Document and entity information
Document and entity information Document - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 29, 2018 | Nov. 12, 2018 | Mar. 29, 2018 | |
Entity Information [Line Items] | |||
Document Period End Date | Sep. 29, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --09-29 | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Registrant Name | SANMINA CORP | ||
Entity Central Index Key | 897,723 | ||
Document Type | 10-K | ||
Entity Common Stock, Shares Outstanding | 68,264,736 | ||
Entity Public Float | $ 1,580.5 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 29, 2018 | Sep. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 419,528 | $ 406,661 |
Accounts receivable, net of allowances of $12,211 and $14,334 as of September 29, 2018 and September 30, 2017, respectively | 1,177,219 | 1,110,334 |
Inventories | 1,374,004 | 1,051,669 |
Prepaid expenses and other current assets | 43,676 | 47,586 |
Total current assets | 3,014,427 | 2,616,250 |
Property, plant and equipment, net | 642,913 | 640,275 |
Deferred income tax assets, net | 344,124 | 476,554 |
Other | 83,669 | 114,284 |
Total assets | 4,085,133 | 3,847,363 |
Current liabilities: | ||
Accounts payable | 1,547,399 | 1,280,106 |
Accrued liabilities | 136,427 | 116,582 |
Accrued payroll and related benefits | 124,748 | 130,939 |
Short-term debt, including current portion of long-term debt | 593,321 | 88,416 |
Total current liabilities | 2,401,895 | 1,616,043 |
Long-term liabilities: | ||
Long-term debt | 14,346 | 391,447 |
Other | 196,048 | 192,189 |
Total long-term liabilities | 210,394 | 583,636 |
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; 103,128 and 101,672 shares issued and 67,777 and 71,664 shares outstanding as of September 29, 2018 and September 30, 2017, respectively | 678 | 717 |
Treasury stock, 35,351 and 30,008 shares as of September 29, 2018 and September 30, 2017, respectively, at cost | (791,366) | (633,740) |
Additional paid-in capital | 6,222,310 | 6,184,371 |
Accumulated other comprehensive income | 73,944 | 76,794 |
Accumulated deficit | (4,032,722) | (3,980,458) |
Total stockholders' equity | 1,472,844 | 1,647,684 |
Total liabilities and stockholders' equity | $ 4,085,133 | $ 3,847,363 |
Balance sheet parenthetical (Pa
Balance sheet parenthetical (Parentheticals) - USD ($) shares in Thousands, $ in Thousands | Sep. 29, 2018 | Sep. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts receivable allowances | $ 12,211 | $ 14,334 |
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 | 103,128 | 101,672 |
Common Stock, Shares, Outstanding | 67,777 | 71,664 |
Treasury Stock, Shares | 35,351 | 30,008 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Net sales | $ 7,110,130 | $ 6,868,619 | $ 6,481,181 |
Cost of sales | 6,646,347 | 6,348,708 | 5,966,899 |
Gross profit | 463,783 | 519,911 | 514,282 |
Operating expenses: | |||
Selling, general and administrative | 250,924 | 251,568 | 244,604 |
Research and development | 30,754 | 33,716 | 37,746 |
Restructuring costs | 29,146 | 1,339 | 2,701 |
Goodwill impairment | 30,610 | 0 | 0 |
Total operating expenses | 2,908 | 6,821 | 4,446 |
Total operating expenses | 344,342 | 293,444 | 289,497 |
Operating income | 119,441 | 226,467 | 224,785 |
Interest income | 1,268 | 1,265 | 680 |
Interest expense | (27,734) | (21,934) | (24,911) |
Other income, net | 4,564 | 7,682 | 4,063 |
Interest and other, net | (21,902) | (12,987) | (20,168) |
Income before income taxes | 97,539 | 213,480 | 204,617 |
Provision for income taxes | 193,072 | 74,647 | 16,779 |
Net income (loss) | $ (95,533) | $ 138,833 | $ 187,838 |
Net income (loss) per share: | |||
Basic | $ (1.37) | $ 1.86 | $ 2.50 |
Diluted | $ (1.37) | $ 1.78 | $ 2.38 |
Weighted-average shares used in computing per share amounts: | |||
Basic | 69,833 | 74,481 | 75,094 |
Diluted | 69,833 | 78,128 | 78,787 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Net income (loss) | $ (95,533) | $ 138,833 | $ 187,838 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | (3,063) | 588 | 3,734 |
Derivative financial instruments: | |||
Changes in unrealized gain (loss) | (982) | 819 | (2,326) |
Amount reclassified into net income | 859 | (592) | 2,570 |
Pension benefit plans: | |||
Changes in unrecognized net actuarial gain (loss) and unrecognized transition cost | (460) | 8,833 | (6,327) |
Amortization of actuarial gain (loss) and transition cost | 796 | 1,765 | 1,159 |
Total other comprehensive income (loss) | (2,850) | 11,413 | (1,190) |
Comprehensive income (loss) | $ (98,383) | $ 150,246 | $ 186,648 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock And Additional Paid in Capital | Number of Common Shares | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Deficit |
Balance at Oct. 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 | |||||
Treasury Stock, Shares at Oct. 03, 2015 | (18,248) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuances under stock plans | 1,835 | |||||
Issuances Under Stock Plans, Value | 18,221 | 18,221 | ||||
Stock-based compensation | 26,709 | 26,709 | ||||
Repurchases of Treasury Stock, Shares | (6,862) | |||||
Repurchases of Treasury Stock, Value | (142,246) | $ (142,246) | ||||
Other comprehensive income (loss) | (1,190) | (1,190) | ||||
Net income (loss) | 187,838 | 187,838 | ||||
Common Stock, Shares, Issued at Oct. 01, 2016 | 98,141 | |||||
Treasury Stock, Shares at Oct. 01, 2016 | (25,110) | |||||
Balance at Oct. 01, 2016 | 1,609,803 | 6,120,509 | $ (456,796) | 65,381 | (4,119,291) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuances under stock plans | 3,531 | |||||
Issuances Under Stock Plans, Value | 27,129 | 27,129 | ||||
Stock-based compensation | 37,450 | 37,450 | ||||
Repurchases of Treasury Stock, Shares | (4,898) | |||||
Repurchases of Treasury Stock, Value | (176,944) | $ (176,944) | ||||
Other comprehensive income (loss) | 11,413 | 11,413 | ||||
Net income (loss) | $ 138,833 | 138,833 | ||||
Common Stock, Shares, Issued at Sep. 30, 2017 | 101,672 | 101,672 | ||||
Treasury Stock, Shares at Sep. 30, 2017 | (30,008) | (30,008) | ||||
Balance at Sep. 30, 2017 | $ 1,647,684 | 6,185,088 | $ (633,740) | 76,794 | (3,980,458) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuances under stock plans | 1,456 | |||||
Issuances Under Stock Plans, Value | 4,407 | 4,407 | ||||
Stock-based compensation | 33,493 | 33,493 | ||||
Repurchases of Treasury Stock, Shares | (5,343) | |||||
Repurchases of Treasury Stock, Value | (157,626) | $ (157,626) | ||||
Other comprehensive income (loss) | (2,850) | (2,850) | ||||
Net income (loss) | $ (95,533) | (95,533) | ||||
Common Stock, Shares, Issued at Sep. 29, 2018 | 103,128 | 103,128 | ||||
Treasury Stock, Shares at Sep. 29, 2018 | (35,351) | (35,351) | ||||
Balance at Sep. 29, 2018 | $ 1,472,844 | $ 6,222,988 | $ (791,366) | $ 73,944 | (4,032,722) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of new accounting pronouncement | $ 43,269 | $ 43,269 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | ||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | ||||
Net income (loss) | $ (95,533) | $ 138,833 | $ 187,838 | |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ||||
Depreciation and amortization | 118,820 | 118,751 | 111,910 | |
Stock-based compensation expense | 32,825 | 37,920 | 26,907 | |
Deferred income taxes | 173,591 | 37,892 | (16,829) | |
Goodwill impairment | 30,610 | 0 | 0 | |
Other, net | 1,777 | 4,188 | 1,587 | |
Changes in operating assets and liabilities, net of acquisitions: | ||||
Accounts receivable | (69,076) | (136,072) | (36,913) | |
Inventories | (324,168) | (104,468) | 5,614 | |
Prepaid expenses and other assets | 7,797 | 12,303 | 68 | |
Accounts payable | 268,421 | 130,648 | 95,193 | |
Accrued liabilities | 11,360 | 10,966 | 14,741 | |
Cash provided by operating activities | 156,424 | 250,961 | 390,116 | |
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES: | ||||
Purchases of property, plant and equipment | (118,881) | (111,833) | (120,400) | |
Proceeds from sales of property, plant and equipment | 4,722 | 3,935 | 4,740 | |
Purchases of long-term investments | (2,019) | 0 | 0 | |
Cash paid for business combinations, net of cash acquired | 0 | 0 | (58,878) | |
Cash used in investing activities | (116,178) | (107,898) | (174,538) | |
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES: | ||||
Repayments of short-term borrowings (1) | 0 | 0 | (18,014) | [1] |
Proceeds from revolving credit facility borrowings | 4,040,600 | 932,770 | 2,962,450 | |
Repayments of revolving credit facility borrowings | (3,910,600) | (872,770) | (3,047,450) | |
Repayments of long-term debt | (3,416) | (43,416) | (4,382) | |
Net proceeds from stock issuances | 4,407 | 27,129 | 18,221 | |
Repurchases of common stock | (157,625) | (176,944) | (142,246) | |
Other, net | (1,701) | (2,262) | 0 | |
Cash used in financing activities | (28,335) | (135,493) | (231,421) | |
Effect of exchange rate changes | 956 | 803 | 1,878 | |
Increase (decrease) in cash and cash equivalents | 12,867 | 8,373 | (13,965) | |
Cash and cash equivalents at beginning of year | 406,661 | 398,288 | 412,253 | |
Cash and cash equivalents at end of year | 419,528 | 406,661 | 398,288 | |
Cash paid during the year: | ||||
Interest, net of capitalized interest | 26,156 | 17,983 | 21,316 | |
Income taxes, net of refunds | 34,819 | 20,417 | 29,342 | |
Noncash Investing and Financing Items: | ||||
Unpaid purchases of property, plant and equipment at end of period | 49,546 | 49,831 | 22,072 | |
Acquisition-date fair value of promissory notes issued in conjunction with business combinations (see Note 13) | $ 0 | $ 0 | $ 30,105 | |
[1] | 2016 amount represents repayment of a promissory note issued in conjunction with a business combination in the second quarter of 2016. The note was repaid in the third quarter of 2016. |
Note 1 Organization of Sanmina
Note 1 Organization of Sanmina | 12 Months Ended |
Sep. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Organization of Sanmina Sanmina Corporation (“Sanmina,” or the “Company”) was incorporated in Delaware in 1989. The Company is a leading global provider of integrated manufacturing solutions, components, products and repair, logistics and after-market services. The Company provides these comprehensive solutions primarily to original equipment manufacturers (OEMs) that serve the industrial, medical, defense and aerospace, automotive, communications networks and cloud solutions industries. The Company's operations are managed as two businesses: 1) Integrated Manufacturing Solutions (IMS). IMS is a single operating segment consisting of printed circuit board assembly and test, final system assembly and test, and direct-order-fulfillment. 2) Components, Products and Services (CPS). Components include interconnect systems (printed circuit board fabrication, backplane, cable assemblies and plastic injection molding) and mechanical systems (enclosures and precision machining). Products include memory, RF, optical and microelectronic, and enterprise solutions from the Company's Viking Technology division; defense and aerospace products from SCI Technology; and cloud-based manufacturing execution software from the Company's 42Q division. Services include design, engineering, logistics and repair services. The Company's only reportable segment is IMS, which represented approximately 80% of total revenue in 2018 . 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 2018 , 2017 and 2016 were each 52 weeks. 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 |
Sep. 29, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies Management Estimates and Uncertainties. The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates made in preparing the consolidated financial statements relate to allowances for accounts receivable; provisions for excess and obsolete inventories, product returns, warranties, environmental matters, and legal exposures; determining the recoverability of claims made in connection with customer bankruptcies; determining liabilities for uncertain tax positions; determining the realizability of deferred tax assets; determining fair values of tangible and intangible assets for purposes of business combinations and impairment tests; determining fair values of contingent consideration and equity awards; and determining forfeiture rates for purposes of calculating stock compensation expense. Actual results could differ materially from these estimates. Financial Instruments and Concentration of Credit Risk. Financial instruments consist primarily of cash and cash equivalents, accounts receivable, foreign currency forward contracts, interest rate swap agreement, accounts payable and debt obligations. With the exception of certain of the Company's debt obligations (refer to Note 4. Financial Instruments), the fair value of these financial instruments approximates their carrying amount as of September 29, 2018 and September 30, 2017 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 $12 million and $14 million as of September 29, 2018 and September 30, 2017 , respectively, for uncollectible accounts, product returns and other net sales adjustments. One of the Company's most significant risks is the ultimate realization of its accounts receivable. This risk is mitigated by ongoing credit evaluations of customers and frequent contact with customers, especially the most significant customers, which enable the Company to monitor changes in its customers' business operations and respond accordingly. To establish the allowance for doubtful accounts, the Company estimates credit risk associated with accounts receivable by considering the creditworthiness of its customers, past experience, specific facts and circumstances, and the overall economic climate in industries that it serves. To establish the allowance for product returns and other adjustments, the Company primarily utilizes historical data. Accounts Receivable Sale. During 2018, the Company entered into a Receivables Purchase Agreement (the “RPA”) with certain third-party banking institutions for the sale of trade receivables generated from sales to certain customers. A maximum of $540 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, as in effect from time to time. The Company does not service trade receivables sold under these other programs. Under each of the programs noted above, the Company sells its entire interest in a trade receivable for 100% of face value, less a discount. Accounts receivable balances sold are removed from the consolidated balance sheets and the related proceeds are reported as cash provided by operating activities in the consolidated statements of cash flows. Inventories. Inventories are stated at the lower of cost (first-in, first-out method) and net realizable value. Cost includes labor, materials and manufacturing overhead. Provisions are made to reduce excess and obsolete inventories to their estimated net realizable values. The ultimate realization of inventory carrying amounts is primarily affected by changes in customer demand. Inventory provisions are established based on forecasted demand, past experience with specific customers, the age and nature of the inventory, the ability to redistribute inventory to other programs or back to suppliers, and whether customers are contractually obligated and have the ability to pay for the related inventory. Certain payments received from customers for inventory held by the Company are recorded as a reduction of inventory. Long-lived Assets. Property, plant and equipment are stated at cost or, in the case of property and equipment acquired through business combinations, at fair value as of the acquisition date. Depreciation is provided on a straight-line basis over 20 to 40 years for buildings and 3 to 15 years for machinery, equipment, furniture and fixtures. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or useful life of the asset . The Company reviews property, plant and equipment and intangible assets subject to amortization for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. An asset group is the unit of accounting which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets. An asset or asset group is considered impaired if its carrying amount exceeds the undiscounted future net cash flows the asset or asset group is expected to generate. If an asset or asset group is considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset or asset group exceeds its fair value. For asset groups for which the primary asset is a building, the Company estimates fair value based on data provided by commercial real estate brokers. For other asset groups, the Company estimates fair value based on projected discounted future net cash flows. Goodwill. Goodwill is tested for impairment on an annual basis and whenever events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable, as assessed at a reporting unit level. If, based on a qualitative assessment, the Company determines it is more-likely-than-not that goodwill is impaired, the Company performs a quantitative assessment to determine whether the fair value of our reporting unit is less than its carrying value and, if so, an impairment adjustment must be recorded up to the carrying value of goodwill. Foreign Currency Translation. For foreign subsidiaries using the local currency as their functional currency, assets and liabilities are translated to U.S. dollars at exchange rates in effect at the balance sheet date and income and expenses are translated at average exchange rates. The effects of these translation adjustments are reported in stockholders' equity as a component of accumulated other comprehensive income ("AOCI"). For all entities, remeasurement adjustments for non-functional currency monetary assets and liabilities are included in other income, net in the accompanying consolidated statements of operations. Remeasurement gains and losses arising from long-term intercompany loans denominated in a currency other than an entity's functional currency are recorded in AOCI if repayment of the loan is not anticipated in the foreseeable future. Derivative Instruments and Hedging Activities. The Company conducts business on a global basis in numerous currencies and certain of the Company's outstanding debt has a variable interest rate. Therefore, the Company is exposed to movements in foreign currency exchange rates and interest rates. The Company uses derivatives, such as foreign currency forward contracts and interest rate swaps, to minimize the volatility of earnings and cash flows associated with changes in foreign currency exchange rates and interest rates. The Company accounts for derivative instruments and hedging activities in accordance with ASC Topic 815, Derivatives and Hedging, which requires each derivative instrument to be recorded on the consolidated balance sheets at its fair value as either an asset or a liability. If a derivative is designated as a cash flow hedge, the effective portion of changes in the fair value of the derivative is recorded in stockholders' equity as a separate component of AOCI and is recognized in earnings when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges are immediately recognized in earnings. If a derivative is designated as a fair value hedge, changes in the fair value of the derivative and of the item being hedged are recognized in earnings in the current period. Derivative instruments are entered into for periods of time consistent with the related underlying exposures and are not entered into for speculative purposes. At the inception of a hedge, the Company documents all relationships between derivative instruments and related hedged items, as well as its risk-management objectives and strategies for the hedging transaction. The Company's foreign currency forward contracts and interest rate swaps potentially expose the Company to credit risk to the extent the counterparties may be unable to meet the terms of the agreement. The Company minimizes such risk by seeking high quality counterparties. Revenue Recognition. The Company derives revenue principally from sales of 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 operations. 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 Adopted in Fiscal Year 2018 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 value of goodwill allocated to that reporting unit. The Company adopted this ASU in fiscal 2018 at the time of its annual impairment review and recognized a $31 million goodwill impairment charge because the fair value of one of its CPS operating segments was below its carrying value. This impairment reduced goodwill to zero for this particular operating segment. As of September 29, 2018 , the Company has goodwill of $29 million , which is recorded in other noncurrent assets on the consolidated balance sheets. 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 statements 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 June 2018, the FASB issued ASU 2018-07 "Improvements to Non-employee Share-Based Payment Accounting (Topic 718)". The ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from non-employees. The standard aligns measurement and classification guidance for share-based payments to non-employees with the guidance applicable to employees. This ASU is effective for the Company at the beginning of fiscal 2020, including interim periods within that reporting period, although early adoption is permitted. The Company does not expect the impact of adoption to be significant. In February 2018, the FASB issued ASU 2018-02, "Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income", which allows companies to reclassify stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act 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, although early 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 although early adoption is permitted. The Company is currently evaluating the potential impact of this ASU and when to adopt it. 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 2017-01, "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, although 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 sheets, but is still evaluating the impact to its consolidated statements of operations. 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. 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. The Company has determined that the new standard will result in a significant change to the timing of the Company’s recognition of revenue. Under the current accounting standard, the majority of the Company’s revenue is recognized at a point-in-time, which is generally upon delivery (transfer of title and risks of ownership) of a product to a customer or completion of a service for a customer. Under the new standard, for contracts in existence as of the date of adoption, the majority of the Company’s revenue is expected to be recognized on an "over time" basis, which will generally be over the period during which the Company manufactures a product for a customer or delivers a service to a customer. Despite earlier recognition of revenue under the new standard, the Company does not expect the new standard to materially impact its revenue or gross profit on a rollover basis in periods after adoption. However, the new standard is expected to have a material impact to the Company's consolidated balance sheets upon initial adoption, primarily because of a reduction in finished goods and work-in-process inventories for revenue that will be recognized on an over time basis under the new standard and an associated increase in contract assets for amounts recognized as revenue in advance of invoicing a customer. The Company estimates the net impact upon adoption of the new standard will be an increase to beginning retained earnings as of September 29, 2018 of $10 million to $40 million . Other than as noted above, the Company does not currently expect adoption of the new standard to materially impact the Company’s consolidated financial statements. However, the Company is continuing to assess the impact of adopting the new standard, including expanded disclosure requirements, on its consolidated financial statements. |
Note 3 Balance Sheet and Income
Note 3 Balance Sheet and Income Statement Details | 12 Months Ended |
Sep. 29, 2018 | |
Balance Sheet and Income Statement Details [Abstract] | |
Additional Financial Information Disclosure [Text Block] | Balance Sheet and Income Statement Details Inventories Components of inventories were as follows: As of September 29, September 30, (In thousands) Raw materials $ 1,139,585 $ 834,694 Work-in-process 132,803 106,914 Finished goods 101,616 110,061 Total $ 1,374,004 $ 1,051,669 Property, Plant and Equipment, net Property, plant and equipment consisted of the following: As of September 29, September 30, (In thousands) Machinery and equipment $ 1,476,903 $ 1,452,648 Land and buildings 617,258 607,701 Leasehold improvements 56,190 55,688 Furniture and fixtures 23,911 22,989 Construction in progress 47,725 37,864 2,221,987 2,176,890 Less: Accumulated depreciation and amortization (1,579,074 ) (1,536,615 ) Property, plant and equipment, net $ 642,913 $ 640,275 Depreciation expense was $112 million , $111 million and $104 million for 2018 , 2017 and 2016 , respectively. Goodwill and Other Intangible Assets Goodwill and other intangible assets are included in other noncurrent assets on the consolidated balance sheets. Net carrying values of goodwill and other intangible assets were as follows: As of September 29, September 30, (In thousands) Goodwill - beginning of year $ 59,126 $ 59,126 Impairment (30,610 ) — Goodwill - end of year $ 28,516 $ 59,126 Intangible assets - beginning of year $ 9,218 $ 16,498 Amortization (6,516 ) (7,280 ) Intangible assets - end of year $ 2,702 $ 9,218 During the Company's annual goodwill impairment analysis, the Company concluded that the fair value of one of its CPS operating segments was below its carrying value, resulting in an impairment charge of $31 million . The fair value of the reporting unit was estimated based on the present value of future discounted cash flows. Other Operating Expenses Other operating expenses consisted of the following: Year Ended September 29, September 30, October 1, (In thousands) Amortization of intangible assets $ 2,908 $ 3,672 $ 3,446 Asset impairments — 4,600 1,000 Gain on sale of long-lived assets — (1,451 ) — $ 2,908 $ 6,821 $ 4,446 Other Income, net The following table summarizes the major components of other income, net: Year ended September 29, September 30, October 1, (In thousands) Foreign exchange gains / (losses) $ 766 $ 4,709 $ (415 ) Bargain purchase gain, net of tax — — 1,642 Other, net 3,798 2,973 2,836 Total $ 4,564 $ 7,682 $ 4,063 |
Note 4 Financial Instruments
Note 4 Financial Instruments | 12 Months Ended |
Sep. 29, 2018 | |
Financial Instruments [Abstract] | |
Derivatives and Fair Value [Text Block] | Financial Instruments Fair Value Measurements Fair Value of Financial Instruments The fair values of cash equivalents (generally less than 10% 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 September 29, 2018 , the fair value of the Company's long-term debt, as estimated based primarily on quoted prices (Level 2 input), was equivalent to 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, deferred benefit plan assets, foreign exchange contracts, interest rate swaps and contingent consideration. The fair value of these assets and liabilities, other than defined benefit plan assets (Level 1 input) and deferred compensation plan assets (Level 1 input), was not material as of September 29, 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 derivatives assets and liabilities under certain conditions, such as multiple transactions with the same currency maturing on the same date. The Company presents its derivative assets and derivative liabilities on a gross basis in the consolidated balance sheets. The amount that the Company had the right to offset under these netting arrangements was not material as of September 29, 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 Foreign Exchange Rate Risk The Company is exposed to certain risks related to its ongoing business operations. The primary risks managed by using derivative instruments is foreign currency exchange risk. Forward contracts on various foreign currencies are used to manage foreign currency risk associated with forecasted foreign currency transactions and certain monetary assets and liabilities denominated in non-functional currencies. The Company's primary foreign currency cash flows are in certain Asian and European countries, Brazil, Israel and Mexico. The Company had the following outstanding foreign currency forward contracts that were entered into to hedge foreign currency exposures: As of September 29, 2018 September 30, 2017 Derivatives Designated as Accounting Hedges: Notional amount (in thousands) $116,992 $105,523 Number of contracts 54 58 Derivatives Not Designated as Accounting Hedges: Notional amount (in thousands) $356,076 $302,944 Number of contracts 56 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 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 not material for any period presented herein. As of September 29, 2018 , AOCI related to foreign currency forward contracts was not material . The Company enters into short-term foreign currency forward contracts to hedge currency exposures associated with certain monetary assets and liabilities denominated in non-functional currencies. These contracts have maturities of up to two months and are not designated as accounting hedges. Accordingly, these contracts are marked-to-market at the end of each period with unrealized gains and losses recorded in other income, net, in the consolidated statements of operations. The amount of gains (losses) associated with these forward contracts were not material for any period presented herein. From an economic perspective, the objective of the Company's hedging program is for gains and losses on forward contracts to substantially offset gains and losses on the underlying hedged items. In addition to the contracts disclosed in the table above, the Company has numerous contracts that have been closed from an economic and financial accounting perspective and will settle early in the first month of the following quarter. Since these offsetting contracts do not expose the Company to risk of fluctuations in exchange rates, these contracts have been excluded from the above table. In addition to the short-term contracts discussed above, the Company has a foreign currency forward contract that matures in 2020 and was entered into as a hedge of foreign currency exposure associated with a long-term promissory note issued in connection with a previous business combination. Interest Rate Risk During the fourth quarter of 2018, the Company entered into a forward interest rate swap agreement with an aggregate notional amount of $50 million with an independent counterparty to partially hedge the variability in cash flows due to changes in the benchmark interest rate (LIBOR) associated with anticipated variable rate borrowings. The interest rate swap has an effective date of June 3, 2019 , a maturity date of December 1, 2023 , and effectively converts the Company's variable interest rate obligations to fixed interest rate obligations. The swap is accounted for as cash flow hedge under ASC Topic 815, Derivatives and Hedging. The Company entered into additional interest rate swaps with aggregate notional amounts totaling $100 million during the first quarter of 2019 bringing the total swap value to $150 million with an effective interest rate of approximately 4.5% . |
Note 5 Financial Instruments an
Note 5 Financial Instruments and Concentration of Credit Risk | 12 Months Ended |
Sep. 29, 2018 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | Financial Instruments and Concentration of Credit Risk Financial instruments that potentially subject the Company to credit risk consist primarily of cash, cash equivalents, trade accounts receivable, foreign currency forward contracts and interest rate swap agreement. The carrying value of assets such as cash, cash equivalents and accounts receivable is expected to approximate fair value due to the short duration of the assets. The Company maintains its cash and cash equivalents with recognized financial institutions that management believes to be of high credit quality. One of the Company's most significant credit risks is the ultimate realization of accounts receivable. This risk is mitigated by ongoing credit evaluations of, and frequent contact with, the Company's customers, especially its most significant customers, thus enabling it to monitor changes in business operations and respond accordingly. The Company generally does not require collateral for sales on credit. The Company considers these concentrations of credit risks when estimating its allowance for doubtful accounts. Foreign currency forward contracts and interest rate swap are maintained with high quality counterparties to reduce the Company's credit risk and are recorded on the Company's balance sheets at fair value. One customer represented more than 10% of the Company's net sales in 2018 and 2016 and two customers each represented more than 10% of the Company's net sales in 2017. One customer represented 10% or more of the Company's gross accounts receivable as of September 29, 2018 and September 30, 2017 . |
Note 6 Debt
Note 6 Debt | 12 Months Ended |
