UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________________________________________________________

FORM 10-Q

_______________________________________________________________________

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended May 31, 2022

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to _________

Commission File Number: 001-31892

_______________________________________________________________________

TD SYNNEX CORPORATION

(Exact name of registrant as specified in its charter)

_______________________________________________________________________

Delaware	94-2703333
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification Number)
44201 Nobel Drive, Fremont, California	94538
(Address of principal executive offices)	(Zip Code)

(510) 656-3333

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	SNX	The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x	Accelerated filer	o
Non-accelerated filer	o	Smaller reporting company	o
Emerging growth company	o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Class	Outstanding as of June 29, 2022
Common Stock, $0.001 par value	95,848,188

TD SYNNEX CORPORATION

FORM 10-Q

INDEX

		Page
PART I	FINANCIAL INFORMATION	3
Item 1.	Financial Statements	3
	Consolidated Balance Sheets	3
	Consolidated Statements of Operations	4
	Consolidated Statements of Comprehensive Income (Loss)	5
	Consolidated Statements of Stockholders’ Equity	6
	Consolidated Statements of Cash Flows	7
	Notes to the Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	45
Item 4.	Controls and Procedures	45
PART II	OTHER INFORMATION	47
Item 1A.	Risk Factors	47
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	47
Item 6.	Exhibits	48
Signatures		49

2

PART I - FINANCIAL INFORMATION

ITEM 1. Financial Statements

TD SYNNEX CORPORATION

CONSOLIDATED BALANCE SHEETS

(currency and share amounts in thousands, except par value)

(unaudited)

	May 31, 2022		November 30, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	521,514	$	993,973
Accounts receivable, net	7,851,536		8,310,032
Receivables from vendors, net	1,032,892		1,118,963
Inventories	8,433,997		6,642,915
Other current assets	695,502		668,261
Total current assets	18,535,441		17,734,144
Property and equipment, net	418,083		483,443
Goodwill	3,856,807		3,917,276
Intangible assets, net	4,680,559		4,913,124
Other assets, net	566,939		618,393
Total assets	$	28,057,829	$	27,666,380
LIABILITIES AND EQUITY
Current liabilities:
Borrowings, current	$	208,575	$	181,256
Accounts payable	12,521,137		12,034,946
Other accrued liabilities	1,929,996		2,017,253
Total current liabilities	14,659,708		14,233,455
Long-term borrowings	3,902,627		3,955,176
Other long-term liabilities	479,735		556,134
Deferred tax liabilities	1,034,094		1,015,640
Total liabilities	20,076,164		19,760,405
Commitments and contingencies (Note 14)
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000 shares authorized, no shares issued or outstanding	—		—
Common stock, $0.001 par value, 200,000 shares authorized, 98,436 and 98,204 shares issued as of May 31, 2022 and November 30, 2021, respectively	98		98
Additional paid-in capital	7,315,664		7,271,337
Treasury stock, 3,201 and 2,633 shares as of May 31, 2022 and November 30, 2021, respectively	(259,800)		(201,139)
Accumulated other comprehensive loss	(469,816)		(336,194)
Retained earnings	1,395,519		1,171,873
Total stockholders' equity	7,981,665		7,905,975
Total liabilities and equity	$	28,057,829	$	27,666,380

(Amounts may not add due to rounding)

The accompanying Notes are an integral part of these Consolidated Financial Statements (unaudited).

3

TD SYNNEX CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(currency and share amounts in thousands, except per share amounts)

(unaudited)

	Three Months Ended				Six Months Ended
	May 31, 2022		May 31, 2021		May 31, 2022		May 31, 2021
Revenue	$	15,269,791	$	5,856,825	$	30,739,768	$	10,795,839
Cost of revenue	(14,314,002)		(5,527,650)		(28,815,318)		(10,162,097)
Gross profit	955,789		329,175		1,924,450		633,742
Selling, general and administrative expenses	(670,574)		(175,339)		(1,323,425)		(338,159)
Acquisition, integration and restructuring costs	(32,478)		(5,935)		(125,848)		(5,935)
Operating income	252,737		147,901		475,177		289,649
Interest expense and finance charges, net	(47,968)		(22,563)		(90,311)		(45,401)
Other expense, net	(6,255)		(755)		(10,523)		(2,089)
Income before income taxes	198,514		124,583		374,343		242,159
Provision for income taxes	(49,597)		(31,481)		(93,102)		(61,235)
Net income	$	148,917	$	93,102	$	281,241	$	180,924
Earnings per common share:
Basic	$	1.55	$	1.79	$	2.93	$	3.49
Diluted	$	1.55	$	1.78	$	2.92	$	3.46
Weighted-average common shares outstanding:
Basic	95,469		51,192		95,491		51,169
Diluted	95,742		51,707		95,784		51,636

(Amounts may not add due to rounding)

The accompanying Notes are an integral part of these Consolidated Financial Statements (unaudited).

