Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Apr. 01, 2023 | Apr. 21, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 01, 2023 | |
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, $0.01 par value | |
Trading Symbol | PLXS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 27,646,537 | |
Entity Central Index Key | 0000785786 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,070,823 | $ 888,723 | $ 2,164,748 | $ 1,706,179 |
Cost of sales | 967,830 | 812,213 | 1,960,556 | 1,559,673 |
Gross profit | 102,993 | 76,510 | 204,192 | 146,506 |
Selling and administrative expenses | 46,051 | 40,673 | 89,909 | 78,175 |
Restructuring and impairment charges | 0 | 0 | 0 | 2,021 |
Operating income | 56,942 | 35,837 | 114,283 | 66,310 |
Other income (expense): | ||||
Interest expense | (8,287) | (3,345) | (15,181) | (6,391) |
Interest income | 759 | 262 | 1,693 | 533 |
Miscellaneous, net | (1,612) | (1,446) | (3,556) | (2,369) |
Income before income taxes | 47,802 | 31,308 | 97,239 | 58,083 |
Income tax expense | 6,958 | 4,439 | 14,205 | 7,791 |
Net income | $ 40,844 | $ 26,869 | $ 83,034 | $ 50,292 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 1.48 | $ 0.96 | $ 3 | $ 1.80 |
Diluted (in dollars per share) | $ 1.45 | $ 0.95 | $ 2.94 | $ 1.76 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 27,661 | 27,987 | 27,650 | 28,002 |
Diluted (in shares) | 28,184 | 28,427 | 28,273 | 28,566 |
Other comprehensive income (loss): | ||||
Derivative instrument and other fair value adjustments | $ 2,924 | $ 436 | $ 11,363 | $ 1,708 |
Foreign currency translation adjustments | 3,152 | (4,328) | 16,929 | (5,906) |
Other comprehensive income (loss) | 6,076 | (3,892) | 28,292 | (4,198) |
Total comprehensive income | $ 46,920 | $ 22,977 | $ 111,326 | $ 46,094 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 01, 2023 | Oct. 01, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 269,664 | $ 274,805 |
Restricted cash | 700 | 665 |
Accounts receivable, net of allowances of $2,284 and $1,961, respectively | 661,445 | 737,696 |
Contract assets | 133,029 | 138,540 |
Inventories, net | 1,649,719 | 1,602,783 |
Prepaid expenses and other | 65,717 | 61,633 |
Total current assets | 2,780,274 | 2,816,122 |
Property, plant and equipment, net | 469,387 | 444,705 |
Operating lease right-of-use assets | 62,795 | 65,134 |
Deferred income taxes | 39,405 | 39,075 |
Other assets | 30,159 | 28,189 |
Total non-current assets | 601,746 | 577,103 |
Total assets | 3,382,020 | 3,393,225 |
Current liabilities: | ||
Current portion of long-term debt and finance lease obligations | 294,011 | 273,971 |
Accounts payable | 729,225 | 805,583 |
Customer deposits | 531,683 | 480,486 |
Accrued salaries and wages | 76,702 | 88,876 |
Other accrued liabilities | 286,241 | 357,273 |
Total current liabilities | 1,917,862 | 2,006,189 |
Long-term debt and finance lease obligations, net of current portion | 188,730 | 187,776 |
Accrued income taxes payable | 31,382 | 42,019 |
Long-term operating lease liabilities | 31,257 | 33,628 |
Deferred income taxes | 4,901 | 6,327 |
Other liabilities | 25,506 | 21,555 |
Total non-current liabilities | 281,776 | 291,305 |
Total liabilities | 2,199,638 | 2,297,494 |
Commitments and contingencies | ||
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, 54,293 and 54,084 shares issued, respectively, and 27,647 and 27,679 shares outstanding, respectively | 543 | 541 |
Additional paid-in capital | 651,667 | 652,467 |
Common stock held in treasury, at cost, 26,646 and 26,405 shares, respectively | (1,117,360) | (1,093,483) |
Retained earnings | 1,655,268 | 1,572,234 |
Accumulated other comprehensive loss | (7,736) | (36,028) |
Total shareholders’ equity | 1,182,382 | 1,095,731 |
Total liabilities and shareholders’ equity | $ 3,382,020 | $ 3,393,225 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Apr. 01, 2023 | Oct. 01, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 2,284 | $ 1,961 |
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) | 54,293,000 | 54,084,000 |
Common stock, shares outstanding (in shares) | 27,647,000 | 27,679,000 |
Treasury stock, shares (in shares) | 26,646,000 | 26,405,000 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Treasury stock | Retained earnings | Accumulated other comprehensive loss |
Beginning of period (in shares) at Oct. 02, 2021 | 28,047,000 | |||||
Exercise of stock options and vesting of other share-based awards | 228,000 | |||||
Treasury shares purchased (in shares) | (416,000) | |||||
End of period (in shares) at Apr. 02, 2022 | 27,859,000 | |||||
Beginning of period at Oct. 02, 2021 | $ 1,028,232 | $ 538 | $ 639,778 | $ (1,043,091) | $ 1,433,991 | $ (2,984) |
Exercise of stock options and vesting of other share-based awards | 3 | |||||
Share-based compensation expense | 12,178 | |||||
Exercise of stock options and vesting of other share-based awards, including tax withholding | (10,781) | |||||
Treasury shares purchased | (35,135) | |||||
Net income | 50,292 | 50,292 | ||||
Other comprehensive income (loss) | (4,198) | (4,198) | ||||
End of period at Apr. 02, 2022 | 1,040,591 | $ 541 | 641,175 | (1,078,226) | 1,484,283 | (7,182) |
Beginning of period (in shares) at Jan. 01, 2022 | 27,997,000 | |||||
Exercise of stock options and vesting of other share-based awards | 168,000 | |||||
Treasury shares purchased (in shares) | (306,000) | |||||
End of period (in shares) at Apr. 02, 2022 | 27,859,000 | |||||
Beginning of period at Jan. 01, 2022 | 1,044,095 | $ 539 | 642,654 | (1,053,222) | 1,457,414 | (3,290) |
Exercise of stock options and vesting of other share-based awards | 2 | |||||
Share-based compensation expense | 5,908 | |||||
Exercise of stock options and vesting of other share-based awards, including tax withholding | (7,387) | |||||
Treasury shares purchased | (25,004) | |||||
Net income | 26,869 | 26,869 | ||||
Other comprehensive income (loss) | (3,892) | (3,892) | ||||
End of period at Apr. 02, 2022 | $ 1,040,591 | $ 541 | 641,175 | (1,078,226) | 1,484,283 | (7,182) |
Beginning of period (in shares) at Oct. 01, 2022 | 27,679,000 | 27,679,000 | ||||
Exercise of stock options and vesting of other share-based awards | 209,000 | |||||
Treasury shares purchased (in shares) | (241,000) | |||||
End of period (in shares) at Apr. 01, 2023 | 27,647,000 | 27,647,000 | ||||
Beginning of period at Oct. 01, 2022 | $ 1,095,731 | $ 541 | 652,467 | (1,093,483) | 1,572,234 | (36,028) |
Exercise of stock options and vesting of other share-based awards | 2 | |||||
Share-based compensation expense | 11,482 | |||||
Exercise of stock options and vesting of other share-based awards, including tax withholding | (12,282) | |||||
Treasury shares purchased | (23,877) | |||||
Net income | 83,034 | 83,034 | ||||
Other comprehensive income (loss) | 28,292 | 28,292 | ||||
End of period at Apr. 01, 2023 | $ 1,182,382 | $ 543 | 651,667 | (1,117,360) | 1,655,268 | (7,736) |
Beginning of period (in shares) at Dec. 31, 2022 | 27,612,000 | |||||
Exercise of stock options and vesting of other share-based awards | 160,000 | |||||
Treasury shares purchased (in shares) | (125,000) | |||||
End of period (in shares) at Apr. 01, 2023 | 27,647,000 | 27,647,000 | ||||
Beginning of period at Dec. 31, 2022 | $ 1,150,259 | $ 541 | 654,059 | (1,104,953) | 1,614,424 | (13,812) |
Exercise of stock options and vesting of other share-based awards | 2 | |||||
Share-based compensation expense | 5,799 | |||||
Exercise of stock options and vesting of other share-based awards, including tax withholding | (8,191) | |||||
Treasury shares purchased | (12,407) | |||||
Net income | 40,844 | 40,844 | ||||
Other comprehensive income (loss) | 6,076 | 6,076 | ||||
End of period at Apr. 01, 2023 | $ 1,182,382 | $ 543 | $ 651,667 | $ (1,117,360) | $ 1,655,268 | $ (7,736) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Cash flows from operating activities | ||
Net income | $ 83,034 | $ 50,292 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Depreciation and amortization | 33,434 | 30,936 |
Share-based compensation expense and related charges | 11,482 | 12,437 |
Other, net | 460 | 933 |
Changes in operating assets and liabilities, excluding impacts of currency: | ||
Accounts receivable | 84,392 | (54,099) |
Contract assets | 5,988 | (335) |
Inventories | (33,910) | (405,648) |
Other current and non-current assets | (3,007) | (10,591) |
Accrued income taxes payable | (8,064) | (6,836) |
Accounts payable | (86,054) | 138,343 |
Customer deposits | 47,033 | 160,218 |
Other current and non-current liabilities | (77,632) | 79,697 |
Cash flows provided by (used in) operating activities | 57,156 | (4,653) |
Cash flows from investing activities | ||
Payments for property, plant and equipment | (49,491) | (64,181) |
Other, net | 1,876 | (77) |
Cash flows used in investing activities | (47,615) | (64,258) |
Cash flows from financing activities | ||
Borrowings under debt agreements | 354,000 | 377,000 |
Payments on debt and finance lease obligations | (336,267) | (223,282) |
Repurchases of common stock | (23,877) | (35,135) |
Proceeds from exercise of stock options | 0 | 307 |
