730,476 342,798 3,390,394 Inter-segment sales 10,729 94,355 6,304 111,388 Segment revenue $ 1,327,849 $ 1,824,831 $ 349,102 $ 3,501,782 Fiscal Year Ended September 28, 2019 Reportable Segment: AMER APAC EMEA Total Market Sector: Healthcare/Life Sciences $ 488,851 $ 602,922 $ 128,225 $ 1,219,998 Industrial/Commercial 359,381 534,971 86,868 981,220 Aerospace/Defense 317,558 186,486 84,556 588,600 Communications 256,523 113,329 4,764 374,616 External revenue 1,422,313 1,437,708 304,413 3,164,434 Inter-segment sales 6,995 119,497 5,520 132,012 Segment revenue $ 1,429,308 $ 1,557,205 $ 309,933 $ 3,296,446 |
Schedule of Contract Assets | The following table summarizes the activity in the Company's contract assets during the fiscal years ended October 3, 2020 and September 28, 2019 (in thousands): October 3, September 28, Contract assets, beginning of period $ 90,841 $ — Cumulative effect adjustment at September 29, 2018 — 76,417 Revenue recognized during the period 3,073,465 2,859,182 Amounts collected or invoiced during the period (3,050,360) (2,844,758) Contract assets, end of period $ 113,946 $ 90,841 |
Restructuring and Related Activ
Restructuring and Related Activities (Tables) | 12 Months Ended |
Oct. 03, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Accrual Activity | The Company's restructuring accrual activity for the years ended October 3, 2020 and September 28, 2019 is included in the table below (in thousands): Fixed Asset and Operating Right-of-Use Asset Impairment Employee Termination and Severance Costs Total Accrual balance, as of September 29, 2018 $ — $ — $ — Restructuring and impairment costs — 1,678 1,678 Amounts utilized — (381) (381) Accrual balance, as of September 28, 2019 $ — $ 1,297 $ 1,297 Restructuring and impairment costs 3,054 2,949 6,003 Amounts utilized (3,054) (4,210) (7,264) Accrual balance, as of October 3, 2020 $ — $ 36 $ 36 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Oct. 03, 2020 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Data | The following is summarized quarterly financial data for fiscal 2020 and 2019 (in thousands, except per share amounts): 2020 First Second Third Fourth Total Net sales $ 852,409 $ 767,364 $ 857,394 $ 913,227 $ 3,390,394 Gross profit 79,190 61,445 82,881 89,190 312,706 Net income (2,3) 31,006 12,926 35,842 37,705 117,479 Earnings per share (1) : Basic 1.06 0.44 1.23 1.29 4.02 Diluted (7) 1.03 0.43 1.20 1.26 $ 3.93 2019 First Second Third Fourth Total Net sales $ 765,544 $ 789,051 $ 799,644 $ 810,195 $ 3,164,434 Gross profit 72,383 70,636 71,030 77,789 291,838 Net income (4,5,6) 22,226 24,758 24,801 36,831 108,616 Earnings per share (1) : Basic 0.71 0.81 0.83 1.26 3.59 Diluted (8) 0.69 0.79 0.81 1.23 3.50 (1) The annual total amounts may not equal the sum of the quarterly amounts due to rounding. Earnings per share is computed independently for each quarter and annually. (2) The first quarter of fiscal 2020 results included $1.9 million in tax benefits related to U.S. foreign tax credit regulations issued during the quarter, partially offset by $1.1 million of tax expense as a result of special tax items. (3) The second quarter of fiscal 2020 results included restructuring and impairment charges of $6.0 million, or $5.4 million net of taxes, in the AMER operating segment due to the closure of the Boulder Design Center. (4) The first quarter of fiscal 2019 results included $7.0 million of tax expense as a result of new regulations issued under U.S. Tax Reform. These regulations impacted the treatment of foreign taxes paid. (5) The fourth quarter of fiscal 2019 results included restructuring charges of $1.7 million, or $1.5 million net of taxes, in the AMER operating segment. (6) The fourth quarter of fiscal 2019 results included a benefit of $10.5 million due to the permanent reinvestment assertion of certain historical undistributed earnings of two foreign subsidiaries. (7) The first quarter of fiscal 2020 included $0.03 per share tax benefit resulting from special tax items. The second quarter of fiscal 2020 included $0.18 per share of expense related to restructuring costs. (8) The first quarter of fiscal 2019 included $0.23 per share of tax expense as a result of U.S. Tax Reform. The fourth quarter of fiscal 2019 included $0.05 per share of expense related to restructuring costs and $0.35 per share tax benefit resulting from the permanent reinvestment assertion of certain historical undistributed earnings of two foreign subsidiaries. |
Description of Business and S_4
Description of Business and Significant Accounting Policies - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 |
Accounting Policies [Abstract] | ||||
Cash | $ 121,320 | $ 85,688 | ||
Money market demand accounts and other | 264,487 | 138,073 | ||
Restricted cash | 2,087 | 2,493 | ||
Total cash and cash equivalents and restricted cash | $ 387,894 | $ 226,254 | $ 297,686 | $ 569,254 |
Description of Business and S_5
Description of Business and Significant Accounting Policies - Schedule of Property, Plant And Equipment, Useful Lives (Details) | 12 Months Ended |
Oct. 03, 2020 | |
Buildings and improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Buildings and improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 39 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 7 years |
Computer hardware and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Computer hardware and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Description of Business and S_6
Description of Business and Significant Accounting Policies - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Oct. 03, 2020 | Sep. 28, 2019 |
Accounting Policies [Abstract] | ||
Foreign currency translation adjustments | $ (6,501) | $ (17,395) |
Cumulative change in fair value of derivative instruments | 1,442 | (389) |
Accumulated other comprehensive loss | $ (5,059) | $ (17,784) |
Description of Business and S_7
Description of Business and Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | |||||
Retained earnings | $ 1,295,079 | $ 1,178,677 | $ 1,177,600 | ||
Exchange gains (losses) on foreign currency transactions | (400) | 500 | $ 1,200 | ||
Forward currency exchange contracts treated as cash flow hedges and recorded in accumulated other comprehensive loss | 1,831 | 1,050 | $ (3,942) | ||
Fair value of debt | 299,300 | 252,300 | |||
Carrying value of debt | $ 288,000 | $ 245,000 | |||
ASU 2014-09 | Adjustments due to the adoption of ASU 2014-09 | |||||
Disaggregation of Revenue [Line Items] | |||||
Retained earnings | $ 7,800 | ||||
Engineering Design and Development Services | |||||
Disaggregation of Revenue [Line Items] | |||||
Percentage of consolidated net sales (less than) | 5.00% | 5.00% | 5.00% |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Oct. 03, 2020 | Sep. 28, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 630,833 | $ 577,545 |
