v3.26.1
SEGMENT REPORTING
 3 Months Ended
Jun. 26, 2026
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
The Company reports its financial performance based on three operating and reportable segments, ITS, RMS, and CPI and analyzes operating income as the measure of segment profitability. The determination of these segments is based on several factors, including the nature of products and services, the nature of production processes, customer base, delivery channels and similar economic characteristics.
An operating segment's performance is evaluated based on its pre-tax operating contribution, or segment income. Segment income is defined as net sales less cost of sales, and segment selling, general and administrative expenses, and does not include amortization of intangibles, stock-based compensation, certain restructuring and impairment charges, customer related asset impairment, legal and other, interest expense, interest income, other charges (income), net, and equity in earnings of unconsolidated affiliates. A portion of depreciation is allocated to the respective segments, together with other general corporate, research and development and administrative expenses.
The Company's Chief Executive Officer is our Chief Operating Decision Maker ("CODM") who compares actual segment income to budgeted financial performance in evaluating how we allocate resources, assess performance and make strategic and operational decisions.
Selected financial information by segment for the three-month periods ended June 26, 2026 and June 27, 2025 are in the tables below: Historical information for the three-month period ended June 27, 2025 has been recast to reflect the operating and reportable segments in the table below and in Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations."
ITSRMSCPITotal
Three-Months Ended June 26, 2026(In millions)
Net Sales$3,056 $2,670 $2,202 $7,928 
Segment Cost of Sales Total(2,831)(2,403)(1,928)
Segment selling, general and administrative expenses(67)(91)(60)
      Segment income$158 $176 $214 $548 
Reconciling items:
Corporate & other$14 
Intangible amortization23 
Stock-based compensation51 
Restructuring and impairment charges (1)1 
Legal and other (2)67 
Interest expenses60 
Interest income13 
Other charges (income), net(37)
Equity in earnings (losses) of unconsolidated affiliates(5)
Income before income taxes$377 
(1)Certain restructuring charges of $1 million are excluded from the reconciling amount of $1 million as they are included within segment income.
(2)Legal and other consists of costs not directly related to core business results and including matters relating to commercial disputes, government regulatory and compliance, intellectual property, antitrust, tax, employment or shareholder issues, product liability claims, impairments and other costs such as acquisition and portfolio optimization related costs. For the three month period ended June 26, 2026, legal and other included $53 million of costs associated with the intended spin-off of the CPI business and $14 million of costs related to business acquisitions.
ITSRMSCPITotal
Three-Months Ended June 27, 2025(In millions)
Net Sales$2,558 $2,391 $1,626 $6,575 
Segment Cost of Sales Total(2,363)(2,182)(1,428)
Segment selling, general and administrative expenses(64)(83)(43)
Segment income$131 $126 $155 $412 
Reconciling items:
Corporate & other$17 
Intangible amortization21 
Stock-based compensation34 
Restructuring charges23 
Legal and other (1)6 
Interest expenses51 
Interest income13 
Other charges (income), net7 
Equity in earnings (losses) of unconsolidated affiliates(20)
Income before income taxes$246 
(1)Legal and other consists of costs not directly related to core business results and including matters relating to commercial disputes, government regulatory and compliance, intellectual property, antitrust, tax, employment or shareholder issues, product liability claims and other issues on a global basis as well as acquisition and portfolio optimization related costs and asset impairments. During the first quarter of fiscal year 2026, legal costs were primarily related to costs from acquisitions occurring in fiscal year 2025 and the first quarter of fiscal year 2026.
Corporate and Other primarily includes corporate service costs that are not included in the CODM's assessment of the performance of each of the identified reportable segments.
The Company provides an overall platform of assets and services, which the segments utilize for the benefit of their various customers. The shared assets and services are contained within the Company's global manufacturing and design operations and include manufacturing and design facilities. Most of the underlying manufacturing and design assets are co-mingled in the operating campuses and are compatible to operate across segments and highly interchangeable throughout the platform. Given the highly interchangeable nature of the assets, they are not separately identified by segment nor reported by segment to the Company's CODM.
Property and equipment on a segment basis is not separately identified and is not internally reported by segment to the Company's CODM as described above.
Total depreciation expense, including amounts allocated to the reportable segments and Corporate and Other for the three-month periods ended June 26, 2026 and June 27, 205 are as follows:
Three-Month Periods Ended
June 26, 2026June 27, 2025
(In millions)
Depreciation expense:
Integrated Technology Solutions$36 $44 
Regulated Manufacturing Solutions56 54 
Cloud and Power Infrastructure21 14 
Corporate and Other3 3 
        Total depreciation expense$116 $115