Payments related to tax withholding for share-based compensation | (12,280) | (11,089) |
Cash flows (used in) provided by financing activities | (18,424) | 107,801 |
Effect of exchange rate changes on cash and cash equivalents | 3,777 | (527) |
Net (decrease) increase in cash and cash equivalents and restricted cash | (5,106) | 38,363 |
Cash and cash equivalents and restricted cash: | ||
Beginning of period | 275,470 | 270,513 |
End of period | $ 270,364 | $ 308,876 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Apr. 01, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Basis of Presentation: The accompanying Condensed Consolidated Financial Statements included herein have been prepared by Plexus Corp. and its subsidiaries (together “Plexus” or the “Company”) without audit and pursuant to the rules and regulations of the United States (“U.S.”) Securities and Exchange Commission (“SEC”). The accompanying Condensed Consolidated Financial Statements reflect all adjustments, which include normal recurring adjustments necessary for the fair statement of the consolidated financial position of the Company as of April 1, 2023 and October 1, 2022, the results of operations and shareholders' equity for the three and six months ended April 1, 2023 and April 2, 2022, and the cash flows for the same six month periods. The Company’s fiscal year ends on the Saturday closest to September 30. The Company uses a “4-4-5” weekly accounting system for the interim periods in each quarter. Each quarter, therefore, ends on a Saturday at the end of the 4-4-5 period. Periodically, an additional week must be added to the fiscal year to re-align with the Saturday closest to September 30. All fiscal quarters presented herein included 13 weeks. Certain information and footnote disclosures, normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"), have been condensed or omitted pursuant to the SEC’s rules and regulations dealing with interim financial statements. However, the Company believes that the disclosures made in the Condensed Consolidated Financial Statements included herein are adequate to make the information presented not misleading. It is suggested that these Condensed Consolidated Financial Statements be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s 2022 Annual Report on Form 10-K. The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and notes thereto. The Company has considered information available as of the date of issuance of these financial statements and, other than the information disclosed in Note 16, "Subsequent Event", 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. Recently Issued Accounting Pronouncements Not Yet Adopted: In September 2022, the FASB issued ASU 2022-04, which requires enhanced disclosures about supplier finance programs. The guidance is effective for the Company beginning in the first quarter of fiscal 2024. Early adoption is permitted. The Company is currently in the process of assessing the impacts of the guidance. The Company does not believe that any other recently issued accounting standards will have a material impact on its Consolidated Financial Statements, or apply to its operations. |
Inventories
Inventories | 6 Months Ended |
Apr. 01, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories as of April 1, 2023 and October 1, 2022 consisted of the following (in thousands): April 1, October 1, 2022 Raw materials $ 1,477,553 $ 1,433,353 Work-in-process 82,070 81,207 Finished goods 90,096 88,223 Total inventories, net $ 1,649,719 $ 1,602,783 In certain circumstances, per contractual terms, customer deposits are received by the Company to offset inventory risks. The total amount of customer deposits related to inventory and included within current liabilities on the accompanying Condensed Consolidated Balance Sheets as of April 1, 2023 and October 1, 2022 were $516.7 million a |
Debt, Finance Lease and Other F
Debt, Finance Lease and Other Financing Obligations | 6 Months Ended |
Apr. 01, 2023 | |
Debt and Lease Obligation [Abstract] | |
Debt, Finance Lease and Other Financing Obligations | Debt, Finance Lease and Other Financing Obligations Debt, finance lease and other financing obligations as of April 1, 2023 and October 1, 2022 consisted of the following (in thousands): April 1, October 1, 2022 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 Credit Facility 284,000 263,000 Finance lease and other financing obligations 50,093 50,269 Unamortized deferred financing fees (1,352) (1,522) Total obligations 482,741 461,747 Less: current portion (294,011) (273,971) Long-term debt, finance lease and other financing obligations, net of current portion $ 188,730 $ 187,776 As of April 1, 2023, the Company was in compliance with covenants for all debt agreements. During the six months ended April 1, 2023, the highest daily borrowing under the Company's 5-year senior unsecured revolving credit facility (referred to as the "Credit Facility") was $412.0 million; the average daily balance was $344.5 million. During the six months ended April 2, 2022, the highest daily borrowing was $294.0 million; the average daily balance was $168.7 million. The fair value of the Company’s debt, excluding finance lease and other financing obligations, was $428.3 million and $401.6 million as of April 1, 2023 and October 1, 2022, respectively. The carrying value of the Company's debt, excluding finance lease and other financing obligations, was $434.0 million and $413.0 million as of April 1, 2023 and October 1, 2022, respectively. If measured at fair value in the financial stateme nts, the Company's debt would be classified as Level 2 in the fair value hierarchy. Refer to Note 4, "Derivatives and Fair Value Measurements," for further information regarding the Company's fair value calculations and classifications. |
Derivatives and Fair Value Meas
Derivatives and Fair Value Measurements | 6 Months Ended |
Apr. 01, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Fair Value Measurements | Derivatives and Fair Value Measurements All derivatives are recognized in the accompanying Condensed Consolidated Balance Sheets at their estimated fair value. The Company uses derivatives to manage the variability of foreign currency obligations. The Company has cash flow hedges related to forecasted foreign currency obligations, in addition to non-designated hedges to manage foreign currency exposures associated with certain foreign currency denominated assets and liabilities. The Company does not enter into derivatives for speculative purposes. 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 Condensed Consolidated Bala nce Sheets until earnings are affected by the variability of the cash flows. In the next twelve months, the Company estimates t hat $5.3 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 Condensed Consolidated Statements of Comprehensive Income. The Company enters into forward currency exchange contracts for its operations in certain jurisdictions in the AMER and APAC segments on a rolling basis. The Company had cash flow hedges outstanding with a notional value of $192.9 million as of April 1, 2023, and a notional value of $143.2 million as of October 1, 2022. 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 $5.3 million asset as of April 1, 2023, and a $6.0 million liability as of October 1, 2022. The Company had additional forward currency exchange contracts outstanding as of April 1, 2023, with a notional value of $126.2 million; there were $60.1 million of such contracts outstanding as of October 1, 2022. The Company did not designate these derivative instruments as hedging instruments. The net settlement amount (fair value) related to these contracts is recorded on the Condensed Consolidated Balance Sheets as either a current or long-term asset or liability, depending on the term, and as an element of "Miscellaneous, net" in the Condensed Consolidated Statements of Comprehensive Income. The total fair value of these derivatives was a $0.5 million liability as of April 1, 2023, and a $0.3 million asset as of October 1, 2022. The tables below present information regarding the fair values of derivative instruments and the effects of derivative instruments on the Company’s Condensed Consolidated Financial Statements: Fair Values of Derivative Instruments (in thousands) Derivative Assets Derivative Liabilities April 1, October 1, April 1, October 1, 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 $ 5,454 $ 715 Other accrued liabilities $ 123 $ 6,747 Fair Values of Derivative Instruments (in thousands) Derivative Assets Derivative Liabilities April 1, October 1, April 1, October 1, 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 $ 907 $ 1,555 Other accrued liabilities $ 1,382 $ 1,249 The Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Loss ("OCL") (in thousands) for the Three Months Ended Derivatives in cash flow hedging relationships Amount of Gain Recognized in OCL on Derivatives April 1, 2023 April 2, 2022 Foreign currency forward contracts $ 3,574 $ 317 Derivative Impact on Gain (Loss) Recognized in Condensed Consolidated Statements of Comprehensive Income (in