4

TD SYNNEX CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(currency in thousands)

(unaudited)

	Three Months Ended				Six Months Ended
	May 31, 2022		May 31, 2021		May 31, 2022		May 31, 2021
Net income	$	148,917	$	93,102	$	281,241	$	180,924
Other comprehensive (loss) income:
Unrealized gains (losses) on cash flow hedges during the period, net of tax (expense) benefit of ($3,504) and $579 for the three months ended May 31, 2022 and 2021, respectively, and ($6,422) and $541 for the six months ended May 31, 2022 and 2021, respectively	10,728		(1,821)		19,630		1,196
Reclassification of net losses on cash flow hedges to net income, net of tax (benefit) of ($2,225) and ($2,621) for the three months ended May 31, 2022, and 2021, respectively, and ($4,684) and ($5,159) for the six months ended May 31, 2022 and 2021, respectively	6,813		8,036		14,314		15,824
Total change in unrealized gains on cash flow hedges, net of taxes	17,541		6,215		33,944		17,020
Foreign currency translation adjustments, net of tax (expense) of ($31) and ($400) for the three months ended May 31, 2022 and 2021, respectively, and ($106) and ($1,244) for the six months ended May 31, 2022 and 2021, respectively	(170,342)		28,589		(167,566)		28,569
Other comprehensive (loss) income	(152,801)		34,804		(133,622)		45,589
Comprehensive (loss) income	$	(3,884)	$	127,906	$	147,619	$	226,513

(Amounts may not add due to rounding)

The accompanying Notes are an integral part of these Consolidated Financial Statements (unaudited).

5

TD SYNNEX CORPORATION

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(currency in thousands, except per share amounts)

(unaudited)

	Three Months Ended				Six Months Ended
	May 31, 2022		May 31, 2021		May 31, 2022		May 31, 2021
Total Stockholders' equity, beginning balance	$	8,021,857	$	2,129,298	$	7,905,975	$	4,338,860
Common stock and additional paid-in capital:
Beginning balance	7,293,878		1,596,652		7,271,435		1,591,590
Share-based compensation	19,928		6,750		40,255		11,637
Common stock issued for employee benefit plans	1,956		2,329		4,072		2,503
Ending balance	7,315,762		1,605,730		7,315,762		1,605,730
Treasury stock:
Beginning balance	(230,374)		(192,010)		(201,139)		(191,216)
Repurchases of common stock for tax withholdings on equity awards	(403)		(161)		(5,881)		(955)
Repurchases of common stock	(29,023)		—		(52,780)		—
Ending balance	(259,800)		(192,171)		(259,800)		(192,171)
Retained earnings:
Beginning balance	1,275,368		904,629		1,171,873		3,133,058
Separation of Concentrix	—		—		—		(2,305,982)
Net income	148,917		93,102		281,241		180,924
Cash dividends declared	(28,766)		(10,454)		(57,595)		(20,723)
Ending balance	1,395,519		987,277		1,395,519		987,277
Accumulated other comprehensive loss:
Beginning balance	(317,015)		(179,973)		(336,194)		(194,572)
Separation of Concentrix	—		—		—		3,813
Other comprehensive (loss) income	(152,801)		34,804		(133,622)		45,589
Ending balance	(469,816)		(145,169)		(469,816)		(145,169)
Total stockholders' equity, ending balance	$	7,981,665	$	2,255,668	$	7,981,665	$	2,255,668
Cash dividends declared per share	$	0.30	$	0.20	$	0.60	$	0.40

(Amounts may not add due to rounding)

The accompanying Notes are an integral part of these Consolidated Financial Statements (unaudited).

6

TD SYNNEX CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(currency in thousands)

(unaudited)

	Six Months Ended
	May 31, 2022		May 31, 2021
Cash flows from operating activities:
Net income	$	281,241	$	180,924
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	255,126		31,500
Share-based compensation	40,255		11,637
Provision for doubtful accounts	24,492		2,676
Other	5,167		4,749
Changes in operating assets and liabilities, net of the impact of Concentrix separation:
Accounts receivable, net	301,882		376,523
Receivables from vendors, net	65,864		(5,532)
Inventories	(1,863,551)		8,314
Accounts payable	661,189		(268,522)
Other operating assets and liabilities	(56,147)		(37,952)
Net cash (used in) provided by operating activities	(284,482)		304,318
Cash flows from investing activities:
Purchases of property and equipment	(46,501)		(9,114)
Other	(150)		1,599
Net cash used in investing activities	(46,651)		(7,515)
Cash flows from financing activities:
Dividends paid	(57,595)		(20,723)
Repurchases of common stock	(52,780)		—
Net borrowings (repayments) on revolving credit loans	34,312		(53,976)
Principal payments on long term debt	(52,078)		—
Proceeds from issuance of common stock	4,072		2,503
Repurchases of common stock for tax withholdings on equity awards	(5,881)		(955)
Other	—		1,139
Net transfer of cash and cash equivalents to Concentrix	—		(149,948)
Net cash used in financing activities	(129,950)		(221,960)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(12,082)		13,740
Net (decrease) increase in cash, cash equivalents and restricted cash	(473,165)		88,583
Cash, cash equivalents and restricted cash at beginning of period	994,913		1,568,870
Cash, cash equivalents and restricted cash at end of period	$	521,748	$	1,657,454
Supplemental disclosure of non-cash financing activities:
Net assets transferred to Concentrix	$	—	$	2,322,598

(Amounts may not add due to rounding)

The accompanying Notes are an integral part of these Consolidated Financial Statements (unaudited).

