Document and Entity Information
Document and Entity Information Document - $ / shares | 3 Months Ended | |
Dec. 31, 2022 | Jan. 25, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 0-21272 | |
Entity Registrant Name | Sanmina Corporation | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 77-0228183 | |
Entity Address, Address Line One | 2700 N. First St., | |
Entity Address, City or Town | San Jose, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95134 | |
City Area Code | (408) | |
Local Phone Number | 964-3500 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | SANM | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 58,357,666 | |
Entity Listing, Par Value Per Share | $ 0.01 | |
Entity Central Index Key | 0000897723 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --09-30 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Oct. 01, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 735,314 | $ 529,857 |
Accounts receivable, net of allowances of approximately $8 million as of December 31, 2022 and October 1, 2022 | 1,308,651 | 1,138,894 |
Contract assets | 501,893 | 503,674 |
Inventories | 1,728,000 | 1,691,081 |
Prepaid expenses and other current assets | 80,675 | 62,044 |
Total current assets | 4,354,533 | 3,925,550 |
Property, plant and equipment, net | 591,155 | 575,170 |
Deferred tax assets | 189,638 | 198,588 |
Other | 171,886 | 160,192 |
Total assets | 5,307,212 | 4,859,500 |
Current liabilities: | ||
Accounts payable | 2,139,445 | 2,029,534 |
Accrued liabilities | 292,212 | 275,735 |
Accrued payroll and related benefits | 135,880 | 130,892 |
Short-term debt, including current portion of long-term debt | 17,500 | 17,500 |
Total current liabilities | 2,585,037 | 2,453,661 |
Long-term liabilities: | ||
Long-term debt | 325,007 | 329,237 |
Other | 223,376 | 215,333 |
Total long-term liabilities | 548,383 | 544,570 |
Contingencies (Note 7) | ||
Stockholders’ equity | 2,173,792 | 1,861,269 |
Total liabilities and stockholders’ equity | $ 5,307,212 | $ 4,859,500 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Net sales | $ 2,361,361 | $ 1,757,325 |
Cost of sales | 2,170,654 | 1,612,836 |
Gross profit | 190,707 | 144,489 |
Operating expenses: | ||
Selling, general and administrative | 60,730 | 61,475 |
Research and development | 5,599 | 4,777 |
Restructuring and other | 631 | 1,414 |
Gain on sale of long-lived assets | 0 | (4,610) |
Total operating expenses | 66,960 | 63,056 |
Operating income | 123,747 | 81,433 |
Interest income | 2,933 | 309 |
Interest expense | (8,681) | (4,877) |
Other income (expense), net | (6,712) | 2,072 |
Interest and other, net | (12,460) | (2,496) |
Income before income taxes | 111,287 | 78,937 |
Provision for income taxes | 19,788 | 20,303 |
Net income before noncontrolling interest | 91,499 | 58,634 |
Net Income (Loss) Attributable to Noncontrolling Interest | 3,100 | 0 |
Net income attributable to common shareholders | $ 88,399 | $ 58,634 |
Net income attributable to common shareholders per share: | ||
Basic | $ 1.53 | $ 0.91 |
Diluted | $ 1.48 | $ 0.89 |
Weighted average shares used in computing per share amounts: | ||
Basic | 57,727 | 64,399 |
Diluted | 59,867 | 66,233 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Net income before noncontrolling interest | $ 91,499 | $ 58,634 |
Other comprehensive income (loss), net of tax: | ||
Change in foreign currency translation adjustments | 6,183 | (2,047) |
Derivative financial instruments: | ||
Change in net unrealized amount | 4,469 | 1,964 |
Amount reclassified into net income before noncontrollling interest | (3,296) | 2,063 |
Defined benefit plans: | ||
Changes in unrecognized net actuarial losses and unrecognized transition costs | (751) | 478 |
Amortization of actuarial losses and transition costs | 345 | 238 |
Total other comprehensive income | 6,950 | 2,696 |
Net Income (Loss) Attributable to Noncontrolling Interest | 3,100 | 0 |
Comprehensive income before noncontrolling interest | 98,449 | 61,330 |
Comprehensive income attributable to common shareholders | $ 95,349 | $ 61,330 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholder's Equity Statement - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock and Additional Paid in Capital | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Deficit | Parent | Noncontrolling Interest [Member] | Number of Common Shares |
Balance at Oct. 02, 2021 | $ 6,339,506 | $ (1,047,202) | $ 40,690 | $ (3,454,366) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuances under stock plans, Value | 1,050 | |||||||
Stock-based compensation expense | 9,032 | |||||||
APIC Sale of Noncontrolling Interest | 0 | |||||||
Repurchases of Treasury Stock, Value | $ 68,823 | |||||||
Other comprehensive income (loss) | 2,696 | |||||||
Net income attributable to common shareholders | $ 58,634 | $ 58,634 | ||||||
Noncontrolling Interest in Joint Ventures at Oct. 02, 2021 | $ 0 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Noncontrolling Interest, Increase from Sale of Parent Equity Interest | 0 | |||||||
Noncontrolling Interest in Joint Ventures at Jan. 01, 2022 | 0 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 | ||||||
Common Stock, Shares, Issued at Oct. 02, 2021 | 108,734 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuances under stock plans, shares | 784 | |||||||
Common Stock, Shares, Issued at Jan. 01, 2022 | 109,518 | |||||||
Treasury Stock, Shares at Oct. 02, 2021 | (44,427) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Repurchases of treasury stock | (1,771) | |||||||
Treasury Stock, Shares at Jan. 01, 2022 | (46,198) | |||||||
Balance at Jan. 01, 2022 | 6,349,588 | $ (1,116,025) | 43,386 | (3,395,732) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stockholders’ equity | 1,881,217 | |||||||
Stockholders’ equity | 1,861,269 | |||||||
Balance at Oct. 01, 2022 | 6,381,348 | (1,378,159) | 56,325 | (3,198,245) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuances under stock plans, Value | 173 | |||||||
Stock-based compensation expense | 11,609 | |||||||
APIC Sale of Noncontrolling Interest | 78,169 | |||||||
Repurchases of Treasury Stock, Value | $ 8,009 | |||||||
Other comprehensive income (loss) | 6,950 | |||||||
Net income attributable to common shareholders | 88,399 | $ 88,399 | ||||||
Noncontrolling Interest in Joint Ventures at Oct. 01, 2022 | 0 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Noncontrolling Interest, Increase from Sale of Parent Equity Interest | 132,132 | |||||||
Noncontrolling Interest in Joint Ventures at Dec. 31, 2022 | 135,232 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 3,100 | $ 3,100 | ||||||
Common Stock, Shares, Issued at Oct. 01, 2022 | 110,160 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuances under stock plans, shares | 342 | |||||||
Common Stock, Shares, Issued at Dec. 31, 2022 | 110,502 | |||||||
Treasury Stock, Shares at Oct. 01, 2022 | (52,766) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Repurchases of treasury stock | (136) | |||||||
Treasury Stock, Shares at Dec. 31, 2022 | (52,902) | |||||||
Balance at Dec. 31, 2022 | $ 6,471,299 | $ (1,386,168) | $ 63,275 | $ (3,109,846) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stockholders’ equity | $ 2,173,792 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | ||
Net income before noncontrolling interest | $ 91,499 | $ 58,634 |
Adjustments to reconcile net income before noncontrolling interest to cash provided by (used in) operating activities: | ||
Depreciation and amortization | 28,536 | 27,465 |
Stock-based compensation expense | 11,609 | 9,032 |
Deferred income taxes | 8,445 | 6,707 |
Other, net | (311) | (3,638) |
Changes in operating assets and liabilities, net of amounts acquired: | ||
Accounts receivable | (166,333) | (106,972) |
Contract assets | 1,781 | (15,666) |
Inventories | (32,595) | (207,300) |
Prepaid expenses and other assets | (27,657) | (2,939) |
Accounts payable | 101,265 | 234,525 |
Accrued liabilities | 20,985 | 68,452 |
Cash provided by operating activities | 37,224 | 68,300 |
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (37,060) | (25,376) |
Proceeds from Sale of Property, Plant, and Equipment | 530 | 8,014 |
Purchases of investments | (800) | 0 |
Cash used in investing activities | (37,330) | (17,362) |
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES: | ||
Repayment of Long-term Debt, Long-term Lease Obligation, and Capital Security | (4,375) | (4,688) |
Proceeds from revolving credit facility borrowings | 737,200 | 16,000 |
Repayments of revolving credit facility borrowings | (737,200) | (16,000) |
Net proceeds from stock issuances | 173 | 1,050 |
Repurchases of common stock | (8,009) | (68,823) |
Proceeds from sale of noncontrolling interest | 215,799 | 0 |
Cash provided by (used in) financing activities | 203,588 | (72,461) |
Effect of exchange rate changes | 1,975 | (786) |
Increase (decrease) in cash and cash equivalents | 205,457 | (22,309) |
Cash and cash equivalents at beginning of period | 529,857 | 650,026 |
