v3.25.2
Concentration of Risk and Segment Data
 9 Months Ended
May 31, 2025
Segment Reporting [Abstract]  
Concentration of Risk and Segment Data Concentration of Risk and Segment Data
Concentration of Risk
Sales of the Company’s products are concentrated among specific customers. During the nine months ended May 31, 2025, the Company’s five largest customers accounted for approximately 34% of its net revenue and 88 customers accounted for approximately 90% of its net revenue. Sales to these customers were reported in the Regulated Industries, Intelligent Infrastructure, and Connected Living and Digital Commerce operating segments.
The Company procures components from a broad group of suppliers. Some of the products manufactured by the Company require one or more components that are available from only a single source.
Segment Data
Operating segments are defined as components of an enterprise that engage in business activities from which they may earn revenues and incur expenses; for which separate financial information is available; and whose operating results are regularly reviewed by the chief operating decision maker (“CODM”) to assess the performance of the individual segment and make decisions about resources to be allocated to the segment.
The Company derives its revenue from providing comprehensive electronics design, production, and product management services. The CODM evaluates performance and allocates resources on a segment basis. Prior to the first quarter of fiscal year 2025, the Company’s operating segments consisted of two segments – Electronics Manufacturing Services (“EMS”) and Diversified Manufacturing Services (“DMS”). Beginning September 1, 2024, the Company reorganized its internal structure to focus on speed, precision, and solutions and, as a result of the organizational realignment, the Company’s operating segments now consist of three segments – Regulated Industries, Intelligent Infrastructure, and Connected Living and Digital Commerce, which are also the Company’s reportable segments. All prior period disclosures presented have been recast to reflect this change.
The Regulated Industries segment is focused on regulated markets and includes revenues from customers primarily in the automotive and transportation, healthcare and packaging, and renewable energy infrastructure industries. The Intelligent Infrastructure segment is focused on the modern digital ecosystem including artificial intelligence (“AI”) infrastructure and includes revenues from customers primarily in the capital equipment, cloud and data center infrastructure, and networking and communications industries. The Connected Living and Digital Commerce segment is focused on digitalization and automation, including warehouse automation and robotics, and includes revenues from customers primarily in the connected living and digital commerce industries. The segments are organized based on the economic profiles of the services performed, including manufacturing capabilities, market strategy, margins, return on capital, and risk profiles.
Net revenue for the operating segments is attributed to the segment in which the service is performed. An operating segment’s performance is evaluated based on its pre-tax operating contribution, or segment income. Segment income is defined as net revenue less cost of revenue, segment selling, general and administrative expenses, segment research, and development expenses and an allocation of corporate manufacturing expenses and selling, general and administrative expenses. Certain items are excluded from the calculation of segment income. Total segment assets are defined as accounts receivable, contract assets, inventories, net, customer-related property, plant and equipment, intangible assets net of accumulated amortization, and goodwill. All other non-segment assets are reviewed on a global basis by management. Transactions between operating segments are generally recorded at amounts that approximate those at which we would transact with third parties.
The following table presents the Company’s revenues disaggregated by segment (in millions):
Three months ended
May 31, 2025May 31, 2024
Point in timeOver timeTotalPoint in timeOver timeTotal
Regulated Industries$96 $2,960 $3,056 $168 $2,877 $3,045 
Intelligent Infrastructure1,870 1,563 3,433 1,166 1,111 2,277 
Connected Living and Digital Commerce404 935 1,339 397 1,046 1,443 
Total$2,370 $5,458 $7,828 $1,731 $5,034 $6,765 
Nine months ended
May 31, 2025May 31, 2024
Point in timeOver timeTotalPoint in timeOver timeTotal
Regulated Industries$364 $8,390 $8,754 $414 $8,807 $9,221 
Intelligent Infrastructure4,193 4,383 8,576 3,443 3,446 6,889 
Connected Living and Digital Commerce(1)
1,224 2,996 4,220 2,962 2,847 5,809 
Total$5,781 $15,769 $21,550 $6,819 $15,100 $21,919 
(1)Decrease in point in time revenues from the prior period is primarily driven by the divestiture of the Mobility Business during the three months ended February 29, 2024.
The Company operates in approximately 30 countries worldwide. Sales to unaffiliated customers are based on the Company location that maintains the customer relationship and transacts the external sale. The following table sets forth, for the periods indicated, foreign source revenue expressed as a percentage of net revenue:
Three months ended
Nine months ended
 
May 31, 2025
May 31, 2024
May 31, 2025
May 31, 2024
Foreign source revenue72.5 %80.5 %76.6 %83.4 %
The following tables sets forth operating segment information (in millions):
 Three months endedNine months ended
 May 31, 2025May 31, 2024May 31, 2025May 31, 2024
Segment income and reconciliation of income before income tax
Regulated Industries$168 $183 $438 $469 
Intelligent Infrastructure181 121 442 327 
Connected Living and Digital Commerce71 46 221 391 
Total segment income$420 $350 $1,101 $1,187 
Reconciling items:
Amortization of intangibles(17)(12)(45)(27)
Stock-based compensation expense and related charges(19)(3)(84)(72)
Restructuring, severance and related charges(1)
(16)(55)(144)(252)
Business interruption and impairment charges, net(2)
(1)(14)(10)(14)
Gain from the divestiture of businesses(3)
45 — 45 944 
Acquisition and divestiture related charges(3)
(9)(3)(17)(64)
Loss on securities(4)
(46)— (46)— 
Other expense (net of periodic benefit cost)(30)(24)(75)(72)
Interest expense, net(37)(38)(112)(132)
Income before income tax$290 $201 $613 $1,498 
(1)Charges recorded during the three months and nine months ended May 31, 2025, and May 31, 2024, primarily related to the 2025 Restructuring Plan and 2024 Restructuring Plan, respectively.
(2)Charges recorded during the nine months ended May 31, 2025, relate primarily to costs associated with damage from Hurricanes Helene and Milton, which impacted our operations in St. Petersburg, Florida, and Asheville and Hendersonville, North Carolina. Charges recorded during the three months and nine months ended May 31, 2024, related to costs associated with product quality liabilities. Charges recorded during the three months and nine months ended May 31, 2025, and May 31, 2024, are classified as a component of cost of revenue and selling, general and administrative expenses in the Condensed Consolidated Statements of Operations.
(3)The Company completed the divestiture of the Mobility Business and recorded a pre-tax gain of $944 million during the nine months ended May 31, 2024. Certain post-closing adjustments were realized in March 2025, which resulted in the recognition of a $54 million pre-tax gain during the three months ended May 31, 2025. The Company incurred transaction and disposal costs in connection with the sale of approximately $64 million during the nine months ended May 31, 2024.
(4)Charges recorded during the three months and nine months ended May 31, 2025, relate to an impairment of an investment in Preferred Stock.
May 31, 2025August 31, 2024
Total assets:
Regulated Industries$6,345 $5,855 
Intelligent Infrastructure3,748 2,624 
Connected Living and Digital Commerce2,197 2,297 
Other non-allocated assets6,297 6,575 
Total$18,587 $17,351