7

TD SYNNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended May 31, 2022 and 2021

(Except per share amounts or as otherwise indicated, currency and share amounts in thousands)

(unaudited)

NOTE 1—ORGANIZATION AND BASIS OF PRESENTATION:

TD SYNNEX Corporation (together with its subsidiaries, herein referred to as “SYNNEX”, "TD SYNNEX" or the “Company”) is a leading global distributor and solutions aggregator for the information technology ("IT") ecosystem, headquartered in Fremont, California and Clearwater, Florida and has operations in North and South America, Europe and Asia-Pacific and Japan.

On December 1, 2020, the Company completed the previously announced separation of its customer experience services business (the “Separation”), in a tax-free transaction for federal income tax purposes, which was accomplished by the distribution of one hundred percent of the outstanding common stock of Concentrix Corporation (“Concentrix”). SYNNEX stockholders received one share of Concentrix common stock for every share of SYNNEX common stock held at the close of business on the record date. The Company distributed 51.6 million shares of Concentrix common stock to its stockholders. Concentrix is now an independent public company trading under the symbol “CNXC” on the Nasdaq Stock Market. After the Separation, the Company does not beneficially own any shares of Concentrix’ common stock. Beginning December 1, 2020, the Company no longer consolidates Concentrix within its financial results or reflects the financial results of Concentrix within its continuing results of operations.

In connection with the Separation, the Company and Concentrix entered into a separation and distribution agreement as well as various other agreements that provide a framework for the relationships between the parties going forward, including among others an employee matters agreement, a tax matters agreement, and a commercial agreement, pursuant to which Concentrix will continue to provide certain limited services to the Company following the Separation.

On March 22, 2021, SYNNEX entered into an agreement and plan of merger (the “Merger Agreement”) which provided that legacy SYNNEX Corporation would acquire legacy Tech Data Corporation, a Florida corporation ("Tech Data") through a series of mergers, which would result in Tech Data becoming an indirect subsidiary of TD SYNNEX Corporation (collectively, the "Merger"). On September 1, 2021, pursuant to the terms of the Merger Agreement, the Company acquired all the outstanding shares of common stock of Tiger Parent (AP) Corporation, the parent corporation of Tech Data, for consideration of $1.61 billion in cash ($1.11 billion in cash after giving effect to a $500 million equity contribution by Tiger Parent Holdings, L.P., Tiger Parent (AP) Corporation's sole stockholder and an affiliate of Apollo Global Management, Inc., to Tiger Parent (AP) Corporation prior to the effective time of the Merger) and 44 million shares of common stock of SYNNEX valued at approximately $5.61 billion. The combined company is referred to as TD SYNNEX. References to the "Company" indicate TD SYNNEX for periods after the Merger and SYNNEX for periods prior to the Merger.

The Consolidated Financial Statements include the accounts of the Company, its wholly-owned subsidiaries, majority-owned subsidiaries in which no substantive participating rights are held by minority stockholders and variable interest entities if the Company is the primary beneficiary. All intercompany accounts and transactions have been eliminated. The Company operates on a fiscal year that ends on November 30.

The accompanying interim unaudited Consolidated Financial Statements as of May 31, 2022 and for the three and six months ended May 31, 2022 and 2021 have been prepared by the Company, without audit, in accordance with the rules and regulations of the United States ("U.S.") Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States have been condensed or omitted in accordance with such rules and regulations. In the opinion of management, the accompanying unaudited Consolidated Financial Statements reflect all adjustments, consisting only of normal recurring adjustments, necessary to state fairly the financial position of the Company and its results of operations and cash flows as of and for the periods presented. These financial statements should be read in conjunction with the annual audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended November 30, 2021.

Interim results of operations are not necessarily indicative of financial results for a full year, and the Company makes no representations related thereto. Certain columns and rows may not add due to the use of rounded numbers.

8

TD SYNNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended May 31, 2022 and 2021

(Except per share amounts or as otherwise indicated, currency and share amounts in thousands)

(unaudited)

NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

For a discussion of the Company’s significant accounting policies, refer to the discussion in the Company’s Annual Report on Form 10-K for the fiscal year ended November 30, 2021. Accounting pronouncements adopted during the six months ended May 31, 2022 are discussed below.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. The Company evaluates these estimates on a regular basis and bases them on historical experience and on various assumptions that the Company believes are reasonable.