Sep. 29, 2018 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt Long-term debt consisted of the following: As of September 29, September 30, (In thousands) Senior secured notes due 2019 $ 375,000 $ 375,000 Non-interest bearing promissory notes 17,667 19,863 Total long-term debt 392,667 394,863 Less: Current portion of non-interest bearing promissory notes 3,321 3,416 Current portion of long-term debt 375,000 — Long-term debt $ 14,346 $ 391,447 Secured Debt. During the second quarter of 2017, the Company prepaid the balance of the amount due under its secured debt due 2017 for $40 million plus accrued interest. Secured Notes. In 2014, the Company issued $375 million of senior secured notes due 2019 ("Secured Notes"). 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. Debt issuance costs incurred in connection with issuance of the Secured Notes were not material. 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. Non-interest Bearing Promissory Notes. On February 1, 2016 , the Company completed an acquisition and financed $15 million of the purchase price with the acquiree using a four-year non-interest bearing promissory note with a discounted value of $12 million as of the acquisition date (see Note 13). Short-term Debt Revolving Credit Facility. During the second quarter of 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 . Sanmina’s and certain subsidiary guarantors’ obligations under the Amended Cash Flow Revolver are secured by property of Sanmina and such guarantors, including, but not limited to, cash, accounts receivable, inventory and shares of our subsidiaries, subject to limited exceptions. The Company expects to meet the liquidity condition needed to maintain the extended maturity date of the Amended Cash Flow Revolver. There can be no assurance that the Company will be successful in meeting this condition, in which case the maturity date of the Amended Cash Flow Revolver would be no later than 92 days prior to the maturity date of the Secured Notes. During the fourth quarter of 2018, the Company entered into a forward interest rate swap agreement with an aggregate notional amount of $50 million with an independent counterparty to partially hedge the variability in cash flows due to changes in the benchmark interest rate (LIBOR) associated with anticipated variable rate borrowings. The interest rate swap has an effective date of June 3, 2019 , a maturity date of December 1, 2023 , and effectively converts the variable interest rate obligations to fixed interest rate obligations. The swap is accounted for as cash flow hedge under ASC Topic 815, Derivatives and Hedging. The Company entered into additional interest rate swaps with aggregate notional amounts totaling $100 million during the first quarter of 2019 bringing the total swap value to $150 million with an effective interest rate of approximately 4.5% . 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. As of September 29, 2018 , $215 million of borrowings and $8 million of letters of credit were outstanding under the Amended Cash Flow Revolver. Foreign Short-term Borrowing Facilities . As of September 29, 2018 , certain foreign subsidiaries of the Company had a total of $69 million of short-term borrowing facilities, under which no borrowings were outstanding. These facilities expire at various dates through the second quarter of 2019 . 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 September 29, 2018 . |
Note 7 Accounts Receivable Sale
Note 7 Accounts Receivable Sale Program | 12 Months Ended |
Sep. 29, 2018 | |
Transfers and Servicing [Abstract] | |
Transfers and Servicing of Financial Assets [Text Block] | Accounts Receivable Sales Program During 2018, the Company entered into a Receivables Purchase Agreement (the “RPA”) with certain third-party banking institutions for the sale of trade receivables generated from sales to certain customers. A maximum of $540 million of sold receivables can be outstanding at any point in time under this program, subject to limitations under the Company's Amended Cash Flow Revolver. Trade receivables sold pursuant to the RPA are serviced by the Company. In addition to the RPA, the Company has the option to participate in trade receivables sales programs that have been implemented by certain of the Company's customers, as in effect from time to time. The Company does not service trade receivables sold under these other programs. Under each of the programs noted above, the Company sells its entire interest in a trade receivable for 100% of face value, less a discount. For the years ended September 29, 2018 and September 30, 2017 , the Company sold $917 million and $491 million , respectively, of accounts receivable under these programs. Upon sale, these receivables are removed from the consolidated balance sheets and cash received is presented as cash provided by operating activities in the consolidated statements of cash flows. Discounts on sold receivables were not material for any period presented. As of September 29, 2018 , $189 million of accounts receivable sold under the RPA and subject to servicing by the Company remained outstanding and had not yet been collected. |
Note 8 Commitment and Contingen
Note 8 Commitment and Contingencies | 12 Months Ended |
Sep. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies From time to time, the Company is a party to litigation, claims and other contingencies, including environmental and employee matters 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. The Company records a contingent liability when it is probable that a loss has been incurred and the amount of loss is reasonably estimable in accordance with ASC Topic 450, Contingencies or other applicable accounting standards. As of September 29, 2018 and September 30, 2017 , the Company had reserves of $35 million and $36 million , respectively, for environmental matters, warranty, litigation, contingent consideration and other contingencies (excluding reserves for uncertain tax positions) which the Company believes are adequate. However, there can be no assurance that the Company's reserves will be sufficient to settle these contingencies. Such reserves are included in accrued liabilities and other long-term liabilities on the consolidated balance sheets. 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 in writing, most recently in April 2018. No further communications have been received from the agency since that time and the Company cannot, at this time, determine the outcome of this matter and has not provided a reserve for this matter as of September 29, 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 September 29, 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 September 29, 2018 , the Company believes it has reserved a sufficient amount to satisfy 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 September 29, 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. In October 2018, an individual who had been employed by the Company from November 2015 to March 2016 filed a lawsuit against the Company in the Santa Clara County Superior Court on behalf of himself and all other similarly situated Company employees in California, alleging violations of California labor code provisions governing overtime, meal and rest periods, wages, wage statements and reimbursement of business expenses. The complaint seeks certification of a class of all non-exempt employees, whether employed directly or through a temporary staffing agency, employed from four years before filing of the complaint to time of trial. Although the Company is investigating the allegations and cannot, at the current time, determine the outcome of this matter and has not provided a reserve for this matter as of September 29, 2018 , the Company intends to defend against this matter vigorously. Other Contingencies One of the Company's most significant risks is the ultimate realization of accounts receivable and customer inventory exposures. This risk is partially mitigated by ongoing credit evaluations of, and frequent contact with, the Company's customers, especially its most significant customers, thus enabling it to monitor changes in business operations and respond accordingly. Customer bankruptcies also entail the risk of potential recovery by the bankruptcy estate of amounts previously paid to the Company that are deemed a preference under bankruptcy laws. Commitments - Operating Leases The Company leases certain of its facilities and equipment under non-cancellable operating leases expiring at various dates through 2042 . The Company is responsible for utilities, maintenance, insurance and property taxes under these leases. Future minimum lease payments, net of sublease income, under operating leases are as follows: (In thousands) 2019 $ 21,188 2020 14,647 2021 13,036 2022 9,635 2023 6,038 Thereafter 21,220 Total $ 85,764 Rent expense, net of sublease income, under operating leases was $27 million , $24 million and $24 million for 2018 , 2017 and 2016 , respectively. |
Note 9 Restructuring
Note 9 Restructuring | 12 Months Ended |
Sep. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Restructuring In the first quarter of 2018, the Company began implementing restructuring actions to address the closure and/or relocation of three of its manufacturing facilities. In addition, the Company is still in the process of completing restructuring actions under other plans. The following table is a summary of restructuring costs associated with these plans: Estimated Costs to Implement Year ended September 29, 2018 Q1 FY18 Plan: (In thousands) Severance costs (approximately 2,900 employees) $ 27,700 $ 26,425 Other exit costs (recognized as incurred) 7,300 4,984 Total 35,000 31,409 Severance reimbursement (10,000 ) (10,000 ) Total - Q1 FY18 Plan $ 25,000 21,409 Other plans 7,737 Total - all plans $ 29,146 Q1 FY18 Plan Actions under the Q1 FY18 plan began in the first quarter of 2018 and are expected to occur through calendar 2019. Cash payments of severance and other costs began in the second quarter of 2018 and are expected to occur through the end of calendar 2019. In connection with this plan, the Company entered into a contractual agreement with a third party pursuant to which up to $10 million of severance and retention costs incurred by the Company will be reimbursed. The Company recorded this amount as a reduction of restructuring costs in the second quarter of 2018 and, as of September 29, 2018 , $8 million was included in accounts receivable on the consolidated balance sheets. Costs incurred for other exit costs consist primarily of costs to maintain vacant facilities that are owned and contract termination costs. Other plans Costs incurred in connection with other plans include severance costs of $3.2 million and other exit costs of $4.5 million , consisting primarily of a change in estimate for a certain environmental remediation matter and asset impairment charges. All Plans Of the $29.1 million of restructuring costs recorded during the year ended September 29, 2018, $12.2 million is attributable to the Company's IMS segment and $16.9 million is attributable to the Company's CPS segment. As of September 29, 2018, $24.2 million of restructuring costs (exclusive of environmental remediation liabilities) have been accrued and recorded in accrued liabilities on the consolidated balance sheets. In addition to costs expected to be incurred under the Q1 FY18 plan, the Company expects to incur restructuring costs in future periods primarily for vacant facilities and former sites for which the Company is or may be responsible for environmental remediation. |
Note 10 Income Tax
Note 10 Income Tax | 12 Months Ended |
Sep. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes Domestic and foreign components of income before income taxes were as follows: Year Ended September 29, September 30, October 1, (In thousands) Domestic $ 16,215 $ 128,493 $ 138,138 Foreign 81,324 84,987 66,479 Total $ 97,539 $ 213,480 $ 204,617 The provision for income taxes consists of the following: Year Ended September 29, September 30, October 1, (In thousands) Federal: Current $ (122 ) $ (2,524 ) $ 490 Deferred 170,994 37,543 (4,550 ) State: Current 32 1,648 (265 ) Deferred (3,672 ) 4,204 (5,141 ) Foreign: Current 20,287 37,076 32,427 Deferred 5,553 (3,300 ) (6,182 ) Total provision for income taxes $ 193,072 $ 74,647 $ 16,779 Impact of U.S. Tax Reform On December 22, 2017, the U.S. Tax Cuts and Jobs Act (the “Tax Act”) was enacted into law. In accordance with ASC 740, Income Taxes , the Company is required to recognize the effect of the Tax Act in the period of enactment, which was the Company’s first quarter of fiscal 2018 that ended on December 30, 2017. The many changes in the Tax Act include a permanent reduction in the maximum federal corporate income tax rate from 35% to 21% effective as of January 1, 2018. The statutory federal income tax rate applicable for the Company's fiscal year ending September 29, 2018 was 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 fourth quarter of 2018, the Company has recorded a net income tax expense for the impact of the Tax Act of approximately $161 million , which is comprised of $175 million for remeasurement of the Company’s U.S deferred tax assets, zero for the mandatory deemed repatriation of undistributed earnings and profits, and a tax benefit of $14 million for the conversion to a territorial system. The Company has completed its analysis and accounting with respect to these items. 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. In accordance with SEC’s Accounting Bulletin No. 118, the Company will finalize the election to account for GILTI under the period cost method or deferred cost method during the first quarter of 2019. 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 2018 , 2017 and 2016 was $193 million ( 198% of income before taxes), $75 million ( 35% of income before taxes) and $17 million ( 8% of income before taxes), respectively. The increase in income tax expense for 2018 was primarily attributable to the impact of the Tax Act as discussed above, which increased income tax expense approximately $161 million because of a non-cash reduction in the carrying value of our net deferred tax assets partially offset by a decrease in the US tax rate from 35% to 21% and a $5 million discrete tax benefit resulting from a settlement with a foreign tax authority in the third quarter of 2018, which allowed the Company to release an accrual for this uncertain tax position. During the first quarter of 2017, the Company recorded a discrete tax benefit resulting from the merger of two foreign entities, the surviving entity of which was, and continues to be, included in the Company’s U.S. federal consolidated tax group. This restructuring allowed the Company to recognize a U.S. deferred tax asset to reflect the federal deductibility of a foreign uncertain tax position that became recognizable upon the merger of the subsidiaries. The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities are as follows: As of September 29, 2018 September 30, 2017 (In thousands) Deferred tax assets: U.S. net operating loss carryforwards $ 218,710 $ 338,492 Foreign net operating loss carryforwards 129,866 186,684 Acquisition related intangibles 15,099 13,913 Accruals not currently deductible 45,922 55,582 Property, plant and equipment 22,596 20,746 Tax credit carryforwards 13,825 11,832 Reserves not currently deductible 14,420 21,710 Stock compensation expense 13,645 21,151 Unrealized losses 3,145 4,475 Other 2,789 3,949 Valuation allowance (113,559 ) (163,267 ) Total deferred tax assets 366,458 515,267 Deferred tax liabilities on undistributed earnings (23,986 ) (36,027 ) Other deferred tax liabilities (3,802 ) (8,140 ) Net deferred tax assets $ 338,670 $ 471,100 Recorded as: Non-current deferred tax assets $ 344,124 $ 476,554 Non-current deferred tax liabilities (5,454 ) (5,454 ) Net deferred tax assets $ 338,670 $ 471,100 The Company offsets deferred tax assets and liabilities by tax-paying jurisdiction. The resulting net amounts by tax jurisdiction are then aggregated without further offset. A valuation allowance is established or maintained when, based on currently available information and other factors, it is more likely than not that all or a portion of the deferred tax assets will not be realized. The Company regularly assesses its valuation allowance against deferred tax assets on a jurisdiction by jurisdiction basis. The Company considers all available positive and negative evidence, including future reversals of temporary differences, projected future taxable income, tax planning strategies and recent financial results. Significant judgment is required in assessing the Company's ability to generate revenue, gross profit, operating income and jurisdictional taxable income in future periods. 