Work-in-process | 53,602 | 49,315 |
Finished goods | 79,026 | 74,078 |
Total inventories, net | $ 763,461 | $ 700,938 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Thousands | Oct. 03, 2020 | Sep. 28, 2019 |
Inventory [Line Items] | ||
Customer deposits | $ 159,972 | $ 139,841 |
Inventory | ||
Inventory [Line Items] | ||
Customer deposits | $ 154,600 | $ 136,500 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Oct. 03, 2020 | Sep. 29, 2019 | Sep. 28, 2019 |
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, gross | $ 901,979 | $ 856,533 | |
Less: accumulated depreciation | (518,318) | (472,309) | |
Total property, plant and equipment, net | 383,661 | $ 382,391 | 384,224 |
Land, buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, gross | 334,083 | 289,051 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, gross | 403,894 | 381,656 | |
Computer hardware and software | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, gross | 147,723 | 136,227 | |
Capital assets in progress | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, gross | $ 16,279 | $ 49,599 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Assets Held Under Finance Leases (Details) - USD ($) $ in Thousands | Oct. 03, 2020 | Sep. 28, 2019 |
Finance Leased Assets [Line Items] | ||
Total property, plant and equipment held under finance leases, gross | $ 46,734 | $ 47,841 |
Less: accumulated amortization | (10,326) | (8,762) |
Total property, plant and equipment held under finance leases, net | 36,408 | 39,079 |
Buildings and improvements | ||
Finance Leased Assets [Line Items] | ||
Total property, plant and equipment held under finance leases, gross | 35,360 | 23,717 |
Machinery and equipment | ||
Finance Leased Assets [Line Items] | ||
Total property, plant and equipment held under finance leases, gross | 11,374 | 12,293 |
Capital assets in progress | ||
Finance Leased Assets [Line Items] | ||
Total property, plant and equipment held under finance leases, gross | $ 0 | $ 11,831 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Purchase of property, plant and equipment included in accounts payable | $ 6.7 | $ 10 | $ 11.2 |
Debt, Finance Lease Obligatio_3
Debt, Finance Lease Obligations and Other Financing - Schedule of Debt, Finance Lease Obligations and Other Financing (Details) - USD ($) $ in Thousands | Oct. 03, 2020 | Sep. 29, 2019 | Sep. 28, 2019 |
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 288,000 | $ 245,000 | |
Finance lease and other financing obligations | 48,435 | 44,492 | |
Unamortized deferred financing fees | (1,631) | (1,512) | |
Total obligations | 334,804 | 287,980 | |
Current portion of long-term debt and finance lease obligations | (146,829) | (100,702) | |
Long-term debt and finance lease obligations, net of current portion | 187,975 | $ 187,071 | 187,278 |
Term Loan [Member] | Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Short-term debt, gross | 138,000 | 0 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 150,000 | 150,000 | |
Senior Notes | 4.05% Senior Notes, due June 15, 2025 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 100,000 | $ 100,000 | |
Interest Rate, Senior Notes | 4.05% | 4.05% | |
Senior Notes | 4.22% Senior Notes, due June 15, 2028 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 50,000 | $ 50,000 | |
Interest Rate, Senior Notes | 4.22% | 4.22% | |
Line of Credit | Borrowings under the credit facility | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 0 | $ 95,000 |
Debt, Finance Lease Obligatio_4
Debt, Finance Lease Obligations and Other Financing - Schedule of Aggregate Scheduled Maturities of Debt Obligations (Details) - USD ($) $ in Thousands | Oct. 03, 2020 | Sep. 28, 2019 |
Debt and Lease Obligation [Abstract] | ||
2021 | $ 138,000 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 100,000 | |
Thereafter | 50,000 | |
Total | $ 288,000 | $ 245,000 |
Debt, Finance Lease Obligatio_5
Debt, Finance Lease Obligations and Other Financing - Schedule of Aggregate Scheduled Maturities of Obligations Under Finance Leases (Details) $ in Thousands | Oct. 03, 2020USD ($) |
Finance Leased Assets [Line Items] | |
2021 | $ 8,829 |
2022 | 4,219 |
2023 | 2,320 |
2024 | 522 |
2025 | 568 |
Thereafter | 31,977 |
Total minimum lease payments | $ 48,435 |
Debt, Finance Lease Obligatio_6
Debt, Finance Lease Obligations and Other Financing - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | May 14, 2019 | |
Debt Instrument [Line Items] | ||||
Amount of debt outstanding | $ 288,000 | $ 245,000 | ||
Amount borrowed | $ 679,042 | 1,084,500 | $ 834,341 | |
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Credit facility, term | 5 years | |||
Maximum commitment | $ 350,000 | $ 300,000 | ||
Amount credit facility may be further increased | 600,000 | |||
Highest daily borrowings | 164,500 | |||
Average daily borrowings | $ 78,500 | |||
Annual commitment fee | 0.125% | |||
Term Loan [Member] | Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Short-term debt, gross | $ 138,000 | 0 | ||
Unsecured Debt | Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility, term | 364 days | |||
Interest Rate, Credit Facility | 2.75% | |||
Unsecured Debt | Term Loan [Member] | Eurocurrency rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest Rate, Credit Facility | 1.00% | |||
Unsecured Debt | Term Loan [Member] | Eurocurrency rate plus margin [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest Rate, Credit Facility | 1.75% | |||
Unsecured Debt | Term Loan [Member] | Base Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest Rate, Credit Facility | 2.00% | |||
Unsecured Debt | Term Loan [Member] | Base rate plus margin [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest Rate, Credit Facility | 0.75% | |||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Amount of debt outstanding | $ 150,000 | 150,000 | ||
Senior Notes | 4.05% Senior Notes, due June 15, 2025 | ||||
Debt Instrument [Line Items] | ||||
Amount of debt outstanding | $ 100,000 | $ 100,000 | ||
Interest Rate, Senior Notes | 4.05% | 4.05% | ||
Senior Notes | 4.22% Senior Notes, due June 15, 2028 | ||||
Debt Instrument [Line Items] | ||||
Amount of debt outstanding | $ 50,000 | $ 50,000 | ||
Interest Rate, Senior Notes | 4.22% | 4.22% | ||
Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Amount of debt outstanding | $ 0 | $ 95,000 | ||
Amount borrowed | 538,700 | |||
Amount repaid | $ 633,700 | |||
Finance Lease Obligations [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate | 17.70% | 4.80% |
Derivatives and Fair Value Me_3
Derivatives and Fair Value Measurements - Schedule of Fair Values of Derivative Instruments (Details) - Foreign currency forward contracts - USD ($) $ in Thousands | Oct. 03, 2020 | Sep. 28, 2019 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset | $ 100 | $ 900 |