Cash and cash equivalents at end of period | 735,314 | 627,717 |
Cash paid during the period for: | ||
Interest, net of capitalized interest | 6,772 | 2,479 |
Income taxes, net of refunds | 9,507 | 5,569 |
Unpaid purchases of property, plant and equipment at the end of period | $ 43,648 | $ 17,431 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2022 | Oct. 01, 2022 |
Accounts Receivable, Allowance for Credit Loss, Current | $ 8,000 | $ 8,000 |
Stockholders’ equity | $ 2,173,792 | $ 1,861,269 |
Note 1 Basis of Presentation
Note 1 Basis of Presentation | 3 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Sanmina Corporation (the “Company”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been omitted pursuant to those rules or regulations. The interim condensed consolidated financial statements are unaudited, but reflect all adjustments, consisting primarily of normal recurring adjustments, that are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended October 1, 2022, included in the Company’s 2022 Annual Report on Form 10-K. The unaudited condensed consolidated financial statements include all accounts of the Company, its wholly-owned subsidiaries and subsidiaries in which it has control. All intra-company accounts and transactions have been eliminated. Noncontrolling interest represents a noncontrolling investor’s interest in the results of operations of subsidiaries that the Company controls and consolidates. The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Due to the COVID-19 pandemic, the global economy and financial markets have been disrupted and there is a significant amount of uncertainty about the length and severity of the consequences caused by the pandemic. The Company has considered information available to it as of the date of issuance of these financial statements and is not aware of any specific events or circumstances that would require an update to its estimates or judgments, or a revision to the carrying value of its assets or liabilities. These estimates may change as new events occur and additional information becomes available. Actual results could differ materially from these estimates. Results of operations for the first quarter of 2023 are not necessarily indicative of the results that may be expected for other interim periods or for the full fiscal year. |
Note 2 Revenue Recognition
Note 2 Revenue Recognition | 3 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue Recognition The Company is a leading global provider of integrated manufacturing solutions, components, products and repair, logistics and after-market services. For purposes of determining when to recognize revenue, and in what amount, the Company applies a 5-step model: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the Company satisfies a performance obligation. Each of these steps may involve the use of significant judgments, as discussed below. Step 1 - Identify the Contract with a Customer A contract is defined as an agreement between two parties that creates enforceable rights and obligations. The Company generally enters into a master supply agreement (“MSA”) with its customers that provides the framework under which business will be conducted, and pursuant to which a customer will issue purchase orders or other binding documents to specify the quantity, price and delivery requirements for products or services the customer wishes to purchase. The Company generally considers its contract with a customer to be a firm commitment, consisting of the combination of an MSA and a purchase order or any other similar binding document. Step 2 - Identify the Performance Obligations in the Contract A performance obligation is a promised good or service that is material in the context of the contract and is both capable of being distinct (customer can benefit from the good or service on its own or together with other readily available resources) and distinct within the context of the contract (separately identifiable from other promises). The Company reviews its contracts to identify promised goods or services and then evaluates such items to determine which of those items are performance obligations. The majority of the Company’s contracts have a single performance obligation since the promise to transfer an individual good or service is not separately identifiable from other promises in the contract. The Company’s performance obligations generally have an expected duration of one year or less. Step 3 - Determine the Transaction Price The Company’s contracts with its customers may include certain forms of variable consideration such as early payment discounts, volume discounts and shared cost savings. The Company includes an estimate of variable consideration when determining the transaction price and the appropriate amount of revenue to be recognized. This estimate is limited to an amount which will not result in a significant reversal of revenue in a future period. Factors considered in the Company’s estimate of variable consideration are the potential amount subject to these contract provisions, historical experience and other relevant facts and circumstances. Step 4 - Allocate the Transaction Price to the Performance Obligations in the Contract A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. In the event that more than one performance obligation is identified in a contract, the Company is required to allocate a portion of the transaction price to each performance obligation. This allocation would generally be based on the relative standalone price of each performance obligation, which most often would represent the price at which the Company would sell similar goods or services separately. Step 5 - Recognize Revenue When (or as) a Performance Obligation is Satisfied The Company is required to assess whether control of a product or services promised under a contract is transferred to the customer at a point-in-time or over time as the product is being manufactured or the services are being provided. If the criteria in ASC 606 for recognizing revenue on an over time basis are not met, revenue must be recognized at the point-in-time determined by the Company at which its customer obtains control of a product or service. The Company has determined that revenue for the majority of its contracts is required to be recognized on an over time basis. This determination is based on the fact that 1) the Company does not have an alternative use for the end products it manufactures for its customers and has an enforceable right to payment, including a reasonable profit, for work-in-progress upon a customer’s cancellation of a contract for convenience or 2) the Company’s customer simultaneously receives and consumes the benefits provided by the Company’s services. For these contracts, revenue is recognized on an over time basis using the cost-to-cost method (ratio of costs incurred to date to total estimated costs at completion) which the Company believes best depicts the transfer of control to the customer. At least 95% of the Company’s revenue is recognized on an over time basis, which is as products are manufactured or services are performed. Because of this, and the fact that there is no work-in-process or finished goods inventory associated with contracts for which revenue is recognized on an over-time basis, 99% or more of the Company’s inventory at the end of a given period is in the form of raw materials. For contracts for which revenue is required to be recognized at a point-in-time, the Company recognizes revenue when it has transferred control of the related goods, which generally occurs upon shipment or delivery of the goods to the customer. Application of the cost-to-cost method for government contracts in the Company’s Defense and Aerospace division requires the use of significant judgments with respect to estimated materials, labor and subcontractor costs. This division is an operating segment whose results are combined with eleven other operating segments and reported under Components, Products and Services (“CPS”) for segment reporting purposes. During the three months ended December 31, 2022, CPS revenue and gross profit were $434 million and $62 million, respectively. The Company updates its estimates of materials, labor and subcontractor costs on a quarterly basis. These updated estimates are reviewed each quarter by a group of employees that includes representatives from numerous functions such as engineering, materials, contracts, manufacturing, program management, finance and senior management. If a change in estimate is deemed necessary, the impact of the change is recognized in the period of change. Contract Assets A contract asset is recognized when the Company has recognized revenue, but has not issued an invoice to its customer for payment. Contract assets are classified separately on the unaudited condensed consolidated balance sheets and transferred to accounts receivable when rights to payment become unconditional. Because of the Company’s short manufacturing