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. In 2012 through 2016, the Company released a portion of its U.S. valuation allowances each year in recognition of its improved historical earnings and increasing future projected earnings. The Company released $96 million of the valuation allowance attributable to U.S. and foreign deferred tax assets in 2016. As of September 29, 2018 and September 30, 2017 , the Company no longer had a valuation allowance against its U.S. deferred tax assets. The valuation allowance as of September 29, 2018 relates primarily to foreign net operating losses, with the exception of $12 million related to U.S. state net operating losses. As of September 29, 2018 , income taxes and foreign withholding taxes have not been provided for approximately $400 million of cumulative undistributed earnings of several non-U.S. subsidiaries. The Company intends to reinvest these earnings indefinitely in operations outside of the U.S. Determination of the amount of unrecognized deferred tax liabilities on these undistributed earnings is not practicable. As of September 29, 2018 , the Company has cumulative net operating loss carryforwards for federal, state and foreign tax purposes of $931 million , $406 million and $558 million , respectively. The federal and state net operating loss carryforwards begin expiring in 2024 and 2019, respectively, and expire at various dates through 2035 . Certain foreign net operating losses start expiring in 2019. However, the majority of foreign net operating losses carryforward indefinitely. The Tax Reform Act of 1986 and similar state provisions impose restrictions on the utilization of net operating loss and tax credit carryforwards in the event of an “ownership change” as defined in the Internal Revenue Code. The utilization of certain net operating losses may be restricted due to changes in ownership and business operations. Prior to the adoption of ASU 2016-09, the Company was prohibited from recognizing a deferred tax asset for excess tax benefits related to stock and stock option plans that have not been realized through the reduction in income taxes payable. Such unrecognized deferred tax benefit as of September 30, 2017 was $124 million on a pre-tax basis and was recognized upon the Company’s adoption of ASU 2016-09, Improvements to Employee Share-based Accounting, in 2018 with a corresponding increase to retained earnings. Following is a reconciliation of the statutory federal tax rate to the Company's effective tax rate: Year Ended September 29, September 30, October 1, Federal tax at statutory tax rate 24.50 % 35.00 % 35.00 % Tax Act impact 165.16 — — Effect of foreign operations 7.92 1.89 5.35 Foreign income inclusion 0.17 0.26 9.43 Permanent items (1.37 ) 2.10 (0.29 ) Release of valuation allowance — — (47.10 ) Discrete benefit of foreign restructuring — (4.92 ) — Other 0.32 (2.10 ) 4.61 State income taxes, net of federal benefit 1.24 2.72 1.18 Effective tax rate 197.94 % 34.95 % 8.18 % A reconciliation of the beginning and ending amount of total unrecognized tax benefits, excluding accrued penalties and interest, is as follows: Year Ended September 29, September 30, October 1, (In thousands) Balance, beginning of year $ 67,022 $ 55,773 $ 51,158 Increase (decrease) related to prior year tax positions (5,917 ) 1,670 (1,872 ) Increase related to current year tax positions 8,392 9,741 7,028 Settlements (7,648 ) — — Decrease related to lapse of applicable statute of limitations (1,062 ) (162 ) (541 ) Balance, end of year $ 60,787 $ 67,022 $ 55,773 The Company had reserves of $38 million and $40 million as of September 29, 2018 and September 30, 2017 , respectively, for the payment of interest and penalties relating to unrecognized tax benefits. During fiscal year 2018, the Company recognized a net income tax benefit for interest and penalties of $3 million compared to a net income tax expense of $4 million in 2017 and $4 million in 2016 . The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. Should the Company be able to ultimately recognize all of these uncertain tax positions, it would result in a benefit to net income and a reduction of the effective tax rate. The Company conducts business globally and, as a result, files income tax returns in the United States federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world. The Company is currently being audited by the Internal Revenue Service for tax years 2008 through 2010. To the extent the final tax liabilities are different from the amounts accrued, this would result in an increase or decrease in net operating loss carryforwards which would impact tax expense. Additionally, the Company is being audited by various state tax agencies and certain foreign countries. To the extent the final tax liabilities are different from the amounts accrued, the increases or decreases would be recorded as income tax expense or benefit in the consolidated statements of operations. Although the Company believes that the resolution of these audits will not have a material adverse impact on the Company’s results of operations, the outcome is subject to uncertainty. In general, the Company is no longer subject to United States federal or state income tax examinations for years before 2003, and to foreign examinations for years prior to 2003 in its major foreign jurisdictions. Although the timing of the resolution of audits is highly uncertain, it is reasonably possible that the balance of gross unrecognized tax benefits could significantly change in the next 12 months. However, given the number of years subject to audit and the number of matters being examined, the Company is unable to estimate the full range of possible adjustments to the balance of gross unrecognized tax benefits. |
Note 11 Earnings Per Share
Note 11 Earnings Per Share | 12 Months Ended |
Sep. 29, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Earnings Per Share Basic and diluted earnings per share amounts are calculated by dividing net income by the weighted average number of shares of common stock outstanding during the period, as follows: Year Ended September 29, September 30, October 1, 2016 (In thousands, except per share amounts) Numerator: Net income (loss) $ (95,533 ) $ 138,833 $ 187,838 Denominator: Weighted average common shares outstanding 69,833 74,481 75,094 Effect of dilutive stock options and restricted stock units — 3,647 3,693 Denominator for diluted earnings per share 69,833 78,128 78,787 Net income (loss) per share: Basic $ (1.37 ) $ 1.86 $ 2.50 Diluted $ (1.37 ) $ 1.78 $ 2.38 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 September 29, 2018 September 30, 2017 October 1, 2016 Potentially dilutive securities: (In thousands) Employee stock options 2,061 — 477 Restricted stock units 1,460 6 3 Total 3,521 6 480 Had the Company reported net income in 2018 instead of a net loss, 3 million potentially dilutive securities would have been included in the calculation of diluted earnings per share. |
Note 12 Stockholders' Equity
Note 12 Stockholders' Equity | 12 Months Ended |
Sep. 29, 2018 | |
Stockholders' Equity Note [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 25.3 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 stock 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 September 29, 2018 , an aggregate of 10.1 million shares were authorized for future issuance under the Company's stock plans, of which 6.6 million of such shares were issuable upon exercise of outstanding options and delivery of shares upon vesting of restricted stock units and 3.5 million shares of common stock were available for future grant. Awards other than stock options and stock appreciation rights reduce common stock available for grant by 1.36 shares for every share of common stock subject to such an award. Awards under the 2009 Plan that expire or are cancelled without delivery of shares generally become available for issuance under the plan. The 2009 Plan will expire as to future grants in January 2019. Stock Repurchase Program During the fourth quarter of 2017, the Board of Directors approved a $200 million stock repurchase plan. The timing of repurchases made under the plan depends upon capital needs to support the growth of the Company's business, market conditions and other factors. Although stock repurchases are intended to increase stockholder value by reducing the number of outstanding shares, repurchases of shares reduce the Company's liquidity. During 2018 , 2017 and 2016 , the Company repurchased 5.0 million shares, 4.3 million shares and 6.8 million of its common stock for $146 million , $160 million and $141 million (including commissions), respectively. As of September 29, 2018 , $108 million remains available under the repurchase programs authorized by the Board of Directors, inclusive of programs authorized by the Board of Directors prior to 2017, subject to limitations contained in the Company’s debt agreements. In addition to the repurchases discussed above, the Company repurchased 334,000 , 549,000 and 46,000 shares of its common stock during 2018 , 2017 , and 2016 , respectively, in settlement of employee tax withholding obligations due upon the vesting of restricted stock units. The Company paid $12 million , $17 million and $1 million , respectively, in conjunction with these purchases. Accumulated Other Comprehensive Income Accumulated other comprehensive income, net of tax as applicable, consisted of the following: As of September 29, September 30, (In thousands) Foreign currency translation adjustments $ 87,889 $ 90,952 Unrealized holding losses on derivative financial instruments (335 ) (212 ) Unrecognized net actuarial loss and unrecognized transition cost for benefit plans (13,610 ) (13,946 ) Total $ 73,944 $ 76,794 |
Note 13 Acquisitions
Note 13 Acquisitions | 12 Months Ended |
Sep. 29, 2018 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Acquisitions Fiscal 2016 Acquisitions During the second quarter of 2016, the Company purchased all of the outstanding stock of a privately-held provider of data storage software solutions targeted at OEM's and systems integrators. Goodwill arising from the acquisition is tax deductible and reflects the Company's expectation that the acquisition will enable the Company to broaden its relationships with certain of its existing key customers, realize synergies associated with leveraging the acquisition to develop other software solutions to become a provider of a full storage systems solution, and leverage the acquiree's knowledgeable and experienced workforce. Goodwill and identifiable assets are recorded in other non-current assets on the consolidated balance sheets. Identifiable intangible assets are being amortized over three to four years. In addition, the Company acquired a manufacturing facility and related assets from a customer in the industrial end market during the second quarter of 2016. Consideration paid was less than the fair values of assets acquired, resulting in a bargain purchase gain of $1.6 million , net of tax, which was recorded in interest and other, net on the consolidated statements of operations in the second quarter of 2016. The Company reassessed, in the second quarter of 2016, the recognition and measurement of identifiable assets and liabilities acquired and concluded that all acquired assets and liabilities were recognized and that the valuation procedures and resulting estimates of fair values were appropriate. The bargain purchase gain resulted from the discount attributable to financing a portion of the purchase price with the acquiree using a non-interest bearing promissory note. Total consideration paid for the above acquisitions was $90 million , consisting of $60 million of cash and non-interest bearing promissory notes with a discounted value of $30 million as of the respective acquisition dates. The Company's allocation of the purchase price was based on management's estimate of the acquisition-date fair values of the tangible and identifiable intangible assets acquired and liabilities assumed, as follows: (In thousands) Current assets, including cash of $1.3 million $ 33,198 Noncurrent assets, including identifiable intangible assets of $7.3 million and goodwill of $30.8 million 62,632 Current liabilities (3,146 ) Noncurrent liabilities (725 ) Total 91,959 Bargain purchase gain, net of tax (1,642 ) Total consideration paid $ 90,317 There were no measurement-period adjustments for either of these two acquisitions during the one-year period subsequent to the date of acquisition. |
Note 14 Business Segment, Geogr
Note 14 Business Segment, Geographic and Customer Information | 12 Months Ended |
Sep. 29, 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: 1) Integrated Manufacturing Solutions (IMS). IMS is a reportable segment consisting of printed circuit board assembly and test, final system assembly and test, and direct order fulfillment. 2) Components, Products and Services (CPS). Components include interconnect systems (printed circuit board fabrication, backplane, cable assemblies and plastic injection molding) and mechanical systems (enclosures and precision machining). Products include memory, RF, optical and microelectronics and enterprise solutions from the Company's Viking Technology division; defense and aerospace products from SCI Technology; and cloud-based manufacturing execution software from the Company's 42Q division. Services include design, engineering, logistics and repair services. The Company evaluated its operating segments to determine whether they can be aggregated into reportable segments. Factors considered in this evaluation were similarity of economic characteristics, products, production processes, type or classes of customers, distribution methods and regulatory environments. The Company determined that it has only one reportable segment - IMS, which generated approximately 80% of the Company's total revenue in 2018 . The Company's CPS business consists of multiple operating segments which, based on this evaluation, do not meet the quantitative threshold for being presented as reportable segments. Therefore, financial information for these operating segments is presented in a single category entitled “Components, Products and Services". The accounting policies for each segment are the same as those disclosed by the Company for its consolidated financial statements. Intersegment sales consist primarily of sales of components from CPS to IMS. The Company's chief operating decision making group is the Chief Executive Officer and Chief Financial Officer and they allocate resources and assess performance of operating segments based on a measure of revenue and gross profit that excludes items not directly related to the Company's ongoing business operations. These items are typically either non-recurring or non-cash in nature. Segment information is as follows: Year Ended September 29, 2018 September 30, 2017 October 1, 2016 (In thousands) Gross sales: IMS $ 5,847,958 $ 5,645,499 $ 5,297,740 CPS 1,458,754 1,422,264 1,372,412 Intersegment revenue (196,582 ) (199,144 ) (188,971 ) Net Sales $ 7,110,130 $ 6,868,619 $ 6,481,181 Gross Profit: IMS $ 352,361 $ 404,350 $ 397,309 CPS 117,835 (1 ) 127,154 121,696 Total 470,196 531,504 519,005 Unallocated items (2) (6,413 ) (11,593 ) (4,723 ) Total $ 463,783 $ 519,911 $ 514,282 Depreciation and amortization: IMS $ 76,071 $ 74,769 $ 66,036 CPS 30,048 31,109 33,062 Total 106,119 105,878 99,098 Unallocated corporate items (3) 12,701 12,873 12,812 Total $ 118,820 $ 118,751 $ 111,910 Capital expenditures (receipt basis): IMS $ 87,421 $ 106,000 $ 83,084 CPS 28,696 30,512 21,852 Total 116,117 136,512 104,936 Unallocated corporate items (3) 2,480 4,122 5,624 Total $ 118,597 $ 140,634 $ 110,560 (1) During the fourth quarter of fiscal 2018, the Company recorded a $12.5 million pre-tax adjustment to correct errors that occurred from fiscal 2016 through the third quarter of fiscal 2018 with respect to the accounting for certain long-term contracts in one of the Company’s CPS divisions. These errors are immaterial to all prior periods. The impact of this out-of-period adjustment on the full year fiscal 2018 was $11.0 million which is also immaterial to fiscal 2018. (2) For purposes of evaluating segment performance, management excludes certain items from its measures of revenue and gross profit. These items consist of stock-based compensation expense, amortization of intangible assets, charges or credits resulting from distressed customers and acquisition-related items. (3) Primarily related to selling, general and administration functions. Segment assets, consisting of accounts receivable, inventories and fixed assets, are substantially proportional to segment sales. Information by geographic segment, determined based on the country in which a product is manufactured or a service is provided, was as follows: Year Ended September 29, September 30, October 1, (In thousands) Net sales: United States $ 1,338,359 $ 1,234,739 $ 1,045,998 Mexico 2,067,956 1,935,634 1,869,651 China 1,196,178 1,336,118 1,421,693 Malaysia 687,810 743,359 512,288 Other international 1,819,827 1,618,769 1,631,551 Total $ 7,110,130 $ 6,868,619 $ 6,481,181 Percentage of net sales represented by ten largest customers 53.0 % 52.9 % 52.0 % Number of customers representing 10% or more of net sales 1 2 1 As of September 29, September 30, (In thousands) Property, plant and equipment, net: United States $ 161,889 $ 165,254 Mexico 187,128 187,094 China 74,438 80,787 Other international 219,458 207,140 Total $ 642,913 $ 640,275 |
Note 15 Stock-Based Compensatio
Note 15 Stock-Based Compensation | 12 Months Ended |
Sep. 29, 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: Year Ended September 29, September 30, October 1, (In thousands) Stock options $ 1,779 $ 1,640 $ 3,943 Restricted stock units, including performance-based awards 31,046 36,280 22,964 Total $ 32,825 $ 37,920 $ 26,907 Stock-based compensation expense was recognized as follows: Year Ended September 29, September 30, October 1, (In thousands) Cost of sales $ 8,187 $ 8,959 $ 7,350 Selling, general & administrative 25,206 28,169 18,903 Research & development (568 ) 792 654 Total $ 32,825 $ 37,920 $ 26,907 Restricted Stock Units The Company grants restricted stock units to executive officers, directors and certain management employees. These units vest over periods ranging from one to four years or based upon achievement of specified performance criteria and are automatically exchanged for shares of common stock at the vesting date. Compensation expense associated with these units is recognized ratably over the vesting period. Activity with respect to the Company's restricted stock units was as follows: Number of Shares Weighted Grant-Date Fair Value Per Share ($) Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value ($) (In thousands) (In thousands) Outstanding as of October 3, 2015 2,979 16.52 1.52 59,843 Granted 1,698 23.22 Vested/Forfeited/Cancelled (679 ) 15.33 Outstanding as of October 1, 2016 3,998 19.57 1.35 110,183 Granted 1,378 34.11 Vested/Forfeited/Cancelled (2,017 ) 16.20 Outstanding as of September 30, 2017 3,359 27.56 1.51 124,800 Granted 1,102 33.51 Vested/Forfeited/Cancelled (1,158 ) 25.31 Outstanding as of September 29, 2018 3,303 30.33 1.21 97,913 Expected to vest as of September 29, 2018 2,522 29.66 1.22 74,768 The fair value of restricted stock units that vested during the year was $36 million for 2018 , $53 million for 2017 and $10 million for 2016 . As of September 29, 2018 , unrecognized compensation expense of $28 million is expected to be recognized over a weighted average period of 1.3 years. Additionally, as of September 29, 2018 , unrecognized compensation expense related to performance-based restricted stock units for which achievement of vesting criteria is not currently considered probable was $11 million . |
