Document and entity information
Document and entity information Document - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 03, 2015 | Nov. 09, 2015 | Mar. 28, 2014 | |
Entity Information [Line Items] | |||
Document Period End Date | Oct. 3, 2015 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --10-03 | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Registrant Name | SANMINA CORP | ||
Entity Central Index Key | 897,723 | ||
Document Type | 10-K | ||
Entity Common Stock, Shares Outstanding | 78,404,815 | ||
Entity Public Float | $ 1,958.8 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 03, 2015 | Sep. 27, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 412,253 | $ 466,607 |
Accounts receivable, net of allowances of $13,439 and $10,278 as of October 3, 2015 and September 27, 2014, respectively | 936,952 | 979,475 |
Inventories | 918,728 | 893,178 |
Prepaid expenses and other current assets | 129,982 | 111,714 |
Total current assets | 2,397,915 | 2,450,974 |
Property, plant and equipment, net | 590,844 | 563,016 |
Deferred income tax assets, net | 422,670 | 217,645 |
Other | 81,835 | 81,454 |
Total assets | 3,493,264 | 3,313,089 |
Current liabilities: | ||
Accounts payable | 1,035,323 | 1,139,845 |
Accrued liabilities | 111,416 | 110,357 |
Accrued payroll and related benefits | 120,402 | 126,541 |
Short-term debt, including current portion of long-term debt | 113,416 | 157,394 |
Total current liabilities | 1,380,557 | 1,534,137 |
Long-term liabilities: | ||
Long-term debt | 423,949 | 386,681 |
Other | 168,287 | 145,516 |
Total long-term liabilities | $ 592,236 | $ 532,197 |
Commitments and contingencies (Note 8) | ||
Stockholders' equity: | ||
Preferred stock, $.01 par value, authorized 5,000 shares, none issued and outstanding | $ 0 | $ 0 |
Common stock, $.01 par value, authorized 166,667 shares; 96,306 and 95,733 shares issued and 78,058 and 82,157 shares outstanding as of October 3, 2015 and September 27, 2014, respectively | 781 | 822 |
Treasury stock, 18,248 and 13,576 shares as of October 3, 2015 and September 27, 2014, respectively, at cost | (314,550) | (216,857) |
Additional paid-in capital | 6,074,798 | 6,064,264 |
Accumulated other comprehensive income | 66,571 | 82,916 |
Accumulated deficit | (4,307,129) | (4,684,390) |
Total stockholders' equity | 1,520,471 | 1,246,755 |
Total liabilities and stockholders' equity | $ 3,493,264 | $ 3,313,089 |
Balance sheet parenthetical (Pa
Balance sheet parenthetical (Parentheticals) - USD ($) shares in Thousands, $ in Thousands | Oct. 03, 2015 | Sep. 27, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivable allowances | $ 13,439 | $ 10,278 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 5,000 | 5,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 166,667 | 166,667 |
Common Stock, Shares, Issued | 96,306 | 95,733 |
Common Stock, Shares, Outstanding | 78,058 | 82,157 |
Treasury Stock, Shares | 18,248 | 13,576 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Sep. 28, 2013 | |
Net sales | $ 6,374,541 | $ 6,215,106 | $ 5,917,124 |
Cost of sales | 5,890,685 | 5,726,823 | 5,490,307 |
Gross profit | 483,856 | 488,283 | 426,817 |
Operating expenses: | |||
Selling, general and administrative | 239,288 | 242,288 | 238,072 |
Research and development | 33,083 | 32,495 | 25,571 |
Restructuring costs | 13,683 | 12,550 | 24,910 |
Amortization of intangible assets | 2,054 | 1,798 | 1,896 |
Asset impairments | 3,454 | 0 | 2,100 |
Gain on sales of long-lived assets | (10,807) | (530) | (23,361) |
Total operating expenses | 280,755 | 288,601 | 269,188 |
Operating income | 203,101 | 199,682 | 157,629 |
Interest income | 1,096 | 1,533 | 1,014 |
Interest expense | (25,011) | (30,804) | (41,004) |
Other income (expense), net | 767 | 3,106 | (12,832) |
Loss on extinguishments of debt | (3,760) | (11,778) | (1,401) |
Interest and other income (expense), net | (26,908) | (37,943) | (54,223) |
Income before income taxes | 176,193 | 161,739 | 103,406 |
Provision for (benefit from) income taxes | (201,068) | (35,426) | 24,055 |
Net income | $ 377,261 | $ 197,165 | $ 79,351 |
Net income per share: | |||
Basic | $ 4.61 | $ 2.38 | $ 0.96 |
Diluted | $ 4.41 | $ 2.27 | $ 0.93 |
Weighted-average shares used in computing per share amounts: | |||
Basic | 81,818 | 82,872 | 82,834 |
Diluted | 85,641 | 86,731 | 85,403 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Sep. 28, 2013 | |
Net income | $ 377,261 | $ 197,165 | $ 79,351 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | (13,460) | (4,558) | (3,072) |
Derivative financial instruments: | |||
Changes in unrealized loss | (5,995) | 64 | 1,008 |
Amount reclassified into net income | 5,887 | 3,686 | 20,177 |
Pension benefit plans: | |||
Changes in unrecognized net actuarial loss and unrecognized transition cost | (3,653) | (1,506) | 1,257 |
Amortization of actuarial loss and transition cost | 876 | 929 | 1,452 |
Total other comprehensive income (loss) | (16,345) | (1,385) | 20,822 |
Comprehensive income | $ 360,916 | $ 195,780 | $ 100,173 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock And Additional Paid in Capital | Number of Common Shares | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Deficit |
Balance at Sep. 29, 2012 | $ 963,781 | $ 6,075,341 | $ (214,133) | $ 63,479 | $ (4,960,906) | |
Common Stock, Shares, Issued at Sep. 29, 2012 | 94,971 | |||||
Treasury Stock, Shares at Sep. 29, 2012 | (13,336) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuances under stock plans | 2,687 | |||||
Issuances Under Stock Plans, Value | 11,611 | 11,611 | ||||
Stock-based compensation | 17,524 | 17,524 | ||||
Repurchases of Treasury Stock, Shares | (169) | |||||
Repurchases of Treasury Stock, Value | (1,525) | $ (1,525) | ||||
Other comprehensive income (loss) | 20,822 | 20,822 | ||||
Net income | 79,351 | 79,351 | ||||
Treasury Stock, Shares at Sep. 28, 2013 | (13,505) | |||||
Balance at Sep. 28, 2013 | 1,091,564 | 6,104,476 | $ (215,658) | 84,301 | (4,881,555) | |
Common Stock, Shares, Issued at Sep. 28, 2013 | 97,658 | |||||
Treasury Stock, Shares at Sep. 28, 2013 | (13,505) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuances under stock plans | 2,234 | |||||
Issuances Under Stock Plans, Value | 16,859 | 16,859 | ||||
Stock-based compensation | 18,789 | 18,789 | ||||
Repurchases of Treasury Stock, Shares | (71) | |||||
Repurchases of Treasury Stock, Value | (1,199) | $ (1,199) | ||||
Stock Repurchased and Retired During Period, Shares | (4,159) | |||||
Repurchase and retirement of treasury stock, value | (75,038) | (75,038) | ||||
Other comprehensive income (loss) | (1,385) | (1,385) | ||||
Net income | $ 197,165 | 197,165 | ||||
Treasury Stock, Shares at Sep. 27, 2014 | (13,576) | (13,576) | ||||
Balance at Sep. 27, 2014 | $ 1,246,755 | 6,065,086 | $ (216,857) | 82,916 | (4,684,390) | |
Common Stock, Shares, Issued at Sep. 27, 2014 | 95,733 | 95,733 | ||||
Treasury Stock, Shares at Sep. 27, 2014 | (13,576) | (13,576) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuances under stock plans | 1,727 | |||||
Issuances Under Stock Plans, Value | $ 18,724 | 18,724 | ||||
Stock-based compensation | 20,653 | 20,653 | ||||
Repurchases of Treasury Stock, Shares | (4,672) | |||||
Repurchases of Treasury Stock, Value | (97,693) | $ (97,693) | ||||
Stock Repurchased and Retired During Period, Shares | (1,154) | |||||
Repurchase and retirement of treasury stock, value | (25,069) | (25,069) | ||||
Acquisition of non-controlling interest | (3,815) | (3,815) | ||||
Other comprehensive income (loss) | (16,345) | (16,345) | ||||
Net income | $ 377,261 | 377,261 | ||||
Treasury Stock, Shares at Oct. 03, 2015 | (18,248) | (18,248) | ||||
Balance at Oct. 03, 2015 | $ 1,520,471 | $ 6,075,579 | $ (314,550) | $ 66,571 | $ (4,307,129) | |
Common Stock, Shares, Issued at Oct. 03, 2015 | 96,306 | 96,306 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Sep. 28, 2013 | |
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | |||
Net income | $ 377,261 | $ 197,165 | $ 79,351 |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | |||
Depreciation and amortization | 100,567 | 97,677 | 96,021 |
Stock-based compensation expense | 20,653 | 18,789 | 17,524 |
Provision for (benefit from) doubtful accounts, product returns and other net sales adjustments | 3,161 | (1,457) | (325) |
Deferred income taxes | (242,274) | (69,036) | (8,355) |
Gain on sales of assets | (11,167) | (1,586) | (23,559) |
Impairment of assets | 3,454 | 0 | 3,082 |
Loss on extinguishments of debt | 3,760 | 11,778 | 1,401 |
Loss from dedesignation of interest rate swap | 0 | 0 | 14,903 |
Other, net | 1,072 | (964) | 284 |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | 40,207 | (35,769) | 56,840 |
Inventories | (13,726) | (81,238) | 44,334 |
Prepaid expenses and other assets | 11,117 | (14,515) | 12,158 |
Accounts payable | (116,899) | 174,336 | 22,307 |
Accrued liabilities and other long-term liabilities | (2,290) | 12,202 | 1,923 |
Cash provided by operating activities | 174,896 | 307,382 | 317,889 |
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES: | |||
Proceeds from long-term investments | 0 | 1,104 | 0 |
Purchases of property, plant and equipment | (119,097) | (69,507) | (75,950) |
Proceeds from sales of property, plant and equipment | 30,561 | 6,021 | 33,080 |
Cash paid in connection with business combinations | (13,887) | (79,508) | 0 |
Cash used in investing activities | (102,423) | (141,890) | (42,870) |
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES: | |||
Change in restricted cash | 0 | 4,380 | 5,760 |
Proceeds from short-term borrowings | 0 | 73,828 | 205,456 |
Repayments of short-term borrowings | (10,221) | (85,908) | (243,151) |
Proceeds from revolving credit facility borrowings | 2,692,900 | 568,000 | 1,054,520 |
Repayments of revolving credit facility borrowings | (2,582,900) | (568,000) | (1,054,520) |
Repayments of long-term debt | (123,994) | (422,338) | (257,410) |
Proceeds from long-term debt, net of issuance costs | 0 | 369,897 | 0 |
Debt issuance costs | (1,766) | 0 | 0 |
Net proceeds from stock issuances | 18,724 | 16,859 | 11,611 |
Proceeds from terminations of interest rate swaps | 3,258 | 16,492 | 0 |
Repurchases of common stock | (122,762) | (76,237) | (1,525) |
Cash used in financing activities | (126,761) | (103,027) | (279,259) |
Effect of exchange rate changes | (66) | 1,267 | (2,503) |
Cash and Cash Equivalents, Period Increase (Decrease) | (54,354) | 63,732 | (6,743) |
Cash and cash equivalents at beginning of year | 466,607 | 402,875 | 409,618 |
Cash and cash equivalents at end of year | 412,253 | 466,607 | 402,875 |
Cash paid during the year: | |||
Interest, net of capitalized interest | 18,746 | 31,497 | 42,184 |
Income taxes, net of refunds | 44,751 | 29,071 | 18,142 |
Noncash Investing and Financing Items: | |||
Non-interest bearing notes payable issued in conjunction with a business combination (refer to Note 13) | $ 0 | $ 14,789 | $ 0 |
Note 1 Organization of Sanmina
Note 1 Organization of Sanmina | 12 Months Ended |
Oct. 03, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Organization of Sanmina Sanmina Corporation (“Sanmina,” or the “Company”) was incorporated in Delaware in 1989. The Company is a leading independent global provider of integrated manufacturing solutions, components, products and repair, logistics and after-market services. The Company provides these comprehensive solutions primarily to original equipment manufacturers (OEMs) in the following industries: communications networks, storage, industrial, defense and aerospace, medical, energy and industries that include embedded computing technologies such as point of sale devices, casino gaming and automotive. The Company's operations are managed as two businesses: 1) Integrated Manufacturing Solutions (IMS). IMS is a single operating segment consisting of printed circuit board assembly and test, final system assembly and test, and direct-order-fulfillment. 2) Components, Products and Services (CPS). Components include interconnect systems (printed circuit board fabrication, backplane and cable assemblies) and mechanical systems (enclosures, precision machining and plastic injection molding), Products include Non-Volatile DIMMs, solid state drives and DRAM solutions from the Company's Viking Technology division, defense and aerospace products from SCI Technology, storage products from the Company's Newisys division and optical and RF (Radio Frequency) modules. Services include design, engineering, logistics and repair services. The Company's only reportable segment is IMS, which represented 80% of total revenue in 2015 . The CPS business consists of multiple operating segments which do not meet the quantitative thresholds for being presented as reportable segments. Therefore, financial information for these operating segments will be presented in a single category entitled “Components, Products and Services”. Basis of Presentation Fiscal Year. The Company operates on a 52 or 53 week year ending on the Saturday nearest September 30. Fiscal 2014 and 2013 were each 52 weeks and fiscal 2015 was a 53-week year, with the extra week in the fourth fiscal quarter. The additional week in 2015 did not significantly affect the Company's results of operations or financial position. All references to years relate to fiscal years unless otherwise noted. Principles of Consolidation. The consolidated financial statements include the Company's accounts and those of its subsidiaries. All intercompany balances and transactions have been eliminated. |
Note 2 Summary of Significant A
Note 2 Summary of Significant Accounting Policies | 12 Months Ended |
Oct. 03, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies Management Estimates and Uncertainties. The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates made in preparing the consolidated financial statements relate to allowances for accounts receivable; provisions for excess and obsolete inventories, product returns, warranties, environmental matters, and legal exposures; determining the recoverability of claims made in connection with customer bankruptcies; determining liabilities for uncertain tax positions; determining the realizability of deferred tax assets; determining fair values of tangible and intangible assets for purposes of business combinations and impairment tests; determining fair values of interest rate swaps, contingent consideration and equity awards; and determining forfeiture rates, volatility and expected life assumptions for purposes of calculating stock compensation expense. Actual results could differ materially from these estimates. Financial Instruments and Concentration of Credit Risk. Financial instruments consist primarily of cash and cash equivalents, accounts receivable, foreign currency forward contracts, accounts payable and debt obligations. With the exception of certain of the Company's debt obligations (refer to Note 4. Fair Value and Note 5. Derivative Financial Instruments), the fair value of these financial instruments approximates their carrying amount as of October 3, 2015 and September 27, 2014 due to the nature or short maturity of these instruments, or the fact that the instruments are recorded at fair value on the consolidated balance sheets. Accounts Receivable and Other Related Allowances. The Company had allowances of $13.4 million and $10.3 million as of October 3, 2015 and September 27, 2014 , respectively, for uncollectible accounts, product returns and other adjustments. One of the Company's most significant risks is the ultimate realization of its accounts receivable. This risk is mitigated by ongoing credit evaluations of customers and frequent contact with customers, especially the most significant customers, which enable the Company to monitor changes in its customers' business operations and respond accordingly. To establish the allowance for doubtful accounts, the Company estimates credit risk associated with accounts receivable by considering the creditworthiness of its customers, past experience, specific facts and circumstances, and the overall economic climate in industries that it serves. To establish the allowance for product returns and other adjustments, the Company primarily utilizes historical data. Inventories. Inventories are stated at the lower of cost (first-in, first-out method) or market. Cost includes labor, materials and manufacturing overhead. Provisions are made to reduce excess and obsolete inventories to their estimated net realizable values. The ultimate realization of inventory carrying amounts is primarily affected by changes in customer demand. Inventory provisions are established based on forecasted demand, past experience with specific customers, the age and nature of the inventory, the ability to redistribute inventory to other programs or back to suppliers, and whether customers are contractually obligated and have the ability to pay for the related inventory. Certain payments received from customers for inventory held by the Company are recorded as a reduction of inventory. Property, Plant and Equipment, net. Property, plant and equipment are stated at cost or, in the case of property and equipment acquired through business combinations, at fair value as of the acquisition date. Depreciation is provided on a straight-line basis over 20 to 40 years for buildings and 3 to 15 years for machinery, equipment, furniture and fixtures. