DEI Document
DEI Document - shares | 6 Months Ended | |
Mar. 31, 2018 | Apr. 23, 2018 | |
Document and entity information [Abstract] | ||
Entity Registrant Name | Sanmina Corporation | |
Entity Central Index Key | 897,723 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --09-29 | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 68,602,374 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Sep. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 405,277 | $ 406,661 |
Accounts receivable, net of allowances of approximately $14,000 in both periods | 1,087,713 | 1,110,334 |
Inventories | 1,122,018 | 1,051,669 |
Prepaid expenses and other current assets | 55,510 | 47,586 |
Total current assets | 2,670,518 | 2,616,250 |
Property, plant and equipment, net | 635,127 | 640,275 |
Deferred tax assets | 354,658 | 476,554 |
Other | 119,052 | 114,284 |
Total assets | 3,779,355 | 3,847,363 |
Current liabilities: | ||
Accounts payable | 1,224,062 | 1,280,106 |
Accrued liabilities | 125,332 | 116,582 |
Accrued payroll and related benefits | 123,549 | 130,939 |
Short-term debt, including current portion of long-term debt | 244,416 | 88,416 |
Total current liabilities | 1,717,359 | 1,616,043 |
Long-term liabilities: | ||
Long-term debt | 393,236 | 391,447 |
Other | 205,770 | 192,189 |
Total long-term liabilities | 599,006 | 583,636 |
Contingencies (Note 6) | ||
Stockholders' equity | 1,462,990 | 1,647,684 |
Total liabilities and stockholders' equity | $ 3,779,355 | $ 3,847,363 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2018 | Sep. 30, 2017 |
Allowance for Doubtful Accounts | $ 14,000 | $ 14,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Mar. 31, 2018 | Apr. 01, 2017 | |
Net sales | $ 1,675,629 | $ 1,682,262 | $ 3,420,429 | $ 3,402,239 |
Cost of sales | 1,560,931 | 1,549,052 | 3,196,265 | 3,136,867 |
Gross profit | 114,698 | 133,210 | 224,164 | 265,372 |
Operating expenses: | ||||
Selling, general and administrative | 65,384 | 62,388 | 128,987 | 127,528 |
Research and development | 8,221 | 8,437 | 15,836 | 16,608 |
Restructuring Expense (Recovery), net | (8,591) | 3,301 | 14,951 | 4,029 |
Other Operating Expense (Recovery), Net | 910 | 918 | 1,828 | 385 |
Total operating expenses | 65,924 | 75,044 | 161,602 | 148,550 |
Operating income | 48,774 | 58,166 | 62,562 | 116,822 |
Interest income | 287 | 238 | 572 | 439 |
Interest expense | (6,826) | (5,486) | (13,040) | (10,753) |
Other income (expense), net | (483) | 3,812 | 2,747 | 5,069 |
Interest and other, net | (7,022) | (1,436) | (9,721) | (5,245) |
Income before income taxes | 41,752 | 56,730 | 52,841 | 111,577 |
Provision for income taxes | 17,120 | 25,013 | 183,119 | 34,996 |
Net income (loss) | $ 24,632 | $ 31,717 | $ (130,278) | $ 76,581 |
Net income (loss) per share: | ||||
Basic | $ 0.35 | $ 0.42 | $ (1.83) | $ 1.03 |
Diluted | $ 0.33 | $ 0.41 | $ (1.83) | $ 0.99 |
Weighted average shares used in computing per share amounts: | ||||
Basic | 70,441 | 74,761 | 71,096 | 74,156 |
Diluted | 73,582 | 77,864 | 71,096 | 77,531 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Mar. 31, 2018 | Apr. 01, 2017 | |
Net income (loss) | $ 24,632 | $ 31,717 | $ (130,278) | $ 76,581 |
Other comprehensive income (loss), net of tax: | ||||
Change in foreign currency translation adjustments | 908 | 1,612 | 554 | (544) |
Derivative financial instruments: | ||||
Change in net unrealized amount | 2,860 | 794 | 1,453 | (1,375) |
Amount reclassified into net income | (2,867) | (460) | (1,342) | 1,466 |
Defined benefit plans: | ||||
Changes in unrecognized net actuarial losses and unrecognized transition costs | (433) | 170 | (693) | 1,230 |
Amortization of actuarial losses and transition costs | 178 | 567 | 499 | 1,166 |
Total other comprehensive loss | 646 | 2,683 | 471 | 1,943 |
Comprehensive income (loss) | $ 25,278 | $ 34,400 | $ (129,807) | $ 78,524 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | ||
Net income (loss) | $ (130,278) | $ 76,581 |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ||
Depreciation and amortization | 59,502 | 58,249 |
Stock-based compensation expense | 18,937 | 19,619 |
Deferred income taxes | 165,098 | 13,744 |
Other, net | (674) | (244) |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | 22,967 | 1,119 |
Inventories | (70,171) | (73,338) |
Prepaid expenses and other assets | (7,487) | 2,827 |
Accounts payable | (34,467) | 45,952 |
Accrued liabilities | 10,696 | (1,861) |
Cash provided by operating activities | 34,123 | 142,648 |
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (71,031) | (55,282) |
Purchases of long-term investments | (2,019) | 0 |
Proceeds from sales of property, plant and equipment | 158 | 3,827 |
Cash used in investing activities | (72,892) | (51,455) |
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES: | ||
Repayments of long-term debt | 0 | (40,000) |
Proceeds from revolving credit facility borrowings | 2,025,300 | 246,600 |
Repayments of revolving credit facility borrowings | (1,869,300) | (271,600) |
Debt issuance costs | (1,701) | 0 |
Net proceeds from stock issuances | 3,439 | 22,691 |
Repurchases of common stock | (120,539) | (13,623) |
Holdback payment for a prior business combination | 0 | (2,262) |
Cash provided by (used in) financing activities | 37,199 | (58,194) |
Effect of exchange rate changes | 186 | 1,240 |
Increase (decrease) in cash and cash equivalents | (1,384) | 34,239 |
Cash and cash equivalents at beginning of period | 406,661 | 398,288 |
Cash and cash equivalents at end of period | 405,277 | 432,527 |
Cash paid during the period for: | ||
Interest, net of capitalized interest | 13,780 | 9,070 |
Income taxes, net of refunds | 15,369 | 9,799 |
Unpaid purchases of property, plant and equipment at the end of period | $ 28,139 | $ 29,499 |
Note 1 Basis of Presentation
Note 1 Basis of Presentation | 6 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Sanmina Corporation (the “Company”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been omitted pursuant to those rules or regulations. The interim condensed consolidated financial statements are unaudited, but reflect all adjustments, consisting primarily of normal recurring adjustments, that are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended September 30, 2017 , included in the Company's 2017 Annual Report on Form 10-K. The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. Results of operations for the second quarter of 2018 are not necessarily indicative of the results that may be expected for other interim periods or for the full fiscal year. The Company operates on a 52 or 53 week year ending on the Saturday nearest September 30. Fiscal 2018 and 2017 are each 52-week years. All references to years relate to fiscal years unless otherwise noted. Recent Accounting Pronouncements Adopted In March 2016, the FASB issued ASU 2016-09 "Improvements to Employee Share-Based Payment Accounting (Topic 718)". This ASU addresses several aspects of accounting for share-based payment award transactions, including: (a) income tax consequences, (b) classification of awards as either equity or liabilities, and (c) classification in the statement of cash flows. The Company adopted this ASU at the beginning of 2018 and recorded an increase to its deferred tax assets of $43 million , with a corresponding increase to retained earnings. This ASU is expected to increase the variability of the Company's provision for income taxes, the effect of which could be material. Additionally, this ASU allows companies to estimate the impact of stock award forfeitures at the grant date and reduce the amount of stock compensation expense recognized over the vesting period of the awards, or to account for forfeitures as they occur. The Company has elected to continue to estimate forfeitures at the grant date. Lastly, this ASU requires the cash effect of excess tax benefits to be classified as an operating cash outflow, as opposed to a financing cash outflow, on the statement of cash flows. Due to the Company’s net operating losses in the U.S., excess tax benefits have no cash impact on the Company's cash flows and therefore there was no impact to the Company’s consolidated statement of cash flows upon adoption of this ASU. 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. There was no impact to the Company upon adoption of this ASU at the beginning of 2018. Recent Accounting Pronouncements Not Yet Adopted In February 2018, the FASB issued ASU 2018-02, "Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income", which allows companies to reclassify stranded tax effects resulting from the Act, from accumulated other comprehensive income to retained earnings. The guidance also requires certain new disclosures regardless of the election. This ASU is effective for the Company at the beginning of fiscal 2020, and earlier adoption is permitted. The Company is currently evaluating when to adopt this ASU, but does not expect the impact of adoption to be significant. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements for Accounting For Hedging Activities", simplifying hedge accounting guidance and improving the financial reporting of hedging relationships by allowing an entity to better align its risk management activities and financial reporting for hedging relationships through changes to both designation and measurement for qualifying hedging relationships and the presentation of hedge results. This standard eliminates the requirement to separately measure and report hedge ineffectiveness, resulting in full recognition of the change in fair value that impacts earnings in the same income statement line item that is used to present the earnings effect of the hedged item. In addition, the guidance allows more flexibility in the requirements to qualify for and maintain hedge accounting. This ASU is effective for the Company at the beginning of fiscal 2020 and early adoption is permitted. The Company is currently evaluating the potential impact of this ASU and when to adopt this ASU. In March 2017, the FASB issued ASU 2017-07, "Compensation-Retirement Benefits (Topic 715)". This ASU requires the service costs component of net periodic pension costs to be presented in the same line item as other compensation costs and all other components of net periodic pension costs to be presented in the income statement as non-operating expenses. This ASU is effective for the Company at the beginning of fiscal 2019 and must be applied retrospectively. A practical expedient permits the use of estimates for applying the retrospective presentation requirements. The Company does not expect the impact of adopting this new accounting standard to be significant. In January 2017, the FASB issued ASU 2017-04, "Intangibles-Goodwill and Other (Topic 350)". This ASU simplifies the test for goodwill impairment by eliminating Step 2 of the goodwill impairment test which requires a hypothetical purchase price allocation to measure goodwill. A goodwill impairment loss will instead be measured at the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill allocated to that reporting unit. This ASU is effective for the Company at the beginning of fiscal 2021, but early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating when to adopt this ASU. In January 2017, the FASB issued ASU 2017-01, "Business Combinations (Topic 805)". This ASU provides guidance to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new standard is effective for the Company at the beginning of fiscal 2019, including interim periods within that reporting period, but early adoption is permitted. In November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows (Topic 230)". This ASU requires that the statement of cash flows explains the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Companies will also be required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. This ASU is effective for the Company at the beginning of fiscal 2019, including interim periods within that annual period. The Company does not expect the impact of adopting this new accounting standard to be significant. In October 2016, the FASB issued ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory (Topic 740)". This ASU simplifies the accounting for income tax consequences of intra-entity transfers of assets other than inventory by requiring recognition of current and deferred income tax consequences when such transfers occur. The new standard is effective for the Company at the beginning of fiscal 2019, including interim periods within that annual period. The Company does not expect the impact of adopting this new accounting standard to be significant. In February 2016, the FASB issued ASU 2016-02, "Leases: Amendments to the FASB Accounting Standards Codification (Topic 842)". This ASU requires the Company to recognize on the balance sheet the assets and liabilities for the rights and obligations created by leases with terms of more than twelve months. This ASU also requires disclosures enabling the users of financial statements to understand the amount, timing and uncertainty of cash flows arising from leases. The new standard is effective for the Company at the beginning of fiscal 2020, including interim periods within that reporting period. In addition, the FASB provided a practical expedient transition method to adopt the new lease requirements by allowing entities to initially apply requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption that would enable the Company to not provide comparative period financial statements. Instead, the Company would apply the transition provisions of the leases standard at its effective date. The Company expects the impact of adopting this new accounting standard to be material to its consolidated balance sheet, but is still evaluating the impact to its consolidated statement of income. 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 standard is effective for the Company in fiscal 2019, including interim periods within that reporting period, using one of two prescribed transition methods. The Company has determined that the new standard will result in a change to the timing of revenue recognition for a significant portion of the Company's revenue, whereby revenue will be recognized "over time" as opposed to at a "point in time" upon physical delivery. The new standard could have a material impact to the Company's consolidated financial statements upon initial adoption, but the Company does not expect the effect of the new standard to materially impact its revenue or gross profit on a rollover basis in periods after adoption. The Company has elected to adopt the new standard using the modified retrospective method, which does not require prior periods to be restated to conform to the requirements of the new standard. |
Note 2 Inventories
Note 2 Inventories | 6 Months Ended |
Mar. 31, 2018 | |
Inventory, Net [Abstract] | |
Inventory Disclosure [Text Block] | Inventories Components of inventories were as follows: As of March 31, September 30, (In thousands) Raw materials $ 902,469 $ 834,694 Work-in-process 99,897 106,914 Finished goods 119,652 110,061 Total $ 1,122,018 $ 1,051,669 |
Note 3 Financial Instruments
Note 3 Financial Instruments | 6 Months Ended |
Mar. 31, 2018 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Derivatives and Fair Value [Text Block] | Financial Instruments Fair Value Measurements Fair Value of Financial Instruments The fair values of cash equivalents (generally 10% or less of cash and cash equivalents), accounts receivable, accounts payable and short-term debt approximate carrying value due to the short term duration of these instruments. Fair Value Option for Long-term Debt As of March 31, 2018 , the fair value of the Company's long-term debt, as estimated based primarily on quoted prices (Level 2 input), was approximately 1% higher than its carrying amount. The Company has elected not to record its long-term debt instruments at fair value. Assets and Liabilities Measured at Fair Value on a Recurring Basis The Company's primary financial assets and financial liabilities measured at fair value on a recurring basis are deferred compensation plan assets and defined benefit plan assets, which are both measured using Level 1 inputs. Defined benefit plan assets are measured at fair value only in the fourth quarter of each year. Other financial assets and financial liabilities measured at fair value on a recurring basis include foreign exchange contracts and contingent consideration, neither of which were material as of March 31, 2018 or September 30, 2017 . Offsetting Derivative Assets and Liabilities The Company has entered into master netting arrangements with each of its derivative counterparties that allows net settlement of derivative assets and liabilities under certain conditions, such as multiple transactions with the same currency maturing on the same date. The Company presents its derivative assets and derivative liabilities on a gross basis on the unaudited condensed consolidated balance sheets. The amount that the Company had the right to offset under these netting arrangements was not material as of March 31, 2018 or September 30, 2017 . Other non-financial assets, such as intangible assets, goodwill and other long-lived assets, are measured at fair value as of the date such assets are acquired or in the period an impairment is recorded. Derivative Instruments The Company is exposed to certain risks related to its ongoing business operations. The primary risk managed by using derivative instruments is foreign currency exchange risk. Forward contracts on various foreign currencies are used to manage foreign currency risk associated with forecasted foreign currency transactions and certain monetary assets and liabilities denominated in non-functional currencies. The Company's primary foreign currency cash flows are in certain Asian and European countries, Brazil, Israel and Mexico. The Company had the following outstanding foreign currency forward contracts that were entered into to hedge foreign currency exposures: As of March 31, September 30, Derivatives Designated as Accounting Hedges: Notional amount (in thousands) $ 102,102 $ 105,523 Number of contracts 55 58 Derivatives Not Designated as Accounting Hedges: Notional amount (in thousands) $ 291,469 $ 302,944 Number of contracts 44 46 The Company utilizes foreign currency forward contracts to hedge certain operational (“cash flow”) exposures resulting from changes in foreign currency exchange rates. Such exposures generally result from (1) forecasted non-functional currency sales (2) forecasted non-functional currency materials, labor, overhead and other expenses and (3) anticipated capital expenditures denominated in a currency other than the functional currency of the entity making the expenditures. These contracts are designated as cash flow hedges for accounting purposes and are generally one-to-two months in duration but, by policy, may be up to twelve months in duration. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income ("AOCI"), a component of equity, and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The amount of gain (loss) recognized in Other Comprehensive Income ("OCI") on derivative instruments (effective portion), the amount of gain (loss) reclassified from AOCI into income (effective portion) and the amount of ineffectiveness were not material for any period presented herein. The Company enters into short-term foreign currency forward contracts to hedge currency exposures associated with certain monetary assets and liabilities denominated in non-functional currencies. These contracts have maturities of up to two months and are not designated as accounting hedges. Accordingly, these contracts are marked-to-market at the end of each period with unrealized gains and losses recorded in other income, net, in the unaudited condensed consolidated statements of operations. The amount of gains (losses) associated with these forward contracts were not material for any period presented herein. From an economic perspective, the objective of the Company's hedging program is for gains and losses on forward contracts to substantially offset gains and losses on the underlying hedged items. In addition to the contracts disclosed in the table above, the Company has numerous contracts that have been closed from an economic and financial accounting perspective and will settle early in the first month of the following quarter. Since these offsetting contracts do not expose the Company to risk of fluctuations in exchange rates, these contracts have been excluded from the above table. In addition to the short-term contracts discussed above, the Company has a foreign currency forward contract that matures in 2020 and was entered into as a hedge of foreign currency exposure associated with a long-term promissory note issued in connection with a previous business combination. |
Note 4 Debt
Note 4 Debt | 6 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt Long-term debt consisted of the following: As of March 31, September 30, (In thousands) Senior secured notes due 2019 375,000 375,000 Non-interest bearing promissory notes 21,652 19,863 Total long-term debt 396,652 394,863 Less: Current portion of non-interest bearing promissory notes 3,416 3,416 Long-term debt $ 393,236 $ 391,447 Short-term debt The Company previously had a $375 million secured revolving credit facility (the "Cash Flow Revolver") that was originally set to expire on May 20, 2020 . On February 1, 2018 , the Company entered into an amended Cash Flow Revolver (the "Amended Cash Flow Revolver") that increased the amount available under the facility to $500 million and extended the term to February 1, 2023 provided the Company’s available liquidity is at least equal to the outstanding balance of the Company’s senior secured notes due 2019 during the six month period prior to the maturity date of such notes, which is June 1, 2019 . Subject to satisfaction of certain conditions, including obtaining additional commitments from existing and/or new lenders, the Company may increase the revolver commitments under the Amended Cash Flow Revolver by up to an additional $200 million and/or add new term loan commitments of up to $375 million . The Company and certain subsidiary guarantors’ obligations under the Amended Cash Flow Revolver are secured by property of the Company and such guarantors, including, but not limited to cash, accounts receivables, inventory and the shares of the Company's subsidiaries, subject to limited exceptions. The Amended Cash Flow Revolver requires the Company to comply with a minimum consolidated interest coverage ratio, measured at the end of each fiscal quarter, and at all times a maximum consolidated leverage ratio. The Amended Cash Flow Revolver contains customary affirmative covenants, including covenants regarding the payment of taxes and other obligations, maintenance of insurance, reporting requirements and compliance with applicable laws and regulations. Further, the Amended Cash Flow Revolver contains customary negative covenants limiting the ability of the Company and its subsidiaries, among other things, to incur debt, grant liens, make investments, make acquisitions, make certain restricted payments, repurchase its shares and sell assets, subject to certain exceptions. As of March 31, 2018 , there were $241 million of borrowings and $9 million of letters of credit outstanding under the Amended Cash Flow Revolver. As of March 31, 2018 , certain foreign subsidiaries of the Company had a total of $69 million of short-term borrowing facilities, under which no borrowings were outstanding. Debt covenants The Company's Amended Cash Flow Revolver requires the Company to comply with certain financial covenants. In addition, the Company's debt agreements contain a number of restrictive covenants, including restrictions on incurring additional debt, making investments and other restricted payments, selling assets, paying dividends and redeeming or repurchasing capital stock and debt, subject to certain exceptions. The Company was in compliance with these covenants as of March 31, 2018 . |
Note 5 Accounts Receivable Sale
Note 5 Accounts Receivable Sale Program | 6 Months Ended |
Mar. 31, 2018 | |
Transfers and Servicing [Abstract] | |
Transfers and Servicing of Financial Assets [Text Block] | Accounts Receivable Sale Program During the second quarter of 2018, the Company entered into a Revolving Master Receivable Purchase Agreement (the “RPA”) with a certain third-party banking institution for the sale of trade receivables generated from sales of the Company's U.S. entities to certain customers. A maximum of $140 million of sold receivables can be outstanding at any point in time under this program. Trade receivables sold pursuant to the RPA are serviced by the Company. In addition to the RPA, the Company has the option to participate in trade receivables sales programs that have been implemented by certain of the Company's customers. The Company does not service trade receivables sold under these other programs. Under each of the programs noted above, the Company sells its entire interest in a trade receivable for 100% of face value, less a discount. For the six months ended March 31, 2018 and April 1, 2017 , the Company sold $337 million and $216 million , respectively, of accounts receivable under these programs. Upon sale, these receivables are removed from the condensed consolidated balance sheets and cash received is presented as cash provided by operating activities in the condensed consolidated statement of cash flows. Discounts on sold receivables were not material for any period presented. As of March 31, 2018 and September 30, 2017 , $165 million and $140 million , respectively, of sold accounts receivable remained outstanding and had not yet been collected. |
Note 6 Commitments and Continge
Note 6 Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Contingencies From time to time, the Company is a party to litigation, claims and other contingencies, including environmental and employee matters and examinations and investigations by governmental agencies, which arise in the ordinary course of business. The Company records a contingent liability when it is probable that a loss has been incurred and the amount of loss is reasonably estimable in accordance with ASC Topic 450, Contingencies, or other applicable accounting standards. As of March 31, 2018 and September 30, 2017 , the Company had reserves of $38 million and $36 million , respectively, for environmental matters, warranty, litigation and other contingencies (excluding reserves for uncertain tax positions) which the Company believes are adequate. However, there can be no assurance that the Company's reserves will be sufficient to settle these contingencies. Such reserves are included in accrued liabilities and other long-term liabilities on the unaudited condensed consolidated balance sheets. In January 2018 , the Company received a notice of intent from a foreign government agency to bring a claim seeking up to $23 million asserting that the Company had been out of compliance from April 2015 through September 2016 with certain requirements of the Company’s exemption from goods and services tax on imported goods. Such claim, if formally made, could seek payment for allegedly unpaid goods and services tax. No formal claim has been brought to date. The Company believes it has good faith arguments in defense of its actions and has provided these arguments to the government agency. The Company cannot, at this time, determine the outcome of this matter and has not provided a reserve for this matter as of the end of the second quarter of 2018 . Legal Proceedings Environmental Matters The Company is subject to various federal, state, local and foreign laws and regulations and administrative orders concerning environmental protection, including those addressing the discharge of pollutants into the environment, the management and disposal of hazardous substances, the cleanup of contaminated sites, the materials used in products, and the recycling, treatment and disposal of hazardous waste. As of March 31, 2018 , the Company had been named in a lawsuit and several administrative orders alleging certain of its current and former sites contributed to groundwater contamination. One such order requires the Company's Canadian subsidiary to remediate certain environmental contamination at a site owned by the subsidiary between 1999 and 2006. As of March 31, 2018 , the Company believes it has reserved a sufficient amount to satisfy currently anticipated future investigation and remediation costs at this site. Another such order demands that the Company and other alleged defendants remediate groundwater