Prepaid expenses and other | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset | 1,830 | 156 |
Prepaid expenses and other | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset | 70 | 912 |
Other accrued liabilities | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liability | 641 | 798 |
Other accrued liabilities | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liability | $ 58 | $ 54 |
Derivatives and Fair Value Me_4
Derivatives and Fair Value Measurements - Schedule of Derivative Impact on Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Foreign currency forward contracts | Derivatives designated as hedging instruments | Derivatives in cash flow hedging relationships | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in OCL on Derivatives | $ 446 | $ (629) | $ 2,579 |
Derivatives and Fair Value Me_5
Derivatives and Fair Value Measurements - Schedule of Derivative Impact on (Loss) Gain Recognized in Income (Details) - Derivatives designated as hedging instruments - Derivatives in cash flow hedging relationships - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Foreign currency forward contracts | Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Loss) Gain Reclassified from Accumulated OCL into Income | $ (1,278) | $ (1,506) | $ 5,676 |
Foreign currency forward contracts | Selling and administrative expenses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Loss) Gain Reclassified from Accumulated OCL into Income | (107) | (173) | 619 |
Treasury rate locks | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Loss) Gain Reclassified from Accumulated OCL into Income | $ 0 | $ 0 | $ 226 |
Derivatives and Fair Value Me_6
Derivatives and Fair Value Measurements - Schedule of Amount of Gain (Loss) on Derivatives Recognized in Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Derivatives not designated as hedging instruments | Miscellaneous, net | Foreign currency forward contracts | |||
Derivative [Line Items] | |||
Amount of (Loss) Gain on Derivatives Recognized in Income | $ (330) | $ 2,098 | $ 263 |
Derivatives and Fair Value Me_7
Derivatives and Fair Value Measurements - Schedule of Fair Value Measurements Using Input Levels (Details) - Recurring - Foreign currency forward contracts - USD ($) $ in Thousands | Oct. 03, 2020 | Sep. 28, 2019 |
Derivative asset | $ 1,201 | $ 216 |
Level 1 | ||
Derivative asset | 0 | 0 |
Level 2 | ||
Derivative asset | 1,201 | 216 |
Level 3 | ||
Derivative asset | $ 0 | $ 0 |
Derivatives and Fair Value Me_8
Derivatives and Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 03, 2020 | Sep. 28, 2019 | |
Estimated unrealized gains (losses), net of tax, expected to be reclassified in the next 12 months | $ 1,200 | |
Derivatives designated as hedging instruments | Derivatives in cash flow hedging relationships | Foreign currency forward contracts | ||
Notional amount of forward exchange contracts | 96,800 | $ 80,000 |
Fair value of derivative asset | 1,200 | |
Fair value of derivative liability | 600 | |
Derivatives not designated as hedging instruments | Foreign currency forward contracts | ||
Notional amount of forward exchange contracts | 15,800 | 34,400 |
Fair value of derivative asset | $ 100 | $ 900 |
Income Taxes - Schedule of Dome
Income Taxes - Schedule of Domestic and Foreign Components of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | ||
Income Tax Disclosure [Abstract] | ||||
U.S. | [1] | $ (69,102) | $ (42,806) | $ (53,243) |
Foreign | [1] | 204,499 | 168,761 | 160,853 |
Income before income taxes | $ 135,397 | $ 125,955 | $ 107,610 | |
[1] | The U.S. and Foreign components of income (loss) before income tax expense include the elimination of intercompany foreign dividends paid to the Company's U.S. operations. |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Current: | |||
Federal | $ 8,779 | $ 15,160 | $ 63,814 |
State | 23 | 0 | 234 |
Foreign | 12,699 | 11,943 | 10,134 |
Current Total | 21,501 | 27,103 | 74,182 |
Deferred: | |||
Federal | (6,498) | (3,498) | (2,958) |
State | 3 | 827 | (447) |
Foreign | 2,912 | (7,093) | 23,793 |
Deferred Total | (3,583) | (9,764) | 20,388 |
Income Tax Expense (Benefit) | $ 17,918 | $ 17,339 | $ 94,570 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rates (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 30, 2017 | Sep. 29, 2018 | Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Federal statutory income tax rate | 35.00% | 21.00% | 21.00% | 21.00% | 24.50% |
(Decrease) increase resulting from: | |||||
Foreign tax rate differences | (24.00%) | (21.00%) | (30.20%) | ||
Withholding tax on dividends | 1.90% | (5.40%) | 23.70% | ||
Permanent differences | (2.60%) | (1.30%) | 0.80% | ||
Excess tax benefits related to share-based compensation | (3.00%) | (1.30%) | (2.70%) | ||
Global intangible low-taxed income ("GILTI") | 13.80% | 11.70% | 0.00% | ||
Deemed repatriation tax | 0.00% | 5.60% | 92.20% | ||
Non-deductible compensation | 2.20% | 1.50% | 0.20% | ||
Valuation allowances | 3.60% | 1.50% | (30.60%) | ||
Rate changes | 0.00% | 0.00% | 9.00% | ||
Other, net | 0.30% | 1.50% | 1.00% | ||
Effective income tax rate | 13.20% | 13.80% | 87.90% |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Net Deferred Income Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Oct. 03, 2020 | Sep. 28, 2019 |
Deferred income tax assets: | ||
Loss/credit carryforwards | $ 31,854 | $ 28,391 |
Inventories | 14,450 | 16,809 |
Accrued employee benefits | 14,833 | 15,834 |
Accrued liabilities | 7,015 | 0 |
Other | 5,434 | 3,353 |
Total gross deferred income tax assets | 73,586 | 64,387 |
Less valuation allowances | (34,948) | (29,170) |
Deferred income tax assets | 38,638 | 35,217 |
Deferred income tax liabilities: | ||
Property, plant and equipment | 14,282 | 15,621 |
Tax on unremitted earnings | 5,339 | 5,192 |
Acceleration of revenue under Topic 606 | 4,028 | 6,055 |
Deferred income tax liabilities | 23,649 | 26,868 |
Net deferred income tax assets/(liabilities) | $ 14,989 | $ 8,349 |
Income Taxes - Schedule of Re_2
Income Taxes - Schedule of Reconciliation of Beginning and Ending Amounts of Unrecognized Income Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of fiscal year | $ 2,270 | $ 5,841 | $ 3,115 |
Gross increases for tax positions of prior years | 509 | 62 | 21 |
Gross increases for tax positions of the current year | 465 | 39 | 2,893 |
Gross decreases for tax positions of prior years | (1,148) | (3,672) | (188) |
Balance at end of fiscal year | $ 2,096 | $ 2,270 | $ 5,841 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 28, 2019 | Dec. 30, 2017 | Sep. 29, 2018 | Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Tax Expense (Benefit) of Undistributed Earnings of Foreign Subsidiaries | $ (10.5) | $ (12) | $ (10.5) | |||