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or useful life of the asset . The Company reviews property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. An asset or asset group is considered impaired if its carrying amount exceeds the undiscounted future net cash flows the asset or asset group is expected to generate. If an asset or asset group is considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset or asset group exceeds its fair value. An asset group is the unit of accounting which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets. For asset groups for which the primary asset is a building, the Company estimates fair value based on data provided by commercial real estate brokers. For other asset groups, the Company estimates fair value based on projected discounted future net cash flows. Foreign Currency Translation. For foreign subsidiaries using the local currency as their functional currency, assets and liabilities are translated to U.S. dollars at exchange rates in effect at the balance sheet date and income and expenses are translated at average exchange rates. The effects of these translation adjustments are reported in stockholders' equity as a component of accumulated other comprehensive income ("AOCI"). For all entities, remeasurement adjustments for non-functional currency monetary assets and liabilities are included in other income (expense), net in the accompanying consolidated statements of income. Remeasurement gains and losses arising from long-term intercompany loans denominated in a currency other than an entity's functional currency are recorded in AOCI if repayment of the loan is not anticipated in the foreseeable future. Derivative Instruments and Hedging Activities. The Company conducts business on a global basis in numerous currencies and is therefore exposed to movements in foreign currency exchange rates. The Company uses foreign currency forward contracts to minimize the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. In the past, the Company has also used interest rate swaps to manage interest rate risk associated with certain long-term debt. The Company accounts for derivative instruments and hedging activities in accordance with ASC Topic 815, Derivatives and Hedging, which requires each derivative instrument to be recorded on the consolidated balance sheets at its fair value as either an asset or a liability. If a derivative is designated as a cash flow hedge, the effective portion of changes in the fair value of the derivative is recorded in stockholders' equity as a separate component of AOCI and is recognized in earnings when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges are immediately recognized in earnings. If a derivative is designated as a fair value hedge, changes in the fair value of the derivative and of the item being hedged are recognized in earnings in the current period. Derivative instruments are entered into for periods of time consistent with the related underlying exposures and are not entered into for speculative purposes. At the inception of a hedge, the Company documents all relationships between derivative instruments and related hedged items, as well as its risk-management objectives and strategies for the hedging transaction. The Company's foreign currency forward contracts potentially expose the Company to credit risk to the extent the counterparties may be unable to meet the terms of the agreement. The Company minimizes such risk by seeking high quality counterparties. Revenue Recognition. The Company derives revenue principally from sales of manufacturing services, components and other products. Other sources of revenue include order fulfillment, logistic and repair services, and sales of certain inventory, primarily raw materials, to customers whose requirements change after the Company has procured inventory to fulfill the customers' forecasted demand. The Company recognizes revenue for manufacturing services, components, products and sales of certain inventory when a persuasive arrangement between the Company and the buyer exists, usually in the form of a purchase order received from the Company's customer, the price is fixed or determinable, delivery or performance has occurred and collectability is reasonably assured. Generally, there are no formal customer acceptance requirements or further obligations related to the product or the inventory subsequent to transfer of title and risk of loss. The Company's order fulfillment and logistics services involve warehousing and managing finished product on behalf of a customer. These services are usually provided in conjunction with manufacturing services at one of the Company's facilities. In these instances, revenue for manufacturing services is deferred until the related goods are delivered to the customer, which is upon completion of order fulfillment and logistics services. In certain instances, the Company's facility used to provide order fulfillment and logistics services is controlled by the customer pursuant to a separate arrangement. In these instances, revenue for manufacturing services is recognized upon receipt of the manufactured product at the customer-controlled location and revenue for order fulfillment and logistics services is recognized separately as the services are provided. Revenue for repair services is generally recognized upon completion of the services. Provisions are made for estimated sales returns and other adjustments at the time revenue is recognized. Such provisions were not material to the consolidated financial statements for any period presented herein. The Company presents sales net of sales taxes and value-added taxes in its consolidated statements of income. Amounts billed to customers for shipping and handling are recorded as revenue and shipping and handling costs incurred by the Company are included in cost of sales. Income taxes. The Company estimates its income tax provision or benefit in each of the jurisdictions in which it operates, including estimating exposures and making judgments regarding the realizability of deferred tax assets. The carrying value of the Company's net deferred tax assets is based on the Company's belief that it is more likely than not that the Company will generate sufficient future taxable income in certain jurisdictions to realize these deferred tax assets. A valuation allowance has been established for deferred tax assets which do not meet the “more likely than not” criteria discussed above . The Company's tax rate is highly dependent upon the geographic distribution of its worldwide income or losses, the tax regulations and tax holidays in each geographic region, the availability of tax credits and carryforwards, including net operating losses, and the effectiveness of its tax planning strategies. The Company makes an assessment of whether each income tax position is “more likely than not” of being sustained on audit, including resolution of related appeals or litigation, if any. For each income tax position that meets the “more likely than not” recognition threshold, the Company then assesses the largest amount of tax benefit that is greater than 50% likely of being realized upon effective settlement with the tax authority. Interest and penalties related to unrecognized tax benefits are recognized as a component of income tax expense. Recent Accounting Pronouncements. In September 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (ASU) 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments (Topic 805)". This ASU requires the Company to recognize adjustments to provisional amounts identified during the measurement period in the reporting period in which the adjustments are determined. Additionally, the Company is required to disclose the amount recorded in current-period earnings that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The new guidance is effective for the Company in fiscal 2017. In July 2015, the FASB issued ASU 2015-11, "Simplifying the Measurement of Inventory (Topic 330)". This ASU requires measurement of inventory at the lower of cost and net realizable value. Net realizable value is defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Currently, inventory is generally measured at the lower of cost or market, except for excess and obsolete inventories which are carried at their estimated net realizable values. This new standard is effective for the Company in fiscal 2018, including interim periods within that reporting period. The Company is currently evaluating the impact of adopting this new accounting standard. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)," which supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605).” This ASU requires an entity to recognize revenue when goods are transferred or services are provided to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires disclosures enabling users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new guidance is effective for the Company in fiscal 2019, including interim periods within that reporting period, using one of two prescribed transition methods. The Company is currently participating in an EMS industry forum that has been created to evaluate the impact of adoption of ASU 2014-09 on entities within such industry. The Company has not yet selected a transition method, nor has it determined the effect of the standard on its ongoing financial reporting. |
Note 3 Balance Sheet Items
Note 3 Balance Sheet Items | 12 Months Ended |
Oct. 03, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Items [Text Block] | Balance Sheet Items Inventories Components of inventories were as follows: As of October 3, September 27, (In thousands) Raw materials $ 624,514 $ 628,860 Work-in-process 120,131 102,618 Finished goods 174,083 161,700 Total $ 918,728 $ 893,178 Property, Plant and Equipment, net Property, plant and equipment consisted of the following: As of October 3, September 27, (In thousands) Machinery and equipment $ 1,416,884 $ 1,430,057 Land and buildings 588,052 560,990 Leasehold improvements 53,360 55,463 Furniture and fixtures 20,420 20,507 Construction in progress 12,883 18,335 2,091,599 2,085,352 Less: Accumulated depreciation and amortization (1,500,755 ) (1,522,336 ) Property, plant and equipment, net $ 590,844 $ 563,016 Depreciation expense was $96.1 million , $93.8 million , and $94.1 million for 2015 , 2014 and 2013 , respectively. |
Note 4 Fair Value
Note 4 Fair Value | 12 Months Ended |
Oct. 03, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value Fair Value Option for Long-term Debt The Company has elected not to record its long-term debt instruments at fair value, but has measured them at fair value for disclosure purposes. As of October 3, 2015 , the aggregate carrying amount of the Company's long-term debt instruments approximates fair value as estimated using quoted prices. Assets/Liabilities Measured at Fair Value on a Recurring Basis The Company's primary financial assets and financial liabilities measured at fair value on a recurring basis are cash equivalents, defined benefit plan assets (see Note 16), deferred compensation plan assets, foreign currency forward contracts and contingent consideration (see Note 13). The fair value of cash equivalents, deferred compensation plan assets and foreign currency forward contracts was not material as of October 3, 2015 or September 27, 2014. Offsetting Derivative Assets and Liabilities The Company has entered into master netting arrangements with each of its derivative counterparties that allows net settlement of derivatives assets and liabilities under certain conditions, such as multiple transactions with the same currency maturing on the same date. The Company presents its derivative assets and derivative liabilities on a gross basis in the consolidated balance sheets. The amount that the Company had the right to offset under these netting arrangements was not material as of October 3, 2015 or September 27, 2014 . Non-Financial Assets Measured at Fair Value on a Nonrecurring Basis Assets held-for-sale, consisting of land and buildings, are measured at fair value on a nonrecurring basis since these assets are subject to fair value adjustments only when the carrying amount of such assets exceeds the fair value of such assets or such assets have been previously impaired and the fair value exceeds the carrying amount by less than the amount of the impairment that has been recognized. Fair value is generally estimated using independent third party valuations based on market comparables. The Company did not have any assets classified as held-for-sale for accounting purposes as of October 3, 2015 . The carrying value of the Company's assets held-for-sale was $11.6 million as of September 27, 2014 and was included in prepaid expenses and other current assets on the consolidated balance sheets. Other non-financial assets, such as intangible assets are measured at fair value as of the date such assets are acquired or in the period an impairment is recorded. See Note 13 for further information regarding these assets. |
Note 5 Derivative Financial Ins
Note 5 Derivative Financial Instruments | 12 Months Ended |
Oct. 03, 2015 | |
Summary of Derivative Instruments [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivative Financial Instruments The Company is exposed to certain risks related to its ongoing business operations. The primary risks managed by using derivative instruments is foreign currency exchange risk. Forward contracts on various foreign currencies are used to manage foreign currency risk associated with forecasted foreign currency transactions and certain monetary assets and liabilities denominated in non-functional currencies. The Company's primary foreign currency cash flows are in certain Asian and European countries, Brazil, Israel and Mexico. The Company had the following outstanding foreign currency forward contracts that were entered into to hedge foreign currency exposures: As of October 3, 2015 September 27, 2014 Derivatives Designated as Accounting Hedges: Notional amount (in thousands) $76,465 $114,157 Number of contracts 41 42 Derivatives Not Designated as Accounting Hedges: Notional amount (in thousands) $230,084 $255,828 Number of contracts 46 41 The Company enters into short-term foreign currency forward contracts to hedge currency exposures associated with certain monetary assets and liabilities denominated in non-functional currencies. These contracts have maturities of up to two months and are not designated as accounting hedges. Accordingly, these contracts are marked-to-market at the end of each period with unrealized gains and losses recorded in other income (expense), net, in the consolidated statements of income. The amount of gains (losses) associated with these forward contracts were not material for any period presented herein. From an economic perspective, the objective of the Company's hedging program is for gains and losses on forward contracts to substantially offset gains and losses on the underlying hedged items. The Company also utilizes foreign currency forward contracts to hedge certain operational (“cash flow”) exposures resulting from changes in foreign currency exchange rates. Such exposures generally result from (1) forecasted sales denominated in currencies other than those used to pay for materials and labor, (2) forecasted non-functional currency labor and overhead expenses, (3) forecasted non-functional currency operating expenses, and (4) anticipated capital expenditures denominated in a currency other than the functional currency of the entity making the expenditures. These contracts are designated as cash flow hedges for accounting purposes and are generally one-to-two months in duration but, by policy, may be up to twelve months in duration. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income ("AOCI"), a component of equity, and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The amount of gains (loss) recognized in Other Comprehensive Income ("OCI") on derivative instruments (effective portion), the amount of gain (loss) reclassified from AOCI into income (effective portion) and the amount of ineffectiveness were immaterial in all periods presented herein. As of October 3, 2015 , AOCI related to foreign currency forward contracts was not material . As of September 27, 2014, the Company had an outstanding interest rate swap with a notional amount of $100 million that was not designated as a hedging instrument for accounting purposes. The swap was terminated in the first quarter of 2015 upon extinguishment of the underlying debt, at which time the Company received a cash payment of $3.3 million . As of October 3, 2015 , the Company did not have any interest rate swaps. |
Note 6 Financial Instruments an
Note 6 Financial Instruments and Concentration of Credit Risk | 12 Months Ended |
Oct. 03, 2015 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | Financial Instruments and Concentration of Credit Risk Financial instruments that potentially subject the Company to credit risk consist primarily of cash, cash equivalents, trade accounts receivable and foreign currency forward contracts. The carrying value of assets such as cash, cash equivalents and accounts receivable is expected to approximate fair value due to the short duration of the assets. The Company maintains its cash and cash equivalents with recognized financial institutions that management believes to be of high credit quality. One of the Company's most significant credit risks is the ultimate realization of accounts receivable. This risk is mitigated by ongoing credit evaluations of, and frequent contact with, the Company's customers, especially its most significant customers, thus enabling it to monitor changes in business operations and respond accordingly. The Company generally does not require collateral for sales on credit. The Company considers these concentrations of credit risks when estimating its allowance for doubtful accounts. Foreign currency forward contracts are maintained with high quality counterparties to reduce the Company's credit risk and are recorded on the Company's balance sheets at fair value. One customer represented more than 10% of the Company's net sales in 2013. No customer represented more than 10% of the Company's net sales in 2015 or 2014. One customer represented 10% or more of the Company's gross accounts receivable as of October 3, 2015 and September 27, 2014 . |
Note 7 Debt
Note 7 Debt | 12 Months Ended |