cycle times, the transfer from contract assets to accounts receivable generally occurs within the next fiscal quarter. Other Taxes assessed by governmental authorities that are both imposed on and concurrent with a specific revenue-producing transaction, and are collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control of a product has transferred to a customer are accounted for as fulfillment costs and are included in cost of sales. The Company applies the following practical expedients or policy elections under ASC 606: • The promised amount of consideration under a contract is not adjusted for the effects of a significant financing component because, at inception of a contract, the Company expects the period between when a good or service is transferred to a customer and when the customer pays for that good or service will generally be one year or less. • The Company has elected to not disclose information about remaining performance obligations that have original expected durations of one year or less, which is substantially all of the Company’s remaining performance obligations. • Incremental costs of obtaining a contract are not capitalized if the period over which such costs would be amortized to expense is less than one year. Disaggregation of Revenue In the following table, revenue is disaggregated by segment, market sector and geography. Three Months Ended December 31, January 1, (In thousands) Segments: IMS $ 1,927,112 $ 1,416,911 CPS 434,249 340,414 Total $ 2,361,361 $ 1,757,325 End Markets: Industrial, Defense, Medical and Automotive $ 1,345,581 $ 1,054,971 Communications Networks and Cloud Infrastructure 1,015,780 702,354 Total $ 2,361,361 $ 1,757,325 Geography: Americas (1) $ 1,141,304 $ 797,020 APAC 914,341 691,071 EMEA 305,716 269,234 Total $ 2,361,361 $ 1,757,325 (1) Mexico represents approximately 70% and 60% of the Americas revenue and the U.S. represents approximately 30% and 40% of the Americas revenue for the first quarter of 2023 and 2022, respectively. |
Note 3 Financial Instruments
Note 3 Financial Instruments | 3 Months Ended |
Dec. 31, 2022 | |
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 (represents 22% of cash and cash equivalents), accounts receivable, accounts payable and short-term debt approximate carrying values due to the short-term duration of these instruments. Additionally, the fair value of variable rate long-term debt approximates carrying value as of December 31, 2022. Assets and Liabilities Measured at Fair Value on a Recurring Basis The Company’s primary financial assets and financial liabilities measured at fair value on a recurring basis are deferred compensation plan assets and defined benefit plan assets, which are both measured using Level 1 inputs. Deferred compensation plan assets were $39 million and $37 million as of December 31, 2022 and October 1, 2022, respectively. Defined benefit plan assets were $17 million as of October 1, 2022 and are measured at fair value only in the fourth quarter of each year. Other financial assets and financial liabilities measured at fair value on a recurring basis include foreign exchange contracts and interest rate swaps, which are both measured using Level 2 inputs. Foreign exchange contracts were not material as of December 31, 2022 or October 1, 2022. Interest rate swaps had positive values of $7 million and $6 million as of December 31, 2022 and October 1, 2022, respectively. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis Other non-financial assets, such as 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. Offsetting Derivative Assets and Liabilities The Company has entered into master netting arrangements with each of its derivative counterparties that allows net settlement of derivative assets and liabilities under certain conditions, such as multiple transactions with the same currency maturing on the same date. The Company presents its derivative assets and derivative liabilities on a gross basis on the unaudited condensed consolidated balance sheets. The amount that the Company had the right to offset under these netting arrangements was not material as of December 31, 2022 or October 1, 2022. Derivative Instruments Foreign Exchange Rate Risk The Company is exposed to certain risks related to its ongoing business operations. The primary risk managed by using derivative instruments is foreign currency exchange risk. Forward contracts on various foreign currencies are used to manage foreign currency risk associated with forecasted foreign currency transactions and certain monetary assets and liabilities denominated in non-functional currencies. The Company’s primary foreign currency cash flows are in certain Asian and European countries, Israel and Mexico. The Company had the following outstanding foreign currency forward contracts that were entered into to hedge foreign currency exposures: As of December 31, October 1, Derivatives Designated as Accounting Hedges: Notional amount (in thousands) $ 139,297 $ 123,172 Number of contracts 50 50 Derivatives Not Designated as Accounting Hedges: Notional amount (in thousands) $ 512,843 $ 531,558 Number of contracts 42 43 The Company utilizes foreign currency forward contracts to hedge certain operational (“cash flow”) exposures resulting from changes in foreign currency exchange rates. Such exposures generally result from (1) forecasted non-functional currency sales and (2) forecasted non-functional currency materials, labor, overhead and other expenses. 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 Company excludes time value from its assessment of hedge effectiveness and recognizes the amount of time value in earnings over the life of the derivative instrument. Gains or losses on the derivative not caused by changes in time value are recorded in Accumulated Other Comprehensive Income (“AOCI”), a component of equity, and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The amount of gain or loss recognized in Other Comprehensive Income on derivative instruments and the amount of gain or loss reclassified from AOCI into income were not material for any period presented herein. The Company enters into short-term foreign currency forward contracts to hedge currency exposures associated with certain monetary assets and liabilities denominated in non-functional currencies. These contracts have maturities of up to two months and are not designated as accounting hedges. Accordingly, these contracts are marked-to-market at the end of each period with unrealized gains and losses recorded in other income (expense), net, in the unaudited condensed consolidated statements of income. The amount of gains or losses associated with these forward contracts was 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. Interest Rate Risk The Company enters into forward interest rate swap agreements with independent counterparties to partially hedge the variability in cash flows due to changes in the Secured Overnight Financing Rate (“SOFR”), which is the benchmark interest rate associated with anticipated variable rate borrowings. These interest rate swaps have a maturity date of December 1, 2023 and effectively convert a portion of the Company’s variable interest rate obligations to fixed interest rate obligations. These swaps are accounted for as cash flow hedges under ASC Topic 815, Derivatives and Hedging . Interest rate swaps with an aggregate notional amount of $350 million were outstanding as of December 31, 2022 and October 1, 2022. The aggregate effective interest rate of these swaps as of December 31, 2022 was approximately 4.1%. These interest rate swaps had a positive value of $7 million and $6 million as of December 31, 2022 and October 1, 2022, respectively, of which the majority is included in prepaid expenses and other current assets and the remaining amount is included in other assets on the unaudited condensed consolidated balance sheets. |
Note 4 Debt