Note 16 Employee Benefit Plans
Note 16 Employee Benefit Plans | 12 Months Ended |
Sep. 29, 2018 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Employee Benefit Plans The Company has various defined contribution retirement plans that cover the majority of its domestic employees. These retirement plans permit participants to elect to have contributions made to the retirement plans in the form of salary deferrals. Under these retirement plans, the Company may match a portion of employee contributions. Amounts contributed by the Company were not material for any period presented herein. The Company sponsors a deferred compensation plan for eligible employees that allows participants to defer payment of all or part of their compensation. Deferrals under this plan were $5 million for both 2018 and 2017 . Assets and liabilities associated with these plans were $35 million and $35 million , respectively, as of September 29, 2018 and $27 million and $29 million , respectively, as of September 30, 2017 . These amounts are recorded in other non-current assets and other long-term liabilities on the consolidated balance sheets. Defined benefit plans covering certain employees in the United States and Canada were frozen in 2001. Employees who had not yet vested will continue to be credited with service until vesting occurs, but no additional benefits will accrue. The Company also provides defined benefit pension plans in certain other countries. The assumptions used for calculating the pension benefit obligations for non-U.S. plans depend on the local economic environment and regulations. The measurement date for the Company's defined benefit plans is September 29, 2018 . Changes in benefit obligations for the defined benefit plans described above were as follows (in thousands): As of September 29, 2018 As of September 30, 2017 As of October 1, 2016 Change in Benefit Obligations U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Beginning projected benefit obligation $ 24,743 $ 48,873 $ 28,375 $ 53,656 $ 26,441 $ 48,816 Service cost — 1,331 — 1,210 — 1,569 Interest cost 729 1,333 737 1,088 871 1,341 Actuarial gain (loss) (1,199 ) 1,179 (1,987 ) (5,609 ) 3,456 3,244 Benefits paid (716 ) (1,571 ) (709 ) (1,499 ) (718 ) (1,266 ) Other (1) (971 ) (215 ) (1,673 ) 27 (1,675 ) (48 ) Ending projected benefit obligation $ 22,586 $ 50,930 $ 24,743 $ 48,873 $ 28,375 $ 53,656 Ending accumulated benefit obligation $ 22,586 $ 47,149 $ 24,743 $ 45,532 $ 28,375 $ 48,371 (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 September 29, September 30, September 29, September 30, Discount rate 3.77 % 3.05 % 2.78 % 2.78 % Rate of compensation increases — % — % 2.08 % 1.98 % 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 defined benefit plans described above were as follows (in thousands): As of September 29, 2018 As of September 30, 2017 As of October 1, 2016 Change in Plan Assets U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Beginning fair value $ 16,930 $ 26,993 $ 17,594 $ 26,045 $ 18,646 $ 27,079 Actual return 1,086 (8 ) 1,598 590 1,341 (461 ) Employer contributions 455 710 120 695 — 607 Benefits paid (716 ) (1,571 ) (709 ) (1,499 ) (718 ) (1,266 ) Other (1) (971 ) (10 ) (1,673 ) 1,162 (1,675 ) 86 Ending fair value $ 16,784 $ 26,114 $ 16,930 $ 26,993 $ 17,594 $ 26,045 Underfunded status $ (5,802 ) $ (24,816 ) $ (7,813 ) $ (21,880 ) $ (10,781 ) $ (27,611 ) (1) Includes miscellaneous items such as settlements, foreign exchange rate movements, etc. 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 September 29, 2018 September 30, 2017 Target September 29, 2018 September 30, 2017 Equity securities 51 % 51.7 % 52.8 % 20 % 27.5 % 30.0 % Debt securities 49 % 48.3 % 47.2 % 80 % 69.3 % 67.5 % Cash — % — % — % — % 3.2 % 2.5 % 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 September 29, 2018 , 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 September 29, 2018 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 September 29, 2018 As of September 30, 2017 As of October 1, 2016 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 $ — $ (1,430 ) $ — $ (1,117 ) $ — $ (1,260 ) Non-current liabilities (5,802 ) (23,386 ) (7,813 ) (20,763 ) (10,781 ) (26,351 ) Net liability recognized on consolidated balance sheets $ (5,802 ) $ (24,816 ) $ (7,813 ) $ (21,880 ) $ (10,781 ) $ (27,611 ) Amounts recognized in AOCI (pre-tax) consist primarily of unrecognized net actuarial losses and are as follows (in thousands): As of September 29, 2018 September 30, 2017 As of October 1, 2016 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Accumulated other comprehensive loss $ 2,531 $ 11,401 $ 4,484 $ 10,076 $ 7,801 $ 16,841 Estimated amortization from accumulated other comprehensive income into net periodic benefit cost in 2019 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 September 29, September 30, September 29, September 30, Discount rate 3.05 % 2.71 % 2.78 % 2.32 % Expected return on plan assets 4.50 % 4.50 % 1.90 % 1.70 % Rate of compensation increases — % — % 1.98 % 2.72 % The expected long-term rate of return on assets for the U.S. and non-U.S. pension plans used in these calculations is developed considering 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. Estimated future benefit payments are as follows: Pension Benefits (In thousands) 2019 $ 7,779 2020 $ 4,349 2021 $ 4,276 2022 $ 4,401 2023 $ 4,631 Years 2024 through 2028 $ 21,430 |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Sep. 29, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts Disclosure [Text Block] | The financial statement Schedule II-VALUATION AND QUALIFYING ACCOUNTS is filed as part of this Form 10-K. SANMINA CORPORATION SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS Balance at Beginning of Period Charged to Operations Charges Utilized Balance at End of Period (In thousands) Allowances for Doubtful Accounts, Product Returns and Other Net Sales Adjustments Fiscal year ended October 1, 2016 $ 13,439 $ 1,642 $ — $ 15,081 Fiscal year ended September 30, 2017 $ 15,081 $ (747 ) $ — $ 14,334 Fiscal year ended September 29, 2018 $ 14,334 $ (2,123 ) $ — $ 12,211 |
Note 1 Organization of Sanmina
Note 1 Organization of Sanmina Accounting Policies (Policies) | 12 Months Ended |
Sep. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fiscal Period, Policy [Policy Text Block] | Fiscal Year. The Company operates on a 52 or 53 week year ending on the Saturday nearest September 30. Fiscal 2018 , 2017 and 2016 were each 52 weeks. All references to years relate to fiscal years unless otherwise noted. |
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block] | 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_2
Note 2 Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 29, 2018 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | Management Estimates and Uncertainties. The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates made in preparing the consolidated financial statements relate to allowances for accounts receivable; provisions for excess and obsolete inventories, product returns, warranties, environmental matters, and legal exposures; determining the recoverability of claims made in connection with customer bankruptcies; determining liabilities for uncertain tax positions; determining the realizability of deferred tax assets; determining fair values of tangible and intangible assets for purposes of business combinations and impairment tests; determining fair values of contingent consideration and equity awards; and determining forfeiture rates for purposes of calculating stock compensation expense. Actual results could differ materially from these estimates. |
Financial Instruments And Concentration of Credit Risk [Policy Text Block] | Financial Instruments and Concentration of Credit Risk. Financial instruments consist primarily of cash and cash equivalents, accounts receivable, foreign currency forward contracts, interest rate swap agreement, accounts payable and debt obligations. With the exception of certain of the Company's debt obligations (refer to Note 4. Financial Instruments), the fair value of these financial instruments approximates their carrying amount as of September 29, 2018 and September 30, 2017 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 $12 million and $14 million as of September 29, 2018 and September 30, 2017 , respectively, for uncollectible accounts, product returns and other net sales adjustments. One of the Company's most significant risks is the ultimate realization of its accounts receivable. This risk is mitigated by ongoing credit evaluations of customers and frequent contact with customers, especially the most significant customers, which enable the Company to monitor changes in its customers' business operations and respond accordingly. To establish the allowance for doubtful accounts, the Company estimates credit risk associated with accounts receivable by considering the creditworthiness of its customers, past experience, specific facts and circumstances, and the overall economic climate in industries that it serves. To establish the allowance for product returns and other adjustments, the Company primarily utilizes historical data. |
Transfers and Servicing of Financial Assets, Policy [Policy Text Block] | Accounts Receivable Sale. During 2018, the Company entered into a Receivables Purchase Agreement (the “RPA”) with certain third-party banking institutions for the sale of trade receivables generated from sales to certain customers. A maximum of $540 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, as in effect from time to time. The Company does not service trade receivables sold under these other programs. Under each of the programs noted above, the Company sells its entire interest in a trade receivable for 100% of face value, less a discount. |
Inventory, Policy [Policy Text Block] | Inventories. Inventories are stated at the lower of cost (first-in, first-out method) and net realizable value. Cost includes labor, materials and manufacturing overhead. Provisions are made to reduce excess and obsolete inventories to their estimated net realizable values. The ultimate realization of inventory carrying amounts is primarily affected by changes in customer demand. Inventory provisions are established based on forecasted demand, past experience with specific customers, the age and nature of the inventory, the ability to redistribute inventory to other programs or back to suppliers, and whether customers are contractually obligated and have the ability to pay for the related inventory. Certain payments received from customers for inventory held by the Company are recorded as a reduction of inventory. |
Property, Plant and Equipment, Policy [Policy Text Block] | Long-lived Assets. Property, plant and equipment are stated at cost or, in the case of property and equipment acquired through business combinations, at fair value as of the acquisition date. Depreciation is provided on a straight-line basis over 20 to 40 years for buildings and 3 to 15 years for machinery, equipment, furniture and fixtures. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or useful life of the asset . The Company reviews property, plant and equipment and intangible assets subject to amortization for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. An asset group is the unit of accounting which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets. An asset or asset group is considered impaired if its carrying amount exceeds the undiscounted future net cash flows the asset or asset group is expected to generate. If an asset or asset group is considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset or asset group exceeds its fair value. For asset groups for which the primary asset is a building, the Company estimates fair value based on data provided by commercial real estate brokers. For other asset groups, the Company estimates fair value based on projected discounted future net cash flows. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill. Goodwill is tested for impairment on an annual basis and whenever events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable, as assessed at a reporting unit level. If, based on a qualitative assessment, the Company determines it is more-likely-than-not that goodwill is impaired, the Company performs a quantitative assessment to determine whether the fair value of our reporting unit is less than its carrying value and, if so, an impairment adjustment must be recorded up to the carrying value of goodwill. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation. For foreign subsidiaries using the local currency as their functional currency, assets and liabilities are translated to U.S. dollars at exchange rates in effect at the balance sheet date and income and expenses are translated at average exchange rates. The effects of these translation adjustments are reported in stockholders' equity as a component of accumulated other comprehensive income ("AOCI"). For all entities, remeasurement adjustments for non-functional currency monetary assets and liabilities are included in other income, net in the accompanying consolidated statements of operations. Remeasurement gains and losses arising from long-term intercompany loans denominated in a currency other than an entity's functional currency are recorded in AOCI if repayment of the loan is not anticipated in the foreseeable future. |
Derivatives, Policy [Policy Text Block] | Derivative Instruments and Hedging Activities. The Company conducts business on a global basis in numerous currencies and certain of the Company's outstanding debt has a variable interest rate. Therefore, the Company is exposed to movements in foreign currency exchange rates and interest rates. The Company uses derivatives, such as foreign currency forward contracts and interest rate swaps, to minimize the volatility of earnings and cash flows associated with changes in foreign currency exchange rates and interest rates. The Company accounts for derivative instruments and hedging activities in accordance with ASC Topic 815, Derivatives and Hedging, which requires each derivative instrument to be recorded on the consolidated balance sheets at its fair value as either an asset or a liability. If a derivative is designated as a cash flow hedge, the effective portion of changes in the fair value of the derivative is recorded in stockholders' equity as a separate component of AOCI and is recognized in earnings when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges are immediately recognized in earnings. If a derivative is designated as a fair value hedge, changes in the fair value of the derivative and of the item being hedged are recognized in earnings in the current period. Derivative instruments are entered into for periods of time consistent with the related underlying exposures and are not entered into for speculative purposes. At the inception of a hedge, the Company documents all relationships between derivative instruments and related hedged items, as well as its risk-management objectives and strategies for the hedging transaction. The Company's foreign currency forward contracts and interest rate swaps potentially expose the Company to credit risk to the extent the counterparties may be unable to meet the terms of the agreement. The Company minimizes such risk by seeking high quality counterparties. |
Revenue 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 operations. 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. |