Oct. 03, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt Long-term debt consisted of the following: As of October 3, September 27, (In thousands) Secured debt due 2017 ("Secured Debt") $ 40,000 $ 40,000 Senior notes due 2019 ("2019 Notes") — 100,000 Senior secured notes due 2019 ("Secured Notes") 375,000 375,000 Non-interest bearing notes payable 12,365 15,097 Fair value adjustment (1) — 3,757 Total long-term debt 427,365 533,854 Less : Current portion 2019 Notes called for redemption in fourth quarter of 2014 — 100,000 Fair value adjustment related to 2019 Notes — 3,757 Secured debt (refinanced in the first quarter of 2015) — 40,000 Current portion of non-interest bearing notes payable 3,416 3,416 Long-term debt $ 423,949 $ 386,681 (1) Represents fair value hedge accounting adjustment related to interest rate swaps. Secured Debt. During the fourth quarter of 2012, the Company borrowed $40.0 million using its corporate campus as collateral. In the first quarter of 2015, the loan agreement was amended to extend the maturity date from July 19, 2015 to December 19, 2017 which, upon approval of the counterparty, may be extended up to two times for a period of one year for each extension. Principal, together with accrued and unpaid interest, is due on the maturity date. The Company has the right to prepay loans in whole or in part at any time without penalty. Secured Notes. During the third quarter of 2014, the Company issued $375 million of senior secured notes due 2019. The Secured Notes mature on June 1, 2019 and bear interest at an annual rate of 4.375% , payable semi-annually in arrears in cash. In connection with issuance of the Secured Notes, the Company incurred debt issuance costs of $5.1 million which are included in other non-current assets on the consolidated balance sheets and are being amortized to interest expense over the term of the Secured Notes using the effective interest method. The Secured Notes are senior secured obligations and are fully and unconditionally guaranteed, jointly and severally, on a senior secured basis by certain subsidiaries of the Company. The Secured Notes and the guarantees are secured by a first-priority lien, subject to permitted liens, on certain tangible and intangible assets including certain real property, equipment and intellectual property, and by a second-priority lien on certain assets, including accounts receivable, inventory and stock of subsidiaries, securing the Company’s revolving credit facility. All or any portion of the Secured Notes may be redeemed, at any time, at the option of the Company, at a redemption price equal to 100% of the principal amount of the Secured Notes redeemed plus accrued and unpaid interest, plus a make-whole premium. Following a change of control, as defined, the Company would be required to make an offer to repurchase all of the Secured Notes at a purchase price of 101% of the principal amount of the Secured Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the date of repurchase. The Secured Notes are subject to specified events of default, including payment defaults, breaches of covenants, certain payment defaults at final maturity or acceleration of other indebtedness, failure to pay certain judgments, certain events of bankruptcy, insolvency and reorganization involving the Company or certain of its subsidiaries and certain instances in which a guarantee ceases to be in full force and effect. If any event of default occurs and is continuing, subject to certain exceptions, the trustee or the holders of at least 25% in aggregate principal amount of the then outstanding Secured Notes, may declare all the Secured Notes to be due and payable immediately, together with any accrued and unpaid interest, if any, to the acceleration date. In the case of an event of default resulting from certain events of bankruptcy, insolvency or reorganization involving the Company, such amounts with respect to the Secured Notes will be due and payable immediately without any declaration or other act on the part of the trustee or the holders of the Secured Notes. 2019 Notes. During 2011, the Company issued $500 million of senior notes due 2019. During 2014, the Company redeemed $400 million of the 2019 Notes at par plus a redemption premium and accrued interest and recorded a net loss on extinguishment of debt of $11.8 million , consisting of redemption premiums of $21.8 million , a write-off of unamortized debt issuance costs of $6.0 million and third party costs of $0.5 million , partially offset by a $16.5 million credit related to the fair value hedge adjustment associated with the extinguished 2019 Notes. The Company redeemed the remaining $100 million of its 2019 Notes at par plus a redemption premium and accrued interest during the first quarter of 2015. In connection with this redemption, the Company recorded a net loss on extinguishment of debt of $2.9 million , consisting of redemption premiums of $5.3 million and a write-off of unamortized debt issuance costs of $1.4 million , partially offset by a $3.8 million credit for the fair value hedge adjustment related to the extinguished 2019 Notes. Non-interest Bearing Notes Payable. The Company issued unsecured, interest-free, 5 year term notes with a face value of $17.1 million ( payable in five annual installments ) in connection with assets acquired during the third quarter of 2014. The discounted value of the notes issued was $14.8 million (see Note 13). Short-term Debt Revolving Credit Facility. During the third quarter of 2015, the Company replaced its $300 million asset-backed revolving credit facility (the "ABL") with a $375 million secured revolving credit facility (the "Cash Flow Revolver"). The Cash Flow Revolver may be increased by an additional $125 million upon obtaining additional commitments from lenders then party to the Cash Flow Revolver or new lenders. The Cash Flow Revolver expires on May 20, 2020 , but may be terminated by the lenders as early as February 28, 2019 if certain conditions exist. The Company incurred $1.8 million of debt issuance costs in connection with this transaction. In addition, $1.0 million of unamortized debt issuance costs related to the ABL were carried forward and $0.8 million of such costs were expensed. Accordingly, $2.8 million of debt issuance costs will be amortized to interest expense over the life of the Cash Flow Revolver. As of October 3, 2015 , $110.0 million of borrowings and $22.0 million of letters of credit were outstanding under the Cash Flow Revolver. No borrowings were outstanding under the ABL as of September 27, 2014 . Foreign Short-term Borrowing Facilities . As of October 3, 2015 , certain foreign subsidiaries of the Company had a total of $74.0 million of short-term borrowing facilities, under which no borrowings were outstanding. These facilities expire at various dates through the second quarter of 2017 . Debt Covenants The Company's revolving credit facility requires the Company to comply with certain financial covenants. Additionally, the Company's Secured Debt agreement requires the Company to comply with a financial covenant if certain conditions exist, none of which existed as of October 3, 2015 . The Company's debt agreements contain a number of restrictive covenants, restrictions on incurring additional debt, making investments and other restricted payments, selling assets, paying dividends and redeeming or repurchasing capital stock and debt, subject to certain exceptions. The Company was in compliance with these covenants as of October 3, 2015 . |
Note 8 Commitment and Contingen
Note 8 Commitment and Contingencies | 12 Months Ended |
Oct. 03, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies Operating Leases. The Company leases certain of its facilities and equipment under non-cancellable operating leases expiring at various dates through 2042 . The Company is responsible for utilities, maintenance, insurance and property taxes under these leases. Future minimum lease payments, net of sublease income, under operating leases are as follows: (In thousands) 2016 $ 19,954 2017 13,497 2018 8,557 2019 2,990 2020 2,014 Thereafter 19,086 Total $ 66,098 Rent expense, net of sublease income, under operating leases was $26.2 million , $29.5 million and $33.7 million for 2015 , 2014 and 2013 , respectively. Litigation and other contingencies. From time to time, the Company is a party to litigation, claims and other contingencies, including environmental and employee matters and examinations and investigations by governmental agencies, which arise in the ordinary course of business. The Company cannot predict what effect these matters may have on its results of operations, financial condition or cash flows. Refer to “Item 3-Legal Proceedings”. The Company records a contingent liability when it is probable that a loss has been incurred and the amount of loss is reasonably estimable in accordance with ASC Topic 450, Contingencies or other applicable accounting standards. As of October 3, 2015 and September 27, 2014 , the Company had reserves of $49.2 million and $38.6 million , respectively, for environmental matters, warranty, litigation, contingent consideration and other contingencies, excluding reserves for uncertain tax positions, which the Company believes is adequate. However, there can be no assurance that the Company's reserves will be sufficient to settle these contingencies. Such reserves are included in accrued liabilities and other long-term liabilities on the consolidated balance sheets. One of the Company's most significant credit risks is the ultimate realization of accounts receivable and customer inventory liabilities. This risk is partially mitigated by ongoing credit evaluations of, and frequent contact with, the Company's customers, especially its most significant customers, thus enabling the Company to monitor changes in business operations and respond accordingly. On October 6, 2014, one of the Company’s customers, GT Advanced Technologies, filed a petition for reorganization under bankruptcy law. The Company performed an analysis as of September 27, 2014 to quantify its potential exposure and administrative and reclamation claim priority. As a result of the analysis, the Company determined that certain accounts receivable may not be collectible and therefore deferred recognition of revenue in the amount of $1.9 million in the fourth quarter of 2014. Based on new information that became available and events that occurred subsequent to the Company's filing of its 2014 financial statements, the Company determined that certain inventory balances may not be recoverable and provided a reserve for such inventories in the amount of $3.9 million in the first quarter of 2015. The Company provided additional reserves of $3.7 million and $2.5 million for inventory and accounts receivable, respectively, during the fourth quarter of 2015. The Company's accounts receivable and inventory exposure for this customer are fully reserved as of October 3, 2015 . The Company is subject to various federal, state, local and foreign laws and regulations and administrative orders concerning environmental protection, including those addressing the discharge of pollutants into the air and water, the management and disposal of hazardous substances and wastes, the cleanup of contaminated sites, the materials used in products, and the recycling, treatment and disposal of materials. As of October 3, 2015 , the Company had been named in a lawsuit and certain administrative orders alleging certain of its current and former sites contributed to groundwater contamination. A foreign subsidiary of the Company is party to an order requiring such subsidiary to remediate certain environmental contamination at a site owned by the subsidiary between 1999 and 2006. During the third quarter of 2015, the Company revised its estimate of remediation costs and provided additional reserves of $6.0 million for this matter. The associated charge was recorded in restructuring expense. |
Note 9 Income Tax
Note 9 Income Tax | 12 Months Ended |
Oct. 03, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes Domestic and foreign components of income (loss) before income taxes were as follows: Year Ended October 3, September 27, September 28, (In thousands) Domestic $ 91,613 $ 92,961 $ 3,517 Foreign 84,580 68,778 99,889 Total $ 176,193 $ 161,739 $ 103,406 The provision for (benefit from) income taxes consists of the following: Year Ended October 3, September 27, September 28, (In thousands) Federal: Current $ 1,413 $ 5,889 $ — Deferred (226,225 ) (43,789 ) (6,611 ) State: Current 543 (100 ) 1,388 Deferred (513 ) (1,251 ) (189 ) Foreign: Current 42,295 27,937 31,249 Deferred (18,581 ) (24,112 ) (1,782 ) Total provision for (benefit from) income taxes $ (201,068 ) $ (35,426 ) $ 24,055 The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities are as follows: As of October 3, 2015 September 27, 2014 (In thousands) Deferred tax assets: U.S. net operating loss carryforwards $ 416,866 $ 452,754 Foreign net operating loss carryforwards 214,949 298,693 Acquisition related intangibles 46,019 58,442 Accruals not currently deductible 60,225 62,148 Property, plant and equipment 21,099 23,754 Tax credit carryforwards 8,898 9,155 Reserves not currently deductible 22,482 18,612 Stock compensation expense 16,388 14,173 Unrealized losses 4,417 4,417 Other 1,633 745 Valuation allowance (282,734 ) (663,193 ) Total deferred tax assets 530,242 279,700 Deferred tax liabilities on foreign earnings (19,872 ) (19,872 ) Other deferred tax liabilities (17,792 ) (9,521 ) Net deferred tax assets $ 492,578 $ 250,307 Recorded as: Current deferred tax assets $ 74,935 $ 37,738 Non-current deferred tax assets 422,670 217,645 Non-current deferred tax liabilities (5,027 ) (5,076 ) Net deferred tax assets $ 492,578 $ 250,307 The Company offsets current deferred tax assets and liabilities and non-current deferred tax assets and liabilities by tax-paying jurisdiction. The resulting net amounts by tax jurisdiction are then aggregated without further offset. A valuation allowance is established or maintained when, based on currently available information and other factors, it is more likely than not that all or a portion of the deferred tax assets will not be realized. The Company regularly assesses its valuation allowance against deferred tax assets on a jurisdiction by jurisdiction basis. The Company considers all available positive and negative evidence, including future reversals of temporary differences, projected future taxable income, tax planning strategies and recent financial results. Significant judgment is required in assessing the Company's ability to generate revenue, gross profit, operating income and jurisdictional taxable income in future periods. Prior to 2012, based on negative evidence (primarily a cumulative history of operating losses), the Company had a full valuation allowance against its net deferred tax assets in the U.S. and certain foreign jurisdictions. Since 2012, the Company has released a portion of its U.S. valuation allowances annually in recognition of its improved historical earnings and increasing future projected earnings. The Company released $288.7 million, $87.6 million and $21.5 million of the valuation allowance attributable to U.S. and foreign deferred tax assets in 2015, 2014 and 2013, respectively. The Company reduced the valuation allowance based on continued improved operating results over the past few years and expectations about generating U.S. taxable income in the future. The remaining valuation allowance relates primarily to foreign net operating losses, with the exception of $102.7 million related to U.S. net operating losses. To the extent the Company continues to consistently earn, as well as reliably project, income in the appropriate jurisdictions, it is reasonably possible that the valuation allowance will be further reduced at such time when such positive evidence can be substantiated. The Company’s expected continued strong and predictable earnings may be sufficient to warrant an additional release of the valuation allowance in future years, although such positive evidence would need to be weighed against any negative evidence existing at that time. To the extent the Company's future projections are adjusted downward, the Company could be required to record an additional valuation allowance, which would negatively impact income tax expense at such time. As of October 3, 2015 , U.S. income taxes have not been provided for approximately $582.9 million of cumulative undistributed earnings of several non-U.S. subsidiaries. The Company intends to reinvest these earnings indefinitely in operations outside of the U.S. Determination of the amount of unrecognized deferred tax liabilities on these undistributed earnings is not practicable. As of October 3, 2015 , the Company has cumulative net operating loss carryforwards for federal, state and foreign tax purposes of $1,151.0 million , $758.5 million and $756.2 million , respectively. The federal and state net operating loss carryforwards begin expiring in 2023 and 2016, respectively, and expire at various dates through 2033 . Certain foreign net operating losses start expiring in 2016 . However, the majority of foreign net operating losses carryforward indefinitely. The Tax Reform Act of 1986 and similar state provisions impose restrictions on the utilization of net operating loss and tax credit carryforwards in the event of an “ownership change” as defined in the Internal Revenue Code. The utilization of certain net operating losses may be restricted due to changes in ownership and business operations. Following is a reconciliation of the statutory federal tax rate to the Company's effective tax rate: Year Ended October 3, September 27, September 28, Federal tax at statutory tax rate 35.00 % 35.00 % 35.00 % Effect of foreign operations 3.82 (4.34 ) (8.17 ) Foreign income inclusion 0.21 1.17 4.08 Change in valuation allowance 4.41 (4.23 ) 11.54 Permanent items 2.05 2.69 0.26 Change to other comprehensive income — 2.05 — Release of valuation allowance (163.92 ) (54.18 ) (20.79 ) State income taxes, net of federal benefit 4.31 (0.06 ) 1.34 Effective tax rate (114.12 )% (21.90 )% 23.26 % A reconciliation of the beginning and ending amount of total unrecognized tax benefits, excluding accrued penalties and interest, is as follows: Year Ended October 3, September 27, (In thousands) Balance, beginning of year $ 54,237 $ 65,148 Increase related to prior year tax positions — — Decrease related to prior year tax positions (5,044 ) (11,274 ) Increase related to current year tax positions 5,564 4,993 Settlements (3,599 ) (4,630 ) Balance, end of year $ 51,158 $ 54,237 As of October 3, 2015 , the Company had reserves of $32.2 million for the payment of interest and penalties relating to unrecognized tax benefits. The Company accrued interest and penalties related to unrecognized tax benefits of $3.9 million in 2015 , $5.6 million in 2014 , and $1.9 million in 2013 . The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. The Company conducts business globally and, as a result, files income tax returns in the United States federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world. The Company is currently being audited by the Internal Revenue Service for tax years 2008 through 2010. To the extent the final tax liabilities are different from the amounts accrued, this would result in an increase or decrease in net operating loss carryforwards which would impact tax expense to the extent the associated deferred tax asset is not offset by a valuation allowance. Additionally, the Company is being audited by various state tax agencies and certain foreign countries. To the extent the final tax liabilities are different from the amounts accrued, the increases or decreases would be recorded as income tax expense or benefit in the consolidated statements of income. Although the Company believes that the resolution of these audits will not have a material adverse impact on the Company’s results of operations, the outcome is subject to uncertainty. In general, the Company is no longer subject to United States federal or state income tax examinations for years before 2003, and to foreign examinations for years prior to 2003 in its major foreign jurisdictions. Although the timing of the resolution of audits is highly uncertain, it is reasonably possible that the balance of gross unrecognized tax benefits could significantly change in the next 12 months. However, given the number of years subject to audit and the number of matters being examined, the Company is unable to estimate the full range of possible adjustments to the balance of gross unrecognized tax benefits. |
Note 10 Earnings Per Share
Note 10 Earnings Per Share | 12 Months Ended |
Oct. 03, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Earnings Per Share Basic and diluted earnings per share amounts are calculated by dividing net income by the weighted average number of shares of common stock outstanding during the period, as follows: Year Ended October 3, September 27, September 28, 2013 (In thousands, except per share amounts) Numerator: Net income $ 377,261 $ 197,165 $ 79,351 Denominator: Weighted average common shares outstanding 81,818 82,872 82,834 Effect of dilutive stock options and restricted stock units 3,823 3,859 2,569 Denominator for diluted earnings per share 85,641 86,731 85,403 Net income per share: Basic $ 4.61 $ 2.38 $ 0.96 Diluted $ 4.41 $ 2.27 $ 0.93 The following table presents weighted-average dilutive securities that were excluded from the above calculation because their inclusion would have had an anti-dilutive effect under ASC Topic 260, Earnings per Share , due to application of the treasury stock method: As of October 3, 2015 September 27, 2014 September 28, 2013 Potentially dilutive securities: (In thousands) Employee stock options 776 2,502 6,634 Restricted stock units 13 112 — Total 789 2,614 6,634 |