Additions (reductions) to valuation allowance | $ 4.8 | $ 1.9 | ||||
Federal statutory income tax rate | 35.00% | 21.00% | 21.00% | 21.00% | 24.50% | |
Increase (Decrease) to valuation allowance | $ 5.8 | |||||
Uncertain tax benefits | 2.1 | |||||
Unrecognized tax benefits that would reduce company's effective tax rate if recognized | 1.5 | 1.3 | $ 1.5 | |||
Total accrued penalties and net accrued interest with respect to income taxes | $ 0.2 | $ 0.2 | 0.1 | 0.2 | $ 0.2 | |
Expense recognized for accrued penalties and net accrued interest (less than) | 0.1 | 0.1 | 0.1 | |||
Other liabilities (noncurrent) | ||||||
Uncertain tax benefits | 1.3 | |||||
Deferred income taxes (noncurrent asset) | ||||||
Uncertain tax benefits | 0.8 | |||||
Foreign Tax Authority | ||||||
Net operating loss carryforwards, foreign | 89.4 | |||||
State Jurisdiction | ||||||
Net operating loss carryforwards, state | 201.7 | |||||
Tax Cuts and Jobs Act of 2017 | ||||||
Additions (reductions) to valuation allowance | (9.7) | |||||
SEC Schedule, 12-09, Valuation Allowance, Operating Loss Carryforward | ||||||
Additions (reductions) to valuation allowance | (21) | |||||
Global intangible low-taxed income | ||||||
Additions (reductions) to valuation allowance | (3.6) | |||||
APAC | ||||||
Tax reductions related to tax holiday | $ 28.3 | $ 23.9 | $ 39.1 | |||
Tax reductions related to tax holiday, basic (in dollars per share) | $ 0.97 | $ 0.79 | $ 1.19 | |||
Tax reductions related to tax holiday, diluted (in dollars per share) | $ 0.95 | $ 0.77 | $ 1.15 | |||
EMEA | ||||||
Additions (reductions) to valuation allowance | $ 1.4 | |||||
Increase (Decrease) to valuation allowance | $ 3 | |||||
AMER | ||||||
Increase (Decrease) to valuation allowance | $ 2.8 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Amounts Utilized in Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 03, 2020 | Jul. 04, 2020 | Apr. 04, 2020 | Jan. 04, 2020 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 37,705 | $ 35,842 | $ 12,926 | $ 31,006 | $ 36,831 | $ 24,801 | $ 24,758 | $ 22,226 | $ 117,479 | $ 108,616 | $ 13,040 |
Basic weighted average common shares outstanding (in shares) | 29,195 | 30,271 | 33,003 | ||||||||
Dilutive effect of share-based awards and options outstanding (in shares) | 721 | 803 | 916 | ||||||||
Diluted weighted average shares outstanding (in shares) | 29,916 | 31,074 | 33,919 | ||||||||
Earnings per share: | |||||||||||
Basic (in dollars per share) | $ 1.29 | $ 1.23 | $ 0.44 | $ 1.06 | $ 1.26 | $ 0.83 | $ 0.81 | $ 0.71 | $ 4.02 | $ 3.59 | $ 0.40 |
Diluted (in dollars per share) | $ 1.26 | $ 1.20 | $ 0.43 | $ 1.03 | $ 1.23 | $ 0.81 | $ 0.79 | $ 0.69 | $ 3.93 | $ 3.50 | $ 0.38 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 12 Months Ended | ||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Share-based awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Diluted Earnings Per Share | 0.1 | 0.1 | 0.1 |
Leases Schedule of Impacts of A
Leases Schedule of Impacts of Adoption of New Accounting Prouncement (Details) - USD ($) $ in Thousands | Oct. 03, 2020 | Sep. 29, 2019 | Sep. 28, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepaid expenses and other | $ 31,772 | $ 31,804 | $ 31,974 |
Operating lease right-of-use assets | 69,879 | 75,790 | 0 |
Property, plant and equipment, net | 383,661 | 382,391 | 384,224 |
Deferred income taxes | 21,422 | 14,086 | 13,654 |
Other non-current assets | 35,727 | 34,521 | 64,714 |
Other accrued liabilities | 103,492 | 114,400 | 106,461 |
Long-term debt and finance lease obligations, net of current portion | 187,975 | 187,071 | 187,278 |
Long-term operating lease liabilities | 36,779 | 37,371 | 0 |
Retained earnings | $ 1,295,079 | 1,177,600 | $ 1,178,677 |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepaid expenses and other | (170) | ||
Operating lease right-of-use assets | 75,790 | ||
Property, plant and equipment, net | (1,833) | ||
Deferred income taxes | 432 | ||
Other non-current assets | (30,193) | ||
Other accrued liabilities | 7,939 | ||
Long-term debt and finance lease obligations, net of current portion | (207) | ||
Long-term operating lease liabilities | 37,371 | ||
Retained earnings | $ (1,077) |
Leases Schedule of Lease Expens
Leases Schedule of Lease Expense and Other Information (Details) $ in Thousands | 12 Months Ended |
Oct. 03, 2020USD ($) | |
Leases [Abstract] | |
Amortization of right-of-use assets | $ 4,380 |
Interest on lease liabilities | 4,956 |
Operating lease expense | 11,707 |
Other lease expense | 3,401 |
Total lease expense | $ 24,444 |
Weighted average remaining lease term, Finance lease | 12 years 9 months 18 days |
Weighted average remaining lease term, Operating lease | 18 years 6 months |
Weighted average discount rate, Finance lease | 17.70% |
Weighted average discount rate, Operating lease | 3.00% |
Operating cash flows used in finance leases | $ 4,539 |
Operating cash flows used in operating leases | 10,907 |
Finance cash flows used in finance leases | 3,321 |
Right-of-Use Asset obtained in exchange for Operating Lease liability | 7,692 |
Right-of-Use Asset obtained in exchange for Finance Lease liability | $ 2,835 |
Leases Schedule of Lease Assets
Leases Schedule of Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Oct. 03, 2020 | Sep. 29, 2019 | Sep. 28, 2019 |
Assets and Liabilities, Leases [Abstract] | |||
Finance lease right-of-use assets | $ 36,408 | ||
Operating lease right-of-use assets | 69,879 | $ 75,790 | $ 0 |
Total lease Assets | 106,287 | ||
Current finance lease liabilities | 2,700 | ||
Current operating lease liabilities | $ 7,724 | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | ||
Long-term finance lease liabilities | $ 37,033 | ||
Long-term operating lease liabilities | 36,779 | $ 37,371 | $ 0 |
Total lease liabilities | $ 84,236 |
Leases Schedule of Future Minim
Leases Schedule of Future Minimum Lease Payments (Details) $ in Thousands | Oct. 03, 2020USD ($) |
Operating Lease, Liability, Payment, Due [Abstract] | |
2021 | $ 8,973 |
2022 | 8,144 |
2023 | 7,674 |
2024 | 6,021 |
2025 | 4,505 |
Thereafter | 16,136 |
Total minimum lease payments | 51,453 |
Less: imputed interest | (6,950) |
Present value of lease liabilities | 44,503 |
Finance Lease, Liability, Payment, Due [Abstract] | |
2021 | 7,233 |
2022 | 7,045 |
2023 | 5,896 |
2024 | 4,994 |
2025 | 5,092 |
Thereafter | 93,525 |
Total minimum lease payments | 123,785 |
Less: imputed interest | (84,052) |
Present value of lease liabilities | $ 39,733 |
Leases Schedule of Future Min_2
Leases Schedule of Future Minimum Lease Payments (Prior to Adoption) (Details) $ in Thousands | Sep. 28, 2019USD ($) |
Other Commitments [Abstract] | |
Operating Leases, 2020 | $ 10,395 |