The COVID-19 pandemic has negatively impacted the global economy, disrupted global supply chains and work force participation and created volatility and disruption of financial markets. Despite improvements in the global economy since the onset of the pandemic, the emergence of the Delta and Omicron variants and other mutations bring uncertainty to continued economic recovery. As a result, the Company cannot at this time accurately predict what effects these conditions will have on its operations and financial condition, including due to the uncertainties relating to the severity and duration of the pandemic, the effect on its customers and customer demand and the length of the restrictions and closures imposed by various governments, including recent restrictions and closures within the Asia-Pacific region. Consequently, many of the estimates and assumptions required increased judgment and carry a higher degree of variability and volatility. As events continue to evolve and additional information becomes available, these estimates may change in future periods. Actual results could differ from the estimates.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to significant concentration of credit risk consist principally of cash and cash equivalents, accounts receivable, receivables from vendors and derivative instruments.

The Company’s cash and cash equivalents and derivative instruments are transacted and maintained with financial institutions with high credit standing, and their compositions and maturities are regularly monitored by management. The Company has not experienced any material credit losses on such deposits and derivative instruments.

Accounts receivable include amounts due from customers, including related party customers. Receivables from vendors, net, includes amounts due from original equipment manufacturer ("OEM") vendors. The Company performs ongoing credit evaluations of its customers’ financial condition and limits the amount of credit extended when deemed necessary, but generally requires no collateral. The Company also maintains allowances for expected credit losses. In estimating the required allowances, the Company takes into consideration the overall quality and aging of its receivable portfolio, the existence of credit insurance and specifically identified customer and vendor risks. The Company also considers risks attributed to COVID-19 in establishing the required allowances.

The following table provides revenue generated from products purchased from vendors that exceeded 10% of our consolidated revenue for the periods indicated (as a percent of consolidated revenue):

	Three Months Ended				Six Months Ended
	May 31, 2022		May 31, 2021		May 31, 2022		May 31, 2021
Apple, Inc.	10	%	N/A (1)		11	%	N/A (1)
HP Inc.	11	%	13	%	10	%	14	%
Lenovo, Inc.	10	%	N/A (1)		N/A (1)		N/A (1)

(1) Revenue generated from products purchased from this vendor was less than 10% of consolidated revenue during the period presented.

9

TD SYNNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended May 31, 2022 and 2021

(Except per share amounts or as otherwise indicated, currency and share amounts in thousands)

(unaudited)

No single customer accounted for more than 10% of the Company's total revenue during the three and six months ended May 31, 2022. One customer accounted for 25% and 22% of the Company’s total revenue during the three and six months ended May 31, 2021, respectively. As of May 31, 2022 and November 30, 2021, no single customer comprised more than 10% of the consolidated accounts receivable balance.

Accounts Receivable

The Company maintains an allowance for doubtful accounts as an estimate to cover the future expected credit losses resulting from uncertainty regarding collections from customers or OEM vendors to make payments for outstanding balances. In estimating the required allowance, the Company takes into consideration historical credit losses, current conditions and reasonable and supportable forecasts. Adjustments to historical loss information are made for differences in current conditions as well as changes in forecasted macroeconomic conditions, such as changes in unemployment rates or gross domestic product growth. Expected credit losses are estimated on a pool basis when similar risk characteristics exist using an age-based reserve model. Receivables that do not share risk characteristics are evaluated on an individual basis.

The Company has uncommitted supply-chain financing programs with global financial institutions under which trade accounts receivable of certain customers and their affiliates may be acquired, without recourse, by the financial institutions. Available capacity under these programs is dependent on the level of the Company’s trade accounts receivable with these customers and the financial institutions’ willingness to purchase such receivables. In addition, certain of these programs also require that the Company continue to service, administer and collect the sold accounts receivable. As of May 31, 2022 and November 30, 2021, accounts receivable sold to and held by the financial institutions under these programs were $947.6 million and $759.9 million, respectively. Discount fees related to the sale of trade accounts receivable under these facilities are included in “Interest expense and finance charges, net” in the Consolidated Statements of Operations. Discount fees for these programs totaled $3.9 million and $6.9 million in the three and six months ended May 31, 2022, respectively, and $0.7 million and $1.2 million in the three and six months ended May 31, 2021, respectively.

Inventories

Inventories are stated at the lower of cost and net realizable value. Cost is computed based on the weighted-average method. Inventories are comprised of finished goods and work-in-process. Finished goods include products purchased for resale, system components purchased for both resale and for use in the Company’s projects and integration-based completed systems. Work-in-process inventories are not material to the Consolidated Financial Statements.

Segments

Operating segments are based on components of the Company that engage in business activities that earn revenues and incur expenses (a) whose operating results are regularly reviewed by the Company’s chief operating decision maker to make decisions about resource allocation and performance and (b) for which discrete financial information is available.