Note 11 Stockholders' Equity
Note 11 Stockholders' Equity | 12 Months Ended |
Oct. 03, 2015 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Stockholders' Equity In 2009, the Company's stockholders approved the 2009 Incentive Plan (“2009 Plan”) and the reservation of 7.5 million shares of common stock for issuance thereunder, which was subsequently increased to 19.8 million shares. The 2009 Plan provides for the grant of incentive stock options, non-statutory stock options, restricted stock, restricted stock units, stock appreciation rights, performance units, and performance shares. The per share exercise price for shares to be issued pursuant to exercise of an option must be no less than 100% of the fair market value per share on the date of grant. Upon approval of the 2009 Plan, all of the Company's other stock plans were terminated as to future grants. Although these plans have been terminated, they will continue to govern all awards granted under them until the expiration of the awards. As of October 3, 2015 , an aggregate of 13.0 million shares were authorized for future issuance under the Company's stock plans, of which 10.0 million of such shares were issuable upon exercise of outstanding options and delivery of shares upon vesting of restricted stock units and 3.0 million shares of common stock were available for future grant. Awards other than stock options and stock appreciation rights reduce common stock available for grant by 1.36 shares for every share of common stock subject to such an award. Awards under the 2009 plan that expire or are cancelled without delivery of shares generally become available for issuance under the plan. Stock Repurchase Program In 2013, the Company's Board of Directors authorized the Company to repurchase up to $100 million of the Company's common stock in the open market or in negotiated transactions off the market. The Board of Directors approved a second $100 million stock repurchase plan in September 2014 and a $200 million stock repurchase plan in September 2015. These authorizations, totaling $400 million , have no expiration date. During 2015, the Company repurchased 5.8 million shares of its common stock for $121.2 million . As of October 3, 2015 , $204 million remains available under these programs. In addition to repurchases under these authorizations discussed above, the Company repurchased 61,000 , 71,000 and 169,000 shares of its common stock for $1.5 million , $1.2 million and $1.5 million , respectively, in settlement of employee tax withholding obligations due upon the vesting of restricted stock units during 2015, 2014, and 2013. Accumulated Other Comprehensive Income Accumulated other comprehensive income, net of tax as applicable, consisted of the following: As of October 3, September 27, (In thousands) Foreign currency translation adjustments $ 86,630 $ 100,090 Unrealized holding losses on derivative financial instruments (683 ) (575 ) Unrecognized net actuarial loss and unrecognized transition cost for benefit plans (19,376 ) (16,599 ) Total $ 66,571 $ 82,916 |
Note 12 Other Income (Expense),
Note 12 Other Income (Expense), Net | 12 Months Ended |
Oct. 03, 2015 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | Other Income (Expense), Net The following table summarizes the major components of other income (expense), net (in thousands): Year ended October 3, September 27, September 28, Foreign exchange losses $ 681 $ (1,962 ) $ (3,091 ) Loss from dedesignation of interest rate swap — — (14,903 ) Other, net 86 5,068 5,162 Total $ 767 $ 3,106 $ (12,832 ) The Company had interest rate swaps with an aggregate notional amount of $257 million that were entered into in 2007 to hedge LIBOR-based variable rate interest payments expected to occur through June 15, 2014 . During the first quarter of 2013, the Company determined, based on its intention of redeeming $257 million of its debt due in 2014, that it was no longer probable that LIBOR-based, variable rate interest payments would occur on $257 million of debt through June 15, 2014. Accordingly, the Company dedesignated the interest rate swaps in their entirety in the first quarter of 2013 and recorded a charge of $14.9 million , representing the portion of the value of the interest rate swaps previously recorded in accumulated other comprehensive income for which it was no longer probable that LIBOR-based variable rate interest payments would occur. The Company reduces its exposure to currency fluctuations through the use of foreign currency hedging instruments, however, hedges are established based on estimated foreign currency balances. To the extent actual amounts differ from estimated amounts, the Company will have exposure to currency fluctuations, resulting in foreign exchange gains or losses. |
Note 13 Acquisition
Note 13 Acquisition | 12 Months Ended |
Oct. 03, 2015 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Note 13. Acquisitions Fourth Quarter of 2015 On June 29, 2015 , the Company purchased all outstanding stock of a privately-held company that designs and manufactures equipment for the oil and gas industry. The acquisition further enhances and complements the Company's existing capabilities in the oil and gas market and will be reported in the Company's CPS operating segment. Consideration for the acquisition consists of cash of approximately $13.9 million plus up to an additional $23.5 million if certain annual earnings targets are achieved in the first five years following the date of acquisition. The fair value of contingent consideration was determined to be $11.0 million using a risk-neutral Monte Carlo model based on significant inputs that are not observable in the market. Contingent consideration will be remeasured periodically during the five-year contingency period with changes in fair value recorded in the Company's consolidated statements of income. The acquisition did not significantly affect the Company's financial position or results of operations for 2015. The allocation of the purchase price to the tangible and identifiable intangible assets acquired and liabilities assumed was based on their estimated fair values as of the date of acquisition. Management is in the process of finalizing fair value amounts for certain assets acquired and liabilities assumed. The following represents the Company's preliminary allocation of the purchase price of $24.9 million to the acquired assets and liabilities assumed: (In thousands) Current assets $ 29,673 Noncurrent assets, including identifiable intangible assets of $9.6 million and goodwill of $0.9 million 23,605 Current liabilities, including debt of $15.3 million that was repaid immediately after closing (27,757 ) Noncurrent liabilities (615 ) Total $ 24,906 Goodwill and identifiable assets are recorded in other non-current assets on the consolidated balance sheets. Identifiable intangible assets, consisting of customer relationships, trade names and order backlog, are being amortized over one to three years. Third Quarter of 2014 On April 28, 2014 , the Company acquired a manufacturing operation that primarily produces industrial-related products serving multiple end-user markets. The Company also entered into a master supply agreement with the acquiree in connection with this acquisition. Total consideration paid for this acquisition was $40.2 million , consisting of $25.4 million of cash and non-interest bearing notes payable with a discounted value of $14.8 million . First Quarter of 2014 On December 18, 2013 , the Company acquired a manufacturing operation in the oil and gas industry that increased the Company's precision machining, assembly, integration and test capabilities. The Company also entered into a master supply agreement with the acquiree in connection with this acquisition. Cash consideration paid by the Company for this acquisition was $54.1 million . |
Note 14 Business Segment, Geogr
Note 14 Business Segment, Geographic and Customer Information | 12 Months Ended |
Oct. 03, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Business Segment, Geographic and Customer Information ASC Topic 280, Segment Reporting , establishes standards for reporting information about operating segments, products and services, geographic areas of operations and major customers. Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker or decision making group in deciding how to allocate resources and in assessing performance. The Company's operations are managed as two businesses: 1) Integrated Manufacturing Solutions (IMS). IMS is a reportable segment consisting of printed circuit board assembly and test, final system assembly and test, and direct order fulfillment. 2) Components, Products and Services (CPS). Components include interconnect systems (printed circuit board fabrication, backplane and cable assemblies) and mechanical systems (enclosures, precision machining and plastic injection molding). Products include Non-Volatile DIMMs, solid state drives and DRAM solutions from the Company's Viking Technology division, defense and aerospace products from SCI Technology, storage products from the Company's Newisys division and optical and Radio Frequency (RF) modules. Services include design, engineering, logistics and repair services. The Company evaluated its operating segments to determine whether they can be aggregated into reportable segments. Factors considered in this evaluation were similarity regarding economic characteristics, products, production processes, type or classes of customers, distribution methods and regulatory environments. Based on this evaluation, the Company determined that it has only one reportable segment - IMS, which generated 80% of the Company's total revenue in 2015 . The Company's CPS business consists of multiple operating segments which do not meet the quantitative threshold for being presented as reportable segments. Therefore, financial information for these operating segments is presented in a single category entitled “Components, Products and Services”. The accounting policies for each segment are the same as those disclosed by the Company for its consolidated financial statements. Intersegment sales consist primarily of sales of components from CPS to IMS. The Company's chief operating decision making group is the Chief Executive Officer and Chief Financial Officer and they allocate resources and assess performance of operating segments based on a non-GAAP measure of revenue and gross profit that excludes items not directly related to the Company's ongoing business operations. These items are typically either non-recurring or non-cash in nature. Segment information is as follows: Year Ended October 3, 2015 September 27, 2014 September 28, 2013 (In thousands) Gross sales: IMS $ 5,157,427 $ 4,933,714 $ 4,766,670 CPS 1,414,797 1,514,340 1,335,510 Intersegment revenue (197,683 ) (231,092 ) (185,056 ) Unallocated items (1) — (1,856 ) — Net Sales $ 6,374,541 $ 6,215,106 $ 5,917,124 Gross Profit: IMS $ 366,436 $ 339,909 $ 291,664 CPS 135,064 155,974 144,725 Total 501,500 495,883 436,389 Unallocated items (1) (17,644 ) (7,600 ) (9,572 ) Total $ 483,856 $ 488,283 $ 426,817 Depreciation and amortization: IMS $ 56,428 $ 50,933 $ 54,531 CPS 35,526 38,420 32,802 Total 91,954 89,353 87,333 Unallocated corporate items (2) 8,613 8,324 8,688 Total $ 100,567 $ 97,677 $ 96,021 Capital expenditures (receipt basis): IMS $ 105,755 $ 47,103 $ 44,080 CPS 17,290 27,724 25,542 Total 123,045 74,827 69,622 Unallocated corporate items (2) 3,436 4,635 3,447 Total $ 126,481 $ 79,462 $ 73,069 (1) For purposes of evaluating segment performance, management excludes certain items from its measures of revenue and gross profit. These items include stock-based compensation expense, amortization of intangible assets, charges or credits resulting from distressed customers and similar items that either occur infrequently or are of a non-operational nature. (2) Primarily related to selling, general and administration functions. As of October 3, September 27, (In thousands) Long-lived assets (including assets held for sale): IMS $ 351,490 $ 309,922 CPS 208,807 213,266 Total 560,297 523,188 Unallocated corporate items (1) 30,547 51,466 Total $ 590,844 $ 574,654 (1) Primarily related to selling, general and administration functions. Information by geographic segment, determined based on the country in which a product is manufactured or a service is provided, was as follows: Year Ended October 3, 2015 September 27, 2014 September 28, 2013 (In thousands) Net sales: Domestic $ 1,029,897 $ 1,041,892 $ 1,074,529 Mexico 1,979,085 1,693,564 1,433,799 China 1,510,208 1,564,389 1,501,632 Other international 1,855,351 1,915,261 1,907,164 Total $ 6,374,541 $ 6,215,106 $ 5,917,124 Percentage of net sales represented by ten largest customers 48.3 % 50.3 % 50.3 % Number of customers representing 10% or more of net sales — — 1 As of October 3, September 27, (In thousands) Long-lived assets (including assets held for sale): Domestic $ 149,340 $ 147,298 Mexico 159,907 168,712 China 84,426 89,380 Other international 197,171 169,264 Total $ 590,844 $ 574,654 |
Note 15 Stock-Based Compensatio
Note 15 Stock-Based Compensation | 12 Months Ended |
Oct. 03, 2015 | |
Share-based Compensation [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Stock-Based Compensation Stock-based compensation expense was attributable to: Year Ended October 3, September 27, September 28, (In thousands) Stock options $ 9,894 $ 9,820 $ 10,506 Restricted stock units 10,759 8,969 7,018 Total $ 20,653 $ 18,789 $ 17,524 Stock-based compensation expense was as follows: Year Ended October 3, September 27, September 28, (In thousands) Cost of sales $ 6,611 $ 5,849 $ 5,464 Selling, general & administrative 13,859 12,861 11,942 Research & development 183 79 118 Total $ 20,653 $ 18,789 $ 17,524 Stock Options The Company's stock option plans provide employees the right to purchase common stock at the fair market value of such shares on the grant date. The Company recognizes compensation expense for such awards over the vesting period, which is generally four to five years . The contractual term of all options is ten years, at which time such options would expire. The Company recognizes compensation expense ratably over the service period. Assumptions used to estimate the fair value of stock options granted were as follows: Year Ended October 3, September 27, September 28, Volatility 52.9 % 67.6 % 86.0 % Risk-free interest rate 1.6 % 1.5 % 0.7 % Dividend yield — — — Expected life of options 5.0 5.0 5.0 Stock option activity was as follows: Number of Shares Weighted-Average Exercise Price ($) Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value of In-The-Money Options ($) (In thousands) (In thousands) Outstanding as of September 29, 2012 11,275 13.15 6.54 18,548 Granted 975 8.83 Exercised/Cancelled/Forfeited/Expired (2,688 ) 13.36 Outstanding as of September 28, 2013 9,562 12.65 5.99 62,825 Granted 648 15.89 Exercised/Cancelled/Forfeited/Expired (2,029 ) 12.67 Outstanding as of September 27, 2014 8,181 12.90 5.30 93,767 Granted 567 24.48 Exercised/Cancelled/Forfeited/Expired (1,715 ) 16.13 Outstanding as of October 3, 2015 7,033 13.05 4.94 53,938 Vested and expected to vest as of October 3, 2015 6,942 12.97 4.89 53,609 Exercisable as of October 3, 2015 5,917 12.25 4.33 48,655 The weighted-average grant date fair value of stock options granted during 2015 , 2014 and 2013 was $12.46 , $9.14 , and $5.91 , respectively. The aggregate intrinsic value in the preceding table represents the total pre-tax intrinsic value of in-the-money options that would have been received by the option holders had all option holders exercised their options at the Company's closing stock price on the date indicated. The total intrinsic value of stock options exercised was $16.2 million for 2015, $18.3 million for 2014 and $12.1 million for 2013. As of October 3, 2015 , unrecognized compensation expense of $7.1 million is expected to be recognized over a weighted average period of 1.9 years. The following table summarizes information regarding stock options outstanding at October 3, 2015 : Options Outstanding Options Vested and Exercisable Range of Weighted Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price ($) Number Exercisable Weighted Average Exercise Price ($) (In thousands) (In thousands) $1.50-$6.89 794 3.59 3.55 793 3.55 $6.90-$8.69 774 6.45 8.47 513 8.48 $8.70-$8.81 1,350 4.83 8.76 1,323 8.76 $8.82-$11.57 920 5.45 10.56 837 10.54 $11.58-$15.76 959 5.69 13.86 732 13.40 $15.77-$21.11 496 5.88 16.51 468 16.44 $21.12-$28.20 1,740 4.01 22.62 1,251 21.89 $1.50-$28.20 7,033 4.94 13.05 5,917 12.25 Restricted Stock Units The Company issues restricted stock units to executive officers, directors and certain management employees. These units vest over periods ranging from one to four years or based upon achievement of specified performance criteria and are automatically exchanged for shares of common stock at the vesting date. Compensation expense associated with these units is recognized ratably over the vesting period. Activity with respect to the Company's restricted stock units was as follows: Number of Shares Weighted Grant-Date Fair Value Per Share ($) Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value ($) (In thousands) (In thousands) Outstanding as of September 29, 2012 2,230 9.51 1.08 21,272 Granted 1,167 9.42 Vested/Forfeited/Cancelled (1,629 ) 7.93 Outstanding as of September 28, 2013 1,768 10.90 2.02 31,052 Granted 1,204 17.16 Vested/Forfeited/Cancelled (631 ) 13.99 Outstanding as of September 27, 2014 2,341 13.29 2.01 56,064 Granted 966 23.42 Vested/Forfeited/Cancelled (328 ) 13.79 Outstanding as of October 3, 2015 2,979 16.52 1.52 59,843 Expected to vest as of October 3, 2015 2,739 16.28 1.44 39,386 The weighted-average grant date fair value of restricted stock units granted was $23.42 , $17.16 and $9.42 in 2015 , 2014 and 2013 , respectively. The total fair value of restricted stock units vested was $6.7 million for 2015 , $9.2 million for 2014 and $8.3 million for 2013. As of October 3, 2015 , unrecognized compensation expense of $20.0 million is expected to be recognized over a weighted average period of 1.5 years. Additionally, as of October 3, 2015 , unrecognized compensation expense related to performance-based restricted stock units for which achievement of vesting criteria is not considered probable was $13.6 million . |
Note 16 Employee Benefit Plans
Note 16 Employee Benefit Plans | 12 Months Ended |