contamination at two landfills located in Northern California to which the Company may have sent wastewater in the past. The Company continues to investigate the allegations contained in this order and has reserved its estimated exposure for this matter as of March 31, 2018 . However, there can be no assurance that the Company's reserve will ultimately be sufficient. In June 2008, the Company was named by the Orange County Water District in a suit alleging that its actions contributed to polluted groundwater managed by the plaintiff. The complaint seeks recovery of compensatory and other damages, as well as declaratory relief, for the payment of costs necessary to investigate, monitor, remediate, abate and contain contamination of groundwater within the plaintiff’s control. In April 2013, all claims against the Company were dismissed. The plaintiff appealed this dismissal and the appeals court reversed the judgment in August 2017. In November 2017, the California Supreme Court denied the Company’s petition to review this decision and in December 2017 the Court of Appeal remanded the case back to the Superior Court for further proceedings . A trial date has not yet been set. The Company intends to contest the plaintiff’s claims vigorously. Other Matters Two of the Company’s subsidiaries in Brazil are parties to a number of administrative and judicial proceedings for claims alleging that these subsidiaries failed to comply with certain bookkeeping and tax rules for certain periods between 2001 and 2011. These claims seek payment of social fund contributions and income and excise taxes allegedly owed by the subsidiaries, as well as fines. The subsidiaries believe they have meritorious positions in these matters and intend to continue to contest the claims. Other Contingencies One of the Company's most significant risks is the ultimate realization of accounts receivable and customer inventory exposures. This risk is partially mitigated by ongoing credit evaluations of, and frequent contact with, the Company's customers, especially its most significant customers, thus enabling the Company to monitor changes in business operations and respond accordingly. Customer bankruptcies also entail the risk of potential recovery by the bankruptcy estate of amounts previously paid to the Company that are deemed a preference under bankruptcy laws. |
Note 7 Restructuring
Note 7 Restructuring | 6 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Restructuring Restructuring Plan - 2018 In the first quarter of 2018, the Company adopted a consolidated restructuring plan to address the closure and/or relocation of three of its manufacturing facilities. The following table is a summary of restructuring costs associated with this plan: Restructuring Expense Estimated Costs to Implement Three Months Ended Six Months Ended (In thousands) Severance costs (approximately 2,900 employees) $ 27,700 $ 1,191 $ 24,492 Other exit costs (will be recognized as incurred) 7,300 274 274 Total 35,000 1,465 24,766 Severance reimbursement (10,000 ) (10,000 ) (10,000 ) Total - Q1 FY18 plan 25,000 (8,535 ) 14,766 Costs incurred for other plans — (56 ) 185 Total - all plans $ 25,000 $ (8,591 ) $ 14,951 Actions under the consolidated restructuring plan began in the first quarter of 2018 and are expected to occur through calendar 2019. Cash payments of severance and other costs began in the second quarter of 2018 and will occur through the end of calendar 2019. As of March 31, 2018 , accrued restructuring costs of $ 12 million was recorded in accrued liabilities and $9 million was recorded in other long-term liabilities on the condensed consolidated balance sheet. In connection with this plan, the Company entered into a contractual agreement with a third party pursuant to which up to $10.0 million of severance and retention costs incurred by the Company will be reimbursed. The Company recorded this amount as a reduction of restructuring costs in the second quarter of 2018. Of the $25 million expected restructuring costs, $14.6 million is attributable to the Company's IMS segment and $10.4 million is attributable to the Company's CPS segment. Of the $14.8 million of restructuring costs recorded in the first half of 2018, $10.4 million is attributable to the Company's IMS segment and $4.4 million is attributable to the Company's CPS segment. |
Note 8 Income Tax
Note 8 Income Tax | 6 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Tax The Company estimates its annual effective income tax rate at the end of each quarterly period. The estimate takes into account the geographic mix of expected pre-tax income (loss), expected total annual pre-tax income (loss), enacted changes in tax laws, implementation of tax planning strategies and possible outcomes of audits and other uncertain tax positions. To the extent there are fluctuations in any of these variables during a period, the provision for income taxes may vary. On December 22, 2017, the U.S. Tax Cuts and Jobs Act (H.R. 1) (the “Tax Act”) was enacted into law. In accordance with ASC 740, Income Taxes , the Company is required to recognize the effect of the Tax Act in the period of enactment, which was the Company’s first quarter of fiscal 2018 that ended on December 30, 2017. The many changes in the Tax Act include a permanent reduction in the maximum federal corporate income tax rate from 35% to 21% effective as of January 1, 2018. The statutory federal income tax rate applicable for the Company's fiscal year ending September 29, 2018 is expected to be 24.5% based on a fiscal year blended rate calculation. Because of this reduction in rate, the Company was required to revalue its U.S. deferred tax assets and liabilities to the new rate in the Company's first quarter of 2018. The Tax Act also requires a mandatory deemed repatriation of undistributed earnings and profits, at the rate of either 15.5% for cash or 8% for non-liquid assets. As of the end of the second quarter of 2018, the Company has made reasonable estimates of the impact of the Tax Act and, in accordance with the SEC's Staff Accounting Bulletin No. 118, has recorded a provisional net income tax expense of approximately $162 million , which is comprised of $176 million for remeasurement of the Company’s U.S deferred tax assets, zero for the mandatory deemed repatriation of undistributed earnings and profits, and a tax benefit of $14 million for the conversion to a territorial system. The Company’s actual remeasurement of deferred tax assets and liabilities may vary from the provisional amount because the Company's final analysis will be based on activities through the remainder of the fiscal year. During the remainder of 2018, the Company will continue to analyze the full effects of the Tax Act on the Company's financial statements. The final impact of the Tax Act may differ from the Company's estimate due to, among other things, additional regulatory guidance that may be issued, changes in the Company’s interpretations and assumptions, finalization of calculations of the impact of the Tax Act on foreign tax provisions and actions the Company may take as a result of the Tax Act, including the on-going evaluation of the Company's indefinite reinvestment assertions regarding undistributed earnings and profits. Although the Company currently does not expect to be impacted by the mandatory deemed repatriation provision of the Tax Act, due to the complexity of the Company’s international tax and legal entity structure, the Company will continue to analyze the earnings and profits and tax pools of the Company’s foreign subsidiaries to reasonably estimate the effects of the mandatory deemed repatriation provision of the Tax Act over the one-year measurement period. The Tax Act also includes provisions for Global Intangible Low-Taxed Income (“GILTI”), which imposes taxes on foreign income in excess of a deemed return on tangible assets of foreign corporations. These new provisions are effective for the Company in fiscal year 2019. This income will effectively be taxed at a 10.5% tax rate. Because of the complexity of the new provisions, the Company is continuing to evaluate how the provisions will be accounted for under U.S. generally accepted accounting principles whereby companies are allowed to make an accounting policy election of either (i) accounting for GILTI as a component of income tax expense in the period in which the Company is subject to the rules (the “period cost method”), or (ii) accounting for GILTI in the Company’s measurement of deferred taxes (the “deferred method”). Currently, the Company has not elected a method and will only do so after completing its analysis of the GILTI provisions of the Tax Act. The Company’s election method will depend, in part, on analyzing the Company’s global income to determine whether the Company expects to have future U.S. inclusions in its taxable income related to GILTI and, if so, the impact that is expected. However, at this time, regardless of the Company’s election method, the Company does not expect the impact of GILTI to be material to the Company’s tax rate or to incur additional cash taxes as a result of GILTI. The Company's provision for income taxes for the three months ended March 31, 2018 and April 1, 2017 was $17 million ( 41% of income before taxes) and $25 million ( 44% of income before taxes), respectively, and $183.1 million ( 347% of income before taxes) and $35.0 million ( 31% of income before taxes) for the six months ended March 31, 2018 and April 1, 2017 , respectively. Income tax expense for 2018 on a year-to-date basis was primarily attributable to the estimated impact of the Tax Act, which resulted in a net increase to income tax expense of approximately $162 million. During the first quarter of 2017, the Company recorded a discrete tax benefit resulting from the merger of two foreign entities, the surviving entity of which was, and continues to be, included in the Company’s U.S. federal consolidated tax group. This restructuring allowed the Company to recognize a U.S. deferred tax asset to reflect the federal deductibility of a foreign uncertain tax position that became recognizable upon the merger of the subsidiaries. |