New Accounting Pronouncements [Text Block] | Recent Accounting Pronouncements Adopted in Fiscal Year 2018 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 value of goodwill allocated to that reporting unit. The Company adopted this ASU in fiscal 2018 at the time of its annual impairment review and recognized a $31 million goodwill impairment charge because the fair value of one of its CPS operating segments was below its carrying value. This impairment reduced goodwill to zero for this particular operating segment. As of September 29, 2018 , the Company has goodwill of $29 million , which is recorded in other noncurrent assets on the consolidated balance sheets. 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 statements 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 June 2018, the FASB issued ASU 2018-07 "Improvements to Non-employee Share-Based Payment Accounting (Topic 718)". The ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from non-employees. The standard aligns measurement and classification guidance for share-based payments to non-employees with the guidance applicable to employees. This ASU is effective for the Company at the beginning of fiscal 2020, including interim periods within that reporting period, although early adoption is permitted. The Company does not expect the impact of adoption to be significant. In February 2018, the FASB issued ASU 2018-02, "Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income", which allows companies to reclassify stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act 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, although early 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 although early adoption is permitted. The Company is currently evaluating the potential impact of this ASU and when to adopt it. 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 2017-01, "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, although 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 sheets, but is still evaluating the impact to its consolidated statements of operations. 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. 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. The Company has determined that the new standard will result in a significant change to the timing of the Company’s recognition of revenue. Under the current accounting standard, the majority of the Company’s revenue is recognized at a point-in-time, which is generally upon delivery (transfer of title and risks of ownership) of a product to a customer or completion of a service for a customer. Under the new standard, for contracts in existence as of the date of adoption, the majority of the Company’s revenue is expected to be recognized on an "over time" basis, which will generally be over the period during which the Company manufactures a product for a customer or delivers a service to a customer. Despite earlier recognition of revenue under the new standard, the Company does not expect the new standard to materially impact its revenue or gross profit on a rollover basis in periods after adoption. However, the new standard is expected to have a material impact to the Company's consolidated balance sheets upon initial adoption, primarily because of a reduction in finished goods and work-in-process inventories for revenue that will be recognized on an over time basis under the new standard and an associated increase in contract assets for amounts recognized as revenue in advance of invoicing a customer. The Company estimates the net impact upon adoption of the new standard will be an increase to beginning retained earnings as of September 29, 2018 of $10 million to $40 million . Other than as noted above, the Company does not currently expect adoption of the new standard to materially impact the Company’s consolidated financial statements. However, the Company is continuing to assess the impact of adopting the new standard, including expanded disclosure requirements, on its consolidated financial statements. |
Note 3 Balance Sheet and Inco_2
Note 3 Balance Sheet and Income Statement Items (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Balance Sheet and Income Statement Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | As of September 29, September 30, (In thousands) Raw materials $ 1,139,585 $ 834,694 Work-in-process 132,803 106,914 Finished goods 101,616 110,061 Total $ 1,374,004 $ 1,051,669 |
Property, Plant and Equipment [Table Text Block] | As of September 29, September 30, (In thousands) Machinery and equipment $ 1,476,903 $ 1,452,648 Land and buildings 617,258 607,701 Leasehold improvements 56,190 55,688 Furniture and fixtures 23,911 22,989 Construction in progress 47,725 37,864 2,221,987 2,176,890 Less: Accumulated depreciation and amortization (1,579,074 ) (1,536,615 ) Property, plant and equipment, net $ 642,913 $ 640,275 |
Schedule of Intangible Assets and Goodwill [Table Text Block] | As of September 29, September 30, (In thousands) Goodwill - beginning of year $ 59,126 $ 59,126 Impairment (30,610 ) — Goodwill - end of year $ 28,516 $ 59,126 Intangible assets - beginning of year $ 9,218 $ 16,498 Amortization (6,516 ) (7,280 ) Intangible assets - end of year $ 2,702 $ 9,218 |
Schedule of Other Operating Cost and Expense, by Component [Table Text Block] | Year Ended September 29, September 30, October 1, (In thousands) Amortization of intangible assets $ 2,908 $ 3,672 $ 3,446 Asset impairments — 4,600 1,000 Gain on sale of long-lived assets — (1,451 ) — $ 2,908 $ 6,821 $ 4,446 |
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | Year ended September 29, September 30, October 1, (In thousands) Foreign exchange gains / (losses) $ 766 $ 4,709 $ (415 ) Bargain purchase gain, net of tax — — 1,642 Other, net 3,798 2,973 2,836 Total $ 4,564 $ 7,682 $ 4,063 |
Note 4 Derivative Financial Ins
Note 4 Derivative Financial Instruments (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Financial Instruments [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | As of September 29, 2018 September 30, 2017 Derivatives Designated as Accounting Hedges: Notional amount (in thousands) $116,992 $105,523 Number of contracts 54 58 Derivatives Not Designated as Accounting Hedges: Notional amount (in thousands) $356,076 $302,944 Number of contracts 56 46 |
Note 6 Debt (Tables)
Note 6 Debt (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | As of September 29, September 30, (In thousands) Senior secured notes due 2019 $ 375,000 $ 375,000 Non-interest bearing promissory notes 17,667 19,863 Total long-term debt 392,667 394,863 Less: Current portion of non-interest bearing promissory notes 3,321 3,416 Current portion of long-term debt 375,000 — Long-term debt $ 14,346 $ 391,447 |
Note 8 Commitment and Conting_2
Note 8 Commitment and Contingencies (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lessee, Operating Lease, Disclosure [Table Text Block] | (In thousands) 2019 $ 21,188 2020 14,647 2021 13,036 2022 9,635 2023 6,038 Thereafter 21,220 Total $ 85,764 |
Note 9 Restructuring and Relate
Note 9 Restructuring and Related Activities (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs [Table Text Block] | Estimated Costs to Implement Year ended September 29, 2018 Q1 FY18 Plan: (In thousands) Severance costs (approximately 2,900 employees) $ 27,700 $ 26,425 Other exit costs (recognized as incurred) 7,300 4,984 Total 35,000 31,409 Severance reimbursement (10,000 ) (10,000 ) Total - Q1 FY18 Plan $ 25,000 21,409 Other plans 7,737 Total - all plans $ 29,146 |
Note 10 Income Tax (Tables)
Note 10 Income Tax (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Year Ended September 29, September 30, October 1, (In thousands) Domestic $ 16,215 $ 128,493 $ 138,138 Foreign 81,324 84,987 66,479 Total $ 97,539 $ 213,480 $ 204,617 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year Ended September 29, September 30, October 1, (In thousands) Federal: Current $ (122 ) $ (2,524 ) $ 490 Deferred 170,994 37,543 (4,550 ) State: Current 32 1,648 (265 ) Deferred (3,672 ) 4,204 (5,141 ) Foreign: Current 20,287 37,076 32,427 Deferred 5,553 (3,300 ) (6,182 ) Total provision for income taxes $ 193,072 $ 74,647 $ 16,779 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | As of September 29, 2018 September 30, 2017 (In thousands) Deferred tax assets: U.S. net operating loss carryforwards $ 218,710 $ 338,492 Foreign net operating loss carryforwards 129,866 186,684 Acquisition related intangibles 15,099 13,913 Accruals not currently deductible 45,922 55,582 Property, plant and equipment 22,596 20,746 Tax credit carryforwards 13,825 11,832 Reserves not currently deductible 14,420 21,710 Stock compensation expense 13,645 21,151 Unrealized losses 3,145 4,475 Other 2,789 3,949 Valuation allowance (113,559 ) (163,267 ) Total deferred tax assets 366,458 515,267 Deferred tax liabilities on undistributed earnings (23,986 ) (36,027 ) Other deferred tax liabilities (3,802 ) (8,140 ) Net deferred tax assets $ 338,670 $ 471,100 Recorded as: Non-current deferred tax assets $ 344,124 $ 476,554 Non-current deferred tax liabilities (5,454 ) (5,454 ) Net deferred tax assets $ 338,670 $ 471,100 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended September 29, September 30, October 1, Federal tax at statutory tax rate 24.50 % 35.00 % 35.00 % Tax Act impact 165.16 — — Effect of foreign operations 7.92 1.89 5.35 Foreign income inclusion 0.17 0.26 9.43 Permanent items (1.37 ) 2.10 (0.29 ) Release of valuation allowance — — (47.10 ) Discrete benefit of foreign restructuring — (4.92 ) — Other 0.32 (2.10 ) 4.61 State income taxes, net of federal benefit 1.24 2.72 1.18 Effective tax rate 197.94 % 34.95 % 8.18 % |
Summary of Income Tax Contingencies [Table Text Block] | Year Ended September 29, September 30, October 1, (In thousands) Balance, beginning of year $ 67,022 $ 55,773 $ 51,158 Increase (decrease) related to prior year tax positions (5,917 ) 1,670 (1,872 ) Increase related to current year tax positions 8,392 9,741 7,028 Settlements (7,648 ) — — Decrease related to lapse of applicable statute of limitations (1,062 ) (162 ) (541 ) Balance, end of year $ 60,787 $ 67,022 $ 55,773 |
Note 11 Earnings Per Share (Tab
Note 11 Earnings Per Share (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year Ended September 29, September 30, October 1, 2016 (In thousands, except per share amounts) Numerator: Net income (loss) $ (95,533 ) $ 138,833 $ 187,838 Denominator: Weighted average common shares outstanding 69,833 74,481 75,094 Effect of dilutive stock options and restricted stock units — 3,647 3,693 Denominator for diluted earnings per share 69,833 78,128 78,787 Net income (loss) per share: Basic $ (1.37 ) $ 1.86 $ 2.50 Diluted $ (1.37 ) $ 1.78 $ 2.38 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | As of September 29, 2018 September 30, 2017 October 1, 2016 Potentially dilutive securities: (In thousands) Employee stock options 2,061 — 477 Restricted stock units 1,460 6 3 Total 3,521 6 480 |
Note 12 Stockholders' Equity (T
Note 12 Stockholders' Equity (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | As of September 29, September 30, (In thousands) Foreign currency translation adjustments $ 87,889 $ 90,952 Unrealized holding losses on derivative financial instruments (335 ) (212 ) Unrecognized net actuarial loss and unrecognized transition cost for benefit plans (13,610 ) (13,946 ) Total $ 73,944 $ 76,794 |
Note 13 Acquisitions (Tables)
Note 13 Acquisitions (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | (In thousands) Current assets, including cash of $1.3 million $ 33,198 Noncurrent assets, including identifiable intangible assets of $7.3 million and goodwill of $30.8 million 62,632 Current liabilities (3,146 ) Noncurrent liabilities (725 ) Total 91,959 Bargain purchase gain, net of tax (1,642 ) Total consideration paid $ 90,317 |
Note 14 Business Segment, Geo_2
Note 14 Business Segment, Geographic and Customer Information (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Year Ended September 29, 2018 September 30, 2017 October 1, 2016 (In thousands) Gross sales: IMS $ 5,847,958 $ 5,645,499 $ 5,297,740 CPS 1,458,754 1,422,264 1,372,412 Intersegment revenue (196,582 ) (199,144 ) (188,971 ) Net Sales $ 7,110,130 $ 6,868,619 $ 6,481,181 Gross Profit: IMS $ 352,361 $ 404,350 $ 397,309 CPS 117,835 (1 ) 127,154 121,696 Total 470,196 531,504 519,005 Unallocated items (2) (6,413 ) (11,593 ) (4,723 ) Total $ 463,783 $ 519,911 $ 514,282 Depreciation and amortization: IMS $ 76,071 $ 74,769 $ 66,036 CPS 30,048 31,109 33,062 Total 106,119 105,878 99,098 Unallocated corporate items (3) 12,701 12,873 12,812 Total $ 118,820 $ 118,751 $ 111,910 Capital expenditures (receipt basis): IMS $ 87,421 $ 106,000 $ 83,084 CPS 28,696 30,512 21,852 Total 116,117 136,512 104,936 Unallocated corporate items (3) 2,480 4,122 5,624 Total $ 118,597 $ 140,634 $ 110,560 (1) During the fourth quarter of fiscal 2018, the Company recorded a $12.5 million pre-tax adjustment to correct errors that occurred from fiscal 2016 through the third quarter of fiscal 2018 with respect to the accounting for certain long-term contracts in one of the Company’s CPS divisions. These errors are immaterial to all prior periods. The impact of this out-of-period adjustment on the full year fiscal 2018 was $11.0 million which is also immaterial to fiscal 2018. (2) For purposes of evaluating segment performance, management excludes certain items from its measures of revenue and gross profit. These items consist of stock-based compensation expense, amortization of intangible assets, charges or credits resulting from distressed customers and acquisition-related items. (3) Primarily related to selling, general and administration functions. |
Revenue from External Customers by Geographic Areas [Table Text Block] | Year Ended September 29, September 30, October 1, (In thousands) Net sales: United States $ 1,338,359 $ 1,234,739 $ 1,045,998 Mexico 2,067,956 1,935,634 1,869,651 China 1,196,178 1,336,118 1,421,693 Malaysia 687,810 743,359 512,288 Other international 1,819,827 1,618,769 1,631,551 Total $ 7,110,130 $ 6,868,619 $ 6,481,181 Percentage of net sales represented by ten largest customers 53.0 % 52.9 % 52.0 % Number of customers representing 10% or more of net sales 1 2 1 |
Schedule of Long-lived Assets by Geographic Areas [Table Text Block] | As of September 29, September 30, (In thousands) Property, plant and equipment, net: United States $ 161,889 $ 165,254 Mexico 187,128 187,094 China 74,438 80,787 Other international 219,458 207,140 Total $ 642,913 $ 640,275 |
Note 15 Stock-Based Compensat_2
Note 15 Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Share-based Compensation [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Year Ended September 29, September 30, October 1, (In thousands) Stock options $ 1,779 $ 1,640 $ 3,943 Restricted stock units, including performance-based awards 31,046 36,280 22,964 Total $ 32,825 $ 37,920 $ 26,907 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Year Ended September 29, September 30, October 1, (In thousands) Cost of sales $ 8,187 $ 8,959 $ 7,350 Selling, general & administrative 25,206 28,169 18,903 Research & development (568 ) 792 654 Total $ 32,825 $ 37,920 $ 26,907 |
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 October 3, 2015 2,979 16.52 1.52 59,843 Granted 1,698 23.22 Vested/Forfeited/Cancelled (679 ) 15.33 Outstanding as of October 1, 2016 3,998 19.57 1.35 110,183 Granted 1,378 34.11 Vested/Forfeited/Cancelled (2,017 ) 16.20 Outstanding as of September 30, 2017 3,359 27.56 1.51 124,800 Granted 1,102 33.51 Vested/Forfeited/Cancelled (1,158 ) 25.31 Outstanding as of September 29, 2018 3,303 30.33 1.21 97,913 Expected to vest as of September 29, 2018 2,522 29.66 1.22 74,768 |
Note 16 Employee Benefit Plans
Note 16 Employee Benefit Plans (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
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 September 29, 2018 As of September 30, 2017 As of October 1, 2016 Change in Benefit Obligations U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Beginning projected benefit obligation $ 24,743 $ 48,873 $ 28,375 $ 53,656 $ 26,441 $ 48,816 Service cost — 1,331 — 1,210 — 1,569 Interest cost 729 1,333 737 1,088 871 1,341 Actuarial gain (loss) (1,199 ) 1,179 (1,987 ) (5,609 ) 3,456 3,244 Benefits paid (716 ) (1,571 ) (709 ) (1,499 ) (718 ) (1,266 ) Other (1) (971 ) (215 ) (1,673 ) 27 (1,675 ) (48 ) Ending projected benefit obligation $ 22,586 $ 50,930 $ 24,743 $ 48,873 $ 28,375 $ 53,656 Ending accumulated benefit obligation $ 22,586 $ 47,149 $ 24,743 $ 45,532 $ 28,375 $ 48,371 (1) Includes miscellaneous items such as settlements, curtailments, foreign exchange rate movements, etc. |
Schedule of Changes in Fair Value of Plan Assets [Table Text Block] | As of September 29, 2018 As of September 30, 2017 As of October 1, 2016 Change in Plan Assets U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Beginning fair value $ 16,930 $ 26,993 $ 17,594 $ 26,045 $ 18,646 $ 27,079 Actual return 1,086 (8 ) 1,598 590 1,341 (461 ) Employer contributions 455 710 120 695 — 607 Benefits paid (716 ) (1,571 ) (709 ) (1,499 ) (718 ) (1,266 ) Other (1) (971 ) (10 ) (1,673 ) 1,162 (1,675 ) 86 Ending fair value $ 16,784 $ 26,114 $ 16,930 $ 26,993 $ 17,594 $ 26,045 Underfunded status $ (5,802 ) $ (24,816 ) $ (7,813 ) $ (21,880 ) $ (10,781 ) $ (27,611 ) (1) Includes miscellaneous items such as settlements, foreign exchange rate movements, etc. |
Schedule of Allocation of Plan Assets [Table Text Block] | U.S. Non-U.S. Level 1 Level 1 As of As of Target September 29, 2018 September 30, 2017 Target September 29, 2018 September 30, 2017 Equity securities 51 % 51.7 % 52.8 % 20 % 27.5 % 30.0 % Debt securities 49 % 48.3 % 47.2 % 80 % 69.3 % 67.5 % Cash — % — % — % — % 3.2 % 2.5 % Total 100 % 100 % 100 % 100 % 100 % 100 % |
Schedule of Amounts Recognized in Balance Sheet [Table Text Block] | As of September 29, 2018 As of September 30, 2017 As of October 1, 2016 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 $ — $ (1,430 ) $ — $ (1,117 ) $ — $ (1,260 ) Non-current liabilities (5,802 ) (23,386 ) (7,813 ) (20,763 ) (10,781 ) (26,351 ) Net liability recognized on consolidated balance sheets $ (5,802 ) $ (24,816 ) $ (7,813 ) $ (21,880 ) $ (10,781 ) $ (27,611 ) |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | As of September 29, 2018 September 30, 2017 As of October 1, 2016 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Accumulated other comprehensive loss $ 2,531 $ 11,401 $ 4,484 $ 10,076 $ 7,801 $ 16,841 |
Schedule of Expected Benefit Payments [Table Text Block] | Pension Benefits (In thousands) 2019 $ 7,779 2020 $ 4,349 2021 $ 4,276 2022 $ 4,401 2023 $ 4,631 Years 2024 through 2028 $ 21,430 |
Projected Benefit Obligation [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Assumptions Used [Table Text Block] | U.S. Pensions Non-U.S. Pensions As of As of September 29, September 30, September 29, September 30, Discount rate 3.77 % 3.05 % 2.78 % 2.78 % Rate of compensation increases — % — % 2.08 % 1.98 % |