Oct. 03, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Employee Benefit Plans The Company has various defined contribution retirement plans that cover the majority of its domestic employees. These retirement plans permit participants to elect to have contributions made to the retirement plans in the form of salary deferrals. Under these retirement plans, the Company may match a portion of employee contributions. Amounts contributed by the Company were not material for any period presented herein. The Company sponsors deferred compensation plans for eligible employees and non-employee members of its board of directors. These plans allow eligible participants to defer payment of all or part of their compensation. Deferrals under these plans were $3.7 million and $1.9 million for 2015 and 2014 , respectively. Assets and liabilities associated with these plans were approximately $15.5 million and $12.5 million , as of October 3, 2015 and September 27, 2014 , respectively, and are recorded in other non-current assets and other long-term liabilities on the consolidated balance sheets. Defined benefit plans covering certain employees in the United States and Canada were frozen in 2001. Employees who had not yet vested will continue to be credited with service until vesting occurs, but no additional benefits will accrue. The Company also provides defined benefit pension plans in certain other countries. The assumptions used for calculating the pension benefit obligations for non-U.S. plans depend on the local economic environment and regulations. The measurement date for the Company's pension plans is October 3, 2015 . Changes in benefit obligations for the plans described above were as follows (in thousands): As of October 3, 2015 As of September 27, 2014 As of September 28, 2013 Change in Benefit Obligations U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Beginning projected benefit obligation $ 27,351 $ 49,053 $ 26,702 $ 44,590 $ 29,601 $ 35,171 Service cost — 1,143 — 1,172 — 1,144 Interest cost 819 1,498 966 1,771 791 1,721 Actuarial (gain) loss 492 4,625 1,998 4,187 (2,050 ) 3,561 Benefits paid (660 ) (942 ) (660 ) (912 ) (674 ) (1,083 ) Other (1) (1,561 ) (6,561 ) (1,655 ) (1,755 ) (966 ) 4,076 Ending projected benefit obligation $ 26,441 $ 48,816 $ 27,351 $ 49,053 $ 26,702 $ 44,590 Ending accumulated benefit obligation $ 26,441 $ 45,129 $ 27,351 $ 44,363 $ 26,702 $ 40,072 (1) Includes miscellaneous items such as settlements, curtailments, foreign exchange rate movements, etc. Weighted-average actuarial assumptions used to determine benefit obligations were as follows: U.S. Pensions Non-U.S. Pensions As of As of October 3, September 27, October 3, September 27, Discount rate 3.45 % 3.12 % 2.79 % 3.58 % Rate of compensation increases — % — % 2.58 % 2.59 % The Company evaluates these assumptions on a regular basis taking into consideration current market conditions and historical market data. The discount rate is used to measure expected future cash flows at present value on the measurement date. This rate represents the market rate for high-quality fixed income investments. A lower discount rate would increase the present value of the benefit obligation. Other assumptions include demographic factors such as retirement, mortality, and turnover. Changes in plan assets and funded status for the plans described above were as follows (in thousands): As of October 3, 2015 As of September 27, 2014 As of September 28, 2013 Change in Plan Assets U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Beginning fair value $ 21,472 $ 29,049 $ 20,767 $ 28,255 $ 20,443 $ 24,853 Actual return (605 ) 2,231 3,020 2,719 1,964 2,636 Employer contributions — 422 — 394 — 589 Benefits paid (660 ) (942 ) (660 ) (912 ) (674 ) (1,083 ) Settlements (1,561 ) — (1,655 ) — (966 ) — Foreign currency exchange rate effect — (3,681 ) — (1,407 ) — 1,260 Ending fair value $ 18,646 $ 27,079 $ 21,472 $ 29,049 $ 20,767 $ 28,255 Underfunded status $ (7,795 ) $ (21,737 ) $ (5,879 ) $ (20,004 ) $ (5,935 ) $ (16,335 ) Weighted-average asset allocations by asset category for the U.S. and non-U.S. plans were as follows: U.S. Non-U.S. Level 1 Level 1 As of As of Target October 3, 2015 September 27, 2014 Target October 3, 2015 September 27, 2014 Equity securities 51 % 50.8 % 51 % 20 % 15.4 % 28.6 % Debt securities 49 % 49.2 % 49 % 80 % 77.7 % 67.3 % Cash — % — % — % — % 6.9 % 4.1 % Total 100 % 100 % 100 % 100 % 100 % 100 % The Company's investment strategy is designed to ensure that sufficient pension assets are available to pay benefits as they become due. In order to meet this objective, the Company has established targeted investment allocation percentages for equity and debt securities as noted in the preceding table. As of October 3, 2015 , U.S. plan assets are invested in mutual funds which are valued based on the net asset value (NAV) of the underlying securities that is reflective of quoted prices in an active market. The beneficial interest of each participant is represented in units which are issued and redeemed daily at the fund's closing NAV. Non-U.S. plan assets are invested in publicly-traded mutual funds consisting of medium-term Euro bonds and stocks of companies in the European region. The mutual funds are valued using the NAV that is quoted in an active market. The plans are managed consistent with regulations or market practices of the country in which the assets are invested. As of October 3, 2015 there were no significant concentrations of credit risk related to pension plan assets. The funded status of the plans, reconciled to the amount reported on the consolidated balance sheets, is as follows (in thousands): As of October 3, 2015 As of September 27, 2014 As of September 28, 2013 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Components of net amount recognized on consolidated balance sheets: Current liabilities $ — $ (1,067 ) $ — $ (894 ) $ — $ (615 ) Non-current liabilities (7,795 ) (20,670 ) (5,879 ) (19,110 ) (5,935 ) (15,720 ) Net liability recognized on consolidated balance sheets $ (7,795 ) $ (21,737 ) $ (5,879 ) $ (20,004 ) $ (5,935 ) $ (16,335 ) Amounts recognized in AOCI (pre-tax) consist primarily of unrecognized net actuarial losses and are as follows (in thousands): As of October 3, 2015 As of September 27, 2014 As of September 28, 2013 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Accumulated other comprehensive loss $ 6,550 $ 12,958 $ 5,255 $ 11,827 $ 6,151 $ 10,413 Estimated amortization from accumulated other comprehensive income into net periodic benefit cost in 2016 is not material. Net periodic benefit costs consist primarily of service cost and interest cost and were not material for any period presented herein. Weighted-average assumptions used to determine benefit costs were as follows: U.S. Pensions Non-U.S. Pensions October 3, September 27, October 3, September 27, Discount rate 3.12 % 3.78 % 3.58 % 4.14 % Expected return on plan assets 4.50 % 4.50 % 2.90 % 3.50 % Rate of compensation increases — % — % 2.59 % 3.29 % The expected long-term rate of return on assets for the U.S. and non-U.S. pension plans used in these calculations is assumed to be 4.50% and 2.90% , respectively. Several factors, including historical rates of returns, expectations of future returns for each major asset class in which the plan invests, the weight of each asset class in the target mix, the correlations between asset classes and their expected volatilities are considered in developing the asset return assumptions. Estimated future benefit payments are as follows: Pension Benefits (In thousands) 2016 $ 8,244 2017 $ 3,744 2018 $ 3,906 2019 $ 3,927 2020 $ 3,767 Years 2021 through 2025 $ 20,971 |
Note 17 Subsequent Event
Note 17 Subsequent Event | 12 Months Ended |
Oct. 03, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Event On October 7, 2015 , the Company entered into a definitive agreement to purchase a certain manufacturing operation to support a customer in the industrial end market. As part of this transaction, the Company expects to also enter into a master supply agreement with such customer. This transaction is expected to close in the second quarter of 2016. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Oct. 03, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts Disclosure [Text Block] | The financial statement Schedule II-VALUATION AND QUALIFYING ACCOUNTS is filed as part of this Form 10-K. SANMINA CORPORATION SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS Balance at Beginning of Period Charged to Operations Charges Utilized Balance at End of Period (In thousands) Allowances for Doubtful Accounts, Product Returns and Other Net Sales adjustments Fiscal year ended September 28, 2013 $ 12,032 $ (325 ) $ 28 $ 11,735 Fiscal year ended September 27, 2014 $ 11,735 $ (1,457 ) $ — $ 10,278 Fiscal year ended October 3, 2015 $ 10,278 $ 3,161 $ — $ 13,439 |
Note 2 Summary of Significant26
Note 2 Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Oct. 03, 2015 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | Management Estimates and Uncertainties. The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates made in preparing the consolidated financial statements relate to allowances for accounts receivable; provisions for excess and obsolete inventories, product returns, warranties, environmental matters, and legal exposures; determining the recoverability of claims made in connection with customer bankruptcies; determining liabilities for uncertain tax positions; determining the realizability of deferred tax assets; determining fair values of tangible and intangible assets for purposes of business combinations and impairment tests; determining fair values of interest rate swaps, contingent consideration and equity awards; and determining forfeiture rates, volatility and expected life assumptions for purposes of calculating stock compensation expense. Actual results could differ materially from these estimates. |
Financial Instruments And Concentration of Credit Risk [Policy Text Block] | Accounts Receivable and Other Related Allowances. The Company had allowances of $13.4 million and $10.3 million as of October 3, 2015 and September 27, 2014 , respectively, for uncollectible accounts, product returns and other adjustments. One of the Company's most significant risks is the ultimate realization of its accounts receivable. This risk is mitigated by ongoing credit evaluations of customers and frequent contact with customers, especially the most significant customers, which enable the Company to monitor changes in its customers' business operations and respond accordingly. To establish the allowance for doubtful accounts, the Company estimates credit risk associated with accounts receivable by considering the creditworthiness of its customers, past experience, specific facts and circumstances, and the overall economic climate in industries that it serves. To establish the allowance for product returns and other adjustments, the Company primarily utilizes historical data. Financial Instruments and Concentration of Credit Risk. Financial instruments consist primarily of cash and cash equivalents, accounts receivable, foreign currency forward contracts, accounts payable and debt obligations. With the exception of certain of the Company's debt obligations (refer to Note 4. Fair Value and Note 5. Derivative Financial Instruments), the fair value of these financial instruments approximates their carrying amount as of October 3, 2015 and September 27, 2014 due to the nature or short maturity of these instruments, or the fact that the instruments are recorded at fair value on the consolidated balance sheets. |
Inventory, Policy [Policy Text Block] | Inventories. Inventories are stated at the lower of cost (first-in, first-out method) or market. Cost includes labor, materials and manufacturing overhead. Provisions are made to reduce excess and obsolete inventories to their estimated net realizable values. The ultimate realization of inventory carrying amounts is primarily affected by changes in customer demand. Inventory provisions are established based on forecasted demand, past experience with specific customers, the age and nature of the inventory, the ability to redistribute inventory to other programs or back to suppliers, and whether customers are contractually obligated and have the ability to pay for the related inventory. Certain payments received from customers for inventory held by the Company are recorded as a reduction of inventory. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment, net. Property, plant and equipment are stated at cost or, in the case of property and equipment acquired through business combinations, at fair value as of the acquisition date. Depreciation is provided on a straight-line basis over 20 to 40 years for buildings and 3 to 15 years for machinery, equipment, furniture and fixtures. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or useful life of the asset . The Company reviews property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. An asset or asset group is considered impaired if its carrying amount exceeds the undiscounted future net cash flows the asset or asset group is expected to generate. If an asset or asset group is considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset or asset group exceeds its fair value. An asset group is the unit of accounting which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets. For asset groups for which the primary asset is a building, the Company estimates fair value based on data provided by commercial real estate brokers. For other asset groups, the Company estimates fair value based on projected discounted future net cash flows. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation. For foreign subsidiaries using the local currency as their functional currency, assets and liabilities are translated to U.S. dollars at exchange rates in effect at the balance sheet date and income and expenses are translated at average exchange rates. The effects of these translation adjustments are reported in stockholders' equity as a component of accumulated other comprehensive income ("AOCI"). For all entities, remeasurement adjustments for non-functional currency monetary assets and liabilities are included in other income (expense), net in the accompanying consolidated statements of income. Remeasurement gains and losses arising from long-term intercompany loans denominated in a currency other than an entity's functional currency are recorded in AOCI if repayment of the loan is not anticipated in the foreseeable future. |
Derivatives, Policy [Policy Text Block] | Derivative Instruments and Hedging Activities. The Company conducts business on a global basis in numerous currencies and is therefore exposed to movements in foreign currency exchange rates. The Company uses foreign currency forward contracts to minimize the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. In the past, the Company has also used interest rate swaps to manage interest rate risk associated with certain long-term debt. The Company accounts for derivative instruments and hedging activities in accordance with ASC Topic 815, Derivatives and Hedging, which requires each derivative instrument to be recorded on the consolidated balance sheets at its fair value as either an asset or a liability. If a derivative is designated as a cash flow hedge, the effective portion of changes in the fair value of the derivative is recorded in stockholders' equity as a separate component of AOCI and is recognized in earnings when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges are immediately recognized in earnings. If a derivative is designated as a fair value hedge, changes in the fair value of the derivative and of the item being hedged are recognized in earnings in the current period. Derivative instruments are entered into for periods of time consistent with the related underlying exposures and are not entered into for speculative purposes. At the inception of a hedge, the Company documents all relationships between derivative instruments and related hedged items, as well as its risk-management objectives and strategies for the hedging transaction. The Company's foreign currency forward contracts potentially expose the Company to credit risk to the extent the counterparties may be unable to meet the terms of the agreement. The Company minimizes such risk by seeking high quality counterparties. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition. The Company derives revenue principally from sales of manufacturing services, components and other products. Other sources of revenue include order fulfillment, logistic and repair services, and sales of certain inventory, primarily raw materials, to customers whose requirements change after the Company has procured inventory to fulfill the customers' forecasted demand. The Company recognizes revenue for manufacturing services, components, products and sales of certain inventory when a persuasive arrangement between the Company and the buyer exists, usually in the form of a purchase order received from the Company's customer, the price is fixed or determinable, delivery or performance has occurred and collectability is reasonably assured. Generally, there are no formal customer acceptance requirements or further obligations related to the product or the inventory subsequent to transfer of title and risk of loss. The Company's order fulfillment and logistics services involve warehousing and managing finished product on behalf of a customer. These services are usually provided in conjunction with manufacturing services at one of the Company's facilities. In these instances, revenue for manufacturing services is deferred until the related goods are delivered to the customer, which is upon completion of order fulfillment and logistics services. In certain instances, the Company's facility used to provide order fulfillment and logistics services is controlled by the customer pursuant to a separate arrangement. In these instances, revenue for manufacturing services is recognized upon receipt of the manufactured product at the customer-controlled location and revenue for order fulfillment and logistics services is recognized separately as the services are provided. Revenue for repair services is generally recognized upon completion of the services. Provisions are made for estimated sales returns and other adjustments at the time revenue is recognized. Such provisions were not material to the consolidated financial statements for any period presented herein. The Company presents sales net of sales taxes and value-added taxes in its consolidated statements of income. Amounts billed to customers for shipping and handling are recorded as revenue and shipping and handling costs incurred by the Company are included in cost of sales. |