Operating Leases, 2021 | 6,554 |
Operating Leases, 2022 | 5,584 |
Operating Leases, 2023 | 5,153 |
Operating Leases, 2024 | 3,713 |
Operating Leases, Thereafter | 9,426 |
Operating Leases, Total | 40,825 |
Capital Leases, 2020 | 6,734 |
Capital Leases, 2021 | 3,490 |
Capital Leases, 2022 | 2,884 |
Capital Leases, 2023 | 1,652 |
Capital Leases, 2024 | 958 |
Capital Leases, Thereafter | 34,143 |
Capital Leases, Total | $ 49,861 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 29, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Operating lease right-of-use assets | $ 69,879 | $ 0 | $ 75,790 | |
Present value of lease liabilities | 44,503 | |||
Other non-current assets | 35,727 | 64,714 | 34,521 | |
Retained earnings | $ 1,295,079 | 1,178,677 | 1,177,600 | |
Amortization of assets held under capital leases | 3,800 | $ 3,400 | ||
Capital lease additions | 6,700 | 11,800 | ||
Operating Leases, rent expense | $ 12,900 | $ 12,000 | ||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee Lease Term of Contract | 1 year | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee Lease Term of Contract | 40 years | |||
Accounting Standards Update 2016-02 | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease right-of-use assets | 75,790 | |||
Present value of lease liabilities | 45,500 | |||
Other non-current assets | (30,193) | |||
Retained earnings | (1,077) | |||
Before [Domain] | Accounting Standards Update 2016-02 | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease right-of-use assets | $ 45,500 |
Benefit Plans - Schedule of Sto
Benefit Plans - Schedule of Stock Option and SARs Activity (Details) - Options and SARs - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Number of Options/SARs | |||
Outstanding at beginning of period (in shares) | 464 | 554 | 972 |
Granted (in shares) | 0 | 0 | 0 |
Canceled (in shares) | (16) | (2) | (4) |
Exercised (in shares) | (325) | (88) | (414) |
Outstanding at end of period (in shares) | 123 | 464 | 554 |
Weighted Average Exercise Price | |||
Outstanding at beginning of period (in dollars per share) | $ 38.28 | $ 37.18 | $ 36.23 |
Granted (in dollars per share) | 0 | 0 | 0 |
Canceled (in dollars per share) | 31.74 | 26.96 | 31.62 |
Exercised (in dollars per share) | 39.78 | 31.55 | 35.01 |
Outstanding at end of period (in dollars per share) | $ 35.12 | $ 38.28 | $ 37.18 |
Aggregate Intrinsic Value | |||
Outstanding at end of period | $ 4,393 | ||
Exercisable, Number of Options/SARs (in shares) | 123 | 464 | 537 |
Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 35.12 | $ 38.28 | $ 36.92 |
Exercisable, Weighted Average Remaining Life (years) | 3 years 2 months 26 days | ||
Exercisable, Aggregate Intrinsic Value | $ 4,393 |
Benefit Plans - Schedule of S_2
Benefit Plans - Schedule of Stock Option and SARs Information (Details) - Options and SARs shares in Thousands | 12 Months Ended |
Oct. 03, 2020$ / sharesshares | |
Number of Options/SARs Outstanding (in shares) | shares | 123 |
Weighted Average Exercise Price (in dollars per share) | $ 35.12 |
Weighted Average Remaining Life (years) | 3 years 2 months 26 days |
Number of Options/SARs Exercisable (in shares) | shares | 123 |
Weighted Average Exercise Price (in dollars per share) | $ 35.12 |
Minimum | |
Range of Exercise Prices, Lower Range Limit (in dollars per share) | 25.33 |
Maximum | |
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ 45.45 |
$25.33 - $27.86 | |
Number of Options/SARs Outstanding (in shares) | shares | 35 |
Weighted Average Exercise Price (in dollars per share) | $ 26.24 |
Weighted Average Remaining Life (years) | 2 years 2 months 15 days |
Number of Options/SARs Exercisable (in shares) | shares | 35 |
Weighted Average Exercise Price (in dollars per share) | $ 26.24 |
$25.33 - $27.86 | Minimum | |
Range of Exercise Prices, Lower Range Limit (in dollars per share) | 25.33 |
$25.33 - $27.86 | Maximum | |
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ 27.86 |
$27.87 - $36.79 | |
Number of Options/SARs Outstanding (in shares) | shares | 33 |
Weighted Average Exercise Price (in dollars per share) | $ 33.97 |
Weighted Average Remaining Life (years) | 2 years 8 months 12 days |
Number of Options/SARs Exercisable (in shares) | shares | 33 |
Weighted Average Exercise Price (in dollars per share) | $ 33.97 |
$27.87 - $36.79 | Minimum | |
Range of Exercise Prices, Lower Range Limit (in dollars per share) | 27.87 |
$27.87 - $36.79 | Maximum | |
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ 36.79 |
$36.80 - $41.01 | |
Number of Options/SARs Outstanding (in shares) | shares | 32 |
Weighted Average Exercise Price (in dollars per share) | $ 39.57 |
Weighted Average Remaining Life (years) | 3 years 7 months 17 days |
Number of Options/SARs Exercisable (in shares) | shares | 32 |
Weighted Average Exercise Price (in dollars per share) | $ 39.57 |
$36.80 - $41.01 | Minimum | |
Range of Exercise Prices, Lower Range Limit (in dollars per share) | 36.80 |
$36.80 - $41.01 | Maximum | |
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ 41.01 |
$41.02 - $45.45 | |
Number of Options/SARs Outstanding (in shares) | shares | 23 |
Weighted Average Exercise Price (in dollars per share) | $ 44.33 |
Weighted Average Remaining Life (years) | 5 years 1 month 2 days |
Number of Options/SARs Exercisable (in shares) | shares | 23 |
Weighted Average Exercise Price (in dollars per share) | $ 44.33 |
$41.02 - $45.45 | Minimum | |
Range of Exercise Prices, Lower Range Limit (in dollars per share) | 41.02 |
$41.02 - $45.45 | Maximum | |
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ 45.45 |
Benefit Plans - Schedule of Per
Benefit Plans - Schedule of Performance Stock Unit and Restricted Stock Unit Activity (Details) - PSUs and RSUs - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Number of Shares | |||
Units outstanding at beginning of period (in shares) | 962 | 1,033 | 1,068 |
Granted (in shares) | 377 | 375 | 331 |
Canceled (in shares) | (37) | (38) | (42) |
Vested (in shares) | (451) | (408) | (324) |
Units outstanding at end of period (in shares) | 851 | 962 | 1,033 |
Weighted Average Fair Value at Date of Grant | |||
Units outstanding at beginning of period (in dollars per share) | $ 56.97 | $ 51.19 | $ 45.97 |
Granted (in dollars per share) | 75.91 | 55.76 | 61.88 |
Canceled (in dollars per share) | 60.95 | 54.03 | 46.74 |
Vested (in dollars per share) | 54.85 | 41.51 | 45.48 |
Units outstanding at end of period (in dollars per share) | $ 66.33 | $ 56.97 | $ 51.19 |
Aggregate Intrinsic Value | |||
Units outstanding at end of period | $ 60,387 |
Benefit Plans - Narrative (Deta
Benefit Plans - Narrative (Details) | 12 Months Ended | ||
Oct. 03, 2020USD ($)installmentshares | Sep. 28, 2019USD ($)shares | Sep. 29, 2018USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 24,300,000 | $ 21,300,000 | $ 18,000,000 |