Prior to the Separation, the Company had two reportable segments: Technology Solutions and Concentrix. After giving effect to the Separation of the Concentrix segment, the Company operated with one reportable segment: Technology Solutions. After completion of the Merger, the Company reviewed its reportable segments as there was a change in its chief executive officer, who is also the Company’s chief operating decision maker. The Company’s chief operating decision maker has a leadership structure aligned with the geographic locations of the Americas, Europe and Asia-Pacific and Japan (“APJ”) and reviews and allocates resources based on these geographic locations. As a result, as of September 1, 2021 the Company began operating in three reportable segments based on its geographic locations: the Americas, Europe and APJ.

Seasonality

The Company's operating results are affected by the seasonality of the IT products industry. The Company has historically experienced higher sales in the first and fourth fiscal quarters due to patterns in capital budgeting, government spending and purchasing cycles of its customers and end-users. These historical patterns may not be repeated in subsequent periods.

10

TD SYNNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended May 31, 2022 and 2021

(Except per share amounts or as otherwise indicated, currency and share amounts in thousands)

(unaudited)

Revenue Recognition

The Company generates revenue primarily from the sale of various IT products.

The Company recognizes revenues from the sale of IT hardware and software as control is transferred to customers, which is at the point in time when the product is shipped or delivered. The Company accounts for a contract with a customer when it has written approval, the contract is committed, the rights of the parties, including payment terms, are identified, the contract has commercial substance and consideration is probable of collection. Binding purchase orders from customers together with agreement to the Company's terms and conditions of sale by way of an executed agreement or other signed documents are considered to be the contract with a customer. Products sold by the Company are delivered via shipment from the Company’s facilities, drop-shipment directly from the vendor, or by electronic delivery of software products. In situations where arrangements include customer acceptance provisions, revenue is recognized when the Company can objectively verify the products comply with specifications underlying acceptance and the customer has control of the products. Revenue is presented net of taxes collected from customers and remitted to government authorities. The Company generally invoices a customer upon shipment, or in accordance with specific contractual provisions. Payments are due as per contract terms and do not contain a significant financing component. Service revenues represents less than 10% of the total revenue for the periods presented.

Provisions for sales returns and allowances are estimated based on historical data and are recorded concurrently with the recognition of revenue. A liability is recorded at the time of sale for estimated product returns based upon historical experience and an asset is recognized for the amount expected to be recorded in inventory upon product return. These provisions are reviewed and adjusted periodically by the Company. Revenue is reduced for early payment discounts and volume incentive rebates offered to customers, which are considered variable consideration, at the time of sale based on an evaluation of the contract terms and historical experience.

The Company recognizes revenue on a net basis on certain contracts, where the Company’s performance obligation is to arrange for the products or services to be provided by another party or the rendering of logistics services for the delivery of inventory for which the Company does not assume the risks and rewards of ownership, by recognizing the margins earned in revenue with no associated cost of revenue. Such arrangements include supplier service contracts, post-contract software support services and extended warranty contracts.

The Company considers shipping and handling activities as costs to fulfill the sale of products. Shipping revenue is included in revenue when control of the product is transferred to the customer, and the related shipping and handling costs are included in cost of revenue.

Reclassifications

Certain reclassifications have been made to prior period amounts in the Consolidated Financial Statements to conform to the current period presentation. These reclassifications did not have a material impact on previously reported amounts.

Recently Adopted Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board ("FASB") issued new guidance that simplifies the accounting for income taxes. The guidance is effective for annual reporting periods beginning after December 15, 2020, and interim periods within those reporting periods. Certain amendments should be applied prospectively, while other amendments should be applied retrospectively to all periods presented. The adoption of this new guidance did not have a material impact on the Company's Consolidated Financial Statements.

In October 2021, the FASB issued new guidance which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with Accounting Standards Codification ("ASC") 606, “Revenue from Contracts with Customers.” Generally, this new guidance will result in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree. Historically, such amounts were recognized by the acquirer at fair value in acquisition accounting. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years (the fiscal

11

TD SYNNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended May 31, 2022 and 2021

(Except per share amounts or as otherwise indicated, currency and share amounts in thousands)

(unaudited)

quarter ending February 28, 2023 for the Company), and should be applied prospectively to acquisitions occurring on or after the effective date. Early adoption is permitted. The Company adopted this standard during the fiscal quarter ended February 28, 2022 and will apply the guidance prospectively to future acquisitions.

Recently Issued Accounting Pronouncements

In March 2020, the FASB issued optional guidance for a limited time to ease the potential burden in accounting for or recognizing the effects of reference rate reform, particularly, the risk of cessation of the London Interbank Offered Rate (“LIBOR”) on financial reporting. The guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments are elective and are effective upon issuance for all entities through December 31, 2022. The Company does not currently expect any material impacts from the adoption of this new guidance.