Income Tax, Policy [Policy Text Block] | Income taxes. The Company estimates its income tax provision or benefit in each of the jurisdictions in which it operates, including estimating exposures and making judgments regarding the realizability of deferred tax assets. The carrying value of the Company's net deferred tax assets is based on the Company's belief that it is more likely than not that the Company will generate sufficient future taxable income in certain jurisdictions to realize these deferred tax assets. A valuation allowance has been established for deferred tax assets which do not meet the “more likely than not” criteria discussed above . The Company's tax rate is highly dependent upon the geographic distribution of its worldwide income or losses, the tax regulations and tax holidays in each geographic region, the availability of tax credits and carryforwards, including net operating losses, and the effectiveness of its tax planning strategies. The Company makes an assessment of whether each income tax position is “more likely than not” of being sustained on audit, including resolution of related appeals or litigation, if any. For each income tax position that meets the “more likely than not” recognition threshold, the Company then assesses the largest amount of tax benefit that is greater than 50% likely of being realized upon effective settlement with the tax authority. Interest and penalties related to unrecognized tax benefits are recognized as a component of income tax expense. |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | Recent Accounting Pronouncements. In September 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (ASU) 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments (Topic 805)". This ASU requires the Company to recognize adjustments to provisional amounts identified during the measurement period in the reporting period in which the adjustments are determined. Additionally, the Company is required to disclose the amount recorded in current-period earnings that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The new guidance is effective for the Company in fiscal 2017. In July 2015, the FASB issued ASU 2015-11, "Simplifying the Measurement of Inventory (Topic 330)". This ASU requires measurement of inventory at the lower of cost and net realizable value. Net realizable value is defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Currently, inventory is generally measured at the lower of cost or market, except for excess and obsolete inventories which are carried at their estimated net realizable values. This new standard is effective for the Company in fiscal 2018, including interim periods within that reporting period. The Company is currently evaluating the impact of adopting this new accounting standard. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)," which supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605).” This ASU requires an entity to recognize revenue when goods are transferred or services are provided to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires disclosures enabling users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new guidance is effective for the Company in fiscal 2019, including interim periods within that reporting period, using one of two prescribed transition methods. The Company is currently participating in an EMS industry forum that has been created to evaluate the impact of adoption of ASU 2014-09 on entities within such industry. The Company has not yet selected a transition method, nor has it determined the effect of the standard on its ongoing financial reporting. |
Note 3 Balance Sheet Items (Tab
Note 3 Balance Sheet Items (Tables) | 12 Months Ended |
Oct. 03, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | As of October 3, September 27, (In thousands) Raw materials $ 624,514 $ 628,860 Work-in-process 120,131 102,618 Finished goods 174,083 161,700 Total $ 918,728 $ 893,178 |
Property, Plant and Equipment [Table Text Block] | As of October 3, September 27, (In thousands) Machinery and equipment $ 1,416,884 $ 1,430,057 Land and buildings 588,052 560,990 Leasehold improvements 53,360 55,463 Furniture and fixtures 20,420 20,507 Construction in progress 12,883 18,335 2,091,599 2,085,352 Less: Accumulated depreciation and amortization (1,500,755 ) (1,522,336 ) Property, plant and equipment, net $ 590,844 $ 563,016 |
Note 5 Derivative Financial I28
Note 5 Derivative Financial Instruments (Tables) | 12 Months Ended |
Oct. 03, 2015 | |
Summary of Derivative Instruments [Abstract] | |
Foreign Currency Forward Contract Volume [Table Text Block] | As of October 3, 2015 September 27, 2014 Derivatives Designated as Accounting Hedges: Notional amount (in thousands) $76,465 $114,157 Number of contracts 41 42 Derivatives Not Designated as Accounting Hedges: Notional amount (in thousands) $230,084 $255,828 Number of contracts 46 41 |
Note 7 Debt (Tables)
Note 7 Debt (Tables) | 12 Months Ended |
Oct. 03, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | As of October 3, September 27, (In thousands) Secured debt due 2017 ("Secured Debt") $ 40,000 $ 40,000 Senior notes due 2019 ("2019 Notes") — 100,000 Senior secured notes due 2019 ("Secured Notes") 375,000 375,000 Non-interest bearing notes payable 12,365 15,097 Fair value adjustment (1) — 3,757 Total long-term debt 427,365 533,854 Less : Current portion 2019 Notes called for redemption in fourth quarter of 2014 — 100,000 Fair value adjustment related to 2019 Notes — 3,757 Secured debt (refinanced in the first quarter of 2015) — 40,000 Current portion of non-interest bearing notes payable 3,416 3,416 Long-term debt $ 423,949 $ 386,681 (1) Represents fair value hedge accounting adjustment related to interest rate swaps. |
Note 8 Commitment and Conting30
Note 8 Commitment and Contingencies (Tables) | 12 Months Ended |
Oct. 03, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating Leases of Lessee Disclosure [Table Text Block] | (In thousands) 2016 $ 19,954 2017 13,497 2018 8,557 2019 2,990 2020 2,014 Thereafter 19,086 Total $ 66,098 |
Note 9 Income Tax (Tables)
Note 9 Income Tax (Tables) | 12 Months Ended |
Oct. 03, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Year Ended October 3, September 27, September 28, (In thousands) Domestic $ 91,613 $ 92,961 $ 3,517 Foreign 84,580 68,778 99,889 Total $ 176,193 $ 161,739 $ 103,406 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year Ended October 3, September 27, September 28, (In thousands) Federal: Current $ 1,413 $ 5,889 $ — Deferred (226,225 ) (43,789 ) (6,611 ) State: Current 543 (100 ) 1,388 Deferred (513 ) (1,251 ) (189 ) Foreign: Current 42,295 27,937 31,249 Deferred (18,581 ) (24,112 ) (1,782 ) Total provision for (benefit from) income taxes $ (201,068 ) $ (35,426 ) $ 24,055 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | As of October 3, 2015 September 27, 2014 (In thousands) Deferred tax assets: U.S. net operating loss carryforwards $ 416,866 $ 452,754 Foreign net operating loss carryforwards 214,949 298,693 Acquisition related intangibles 46,019 58,442 Accruals not currently deductible 60,225 62,148 Property, plant and equipment 21,099 23,754 Tax credit carryforwards 8,898 9,155 Reserves not currently deductible 22,482 18,612 Stock compensation expense 16,388 14,173 Unrealized losses 4,417 4,417 Other 1,633 745 Valuation allowance (282,734 ) (663,193 ) Total deferred tax assets 530,242 279,700 Deferred tax liabilities on foreign earnings (19,872 ) (19,872 ) Other deferred tax liabilities (17,792 ) (9,521 ) Net deferred tax assets $ 492,578 $ 250,307 Recorded as: Current deferred tax assets $ 74,935 $ 37,738 Non-current deferred tax assets 422,670 217,645 Non-current deferred tax liabilities (5,027 ) (5,076 ) Net deferred tax assets $ 492,578 $ 250,307 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended October 3, September 27, September 28, Federal tax at statutory tax rate 35.00 % 35.00 % 35.00 % Effect of foreign operations 3.82 (4.34 ) (8.17 ) Foreign income inclusion 0.21 1.17 4.08 Change in valuation allowance 4.41 (4.23 ) 11.54 Permanent items 2.05 2.69 0.26 Change to other comprehensive income — 2.05 — Release of valuation allowance (163.92 ) (54.18 ) (20.79 ) State income taxes, net of federal benefit 4.31 (0.06 ) 1.34 Effective tax rate (114.12 )% (21.90 )% 23.26 % |
Summary of Income Tax Contingencies [Table Text Block] | Year Ended October 3, September 27, (In thousands) Balance, beginning of year $ 54,237 $ 65,148 Increase related to prior year tax positions — — Decrease related to prior year tax positions (5,044 ) (11,274 ) Increase related to current year tax positions 5,564 4,993 Settlements (3,599 ) (4,630 ) Balance, end of year $ 51,158 $ 54,237 |
Note 10 Earnings Per Share (Tab
Note 10 Earnings Per Share (Tables) | 12 Months Ended |
Oct. 03, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year Ended October 3, September 27, September 28, 2013 (In thousands, except per share amounts) Numerator: Net income $ 377,261 $ 197,165 $ 79,351 Denominator: Weighted average common shares outstanding 81,818 82,872 82,834 Effect of dilutive stock options and restricted stock units 3,823 3,859 2,569 Denominator for diluted earnings per share 85,641 86,731 85,403 Net income per share: Basic $ 4.61 $ 2.38 $ 0.96 Diluted $ 4.41 $ 2.27 $ 0.93 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | As of October 3, 2015 September 27, 2014 September 28, 2013 Potentially dilutive securities: (In thousands) Employee stock options 776 2,502 6,634 Restricted stock units 13 112 — Total 789 2,614 6,634 |
Note 11 Stockholders Equity (Ta
Note 11 Stockholders Equity (Tables) | 12 Months Ended |
Oct. 03, 2015 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | As of October 3, September 27, (In thousands) Foreign currency translation adjustments $ 86,630 $ 100,090 Unrealized holding losses on derivative financial instruments (683 ) (575 ) Unrecognized net actuarial loss and unrecognized transition cost for benefit plans (19,376 ) (16,599 ) Total $ 66,571 $ 82,916 |
Note 12 Other Income (Expense34
Note 12 Other Income (Expense), Net (Tables) | 12 Months Ended |
Oct. 03, 2015 | |
Other Nonoperating Income (Expense) [Abstract] | |
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | Year ended October 3, September 27, September 28, Foreign exchange losses $ 681 $ (1,962 ) $ (3,091 ) Loss from dedesignation of interest rate swap — — (14,903 ) Other, net 86 5,068 5,162 Total $ 767 $ 3,106 $ (12,832 ) |
Note 13 Acquisition (Tables)
Note 13 Acquisition (Tables) | 12 Months Ended |
Oct. 03, 2015 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | (In thousands) Current assets $ 29,673 Noncurrent assets, including identifiable intangible assets of $9.6 million and goodwill of $0.9 million 23,605 Current liabilities, including debt of $15.3 million that was repaid immediately after closing (27,757 ) Noncurrent liabilities (615 ) Total $ 24,906 |
Note 14 Business Segment, Geo36
Note 14 Business Segment, Geographic and Customer Information (Tables) | 12 Months Ended |
Oct. 03, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Year Ended October 3, 2015 September 27, 2014 September 28, 2013 (In thousands) Gross sales: IMS $ 5,157,427 $ 4,933,714 $ 4,766,670 CPS 1,414,797 1,514,340 1,335,510 Intersegment revenue (197,683 ) (231,092 ) (185,056 ) Unallocated items (1) — (1,856 ) — Net Sales $ 6,374,541 $ 6,215,106 $ 5,917,124 Gross Profit: IMS $ 366,436 $ 339,909 $ 291,664 CPS 135,064 155,974 144,725 Total 501,500 495,883 436,389 Unallocated items (1) (17,644 ) (7,600 ) (9,572 ) Total $ 483,856 $ 488,283 $ 426,817 Depreciation and amortization: IMS $ 56,428 $ 50,933 $ 54,531 CPS 35,526 38,420 32,802 Total 91,954 89,353 87,333 Unallocated corporate items (2) 8,613 8,324 8,688 Total $ 100,567 $ 97,677 $ 96,021 Capital expenditures (receipt basis): IMS $ 105,755 $ 47,103 $ 44,080 CPS 17,290 27,724 25,542 Total 123,045 74,827 69,622 Unallocated corporate items (2) 3,436 4,635 3,447 Total $ 126,481 $ 79,462 $ 73,069 (1) For purposes of evaluating segment performance, management excludes certain items from its measures of revenue and gross profit. These items include stock-based compensation expense, amortization of intangible assets, charges or credits resulting from distressed customers and similar items that either occur infrequently or are of a non-operational nature. (2) Primarily related to selling, general and administration functions. As of October 3, September 27, (In thousands) Long-lived assets (including assets held for sale): IMS $ 351,490 $ 309,922 CPS 208,807 213,266 Total 560,297 523,188 Unallocated corporate items (1) 30,547 51,466 Total $ 590,844 $ 574,654 (1) Primarily related to selling, general and administration functions. |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Year Ended October 3, 2015 September 27, 2014 September 28, 2013 (In thousands) Net sales: Domestic $ 1,029,897 $ 1,041,892 $ 1,074,529 Mexico 1,979,085 1,693,564 1,433,799 China 1,510,208 1,564,389 1,501,632 Other international 1,855,351 1,915,261 1,907,164 Total $ 6,374,541 $ 6,215,106 $ 5,917,124 Percentage of net sales represented by ten largest customers 48.3 % 50.3 % 50.3 % Number of customers representing 10% or more of net sales — — 1 |
Schedule of Long-lived Assets by Geographic Areas [Table Text Block] | As of October 3, September 27, (In thousands) Long-lived assets (including assets held for sale): Domestic $ 149,340 $ 147,298 Mexico 159,907 168,712 China 84,426 89,380 Other international 197,171 169,264 Total $ 590,844 $ 574,654 |
Note 15 Stock-Based Compensat37
Note 15 Stock-Based Compensation (Tables) | 12 Months Ended |
Oct. 03, 2015 | |
Share-based Compensation [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Year Ended October 3, September 27, September 28, (In thousands) Stock options $ 9,894 $ 9,820 $ 10,506 Restricted stock units 10,759 8,969 7,018 Total $ 20,653 $ 18,789 $ 17,524 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Year Ended October 3, September 27, September 28, (In thousands) Cost of sales $ 6,611 $ 5,849 $ 5,464 Selling, general & administrative 13,859 12,861 11,942 Research & development 183 79 118 Total $ 20,653 $ 18,789 $ 17,524 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Year Ended October 3, September 27, September 28, Volatility 52.9 % 67.6 % 86.0 % Risk-free interest rate 1.6 % 1.5 % 0.7 % Dividend yield — — — Expected life of options 5.0 5.0 5.0 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Number of Shares Weighted-Average Exercise Price ($) Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value of In-The-Money Options ($) (In thousands) (In thousands) Outstanding as of September 29, 2012 11,275 13.15 6.54 18,548 Granted 975 8.83 Exercised/Cancelled/Forfeited/Expired (2,688 ) 13.36 Outstanding as of September 28, 2013 9,562 12.65 5.99 62,825 Granted 648 15.89 Exercised/Cancelled/Forfeited/Expired (2,029 ) 12.67 Outstanding as of September 27, 2014 8,181 12.90 5.30 93,767 Granted 567 24.48 Exercised/Cancelled/Forfeited/Expired (1,715 ) 16.13 Outstanding as of October 3, 2015 7,033 13.05 4.94 53,938 Vested and expected to vest as of October 3, 2015 6,942 12.97 4.89 53,609 Exercisable as of October 3, 2015 5,917 12.25 4.33 48,655 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Options Outstanding Options Vested and Exercisable Range of Weighted Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price ($) Number Exercisable Weighted Average Exercise Price ($) (In thousands) (In thousands) $1.50-$6.89 794 3.59 3.55 793 3.55 $6.90-$8.69 774 6.45 8.47 513 8.48 $8.70-$8.81 1,350 4.83 8.76 1,323 8.76 $8.82-$11.57 920 5.45 10.56 837 10.54 $11.58-$15.76 959 5.69 13.86 732 13.40 $15.77-$21.11 496 5.88 16.51 468 16.44 $21.12-$28.20 1,740 4.01 22.62 1,251 21.89 $1.50-$28.20 7,033 4.94 13.05 5,917 12.25 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Number of Shares Weighted Grant-Date Fair Value Per Share ($) Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value ($) (In thousands) (In thousands) Outstanding as of September 29, 2012 2,230 9.51 1.08 21,272 Granted 1,167 9.42 Vested/Forfeited/Cancelled (1,629 ) 7.93 Outstanding as of September 28, 2013 1,768 10.90 2.02 31,052 Granted 1,204 17.16 Vested/Forfeited/Cancelled (631 ) 13.99 Outstanding as of September 27, 2014 2,341 13.29 2.01 56,064 Granted 966 23.42 Vested/Forfeited/Cancelled (328 ) 13.79 Outstanding as of October 3, 2015 2,979 16.52 1.52 59,843 Expected to vest as of October 3, 2015 2,739 16.28 1.44 39,386 |
Note 16 Employee Benefit Plans
Note 16 Employee Benefit Plans (Tables) | 12 Months Ended |
Oct. 03, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Changes in Projected Benefit Obligations [Table Text Block] | As of October 3, 2015 As of September 27, 2014 As of September 28, 2013 Change in Benefit Obligations U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Beginning projected benefit obligation $ 27,351 $ 49,053 $ 26,702 $ 44,590 $ 29,601 $ 35,171 Service cost — 1,143 — 1,172 — 1,144 Interest cost 819 1,498 966 1,771 791 1,721 Actuarial (gain) loss 492 4,625 1,998 4,187 (2,050 ) 3,561 Benefits paid (660 ) (942 ) (660 ) (912 ) (674 ) (1,083 ) Other (1) (1,561 ) (6,561 ) (1,655 ) (1,755 ) (966 ) 4,076 Ending projected benefit obligation $ 26,441 $ 48,816 $ 27,351 $ 49,053 $ 26,702 $ 44,590 Ending accumulated benefit obligation $ 26,441 $ 45,129 $ 27,351 $ 44,363 $ 26,702 $ 40,072 (1) Includes miscellaneous items such as settlements, curtailments, foreign exchange rate movements, etc. |
Schedule of Assumptions Used [Table Text Block] | U.S. Pensions Non-U.S. Pensions As of As of October 3, September 27, October 3, September 27, Discount rate 3.45 % 3.12 % 2.79 % 3.58 % Rate of compensation increases — % — % 2.58 % 2.59 % U.S. Pensions Non-U.S. Pensions October 3, September 27, October 3, September 27, Discount rate 3.12 % 3.78 % 3.58 % 4.14 % Expected return on plan assets 4.50 % 4.50 % 2.90 % 3.50 % Rate of compensation increases — % — % 2.59 % 3.29 % |
Schedule of Changes in Fair Value of Plan Assets [Table Text Block] | As of October 3, 2015 As of September 27, 2014 As of September 28, 2013 Change in Plan Assets U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Beginning fair value $ 21,472 $ 29,049 $ 20,767 $ 28,255 $ 20,443 $ 24,853 Actual return (605 ) 2,231 3,020 2,719 1,964 2,636 Employer contributions — 422 — 394 — 589 Benefits paid (660 ) (942 ) (660 ) (912 ) (674 ) (1,083 ) Settlements (1,561 ) — (1,655 ) — (966 ) — Foreign currency exchange rate effect — (3,681 ) — (1,407 ) — 1,260 Ending fair value $ 18,646 $ 27,079 $ 21,472 $ 29,049 $ 20,767 $ 28,255 Underfunded status $ (7,795 ) $ (21,737 ) $ (5,879 ) $ (20,004 ) $ (5,935 ) $ (16,335 ) |
Schedule of Allocation of Plan Assets [Table Text Block] | U.S. Non-U.S. Level 1 Level 1 As of As of Target October 3, 2015 September 27, 2014 Target October 3, 2015 September 27, 2014 Equity securities 51 % 50.8 % 51 % 20 % 15.4 % 28.6 % Debt securities 49 % 49.2 % 49 % 80 % 77.7 % 67.3 % Cash — % — % — % — % 6.9 % 4.1 % Total 100 % 100 % 100 % 100 % 100 % 100 % |
Schedule of Amounts Recognized in Balance Sheet [Table Text Block] | As of October 3, 2015 As of September 27, 2014 As of September 28, 2013 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Components of net amount recognized on consolidated balance sheets: Current liabilities $ — $ (1,067 ) $ — $ (894 ) $ — $ (615 ) Non-current liabilities (7,795 ) (20,670 ) (5,879 ) (19,110 ) (5,935 ) (15,720 ) Net liability recognized on consolidated balance sheets $ (7,795 ) $ (21,737 ) $ (5,879 ) $ (20,004 ) $ (5,935 ) $ (16,335 ) |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | As of October 3, 2015 As of September 27, 2014 As of September 28, 2013 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Accumulated other comprehensive loss $ 6,550 $ 12,958 $ 5,255 $ 11,827 $ 6,151 $ 10,413 |