Note 4 Debt | 3 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt Long-term debt consisted of the following: As of December 31, October 1, (In thousands) Term loan due 2027, net of issuance costs $ 342,507 $ 346,737 Less: Current portion of Term Loan due 2027 17,500 17,500 Long-term debt $ 325,007 $ 329,237 Term Loan maturities as of December 31, 2022 by fiscal year are as follows: (In Thousands) Remainder of 2023 $13,125 2024 $13,125 2025 $17,500 2026 $21,875 2027 $280,000 $ 345,625 Revolving Credit Facility During the fourth quarter of 2022, the Company entered into a Fifth Amended and Restated Credit Agreement (the “Credit Agreement”), that provides for an $800 million revolving credit facility and a $350 million secured term loan (“Term Loan Due 2027”). Subject to the satisfaction of certain conditions, including obtaining additional commitments from existing and/or new lenders, the Company may increase the revolving commitment up to an additional $200 million. The Term Loan Due 2027 was fully drawn upon on the closing date. Loans under the Credit Agreement bear interest, at the Company's option, at either the SOFR or a base rate, in each case plus a spread determined based on the Company's credit rating. Interest on the loans is payable quarterly in arrears with respect to base rate loans and at the end of an interest period (or at three-month intervals if the interest period exceeds three months) in the case of SOFR loans. The outstanding principal amount of all loans under the Credit Agreement, including, the Term Loan Due 2027, together with accrued and unpaid interest, is due on September 27, 2027. The Company is required to repay a portion of the principal amount of the Term Loan Due 2027 equal to 1.25% of the principal in quarterly installments. Certain of the Company’s domestic subsidiaries are guarantors under the Credit Agreement. The Company and the subsidiary guarantors’ obligations under the Credit Agreement are secured by a lien on substantially all of their respective assets (excluding real property), including cash, accounts receivable and the shares of certain Company subsidiaries, subject to certain exceptions. As of December 31, 2022, there were no borrowings and $9 million of letters of credit outstanding under the Credit Agreement. Foreign Short-term Borrowing Facilities As of December 31, 2022, certain foreign subsidiaries of the Company had a total of $67 million of short-term borrowing facilities available, under which no borrowings were outstanding. Debt Covenants The Company's Credit Agreement requires the Company to comply with certain financial covenants, namely a maximum consolidated leverage ratio and a minimum interest coverage ratio, in both cases measured on the basis of a trailing 12-month look-back period. 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 and paying dividends, subject to certain exceptions. The Company was in compliance with these covenants as of December 31, 2022. |
Note 5 Leases
Note 5 Leases | 3 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Lessee, Operating Leases | Leases The Company’s leases consist primarily of operating leases for buildings and land and have initial lease terms of up to 44 years. Certain of these leases contain an option to extend the lease term for additional periods or to terminate the lease after an initial non-cancelable term. Renewal options are considered in the measurement of the Company’s initial lease liability and corresponding right-of-use (“ROU”) assets only if it is reasonably certain that the Company will exercise such options. Leases with lease terms of twelve months or less are not recorded on the Company’s balance sheet. ROU assets and lease liabilities recorded in the unaudited condensed consolidated balance sheet are as follows: As of December 31, October 1, (In thousands) Other assets $ 88,924 $ 79,495 Accrued liabilities $ 19,112 $ 16,695 Other long-term liabilities 57,307 48,566 Total lease liabilities $ 76,419 $ 65,261 Weighted average remaining lease term (in years) 11.86 15.74 Weighted average discount rate 3.02 % 2.40 % Lease expense and supplemental cash flow information related to operating leases are as follows: Three Months Ended December 31, January 1, (In thousands) Operating lease expense (1) $ 9,367 $ 5,910 Three Months Ended December 31, January 1, (In thousands) Cash paid for operating lease liabilities $ 5,549 $ 4,809 (1) Includes immaterial amounts of short term leases, variable lease costs and sublease income. Future lease payments under non-cancelable operating leases as of December 31, 2022, by fiscal year, are as follows: Operating Leases (In thousands) Remainder of 2023 $ 16,307 2024 19,081 2025 16,160 2026 12,103 2027 8,864 2028 2,355 Thereafter 8,930 Total lease payments 83,800 Less: imputed interest 7,381 Total $ 76,419 |
Note 6 Accounts Receivable Sale
Note 6 Accounts Receivable Sale Program | 3 Months Ended |
Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | |
Transfers and Servicing of Financial Assets [Text Block] | Accounts Receivable Sale Program The Company is a party to a Receivable Purchase Agreement (the “RPA”) with certain third-party banking institutions for the sale of trade receivables generated from sales to certain customers, subject to acceptance by, and a funding commitment from, the banks that are party to the RPA. 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. |
Note 7 Commitments and Continge
Note 7 Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Contingencies From time to time, the Company is a party to litigation, claims and other contingencies, including environmental, regulatory and employee matters and examinations and investigations by governmental agencies, which arise in the ordinary course of business. The Company records a contingent liability when it is probable that a loss has been incurred and the amount of loss is reasonably estimable in accordance with ASC Topic 450, Contingencies, or other applicable accounting standards. As of December 31, 2022 and October 1, 2022, the Company had reserves of $37 million and $38 million, respectively, for environmental matters, warranty, litigation and other contingencies (excluding reserves for uncertain tax positions), which the Company believes are adequate. However, there can be no assurance that the Company’s reserves will be sufficient to settle these contingencies. Such reserves are included in accrued liabilities and other long-term liabilities on the unaudited condensed consolidated balance sheets. 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 December 31, 2022, 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 demands that the Company and other alleged defendants remediate groundwater contamination at four landfills located in Northern California to which the Company may have sent wastewater in the past. The Company is participating in a working group of other alleged defendants to better understand its potential exposure in this action and has reserved its estimated exposure for this matter as of December 31, 2022. 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 a predecessor company’s actions at a plant the Company sold in 1998 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. In April 2013, all claims against the Company were dismissed. The plaintiff appealed this dismissal and the Court of Appeal reversed the judgment in August 2017, remanding the case back to the Superior Court of California for trial. The first phase of a multi-phase trial against the Company and several other defendants commenced in April 2021 and the submission of evidence concluded in May 2022. On June 28, 2022, the Court issued a tentative ruling finding the Company and the other defendants liable for certain past investigation costs incurred by the plaintiff. A final statement of decision in this phase of the trial is expected in the third quarter of fiscal 2023. Based upon the Court’s tentative ruling, the Company believes a loss in this matter is probable and has recorded an estimated loss. Subsequent trial phases to assess the Company’s and certain other defendants’ liability for the plaintiff’s future remediation and other costs, and the allocation of damages among the liable defendants, are anticipated to occur in calendar year 2024 and beyond. It is probable that the Company will record additional losses in connection with this matter, and it is reasonably possible that the amount of such additional losses will be material. However, at the current time, the Company is unable to estimate the amount of such additional losses or a range of losses. The Company intends to continue defending the case vigorously and to seek appellate review of any adverse liability rulings or judgment at the appropriate time. Other Matters In October 2018, a contractor who had been retained by the Company through a third party temporary staffing agency filed a lawsuit against the Company in the Santa Clara County Superior Court on behalf of himself and all other similarly situated Company contractors and 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 sought certification of a class of all non-exempt employees. Although the Company continued to deny any wrongdoing, on November 19, 2020, the Company reached an agreement to resolve all claims, including claims under California’s Private Attorneys General Act of 2004 (the “Settlement”), which also resulted in the dismissal of a suit alleging substantially similar claims filed in the Santa Clara County Superior Court in June 2021. The final amount of the judicially approved Settlement was approximately $4 million and was paid during the first quarter of fiscal 2022. In December 2019, the Company sued a former customer, Dialight plc (“Dialight”), in the United States District Court for the Southern District of New York to collect approximately $10 million in unpaid accounts receivable and net obsolete inventory obligations. Later the same day, Dialight commenced its own action in the same court. Dialight’s complaint, which asserts claims for fraudulent inducement, breach of contract, and gross negligence/willful misconduct, alleges that the Company fraudulently misrepresented its capabilities to induce Dialight to enter into a Manufacturing Services Agreement (the “Dialight MSA”), and then breached its obligations contained in the Dialight MSA relating to quality, on-time delivery and supply chain management. Dialight seeks compensatory and punitive damages that it contends exceed $200 million, but which the Company believes are vastly overstated and are subject to a contractual limitation of liability that limits any Dialight recovery to less than $2 million. The Company continues to vigorously prosecute its claims against Dialight. Further, the Company strongly disagrees with Dialight’s allegations and is defending against them vigorously. No trial date has been set in this matter. For each of the pending matters noted above, the Company is unable to reasonably estimate a range of possible loss at this time. |