Deferred tax benefits recognized related to equity awards | $ 8,200,000 | 9,200,000 | 8,200,000 |
Employer matching contribution, percent of eligible earnings (up to) | 4.00% | ||
Amount of contributions | $ 9,800,000 | 9,300,000 | 8,100,000 |
SERP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Deferred compensation liability | 12,600,000 | 12,100,000 | |
Total value of assets held by trust | 12,600,000 | 12,100,000 | |
Amount of contributions made to participants' SERP accounts | $ 700,000 | 600,000 | 1,000,000 |
Other Postretirement Benefit Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term of deferred compensation agreements | 15 years | ||
Deferred compensation liability | $ 100,000 | 200,000 | |
Total value of assets held by trust | 10,800,000 | 10,400,000 | |
Amount of payments made to participants | 100,000 | $ 100,000 | $ 100,000 |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | $ 17,000,000 | ||
Unrecognized compensation expense, weighted average period of recognition | 1 year 3 months 18 days | ||
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 3 years | ||
Payout, percent of shares granted | 100.00% | ||
Unrecognized compensation expense | $ 8,800,000 | ||
Unrecognized compensation expense, weighted average period of recognition | 1 year 9 months 18 days | ||
Vested (in shares) | shares | 100,000 | ||
Granted (in shares) | shares | 100,000 | 100,000 | 100,000 |
PSUs | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 0.00% | ||
Number of shares that may be issued (in shares) | shares | 0 | ||
PSUs | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 200.00% | ||
Number of shares that may be issued (in shares) | shares | 500,000 | ||
PSUs | Vest Based on Market Condition - Relative TSR of Common Stock Compared to Companies in Russell 3000 Index | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payout, percent of shares granted | 148.40% | ||
Payout at target, TSR threshold percent of companies in Russell 3000 Index during performance period | 50.00% | ||
PSUs | Vest Based on Performance Condition - Three-Point Annual Average of Absolute Economic Return | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payout at target, average economic return threshold percentage over performance period | 2.50% | ||
Options and SARs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options and SARS granted in period | shares | 0 | 0 | 0 |
Fair value vested | $ 0 | $ 300,000 | $ 1,300,000 |
Total intrinsic value exercised | $ 10,900,000 | $ 2,400,000 | $ 10,900,000 |
2016 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares authorized under the plan (in shares) | shares | 3,200,000 | ||
2016 Plan | Cash Incentive Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Long-term cash awards per employee that may be granted annually | $ 4,000,000 | ||
2016 Plan | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of annual vesting installments | installment | 2 | ||
Term | 10 years | ||
2016 Plan | SARs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of annual vesting installments | installment | 2 | ||
Term | 7 years | ||
2016 Plan | RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 3 years | ||
2016 Plan | PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 3 years | ||
2016 Plan | PSUs | Vest Based on Market Condition - Relative TSR of Common Stock Compared to Companies in Russell 3000 Index | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 50.00% | ||
2016 Plan | PSUs | Vest Based on Performance Condition - Three-Point Annual Average of Absolute Economic Return | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 50.00% |
Reportable Segments, Geograph_3
Reportable Segments, Geographic Information and Major Customers - Schedule of Reportable Segments Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 03, 2020 | Jul. 04, 2020 | Apr. 04, 2020 | Jan. 04, 2020 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Net sales | $ 913,227 | $ 857,394 | $ 767,364 | $ 852,409 | $ 810,195 | $ 799,644 | $ 789,051 | $ 765,544 | $ 3,390,394 | $ 3,164,434 | $ 2,873,508 |
Operating income (loss): | 153,372 | 142,055 | 118,283 | ||||||||
Other income (expense): | |||||||||||
Interest expense | (16,162) | (12,853) | (12,226) | ||||||||
Interest income | 1,878 | 1,949 | 4,696 | ||||||||
Miscellaneous, net | (3,691) | (5,196) | (3,143) | ||||||||
Income before income taxes | 135,397 | 125,955 | 107,610 | ||||||||
Depreciation | 55,504 | 50,885 | 48,095 | ||||||||
Capital expenditures | 50,088 | 90,600 | 62,780 | ||||||||
Total assets | 2,289,848 | 2,000,883 | 2,289,848 | 2,000,883 | |||||||
Elimination of inter-segment sales | |||||||||||
Net sales | (111,388) | (132,012) | (124,935) | ||||||||
Corporate | |||||||||||
Operating income (loss): | (132,882) | (128,378) | (135,736) | ||||||||
Other income (expense): | |||||||||||
Depreciation | 6,437 | 5,344 | 4,863 | ||||||||
Capital expenditures | 9,248 | 9,501 | 4,149 | ||||||||
Corporate and eliminations | |||||||||||
Other income (expense): | |||||||||||
Total assets | 177,110 | 80,608 | 177,110 | 80,608 | |||||||
AMER | Operating Segments | |||||||||||
Net sales | 1,327,849 | 1,429,308 | 1,218,944 | ||||||||
Operating income (loss): | 38,126 | 57,780 | 38,637 | ||||||||
Other income (expense): | |||||||||||
Depreciation | 24,217 | 22,531 | 21,224 | ||||||||
Capital expenditures | 13,361 | 42,459 | 17,690 | ||||||||
Total assets | 759,030 | 751,990 | 759,030 | 751,990 | |||||||
APAC | Operating Segments | |||||||||||
Net sales | 1,824,831 | 1,557,205 | 1,498,010 | ||||||||
Operating income (loss): | 246,636 | 208,178 | 213,935 | ||||||||
Other income (expense): | |||||||||||
Depreciation | 17,912 | 16,905 | 15,954 | ||||||||
Capital expenditures | 18,902 | 33,454 | 33,018 | ||||||||
Total assets | 1,073,951 | 958,744 | 1,073,951 | 958,744 | |||||||
EMEA | Operating Segments | |||||||||||
Net sales | 349,102 | 309,933 | 281,489 | ||||||||
Operating income (loss): | 1,492 | 4,475 | 1,447 | ||||||||
Other income (expense): | |||||||||||
Depreciation | 6,938 | 6,105 | 6,054 | ||||||||
Capital expenditures | 8,577 | 5,186 | $ 7,923 | ||||||||
Total assets | $ 279,757 | $ 209,541 | $ 279,757 | $ 209,541 |
Reportable Segments, Geograph_4
Reportable Segments, Geographic Information and Major Customers - Schedule of Net Sales and Long-Lived Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Oct. 03, 2020 | Jul. 04, 2020 | Apr. 04, 2020 | Jan. 04, 2020 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 29, 2019 | |
Net sales | $ 913,227 | $ 857,394 | $ 767,364 | $ 852,409 | $ 810,195 | $ 799,644 | $ 789,051 | $ 765,544 | $ 3,390,394 | $ 3,164,434 | $ 2,873,508 | |
Long-lived assets | 383,661 | 384,224 | 383,661 | 384,224 | $ 382,391 | |||||||
