v3.26.1
Concentration of Risk and Segment Data
 9 Months Ended
May 31, 2026
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, 2026, the Company’s five largest customers accounted for approximately 36% of its net revenue and 78 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”), our Chief Executive Officer. The CODM regularly reviews net revenue by segment, segment income, and segment income margin, including prior period comparison and forecasted segment results, to assess the performance of the individual segments and make decisions about resources to be allocated to the segments.
The Company derives its revenue from providing comprehensive electronics design, production, and product management services. The Company’s operating segments consist of three segments – Regulated Industries, Intelligent Infrastructure, and Connected Living and Digital Commerce, which are also the Company’s reportable segments. 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.
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.
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 segment expenses, which includes 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. Segment income margin is defined as segment income divided by net revenue. 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 tables set forth operating segment information (in millions):
Three months ended
May 31, 2026May 31, 2025
Regulated IndustriesIntelligent InfrastructureConnected Living and Digital CommerceTotalRegulated IndustriesIntelligent InfrastructureConnected Living and Digital CommerceTotal
Point in time$141 $2,053 $499 $2,693 $96 $1,870 $404 $2,370 
Over time3,040 2,116 902 6,058 2,960 1,563 935 5,458 
Net revenue$3,181 $4,169 $1,401 $8,751 $3,056 $3,433 $1,339 $7,828 
Segment expenses$3,001 $3,913 $1,333 $8,247 $2,888 $3,252 $1,268 $7,408 
Segment income$180 $256 $68 $504 $168 $181 $71 $420 
Segment income margin5.6 %6.1 %4.9 %5.8 %5.5 %5.3 %5.3 %5.4 %
Nine months ended
May 31, 2026May 31, 2025
Regulated IndustriesIntelligent InfrastructureConnected Living and Digital CommerceTotalRegulated IndustriesIntelligent InfrastructureConnected Living and Digital CommerceTotal
Point in time$392 $6,736 $1,451 $8,579 $364 $4,193 $1,224 $5,781 
Over time8,888 5,314 2,557 16,759 8,390 4,383 2,996 15,769 
Net revenue$9,280 $12,050 $4,008 $25,338 $8,754 $8,576 $4,220 $21,550 
Segment expenses$8,778 $11,361 $3,805 $23,944 $8,316 $8,134 $3,999 $20,449 
Segment income$502 $689 $203 $1,394 $438 $442 $221 $1,101 
Segment income margin5.4 %5.7 %5.1 %5.5 %5.0 %5.1 %5.2 %5.1 %

 Three months endedNine months ended
 May 31, 2026May 31, 2025May 31, 2026May 31, 2025
Segment income$504 $420 $1,394 $1,101 
Reconciling items:
Amortization of intangibles(23)(17)(65)(45)
Stock-based compensation expense and related charges(25)(19)(115)(84)
Restructuring, severance and related charges(1)
(7)(16)(88)(144)
Business interruption and impairment charges, net(2)
— (1)— (10)
(Loss) gain from the divestiture of businesses(3)
(1)45 (1)45 
Acquisition and divestiture related charges(4)
(3)(9)(24)(17)
Loss on securities(5)
— (46)— (46)
Other expense (net of periodic benefit cost)(28)(30)(87)(75)
Interest expense, net(51)(37)(128)(112)
Income before income tax$366 $290 $886 $613 
(1)Charges recorded during the three months and nine months ended May 31, 2026, relate to targeted restructuring activities to optimize our cost structure and improve operational efficiencies. Charges recorded during the three months and nine months ended May 31, 2025, primarily related to the 2025 Restructuring Plan.
(2)Charges recorded during the nine months ended May 31, 2025, related 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 are classified as a component of cost of revenue and selling, general and administrative expenses in the Condensed Consolidated Statements of Operations.
(3)Gain recorded during the three months and nine months ended May 31, 2025, related primarily to post-closing adjustments associated with the divestiture of the Mobility Business during fiscal year 2024.
(4)Charges recorded during the nine months ended May 31, 2026, include $8 million of gains on forward foreign exchange contracts in connection with the acquisition of Hanley Energy Group.
(5)Charges recorded during the three months and nine months ended May 31, 2025, related to an impairment of an investment in Preferred Stock.
May 31, 2026August 31, 2025
Total assets:
Regulated Industries$6,335 $6,262 
Intelligent Infrastructure8,775 3,739 
Connected Living and Digital Commerce1,911 2,199 
Other non-allocated assets6,798 6,343 
Total$23,819 $18,543 
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, 2026
May 31, 2025
May 31, 2026
May 31, 2025
Foreign source revenue75.8 %72.5 %73.8 %76.6 %