Segment Information

6 Months Ended

Jun. 29, 2013

Segment Reporting [Abstract]

Segment Information

Segment Information

Subsequent to our acquisition of BrightPoint, we have operated predominantly in two industry segments: (1) distribution of IT products and supply chain solutions worldwide and (2) mobile device lifecycle services and logistics solutions. Our IT distribution reporting segments are based on geographic location, and the measure of segment profit is income from operations.

Geographic areas in which we operated our IT distribution reporting segments during 2013 include North America (the United States and Canada), Europe (Austria, Belgium, France, Germany, Hungary, Italy, the Netherlands, Spain, Sweden, Switzerland and the United Kingdom), Asia-Pacific (Australia, the People’s Republic of China including Hong Kong, India, Indonesia, Malaysia, New Zealand, Singapore, Thailand, Lebanon, United Arab Emirates, Turkey, Egypt and South Africa), and Latin America (Brazil, Chile, Colombia, Mexico, Peru, and our Latin American export operations in Miami).

As discussed in Note 7, our acquisition of BrightPoint in October 2012 expanded our product and service offerings to mobile device lifecycle services and logistics solution worldwide and has been added as a reporting segment. BrightPoint has operations in the following geographic areas: the United States, Finland, Germany, Norway, Poland, Portugal, Senegal, Slovakia, South Africa, Spain, Sweden, Switzerland, the United Arab Emirates, the United Kingdom, Australia, Hong Kong, India, Malaysia, New Zealand and Singapore.

We do not allocate stock-based compensation recognized (see Note 4) to our operating units; therefore, we are reporting this as a separate amount.

Financial information by reporting segment is as follows:

	Thirteen Weeks Ended						Twenty-six Weeks Ended
	June 29, 2013			June 30, 2012			June 29, 2013			June 30, 2012
Net sales
IT Distribution:
North America	$	4,039,064		$	3,837,244		$	7,906,883		$	7,444,191
Europe	2,430,372			2,460,141			5,099,366			5,107,197
Asia-Pacific	2,130,658			2,038,112			4,325,166			3,987,864
Latin America	459,828			442,398			921,786			874,024
BrightPoint	1,248,093			—			2,317,258			—
Total	$	10,308,015		$	8,777,895		$	20,570,459		$	17,413,276
Income from operations
IT Distribution:
North America	$	65,885		$	68,729		$	121,460		$	138,377
Europe	12,713			14,913			26,657			36,914
Asia-Pacific	19,061			14,835			32,896			29,255
Latin America	9,527			4,437			15,078			11,865
BrightPoint	13,151			—			22,458			—
Stock-based compensation expense	(6,541		)	(5,129		)	(13,957		)	(14,575		)
Total	$	113,796		$	97,785		$	204,592		$	201,836
Capital expenditures
IT Distribution:
North America	$	19,483		$	16,760		$	30,509		$	32,058
Europe	1,241			1,057			2,047			1,815
Asia-Pacific	1,263			2,615			2,389			11,171
Latin America	546			313			862			461
BrightPoint	1,493			—			3,650			—
Total	$	24,026		$	20,745		$	39,457		$	45,505
Depreciation
IT Distribution:
North America	$	8,708		$	6,351		$	15,827		$	13,377
Europe	2,512			2,530			5,048			5,121
Asia-Pacific	1,922			1,921			3,767			3,475
Latin America	341			305			670			628
BrightPoint	7,086			—			13,484			—
Total	$	20,569		$	11,107		$	38,796		$	22,601

	Thirteen Weeks Ended				Twenty-six Weeks Ended
	June 29, 2013		June 30, 2012		June 29, 2013		June 30, 2012
Amortization of intangible assets
IT Distribution:
North America	$	1,786	$	1,667	$	3,571	$	3,357
Europe	493		544		991		1,094
Asia-Pacific	209		268		421		728
Latin America	220		227		442		452
BrightPoint	9,289		—		18,337		—
Total	$	11,997	$	2,706	$	23,762	$	5,631

The integration, transition and other costs included in income from operations by reporting segment is as follows:

	Thirteen Weeks Ended				Twenty-six Weeks Ended
	June 29, 2013		June 30, 2012		June 29, 2013		June 30, 2012
Integration, transition and other costs (a)
IT Distribution:
North America	$	572	$	4,045	$	2,881	$	6,545
Europe	155		—		231		—
Asia-Pacific	310		43		319		43
Latin America	—		1,923		—		1,923
BrightPoint	4,893		—		7,077		—
Total	$	5,930	$	6,011	$	10,508	$	8,511

(a) Costs are primarily for legal, consulting and other costs associated with the integration of BrightPoint, acquisitions-related costs and other transition costs incurred for certain executives, charged to SG&A expenses. For the thirteen and twenty-six weeks ended June 30, 2012, it also included an asset impairment associated with our closure of in-country Argentina operations in Latin America, charged to SG&A expenses.

For a segment breakdown of reorganization costs, refer to Note 8.

	As of
	June 29, 2013		December 29, 2012
Identifiable assets
IT Distribution:
North America	$	3,695,019	$	4,103,657
Europe	2,387,341		2,883,678
Asia-Pacific	1,862,175		1,880,431
Latin America	518,346		652,552
BrightPoint	2,130,951		1,960,130
Total	$	10,593,832	$	11,480,448
Long-lived assets
IT Distribution:
North America	$	339,072	$	329,175
Europe	44,676		50,498
Asia-Pacific	40,315		45,898
Latin America	9,502		9,415
BrightPoint	385,827		418,820
Total	$	819,392	$	853,806

Net sales and long-lived assets for the United States, which is our country of domicile, are as follows:

	Thirteen Weeks Ended
	June 29, 2013				June 30, 2012
Net sales:
United States	$	3,872,694	38	%	$	3,504,273	40		%
Outside of the United States	6,435,321		62	%	5,273,622		60		%
Total	$	10,308,015	100	%	$	8,777,895	100		%
	Twenty-six Weeks Ended
	June 29, 2013				June 30, 2012
Net sales:
United States	$	7,530,134	37	%	$	6,642,722	38		%
Outside of the United States	13,040,325		63	%	10,770,554		62		%
Total	$	20,570,459	100	%	$	17,413,276	100		%
					As of
					June 29, 2013		December 29, 2012
Long-lived assets:
United States					$	593,753	$	595,949
Outside of the United States					225,639		257,857
Total					$	819,392	$	853,806