Note 8 Income Tax
Note 8 Income Tax | 3 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Tax The Company estimates its annual effective income tax rate at the end of each quarterly period. The estimate takes into account the geographic mix of expected pre-tax income (loss), expected total annual pre-tax income (loss), enacted changes in tax laws, implementation of tax planning strategies and possible outcomes of audits and other uncertain tax positions. To the extent there are fluctuations in any of these variables during a period, the provision for income taxes may vary. The Company’s provision for (benefit from) income taxes for the three months ended December 31, 2022 and January 1, 2022 was $20 million (18% of income before taxes) and $20 million (26% of income before taxes), respectively. The tax rate was lower for the three months ended December 31, 2022 due to the recognition of an $8 million tax benefit that resulted from the release of certain foreign tax reserves due to lapse of time and expiration of statutes of limitations. |
Note 9 Stockholders' Equity
Note 9 Stockholders' Equity | 3 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Stockholders’ Equity Accumulated Other Comprehensive Income Accumulated other comprehensive income, net of tax as applicable, consisted of the following: As of December 31, October 1, (In thousands) Foreign currency translation adjustments $ 70,112 $ 63,929 Unrealized holding gains (losses) on derivative financial instruments 5,285 4,112 Unrecognized net actuarial losses and transition costs for benefit plans (12,122) (11,716) Total $ 63,275 $ 56,325 Stock Repurchase Program During the three months ended December 31, 2022 and January 1, 2022, the Company repurchased 4 thousand and 1.5 million shares of its common stock for $0.2 million and $60 million, respectively, under stock repurchase programs authorized by the Board of Directors. These programs have no expiration dates and the timing of repurchases will depend 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, they also reduce the Company’s liquidity. As of December 31, 2022, an aggregate of $164 million remains available under these programs. In addition to the repurchases discussed above, the Company withheld 0.1 million and 0.2 million shares of its common stock during the three months ended December 31, 2022 and January 1, 2022, respectively, in settlement of employee tax withholding obligations due upon the vesting of restricted stock units. The Company paid $8 million and $9 million for the three months ended December 31, 2022 and January 1, 2022, respectively, to applicable tax authorities in connection with these repurchases. |
Note 10 Business Segment, Geogr
Note 10 Business Segment, Geographic and Customer Information | 3 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Business Segment, Geographic and Customer Information ASC Topic 280, Segment Reporting , establishes standards for reporting information about operating segments, products and services, geographic areas of operations and major customers. Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker or decision making group in deciding how to allocate resources and in assessing performance. The Company’s operations are managed as two businesses: Integrated Manufacturing Solutions (“IMS”) and CPS. The Company’s CPS business consists of multiple operating segments which do not meet the quantitative threshold for being presented individually as reportable segments. Therefore, financial information for these operating segments is presented in a single category entitled “CPS” and the Company has only one reportable segment - IMS. The following table presents revenue and a measure of segment gross profit used by management to allocate resources and assess performance of operating segments: Three Months Ended December 31, January 1, (In thousands) Gross sales: IMS $ 1,937,668 $ 1,425,010 CPS 463,646 367,277 Intersegment revenue (39,953) (34,962) Net sales $ 2,361,361 $ 1,757,325 Gross profit: IMS $ 133,337 $ 106,629 CPS 61,845 42,738 Total 195,182 149,367 Unallocated items (1) (4,475) (4,878) Total $ 190,707 $ 144,489 (1) For purposes of evaluating segment performance, management excludes certain items from its measure of gross profit. These items consist of stock-based compensation expense, amortization of intangible assets and litigation settlements. Net sales by geographic segment, determined based on the country in which a product is manufactured, were as follows: Three Months Ended December 31, January 1, (In thousands) Net sales: Americas (1) $ 1,141,304 $ 797,020 APAC 914,341 691,071 EMEA 305,716 269,234 Total $ 2,361,361 $ 1,757,325 (1) Mexico represents approximately 70% and 60% of the Americas revenue and the U.S. represents approximately 30% and 40% of the Americas revenue for the first quarter of 2023 and 2022, respectively. Percentage of net sales represented by ten largest customers 51 % 48 % Number of customers representing 10% or more of net sales 1 1 |
Note 11 Earnings Per Share
Note 11 Earnings Per Share | 3 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Earnings Per Share Basic and diluted per share amounts are calculated by dividing net income attributable to common shareholders by the weighted average number of shares of common stock outstanding during the period, as follows: Three Months Ended December 31, January 1, (In thousands, except per share data) Numerator: Net income attributable to common shareholders $ 88,399 $ 58,634 Denominator: Weighted average common shares outstanding 57,727 64,399 Effect of dilutive stock options and restricted stock units 2,140 1,834 Denominator for diluted earnings per share 59,867 66,233 Net income attributable to common shareholders per share: Basic $ 1.53 $ 0.91 Diluted $ 1.48 $ 0.89 |
Note 12 Stock-Based Compensatio
Note 12 Stock-Based Compensation | 3 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Share-based Payment Arrangement [Text Block] | Stock-Based Compensation Stock-based compensation expense was recognized as follows: Three Months Ended December 31, January 1, (In thousands) Cost of sales $ 4,242 $ 3,783 Selling, general and administrative 7,142 5,135 Research and development 225 114 Total $ 11,609 $ 9,032 As of December 31, 2022, an aggregate of 6 million shares of common stock were authorized for future issuance under the Company’s stock plans, of which 4 million of such shares were issuable upon exercise of outstanding options and delivery of shares upon vesting of restricted stock units and 2 million shares of common stock were available for future grant. Restricted and Performance Stock Units The Company grants restricted stock units and restricted stock units with performance conditions (“PSUs”) to executive officers, directors and certain other employees. These units vest over periods ranging from one year to four years and/or upon achievement of specified performance criteria, with associated compensation expense recognized ratably over the vesting period. The Company also grants shares for which vesting is contingent on cumulative non-GAAP earnings per share measured over three fiscal years. If a minimum threshold is not achieved during the measurement period, the shares will be cancelled. If a minimum threshold is achieved or exceeded, the number of shares of common stock that will be issued will range from 70% to 130% of the number of PSUs granted, depending on the extent of performance. Additionally, the number of shares that vest may be adjusted up or down by up to 15% based on the Company’s total shareholder return relative to that of its peer group over this same period. Activity with respect to the Company’s restricted stock units and PSUs was as follows: Number of Weighted- Weighted- Aggregate (In thousands) (In thousands) Outstanding as of October 1, 2022 3,280 37.11 1.35 155,049 Granted 510 60.21 Vested/Forfeited/Cancelled (367) 34.53 Outstanding as of December 31, 2022 3,423 40.83 1.42 200,548 Expected to vest as of December 31, 2022 2,998 40.28 1.34 175,594 |