thousands) for the Three Months Ended Derivatives in cash flow hedging relationships Classification of Gain (Loss) Reclassified from Accumulated OCL into Income Amount of Gain (Loss) Reclassified from Accumulated OCL into Income April 1, 2023 April 2, 2022 Foreign currency forward contracts Cost of sales $ 516 $ (109) Foreign currency forward contracts Selling and administrative expenses 134 (10) Derivatives not designated as hedging instruments Location of Loss Recognized on Derivatives in Income Amount of Loss on Derivatives Recognized in Income April 1, 2023 April 2, 2022 Foreign currency forward contracts Miscellaneous, net $ (684) $ (782) The Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Loss ("OCL") (in thousands) for the Six Months Ended Derivatives in cash flow hedging relationships Amount of Gain Recognized in OCL on Derivatives April 1, 2023 April 2, 2022 Foreign currency forward contracts $ 9,724 $ 787 Derivative Impact on (Loss) Gain Recognized in Condensed Consolidated Statements of Comprehensive Income (in thousands) for the Six Months Ended Derivatives in cash flow hedging relationships Classification of Loss Reclassified from Accumulated OCL into Income Amount of Loss Reclassified from Accumulated OCL into Income April 1, 2023 April 2, 2022 Foreign currency forward contracts Cost of sales $ (1,616) $ (852) Foreign currency forward contracts Selling and administrative expenses (23) (69) Derivatives not designated as hedging instruments Location of Gain (Loss) Recognized on Derivatives in Income Amount of Gain (Loss) on Derivatives Recognized in Income April 1, 2023 April 2, 2022 Foreign currency forward contracts Miscellaneous, net $ 63 $ (825) 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 April 1, 2023 and October 1, 2022, by input level: Fair Value Measurements Using Input Levels Asset/(Liability) (in thousands) Fiscal period ended April 1, 2023 Level 1 Level 2 Level 3 Total Derivatives Foreign currency forward contracts $ — $ 4,856 $ — $ 4,856 Fiscal period ended October 1, 2022 Derivatives Foreign currency forward contracts $ — $ (5,726) $ — $ (5,726) 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 | 6 Months Ended |
Apr. 01, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense for the three and six months ended April 1, 2023 was $7.0 million and $14.2 million, respectively, compared to $4.4 million and $7.8 million for the three and six months ended April 2, 2022, respectively. The effective tax rate for the three and six months ended April 1, 2023 was 14.6% compared to the effective tax rates of 14.2% and 13.4% for the three and six months ended April 2, 2022, respectively. The increases in effective tax rates for the three and six months ended April 1, 2023 compared to the three and six months ended April 2, 2022 were primarily due to a change in the geographic distribution of pre-tax book income. The amount of unrecognized tax benefits recorded for uncertain tax positions increased by $0.9 million for the three months ended April 1, 2023. The Company recognizes accrued interest and penalties on uncertain tax positions as a component of income tax expense. The amount of interest and penalties recorded for the three and six months ended April 1, 2023 was $0.2 million and $0.3 million, respectively. One or more uncertain tax positions may be settled within the next 12 months. Settlement of these matters is not expected to have a material effect on the Company's consolidated results of operations, financial position and cash flows. The Company is not currently under examination by taxing authorities in the U.S. The Company is under audit in a foreign jurisdiction but any settlement is not expected to have a material impact. The Company maintains valuation allowances when it is more likely than not that all or a portion of a net deferred tax asset will not be realized. During the three months ended April 1, 2023, the Company continued to record a full valuation allowance against its net deferred tax assets in certain jurisdictions within the EMEA segment and a partial valuation against its net deferred tax assets in certain jurisdictions within the AMER segment, as it was more likely than not that these assets would not be fully realized based primarily on historical performance. The Company will continue to provide a valuation allowance against its net deferred tax assets in each of the applicable jurisdictions going forward until it determines it is more likely than not that the deferred tax assets will be realized. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Apr. 01, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following is a reconciliation of the amounts utilized in the computation of basic and diluted earnings per share for the three and six months ended April 1, 2023 and April 2, 2022 (in thousands, except per share amounts): Three Months Ended Six Months Ended April 1, 2023 April 2, 2022 April 1, 2023 April 2, 2022 Net income $ 40,844 $ 26,869 $ 83,034 $ 50,292 Basic weighted average common shares outstanding 27,661 27,987 27,650 28,002 Dilutive effect of share-based awards and options outstanding 523 440 623 564 Diluted weighted average shares outstanding 28,184 28,427 28,273 28,566 Earnings per share: Basic $ 1.48 $ 0.96 $ 3.00 $ 1.80 Diluted $ 1.45 $ 0.95 $ 2.94 $ 1.76 For the three and six months ended April 1, 2023 and April 2, 2022, share-based awards for less than 0.1 million shares were not included in the computation of diluted earnings per share as they were antidilutive. See also Note 12, "Shareholders' Equity," for information regarding the Company's share repurchase plans. |
Leases
Leases | 6 Months Ended |
Apr. 01, 2023 | |
Leases [Abstract] | |
Leases | Leases The components of lease expense for the three and six months ended April 1, 2023 and April 2, 2022 indicated were as follows (in thousands): Three Months Ended Six Months Ended April 1, April 2, April 1, April 2, Finance lease expense: Amortization of right-of-use assets $ 1,952 $ 1,667 $ 3,566 $ 3,360 Interest on lease liabilities 1,260 1,229 2,532 2,451 Operating lease expense 2,736 2,838 5,342 5,695 Other lease expense 1,830 1,443 3,596 2,847 Total $ 7,778 $ 7,177 $ 15,036 $ 14,353 Based on the nature of the right-of use ("ROU") asset, amortization of finance lease ROU 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 Condensed 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. The following tables sets forth the amount of lease assets and lease liabilities included in the Company’s Condensed Consolidated Balance Sheets (in thousands): Financial Statement Line Item April 1, October 1, 2022 ASSETS Finance lease assets Property, plant and equipment, net $ 40,869 $ 40,063 Operating lease assets Operating lease right-of-use assets 62,795 65,134 Total lease assets $ 103,664 $ 105,197 LIABILITIES AND SHAREHOLDERS' EQUITY Current Finance lease liabilities Current portion of long-term debt and finance lease obligations $ 6,645 $ 5,087 Operating lease liabilities Other accrued liabilities 8,358 7,948 Non-current Finance lease liabilities Long-term debt and finance lease obligations, net of current portion 40,013 39,257 Operating lease liabilities Long-term operating lease liabilities 31,257 33,628 Total lease liabilities $ 86,273 $ 85,920 |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Apr. 01, 2023 | |
Compensation Related Costs [Abstract] | |
Share-Based Compensation | Share-Based CompensationThe Company recognized $5.9 million and $11.7 million of compensation expense associated with share-based awards for the three and six months ended April 1, 2023, respectively, and $6.1 million and $12.4 million for the three and six months ended April 2, 2022, respectively. |
Litigation
Litigation | 6 Months Ended |
Apr. 01, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation | LitigationThe Company is party to lawsuits in the ordinary course of business. We record provisions in the consolidated financial statements for pending legal matters when we determine that an unfavorable outcome is probable, and the amount of the loss can be reasonably estimated. For matters we have not provided for that are reasonably possible to result in an unfavorable outcome, management is unable to estimate the possible loss or range of loss or such amounts have been determined to be immaterial. Currently, management does not believe that any such 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. However, legal proceedings and regulatory and governmental matters are subject to inherent uncertainties, and unfavorable rulings or other events could occur. Unfavorable resolutions could involve substantial fines, civil or criminal penalties, and other expenditures. |
Reportable Segments
Reportable Segments | 6 Months Ended |
Apr. 01, 2023 | |
Segment Reporting [Abstract] | |