Benefit Costs [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Assumptions Used [Table Text Block] | U.S. Pensions Non-U.S. Pensions September 29, September 30, September 29, September 30, Discount rate 3.05 % 2.71 % 2.78 % 2.32 % Expected return on plan assets 4.50 % 4.50 % 1.90 % 1.70 % Rate of compensation increases — % — % 1.98 % 2.72 % |
Note 1 Organization of Sanmin_2
Note 1 Organization of Sanmina Segment Information (Details) | 12 Months Ended |
Sep. 29, 2018 | |
Segment Reporting [Abstract] | |
Revenue percentage generated by reportable segment | 80.00% |
Note 2 Accounts Receivable (Det
Note 2 Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Sep. 30, 2017 |
Accounts Receivable, Net [Abstract] | ||
Accounts receivable allowances | $ 12,211 | $ 14,334 |
Note 2 Accounts Receivable Sale
Note 2 Accounts Receivable Sale Program (Details) $ in Millions | 12 Months Ended |
Sep. 29, 2018USD ($) | |
Transfer of Financial Assets Accounted for as Sales [Line Items] | |
Percentage of Face Value of Receivable Sold | 100.00% |
RPA [Member] | |
Transfer of Financial Assets Accounted for as Sales [Line Items] | |
Maximum Accounts Receivable Sale Capacity | $ 540 |
Note 2 Property Plant and Equip
Note 2 Property Plant and Equipment (Details) | 12 Months Ended |
Sep. 29, 2018 | |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Depreciation Methods | straight-line basis over the shorter of the lease term or useful life of the asset |
Minimum | Building | |
Property, Plant and Equipment [Line Items] | |
Useful Life In Years | 20 years |
Minimum | Machinery, Equipment, Furniture and Fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful Life In Years | 3 years |
Maximum | Building | |
Property, Plant and Equipment [Line Items] | |
Useful Life In Years | 40 years |
Maximum | Machinery, Equipment, Furniture and Fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful Life In Years | 15 years |
Note 2 New Accounting Pronounce
Note 2 New Accounting Pronouncement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Accounting Standard Update [Line Items] | ||||
Goodwill impairment | $ 30,610 | $ 0 | $ 0 | |
Goodwill | $ 28,516 | 28,516 | $ 59,126 | $ 59,126 |
Accounting Standards Update 2017-04 [Member] | ||||
Accounting Standard Update [Line Items] | ||||
Goodwill impairment | 30,610 | |||
Accounting Standards Update 2016-09 [Member] | ||||
Accounting Standard Update [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 43,000 | 43,000 | ||
Minimum | Accounting Standards Update 2014-09 [Member] | ||||
Accounting Standard Update [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 10,000 | |||
Maximum | Accounting Standards Update 2014-09 [Member] | ||||
Accounting Standard Update [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 40,000 |
Note 3 Inventory (Details)
Note 3 Inventory (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Sep. 30, 2017 |
Inventory, Net [Abstract] | ||
Raw materials | $ 1,139,585 | $ 834,694 |
Work-in-process | 132,803 | 106,914 |
Finished goods | 101,616 | 110,061 |
Total | $ 1,374,004 | $ 1,051,669 |
Note 3 Property, Plant and Equi
Note 3 Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 2,221,987 | $ 2,176,890 | |
Accumulated Depreciation and Amortization | (1,579,074) | (1,536,615) | |
Property, plant and equipment, net | 642,913 | 640,275 | |
Depreciation Expense | 112,000 | 111,000 | $ 104,000 |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 1,476,903 | 1,452,648 | |
Land and buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 617,258 | 607,701 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 56,190 | 55,688 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 23,911 | 22,989 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 47,725 | $ 37,864 |
Note 3 Intangibles Assets and G
Note 3 Intangibles Assets and Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Goodwill [Roll Forward] | |||
Goodwill - beginning of year | $ 59,126 | $ 59,126 | |
Impairment | (30,610) | 0 | $ 0 |
Goodwill - end of year | 28,516 | 59,126 | 59,126 |
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets - beginning of year | 9,218 | 16,498 | |
Amortization | (6,516) | (7,280) | |
Intangible assets - end of year | $ 2,702 | $ 9,218 | $ 16,498 |
Note 3 Other Operating Expense
Note 3 Other Operating Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Other Operating Expense [Abstract] | |||
Amortization of intangible assets | $ 2,908 | $ 3,672 | $ 3,446 |
Asset impairments | 0 | 4,600 | 1,000 |
Gain on sale of long-lived assets | 0 | (1,451) | 0 |
Total operating expenses | $ 2,908 | $ 6,821 | $ 4,446 |
Note 3 Other Nonoperating Incom
Note 3 Other Nonoperating Income (Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Components of Other Income (Expense), Net, Nonoperating [Line Items] | |||
Other income, net | $ 4,564 | $ 7,682 | $ 4,063 |
Foreign exchange gains / (losses) | |||
Components of Other Income (Expense), Net, Nonoperating [Line Items] | |||
Other income, net | 766 | 4,709 | (415) |
Bargain purchase gain, net of tax | |||
Components of Other Income (Expense), Net, Nonoperating [Line Items] | |||
Other income, net | 0 | 0 | 1,642 |
Other, net | |||
Components of Other Income (Expense), Net, Nonoperating [Line Items] | |||
Other income, net | $ 3,798 | $ 2,973 | $ 2,836 |
Note 4 Derivatives (Details)
Note 4 Derivatives (Details) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018USD ($) | Nov. 15, 2018USD ($) | Sep. 30, 2017USD ($) | |
Foreign Currency Forward | Derivatives Designated as Accounting Hedges: | |||
Derivative [Line Items] | |||
Derivative Notional Amount | $ 116,992 | $ 105,523 | |
Number of Contracts | 54 | 58 | |
Maximum Length of Time Hedged | 12 months | ||
Foreign Currency Forward | Derivatives Not Designated as Accounting Hedges: | |||
Derivative [Line Items] | |||
Derivative Notional Amount | $ 356,076 | $ 302,944 | |
Number of Contracts | 56 | 46 | |
Maximum Remaining Maturity | 2 months | ||
Interest Rate Swap | |||
Derivative [Line Items] | |||
Derivative Notional Amount | $ 50,000 | ||
Inception Date | Jun. 3, 2019 | ||
Maturity Date | Dec. 1, 2023 | ||
Total Interest Rate Swaps [Member] | Subsequent Event [Member] | Interest Rate Swap | |||
Derivative [Line Items] | |||
Derivative Notional Amount | $ 150,000 | ||
Effective Interest Rate | 4.50% | ||
Q1 FY19 Interest Rate Swaps [Member] | Subsequent Event [Member] | Interest Rate Swap | |||
Derivative [Line Items] | |||
Derivative Notional Amount | $ 100,000 |
Note 4 Financial Instruments No
Note 4 Financial Instruments Note 4 Fair Value (Details) | 12 Months Ended |
Sep. 29, 2018 | |
Additional Fair Value Elements [Abstract] | |
Fair Value of Long-term Debt Instrument | the fair value of the Company's long-term debt, as estimated based primarily on quoted prices (Level 2 input), was equivalent to its carrying amount. |
Note 5 Concentration of Credit
Note 5 Concentration of Credit Risk (Details) | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Financial Instruments and Concentration of Credit Risk [Abstract] | |||
Number of Customers Representing 10% or More of Net Sales | 1 | 2 | 1 |
Number of Customers Representing 10% Or More of Gross Accounts Receivable | 1 | 1 |
Note 6 Debt Schedule (Details)
Note 6 Debt Schedule (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Sep. 30, 2017 |
Debt Instrument [Line Items] | ||
Non-interest bearing promissory notes | $ 17,667 | $ 19,863 |
Total long-term debt | 392,667 | 394,863 |
Less: Current portion of non-interest bearing promissory notes | 3,321 | 3,416 |
Long-term debt | 14,346 | 391,447 |
Secured Notes due 2019 | ||
Debt Instrument [Line Items] | ||
Senior secured notes due 2019 | 375,000 | 375,000 |
Current portion of long-term debt | $ 375,000 | $ 0 |
Note 6 Debt Detail (Details)
Note 6 Debt Detail (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Apr. 01, 2017 | Apr. 02, 2016 | Apr. 02, 2016 | Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | Nov. 15, 2018 | Sep. 27, 2014 | |
Discounted value of notes issued | $ 30,000 | $ 0 | $ 0 | $ 30,105 | ||||
Debt due 2017 | ||||||||
Extinguishment of Debt, Amount | $ 40,000 | |||||||
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. | |||||||
Manufacturing Facility [Member] | ||||||||
Face value of debt | $ 15,000 | $ 15,000 | ||||||
Effective Date of Acquisition | Feb. 1, 2016 | |||||||
Discounted value of notes issued | $ 12,000 | |||||||
Promissory Note Description | four-year non-interest bearing promissory note | |||||||
Interest Rate Swap | ||||||||
Derivative Notional Amount | $ 50,000 | |||||||
Inception Date | Jun. 3, 2019 | |||||||
Maturity Date | Dec. 1, 2023 | |||||||
Q1 FY19 Interest Rate Swaps [Member] | Subsequent Event [Member] | Interest Rate Swap | ||||||||
Derivative Notional Amount | $ 100,000 | |||||||
Total Interest Rate Swaps [Member] | Subsequent Event [Member] | Interest Rate Swap | ||||||||
Derivative Notional Amount | $ 150,000 | |||||||
Effective Interest Rate | 4.50% |
Note 6 Line of Credit Facility
Note 6 Line of Credit Facility (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 29, 2018 | Mar. 31, 2018 | |
Amended Cash Flow Revolver [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum Borrowing Capacity | $ 500,000 | |
Facility Expiration Date | Feb. 1, 2023 | |
Additional Credit Line | $ 200,000 | |
Delayed Draw Term Loan | 375,000 | |
Foreign Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Maximum Borrowing Capacity | $ 69,000 | |
Facility Expiration Date | Mar. 30, 2019 | |
Amount Outstanding | $ 0 | |
Amended Cash Flow Revolver [Member] | Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Amount Outstanding | 215,000 | |
Letters of Credit Outstanding, Amount | $ 8,000 |
Note 7 Accounts Receivable Sa_2
Note 7 Accounts Receivable Sale Program (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 29, 2018 | 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 | $ 917 | $ 491 |
RPA [Member] | ||
Transfer of Financial Assets Accounted for as Sales [Line Items] | ||
Maximum Accounts Receivable Sale Capacity | 540 | |
Accounts Receivable Sold and Outstanding | $ 189 |
Note 8 Loss Contingency (Detail
Note 8 Loss Contingency (Details) - USD ($) $ in Millions | Sep. 29, 2018 | Jan. 27, 2018 | Sep. 30, 2017 |
Loss Contingencies [Line Items] | |||
Loss Contingency Accrual | $ 35 | $ 36 | |
Goods and Services Tax for Imports [Member] | |||
Loss Contingencies [Line Items] | |||
Possible Claim Contingency | $ 23 |
Note 8 Commitment (Details)
Note 8 Commitment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Operating Leased Assets [Line Items] | |||
2,019 | $ 21,188 | ||
2,020 | 14,647 | ||
2,021 | 13,036 | ||
2,022 | 9,635 | ||
2,023 | 6,038 | ||
Thereafter | 21,220 | ||
Total minimum lease payments | 85,764 | ||
Operating Leases, Rent Expense, Net | $ 27,000 | $ 24,000 | $ 24,000 |
Note 9 Restructuring and Rela_2
Note 9 Restructuring and Related Activities (Details) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018USD ($) | Sep. 30, 2017USD ($) | Oct. 01, 2016USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve, Current | $ 24,200 | ||
Restructuring costs | 29,146 | $ 1,339 | $ 2,701 |
IMS | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 12,200 | ||
CPS [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 16,900 | ||
Q1 FY18 Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected cost prior to reimbursement | 35,000 | ||
Restructuring Expense (Recovery) prior to reimbursement | $ 31,409 | ||
Initiation Date | Dec. 30, 2017 | ||
Completion Date | Dec. 31, 2019 | ||
Expected Number of Positions Eliminated | 2,900 | ||
Severance reimbursement | $ (10,000) | ||
Other Receivables | 8,000 | ||
Expected Cost | 25,000 | ||
Restructuring costs | 21,409 | ||
Q1 FY18 Plan [Member] | Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected Cost | 27,700 | ||
Restructuring costs | 26,425 | ||
Q1 FY18 Plan [Member] | Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected Cost | 7,300 | ||
Restructuring costs | 4,984 | ||
Other plans [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 7,737 | ||
Other plans [Member] | Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 3,200 | ||
Other plans [Member] | Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 4,500 |
Note 10 Income (Loss) Before In
Note 10 Income (Loss) Before Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 16,215 | $ 128,493 | $ 138,138 |
Foreign | 81,324 | 84,987 | 66,479 |
Income before income taxes | 97,539 | 213,480 | 204,617 |
Federal: | |||
Current | (122) | (2,524) | 490 |
Deferred | 170,994 | 37,543 | (4,550) |
State: | |||
Current | 32 | 1,648 | (265) |
Deferred | (3,672) | 4,204 | (5,141) |
Foreign: | |||
Current | 20,287 | 37,076 | 32,427 |
Deferred | 5,553 | (3,300) | (6,182) |
Total provision for income taxes | $ 193,072 | $ 74,647 | $ 16,779 |
Note 10 Deferred Tax Assets and
Note 10 Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Sep. 30, 2017 |
Deferred tax assets: | ||
U.S. net operating loss carryforwards | $ 218,710 | $ 338,492 |
Foreign net operating loss carryforwards | 129,866 | 186,684 |
Acquisition related intangibles | 15,099 | 13,913 |
Accruals not currently deductible | 45,922 | 55,582 |
Property, plant and equipment | 22,596 | 20,746 |
Tax credit carryforwards | 13,825 | 11,832 |
Reserves not currently deductible | 14,420 | 21,710 |
Stock compensation expense | 13,645 | 21,151 |
Unrealized losses | 3,145 | 4,475 |
Other | 2,789 | 3,949 |
Valuation allowance | (113,559) | (163,267) |
Total deferred tax assets | 366,458 | 515,267 |
Deferred tax liabilities on foreign earnings | (23,986) | (36,027) |
Other deferred tax liabilities | (3,802) | (8,140) |
Recorded as: | ||
Non-current deferred tax assets | 344,124 | 476,554 |
Non-current deferred tax liabilities | (5,454) | (5,454) |
Net deferred tax assets | $ 338,670 | $ 471,100 |
Note 10 Effective Tax Rate (Det
Note 10 Effective Tax Rate (Details) | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Federal tax at statutory tax rate | 24.50% | 35.00% | 35.00% |
Tax Act impact | 165.16% | 0.00% | 0.00% |
Effect of foreign operations | 7.92% | 1.89% | 5.35% |
Foreign income inclusion | 0.17% | 0.26% | 9.43% |
Permanent items | (1.37%) | 2.10% | (0.29%) |
Release of valuation allowance | 0.00% | 0.00% | (47.10%) |
Benefit of Foreign Restructuring | 0.00% | (4.92%) | 0.00% |
Other | 0.32% | (2.10%) | 4.61% |
State income taxes, net of federal benefit | 1.24% | 2.72% | 1.18% |
Effective tax rate | 197.94% | 34.95% | 8.18% |
Note 10 Income Tax Detail (Deta
Note 10 Income Tax Detail (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 29, 2018 | Oct. 01, 2016 | Sep. 30, 2017 | |
Operating Loss Carryforwards [Line Items] | |||
Valuation Allowance Released | $ 96 | ||
Undistributed Earnings of Foreign Subsidiaries | $ 400 | ||
Excess Tax Benefit | $ 124 | ||
Domestic Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards, Expiration Date | Sep. 30, 2035 | ||
Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | $ 931 | ||
State | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards, Valuation Allowance | 12 | ||
Operating Loss Carryforwards | 406 | ||
Foreign | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | $ 558 |
Note 10 Unrecognized Tax Benefi
Note 10 Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Income Tax Uncertainties [Abstract] | |||
Balance, beginning of year | $ 67,022 | $ 55,773 | $ 51,158 |
Increase related to prior year tax position | 1,670 | ||
Decrease related to prior year tax position | (5,917) | (1,872) | |
Increase related to current year tax positions | 8,392 | 9,741 | 7,028 |
Settlements | (7,648) | 0 | 0 |
Decrease related to lapse of applicable statute of limitations | (1,062) | (162) | (541) |
Balance, end of year | 60,787 | 67,022 | 55,773 |
Unrecognized Tax Benefits, Reserve for Penalties and Interest | 38,000 | 40,000 | |
Unrecognized Tax Benefits, Penalties and Interest accrued during the year | $ 3,000 | $ 4,000 | $ 4,000 |
Note 10 Income Tax Disclosure (
Note 10 Income Tax Disclosure (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 29, 2018 | Jun. 30, 2018 | Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Income Tax Disclosure Table [Line Items] | |||||
Federal tax at statutory tax rate | 24.50% | 35.00% | 35.00% | ||
Provision for income taxes | $ 193,072 | $ 74,647 | $ 16,779 | ||
Effective Income Tax Rate Reconciliation, Percent | 197.94% | 34.95% | 8.18% | ||
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 | 161,000 | ||||
Adjustment of Deferred Tax (Asset) Liability | $ 175,000 | ||||
Maximum | |||||
Income Tax Disclosure Table [Line Items] | |||||
Federal tax at statutory tax rate | 35.00% | ||||
Minimum | US Tax Cuts and Jobs Act (H.R. 1) [Member] | |||||
Income Tax Disclosure Table [Line Items] | |||||
Federal tax at statutory tax rate | 21.00% | ||||
Foreign | |||||
Income Tax Disclosure Table [Line Items] | |||||
Effective Income Tax Rate Reconciliation, Tax Settlement, Foreign, Amount | $ (5,000) |
Note 11 Earnings Per Share (Det
Note 11 Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,521 | 6 | 480 |
Net income (loss) | $ (95,533) | $ 138,833 | $ 187,838 |
Potentially dilutive securities | 3,000 | ||
Weighted average shares used in computing per share amount: | |||
Weighted average common shares outstanding | 69,833 | 74,481 | 75,094 |
Effect of dilutive stock options and restricted stock units | 0 | 3,647 | 3,693 |