NOTE 3—ACQUISITIONS:

Tech Data Merger

On September 1, 2021, pursuant to the terms of the Merger Agreement, the Company acquired all the outstanding shares of common stock of Tiger Parent (AP) Corporation, the parent corporation of Tech Data, for an aggregate purchase price of $7.22 billion, comprised of $1.61 billion in cash ($1.11 billion in cash after giving effect to a $500 million equity contribution by Tiger Parent Holdings, L.P., Tiger Parent (AP) Corporation’s sole stockholder and an affiliate of Apollo Global Management, Inc., to Tiger Parent (AP) Corporation prior to the effective time of the Merger) and 44 million shares of common stock of SYNNEX, valued at approximately $5.61 billion based on the closing price of the Company’s common stock on September 1, 2021. The Merger created a leading global distributor and solutions aggregator for the IT ecosystem. The Company used the net proceeds from the issuance of new Senior Notes, borrowings under its new credit agreement and cash on hand to fund the above payments. Additionally, the Company repaid the majority of Tech Data's outstanding debt after the Merger, including approximately $2.4 billion outstanding under Tech Data’s existing Asset-Based Credit Agreement and approximately $0.2 billion of outstanding Tech Data Senior Notes.

The Company has accounted for the Merger as a business combination and allocated the purchase price to the estimated fair values of Tiger Parent (AP) Corporation’s assets acquired and liabilities assumed. The Company has not yet completed its evaluation and determination of certain assets acquired and liabilities assumed, primarily (i) the final assessment and valuation of certain assets acquired and liabilities assumed, including accounts receivable, receivables from vendors, inventory, accrued expenses and other liabilities and (ii) the final assessment and valuation of certain income tax amounts. Therefore, the final fair values of the assets and liabilities may vary from the Company's preliminary estimates. During the six months ended May 31, 2022, the Company updated its estimated fair values of certain assets acquired and liabilities assumed, including an increase in deferred tax liabilities of $26 million, an increase in goodwill of $16 million and an increase in inventory of $11 million.

12

TD SYNNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended May 31, 2022 and 2021

(Except per share amounts or as otherwise indicated, currency and share amounts in thousands)

(unaudited)

The preliminary allocation of the purchase price is as follows:

Cash and cash equivalents	$	702,907
Accounts receivable, net	5,157,797
Receivables from vendors, net	727,175
Inventories	3,003,839
Other current assets	395,609
Property and equipment	347,532
Goodwill	3,560,973
Intangible assets	4,933,900
Other assets	475,424
Total assets	19,305,156
Borrowings, current	493,076
Accounts payable	6,613,145
Other accrued liabilities	1,252,507
Long-term borrowings	2,218,672
Other long-term liabilities	416,587
Deferred tax liabilities	1,086,769
Total liabilities	12,080,756
Purchase consideration	$	7,224,400

The allocation of the value of identifiable intangible assets is as follows:

	Fair value		Weighted average useful life
Customer relationships	$	3,860,200	14 years
Trade name	1,073,700		Indefinite lived
Total intangibles acquired	$	4,933,900

Goodwill is the excess of the consideration transferred over the net assets recognized and primarily represents future economic benefits arising from assets acquired that are not individually identified and separately recognized, including synergies inherent in the acquired business, of which approximately $500 million is expected to be deductible for tax purposes.

Included within the Company’s Consolidated Statement of Operations are revenues for the six months ended May 31, 2022, of approximately $19.0 billion from Tech Data. As the Company began integrating certain sales and other functions after the closing of the acquisition, these amounts represent an estimate of the Tech Data revenues for the six months ended May 31, 2022. It is not necessarily indicative of how the Tech Data operations would have performed on a stand-alone basis. As a result of certain integration activities subsequent to the date of acquisition, it is impracticable to disclose net income from Tech Data for the period subsequent to the acquisition date.

13

TD SYNNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended May 31, 2022 and 2021

(Except per share amounts or as otherwise indicated, currency and share amounts in thousands)

(unaudited)

The following table presents unaudited supplemental pro forma information as if the Merger had occurred at the beginning of fiscal 2020, after giving effect to certain adjustments related to the transaction. The pro forma results exclude any benefits that may result from potential cost savings and certain non-recurring costs. As a result, the pro forma information below does not purport to present what actual results would have been had the Merger been consummated on the date indicated and it is not necessarily indicative of the results of operations that may result in the future.

	Three Months Ended		Six Months Ended
	May 31, 2021		May 31, 2021
Revenue	$	15,427,456	$	30,673,100
Net income	$	108,380	$	244,704

Adjustments reflected in the pro forma results include the following:

•Amortization of acquired intangible assets

•Interest costs associated with the Merger

•Tax effects of adjustments based on an estimated statutory tax rate

NOTE 4—ACQUISITION, INTEGRATION AND RESTRUCTURING COSTS:

Acquisition, integration and restructuring costs are primarily comprised of costs related to the Merger and costs related to the Global Business Optimization 2 Program initiated by Tech Data prior to the Merger (the “GBO 2 Program”).