Reportable Segments | Reportable SegmentsReportable 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. A segment’s operating income includes its net sales less cost of sales and selling and administrative expenses, but excludes corporate and other expenses. Corporate and other expenses primarily represent corporate selling and administrative expenses, and restructuring costs and other charges, if any. These costs are not allocated to the segments, as management excludes such costs when assessing the performance of the segments. Inter-segment transactions are generally recorded at amounts that approximate arm’s length transactions. The accounting policies for the segments are the same as for the Company taken as a whole. Information about the Company’s three reportable segments for the three and six months ended April 1, 2023 and April 2, 2022 is as follows (in thousands): Three Months Ended Six Months Ended April 1, April 2, April 1, April 2, Net sales: AMER $ 407,806 $ 311,205 $ 797,468 $ 588,551 APAC 587,270 533,885 1,229,174 1,025,557 EMEA 101,794 73,702 191,167 146,565 Elimination of inter-segment sales (26,047) (30,069) (53,061) (54,494) $ 1,070,823 $ 888,723 $ 2,164,748 $ 1,706,179 Operating income: AMER $ 25,767 $ 7,769 $ 43,182 $ 9,559 APAC 69,728 60,860 148,134 121,548 EMEA 1,879 490 1,240 1,446 Corporate and other costs (40,432) (33,282) (78,273) (66,243) 56,942 35,837 114,283 66,310 Other income (expense): Interest expense (8,287) (3,345) (15,181) (6,391) Interest income 759 262 1,693 533 Miscellaneous, net (1,612) (1,446) (3,556) (2,369) Income before income taxes $ 47,802 $ 31,308 $ 97,239 $ 58,083 April 1, October 1, Total assets: AMER $ 1,161,745 $ 1,150,605 APAC 1,770,318 1,807,542 EMEA 371,313 302,901 Corporate and eliminations 78,644 132,177 $ 3,382,020 $ 3,393,225 |
Guarantees
Guarantees | 6 Months Ended |
Apr. 01, 2023 | |
Guarantees and Product Warranties [Abstract] | |
Guarantees | GuaranteesThe Company offers certain indemnifications under its customer manufacturing agreements. In the normal course of business, the Company may from time to time be obligated to indemnify its customers or its customers’ customers against damages or liabilities arising out of the Company’s negligence, misconduct, breach of contract, or infringement of third-party intellectual property rights. Certain agreements have extended broader indemnification, and while most agreements have contractual limits, some do not. However, the Company generally does not provide for such indemnities and seeks indemnification from its customers for damages or liabilities arising out of the Company’s adherence to customers’ specifications or designs or use of materials furnished, or directed to be used, by its customers. The Company does not believe its obligations under such indemnities are material. In the normal course of business, the Company also provides its customers a limited warranty covering workmanship, and in some cases materials, on products manufactured by the Company. Such warranty generally provides that products will be free from defects in the Company’s workmanship and meet mutually agreed-upon specifications for periods generally ranging from 12 months to 24 months. The Company’s obligation is generally limited to correcting, at its expense, any defect by repairing or replacing such defective product. The Company’s warranty generally excludes defects resulting from faulty customer-supplied components, design defects or damage caused by any party or cause other than the Company. The Company provides for an estimate of costs that may be incurred under its limited warranty at the time product revenue is recognized and establishes additional reserves for specifically identified product issues. These costs primarily include labor and materials, as necessary, associated with repair or replacement and are included in the Company's accompanying Condensed Consolidated Balance Sheets in "other accrued liabilities." The primary factors that affect the Company’s warranty liability include the value and the number of shipped units and historical and anticipated rates of warranty claims. As these factors are impacted by actual experience and future expectations, the Company assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. Below is a table summarizing the activity related to the Company’s limited warranty liability for the six months ended April 1, 2023 and April 2, 2022 (in thousands): Six Months Ended April 1, April 2, Reserve balance, beginning of period $ 6,925 $ 6,645 Accruals for warranties issued during the period 1,254 1,885 Settlements (in cash or in kind) during the period (2,243) (1,193) Reserve balance, end of period $ 5,936 $ 7,337 |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Apr. 01, 2023 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders' Equity On August 11, 2021, the Board of Directors approved a share repurchase program under which the Company was authorized to repurchase up to $50.0 million of its common stock (the "2022 Program"). The 2022 Program commenced upon completion of the 2021 Program and was completed in fiscal 2022. During the three months ended April 2, 2022 , the Company repurchased 305,707 shares under this program for $25.0 million at an average price of $81.79 per share. During the six months ended April 2, 2022 , the Company repurchased 416,147 shares under this program for $35.2 million at an average price of $84.43 per share. On August 18, 2022, the Board of Directors approved a share repurchase program under which the Company is authorized to repurchase up to $50.0 million of its common stock (the "2023 Program"). The 2023 Program became effective immediately and has no expiration. During the three months ended April 1, 2023, the Company repurchased 125,639 shares under this program for $12.4 million at an average price of $98.75 per share. During the six months ended April 1, 2023, the Company repurchased 241,362 shares under this program for $23.9 million at an average price of $98.93 per share. As of April 1, 2023, $22.6 million of the 2023 Program remained available to repurchase shares. All shares repurchased under the aforementioned programs were recorded as treasury stock. |
Trade Accounts Receivable Sale
Trade Accounts Receivable Sale Programs | 6 Months Ended |
Apr. 01, 2023 | |
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"), HSBC Bank (China) Company Limited, Xiamen branch (the "HSBC RPA") and other unaffiliated financial institutions, under which the Company may elect to sell receivables; at a discount. All facilities are uncommitted facilities. The maximum facility amount under the MUFG R PA is $340.0 million. The maximum facility amount under the HSBC RPA 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. Transfers of receivables under the programs are accounted for as sales and, accordingly, receivables sold under the programs are excluded from accounts receivable on the Condensed Consolidated Balance Sheets and are reflected as cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows. Proceeds from the transfer reflect the face value of the receivables less a discount. The sale discount is recorded within "Miscellaneous, net" in the Condensed Consolidated Statements of Comprehensive Income in the period of the sale. The Company continues servicing receivables sold and performing all accounts receivable administrative functions, and in exchange receives a servicing fee, under both the MUFG RPA and HSBC RPA. Servicing fees related to trade accounts receivable programs recognized during the three and six months ended April 1, 2023 and April 2, 2022 were not material. The Company sold $225.7 million and $202.2 million of trade accounts receivable under these programs, or their predecessors, during three months ended April 1, 2023 and April 2, 2022, respectively, in exchange for cash proceeds of $222.9 million and $201.5 million, respectively. The Company sold $411.3 million and $350.2 million of trade accounts receivable under these programs, or their predecessors, during the six months ended April 1, 2023 and April 2, 2022, respectively, in exchange for cash proceeds of $406.5 million and $349.0 million, respectively. As of April 1, 2023 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Apr. 01, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers 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 three and six months ended April 1, 2023 and April 2, 2022 indicated disaggregated by geographic reportable segment and market sector (in thousands): Three Months Ended April 1, 2023 Reportable Segment: AMER APAC EMEA Total Market Sector: Industrial $ 98,686 $ 312,840 $ 27,755 $ 439,281 Healthcare/Life Sciences 228,245 206,442 52,683 487,370 Aerospace/Defense 76,731 47,445 19,996 144,172 External revenue 403,662 566,727 100,434 1,070,823 Inter-segment sales 4,144 20,543 1,360 26,047 Segment revenue $ 407,806 $ 587,270 $ 101,794 $ 1,096,870 Three Months Ended April 2, 2022 Reportable Segment: AMER APAC EMEA Total Market Sector: Industrial $ 98,267 $ 302,326 $ 14,061 $ 414,654 Healthcare/Life Sciences 143,855 165,099 44,294 353,248 Aerospace/Defense 67,213 38,923 14,685 120,821 External revenue 309,335 506,348 73,040 888,723 Inter-segment sales 1,870 27,537 662 30,069 Segment revenue $ 311,205 $ 533,885 $ 73,702 $ 918,792 Six Months Ended April 1, 2023 Reportable Segment: AMER APAC EMEA Total Market Sector: Industrial $ 201,713 $ 663,424 $ 46,226 $ 911,363 Healthcare/Life Sciences 443,626 429,732 101,879 975,237 Aerospace/Defense 144,753 93,099 40,296 278,148 External revenue 790,092 1,186,255 188,401 2,164,748 Inter-segment sales 7,376 42,919 2,766 53,061 Segment revenue $ 797,468 $ 1,229,174 $ 191,167 $ 2,217,809 Six Months Ended April 2, 2022 Reportable Segment: AMER APAC EMEA Total Market Sector: Industrial $ 181,512 $ 567,601 $ 29,368 $ 778,481 Healthcare/Life Sciences 279,817 334,336 83,560 697,713 Aerospace/Defense 122,963 74,666 32,356 229,985 External revenue 584,292 976,603 145,284 1,706,179 Inter-segment sales 4,259 48,954 1,281 54,494 Segment revenue $ 588,551 $ 1,025,557 $ 146,565 $ 1,760,673 For the three and six months ended April 1, 2023, approximately 80% and 81% of the Company's revenue, respectively, was recognized as products and services were transferred over time. For the three and six months ended April 2, 2022, approximately 85% and 86% of the Company's revenue, respectively, was recognized as products and services were transferred over time. Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, contract assets and deferred revenue on the Company’s accompanying Condensed Consolidated Balance Sheets. Contract Assets : For performance obligations satisfied at a point in time, billing occurs subsequent to revenue recognition, at which point the customer has been billed and the resulting asset is recorded within accounts receivable. For performance obligations satisfied over time as work progresses, the Company has an unconditional right to payment, which results in the recognition of contract assets. The following table summarizes the activity in the Company's contract assets during the six months ended April 1, 2023 and April 2, 2022 (in thousands): Six Months Ended April 1, 2023 April 2, 2022 Contract assets, beginning of period $ 138,540 $ 115,283 Revenue recognized during the period 1,743,054 1,460,802 Amounts collected or invoiced during the period (1,748,565) (1,459,998) Contract assets, end of period $ 133,029 $ 116,087 Deferred Revenue : Deferred revenue is recorded when consideration is received from a customer prior to transferring goods or services to the customer under the terms of the contract, which is included in other accrued liabilities on the Condensed Consolidated Balance Sheets. As of April 1, 2023 and October 1, 2022 the balance of advance payments from customers was |
Restructuring and Impairment Ch
Restructuring and Impairment Charges | 6 Months Ended |
Apr. 01, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Impairment Charges | Restructuring and Impairment Charges Restructuring and impairment charges are recorded within restructuring and impairment charges on the Condensed Consolidated Statements of Comprehensive Income. Restructuring liabilities are recorded within other accrued liabilities on the Condensed Consolidated Balance Sheets. For the three and six months ended April 1, 2023, the Company did not incur any restructuring and impairment charges. For the three months ended April 2, 2022, the company did not incur any restructuring and impairment charges. For the six months ended April 2, 2022, the Company recorded $2.0 million of restructuring and charges primarily due to employee severance costs associated with a facility transition in the Company's APAC segment. The Company recognized a tax benefit of $0.2 million related to restructuring and impairment charges for the six months ended April 2, 2022. The Company's restructuring accrual activity for the three and six months ended April 2, 2022 is included in the tables below (in thousands): Fixed Asset and Operating ROU Asset Impairment Employee Termination and Severance Costs Total Accrual balance, as of October 2, 2021 $ — $ 71 $ 71 Restructuring and impairment costs 255 1,766 2,021 Amounts utilized (255) (75) (330) Accrual balance, as of January 1, 2022 $ — $ 1,762 $ 1,762 Restructuring and impairment costs — — — Amounts utilized — (100) (100) Accrual balance, as of April 2, 2022 $ — $ 1,662 $ 1,662 The accrual balances outstanding as of April 2, 2022 were fully utilized as of April 1, 2023. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Apr. 01, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventDuring April 2023, the Company committed to a restructuring plan and anticipates incurring approximately $9.0 million of restructuring and other non-recurring costs during the third quarter of fiscal 2023. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Apr. 01, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: The accompanying Condensed Consolidated Financial Statements included herein have been prepared by Plexus Corp. and its subsidiaries (together “Plexus” or the “Company”) without audit and pursuant to the rules and regulations of the United States (“U.S.”) Securities and Exchange Commission (“SEC”). The accompanying Condensed Consolidated Financial Statements reflect all adjustments, which include normal recurring adjustments necessary for the fair statement of the consolidated financial position of the Company as of April 1, 2023 and October 1, 2022, the results of operations and shareholders' equity for the three and six months ended April 1, 2023 and April 2, 2022, and the cash flows for the same six month periods. The Company’s fiscal year ends on the Saturday closest to September 30. The Company uses a “4-4-5” weekly accounting system for the interim periods in each quarter. Each quarter, therefore, ends on a Saturday at the end of the 4-4-5 period. Periodically, an additional week must be added to the fiscal year to re-align with the Saturday closest to September 30. All fiscal quarters presented herein included 13 weeks. Certain information and footnote disclosures, normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"), have been condensed or omitted pursuant to the SEC’s rules and regulations dealing with interim financial statements. However, the Company believes that the disclosures made in the Condensed Consolidated Financial Statements included herein are adequate to make the information presented not misleading. It is suggested that these Condensed Consolidated Financial Statements be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s 2022 Annual Report on Form 10-K. |
Recently Adopted Accounting Pronouncements & Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted: In September 2022, the FASB issued ASU 2022-04, which requires enhanced disclosures about supplier finance programs. The guidance is effective for the Company beginning in the first quarter of fiscal 2024. Early adoption is permitted. The Company is currently in the process of assessing the impacts of the guidance. The Company does not believe that any other recently issued accounting standards will have a material impact on its Consolidated Financial Statements, or apply to its operations. |
Fair Value of Financial Instruments | Fair Value Measurements: Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (or exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses quoted market prices when available or discounted cash flows to calculate fair value. The accounting guidance establishes a fair value hierarchy based on three levels of inputs that may be used to measure fair value. The input levels are: Level 1: Quoted (observable) market prices in active markets for identical assets or liabilities. Level 2: Inputs other than Level 1 that are observable, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the asset or liability. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Apr. 01, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories as of April 1, 2023 and October 1, 2022 consisted of the following (in thousands): April 1, October 1, 2022 Raw materials $ 1,477,553 $ 1,433,353 Work-in-process 82,070 81,207 Finished goods 90,096 88,223 Total inventories, net $ 1,649,719 $ 1,602,783 |
Debt, Finance Lease and Other_2
Debt, Finance Lease and Other Financing Obligations (Tables) | 6 Months Ended |
Apr. 01, 2023 | |
Debt and Lease Obligation [Abstract] | |
Schedule of Debt, Finance Lease and Other Financing Obligations | Debt, finance lease and other financing obligations as of April 1, 2023 and October 1, 2022 consisted of the following (in thousands): April 1, October 1, 2022 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 Credit Facility 284,000 263,000 Finance lease and other financing obligations 50,093 50,269 Unamortized deferred financing fees (1,352) (1,522) Total obligations 482,741 461,747 Less: current portion (294,011) (273,971) Long-term debt, finance lease and other financing obligations, net of current portion $ 188,730 $ 187,776 |
Derivatives and Fair Value Me_2
Derivatives and Fair Value Measurements (Tables) | 6 Months Ended |