Note 13 Strategic Transactions
Note 13 Strategic Transactions | 3 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combination Disclosure | Strategic Transaction India Joint Venture On October 3, 2022, the Company completed a joint venture transaction pursuant to a Share Subscription and Purchase Agreement (the “SSPA”) and a Joint Venture and Shareholders’ Agreement (the “Shareholders’ Agreement”) previously entered into with Reliance Strategic Business Ventures Limited (“RSBVL”), a wholly owned subsidiary of Reliance Industries Limited. Pursuant to the SSPA and the Shareholders’ Agreement, the parties established Sanmina SCI India Private Limited (“SIPL”), the Company’s existing Indian manufacturing entity, as a joint venture to engage in manufacturing in India of telecommunications equipment, data center and internet equipment, medical equipment, clean technology equipment and other high-tech equipment. This partnership leverages the Company’s advanced manufacturing experience and RSBVL’s expertise and leadership in the Indian business ecosystem. In addition to supporting the Company’s current customer base, the joint venture will create a state-of-the-art ‘Manufacturing Technology Center of Excellence’ that will serve as an incubation center to support the product development and hardware start-up ecosystem in India, as well as promote research and innovation of leading-edge technologies. As a result of the transaction, RSBVL acquired shares of SIPL for approximately $216 million of cash such that RSBVL holds 50.1% of the outstanding shares of SIPL and the Company holds the remaining 49.9% of the outstanding shares of SIPL. In connection with RSBVL’s investment, Sanmina and RSBVL entered into a management services contract pursuant to which Sanmina has the unilateral ability to make the significant financial and operating decisions made in the ordinary course of SIPL’s business. In accordance with ASC 810, Consolidation, the Company is required to consolidate entities in which it has a controlling financial interest. The Company determined the voting interest model was applicable under ASC 810 and concluded that, despite not having a majority ownership interest, the Company has a controlling financial interest in SIPL through the management services contract. Therefore, the Company has, by contract, the unilateral ability to control the significant decisions made in the ordinary course of SIPL’s business. Because the Company has a controlling financial interest in SIPL, the Company continues to consolidate SIPL. However, the Company periodically assesses whether any changes in facts and circumstances have occurred that could require the Company to deconsolidate SIPL. The Company recognized a noncontrolling interest of $132 million and an increase in additional paid-in-capital of $84 million in the unaudited condensed consolidated financial statements in connection with the sale of shares of SIPL to RSBVL. SIPL’s cash and cash equivalents balance of $186 million as of December 31, 2022, is not available for general corporate purposes and must be retained in SIPL to fund SIPL’s operations. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting [Text Block] | The accompanying unaudited condensed consolidated financial statements of Sanmina Corporation (the “Company”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been omitted pursuant to those rules or regulations. The interim condensed consolidated financial statements are unaudited, but reflect all adjustments, consisting primarily of normal recurring adjustments, that are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended October 1, 2022, included in the Company’s 2022 Annual Report on Form 10-K.The unaudited condensed consolidated financial statements include all accounts of the Company, its wholly-owned subsidiaries and subsidiaries in which it has control. All intra-company accounts and transactions have been eliminated. Noncontrolling interest represents a noncontrolling investor’s interest in the results of operations of subsidiaries that the Company controls and consolidates. |
Use of Estimates, Policy [Policy Text Block] | The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Due to the COVID-19 pandemic, the global economy and financial markets have been disrupted and there is a significant amount of uncertainty about the length and severity of the consequences caused by the pandemic. The Company has considered information available to it as of the date of issuance of these financial statements and is not aware of any specific events or circumstances that would require an update to its estimates or judgments, or a revision to the carrying value of its assets or liabilities. These estimates may change as new events occur and additional information becomes available. Actual results could differ materially from these estimates. Results of operations for the first quarter of 2023 are not necessarily indicative of the results that may be expected for other interim periods or for the full fiscal year. |
Fiscal Period, Policy [Policy Text Block] | The Company operates on a 52 or 53 week year ending on the Saturday nearest September 30. Fiscal 2023 and 2022 are each 52-week years. All references to years relate to fiscal years unless otherwise noted. |
Note 2 Revenue Recognition (Tab
Note 2 Revenue Recognition (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended December 31, January 1, (In thousands) Segments: IMS $ 1,927,112 $ 1,416,911 CPS 434,249 340,414 Total $ 2,361,361 $ 1,757,325 End Markets: Industrial, Defense, Medical and Automotive $ 1,345,581 $ 1,054,971 Communications Networks and Cloud Infrastructure 1,015,780 702,354 Total $ 2,361,361 $ 1,757,325 Geography: Americas (1) $ 1,141,304 $ 797,020 APAC 914,341 691,071 EMEA 305,716 269,234 Total $ 2,361,361 $ 1,757,325 (1) Mexico represents approximately 70% and 60% of the Americas revenue and the U.S. represents approximately 30% and 40% of the Americas revenue for the first quarter of 2023 and 2022, respectively. |
Note 3 Derivative Financial Ins
Note 3 Derivative Financial Instruments (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Financial Instruments [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | As of December 31, October 1, Derivatives Designated as Accounting Hedges: Notional amount (in thousands) $ 139,297 $ 123,172 Number of contracts 50 50 Derivatives Not Designated as Accounting Hedges: Notional amount (in thousands) $ 512,843 $ 531,558 Number of contracts 42 43 |
Note 4 Debt (Tables)
Note 4 Debt (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | As of December 31, October 1, (In thousands) Term loan due 2027, net of issuance costs $ 342,507 $ 346,737 Less: Current portion of Term Loan due 2027 17,500 17,500 Long-term debt $ 325,007 $ 329,237 |
Schedule of Maturities of Long-Term Debt [Table Text Block] | (In Thousands) Remainder of 2023 $13,125 2024 $13,125 2025 $17,500 2026 $21,875 2027 $280,000 $ 345,625 |
Note 5 Leases (Tables)
Note 5 Leases (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Asset and Liabilities, Lessee [Table Text Block] | As of December 31, October 1, (In thousands) Other assets $ 88,924 $ 79,495 Accrued liabilities $ 19,112 $ 16,695 Other long-term liabilities 57,307 48,566 Total lease liabilities $ 76,419 $ 65,261 Weighted average remaining lease term (in years) 11.86 15.74 Weighted average discount rate 3.02 % 2.40 % |
Lease, Cost [Table Text Block] | Three Months Ended December 31, January 1, (In thousands) Operating lease expense (1) $ 9,367 $ 5,910 Three Months Ended December 31, January 1, (In thousands) Cash paid for operating lease liabilities $ 5,549 $ 4,809 (1) Includes immaterial amounts of short term leases, variable lease costs and sublease income. |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Operating Leases (In thousands) Remainder of 2023 $ 16,307 2024 19,081 2025 16,160 2026 12,103 2027 8,864 2028 2,355 Thereafter 8,930 Total lease payments 83,800 Less: imputed interest 7,381 Total $ 76,419 |
Note 9 Stockholders' Equity (Ta
Note 9 Stockholders' Equity (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | As of December 31, October 1, (In thousands) Foreign currency translation adjustments $ 70,112 $ 63,929 Unrealized holding gains (losses) on derivative financial instruments 5,285 4,112 Unrecognized net actuarial losses and transition costs for benefit plans (12,122) (11,716) Total $ 63,275 $ 56,325 |
Note 10 Business Segment, Geo_2
Note 10 Business Segment, Geographic and Customer Information (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended December 31, January 1, (In thousands) Gross sales: IMS $ 1,937,668 $ 1,425,010 CPS 463,646 367,277 Intersegment revenue (39,953) (34,962) Net sales $ 2,361,361 $ 1,757,325 Gross profit: IMS $ 133,337 $ 106,629 CPS 61,845 42,738 Total 195,182 149,367 Unallocated items (1) (4,475) (4,878) Total $ 190,707 $ 144,489 (1) For purposes of evaluating segment performance, management excludes certain items from its measure of gross profit. These items consist of stock-based compensation expense, amortization of intangible assets and litigation settlements. |