Denominator for diluted earnings per share | 69,833 | 78,128 | 78,787 |
Net income (loss) per share: | |||
Basic | $ (1.37) | $ 1.86 | $ 2.50 |
Diluted | $ (1.37) | $ 1.78 | $ 2.38 |
Employee stock options | |||
Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,061 | 0 | 477 |
Restricted stock units | |||
Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,460 | 6 | 3 |
Note 12 Stockholders' Equity (D
Note 12 Stockholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2009 | |
Stockholders' Equity Note [Abstract] | |||||
Number of Shares Authorized | 25,300,000 | 7,500,000 | |||
Common Stock, Capital Shares Reserved for Future Issuance | 10,100,000 | ||||
Stock options and unvested restricted stock units outstanding | 6,600,000 | ||||
Number of Shares Available for Future Grant | 3,500,000 | ||||
Stock Repurchase Program Additional Authorized Amount | $ 200 | ||||
Stock Repurchased During Period, Shares | 5,000,000 | 4,300,000 | 6,800,000 | ||
Stock Repurchased During Period, Value | $ 146 | $ 160 | $ 141 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 108 | ||||
Shares Paid for Tax Withholding for Share Based Compensation | 334,000 | 549,000 | 46,000 | ||
Adjustments Related to Tax Withholding for Share-based Compensation | $ 12 | $ 17 | $ 1 |
Note 12 Accumulated Other Compr
Note 12 Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Sep. 30, 2017 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Foreign currency translation adjustments | $ 87,889 | $ 90,952 |
Unrealized holding losses on derivative financial instruments | (335) | (212) |
Unrecognized net actuarial loss and unrecognized transition cost for benefit plans | (13,610) | (13,946) |
Total | $ 73,944 | $ 76,794 |
Note 13 Acquisitions (Details)
Note 13 Acquisitions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Apr. 02, 2016 | Apr. 02, 2016 | Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Business Acquisition [Line Items] | |||||
Consideration Transferred | $ 90,317 | ||||
Cash Paid for Business Combination | 60,000 | ||||
Bargain Purchase Gain, Net of Tax | 1,642 | ||||
Discounted value of notes issued | 30,000 | $ 0 | $ 0 | $ 30,105 | |
Current assets | $ 33,198 | 33,198 | |||
Noncurrent assets, including identifiable intangible assets of $7.3 million and goodwill of $30.8 million | 62,632 | 62,632 | |||
Current liabilities | (3,146) | (3,146) | |||
Noncurrent liabilities | (725) | (725) | |||
Total | $ 91,959 | 91,959 | |||
Cash | 1,300 | ||||
Goodwill | $ 28,516 | $ 59,126 | $ 59,126 | ||
Manufacturing Facility [Member] | |||||
Business Acquisition [Line Items] | |||||
Effective Date of Acquisition | Feb. 1, 2016 | ||||
Bargain Purchase Gain, Net of Tax | 1,600 | ||||
Bargain Purchase Gain, Net of Tax Description | The bargain purchase gain resulted from the discount attributable to financing a portion of the purchase price with the acquiree using a non-interest bearing promissory note. | ||||
Discounted value of notes issued | $ 12,000 | ||||
Storage Software Provider [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible Assets, Other than Goodwill | 7,300 | 7,300 | |||
Goodwill Description | Goodwill arising from the acquisition is tax deductible and reflects the Company's expectation that the acquisition will enable the Company to broaden its relationships with certain of its existing key customers, realize synergies associated with leveraging the acquisition to develop other software solutions to become a provider of a full storage systems solution, and leverage the acquiree's knowledgeable and experienced workforce. | ||||
Goodwill | $ 30,800 | $ 30,800 | |||
Storage Software Provider [Member] | Minimum | |||||
Business Acquisition [Line Items] | |||||
Intangible Asset, Useful Life | 3 years | ||||
Storage Software Provider [Member] | Maximum | |||||
Business Acquisition [Line Items] | |||||
Intangible Asset, Useful Life | 4 years |
Note 14 Revenue and Gross Profi
Note 14 Revenue and Gross Profit by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |||
Segment Information [Line Items] | |||||
Net sales | $ 7,110,130 | $ 6,868,619 | $ 6,481,181 | ||
Gross profit | 463,783 | 519,911 | 514,282 | ||
Depreciation and amortization | $ 118,820 | 118,751 | 111,910 | ||
Revenue percentage generated by reportable segment | 80.00% | ||||
Property, Plant and Equipment, Additions | $ 118,597 | 140,634 | 110,560 | ||
IMS | |||||
Segment Information [Line Items] | |||||
Number of reportable segments | 1 | ||||
Operating segments | |||||
Segment Information [Line Items] | |||||
Gross profit | $ 470,196 | 531,504 | 519,005 | ||
Depreciation and amortization | 106,119 | 105,878 | 99,098 | ||
Property, Plant and Equipment, Additions | 116,117 | 136,512 | 104,936 | ||
Operating segments | IMS | |||||
Segment Information [Line Items] | |||||
Net sales | 5,847,958 | 5,645,499 | 5,297,740 | ||
Gross profit | 352,361 | 404,350 | 397,309 | ||
Depreciation and amortization | 76,071 | 74,769 | 66,036 | ||
Property, Plant and Equipment, Additions | 87,421 | 106,000 | 83,084 | ||
Operating segments | CPS | |||||
Segment Information [Line Items] | |||||
Net sales | 1,458,754 | 1,422,264 | 1,372,412 | ||
Gross profit | 117,835 | [1] | 127,154 | 121,696 | |
Depreciation and amortization | 30,048 | 31,109 | 33,062 | ||
Property, Plant and Equipment, Additions | 28,696 | 30,512 | 21,852 | ||
Segment reconciling items | |||||
Segment Information [Line Items] | |||||
Gross profit | [2] | (6,413) | (11,593) | (4,723) | |
Unallocated corporate items | |||||
Segment Information [Line Items] | |||||
Depreciation and amortization | [3] | 12,701 | 12,873 | 12,812 | |
Property, Plant and Equipment, Additions | [3] | 2,480 | 4,122 | 5,624 | |
Intersegment eliminations | |||||
Segment Information [Line Items] | |||||
Net sales | $ (196,582) | $ (199,144) | $ (188,971) | ||
[1] | During the fourth quarter of fiscal 2018, the Company recorded a $12.5 million pre-tax adjustment to correct errors that occurred from fiscal 2016 through the third quarter of fiscal 2018 with respect to the accounting for certain long-term contracts in one of the Company’s CPS divisions. These errors are immaterial to all prior periods. The impact of this out-of-period adjustment on the full year fiscal 2018 was $11.0 million which is also immaterial to fiscal 2018. | ||||
[2] | For purposes of evaluating segment performance, management excludes certain items from its measures of revenue and gross profit. These items consist of stock-based compensation expense, amortization of intangible assets, charges or credits resulting from distressed customers and acquisition-related items. | ||||
[3] | Primarily related to selling, general and administration functions. |
Note 14 Prior Period Adjustment
Note 14 Prior Period Adjustments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Sep. 29, 2018 | Sep. 29, 2018 | |
Prior Period Adjustment [Abstract] | ||
Error Correction | $ 12.5 | |
Quantify Prior Period Misstatements Corrected in Current Year Financial Statements | $ 11 |
Note 14 Net Sales Information b
Note 14 Net Sales Information by Geographic Segment (Details) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018USD ($) | Sep. 30, 2017USD ($) | Oct. 01, 2016USD ($) | |
Revenue from External Customers [Line Items] | |||
Percentage of Net Sales Represented by Ten Largest Customers | 53.00% | 52.90% | 52.00% |
Number of Customers Representing 10% or More of Net Sales | 1 | 2 | 1 |
Net Sales | $ 7,110,130 | $ 6,868,619 | $ 6,481,181 |
United States | |||
Revenue from External Customers [Line Items] | |||
Net Sales | 1,338,359 | 1,234,739 | 1,045,998 |
Mexico | |||
Revenue from External Customers [Line Items] | |||
Net Sales | 2,067,956 | 1,935,634 | 1,869,651 |
China | |||
Revenue from External Customers [Line Items] | |||
Net Sales | 1,196,178 | 1,336,118 | 1,421,693 |
Malaysia | |||
Revenue from External Customers [Line Items] | |||
Net Sales | 687,810 | 743,359 | 512,288 |
Other international | |||
Revenue from External Customers [Line Items] | |||
Net Sales | $ 1,819,827 | $ 1,618,769 | $ 1,631,551 |
Note 14 Long-lived Assets Infor
Note 14 Long-lived Assets Information by Geographic Segment (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Sep. 30, 2017 |
By Geographic Areas, Long-lived Assets [Line Items] | ||
Property, plant and equipment, net | $ 642,913 | $ 640,275 |
United States | ||
By Geographic Areas, Long-lived Assets [Line Items] | ||
Property, plant and equipment, net | 161,889 | 165,254 |
Mexico | ||
By Geographic Areas, Long-lived Assets [Line Items] | ||
Property, plant and equipment, net | 187,128 | 187,094 |
China | ||
By Geographic Areas, Long-lived Assets [Line Items] | ||
Property, plant and equipment, net | 74,438 | 80,787 |
Other international | ||
By Geographic Areas, Long-lived Assets [Line Items] | ||
Property, plant and equipment, net | $ 219,458 | $ 207,140 |
Note 15 Share-Based Compensatio
Note 15 Share-Based Compensation Arrangements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Share-based Compensation [Line Items] | |||
Share-based Compensation | $ 32,825 | $ 37,920 | $ 26,907 |
Stock options | |||
Share-based Compensation [Line Items] | |||
Share-based Compensation | 1,779 | 1,640 | 3,943 |
Restricted stock units, including performance-based awards | |||
Share-based Compensation [Line Items] | |||
Share-based Compensation | 31,046 | 36,280 | 22,964 |
Cost of sales | |||
Share-based Compensation [Line Items] | |||
Allocated Share-based Compensation Expense | 8,187 | 8,959 | 7,350 |
Selling, general & administrative | |||
Share-based Compensation [Line Items] | |||
Allocated Share-based Compensation Expense | 25,206 | 28,169 | 18,903 |
Research & development | |||
Share-based Compensation [Line Items] | |||
Allocated Share-based Compensation Expense | $ (568) | $ 792 | $ 654 |
Note 15 Fair Value and Intrinsi
Note 15 Fair Value and Intrinsic Value (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Weighted Average Grant Date Fair Value, intrinsic value of options exercised, fair value of shares vested [Abstract] | |||
Weighted Average Grant Date Fair Value of Restricted Stock Units Granted | $ 33.51 | $ 34.11 | $ 23.22 |
RSU Vested in Period, Fair Value | $ 36 | $ 53 | $ 10 |
Note 15 Restricted Stock Rollfo
Note 15 Restricted Stock Rollforward (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Awards, Nonvested, Number of Shares [Roll Forward] | ||||
Beginning outstanding | 3,359 | 3,998 | 2,979 | |
Granted | 1,102 | 1,378 | 1,698 | |
Vested/Cancelled | (1,158) | (2,017) | (679) | |
Ending outstanding | 3,303 | 3,359 | 3,998 | 2,979 |
Expected to vest | 2,522 | |||
Weighted Average Grant Date Fair Value Restricted Stock [Abstract] | ||||
Beginning outstanding | $ 27.56 | $ 19.57 | $ 16.52 | |
Granted | 33.51 | 34.11 | 23.22 | |
Vested/Cancelled | 25.31 | 16.20 | 15.33 | |
Ending outstanding | 30.33 | $ 27.56 | $ 19.57 | $ 16.52 |
Expected to vest | $ 29.66 | |||
Weighted Average Remaining Contractual Term [Abstract] | ||||
Outstanding | 1 year 2 months 15 days | 1 year 6 months 5 days | 1 year 4 months 5 days | 1 year 6 months 8 days |
Expected to vest | 1 year 2 months 20 days | |||
Restricted Stock Non vested Aggregate Intrinsic Value [Abstract] | ||||
Outstanding | $ 97,913 | $ 124,800 | $ 110,183 | $ 59,843 |
Expected to vest | $ 74,768 |
Note 15 Unrecognized Stock-base
Note 15 Unrecognized Stock-based Compensation Expense (Details) $ in Millions | 12 Months Ended |
Sep. 29, 2018USD ($) | |
Restricted stock units | |
Unrecognized Compensation Cost [Line Items] | |
Unrecognized Compensation Expense | $ 28 |
Weighted Average Period of Recognition (Years) | 1 year 3 months |
Performance Shares | Vesting not probable | |
Unrecognized Compensation Cost [Line Items] | |
Unrecognized Compensation Expense | $ 11 |
Note 16 Projected Benefit Oblig
Note 16 Projected Benefit Obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | ||
Defined Contribution Plan [Abstract] | ||||
Amount Deferred Under Company Sponsored Deferred Compensation Plans | $ 5,000 | $ 5,000 | ||
UNITED STATES | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Ending accumulated benefit obligation | 22,586 | 24,743 | $ 28,375 | |
Change in Benefit Obligation [Roll Forward] | ||||
Beginning projected benefit obligation | 24,743 | 28,375 | 26,441 | |
Service cost | 0 | 0 | 0 | |
Interest cost | 729 | 737 | 871 | |
Actuarial gain (loss) | (1,199) | (1,987) | 3,456 | |
Benefits paid | (716) | (709) | (718) | |
Other (1) | [1] | (971) | (1,673) | (1,675) |
Ending projected benefit obligation | $ 22,586 | $ 24,743 | 28,375 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||||
Discount Rate | 3.77% | 3.05% | ||
Rate of Compensation Increase | 0.00% | 0.00% | ||
Non-U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Ending accumulated benefit obligation | $ 47,149 | $ 45,532 | 48,371 | |
Change in Benefit Obligation [Roll Forward] | ||||
Beginning projected benefit obligation | 48,873 | 53,656 | 48,816 | |
Service cost | 1,331 | 1,210 | 1,569 | |
Interest cost | 1,333 | 1,088 | 1,341 | |
Actuarial gain (loss) | 1,179 | (5,609) | 3,244 | |
Benefits paid | (1,571) | (1,499) | (1,266) | |
Other (1) | [1] | (215) | 27 | (48) |
Ending projected benefit obligation | $ 50,930 | $ 48,873 | $ 53,656 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||||
Discount Rate | 2.78% | 2.78% | ||
Rate of Compensation Increase | 2.08% | 1.98% | ||
Fair Value, Measurements, Recurring | ||||
Defined Contribution Plan [Abstract] | ||||
Deferred Compensation Plan Assets | $ 35,000 | $ 27,000 | ||
Deferred Compensation Liability | $ 35,000 | $ 29,000 | ||
[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 | |||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | ||
UNITED STATES | ||||
Change in Fair Value of Plan Assets [Roll Forward] | ||||
Beginning fair value | $ 16,930 | $ 17,594 | $ 18,646 | |
Actual return | 1,086 | 1,598 | 1,341 | |
Employer contributions | 455 | 120 | 0 | |
Benefits paid | (716) | (709) | (718) | |
Other (1) | [1] | (971) | (1,673) | (1,675) |
Ending fair value | 16,784 | 16,930 | 17,594 | |
Over (under) Funded Status [Abstract] | ||||
Underfunded status | (5,802) | (7,813) | (10,781) | |
Non-U.S. | ||||
Change in Fair Value of Plan Assets [Roll Forward] | ||||
Beginning fair value | 26,993 | 26,045 | 27,079 | |
Actual return | (8) | 590 | (461) | |
Employer contributions | 710 | 695 | 607 | |
Benefits paid | (1,571) | (1,499) | (1,266) | |
Other (1) | [1] | (10) | 1,162 | 86 |
Ending fair value | 26,114 | 26,993 | 26,045 | |
Over (under) Funded Status [Abstract] | ||||
Underfunded status | $ (24,816) | $ (21,880) | $ (27,611) | |
Cash | UNITED STATES | ||||
Weighted Average Asset Allocations by Asset Category [Abstract] | ||||
Target | 0.00% | |||
Actual | 0.00% | 0.00% | ||
Cash | Non-U.S. | ||||
Weighted Average Asset Allocations by Asset Category [Abstract] | ||||
Target | 0.00% | |||
Actual | 3.20% | 2.50% | ||
Level 1 | Equity securities | UNITED STATES | ||||
Weighted Average Asset Allocations by Asset Category [Abstract] | ||||
Target | 51.00% | |||
Actual | 51.70% | 52.80% | ||
Level 1 | Equity securities | Non-U.S. | ||||
Weighted Average Asset Allocations by Asset Category [Abstract] | ||||
Target | 20.00% | |||
Actual | 27.50% | 30.00% | ||
Level 1 | Debt securities | UNITED STATES | ||||
Weighted Average Asset Allocations by Asset Category [Abstract] | ||||
Target | 49.00% | |||
Actual | 48.30% | 47.20% | ||
Level 1 | Debt securities | Non-U.S. | ||||
Weighted Average Asset Allocations by Asset Category [Abstract] | ||||
Target | 80.00% | |||
Actual | 69.30% | 67.50% | ||
[1] | Includes miscellaneous items such as settlements, foreign exchange rate movements, etc. |
Note 16 Net Amount Recognized I
Note 16 Net Amount Recognized In Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 |
UNITED STATES | |||
Components of net amount recognized on consolidated balance sheets: | |||
Current liabilities | $ 0 | $ 0 | $ 0 |
Non-current liabilities | (5,802) | (7,813) | (10,781) |
Net liability recognized on consolidated balance sheets | (5,802) | (7,813) | (10,781) |
Accumulated other comprehensive loss | 2,531 | 4,484 | 7,801 |
Non-U.S. | |||
Components of net amount recognized on consolidated balance sheets: | |||
Current liabilities | (1,430) | (1,117) | (1,260) |
Non-current liabilities | (23,386) | (20,763) | (26,351) |
Net liability recognized on consolidated balance sheets | (24,816) | (21,880) | (27,611) |
Accumulated other comprehensive loss | $ 11,401 | $ 10,076 | $ 16,841 |
Note 16 Net Periodic Pension Co
Note 16 Net Periodic Pension Cost (Details) | 12 Months Ended | |
Sep. 29, 2018 | Sep. 30, 2017 | |
UNITED STATES | ||
Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Discount rate | 3.05% | 2.71% |
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 | 2.78% | 2.32% |
Expected return on plan assets | 1.90% | 1.70% |
Rate of compensation increases | 1.98% | 2.72% |
Note 16 Future Benefit Payments
Note 16 Future Benefit Payments (Details) $ in Thousands | Sep. 29, 2018USD ($) |
Estimated Future Benefit Payments [Abstract] | |
2,019 | $ 7,779 |
2,020 | 4,349 |
2,021 | 4,276 |
2,022 | 4,401 |
2,023 | 4,631 |
Years 2024 through 2028 | $ 21,430 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Details) - Allowance for Accounts Receivables - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 14,334 | $ 15,081 | $ 13,439 |
Charged to Operations | (2,123) | (747) | 1,642 |
Charges Utilized | 0 | 0 | 0 |
Balance at End of Period | $ 12,211 | $ 14,334 | $ 15,081 |