Apr. 01, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Values of Derivative Instruments | The tables below present information regarding the fair values of derivative instruments and the effects of derivative instruments on the Company’s Condensed Consolidated Financial Statements: Fair Values of Derivative Instruments (in thousands) Derivative Assets Derivative Liabilities April 1, October 1, April 1, October 1, 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 $ 5,454 $ 715 Other accrued liabilities $ 123 $ 6,747 Fair Values of Derivative Instruments (in thousands) Derivative Assets Derivative Liabilities April 1, October 1, April 1, October 1, 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 $ 907 $ 1,555 Other accrued liabilities $ 1,382 $ 1,249 |
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 Three Months Ended Derivatives in cash flow hedging relationships Amount of Gain Recognized in OCL on Derivatives April 1, 2023 April 2, 2022 Foreign currency forward contracts $ 3,574 $ 317 The Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Loss ("OCL") (in thousands) for the Six Months Ended Derivatives in cash flow hedging relationships Amount of Gain Recognized in OCL on Derivatives April 1, 2023 April 2, 2022 Foreign currency forward contracts $ 9,724 $ 787 |
Schedule of Derivative Impact on (Loss) Gain Recognized in Income | Derivative Impact on Gain (Loss) Recognized in Condensed Consolidated Statements of Comprehensive Income (in thousands) for the Three Months Ended Derivatives in cash flow hedging relationships Classification of Gain (Loss) Reclassified from Accumulated OCL into Income Amount of Gain (Loss) Reclassified from Accumulated OCL into Income April 1, 2023 April 2, 2022 Foreign currency forward contracts Cost of sales $ 516 $ (109) Foreign currency forward contracts Selling and administrative expenses 134 (10) Derivative Impact on (Loss) Gain Recognized in Condensed Consolidated Statements of Comprehensive Income (in thousands) for the Six Months Ended Derivatives in cash flow hedging relationships Classification of Loss Reclassified from Accumulated OCL into Income Amount of Loss Reclassified from Accumulated OCL into Income April 1, 2023 April 2, 2022 Foreign currency forward contracts Cost of sales $ (1,616) $ (852) Foreign currency forward contracts Selling and administrative expenses (23) (69) |
Schedule of Amount of Gain (Loss) on Derivatives Recognized in Income | Derivatives not designated as hedging instruments Location of Loss Recognized on Derivatives in Income Amount of Loss on Derivatives Recognized in Income April 1, 2023 April 2, 2022 Foreign currency forward contracts Miscellaneous, net $ (684) $ (782) Derivatives not designated as hedging instruments Location of Gain (Loss) Recognized on Derivatives in Income Amount of Gain (Loss) on Derivatives Recognized in Income April 1, 2023 April 2, 2022 Foreign currency forward contracts Miscellaneous, net $ 63 $ (825) |
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 April 1, 2023 and October 1, 2022, by input level: Fair Value Measurements Using Input Levels Asset/(Liability) (in thousands) Fiscal period ended April 1, 2023 Level 1 Level 2 Level 3 Total Derivatives Foreign currency forward contracts $ — $ 4,856 $ — $ 4,856 Fiscal period ended October 1, 2022 Derivatives Foreign currency forward contracts $ — $ (5,726) $ — $ (5,726) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Apr. 01, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliation of Amounts Utilized in Computation of Basic and Diluted Earnings Per Share | The following is a reconciliation of the amounts utilized in the computation of basic and diluted earnings per share for the three and six months ended April 1, 2023 and April 2, 2022 (in thousands, except per share amounts): Three Months Ended Six Months Ended April 1, 2023 April 2, 2022 April 1, 2023 April 2, 2022 Net income $ 40,844 $ 26,869 $ 83,034 $ 50,292 Basic weighted average common shares outstanding 27,661 27,987 27,650 28,002 Dilutive effect of share-based awards and options outstanding 523 440 623 564 Diluted weighted average shares outstanding 28,184 28,427 28,273 28,566 Earnings per share: Basic $ 1.48 $ 0.96 $ 3.00 $ 1.80 Diluted $ 1.45 $ 0.95 $ 2.94 $ 1.76 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Apr. 01, 2023 | |
Leases [Abstract] | |
Schedule of Lease Expense and Other Information | The components of lease expense for the three and six months ended April 1, 2023 and April 2, 2022 indicated were as follows (in thousands): Three Months Ended Six Months Ended April 1, April 2, April 1, April 2, Finance lease expense: Amortization of right-of-use assets $ 1,952 $ 1,667 $ 3,566 $ 3,360 Interest on lease liabilities 1,260 1,229 2,532 2,451 Operating lease expense 2,736 2,838 5,342 5,695 Other lease expense 1,830 1,443 3,596 2,847 Total $ 7,778 $ 7,177 $ 15,036 $ 14,353 |
Schedule of Lease Assets and Liabilities | The following tables sets forth the amount of lease assets and lease liabilities included in the Company’s Condensed Consolidated Balance Sheets (in thousands): Financial Statement Line Item April 1, October 1, 2022 ASSETS Finance lease assets Property, plant and equipment, net $ 40,869 $ 40,063 Operating lease assets Operating lease right-of-use assets 62,795 65,134 Total lease assets $ 103,664 $ 105,197 LIABILITIES AND SHAREHOLDERS' EQUITY Current Finance lease liabilities Current portion of long-term debt and finance lease obligations $ 6,645 $ 5,087 Operating lease liabilities Other accrued liabilities 8,358 7,948 Non-current Finance lease liabilities Long-term debt and finance lease obligations, net of current portion 40,013 39,257 Operating lease liabilities Long-term operating lease liabilities 31,257 33,628 Total lease liabilities $ 86,273 $ 85,920 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 6 Months Ended |
Apr. 01, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segments Information | Information about the Company’s three reportable segments for the three and six months ended April 1, 2023 and April 2, 2022 is as follows (in thousands): Three Months Ended Six Months Ended April 1, April 2, April 1, April 2, Net sales: AMER $ 407,806 $ 311,205 $ 797,468 $ 588,551 APAC 587,270 533,885 1,229,174 1,025,557 EMEA 101,794 73,702 191,167 146,565 Elimination of inter-segment sales (26,047) (30,069) (53,061) (54,494) $ 1,070,823 $ 888,723 $ 2,164,748 $ 1,706,179 Operating income: AMER $ 25,767 $ 7,769 $ 43,182 $ 9,559 APAC 69,728 60,860 148,134 121,548 EMEA 1,879 490 1,240 1,446 Corporate and other costs (40,432) (33,282) (78,273) (66,243) 56,942 35,837 114,283 66,310 Other income (expense): Interest expense (8,287) (3,345) (15,181) (6,391) Interest income 759 262 1,693 533 Miscellaneous, net (1,612) (1,446) (3,556) (2,369) Income before income taxes $ 47,802 $ 31,308 $ 97,239 $ 58,083 April 1, October 1, Total assets: AMER $ 1,161,745 $ 1,150,605 APAC 1,770,318 1,807,542 EMEA 371,313 302,901 Corporate and eliminations 78,644 132,177 $ 3,382,020 $ 3,393,225 |
Guarantees (Tables)
Guarantees (Tables) | 6 Months Ended |
Apr. 01, 2023 | |
Guarantees and Product Warranties [Abstract] | |
Schedule of Activity Related to Limited Warranty Liability | Below is a table summarizing the activity related to the Company’s limited warranty liability for the six months ended April 1, 2023 and April 2, 2022 (in thousands): Six Months Ended April 1, April 2, Reserve balance, beginning of period $ 6,925 $ 6,645 Accruals for warranties issued during the period 1,254 1,885 Settlements (in cash or in kind) during the period (2,243) (1,193) Reserve balance, end of period $ 5,936 $ 7,337 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Apr. 01, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The table below includes the Company’s revenue for the three and six months ended April 1, 2023 and April 2, 2022 indicated disaggregated by geographic reportable segment and market sector (in thousands): Three Months Ended April 1, 2023 Reportable Segment: AMER APAC EMEA Total Market Sector: Industrial $ 98,686 $ 312,840 $ 27,755 $ 439,281 Healthcare/Life Sciences 228,245 206,442 52,683 487,370 Aerospace/Defense 76,731 47,445 19,996 144,172 External revenue 403,662 566,727 100,434 1,070,823 Inter-segment sales 4,144 20,543 1,360 26,047 Segment revenue $ 407,806 $ 587,270 $ 101,794 $ 1,096,870 Three Months Ended April 2, 2022 Reportable Segment: AMER APAC EMEA Total Market Sector: Industrial $ 98,267 $ 302,326 $ 14,061 $ 414,654 Healthcare/Life Sciences 143,855 165,099 44,294 353,248 Aerospace/Defense 67,213 38,923 14,685 120,821 External revenue 309,335 506,348 73,040 888,723 Inter-segment sales 1,870 27,537 662 30,069 Segment revenue $ 311,205 $ 533,885 $ 73,702 $ 918,792 Six Months Ended April 1, 2023 Reportable Segment: AMER APAC EMEA Total Market Sector: Industrial $ 201,713 $ 663,424 $ 46,226 $ 911,363 Healthcare/Life Sciences 443,626 429,732 101,879 975,237 Aerospace/Defense 144,753 93,099 40,296 278,148 External revenue 790,092 1,186,255 188,401 2,164,748 Inter-segment sales 7,376 42,919 2,766 53,061 Segment revenue $ 797,468 $ 1,229,174 $ 191,167 $ 2,217,809 Six Months Ended April 2, 2022 Reportable Segment: AMER APAC EMEA Total Market Sector: Industrial $ 181,512 $ 567,601 $ 29,368 $ 778,481 Healthcare/Life Sciences 279,817 334,336 83,560 697,713 Aerospace/Defense 122,963 74,666 32,356 229,985 External revenue 584,292 976,603 145,284 1,706,179 Inter-segment sales 4,259 48,954 1,281 54,494 Segment revenue $ 588,551 $ 1,025,557 $ 146,565 $ 1,760,673 |