Schedule of Revenue from External Customers by Geographic Area [Table Text Block] | Three Months Ended December 31, January 1, (In thousands) Net sales: Americas (1) $ 1,141,304 $ 797,020 APAC 914,341 691,071 EMEA 305,716 269,234 Total $ 2,361,361 $ 1,757,325 (1) Mexico represents approximately 70% and 60% of the Americas revenue and the U.S. represents approximately 30% and 40% of the Americas revenue for the first quarter of 2023 and 2022, respectively. Percentage of net sales represented by ten largest customers 51 % 48 % Number of customers representing 10% or more of net sales 1 1 |
Note 11 Earnings Per Share (Tab
Note 11 Earnings Per Share (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended December 31, January 1, (In thousands, except per share data) Numerator: Net income attributable to common shareholders $ 88,399 $ 58,634 Denominator: Weighted average common shares outstanding 57,727 64,399 Effect of dilutive stock options and restricted stock units 2,140 1,834 Denominator for diluted earnings per share 59,867 66,233 Net income attributable to common shareholders per share: Basic $ 1.53 $ 0.91 Diluted $ 1.48 $ 0.89 |
Note 12 Stock-Based Compensat_2
Note 12 Stock-Based Compensation (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | Three Months Ended December 31, January 1, (In thousands) Cost of sales $ 4,242 $ 3,783 Selling, general and administrative 7,142 5,135 Research and development 225 114 Total $ 11,609 $ 9,032 |
Schedule of Restricted Stock Units Award Activity [Table Text Block] | Number of Weighted- Weighted- Aggregate (In thousands) (In thousands) Outstanding as of October 1, 2022 3,280 37.11 1.35 155,049 Granted 510 60.21 Vested/Forfeited/Cancelled (367) 34.53 Outstanding as of December 31, 2022 3,423 40.83 1.42 200,548 Expected to vest as of December 31, 2022 2,998 40.28 1.34 175,594 |
Note 2 Disagregation of Revenue
Note 2 Disagregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | ||
Disaggregation of Revenue [Line Items] | |||
Percent of Net Sales Transferred Over Time | 95% | ||
Raw Materials, net of reserves, as a percentage of total Inventory | 99% | ||
Number of Other Operating Segment Excluding DAS | 11 | ||
Net sales | $ 2,361,361 | $ 1,757,325 | |
Gross profit | 190,707 | 144,489 | |
Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Gross profit | 195,182 | 149,367 | |
Americas | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [1] | 1,141,304 | 797,020 |
EMEA | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 305,716 | 269,234 | |
Asia Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 914,341 | $ 691,071 | |
Mexico | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of Net Sales to Americas Net Sales | 70% | 60% | |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of Net Sales to Americas Net Sales | 30% | 40% | |
Industrial, Defense, Medical and Automotive | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 1,345,581 | $ 1,054,971 | |
Communications Networks and Cloud Infrastructure | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,015,780 | 702,354 | |
IMS Third Party Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,927,112 | 1,416,911 | |
CPS Third Party Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 434,249 | 340,414 | |
CPS | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 463,646 | 367,277 | |
Gross profit | $ 61,845 | $ 42,738 | |
[1]Mexico represents approximately 70% and 60% of the Americas revenue and the U.S. represents approximately 30% and 40% of the Americas revenue for the first quarter of 2023 and 2022, respectively. |
Note 3 Fair Value (Details)
Note 3 Fair Value (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Oct. 01, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 22% | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets for Plan Benefits, Defined Benefit Plan | $ 17 | |
Deferred Compensation Plan Assets | $ 39 | 37 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Derivatives Designated as Accounting Hedges: | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 7 | $ 6 |
Note 3 Derivatives (Details)
Note 3 Derivatives (Details) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 USD ($) | Oct. 01, 2022 USD ($) | |
Derivatives Designated as Accounting Hedges: | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 139,297 | $ 123,172 |
Number of contracts | 50 | 50 |
Maximum Length of Time Hedged | 12 months | |
Derivatives Designated as Accounting Hedges: | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 350,000 | $ 350,000 |
Maturity Date | Dec. 01, 2023 | |
Effective Interest Rate | 4.10% | |
Derivatives Not Designated as Accounting Hedges: | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 512,843 | $ 531,558 |
Number of contracts | 42 | 43 |
Maximum Remaining Maturity | 2 months | |
Fair Value, Inputs, Level 2 [Member] | Derivatives Designated as Accounting Hedges: | Interest Rate Swap [Member] | Fair Value, Recurring [Member] | ||
Derivative [Line Items] | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 7,000 | $ 6,000 |
Note 4 Debt Schedule (Details)
Note 4 Debt Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Oct. 01, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 325,007 | $ 329,237 |
Term Loan Due 2027 | ||
Debt Instrument [Line Items] | ||
Term loan due 2027, net of issuance costs | 342,507 | 346,737 |
Less: Current portion of Term Loan due 2027 | 17,500 | $ 17,500 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Remainder of Fiscal Year | 13,125 | |
Long-Term Debt, Maturity, Year One | 13,125 | |
Long-Term Debt, Maturity, Year Two | 17,500 | |
Long-Term Debt, Maturty, Year Three | 21,875 | |
Repayments of Principal in Year Four | 280,000 | |
Long-term Debt, Gross | $ 345,625 |
Note 4 Line of Credit Facility
Note 4 Line of Credit Facility (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2022 USD ($) | |
Foreign Line of Credit | |
Line of Credit Facility [Line Items] | |
Maximum Borrowing Capacity | $ 67 |
Long-term Line of Credit | 0 |
Fifth Amended and Restated Credit Agreement | |
Line of Credit Facility [Line Items] | |
Maximum Borrowing Capacity | 800 |
Long-term Line of Credit | 0 |
Letters of Credit Outstanding, Amount | 9 |
Term Loan | 350 |
Additional Credit Line | $ 200 |
Line of Credit Facility, Expiration Date | Sep. 27, 2027 |
Term Loan Due 2027 | Fifth Amended and Restated Credit Agreement | |
Line of Credit Facility [Line Items] | |
Repayment Percentage for Long-term Debt | 1.25% |
Note 5 Lessee Lease Description
Note 5 Lessee Lease Description (Details) | Dec. 31, 2022 |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Term of Contract | 44 years |
Note 5 Leases (Detail)
Note 5 Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Oct. 01, 2022 |
Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 88,924 | $ 79,495 |
Operating Lease, Liability, Current | 19,112 | 16,695 |
Operating Lease, Liability, Noncurrent | 57,307 | 48,566 |
Operating Lease, Liability | $ 76,419 | $ 65,261 |
Operating Lease, Weighted Average Remaining Lease Term | 11 years 10 months 9 days | 15 years 8 months 26 days |
Operating Lease, Weighted Average Discount Rate, Percent | 3.02% | 2.40% |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other | Other |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued liabilities | Accrued liabilities |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other | Other |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Liabilities, Total [Member] | Liabilities, Total [Member] |
Note 5 Lease Cost (Details)
Note 5 Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | ||
Leases [Abstract] | |||
Operating Leases, Rent Expense, Net | [1] | $ 9,367 | $ 5,910 |
Operating Lease, Payments | $ 5,549 | $ 4,809 | |
[1]Includes immaterial amounts of short term leases, variable lease costs and sublease income. |
Note 5 Future Lease Liability (
Note 5 Future Lease Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Oct. 01, 2022 |
Lessee, Operating Lease, Liability, to be Paid [Abstract] | ||
Lessee, Operating Lease, Liability, to be Paid, Remainder of Fiscal Year | $ 16,307 | |
Lessee, Operating Lease, Liability, to be Paid, Year One | 19,081 | |
Lessee, Operating Lease, Liability, to be Paid, Year Two | 16,160 | |
Lessee, Operating Lease, Liability, to be Paid, Year Three | 12,103 | |
Lessee, Operating Lease, Liability, to be Paid, Year Four | 8,864 | |
Lessee, Operating Lease, Liability, to be Paid, Year Five | 2,355 | |
Lessee, Operating Lease, Liability, to be Paid, after Year Five | 8,930 | |
Lessee, Operating Lease, Liability, to be Paid | 83,800 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 7,381 | |
Operating Lease, Liability | $ 76,419 | $ 65,261 |
Note 6 Accounts Receivable Sa_2
Note 6 Accounts Receivable Sale Program (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Oct. 01, 2022 | |
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||