United States | ||||||||||||
Net sales | 989,888 | 1,197,665 | 1,000,680 | |||||||||
Long-lived assets | 99,853 | 106,757 | 99,853 | 106,757 | ||||||||
Malaysia | ||||||||||||
Net sales | 1,432,154 | 1,138,380 | 1,118,032 | |||||||||
Long-lived assets | 108,400 | 101,636 | 108,400 | 101,636 | ||||||||
China | ||||||||||||
Net sales | 392,677 | 418,825 | 379,977 | |||||||||
Long-lived assets | 21,408 | 22,378 | 21,408 | 22,378 | ||||||||
Mexico | ||||||||||||
Net sales | 337,961 | 231,643 | 218,264 | |||||||||
Long-lived assets | 68,154 | 73,864 | 68,154 | 73,864 | ||||||||
Romania | ||||||||||||
Net sales | 217,295 | 195,837 | 177,111 | |||||||||
Long-lived assets | 33,801 | 31,033 | 33,801 | 31,033 | ||||||||
United Kingdom | ||||||||||||
Net sales | 118,463 | 99,825 | 91,426 | |||||||||
Long-lived assets | 7,484 | 7,344 | 7,484 | 7,344 | ||||||||
Germany | ||||||||||||
Net sales | 13,344 | 14,271 | 12,953 | |||||||||
Other Foreign | ||||||||||||
Long-lived assets | 6,446 | 6,751 | 6,446 | 6,751 | ||||||||
Elimination of inter-segment sales | ||||||||||||
Net sales | (111,388) | (132,012) | $ (124,935) | |||||||||
Corporate | ||||||||||||
Long-lived assets | $ 38,115 | $ 34,461 | $ 38,115 | $ 34,461 |
Reportable Segments, Geograph_5
Reportable Segments, Geographic Information and Major Customers - Concentration of Risk (Details) | 12 Months Ended | ||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Customer Concentration Risk | Consolidated Net Sales | General Electric Company ("GE") | |||
Segment Reporting Information [Line Items] | |||
Percentage of concentration risk | 11.70% | 12.40% | 12.30% |
Reportable Segments, Geograph_6
Reportable Segments, Geographic Information and Major Customers - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Apr. 04, 2020USD ($) | Sep. 28, 2019USD ($) | Oct. 03, 2020USD ($)segment | Sep. 28, 2019USD ($) | Sep. 29, 2018USD ($) | |
Segment Reporting [Abstract] | |||||
Restructuring and impairment charges | $ 6,000 | $ 1,700 | $ 6,003 | $ 1,678 | $ 0 |
One-time employee bonus | 13,500 | ||||
Number of reportable segments | segment | 3 | ||||
Other long-term assets, operating lease right-of-use assets, deferred income tax assets and intangible assets | 78,400 | $ 127,000 | 78,400 | ||
Concentration Risk [Line Items] | |||||
Restructuring and impairment charges | $ 6,000 | $ 1,700 | $ 6,003 | $ 1,678 | $ 0 |
Customer Concentration Risk | General Electric Company ("GE") | Accounts Receivable | |||||
Concentration Risk [Line Items] | |||||
Percentage of concentration risk | 15.70% | 10.10% |
Guarantees - Schedule of Activi
Guarantees - Schedule of Activity Related to Limited Warranty Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Limited warranty liability, beginning balance | $ 6,276 | $ 6,646 | $ 4,756 |
Accruals for warranties issued during the period | 2,852 | 3,254 | 5,608 |
Settlements (in cash or in kind) during the period | (2,742) | (3,624) | (3,718) |
Limited warranty liability, ending balance | $ 6,386 | $ 6,276 | $ 6,646 |
Guarantees - Narrative (Details
Guarantees - Narrative (Details) | 12 Months Ended |
Oct. 03, 2020 | |
Minimum | |
Product Warranty Liability [Line Items] | |
Product warranty specification period | 12 months |
Maximum | |
Product Warranty Liability [Line Items] | |
Product warranty specification period | 24 months |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | Aug. 13, 2020 | Aug. 20, 2019 | Feb. 14, 2018 | Jun. 06, 2016 | |
2016 Stock Repurchase Program | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Authorized repurchase amount | $ 150,000 | ||||||
Amount repurchased (in shares) | 1,914,596 | ||||||
Amount repurchased | $ 115,900 | ||||||
Average repurchase price (in dollars per share) | $ 60.52 | ||||||
2018 Stock Repurchase Program | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Authorized repurchase amount | $ 200,000 | ||||||
Amount repurchased (in shares) | 3,129,059 | 343,642 | |||||
Amount repurchased | $ 178,800 | $ 21,200 | |||||
Average repurchase price (in dollars per share) | $ 57.15 | $ 61.61 | |||||
2019 Stock Repurchase Program | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Authorized repurchase amount | $ 50,000 | ||||||
Amount repurchased (in shares) | 609,935 | 54,965 | |||||
Amount repurchased | $ 41,400 | $ 3,300 | |||||
Average repurchase price (in dollars per share) | $ 67.86 | $ 59.66 | |||||
Remaining authorized repurchase amount | $ 5,300 | ||||||
2021 Stock Repurchase Program | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Authorized repurchase amount | $ 50,000 |
Trade Accounts Receivable Sal_2
Trade Accounts Receivable Sale Programs - Narrative (Details) - USD ($) | 12 Months Ended | ||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Amount Received From Trade Accounts Receivable Sold To Third Party [Line Items] | |||
Trade accounts receivable sold | $ 834,400,000 | $ 919,300,000 | $ 712,900,000 |
Cash proceeds | 831,200,000 | $ 913,600,000 | $ 708,600,000 |
MUFG RPA | |||
Amount Received From Trade Accounts Receivable Sold To Third Party [Line Items] | |||
Maximum facility amount | $ 340,000,000 | ||
Minimum prior notice required to cancel automatic extension | 10 days | ||
HSBC RPA | |||
Amount Received From Trade Accounts Receivable Sold To Third Party [Line Items] | |||
Maximum facility amount | $ 60,000,000 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 03, 2020 | Sep. 28, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer | $ 3,501,782 | $ 3,296,446 |
Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer | 3,390,394 | 3,164,434 |
Elimination of inter-segment sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer | 111,388 | 132,012 |
Healthcare/Life Sciences | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer | 1,258,385 | 1,219,998 |
Industrial/Commercial | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer | 1,254,564 | 981,220 |
Aerospace/Defense | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer | 611,568 | 588,600 |
Communications | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer | 265,877 | 374,616 |
AMER | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer | 1,327,849 | 1,429,308 |
AMER | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer | 1,317,120 | 1,422,313 |
AMER | Elimination of inter-segment sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer | 10,729 | 6,995 |
AMER | Healthcare/Life Sciences | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer | 464,134 | 488,851 |
AMER | Industrial/Commercial | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer | 324,120 | 359,381 |
AMER | Aerospace/Defense | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer | 371,685 | 317,558 |
AMER | Communications | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer | 157,181 | 256,523 |