Schedule of Contract Assets | The following table summarizes the activity in the Company's contract assets during the six months ended April 1, 2023 and April 2, 2022 (in thousands): Six Months Ended April 1, 2023 April 2, 2022 Contract assets, beginning of period $ 138,540 $ 115,283 Revenue recognized during the period 1,743,054 1,460,802 Amounts collected or invoiced during the period (1,748,565) (1,459,998) Contract assets, end of period $ 133,029 $ 116,087 |
Restructuring and Impairment _2
Restructuring and Impairment Charges (Tables) | 6 Months Ended |
Apr. 01, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Accrual Activity | The Company's restructuring accrual activity for the three and six months ended April 2, 2022 is included in the tables below (in thousands): Fixed Asset and Operating ROU Asset Impairment Employee Termination and Severance Costs Total Accrual balance, as of October 2, 2021 $ — $ 71 $ 71 Restructuring and impairment costs 255 1,766 2,021 Amounts utilized (255) (75) (330) Accrual balance, as of January 1, 2022 $ — $ 1,762 $ 1,762 Restructuring and impairment costs — — — Amounts utilized — (100) (100) Accrual balance, as of April 2, 2022 $ — $ 1,662 $ 1,662 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Oct. 01, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,477,553 | $ 1,433,353 |
Work-in-process | 82,070 | 81,207 |
Finished goods | 90,096 | 88,223 |
Total inventories, net | $ 1,649,719 | $ 1,602,783 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Oct. 01, 2022 |
Inventory [Line Items] | ||
Customer deposits | $ 531,683 | $ 480,486 |
Inventory | ||
Inventory [Line Items] | ||
Customer deposits | $ 516,700 | $ 463,200 |
Debt, Finance Lease and Other_3
Debt, Finance Lease and Other Financing Obligations - Schedule of Debt, Finance Lease and Other Financing Obligations (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Oct. 01, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 434,000 | $ 413,000 |
Finance lease and other financing obligations | 50,093 | 50,269 |
Unamortized deferred financing fees | (1,352) | (1,522) |
Total obligations | 482,741 | 461,747 |
Current portion of long-term debt and finance lease obligations | (294,011) | (273,971) |
Long-term debt, finance lease and other financing obligations, net of current portion | 188,730 | 187,776 |
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 Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 284,000 | $ 263,000 |
Debt, Finance Lease and Other_4
Debt, Finance Lease and Other Financing Obligations - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Oct. 01, 2022 | |
Debt Instrument [Line Items] | |||
Fair value of debt | $ 428,300 | $ 401,600 | |
Long-term debt, gross | $ 434,000 | $ 413,000 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Credit facility, term | 5 years | ||
Highest daily borrowings | $ 412,000 | $ 294,000 | |
Average daily borrowings | $ 344,500 | $ 168,700 |
Derivatives and Fair Value Me_3
Derivatives and Fair Value Measurements - Schedule of Fair Values of Derivative Instruments (Details) - Foreign Exchange Forward [Member] - USD ($) $ in Thousands | Apr. 01, 2023 | Oct. 01, 2022 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset | $ 300 | |
Fair value of derivative liability | $ 500 | |
Prepaid expenses and other | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset | 5,454 | 715 |
Prepaid expenses and other | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset | 907 | 1,555 |
Other accrued liabilities | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liability | 123 | 6,747 |
Other accrued liabilities | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liability | $ 1,382 | $ 1,249 |
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 | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Foreign Exchange Forward [Member] | Derivatives designated as hedging instruments | Derivatives in cash flow hedging relationships | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain Recognized in OCL on Derivatives | $ 3,574 | $ 317 | $ 9,724 | $ 787 |
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 - Foreign Exchange Forward [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated OCL into Income | $ 516 | $ (109) | $ (1,616) | $ (852) |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of sales | Cost of sales | Cost of sales | Cost of sales |
Selling and administrative expenses | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated OCL into Income | $ 134 | $ (10) | $ (23) | $ (69) |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling and administrative expenses | Selling and administrative expenses | Selling and administrative expenses | Selling and administrative expenses |
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 | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Derivatives not designated as hedging instruments | Miscellaneous, net | Foreign Exchange Forward [Member] | ||||
Derivative [Line Items] | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | $ (684) | $ (782) | $ 63 | $ (825) |
Derivatives and Fair Value Me_7
Derivatives and Fair Value Measurements - Schedule of Fair Value Measurements Using Input Levels (Details) - Recurring - Foreign Exchange Forward [Member] - USD ($) $ in Thousands | Apr. 01, 2023 | Oct. 01, 2022 |
Derivative Asset | $ 4,856 | |
Derivative Liability | $ 5,726 | |
Derivative Asset (Liability), Statement of Financial Position [Extensible Enumeration] | Other accrued liabilities | Other accrued liabilities |
Level 1 | ||
Derivative Asset | $ 0 | |
Derivative Liability | $ 0 | |
Level 2 | ||
Derivative Asset | 4,856 | |
Derivative Liability | 5,726 | |
Level 3 | ||
Derivative Asset | $ 0 | |
Derivative Liability | $ 0 |
Derivatives and Fair Value Me_8
Derivatives and Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Apr. 01, 2023 | Oct. 01, 2022 | |
Estimated unrealized gains (losses), net of tax, expected to be reclassified in the next 12 months | $ 5,300 | |
Derivatives designated as hedging instruments | Derivatives in cash flow hedging relationships | Foreign Exchange Forward [Member] | ||
Notional amount of forward exchange contracts | 192,900 | $ 143,200 |
Fair value of derivative asset | 5,300 | |
Fair value of derivative liability | 6,000 | |
Derivatives not designated as hedging instruments | Foreign Exchange Forward [Member] | ||
Notional amount of forward exchange contracts | 126,200 | 60,100 |
Fair value of derivative asset | $ 300 | |
Fair value of derivative liability | $ 500 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 6,958 | $ 4,439 | $ 14,205 | $ 7,791 |
Effective Income Tax Rate Reconciliation, Percent | 14.60% | 14.20% | 14.60% | 13.40% |
Unrecognized Tax Benefits, Period Increase (Decrease) | $ 900 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | $ 200 | $ 300 |
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 | 6 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 40,844 | $ 26,869 | $ 83,034 | $ 50,292 |
Basic weighted average common shares outstanding (in shares) | 27,661 | 27,987 | 27,650 | 28,002 |
Dilutive effect of share-based awards and options outstanding (in shares) | 523 | 440 | 623 | 564 |
Diluted weighted average shares outstanding (in shares) | 28,184 | 28,427 | 28,273 | 28,566 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 1.48 | $ 0.96 | $ 3 | $ 1.80 |
Diluted (in dollars per share) | $ 1.45 | $ 0.95 | $ 2.94 | $ 1.76 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Earnings Per Share [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Diluted Earnings Per Share | 100 | 100 | 100 | 100 |
Leases Schedule of Lease Expens
Leases Schedule of Lease Expense and Other Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Leases [Abstract] | ||||
Amortization of right-of-use assets | $ 1,952 | $ 1,667 | $ 3,566 | $ 3,360 |
Interest on lease liabilities | 1,260 | 1,229 | 2,532 | 2,451 |
Operating lease expense | 2,736 | 2,838 | 5,342 | 5,695 |
Other lease expense | 1,830 | 1,443 | 3,596 | 2,847 |
Total lease expense | $ 7,778 | $ 7,177 | $ 15,036 | $ 14,353 |
Leases Schedule of Lease Assets
Leases Schedule of Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Oct. 01, 2022 |
Assets and Liabilities, Leases [Abstract] | ||
Finance lease right-of-use assets | $ 40,869 | $ 40,063 |
Operating lease right-of-use assets | 62,795 | 65,134 |
Total lease Assets | 103,664 | 105,197 |
Current finance lease liabilities | $ 6,645 | $ 5,087 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current portion of long-term debt and finance lease obligations | Current portion of long-term debt and finance lease obligations |
Current operating lease liabilities | $ 8,358 | $ 7,948 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other accrued liabilities | Other accrued liabilities |
Long-term finance lease liabilities | $ 40,013 | $ 39,257 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt and finance lease obligations, net of current portion | Long-term debt and finance lease obligations, net of current portion |