The Merger

The Company incurred acquisition, integration and restructuring costs related to the completion of the Merger, including professional services costs, personnel and other costs, long-lived assets charges and stock-based compensation expense. Professional services costs are primarily comprised of legal expenses and tax and other consulting services. Personnel and other costs are primarily comprised of costs related to retention and other bonuses, as well as severance costs. Long-lived assets charges are comprised of accelerated depreciation and amortization expense of $52.9 million recorded due to changes in asset useful lives in conjunction with the consolidation of certain IT systems. Stock-based compensation expense primarily relates to costs associated with the conversion of certain Tech Data performance-based equity awards issued prior to the Merger into restricted shares of TD SYNNEX (refer to Note 5 - Share-Based Compensation for further information) and expenses for certain restricted stock awards issued in conjunction with the Merger.

During the three and six months ended May 31, 2022 and May 31, 2021, acquisition and integration expenses related to the Merger were composed of the following:

	Three Months Ended				Six Months Ended
	May 31, 2022		May 31, 2021		May 31, 2022		May 31, 2021
Professional services costs	$	5,793	$	3,995	$	13,941	$	3,995
Personnel and other costs	4,404		1,940		15,348		1,940
Long-lived assets charges	—		—		52,871		—
Stock-based compensation	12,889		—		26,465		—
Total	$	23,086	$	5,935	$	108,625	$	5,935

GBO 2 Program

Prior to the Merger, Tech Data implemented its GBO 2 Program that includes investments to optimize and standardize processes and apply data and analytics to be more agile in a rapidly evolving environment, increasing productivity, profitability and optimizing net-working capital. TD SYNNEX plans to continue this program in conjunction with the Company’s integration activities. Acquisition, integration and restructuring expenses related to the GBO 2 Program are primarily comprised of restructuring costs and other costs. Restructuring costs are comprised of severance

14

TD SYNNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended May 31, 2022 and 2021

(Except per share amounts or as otherwise indicated, currency and share amounts in thousands)

(unaudited)

costs and other associated exit costs, including certain consulting costs. Other costs are primarily comprised of personnel costs, facilities costs and certain professional services fees not related to restructuring activities.

Acquisition, integration and restructuring costs under the GBO 2 Program for fiscal 2022 included the following:

	Three Months Ended		Six Months Ended
	May 31, 2022		May 31, 2022
Restructuring costs	$	4,738	$	10,784
Other costs	4,654		6,439
Total	$	9,392	$	17,223

Restructuring costs under the GBO 2 Program for fiscal 2022 were composed of the following:

	Three Months Ended		Six Months Ended
	May 31, 2022		May 31, 2022
Severance	$	742	$	1,101
Other exit costs	3,996		9,683
Total	$	4,738	$	10,784

Restructuring costs related to the GBO 2 Program by segment are as follows:

	Three Months Ended		Six Months Ended
	May 31, 2022		May 31, 2022
Americas	$	1,582	$	3,422
Europe	3,073		6,945
APJ	83		417
Total	$	4,738	$	10,784

Restructuring activity during the six months ended May 31, 2022 related to the GBO 2 Program is as follows:

	Severance and Benefits		Other Exit Costs		Total
Accrued balance as of November 30, 2021	$	4,918	$	1,591	$	6,509
Expenses	1,101		9,683		10,784
Cash payments	(4,176)		(10,309)		(14,485)
Foreign currency translation	(89)		(242)		(331)
Accrued balance as of May 31, 2022	$	1,754	$	723	$	2,477

15

TD SYNNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended May 31, 2022 and 2021

(Except per share amounts or as otherwise indicated, currency and share amounts in thousands)

(unaudited)

NOTE 5—SHARE-BASED COMPENSATION:

Overview of TD SYNNEX Stock Incentive Plans

The Company recognizes share-based compensation expense for all share-based awards made to employees and directors, including employee stock options, restricted stock awards ("RSA's"), restricted stock units ("RSU's"), performance-based RSU's and employee stock purchases, based on estimated fair values.

The following tables summarize the Company's share-based awards activity for TD SYNNEX stock incentive plans during the six months ended May 31, 2022.

A summary of the changes in the Company's stock options is set forth below:

	Stock options
Balances, November 30, 2021	689
Granted	9
Exercised	(40)
Balances, May 31, 2022	658

A summary of the changes in the Company's non-vested RSA's and RSU's is presented below:

	RSA's and RSU's
Nonvested at November 30, 2021	1,066
Granted	254
Vested	(165)
Canceled	(47)
Nonvested at May 31, 2022	1,108

A summary of share-based compensation expense in the Consolidated Statements of Operations for TD SYNNEX stock incentive plans is presented below:

	Three Months Ended				Six Months Ended
	May 31, 2022		May 31, 2021		May 31, 2022		May 31, 2021
Selling, general and administrative expenses	$	7,038	$	6,750	$	13,788	$	11,637
Acquisition, integration and restructuring costs (on awards issued in connection with the Merger )	1,596		—		3,399		—
Total share-based compensation expense	$	8,634	$	6,750	$	17,187	$	11,637

Tech Data Equity Awards

Prior to the Merger, certain of Tech Data’s employees were granted performance-based equity awards in Tiger Parent Holdings L.P., a partnership entity that was the parent company of Tiger Parent (AP) Corporation and Tech Data, that were unvested at the time of the closing of the Merger. Upon closing of the Merger, the unvested performance-based equity awards were converted into restricted shares of TD SYNNEX that vest over two years.