Note 9 Stockholders' Equity
Note 9 Stockholders' Equity | 6 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Stockholder's Equity Accumulated Other Comprehensive Income Accumulated other comprehensive income, net of tax as applicable, consisted of the following: As of March 31, September 30, (In thousands) Foreign currency translation adjustments $ 91,506 $ 90,952 Unrealized holding losses on derivative financial instruments (101 ) (212 ) Unrecognized net actuarial losses and transition costs for benefit plans (14,140 ) (13,946 ) Total $ 77,265 $ 76,794 Stock Repurchase Program During the six months ended March 31, 2018 , the Company repurchased 3.8 million shares of its common stock for $109 million . The Company did not repurchase any of its common stock in the open market during the six months ended April 1, 2017 . As of March 31, 2018 , subject to limitations on stock repurchases contained in certain of the Company's credit and debt agreements, an aggregate of $144 million remains available under repurchase programs authorized by the Board of Directors. In addition to the repurchases discussed above, the Company repurchased 304,000 and 453,000 shares of its common stock during the six months ended March 31, 2018 and April 1, 2017 , respectively, in settlement of employee tax withholding obligations due upon the vesting of restricted stock units. The Company paid $11 million and $14 million , respectively, in conjunction with these repurchases. |
Note 10 Business Segment, Geogr
Note 10 Business Segment, Geographic and Customer Information | 6 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Business Segment, Geographic and Customer Information ASC Topic 280, Segment Reporting , establishes standards for reporting information about operating segments, products and services, geographic areas of operations and major customers. Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker or decision making group in deciding how to allocate resources and in assessing performance. The Company's operations are managed as two businesses: Integrated Manufacturing Solutions (IMS) and Components, Products and Services (CPS). The Company's CPS business consists of multiple operating segments which do not meet the quantitative threshold for being presented as reportable segments. Therefore, financial information for these operating segments is presented in a single category entitled "CPS" and the Company has only one reportable segment - IMS. The following table presents revenue and a measure of segment gross profit used by management to allocate resources and assess performance of operating segments: Three Months Ended Six Months Ended March 31, April 1, March 31, April 1, (In thousands) Gross sales: IMS $ 1,374,581 $ 1,382,437 $ 2,803,428 $ 2,796,707 CPS 345,732 349,637 702,461 700,711 Intersegment revenue (44,684 ) (49,812 ) (85,460 ) (95,179 ) Net sales $ 1,675,629 $ 1,682,262 $ 3,420,429 $ 3,402,239 Gross profit: IMS $ 85,916 $ 100,644 $ 168,533 $ 203,281 CPS 31,372 35,503 61,238 68,792 Total 117,288 136,147 229,771 272,073 Unallocated items (1) (2,590 ) (2,937 ) (5,607 ) (6,701 ) Total $ 114,698 $ 133,210 $ 224,164 $ 265,372 (1) For purposes of evaluating segment performance, management excludes certain items from its measure of gross profit. These items consist of stock-based compensation expense, amortization of intangible assets, charges or credits resulting from distressed customers and acquisition-related items. Net sales by geographic segment, determined based on the country in which a product is manufactured, were as follows: Three Months Ended Six Months Ended March 31, April 1, March 31, April 1, (In thousands) Net sales United States $ 321,337 $ 303,514 $ 636,145 $ 603,390 Mexico 494,760 469,572 983,994 943,732 China 265,913 313,740 581,005 635,479 Malaysia 150,638 194,467 336,350 405,658 Other international 442,981 400,969 882,935 813,980 Total $ 1,675,629 $ 1,682,262 $ 3,420,429 $ 3,402,239 Percentage of net sales represented by ten largest customers 53 % 54 % 54 % 53 % Number of customers representing 10% or more of net sales 1 2 2 2 |
Note 11 Earnings Per Share
Note 11 Earnings Per Share | 6 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Earnings Per Share Basic and diluted per share amounts are calculated by dividing net income by the weighted average number of shares of common stock outstanding during the period, as follows: Three Months Ended Six Months Ended March 31, April 1, March 31, April 1, (In thousands, except per share data) Numerator: Net income (loss) $ 24,632 $ 31,717 $ (130,278 ) $ 76,581 Denominator: Weighted average common shares outstanding 70,441 74,761 71,096 74,156 Effect of dilutive stock options and restricted stock units 3,141 3,103 — 3,375 Denominator for diluted earnings per share 73,582 77,864 71,096 77,531 Net income (loss) per share: Basic $ 0.35 $ 0.42 $ (1.83 ) $ 1.03 Diluted $ 0.33 $ 0.41 $ (1.83 ) $ 0.99 The Company reported a net loss of $130.3 million for the first half of 2018 and, as such, 3.5 million potentially dilutive securities have been excluded from the calculation of diluted earnings per share for the six months ended March 31, 2018 . |
Note 12 Stock-Based Compensatio
Note 12 Stock-Based Compensation | 6 Months Ended |
Mar. 31, 2018 | |
Share-based Compensation [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Stock-Based Compensation Stock-based compensation expense was attributable to: Three Months Ended Six Months Ended March 31, April 1, March 31, April 1, (In thousands) Stock options $ 2,566 $ 380 $ 3,743 $ 930 Restricted stock units, including performance based awards 7,729 7,262 15,194 18,689 Total $ 10,295 $ 7,642 $ 18,937 $ 19,619 Stock-based compensation expense was recognized as follows: Three Months Ended Six Months Ended March 31, April 1, March 31, April 1, (In thousands) Cost of sales $ 1,851 $ 2,035 $ 4,299 $ 4,899 Selling, general and administrative 8,388 5,376 14,552 14,216 Research and development 56 231 86 504 Total $ 10,295 $ 7,642 $ 18,937 $ 19,619 During the second quarter of 2018, the Company's stockholders approved the reservation of an additional 1.8 million shares of common stock for future issuance under the Company's 2009 Incentive Plan. As of March 31, 2018 , an aggregate of 10.7 million shares were authorized for future issuance under the Company's stock plans, of which 6.8 million of such shares were issuable upon exercise of outstanding options and delivery of shares upon vesting of restricted stock units and 3.9 million shares of common stock were available for future grant. Stock Options 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 30, 2017 3,568 11.83 3.82 90,327 Granted 200 38.45 Exercised/Cancelled/Forfeited/Expired (337 ) 11.41 Outstanding as of March 31, 2018 3,431 13.42 3.86 53,074 Vested and expected to vest as of March 31, 2018 3,429 13.42 3.86 53,059 Exercisable as of March 31, 2018 3,234 12.11 3.55 52,867 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 such options at the Company's closing stock price on the date indicated. Restricted Stock Units Activity with respect to the Company's restricted stock units was as follows: Number of Shares Weighted- Average Grant Date Fair Value ($) Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value ($) (In thousands) (In thousands) Outstanding as of September 30, 2017 3,359 27.56 1.51 124,800 Granted 793 34.85 Vested/Forfeited/Cancelled (792 ) 26.30 Outstanding as of March 31, 2018 3,360 29.58 1.44 95,080 Expected to vest as of March 31, 2018 2,574 28.72 1.40 72,842 As of March 31, 2018 , unrecognized compensation expense of $43 million is expected to be recognized over a weighted average period of 1.5 years . Additionally, as of March 31, 2018 , unrecognized compensation expense related to performance-based restricted stock units for which achievement of the performance criteria is not currently considered probable was $20 million . |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting [Text Block] | The accompanying unaudited condensed consolidated financial statements of Sanmina Corporation (the “Company”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been omitted pursuant to those rules or regulations. The interim condensed consolidated financial statements are unaudited, but reflect all adjustments, consisting primarily of normal recurring adjustments, that are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended September 30, 2017 , included in the Company's 2017 Annual Report on Form 10-K. |
Use of Estimates, Policy [Policy Text Block] | The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. Results of operations for the second quarter of 2018 are not necessarily indicative of the results that may be expected for other interim periods or for the full fiscal year. |
Fiscal Period, Policy [Policy Text Block] | The Company operates on a 52 or 53 week year ending on the Saturday nearest September 30. Fiscal 2018 and 2017 are each 52-week years. All references to years relate to fiscal years unless otherwise noted. |
