SEGMENT INFORMATION AND ENTERPRISE-WIDE DISCLOSURES

12 Months Ended

Jun. 28, 2025

SEGMENT INFORMATION AND ENTERPRISE-WIDE DISCLOSURES

Operating segments are defined in ASC Topic 280, Segment Reporting as components of an enterprise for which separate financial information is available that is 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 chief operating decision maker is its Chief Executive Officer. As of June 28, 2025, the Company operates and internally manages a single operating segment, Electronics Manufacturing Services, as this is the only discrete financial information that is regularly reviewed by the chief operating decision maker. This segment provides integrated electronic and mechanical engineering, assembly, sourcing and procurement, logistics, and new product testing for our customers. The chief operating decision maker assesses performance and determines resource allocation for the Company’s single reportable segment based on consolidated net income/loss and total assets/liabilities. The accounting policies of the single reportable segment are the same as those described in the summary of significant accounting policies. Significant segment measures include gross profit which is primarily composed of materials spend and labor costs, which are further presented below.

Products and Services

Of the revenues for the years ended June 28, 2025, and June 29, 2024 contract manufacturing sales and services were $467.9 million and $566.9 million, respectively.

Geographic Areas

Net sales and long-lived assets (property, plant, and equipment) by geographic area for the years ended and as of June 28, 2025 and June 29, 2024 are summarized in the following table. Net sales set forth below are based on the shipping destination. Long-lived assets information is based on the physical location of the asset and includes property, plant and equipment, net, and operating lease right-of-use assets, net.


	Fiscal Year Ended
	(in thousands)
	2025		2024
Geographic net sales:
Domestic (U.S.)	$	368,558	$	439,334
Foreign	99,313		127,608
Total	$	467,871	$	566,942

Long-lived assets:
United States	$	20,519	$	24,497
Mexico	13,368		15,531
Vietnam	4,845		3,780
China	342		414
Total	$	39,074	$	44,222

Percentage of net sales made to customers located in the following countries:


	Fiscal Year Ended
	2025	2024
United States	79%	77%
China	20%	22%
Other foreign countries (a)	1%	1%
Total	100%	100%

(a) No other individual foreign country accounted for 10% or more of the foreign sales in fiscal years 2025 and 2024

Significant Customers

The percentage of net sales to and trade accounts receivables from significant customers were as follows:


	Percentage of Net Sales Fiscal Year		Percentage of Trade Receivables Fiscal Year
	2025	2024	2025	2024
Customer A	25%	20%	16%	21%

Significant Segment Measures

In accordance with the adoption of ASU 2023-07 in 2025, the Company determined that significant segment measures included gross profit which is primarily composed of materials and labor costs as follows (in thousands):


	Twelve Months Ended
	June 28, 2025		June 29, 2024
Materials	$	276,366	$	354,080
Labor costs	111,682		125,856
Other	43,396		47,127
Total Cost of sales	$	431,444	$	527,063

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

KEY TRONIC CORP 10-K