Face Value of Receivable Sold, Percentage | 100% | ||
Accounts Receivable Sold During The Period | $ 796 | $ 93 | |
RPA [Member] | |||
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||
Accounts Receivable Sold and Outstanding | 149 | $ 194 | |
Amount Collected But Not Remitted to Financial Institutions | $ 65 | $ 49 |
Note 7 Contingencies (Details)
Note 7 Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Oct. 01, 2022 | |
Loss Contingencies [Line Items] | |||
Loss Contingency Accrual | $ 37,000 | $ 38,000 | |
Collectibility of Receivable and Excess and Obsolete Inventory [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Damages Sought, Value | 10,000 | ||
Violation of Labor Code [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Damages Paid, Value | $ 4,000 | ||
Performance of Manufacturing Service Agreement | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Damages Sought, Value | 200,000 | ||
Performance of Manufacturing Service Agreement | Maximum [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Estimate of Possible Loss | $ 2,000 |
Note 8 Income Tax (Details)
Note 8 Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 19,788 | $ 20,303 |
Effective Income Tax Rate | 18% | 26% |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | $ 8,000 |
Note 9 Stockholders' Equity (De
Note 9 Stockholders' Equity (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Oct. 01, 2022 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Foreign currency translation adjustments | $ 70,112 | $ 63,929 |
AOCI, Cash Flow Hedge, Cumulative Gain (Loss), after Tax | 5,285 | 4,112 |
Unrecognized net actuarial losses and transition costs for benefit plans | (12,122) | (11,716) |
Total | $ 63,275 | $ 56,325 |
Note 9 Stock Repurchase (Detail
Note 9 Stock Repurchase (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Stockholders' Equity Note [Abstract] | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 164,000 | |
Shares Repurchased | 4 | 1,500 |
Cash Paid for Share Repurchases | $ 200 | $ 60,000 |
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 100 | 200 |
Amount of Tax Withholding for Share-based Compensation | $ 8,000 | $ 9,000 |
Note 10 Revenue and Gross Profi
Note 10 Revenue and Gross Profit by Segment (Details) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2022 USD ($) | Jan. 01, 2022 USD ($) | ||
Segment Reporting Information [Line Items] | |||
Net sales | $ 2,361,361 | $ 1,757,325 | |
Gross profit | $ 190,707 | 144,489 | |
Number of Reportable Segments | 1 | ||
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Gross profit | $ 195,182 | 149,367 | |
Operating Segments | IMS | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,937,668 | 1,425,010 | |
Gross profit | 133,337 | 106,629 | |
Operating Segments | CPS | |||
Segment Reporting Information [Line Items] | |||
Net sales | 463,646 | 367,277 | |
Gross profit | 61,845 | 42,738 | |
Intersegment revenue | |||
Segment Reporting Information [Line Items] | |||
Net sales | (39,953) | (34,962) | |
Unallocated items | |||
Segment Reporting Information [Line Items] | |||
Gross profit | [1] | $ (4,475) | $ (4,878) |
[1]For purposes of evaluating segment performance, management excludes certain items from its measure of gross profit. These items consist of stock-based compensation expense, amortization of intangible assets and litigation settlements. |
Note 10 Segment Reporting by Ge
Note 10 Segment Reporting by Geographic Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | ||
Revenue from External Customer [Line Items] | |||
Net sales | $ 2,361,361 | $ 1,757,325 | |
Percentage of net sales represented by ten largest customers | 51% | 48% | |
Number of customers representing 10% or more of net sales | 1 | 1 | |
Americas | |||
Revenue from External Customer [Line Items] | |||
Net sales | [1] | $ 1,141,304 | $ 797,020 |
EMEA | |||
Revenue from External Customer [Line Items] | |||
Net sales | 305,716 | 269,234 | |
Asia Pacific | |||
Revenue from External Customer [Line Items] | |||
Net sales | $ 914,341 | $ 691,071 | |
Mexico | |||
Revenue from External Customer [Line Items] | |||
Percentage of Net Sales to Americas Net Sales | 70% | 60% | |
United States | |||
Revenue from External Customer [Line Items] | |||
Percentage of Net Sales to Americas Net Sales | 30% | 40% | |
[1]Mexico represents approximately 70% and 60% of the Americas revenue and the U.S. represents approximately 30% and 40% of the Americas revenue for the first quarter of 2023 and 2022, respectively. |
Note 11 Earnings Per Share (Det
Note 11 Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Weighted average shares used in computing per share amount: | ||
Net income attributable to common shareholders | $ 88,399 | $ 58,634 |
Weighted average common shares outstanding | 57,727 | 64,399 |
Effect of dilutive stock options and restricted stock units | 2,140 | 1,834 |
Denominator for diluted earnings per share | 59,867 | 66,233 |
Net income attributable to common shareholders per share: | ||
Basic | $ 1.53 | $ 0.91 |
Net income attributable to common shareholders per share: | ||
Diluted | $ 1.48 | $ 0.89 |
Note 12 Share-Based Compensatio
Note 12 Share-Based Compensation Arrangements (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Allocation of Recognized Period Costs [Line Items] | ||
Share-based Payment Arrangement, Noncash Expense | $ 11,609 | $ 9,032 |
Cost of sales | ||
Allocation of Recognized Period Costs [Line Items] | ||
Share-based Payment Arrangement, Expense | 4,242 | 3,783 |
Selling, general and administrative | ||
Allocation of Recognized Period Costs [Line Items] | ||
Share-based Payment Arrangement, Expense | 7,142 | 5,135 |
Research and development | ||
Allocation of Recognized Period Costs [Line Items] | ||
Share-based Payment Arrangement, Expense | $ 225 | $ 114 |
Note 12 Shares Authorized for F
Note 12 Shares Authorized for Future Issuance and Available for Grant (Details) shares in Millions | Dec. 31, 2022 shares |
Share-Based Payment Arrangement, Additional Disclosure [Abstract] | |
Common Stock, Capital Shares Reserved for Future Issuance | 6 |
Stock options and unvested restricted stock units outstanding | 4 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2 |
Note 12 Additional Information
Note 12 Additional Information (Details) | 3 Months Ended |
Dec. 31, 2022 | |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting Period | 1 year |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting Period | 4 years |
Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Potential adjustment to PSUs | 15% |
Performance Shares | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Potential Payout Percentage | 70% |
Performance Shares | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Potential Payout Percentage | 130% |
Note 12 Restricted Stock Rollfo
Note 12 Restricted Stock Rollforward (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2022 | Apr. 02, 2022 | Oct. 01, 2022 | |
Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding, beginning | 3,280 | ||
Granted | 510 | ||
Vested/Forfeited/Cancelled | (367) | ||
Outstanding, ending | 3,423 | ||
Expected to vest | 2,998 | ||
Weighted Average Grant Date Fair Value Restricted Stock [Abstract] | |||
Outstanding, beginning | $ 37.11 | ||
Granted | 60.21 | ||
Vested/Forfeited/Cancelled | 34.53 | ||
Outstanding, ending | 40.83 | ||
Expected to vest | $ 40.28 | ||
Weighted Average Remaining Contractual Term [Abstract] | |||
Outstanding | 1 year 5 months 1 day | 1 year 4 months 6 days | |
Expected to vest | 1 year 4 months 2 days | ||
Restricted Stock Non vested Aggregate Intrinsic Value [Abstract] | |||
Outstanding | $ 200,548 | $ 155,049 | |
Expected to vest | $ 175,594 |
Note 12 Unrecognized Stock Base
Note 12 Unrecognized Stock Based Compensation Expense (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2022 USD ($) | |
Unrecognized Compensation Cost and Weighted Average Period [Line Items] | |
Unrecognized compensation expense | $ 86 |
Weighted average period of recognition (years) | 1 year 4 months 24 days |
Note 13 Strategic Transactions
Note 13 Strategic Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Dec. 31, 2022 | Jan. 01, 2022 | Oct. 03, 2022 | Oct. 01, 2022 | |
Business Acquisition [Line Items] | ||||
Proceeds from sale of noncontrolling interest | $ 215,799 | $ 0 | ||
Cash and cash equivalents | 735,314 | $ 529,857 | ||
Joint Venture with Reliance [Member] | ||||
Business Acquisition [Line Items] | ||||
Proceeds from sale of noncontrolling interest | 216,000 | |||
Noncontrolling Interest in Joint Ventures | $ 132,000 | |||
APIC Attributable to Parent from Joint Venture Transaction | $ 84,000 | |||
Cash and cash equivalents | $ 186,000 | |||
Joint Venture with Reliance [Member] | RSVL | ||||
Business Acquisition [Line Items] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 50.10% | |||
Joint Venture with Reliance [Member] | Sanmina | ||||
Business Acquisition [Line Items] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 49.90% |