Long-term operating lease liabilities | $ 31,257 | $ 33,628 |
Total lease liabilities | $ 86,273 | $ 85,920 |
Benefit Plans - Narrative (Deta
Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Compensation Related Costs [Abstract] | ||||
Share-based compensation expense | $ 5.9 | $ 6.1 | $ 11.7 | $ 12.4 |
Reportable Segments - Schedule
Reportable Segments - Schedule of Reportable Segments Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | Oct. 01, 2022 | |
Net sales | $ 1,070,823 | $ 888,723 | $ 2,164,748 | $ 1,706,179 | |
Operating income: | 56,942 | 35,837 | 114,283 | 66,310 | |
Total assets | 3,382,020 | 3,382,020 | $ 3,393,225 | ||
Other income (expense): | |||||
Interest expense | (8,287) | (3,345) | (15,181) | (6,391) | |
Interest income | 759 | 262 | 1,693 | 533 | |
Miscellaneous, net | (1,612) | (1,446) | (3,556) | (2,369) | |
Income before income taxes | 47,802 | 31,308 | 97,239 | 58,083 | |
Elimination of inter-segment sales | |||||
Net sales | (26,047) | (30,069) | (53,061) | (54,494) | |
Corporate and other costs | |||||
Operating income: | (40,432) | (33,282) | (78,273) | (66,243) | |
Corporate and eliminations | |||||
Total assets | 78,644 | 78,644 | 132,177 | ||
AMER | Operating Segments | |||||
Net sales | 407,806 | 311,205 | 797,468 | 588,551 | |
Operating income: | 25,767 | 7,769 | 43,182 | 9,559 | |
Total assets | 1,161,745 | 1,161,745 | 1,150,605 | ||
APAC | Operating Segments | |||||
Net sales | 587,270 | 533,885 | 1,229,174 | 1,025,557 | |
Operating income: | 69,728 | 60,860 | 148,134 | 121,548 | |
Total assets | 1,770,318 | 1,770,318 | 1,807,542 | ||
EMEA | Operating Segments | |||||
Net sales | 101,794 | 73,702 | 191,167 | 146,565 | |
Operating income: | 1,879 | $ 490 | 1,240 | $ 1,446 | |
Total assets | $ 371,313 | $ 371,313 | $ 302,901 |
Reportable Segments - Narrative
Reportable Segments - Narrative (Details) | 6 Months Ended |
Apr. 01, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Guarantees - Schedule of Activi
Guarantees - Schedule of Activity Related to Limited Warranty Liability (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Limited warranty liability, beginning balance | $ 6,925 | $ 6,645 |
Accruals for warranties issued during the period | 1,254 | 1,885 |
Settlements (in cash or in kind) during the period | (2,243) | (1,193) |
Limited warranty liability, ending balance | $ 5,936 | $ 7,337 |
Guarantees - Narrative (Details
Guarantees - Narrative (Details) | 6 Months Ended |
Apr. 01, 2023 | |
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 | 3 Months Ended | 6 Months Ended | ||||
Apr. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | Aug. 18, 2022 | Aug. 11, 2021 | |
2022 Stock Repurchase Program | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Authorized repurchase amount | $ 50,000 | |||||
Amount repurchased (in shares) | 305,707 | 416,147 | ||||
Amount repurchased | $ 25,000 | $ 35,200 | ||||
Average repurchase price (in dollars per share) | $ 81.79 | $ 84.43 | ||||
2023 Stock Repurchase Program | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Authorized repurchase amount | $ 50,000 | |||||
Amount repurchased (in shares) | 125,639 | 241,362 | ||||
Amount repurchased | $ 12,400 | $ 23,900 | ||||
Average repurchase price (in dollars per share) | $ 98.75 | $ 98.93 | ||||
Remaining authorized repurchase amount | $ 22,600 | $ 22,600 |
Trade Accounts Receivable Sal_2
Trade Accounts Receivable Sale Programs - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | Oct. 01, 2022 | |
Amount Received From Trade Accounts Receivable Sold To Third Party [Line Items] | |||||
Trade Accounts Receivable Sold | $ 225,700 | $ 202,200 | $ 411,300 | $ 350,200 | |
Cash Proceeds Received From Accounts Receivable Sold | 222,900 | $ 201,500 | 406,500 | $ 349,000 | |
Trade accounts receivable sold, not yet collected | 233,400 | 233,400 | $ 222,500 | ||
MUFG RPA | |||||
Amount Received From Trade Accounts Receivable Sold To Third Party [Line Items] | |||||
Maximum facility amount | 340,000 | $ 340,000 | |||
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 | $ 60,000 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | $ 1,096,870 | $ 918,792 | $ 2,217,809 | $ 1,760,673 |
Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | 1,070,823 | 888,723 | 2,164,748 | 1,706,179 |
Elimination of inter-segment sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | 26,047 | 30,069 | 53,061 | 54,494 |
Industrial | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | 439,281 | 414,654 | 911,363 | 778,481 |
Healthcare/Life Sciences | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | 487,370 | 353,248 | 975,237 | 697,713 |
Aerospace/Defense | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | 144,172 | 120,821 | 278,148 | 229,985 |
AMER | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | 407,806 | 311,205 | 797,468 | 588,551 |
AMER | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | 403,662 | 309,335 | 790,092 | 584,292 |
AMER | Elimination of inter-segment sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | 4,144 | 1,870 | 7,376 | 4,259 |
AMER | Industrial | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | 98,686 | 98,267 | 201,713 | 181,512 |
AMER | Healthcare/Life Sciences | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | 228,245 | 143,855 | 443,626 | 279,817 |
AMER | Aerospace/Defense | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | 76,731 | 67,213 | 144,753 | 122,963 |
APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | 587,270 | 533,885 | 1,229,174 | 1,025,557 |
APAC | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | 566,727 | 506,348 | 1,186,255 | 976,603 |
APAC | Elimination of inter-segment sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | 20,543 | 27,537 | 42,919 | 48,954 |
APAC | Industrial | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | 312,840 | 302,326 | 663,424 | 567,601 |
APAC | Healthcare/Life Sciences | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | 206,442 | 165,099 | 429,732 | 334,336 |
APAC | Aerospace/Defense | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | 47,445 | 38,923 | 93,099 | 74,666 |
EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | 101,794 | 73,702 | 191,167 | 146,565 |
EMEA | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | 100,434 | 73,040 | 188,401 | 145,284 |
EMEA | Elimination of inter-segment sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | 1,360 | 662 | 2,766 | 1,281 |
EMEA | Industrial | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | 27,755 | 14,061 | 46,226 | 29,368 |
EMEA | Healthcare/Life Sciences | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | 52,683 | 44,294 | 101,879 | 83,560 |
EMEA | Aerospace/Defense | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | $ 19,996 | $ 14,685 | $ 40,296 | $ 32,356 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Schedule of Contract Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Apr. 01, 2023 | Apr. 02, 2022 | Oct. 01, 2022 | Oct. 02, 2021 | |
Revenue from Contract with Customer [Abstract] | ||||
Contract assets | $ 133,029 | $ 116,087 | $ 138,540 | $ 115,283 |
Revenue recognized | 1,743,054 | 1,460,802 | ||
Amounts collected or invoiced | $ (1,748,565) | $ (1,459,998) |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | Oct. 01, 2022 | |
Disaggregation of Revenue [Line Items] | |||||
Deferred Revenue | $ 228,700 | $ 228,700 | $ 298,800 | ||
Transferred over Time | |||||
Disaggregation of Revenue [Line Items] | |||||
Percentage of Revenue | 80% | 85% | 81% | 86% |
Restructuring and Impairment _3
Restructuring and Impairment Charges Schedule of Restructuring Accrual Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Apr. 01, 2023 | Apr. 02, 2022 | Jan. 01, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | Oct. 02, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve | $ 1,662 | $ 1,762 | $ 1,662 | $ 71 | ||
Restructuring and impairment charges | $ 0 | 0 | 2,021 | $ 0 | 2,021 | |
Amounts utilized | (100) | (330) | ||||
Fixed Asset and Operating ROU Asset Impairment | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve | 0 | 0 | 0 | 0 | ||
Restructuring and impairment charges | 0 | 255 | ||||
Amounts utilized | 0 | (255) | ||||
Employee Termination and Severance Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve | 1,662 | 1,762 | $ 1,662 | $ 71 | ||
Restructuring and impairment charges | 0 | 1,766 | ||||
Amounts utilized | $ (100) | $ (75) |
Restructuring and Impairment _4
Restructuring and Impairment Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 01, 2023 | Apr. 02, 2022 | Jan. 01, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment charges | $ 0 | $ 0 | $ 2,021 | $ 0 | $ 2,021 |
Restructuring Charges | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Other Tax Expense (Benefit) | $ (200) |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 01, 2023 | Apr. 01, 2023 | Apr. 02, 2022 | Jan. 01, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Subsequent Event [Line Items] | ||||||
Restructuring and impairment charges | $ 0 | $ 0 | $ 2,021 | $ 0 | $ 2,021 | |
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Restructuring and impairment charges | $ 9,000 |