APAC | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer | 1,824,831 | 1,557,205 |
APAC | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer | 1,730,476 | 1,437,708 |
APAC | Elimination of inter-segment sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer | 94,355 | 119,497 |
APAC | Healthcare/Life Sciences | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer | 618,250 | 602,922 |
APAC | Industrial/Commercial | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer | 850,662 | 534,971 |
APAC | Aerospace/Defense | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer | 157,301 | 186,486 |
APAC | Communications | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer | 104,263 | 113,329 |
EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer | 349,102 | 309,933 |
EMEA | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer | 342,798 | 304,413 |
EMEA | Elimination of inter-segment sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer | 6,304 | 5,520 |
EMEA | Healthcare/Life Sciences | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer | 176,001 | 128,225 |
EMEA | Industrial/Commercial | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer | 79,782 | 86,868 |
EMEA | Aerospace/Defense | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer | 82,582 | 84,556 |
EMEA | Communications | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer | $ 4,433 | $ 4,764 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Schedule of Contract Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 30, 2018 | Sep. 29, 2018 | |
Change in Contract with Customer Asset [Line Items] | ||||
Contract assets | $ 113,946 | $ 90,841 | $ 0 | |
Revenue recognized | 3,073,465 | 2,859,182 | ||
Amounts collected or invoiced | $ (3,050,360) | $ (2,844,758) | ||
ASU 2014-09 | Adjustments due to the adoption of ASU 2014-09 | ||||
Change in Contract with Customer Asset [Line Items] | ||||
Contract assets | $ 76,417 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 03, 2020 | Sep. 28, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Deferred Revenue | $ 55.6 | $ 67.9 |
Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of Revenue | 91.00% | 90.00% |
Restructuring and Impairment _2
Restructuring and Impairment Charges Schedule of Restructuring Accrual Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Apr. 04, 2020 | Sep. 28, 2019 | Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | $ 1,297 | $ 36 | $ 1,297 | $ 0 | |
Restructuring and impairment charges | $ 6,000 | 1,700 | 6,003 | 1,678 | 0 |
Amounts utilized | (7,264) | (381) | |||
Fixed Asset and Operating Right-of-Use Asset Impairment | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | 0 | 0 | 0 | 0 | |
Restructuring and impairment charges | 3,054 | 0 | |||
Amounts utilized | (3,054) | 0 | |||
Employee Termination and Severance Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | $ 1,297 | 36 | 1,297 | $ 0 | |
Restructuring and impairment charges | 2,949 | 1,678 | |||
Amounts utilized | $ (4,210) | $ (381) |
Restructuring and Related Act_2
Restructuring and Related Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Apr. 04, 2020 | Sep. 28, 2019 | Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment charges | $ 6,000 | $ 1,700 | $ 6,003 | $ 1,678 | $ 0 |
Restructuring Charges [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Other Tax Expense (Benefit) | $ (600) | $ (200) | $ 0 |
Acquisition Narrative (Details)
Acquisition Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 29, 2018 | Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Acquisition [Abstract] | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 12,379 | |||
Business acquisition | $ 1,200 | $ 0 | $ 1,180 | |
Intangible Assets, Gross (Excluding Goodwill) | 5,700 | $ 6,900 | $ 8,200 | |
Amortization of Intangible Assets | $ 1,200 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) - Schedule Of Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 03, 2020 | Jul. 04, 2020 | Apr. 04, 2020 | Jan. 04, 2020 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Quarterly Financial Data [Abstract] | |||||||||||
Net sales | $ 913,227 | $ 857,394 | $ 767,364 | $ 852,409 | $ 810,195 | $ 799,644 | $ 789,051 | $ 765,544 | $ 3,390,394 | $ 3,164,434 | $ 2,873,508 |
Gross profit | 89,190 | 82,881 | 61,445 | 79,190 | 77,789 | 71,030 | 70,636 | 72,383 | 312,706 | 291,838 | 257,600 |
Net income | $ 37,705 | $ 35,842 | 12,926 | 31,006 | 36,831 | $ 24,801 | $ 24,758 | 22,226 | 117,479 | 108,616 | 13,040 |
Tax Cuts and Jobs Act, Income Tax Expense (Benefit) | (1,900) | $ 7,000 | |||||||||
Special Tax Items Expense (Benefit) | $ 1,100 | ||||||||||
Restructuring and impairment charges | 6,000 | 1,700 | 6,003 | 1,678 | $ 0 | ||||||
Restructuring costs, net of tax | $ 5,400 | 1,500 | |||||||||
Tax Expense (Benefit) of Undistributed Earnings of Foreign Subsidiaries | $ (10,500) | $ (12,000) | $ (10,500) | ||||||||
Special Tax Items Expense (Benefits), per share | $ (0.03) | ||||||||||
Restructuring Costs, Per Share | $ 0.18 | $ 0.05 | |||||||||
Tax Reform Income Tax Expense (Benefit), Per Share | $ 0.23 | ||||||||||
Tax Expense (Benefit) of Undistributed Earnings of Foreign Subsidiaries Per Share | (0.35) | ||||||||||
Earnings per share: | |||||||||||
Basic (in dollars per share) | $ 1.29 | $ 1.23 | 0.44 | 1.06 | 1.26 | $ 0.83 | $ 0.81 | 0.71 | $ 4.02 | $ 3.59 | $ 0.40 |
Diluted (in dollars per share) | $ 1.26 | $ 1.20 | $ 0.43 | $ 1.03 | $ 1.23 | $ 0.81 | $ 0.79 | $ 0.69 | $ 3.93 | $ 3.50 | $ 0.38 |
Subsequent Events Narrative (De
Subsequent Events Narrative (Details) - 2021 Stock Repurchase Program - USD ($) $ in Millions | Nov. 18, 2020 | Aug. 13, 2020 |
Equity, Class of Treasury Stock [Line Items] | ||
Authorized repurchase amount | $ 50 | |
Subsequent Event | ||
Equity, Class of Treasury Stock [Line Items] | ||
Authorized repurchase amount | $ 50 | |
Remaining authorized repurchase amount | $ 100 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts - Schedule of Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Allowance for losses on accounts receivable (deducted from the asset to which it relates) | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 1,537 | $ 885 | $ 980 |
Additions charged to costs and expenses | 4,051 | 1,189 | 380 |
Additions charged to other accounts | 0 | 0 | 0 |
Deductions | (1,991) | (537) | (475) |
Balance at end of period | 3,597 | 1,537 | 885 |
Valuation allowance on deferred income tax assets (deducted from the asset to which it relates) | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 29,170 | 28,369 | 61,668 |
Additions charged to costs and expenses | 5,778 | 2,213 | 1,107 |
Additions charged to other accounts | 0 | 0 | 0 |
Deductions | 0 | (1,412) | (34,406) |
Balance at end of period | $ 34,948 | $ 29,170 | $ 28,369 |