New Accounting Pronouncements, Policy [Text Block] | Recent Accounting Pronouncements Adopted In March 2016, the FASB issued ASU 2016-09 "Improvements to Employee Share-Based Payment Accounting (Topic 718)". This ASU addresses several aspects of accounting for share-based payment award transactions, including: (a) income tax consequences, (b) classification of awards as either equity or liabilities, and (c) classification in the statement of cash flows. The Company adopted this ASU at the beginning of 2018 and recorded an increase to its deferred tax assets of $43 million , with a corresponding increase to retained earnings. This ASU is expected to increase the variability of the Company's provision for income taxes, the effect of which could be material. Additionally, this ASU allows companies to estimate the impact of stock award forfeitures at the grant date and reduce the amount of stock compensation expense recognized over the vesting period of the awards, or to account for forfeitures as they occur. The Company has elected to continue to estimate forfeitures at the grant date. Lastly, this ASU requires the cash effect of excess tax benefits to be classified as an operating cash outflow, as opposed to a financing cash outflow, on the statement of cash flows. Due to the Company’s net operating losses in the U.S., excess tax benefits have no cash impact on the Company's cash flows and therefore there was no impact to the Company’s consolidated statement of cash flows upon adoption of this ASU. 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. There was no impact to the Company upon adoption of this ASU at the beginning of 2018. Recent Accounting Pronouncements Not Yet Adopted In February 2018, the FASB issued ASU 2018-02, "Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income", which allows companies to reclassify stranded tax effects resulting from the Act, from accumulated other comprehensive income to retained earnings. The guidance also requires certain new disclosures regardless of the election. This ASU is effective for the Company at the beginning of fiscal 2020, and earlier adoption is permitted. The Company is currently evaluating when to adopt this ASU, but does not expect the impact of adoption to be significant. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements for Accounting For Hedging Activities", simplifying hedge accounting guidance and improving the financial reporting of hedging relationships by allowing an entity to better align its risk management activities and financial reporting for hedging relationships through changes to both designation and measurement for qualifying hedging relationships and the presentation of hedge results. This standard eliminates the requirement to separately measure and report hedge ineffectiveness, resulting in full recognition of the change in fair value that impacts earnings in the same income statement line item that is used to present the earnings effect of the hedged item. In addition, the guidance allows more flexibility in the requirements to qualify for and maintain hedge accounting. This ASU is effective for the Company at the beginning of fiscal 2020 and early adoption is permitted. The Company is currently evaluating the potential impact of this ASU and when to adopt this ASU. In March 2017, the FASB issued ASU 2017-07, "Compensation-Retirement Benefits (Topic 715)". This ASU requires the service costs component of net periodic pension costs to be presented in the same line item as other compensation costs and all other components of net periodic pension costs to be presented in the income statement as non-operating expenses. This ASU is effective for the Company at the beginning of fiscal 2019 and must be applied retrospectively. A practical expedient permits the use of estimates for applying the retrospective presentation requirements. The Company does not expect the impact of adopting this new accounting standard to be significant. In January 2017, the FASB issued ASU 2017-04, "Intangibles-Goodwill and Other (Topic 350)". This ASU simplifies the test for goodwill impairment by eliminating Step 2 of the goodwill impairment test which requires a hypothetical purchase price allocation to measure goodwill. A goodwill impairment loss will instead be measured at the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill allocated to that reporting unit. This ASU is effective for the Company at the beginning of fiscal 2021, but early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating when to adopt this ASU. In January 2017, the FASB issued ASU 2017-01, "Business Combinations (Topic 805)". This ASU provides guidance to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new standard is effective for the Company at the beginning of fiscal 2019, including interim periods within that reporting period, but early adoption is permitted. In November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows (Topic 230)". This ASU requires that the statement of cash flows explains the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Companies will also be required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. This ASU is effective for the Company at the beginning of fiscal 2019, including interim periods within that annual period. The Company does not expect the impact of adopting this new accounting standard to be significant. In October 2016, the FASB issued ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory (Topic 740)". This ASU simplifies the accounting for income tax consequences of intra-entity transfers of assets other than inventory by requiring recognition of current and deferred income tax consequences when such transfers occur. The new standard is effective for the Company at the beginning of fiscal 2019, including interim periods within that annual period. The Company does not expect the impact of adopting this new accounting standard to be significant. In February 2016, the FASB issued ASU 2016-02, "Leases: Amendments to the FASB Accounting Standards Codification (Topic 842)". This ASU requires the Company to recognize on the balance sheet the assets and liabilities for the rights and obligations created by leases with terms of more than twelve months. This ASU also requires disclosures enabling the users of financial statements to understand the amount, timing and uncertainty of cash flows arising from leases. The new standard is effective for the Company at the beginning of fiscal 2020, including interim periods within that reporting period. In addition, the FASB provided a practical expedient transition method to adopt the new lease requirements by allowing entities to initially apply requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption that would enable the Company to not provide comparative period financial statements. Instead, the Company would apply the transition provisions of the leases standard at its effective date. The Company expects the impact of adopting this new accounting standard to be material to its consolidated balance sheet, but is still evaluating the impact to its consolidated statement of income. 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 standard is effective for the Company in fiscal 2019, including interim periods within that reporting period, using one of two prescribed transition methods. The Company has determined that the new standard will result in a change to the timing of revenue recognition for a significant portion of the Company's revenue, whereby revenue will be recognized "over time" as opposed to at a "point in time" upon physical delivery. The new standard could have a material impact to the Company's consolidated financial statements upon initial adoption, but the Company does not expect the effect of the new standard to materially impact its revenue or gross profit on a rollover basis in periods after adoption. The Company has elected to adopt the new standard using the modified retrospective method, which does not require prior periods to be restated to conform to the requirements of the new standard. |
Note 2 Inventories (Tables)
Note 2 Inventories (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Inventory, Net [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | As of March 31, September 30, (In thousands) Raw materials $ 902,469 $ 834,694 Work-in-process 99,897 106,914 Finished goods 119,652 110,061 Total $ 1,122,018 $ 1,051,669 |
Note 3 Financial Instruments (T
Note 3 Financial Instruments (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | As of March 31, September 30, Derivatives Designated as Accounting Hedges: Notional amount (in thousands) $ 102,102 $ 105,523 Number of contracts 55 58 Derivatives Not Designated as Accounting Hedges: Notional amount (in thousands) $ 291,469 $ 302,944 Number of contracts 44 46 |
Note 4 Debt (Tables)
Note 4 Debt (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | As of March 31, September 30, (In thousands) Senior secured notes due 2019 375,000 375,000 Non-interest bearing promissory notes 21,652 19,863 Total long-term debt 396,652 394,863 Less: Current portion of non-interest bearing promissory notes 3,416 3,416 Long-term debt $ 393,236 $ 391,447 |
Note 7 Restructuring and Relate
Note 7 Restructuring and Related Activities (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs [Table Text Block] | Restructuring Expense Estimated Costs to Implement Three Months Ended Six Months Ended (In thousands) Severance costs (approximately 2,900 employees) $ 27,700 $ 1,191 $ 24,492 Other exit costs (will be recognized as incurred) 7,300 274 274 Total 35,000 1,465 24,766 Severance reimbursement (10,000 ) (10,000 ) (10,000 ) Total - Q1 FY18 plan 25,000 (8,535 ) 14,766 Costs incurred for other plans — (56 ) 185 Total - all plans $ 25,000 $ (8,591 ) $ 14,951 |