Schedule of Expected Benefit Payments [Table Text Block] | Pension Benefits (In thousands) 2016 $ 8,244 2017 $ 3,744 2018 $ 3,906 2019 $ 3,927 2020 $ 3,767 Years 2021 through 2025 $ 20,971 |
Note 2 Accounts Receivable (Det
Note 2 Accounts Receivable (Details) - USD ($) $ in Thousands | Oct. 03, 2015 | Sep. 27, 2014 |
Accounts Receivable, Net [Abstract] | ||
Accounts receivable allowances | $ 13,439 | $ 10,278 |
Note 2 Property Plant and Equip
Note 2 Property Plant and Equipment (Details) | 12 Months Ended |
Oct. 03, 2015 | |
Leasehold Improvements | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Depreciation Methods | straight-line basis over the shorter of the lease term or useful life of the asset |
Minimum | Building | |
Property, Plant and Equipment [Line Items] | |
Useful Life In Years | 20 years |
Minimum | Machinery, Equipment, Furniture and Fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful Life In Years | 3 years |
Maximum | Building | |
Property, Plant and Equipment [Line Items] | |
Useful Life In Years | 40 years |
Maximum | Machinery, Equipment, Furniture and Fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful Life In Years | 15 years |
Note 3 Inventory (Details)
Note 3 Inventory (Details) - USD ($) $ in Thousands | Oct. 03, 2015 | Sep. 27, 2014 |
Inventory, Net [Abstract] | ||
Raw materials | $ 624,514 | $ 628,860 |
Work-in-process | 120,131 | 102,618 |
Finished goods | 174,083 | 161,700 |
Total | $ 918,728 | $ 893,178 |
Note 3 Property, Plant and Equi
Note 3 Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Sep. 28, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 2,091,599 | $ 2,085,352 | |
Accumulated Depreciation and Amortization | (1,500,755) | (1,522,336) | |
Property, plant and equipment, net | 590,844 | 563,016 | |
Depreciation Expense | 96,100 | 93,800 | $ 94,100 |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 1,416,884 | 1,430,057 | |
Land and buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 588,052 | 560,990 | |
Leasehold Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 53,360 | 55,463 | |
Furniture and Fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 20,420 | 20,507 | |
Construction in Progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 12,883 | $ 18,335 |
Note 4 Non-financial Assets Mea
Note 4 Non-financial Assets Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Millions | Oct. 03, 2015 | Sep. 27, 2014 |
Level 2 | Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets Measured on Nonrecurring Basis [Line Items] | ||
Assets Held-for-sale | $ 0 | $ 11.6 |
Note 5 Foreign Currency Forward
Note 5 Foreign Currency Forward Contracts (Details) - Foreign Exchange Forward $ in Thousands | 12 Months Ended | |
Oct. 03, 2015USD ($) | Sep. 27, 2014USD ($) | |
Derivatives Designated as Accounting Hedges | ||
Derivative [Line Items] | ||
Notional Amount | $ 76,465 | $ 114,157 |
Number of contracts | 41 | 42 |
Maximum Length of Time Hedged in Foreign Currency Cash Flow Hedge | 12 months | |
Derivatives Not Designated as Accounting Hedges | ||
Derivative [Line Items] | ||
Notional Amount | $ 230,084 | $ 255,828 |
Number of contracts | 46 | 41 |
Maximum Remaining Maturity of Foreign Currency Derivatives | 2 months |
Note 5 Effect of Cash Flow Hedg
Note 5 Effect of Cash Flow Hedging Relationships (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | Sep. 28, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Proceeds from terminations of interest rate swaps | $ 3,258 | $ 16,492 | $ 0 | |
Interest Rate Swap | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Notional Amount Terminated | $ 100,000 | |||
Proceeds from terminations of interest rate swaps | $ 3,300 |
Note 6 Concentration of Credit
Note 6 Concentration of Credit Risk (Details) | 12 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Sep. 28, 2013 | |
Financial Instruments and Concentration of Credit Risk [Abstract] | |||
Number of Customers Representing More Than 10% of Net Sales | 0 | 0 | 1 |
Number of Customers Representing 10% Or More of Gross Accounts Receivable | 1 | 1 |
Note 7 Debt Schedule (Details)
Note 7 Debt Schedule (Details) - USD ($) $ in Thousands | Oct. 03, 2015 | Sep. 27, 2014 | |
Debt Instrument [Line Items] | |||
Non-interest bearing notes payable | $ 12,365 | $ 15,097 | |
Total long-term debt | 427,365 | 533,854 | |
Long-term debt | 423,949 | 386,681 | |
2019 Notes | |||
Debt Instrument [Line Items] | |||
Senior Notes | 0 | 100,000 | |
2019 Notes | Interest Rate Swap | |||
Debt Instrument [Line Items] | |||
Fair Value Adjustment | [1] | 0 | 3,757 |
Secured Notes due 2019 | |||
Debt Instrument [Line Items] | |||
Secured Debt | 375,000 | 375,000 | |
Debt due 2015 | |||
Debt Instrument [Line Items] | |||
Secured Debt | 40,000 | ||
Debt due 2017 | |||
Debt Instrument [Line Items] | |||
Secured Debt | 40,000 | ||
Current portion | |||
Debt Instrument [Line Items] | |||
Non-interest bearing notes payable | 3,416 | 3,416 | |
Current portion | 2019 Notes | |||
Debt Instrument [Line Items] | |||
Senior Notes | 0 | 100,000 | |
Current portion | 2019 Notes | Interest Rate Swap | |||
Debt Instrument [Line Items] | |||
Fair Value Adjustment | 0 | 3,757 | |
Current portion | Debt due 2015 | |||
Debt Instrument [Line Items] | |||
Secured Debt | $ 40,000 | ||
Current portion | Debt due 2017 | |||
Debt Instrument [Line Items] | |||
Secured Debt | $ 0 | ||
[1] | Represents fair value hedge accounting adjustment related to interest rate swaps. |
Note 7 Debt Detail (Details)
Note 7 Debt Detail (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Jun. 27, 2015 | Dec. 27, 2014 | Jun. 28, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 29, 2012 | Oct. 01, 2011 | |
Loss on extinguishments of debt | $ 3,760 | $ 11,778 | $ 1,401 | |||||
Discounted value of notes issued | $ 0 | 14,789 | $ 0 | |||||
Secured Notes due 2019 | ||||||||
Face value of debt | $ 375,000 | |||||||
Maturity Date | Jun. 1, 2019 | |||||||
Interest rate | 4.375% | |||||||
Frequency of Periodic Payment | semi-annually in arrears | |||||||
Debt Instrument, Call Feature | All or any portion of the Secured Notes may be redeemed, at any time, at the option of the Company, at a redemption price equal to 100% of the principal amount of the Secured Notes redeemed plus accrued and unpaid interest, plus a make-whole premium. Following a change of control, as defined, the Company would be required to make an offer to repurchase all of the Secured Notes at a purchase price of 101% of the principal amount of the Secured Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the date of repurchase. | |||||||
Debt Issuance Costs | 5,100 | |||||||
Non-interest bearing notes payable | ||||||||
Face value of debt | 17,100 | |||||||
Frequency of Periodic Payment | payable in five annual installments | |||||||
Discounted value of notes issued | $ 14,800 | |||||||
Senior Notes | 2019 Notes | ||||||||
Face value of debt | $ 500,000 | |||||||
Extinguishment of Debt, Amount | $ 100,000 | 400,000 | ||||||
Loss on extinguishments of debt | 2,900 | 11,800 | ||||||
Write-off of Unamortized Debt Issuance Cost | 1,400 | 6,000 | ||||||
Carrying value adjustment derecognized upon debt extinguishment | 3,800 | $ 16,500 | ||||||
Secured Debt | Debt due 2017 | ||||||||
Face value of debt | $ 40,000 | |||||||
Maturity Date | Dec. 19, 2017 | Jul. 19, 2015 | ||||||
Redemption premium | Senior Notes | 2019 Notes | ||||||||
Payments of Debt Extinguishment Costs | $ 5,300 | $ 21,800 | ||||||
Third party cost | Senior Notes | 2019 Notes | ||||||||
Payments of Debt Extinguishment Costs | $ 500 | |||||||
Revolving Credit Facility | ||||||||
Loss on extinguishments of debt | $ 800 | |||||||
Debt Issuance Costs | $ 1,800 |
Note 7 Line of Credit Facility
Note 7 Line of Credit Facility (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 27, 2015 | Oct. 03, 2015 | Mar. 28, 2015 | Sep. 27, 2014 | |
Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Debt Issuance Cost | $ 1,800 | |||
Unamortized Debt Issuance Costs Carried Forward | 1,000 | |||
Unamortized Debt Issuance Expense | $ 2,800 | |||
Foreign Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Maximum Borrowing Capacity | $ 74,000 | |||
Facility Expiration Date | Mar. 31, 2017 | |||
Amount Outstanding | $ 0 | |||
Asset-backed Lending Facility [Member] | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum Borrowing Capacity | $ 300,000 | |||
Amount Outstanding | $ 0 | |||
Cash Flow Revolver [Member] | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum Borrowing Capacity | 375,000 | |||
Additional Credit Line | $ 125,000 | |||
Facility Expiration Date | May 20, 2020 | |||
Amount Outstanding | $ 110,000 | |||
Letters of Credit Outstanding, Amount | $ 22,000 |
Note 8 Commitment (Details)
Note 8 Commitment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Sep. 28, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
2,016 | $ 19,954 | ||
2,017 | 13,497 | ||
2,018 | 8,557 | ||
2,019 | 2,990 | ||
2,020 | 2,014 | ||
Thereafter | 19,086 | ||
Total minimum lease payments | 66,098 | ||
Operating Leases, Rent Expense, Net | $ 26,200 | $ 29,500 | $ 33,700 |
Note 8 Loss Contingency (Detail
Note 8 Loss Contingency (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Oct. 03, 2015 | Jun. 27, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | |
Loss Contingencies [Line Items] | ||||
Loss Contingency Accrual | $ 49.2 | $ 38.6 | ||
Accrual for Environmental Loss Contingencies, Increase (Decrease) for Revision in Estimates | $ 6 | |||
Collectibility of Receivables | ||||
Loss Contingencies [Line Items] | ||||
Other Loss Contingency | 2.5 | $ 1.9 | ||
Inventories [Member] | ||||
Loss Contingencies [Line Items] | ||||
Other Loss Contingency | $ 3.7 | $ 3.9 |
Note 9 Income (Loss) Before Inc
Note 9 Income (Loss) Before Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Sep. 28, 2013 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 91,613 | $ 92,961 | $ 3,517 |
Foreign | 84,580 | 68,778 | 99,889 |
Income before income taxes | 176,193 | 161,739 | 103,406 |
Federal: | |||
Current | 1,413 | 5,889 | 0 |
Deferred | (226,225) | (43,789) | (6,611) |
State: | |||
Current | 543 | (100) | 1,388 |
Deferred | (513) | (1,251) | (189) |
Foreign: | |||
Current | 42,295 | 27,937 | 31,249 |
Deferred | (18,581) | (24,112) | (1,782) |
Total provision for (benefit from) income taxes | $ (201,068) | $ (35,426) | $ 24,055 |
Note 9 Deferred Tax Assets and
Note 9 Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Oct. 03, 2015 | Sep. 27, 2014 |
Deferred tax assets: | ||
U.S. net operating loss carryforwards | $ 416,866 | $ 452,754 |
Foreign net operating loss carryforwards | 214,949 | 298,693 |
Acquisition related intangibles | 46,019 | 58,442 |
Accruals not currently deductible | 60,225 | 62,148 |
Property, plant and equipment | 21,099 | 23,754 |
Tax credit carryforwards | 8,898 | 9,155 |
Reserves not currently deductible | 22,482 | 18,612 |
Stock compensation expense | 16,388 | 14,173 |
Unrealized losses | 4,417 | 4,417 |
Other | 1,633 | 745 |
Valuation allowance | (282,734) | (663,193) |
Total deferred tax assets | 530,242 | 279,700 |
Deferred tax liabilities on foreign earnings | (19,872) | (19,872) |
Other deferred tax liabilities | (17,792) | (9,521) |
Net deferred tax assets | 492,578 | 250,307 |
Recorded as: | ||
Current deferred tax assets | 74,935 | 37,738 |
Non-current deferred tax assets | 422,670 | 217,645 |
Non-current deferred tax liabilities | (5,027) | (5,076) |
Net deferred tax assets | 492,578 | $ 250,307 |
Domestic | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards, Valuation Allowance | $ 102,700 |
Note 9 Effective Tax Rate (Deta
Note 9 Effective Tax Rate (Details) | 12 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Sep. 28, 2013 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Federal tax at statutory tax rate | 35.00% | 35.00% | 35.00% |
Effect of foreign operations | 3.82% | (4.34%) | (8.17%) |
Foreign income inclusion | 0.21% | 1.17% | 4.08% |
Change in valuation allowance | 4.41% | (4.23%) | 11.54% |
Permanent items | 2.05% | 2.69% | 0.26% |
Change to other comprehensive income | 0.00% | 2.05% | 0.00% |
Release of valuation allowance | (163.92%) | (54.18%) | (20.79%) |
State income taxes, net of federal benefit | 4.31% | (0.06%) | 1.34% |
Effective tax rate | (114.12%) | (21.90%) | 23.26% |
Note 9 Income Tax Detail (Detai
Note 9 Income Tax Detail (Details) $ in Millions | 12 Months Ended |
Oct. 03, 2015USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Expiration Date | Sep. 30, 2033 |
Undistributed Earnings of Foreign Subsidiaries | $ 582.9 |
Release of Valuation Allowance | released $288.7 million, $87.6 million and $21.5 million of the valuation allowance attributable to U.S. and foreign deferred tax assets in 2015, 2014 and 2013, respectively. |
Federal | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 1,151 |
State | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 758.5 |
Foreign | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 756.2 |
Note 9 Unrecognized Tax Benefit
Note 9 Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Sep. 28, 2013 | |
Income Tax Uncertainties [Abstract] | |||
Balance, beginning of year | $ 54,237 | $ 65,148 | |
Increase related to prior year tax positions | 0 | 0 | |
Decrease related to prior year tax positions | (5,044) | (11,274) | |
Increase related to current year tax positions | 5,564 | 4,993 | |
Settlements | (3,599) | (4,630) | |
Balance, end of year | 51,158 | 54,237 | $ 65,148 |
Unrecognized Tax Benefits, Reserve for Penalties and Interest | 32,200 | ||
Unrecognized Tax Benefits, Penalties and Interest accrued during the year | $ 3,900 | $ 5,600 | $ 1,900 |
Note 10 Earnings Per Share (Det
Note 10 Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Sep. 28, 2013 | |
Earnings Per Share [Line Items] | |||
Net income | $ 377,261 | $ 197,165 | $ 79,351 |
Potentially dilutive securities | 789 | 2,614 | 6,634 |
Weighted average shares used in computing per share amount: | |||
Weighted average common shares outstanding | 81,818 | 82,872 | 82,834 |
Effect of dilutive stock options and restricted stock units | 3,823 | 3,859 | 2,569 |
Denominator for diluted earnings per share | 85,641 | 86,731 | 85,403 |
Net income per share: | |||
Basic | $ 4.61 | $ 2.38 | $ 0.96 |
Diluted | $ 4.41 | $ 2.27 | $ 0.93 |
Employee stock options | |||
Earnings Per Share [Line Items] | |||
Potentially dilutive securities | 776 | 2,502 | 6,634 |
Restricted stock units | |||
Earnings Per Share [Line Items] | |||
Potentially dilutive securities | 13 | 112 | 0 |
Note 11 2009 Incentive Plan (De
Note 11 2009 Incentive Plan (Details) - shares shares in Millions | Oct. 03, 2015 | Oct. 03, 2009 |
2009 Incentive Plan | ||
Class of Stock [Line Items] | ||
Number of Shares Authorized | 19.8 | 7.5 |
Note 11 Shares Authorized for F
Note 11 Shares Authorized for Future Issuance and Available for Grant (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Oct. 03, 2015 | Oct. 03, 2015 | Sep. 27, 2014 | Sep. 28, 2013 | |
Shares Authorized for Future Issuance and Available for Grant [Abstract] | ||||
Common Stock, Capital Shares Reserved for Future Issuance | 13,000,000 | 13,000,000 | ||
Stock options and unvested restricted stock units outstanding | 10,000,000 | 10,000,000 | ||
Number of Shares Available for Future Grant | 3,000,000 | 3,000,000 | ||
Stock Repurchase Program, Authorized Amount | $ 100 | |||
Stock Repurchase Program, Additional Authorized Amount | $ 200 | $ 100 | ||
Stock Repurchased During Period, Shares | 5,800,000 | |||
Stock Repurchased During Period, Value | $ 121.2 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 204 | $ 204 | ||
Shares Paid for Tax Withholding for Share Based Compensation | 61,000 | 71,000 | 169,000 | |
Adjustments Related to Tax Withholding for Share-based Compensation | $ 1.5 | $ 1.2 | $ 1.5 |
Note 11 Accumulated Other Compr
Note 11 Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Oct. 03, 2015 | Sep. 27, 2014 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Foreign currency translation adjustments | $ 86,630 | $ 100,090 |
Unrealized holding losses on derivative financial instruments | (683) | (575) |
Unrecognized net actuarial loss and unrecognized transition cost for benefit plans | (19,376) | (16,599) |
Total | $ 66,571 | $ 82,916 |
Note 12 Other Income (Expense61
Note 12 Other Income (Expense), Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Sep. 28, 2013 | |
Components of Other Income (Expense), Net [Line Items] | |||
Other Income (Expense), net | $ 767 | $ 3,106 | $ (12,832) |
Foreign exchange losses | |||
Components of Other Income (Expense), Net [Line Items] | |||
Other Income (Expense), net | 681 | (1,962) | (3,091) |
Loss from dedesignation of interest rate swap | |||
Components of Other Income (Expense), Net [Line Items] | |||
Other Income (Expense), net | 0 | 0 | (14,903) |
Other, net | |||
Components of Other Income (Expense), Net [Line Items] | |||
Other Income (Expense), net | $ 86 | $ 5,068 | $ 5,162 |
Note 12 Derivative Instrument (
Note 12 Derivative Instrument (Details) - Interest Rate Swap - USD ($) $ in Millions | 12 Months Ended | |
Sep. 27, 2014 | Sep. 29, 2007 | |
Derivative [Line Items] | ||
Notional Amount | $ 257 | |
Derivative, Maturity Date | Jun. 15, 2014 |
Note 13 Acquisition (Details)
Note 13 Acquisition (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Oct. 03, 2015 | Dec. 28, 2013 | Jun. 29, 2013 | Dec. 29, 2012 | Oct. 03, 2015 | Sep. 27, 2014 | Sep. 28, 2013 | |
Business Acquisition [Line Items] | |||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 13,887 | $ 79,508 | $ 0 | ||||
Discounted value of notes issued | 0 | $ 14,789 | $ 0 | ||||
Q4 2015 Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Effective Date of Acquisition | Jun. 29, 2015 | ||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 13,900 | ||||||
Current assets | 29,673 | 29,673 | |||||
Noncurrent assets, including identifiable intangible assets of $9.6 million and goodwill of $0.9 million | 23,605 | 23,605 | |||||
Current liabilities | (27,757) | (27,757) | |||||
Noncurrent liabilities | (615) | (615) | |||||
Consideration Transferred | 24,906 | 24,906 | |||||
Contingent Consideration Arrangements, Range of Outcomes, Value, High | 23,500 | 23,500 | |||||
Long-term Debt | 15,300 | 15,300 | |||||
Intangible Assets, Other than Goodwill | 9,600 | 9,600 | |||||
Goodwill | 900 | 900 | |||||
Contingent Consideration, Liability | 11,000 | $ 11,000 | |||||
Business Combination, Consideration Transferred | $ 24,900 | ||||||
Q4 2015 Acquisition | Minimum | |||||||
Business Acquisition [Line Items] | |||||||
Intangible Asset, Useful Life | 1 year | ||||||
Q4 2015 Acquisition | Maximum | |||||||
Business Acquisition [Line Items] | |||||||
Intangible Asset, Useful Life | 3 years | ||||||
Q1 2014 Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Effective Date of Acquisition | Dec. 18, 2013 | ||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 54,100 | ||||||
Q3 2014 Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Effective Date of Acquisition | Apr. 28, 2014 | ||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 25,400 | ||||||