Note 9 Stockholders' Equity (Ta
Note 9 Stockholders' Equity (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | As of March 31, September 30, (In thousands) Foreign currency translation adjustments $ 91,506 $ 90,952 Unrealized holding losses on derivative financial instruments (101 ) (212 ) Unrecognized net actuarial losses and transition costs for benefit plans (14,140 ) (13,946 ) Total $ 77,265 $ 76,794 |
Note 10 Business Segment, Geo25
Note 10 Business Segment, Geographic and Customer Information (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended Six Months Ended March 31, April 1, March 31, April 1, (In thousands) Gross sales: IMS $ 1,374,581 $ 1,382,437 $ 2,803,428 $ 2,796,707 CPS 345,732 349,637 702,461 700,711 Intersegment revenue (44,684 ) (49,812 ) (85,460 ) (95,179 ) Net sales $ 1,675,629 $ 1,682,262 $ 3,420,429 $ 3,402,239 Gross profit: IMS $ 85,916 $ 100,644 $ 168,533 $ 203,281 CPS 31,372 35,503 61,238 68,792 Total 117,288 136,147 229,771 272,073 Unallocated items (1) (2,590 ) (2,937 ) (5,607 ) (6,701 ) Total $ 114,698 $ 133,210 $ 224,164 $ 265,372 (1) For purposes of evaluating segment performance, management excludes certain items from its measure of gross profit. These items consist of stock-based compensation expense, amortization of intangible assets, charges or credits resulting from distressed customers and acquisition-related items. |
Schedule of Revenue from External Customers by Geographic Area [Table Text Block] | Three Months Ended Six Months Ended March 31, April 1, March 31, April 1, (In thousands) Net sales United States $ 321,337 $ 303,514 $ 636,145 $ 603,390 Mexico 494,760 469,572 983,994 943,732 China 265,913 313,740 581,005 635,479 Malaysia 150,638 194,467 336,350 405,658 Other international 442,981 400,969 882,935 813,980 Total $ 1,675,629 $ 1,682,262 $ 3,420,429 $ 3,402,239 Percentage of net sales represented by ten largest customers 53 % 54 % 54 % 53 % Number of customers representing 10% or more of net sales 1 2 2 2 |
Note 11 Earnings Per Share (Tab
Note 11 Earnings Per Share (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Six Months Ended March 31, April 1, March 31, April 1, (In thousands, except per share data) Numerator: Net income (loss) $ 24,632 $ 31,717 $ (130,278 ) $ 76,581 Denominator: Weighted average common shares outstanding 70,441 74,761 71,096 74,156 Effect of dilutive stock options and restricted stock units 3,141 3,103 — 3,375 Denominator for diluted earnings per share 73,582 77,864 71,096 77,531 Net income (loss) per share: Basic $ 0.35 $ 0.42 $ (1.83 ) $ 1.03 Diluted $ 0.33 $ 0.41 $ (1.83 ) $ 0.99 |
Note 12 Stock-Based Compensat27
Note 12 Stock-Based Compensation (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Share-based Compensation [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Three Months Ended Six Months Ended March 31, April 1, March 31, April 1, (In thousands) Stock options $ 2,566 $ 380 $ 3,743 $ 930 Restricted stock units, including performance based awards 7,729 7,262 15,194 18,689 Total $ 10,295 $ 7,642 $ 18,937 $ 19,619 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Three Months Ended Six Months Ended March 31, April 1, March 31, April 1, (In thousands) Cost of sales $ 1,851 $ 2,035 $ 4,299 $ 4,899 Selling, general and administrative 8,388 5,376 14,552 14,216 Research and development 56 231 86 504 Total $ 10,295 $ 7,642 $ 18,937 $ 19,619 |
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 30, 2017 3,568 11.83 3.82 90,327 Granted 200 38.45 Exercised/Cancelled/Forfeited/Expired (337 ) 11.41 Outstanding as of March 31, 2018 3,431 13.42 3.86 53,074 Vested and expected to vest as of March 31, 2018 3,429 13.42 3.86 53,059 Exercisable as of March 31, 2018 3,234 12.11 3.55 52,867 |
Schedule of Restricted Stock Units Award Activity [Table Text Block] | Number of Shares Weighted- Average Grant Date Fair Value ($) Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value ($) (In thousands) (In thousands) Outstanding as of September 30, 2017 3,359 27.56 1.51 124,800 Granted 793 34.85 Vested/Forfeited/Cancelled (792 ) 26.30 Outstanding as of March 31, 2018 3,360 29.58 1.44 95,080 Expected to vest as of March 31, 2018 2,574 28.72 1.40 72,842 |
Note 1 New Accounting Pronounce
Note 1 New Accounting Pronouncement (Details) $ in Millions | 6 Months Ended |
Mar. 31, 2018USD ($) | |
Accounting Standards Update 2016-09 [Member] | |
Accounting Standard Update [Line Items] | |
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | $ 43 |
Note 2 Inventories (Details)
Note 2 Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Sep. 30, 2017 |
Inventory, Net [Abstract] | ||
Raw materials | $ 902,469 | $ 834,694 |
Work-in-process | 99,897 | 106,914 |
Finished goods | 119,652 | 110,061 |
Total | $ 1,122,018 | $ 1,051,669 |
Note 3 Fair Value (Details)
Note 3 Fair Value (Details) | 6 Months Ended |
Mar. 31, 2018 | |
Additional Fair Value Elements [Abstract] | |
Cash Equivalents | 10.00% |
Long-term Debt Instrument Fair Value | 1.00% |
Note 3 Foreign Currency Forward
Note 3 Foreign Currency Forward Contract (Details) - Foreign Exchange Forward [Member] $ in Thousands | 6 Months Ended | |
Mar. 31, 2018USD ($) | Sep. 30, 2017USD ($) | |
Derivatives Designated as Accounting Hedges: | ||
Derivative [Line Items] | ||
Derivative Notional Amount | $ 102,102 | $ 105,523 |
Number of contracts | 55 | 58 |
Maximum Length of Time Hedged | 12 months | |
Derivatives Not Designated as Accounting Hedges: | ||
Derivative [Line Items] | ||
Derivative Notional Amount | $ 291,469 | $ 302,944 |
Number of contracts | 44 | 46 |
Maximum Remaining Maturity | 2 months |
Note 4 Debt Schedule (Details)
Note 4 Debt Schedule (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2018 | Sep. 30, 2017 | |
Debt Instrument [Line Items] | ||
Non-interest bearing promissory notes | $ 21,652 | $ 19,863 |
Total long-term debt | 396,652 | 394,863 |
Other Notes Payable, Current | 3,416 | 3,416 |
Long-term debt | 393,236 | 391,447 |
Secured Notes Due 2019 | ||
Debt Instrument [Line Items] | ||
Secured debt | $ 375,000 | $ 375,000 |
Debt Instrument, Maturity Date | Jun. 1, 2019 |
Note 4 Line of Credit Facility
Note 4 Line of Credit Facility (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2018 | Feb. 01, 2018 | Dec. 30, 2017 | |
Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum Borrowing Capacity | $ 375 | |||
Expiration Date | May 20, 2020 | |||
Amended Cash Flow Revolver [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum Borrowing Capacity | $ 500 | |||
Long-term Line of Credit | $ 241 | $ 241 | ||
Letters of Credit Outstanding, Amount | $ 9 | 9 | ||
Additional Credit Line | 200 | |||
Delayed Draw Term Loan | $ 375 | |||
Expiration Date | Feb. 1, 2023 | |||
Foreign Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Maximum Borrowing Capacity | $ 69 | 69 | ||
Long-term Line of Credit | $ 0 | $ 0 |
Note 5 Accounts Receivable Sa34
Note 5 Accounts Receivable Sale Program (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2018 | Apr. 01, 2017 | Sep. 30, 2017 | |
Transfer of Financial Assets Accounted for as Sales [Line Items] | ||||
Percentage of Face Value of Receivable Sold | 100.00% | |||
Accounts Receivable Sold During The Period | $ 337 | $ 216 | ||
Accounts Receivable Sold and Outstanding | $ 165 | $ 165 | $ 140 | |
RPA [Member] | ||||
Transfer of Financial Assets Accounted for as Sales [Line Items] | ||||
Maximum Accounts Receivable Sale Capacity | $ 140 |
Note 6 Contingencies (Details)
Note 6 Contingencies (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Jan. 27, 2018 | Sep. 30, 2017 |
Loss Contingencies [Line Items] | |||
Contingent Liability | $ 38 | $ 36 | |
Goods and Services Tax for Imports [Member] | |||
Loss Contingencies [Line Items] | |||
Possible Claim Contingency | $ 23 |
Note 7 Restructuring (Details)
Note 7 Restructuring (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018USD ($) | Apr. 01, 2017USD ($) | Mar. 31, 2018USD ($) | Apr. 01, 2017USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Expected cost prior to reimbursement | $ 35,000 | $ 35,000 | ||
Restructuring Expense (Recovery) prior to reimbursement | 1,465 | 24,766 | ||
Expected Cost | 25,000 | 25,000 | ||
Restructuring Expense (Recovery), net | (8,591) | $ 3,301 | 14,951 | $ 4,029 |
Q1 FY18 Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Current | 12,000 | 12,000 | ||
Restructuring Reserve, Noncurrent | 9,000 | $ 9,000 | ||
Initiation Date | Jan. 12, 2018 | |||
Completion Date | Dec. 31, 2019 | |||
Expected Number of Positions Eliminated | 2,900 | |||
Severance Reimbursement | (10,000) | $ (10,000) | ||
Expected Cost | 25,000 | 25,000 | ||
Restructuring Expense (Recovery), net | (8,535) | 14,766 | ||
Q1 FY18 Plan [Member] | Employee Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected Cost | 27,700 | 27,700 | ||
Restructuring Charges | 1,191 | 24,492 | ||
Q1 FY18 Plan [Member] | Other Restructuring [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected Cost | 7,300 | 7,300 | ||
Restructuring Charges | 274 | 274 | ||
Q1 FY18 Plan [Member] | IMS | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected Cost | 14,600 | 14,600 | ||
Restructuring Expense (Recovery), net | 10,400 | |||
Q1 FY18 Plan [Member] | CPS [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected Cost | 10,400 | 10,400 | ||
Restructuring Expense (Recovery), net | 4,400 | |||