Discounted value of notes issued | 14,800 | ||||||
Business Combination, Consideration Transferred | $ 40,200 |
Note 14 Revenue and Expenses by
Note 14 Revenue and Expenses by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 03, 2015 | Sep. 27, 2014 | Sep. 28, 2013 | ||
Segment Information [Line Items] | ||||
Gross profit | $ 483,856 | $ 488,283 | $ 426,817 | |
Net sales | 6,374,541 | 6,215,106 | 5,917,124 | |
Depreciation and amortization | 100,567 | 97,677 | 96,021 | |
Captial expenditures | 126,481 | 79,462 | 73,069 | |
Long-lived assets (including assets held for sale) | $ 590,844 | 574,654 | ||
Revenue percentage generated by reportable segment | 80.00% | |||
Number of reportable segments | 1 | |||
Operating segments | ||||
Segment Information [Line Items] | ||||
Gross profit | $ 501,500 | 495,883 | 436,389 | |
Depreciation and amortization | 91,954 | 89,353 | 87,333 | |
Captial expenditures | 123,045 | 74,827 | 69,622 | |
Long-lived assets (including assets held for sale) | 560,297 | 523,188 | ||
Operating segments | IMS | ||||
Segment Information [Line Items] | ||||
Revenues | 5,157,427 | 4,933,714 | 4,766,670 | |
Gross profit | 366,436 | 339,909 | 291,664 | |
Depreciation and amortization | 56,428 | 50,933 | 54,531 | |
Captial expenditures | 105,755 | 47,103 | 44,080 | |
Long-lived assets (including assets held for sale) | 351,490 | 309,922 | ||
Operating segments | CPS | ||||
Segment Information [Line Items] | ||||
Revenues | 1,414,797 | 1,514,340 | 1,335,510 | |
Gross profit | 135,064 | 155,974 | 144,725 | |
Depreciation and amortization | 35,526 | 38,420 | 32,802 | |
Captial expenditures | 17,290 | 27,724 | 25,542 | |
Long-lived assets (including assets held for sale) | 208,807 | 213,266 | ||
Segment reconciling items | ||||
Segment Information [Line Items] | ||||
Gross profit | [1] | (17,644) | (7,600) | (9,572) |
Segment reconciling items | IMS | ||||
Segment Information [Line Items] | ||||
Revenues | [1] | 0 | (1,856) | 0 |
Unallocated corporate items | ||||
Segment Information [Line Items] | ||||
Depreciation and amortization | [2] | 8,613 | 8,324 | 8,688 |
Captial expenditures | [2] | 3,436 | 4,635 | 3,447 |
Long-lived assets (including assets held for sale) | [2] | 30,547 | 51,466 | |
Intersegment eliminations | ||||
Segment Information [Line Items] | ||||
Revenues | $ (197,683) | $ (231,092) | $ (185,056) | |
[1] | For purposes of evaluating segment performance, management excludes certain items from its measures of revenue and gross profit. These items include stock-based compensation expense, amortization of intangible assets, charges or credits resulting from distressed customers and similar items that either occur infrequently or are of a non-operational nature. | |||
[2] | Primarily related to selling, general and administration functions. |
Note 14 Net Sales Information b
Note 14 Net Sales Information by Geographic Segment (Details) $ in Thousands | 12 Months Ended | ||
Oct. 03, 2015USD ($) | Sep. 27, 2014USD ($) | Sep. 28, 2013USD ($) | |
Major Customers and Sales By Geographic Areas [Line Items] | |||
Percentage of Net Sales Represented by Ten Largest Customers | 48.30% | 50.30% | 50.30% |
Number of Customers Representing More Than 10% of Net Sales | 0 | 0 | 1 |
Net Sales | $ 6,374,541 | $ 6,215,106 | $ 5,917,124 |
Domestic | |||
Major Customers and Sales By Geographic Areas [Line Items] | |||
Net Sales | 1,029,897 | 1,041,892 | 1,074,529 |
Mexico | |||
Major Customers and Sales By Geographic Areas [Line Items] | |||
Net Sales | 1,979,085 | 1,693,564 | 1,433,799 |
China | |||
Major Customers and Sales By Geographic Areas [Line Items] | |||
Net Sales | 1,510,208 | 1,564,389 | 1,501,632 |
Other international | |||
Major Customers and Sales By Geographic Areas [Line Items] | |||
Net Sales | $ 1,855,351 | $ 1,915,261 | $ 1,907,164 |
Note 14 Long-lived Assets Infor
Note 14 Long-lived Assets Information by Geographic Segment (Details) - USD ($) $ in Thousands | Oct. 03, 2015 | Sep. 27, 2014 |
By Geographic Areas [Abstract] | ||
Long-lived assets (including assets held for sale) | $ 590,844 | $ 574,654 |
Domestic | ||
By Geographic Areas [Abstract] | ||
Long-lived assets (including assets held for sale) | 149,340 | 147,298 |
Mexico | ||
By Geographic Areas [Abstract] | ||
Long-lived assets (including assets held for sale) | 159,907 | 168,712 |
China | ||
By Geographic Areas [Abstract] | ||
Long-lived assets (including assets held for sale) | 84,426 | 89,380 |
Other international | ||
By Geographic Areas [Abstract] | ||
Long-lived assets (including assets held for sale) | $ 197,171 | $ 169,264 |
Note 15 Share-Based Compensatio
Note 15 Share-Based Compensation Arrangements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Sep. 28, 2013 | |
Share-based Compensation [Line Items] | |||
Share-based Compensation | $ 20,653 | $ 18,789 | $ 17,524 |
Stock Options | |||
Share-based Compensation [Line Items] | |||
Share-based Compensation | 9,894 | 9,820 | 10,506 |
Restricted stock units | |||
Share-based Compensation [Line Items] | |||
Share-based Compensation | 10,759 | 8,969 | 7,018 |
Cost of Sales | |||
Share-based Compensation [Line Items] | |||
Allocated Share-based Compensation Expense | 6,611 | 5,849 | 5,464 |
Selling, general & administrative | |||
Share-based Compensation [Line Items] | |||
Allocated Share-based Compensation Expense | 13,859 | 12,861 | 11,942 |
Research & development | |||
Share-based Compensation [Line Items] | |||
Allocated Share-based Compensation Expense | $ 183 | $ 79 | $ 118 |
Note 15 Fair Value Assumptions
Note 15 Fair Value Assumptions and Methodology (Details) - Stock Option | 12 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Sep. 28, 2013 | |
Share-based Compensation [Line Items] | |||
Volatility | 52.90% | 67.60% | 86.00% |
Risk-free interest rate | 1.60% | 1.50% | 0.70% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected life of options | 5 years | 5 years | 5 years |
Note 15 Stock Options Outstand
Note 15 Stock Options Outstanding Rollforward (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Oct. 03, 2015 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 29, 2012 | |
Options, Outstanding [Roll Forward] | ||||
Beginning outstanding | 8,181 | 9,562 | 11,275 | |
Granted | 567 | 648 | 975 | |
Exercised, cancelled, forfeited, expired | (1,715) | (2,029) | (2,688) | |
Ending outstanding | 7,033 | 8,181 | 9,562 | 11,275 |
Vested and expected to vest | 6,942 | |||
Exercisable | 5,917 | |||
Weighted Average Exercise Price, Options [Abstract] | ||||
Beginning outstanding | $ 12.90 | $ 12.65 | $ 13.15 | |
Granted | 24.48 | 15.89 | 8.83 | |
Exercised, cancelled, forfeited, expired | 16.13 | 12.67 | 13.36 | |
Ending outstanding | 13.05 | $ 12.90 | $ 12.65 | $ 13.15 |
Vested and expected to vest | 12.97 | |||
Exercisable | $ 12.25 | |||
Weighted Average Remaining Contractual Term (Years) [Abstract] | ||||
Outstanding | 4 years 11 months 7 days | 5 years 3 months 20 days | 5 years 11 months 26 days | 6 years 6 months 13 days |
Vested and expected to vest | 4 years 10 months 20 days | |||
Exercisable | 4 years 4 months | |||
Aggregate Intrinsic Value of In the Money Options | ||||
Outstanding | $ 53,938 | $ 93,767 | $ 62,825 | $ 18,548 |
Vested and expected to vest | 53,609 | |||
Exercisable | $ 48,655 |
Note 15 Fair Value and Intrinsi
Note 15 Fair Value and Intrinsic Value (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Sep. 28, 2013 | |
Weighted Average Grant Date Fair Value, intrinsic value of options exercised, fair value of shares vested [Abstract] | |||
Weighted Average Grant Date Fair Value of Stock Options | $ 12.46 | $ 9.14 | $ 5.91 |
Weighted Average Grant Date Fair Value of Restricted Stock Units Granted | $ 23.42 | $ 17.16 | $ 9.42 |
Options Exercises in Period, Intrinsic Value | $ 16.2 | $ 18.3 | $ 12.1 |
RSU Vested in Period, Fair Value | $ 6.7 | $ 9.2 | $ 8.3 |
Note 15 Stock Options Outstandi
Note 15 Stock Options Outstanding (Details) shares in Thousands | 12 Months Ended |
Oct. 03, 2015$ / sharesshares | |
$1.50-$6.89 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding | 794 |
Weighted Average Remaining Contractual Life (Years) | 3 years 6 months 34 days |
Weighted Average Exercise Price ($) | $ / shares | $ 3.55 |
Number Exercisable | 793 |
Weighted Average Exercise Price ($) | $ / shares | $ 3.55 |
$6.90-$8.69 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding | 774 |
Weighted Average Remaining Contractual Life (Years) | 6 years 5 months 12 days |
Weighted Average Exercise Price ($) | $ / shares | $ 8.47 |
Number Exercisable | 513 |
Weighted Average Exercise Price ($) | $ / shares | $ 8.48 |
$8.70-$8.81 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding | 1,350 |
Weighted Average Remaining Contractual Life (Years) | 4 years 9 months 28 days |
Weighted Average Exercise Price ($) | $ / shares | $ 8.76 |
Number Exercisable | 1,323 |
Weighted Average Exercise Price ($) | $ / shares | $ 8.76 |
$8.82-$11.57 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding | 920 |
Weighted Average Remaining Contractual Life (Years) | 5 years 5 months 13 days |
Weighted Average Exercise Price ($) | $ / shares | $ 10.56 |
Number Exercisable | 837 |
Weighted Average Exercise Price ($) | $ / shares | $ 10.54 |
$11.58-$15.76 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding | 959 |
Weighted Average Remaining Contractual Life (Years) | 5 years 6 months 70 days |
Weighted Average Exercise Price ($) | $ / shares | $ 13.86 |
Number Exercisable | 732 |
Weighted Average Exercise Price ($) | $ / shares | $ 13.40 |
$15.77-$21.11 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding | 496 |
Weighted Average Remaining Contractual Life (Years) | 5 years 10 months 18 days |
Weighted Average Exercise Price ($) | $ / shares | $ 16.51 |
Number Exercisable | 468 |
Weighted Average Exercise Price ($) | $ / shares | $ 16.44 |
$21.12 to $28.20 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding | 1,740 |
Weighted Average Remaining Contractual Life (Years) | 4 years 5 days |
Weighted Average Exercise Price ($) | $ / shares | $ 22.62 |
Number Exercisable | 1,251 |
Weighted Average Exercise Price ($) | $ / shares | $ 21.89 |
$1.50-$28.20 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding | 7,033 |
Weighted Average Remaining Contractual Life (Years) | 4 years 10 months 40 days |
Weighted Average Exercise Price ($) | $ / shares | $ 13.05 |
Number Exercisable | 5,917 |
Weighted Average Exercise Price ($) | $ / shares | $ 12.25 |
Note 15 Restricted Stock Rollfo
Note 15 Restricted Stock Rollforward (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Oct. 03, 2015 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 29, 2012 | |
Awards, Nonvested, Number of Shares [Roll Forward] | ||||
Beginning outstanding | 2,341 | 1,768 | 2,230 | |
Granted | 966 | 1,204 | 1,167 | |
Vested/Cancelled | (328) | (631) | (1,629) | |
Ending outstanding | 2,979 | 2,341 | 1,768 | 2,230 |
Expected to vest | 2,739 | |||
Weighted Average Grant Date Fair Value Restricted Stock [Abstract] | ||||
Beginning outstanding | $ 13.29 | $ 10.90 | $ 9.51 | |
Granted | 23.42 | 17.16 | 9.42 | |
Vested/Cancelled | 13.79 | 13.99 | 7.93 | |
Ending outstanding | 16.52 | $ 13.29 | $ 10.90 | $ 9.51 |
Expected to vest | $ 16.28 | |||
Weighted Average Remaining Contractual Term [Abstract] | ||||
Outstanding | 1 year 6 months 8 days | 2 years 4 days | 2 years 7 days | 1 year 29 days |
Expected to vest | 1 year 5 months 8 days | |||
Restricted Stock Unites Non vested Aggregate Intrinsic Value [Abstract] | ||||
Outstanding | $ 59,843 | $ 56,064 | $ 31,052 | $ 21,272 |
Expected to vest | 39,386 | |||
RSU Vested in Period, Fair Value | $ 6,700 | $ 9,200 | $ 8,300 |
Note 15 Unrecognized Stock-base
Note 15 Unrecognized Stock-based Compensation Expense (Details) $ in Millions | 12 Months Ended |
Oct. 03, 2015USD ($) | |
Stock Options | |
Unrecognized Compensation Cost [Line Items] | |
Unrecognized Compensation Expense | $ 7.1 |
Weighted Average Period of Recognition (Years) | 1 year 10 months 29 days |
Restricted stock units | |
Unrecognized Compensation Cost [Line Items] | |
Unrecognized Compensation Expense | $ 20 |
Weighted Average Period of Recognition (Years) | 1 year 6 months 15 days |
Performance Shares | Vesting not probable | |
Unrecognized Compensation Cost [Line Items] | |
Unrecognized Compensation Expense | $ 13.6 |
Note 16 Projected Benefit Oblig
Note 16 Projected Benefit Obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 03, 2015 | Sep. 27, 2014 | Sep. 28, 2013 | ||
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | ||||
Amount Deferred Under Company Sponsored Deferred Compensation Plans | $ 3,700 | $ 1,900 | ||
U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Ending accumulated benefit obligation | 26,441 | 27,351 | $ 26,702 | |
Change in Benefit Obligation [Roll Forward] | ||||
Beginning projected benefit obligation | 27,351 | 26,702 | 29,601 | |
Service cost | 0 | 0 | 0 | |
Interest cost | 819 | 966 | 791 | |
Actuarial (gain) loss | 492 | 1,998 | (2,050) | |
Benefits Paid | (660) | (660) | (674) | |
Other (1) | [1] | (1,561) | (1,655) | (966) |
Ending projected benefit obligation | $ 26,441 | $ 27,351 | 26,702 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||||
Discount Rate | 3.45% | 3.12% | ||
Rate of Compensation Increase | 0.00% | 0.00% | ||
Non-U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Ending accumulated benefit obligation | $ 45,129 | $ 44,363 | 40,072 | |
Change in Benefit Obligation [Roll Forward] | ||||
Beginning projected benefit obligation | 49,053 | 44,590 | 35,171 | |
Service cost | 1,143 | 1,172 | 1,144 | |
Interest cost | 1,498 | 1,771 | 1,721 | |
Actuarial (gain) loss | 4,625 | 4,187 | 3,561 | |
Benefits Paid | (942) | (912) | (1,083) | |
Other (1) | [1] | (6,561) | (1,755) | 4,076 |
Ending projected benefit obligation | $ 48,816 | $ 49,053 | $ 44,590 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||||
Discount Rate | 2.79% | 3.58% | ||
Rate of Compensation Increase | 2.58% | 2.59% | ||
Fair Value, Measurements, Recurring | ||||
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | ||||
Deferred Compensation Plan Assets | $ 15,500 | $ 12,500 | ||
Deferred Compensation Liability | $ 15,500 | $ 12,500 | ||
[1] | Includes miscellaneous items such as settlements, curtailments, foreign exchange rate movements, etc. |
Note 16 Plan Assets (Details)
Note 16 Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Sep. 28, 2013 | |
U.S. | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning fair value | $ 21,472 | $ 20,767 | $ 20,443 |
Actual return | (605) | 3,020 | 1,964 |
Employer contributions | 0 | 0 | 0 |
Benefits paid | (660) | (660) | (674) |
Settlements | (1,561) | (1,655) | (966) |
Foreign currency exchange rate effect | 0 | 0 | 0 |
Ending fair value | 18,646 | 21,472 | 20,767 |
Over (under) Funded Status [Abstract] | |||
Underfunded status | $ (7,795) | $ (5,879) | (5,935) |
U.S. | Cash | |||
Weighted Average Asset Allocations by Asset Category [Abstract] | |||
Target | 0.00% | ||
Actual | 0.00% | 0.00% | |
U.S. | Level 1 | Equity securities | |||
Weighted Average Asset Allocations by Asset Category [Abstract] | |||
Target | 51.00% | ||
Actual | 50.80% | 51.00% | |
U.S. | Level 1 | Debt securities | |||
Weighted Average Asset Allocations by Asset Category [Abstract] | |||
Target | 49.00% | ||
Actual | 49.20% | 49.00% | |
Non-U.S. | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning fair value | $ 29,049 | $ 28,255 | 24,853 |
Actual return | 2,231 | 2,719 | 2,636 |
Employer contributions | 422 | 394 | 589 |
Benefits paid | (942) | (912) | (1,083) |
Settlements | 0 | 0 | 0 |
Foreign currency exchange rate effect | (3,681) | (1,407) | 1,260 |
Ending fair value | 27,079 | 29,049 | 28,255 |
Over (under) Funded Status [Abstract] | |||
Underfunded status | $ (21,737) | $ (20,004) | $ (16,335) |
Non-U.S. | Cash | |||
Weighted Average Asset Allocations by Asset Category [Abstract] | |||
Target | 0.00% | ||
Actual | 6.90% | 4.10% | |
Non-U.S. | Level 1 | Equity securities | |||
Weighted Average Asset Allocations by Asset Category [Abstract] | |||
Target | 20.00% | ||
Actual | 15.40% | 28.60% | |
Non-U.S. | Level 1 | Debt securities | |||
Weighted Average Asset Allocations by Asset Category [Abstract] | |||
Target | 80.00% | ||
Actual | 77.70% | 67.30% |
Note 16 Net Amount Recognized I
Note 16 Net Amount Recognized In Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Oct. 03, 2015 | Sep. 27, 2014 | Sep. 28, 2013 |
U.S. | |||
Components of net amount recognized on consolidated balance sheets: | |||
Current liabilities | $ 0 | $ 0 | $ 0 |
Non-current liabilities | (7,795) | (5,879) | (5,935) |
Net liability recognized on consolidated balance sheets | (7,795) | (5,879) | (5,935) |
Accumulated other comprehensive loss | 6,550 | 5,255 | 6,151 |
Non-U.S. | |||
Components of net amount recognized on consolidated balance sheets: | |||
Current liabilities | (1,067) | (894) | (615) |
Non-current liabilities | (20,670) | (19,110) | (15,720) |
Net liability recognized on consolidated balance sheets | (21,737) | (20,004) | (16,335) |
Accumulated other comprehensive loss | $ 12,958 | $ 11,827 | $ 10,413 |
Note 16 Net Periodic Pension Co
Note 16 Net Periodic Pension Cost (Details) | 12 Months Ended | |
Oct. 03, 2015 | Sep. 27, 2014 | |
U.S. | ||
Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Discount rate | 3.12% | 3.78% |
Expected return on plan assets | 4.50% | 4.50% |
Rate of compensation increases | 0.00% | 0.00% |
Non-U.S. | ||
Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Discount rate | 3.58% | 4.14% |
Expected return on plan assets | 2.90% | 3.50% |
Rate of compensation increases | 2.59% | 3.29% |
Note 16 Future Benefit Payments
Note 16 Future Benefit Payments (Details) $ in Thousands | Oct. 03, 2015USD ($) |
Estimated Future Benefit Payments [Abstract] | |
2,016 | $ 8,244 |
2,017 | 3,744 |
2,018 | 3,906 |
2,019 | 3,927 |
2,020 | 3,767 |
Years 2021 through 2025 | $ 20,971 |
Note 17 Subsequent Event (Detai
Note 17 Subsequent Event (Details) - Subsequent Event [Member] | 1 Months Ended |
Nov. 17, 2015 | |
Subsequent Event [Line Items] | |
Subsequent Event, Date | Oct. 7, 2015 |
Description of Business Acquisition | the Company entered into a definitive agreement to purchase a certain manufacturing operation to support a customer in the industrial end market. As part of this transaction, the Company expects to also enter into a master supply agreement with such customer. This transaction is expected to close in the second quarter of 2016. |
Schedule II Valuation and Qua80
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Sep. 28, 2013 | |
Valuation Allowances and Reserves [Roll Forward] | |||
Provision for (benefit from) doubtful accounts, product returns and other net sales adjustments | $ 3,161 | $ (1,457) | $ (325) |
Allowance for Accounts Receivables | |||
Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 10,278 | 11,735 | 12,032 |
Provision for (benefit from) doubtful accounts, product returns and other net sales adjustments | 3,161 | (1,457) | (325) |
Charges Utilized | 0 | 0 | 28 |
Balance at End of Period | $ 13,439 | $ 10,278 | $ 11,735 |