Prior to Q1 FY18 Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected Cost | 0 | 0 | ||
Restructuring Expense (Recovery), net | $ (56) | $ 185 |
Note 8 Income Tax (Details)
Note 8 Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Mar. 31, 2018 | Apr. 01, 2017 | Sep. 29, 2018 | |
Income Tax Disclosure Table [Line Items] | |||||
Provision for income taxes | $ 17,120 | $ 25,013 | $ 183,119 | $ 34,996 | |
Effective Income Tax Rate | 41.00% | 44.00% | 347.00% | 31.00% | |
US Tax Cuts and Jobs Act (H.R. 1) [Member] | |||||
Income Tax Disclosure Table [Line Items] | |||||
Accumulated unremitted earnings tax rate for cash repatriation | 15.50% | ||||
Accumulated unremitted earnings tax rate for non-liquid asset | 8.00% | ||||
Repatriation of Foreign Earnings, Amount | $ 0 | ||||
Tax Benefit from Territorial Tax Conversion | $ 14,000 | ||||
GILTI Tax Rate | 10.50% | ||||
Provision for income taxes | $ 162,000 | ||||
Adjustment of Deferred Tax (Asset) Liability | $ 176,000 | ||||
Forecasted Rate [Member] | |||||
Income Tax Disclosure Table [Line Items] | |||||
Federal Statutory Income Tax Rate, Percent | 24.50% | ||||
Maximum [Member] | |||||
Income Tax Disclosure Table [Line Items] | |||||
Federal Statutory Income Tax Rate, Percent | 35.00% | ||||
Minimum [Member] | US Tax Cuts and Jobs Act (H.R. 1) [Member] | |||||
Income Tax Disclosure Table [Line Items] | |||||
Federal Statutory Income Tax Rate, Percent | 21.00% |
Note 9 Stockholders' Equity (De
Note 9 Stockholders' Equity (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Sep. 30, 2017 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Foreign currency translation adjustments | $ 91,506 | $ 90,952 |
Unrealized holding losses on derivative financial instruments | (101) | (212) |
Unrecognized net actuarial losses and transition costs for benefit plans | (14,140) | (13,946) |
Total | $ 77,265 | $ 76,794 |
Note 9 Stock Repurchase (Detail
Note 9 Stock Repurchase (Details) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Stockholders' Equity Note [Abstract] | ||
Treasury Stock, Shares, Acquired | 3,800,000 | |
Treasury Stock, Value, Acquired, Cost Method | $ 109 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 144 | |
Shares Paid for Tax Withholding for Share Based Compensation | 304,000 | 453,000 |
Amount of Tax Withholding for Share-based Compensation | $ 11 | $ 14 |
Note 10 Revenue and Gross Profi
Note 10 Revenue and Gross Profit by Segment (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2018USD ($) | Apr. 01, 2017USD ($) | Mar. 31, 2018USD ($) | Apr. 01, 2017USD ($) | ||
Segment Reporting Information [Line Items] | |||||
Net sales | $ 1,675,629 | $ 1,682,262 | $ 3,420,429 | $ 3,402,239 | |
Gross profit | 114,698 | 133,210 | $ 224,164 | 265,372 | |
Number of Reportable Segments | 1 | ||||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Gross profit | 117,288 | 136,147 | $ 229,771 | 272,073 | |
Operating Segments | IMS | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 1,374,581 | 1,382,437 | 2,803,428 | 2,796,707 | |
Gross profit | 85,916 | 100,644 | 168,533 | 203,281 | |
Operating Segments | CPS | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 345,732 | 349,637 | 702,461 | 700,711 | |
Gross profit | 31,372 | 35,503 | 61,238 | 68,792 | |
Intersegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | (44,684) | (49,812) | (85,460) | (95,179) | |
Unallocated items (1) | |||||
Segment Reporting Information [Line Items] | |||||
Gross profit | [1] | $ (2,590) | $ (2,937) | $ (5,607) | $ (6,701) |
[1] | For purposes of evaluating segment performance, management excludes certain items from its measure of gross profit. These items consist of stock-based compensation expense, amortization of intangible assets, charges or credits resulting from distressed customers and acquisition-related items. |
Note 10 Segment Reporting by Ge
Note 10 Segment Reporting by Geographic Segment (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018USD ($) | Apr. 01, 2017USD ($) | Mar. 31, 2018USD ($) | Apr. 01, 2017USD ($) | |
Revenue from External Customer [Line Items] | ||||
Net sales | $ 1,675,629 | $ 1,682,262 | $ 3,420,429 | $ 3,402,239 |
Percentage of net sales represented by ten largest customers | 53.00% | 54.00% | 54.00% | 53.00% |
Number of customers representing 10% or more of net sales | 1 | 2 | 2 | 2 |
United States | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | $ 321,337 | $ 303,514 | $ 636,145 | $ 603,390 |
Mexico | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 494,760 | 469,572 | 983,994 | 943,732 |
China | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 265,913 | 313,740 | 581,005 | 635,479 |
Malaysia | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 150,638 | 194,467 | 336,350 | 405,658 |
Other international | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | $ 442,981 | $ 400,969 | $ 882,935 | $ 813,980 |
Note 11 Earnings Per Share (Det
Note 11 Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Mar. 31, 2018 | Apr. 01, 2017 | |
Weighted average shares used in computing per share amount: | ||||
Net income (loss) | $ 24,632 | $ 31,717 | $ (130,278) | $ 76,581 |
Weighted average common shares outstanding | 70,441 | 74,761 | 71,096 | 74,156 |
Effect of dilutive stock options and restricted stock units | 3,141 | 3,103 | 0 | 3,375 |
Denominator for diluted earnings per share | 73,582 | 77,864 | 71,096 | 77,531 |
Net income (loss) per share: | ||||
Basic | $ 0.35 | $ 0.42 | $ (1.83) | $ 1.03 |
Diluted | $ 0.33 | $ 0.41 | $ (1.83) | $ 0.99 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,500 |
Note 12 Share-Based Compensatio
Note 12 Share-Based Compensation Arrangements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Mar. 31, 2018 | Apr. 01, 2017 | |
Allocation of Recognized Period Costs [Line Items] | ||||
Share-based Compensation | $ 10,295 | $ 7,642 | $ 18,937 | $ 19,619 |
Stock options | ||||
Allocation of Recognized Period Costs [Line Items] | ||||
Share-based Compensation | 2,566 | 380 | 3,743 | 930 |
Restricted stock units, including performance based awards | ||||
Allocation of Recognized Period Costs [Line Items] | ||||
Share-based Compensation | 7,729 | 7,262 | 15,194 | 18,689 |
Cost of sales | ||||
Allocation of Recognized Period Costs [Line Items] | ||||
Allocated Share-based Compensation Expense | 1,851 | 2,035 | 4,299 | 4,899 |
Selling, general and administrative | ||||
Allocation of Recognized Period Costs [Line Items] | ||||
Allocated Share-based Compensation Expense | 8,388 | 5,376 | 14,552 | 14,216 |
Research and development | ||||
Allocation of Recognized Period Costs [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 56 | $ 231 | $ 86 | $ 504 |
Note 12 Shares Authorized for F
Note 12 Shares Authorized for Future Issuance and Available for Grant (Details) shares in Millions | 3 Months Ended |
Mar. 31, 2018shares | |
Shares Authorized for Future Issuance and Available for Grant [Abstract] | |
Number of Additional Shares Authorized | 1.8 |
Capital Shares Reserved for Future Issuance | 10.7 |
Total number of stock options and unvested restricted stock units outstanding | 6.8 |
Number of Shares Available for Future Grant | 3.9 |
Note 12 Stock Options Outstandi
Note 12 Stock Options Outstanding Rollforward (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Sep. 30, 2017 | |
Options Outstanding [Roll Forward] | ||
Outstanding, beginning | 3,568 | |
Granted | 200 | |
Exercised/Cancelled/Forfeited/Expired | (337) | |
Outstanding, ending | 3,431 | 3,568 |
Vested and Expected to Vest | 3,429 | |
Exercisable | 3,234 | |
Weighted Average Exercise Price [Abstract] | ||
Outstanding, beginning | $ 11.83 | |
Granted | 38.45 | |
Exercised/Cancelled/Forfeited/Expired | 11.41 | |
Outstanding, ending | 13.42 | $ 11.83 |
Vested and expected to vest | 13.42 | |
Exercisable | $ 12.11 | |
Weighted Average Remaining Contractual Term (Years) [Abstract] | ||
Outstanding | 3 years 10 months 11 days | 3 years 9 months 25 days |
Vested and Expected to Vest | 3 years 10 months 11 days | |
Exercisable | 3 years 6 months 20 days | |
Aggregate Intrinsic Value of In the Money Options [Abstract] | ||
Outstanding | $ 53,074 | $ 90,327 |
Vested and Expected to Vest | 53,059 | |
Exercisable | $ 52,867 |
Note 12 Restricted Stock Rollfo
Note 12 Restricted Stock Rollforward (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Sep. 30, 2017 | |
Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding, beginning | 3,359 | |
Granted | 793 | |
Vested/Forfeited/Cancelled | (792) | |
Outstanding, ending | 3,360 | 3,359 |
Expected to vest | 2,574 | |
Weighted Average Grant Date Fair Value Restricted Stock [Abstract] | ||
Outstanding, beginning | $ 27.56 | |
Granted | 34.85 | |
Vested/Forfeited/Cancelled | 26.30 | |
Outstanding, ending | 29.58 | $ 27.56 |
Expected to vest | $ 28.72 | |
Weighted Average Remaining Contractual Term [Abstract] | ||
Outstanding | 1 year 5 months 9 days | 1 year 6 months 5 days |
Expected to vest | 1 year 4 months 24 days | |
Restricted Stock Non vested Aggregate Intrinsic Value [Abstract] | ||
Outstanding | $ 95,080 | $ 124,800 |
Expected to vest | $ 72,842 |
Note 12 Unrecognized Stock Base
Note 12 Unrecognized Stock Based Compensation Expense (Details) $ in Millions | 6 Months Ended |
Mar. 31, 2018USD ($) | |
Restricted stock units | |
Unrecognized Compensation Cost and Weighted Average Period [Line Items] | |
Unrecognized compensation expense | $ 43 |
Weighted average period of recognition (years) | 1 year 5 months 13 days |
Performance Shares | |
Unrecognized Compensation Cost and Weighted Average Period [Line Items] | |
Unrecognized compensation expense | $ 20 |