16

TD SYNNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended May 31, 2022 and 2021

(Except per share amounts or as otherwise indicated, currency and share amounts in thousands)

(unaudited)

The following table summarizes the activity related to these restricted shares during the six months ended May 31, 2022:

	Restricted shares
Nonvested at November 30, 2021	751
Vested	(5)
Canceled	(30)
Nonvested at May 31, 2022	716

The restricted shares had a fair value of $127.60 per share upon closing of the Merger which is being recorded as share-based compensation expense on a straight-line basis over the vesting period in “Acquisition, integration, and restructuring costs” in the Consolidated Statement of Operations. The Company recorded $11.3 million and $23.0 million of share-based compensation expense related to these restricted shares in “Acquisition, integration, and restructuring costs” during the three and six months ended May 31, 2022, respectively. As of May 31, 2022, there was $57.1 million of total unamortized share-based compensation expense related to these restricted shares to be recognized over a weighted-average amortization period of 1.25 years.

NOTE 6—BALANCE SHEET COMPONENTS:

Cash, cash equivalents and restricted cash:

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same amounts shown in the Consolidated Statements of Cash Flows:

	As of
	May 31, 2022		November 30, 2021
Cash and cash equivalents	$	521,514	$	993,973
Restricted cash included in other current assets	234		940
Cash, cash equivalents and restricted cash	$	521,748	$	994,913

Accounts receivable, net:

	As of
	May 31, 2022		November 30, 2021
Accounts receivable	$	7,981,356	$	8,424,868
Less: Allowance for doubtful accounts	(129,821)		(114,836)
Accounts receivable, net	$	7,851,536	$	8,310,032

Receivables from vendors, net:

	As of
	May 31, 2022		November 30, 2021
Receivables from vendors	$	1,047,621	$	1,130,091
Less: Allowance for doubtful accounts	(14,729)		(11,128)
Receivables from vendors, net	$	1,032,892	$	1,118,963

17

TD SYNNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended May 31, 2022 and 2021

(Except per share amounts or as otherwise indicated, currency and share amounts in thousands)

(unaudited)

Allowance for doubtful trade receivables:

Balance at November 30, 2021	$	114,836
Additions	24,492
Write-offs, reclassifications and foreign exchange translation	(9,507)
Balance at May 31, 2022	$	129,821

Allowance for receivables from vendors:

Balance at November 30, 2021	$	11,128
Additions	2,115
Write-offs, reclassifications and foreign exchange translation	1,486
Balance at May 31, 2022	$	14,729

Accumulated other comprehensive income (loss):

The components of accumulated other comprehensive loss (“AOCI”), net of taxes, were as follows:

	Unrealized gains (losses) on cash flow hedges, net of taxes		Foreign currency translation adjustment and other, net of taxes		Total
Balance as of November 30, 2021	$	(48,803)	$	(287,391)	$	(336,194)
Other comprehensive income (loss) before reclassification	19,630		(167,566)		(147,936)
Reclassification of losses from other comprehensive income (loss)	14,314		—		14,314
Balance as of May 31, 2022	$	(14,859)	$	(454,957)	$	(469,816)

Refer to Note 7 - Derivative Instruments for the location of gains and losses reclassified from other comprehensive income to the Consolidated Statements of Operations.

18

TD SYNNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended May 31, 2022 and 2021

(Except per share amounts or as otherwise indicated, currency and share amounts in thousands)

(unaudited)

NOTE 7—DERIVATIVE INSTRUMENTS:

In the ordinary course of business, the Company is exposed to foreign currency risk, interest rate risk, equity risk, commodity price changes and credit risk. The Company enters into transactions, and owns monetary assets and liabilities, that are denominated in currencies other than the legal entity’s functional currency. The Company may enter into forward contracts, option contracts, swaps, or other derivative instruments to offset a portion of the risk on expected future cash flows, earnings, net investments in certain international subsidiaries and certain existing assets and liabilities. However, the Company may choose not to hedge certain exposures for a variety of reasons including, but not limited to, accounting considerations and the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign currency exchange or interest rates. The Company does not use derivative instruments to cover equity risk and credit risk. The Company’s hedging program is not used for trading or speculative purposes.

All derivatives are recognized on the balance sheet at their fair value. Changes in the fair value of derivatives are recorded in the Consolidated Statements of Operations, or as a component of AOCI in the Consolidated Balance Sheets, as discussed below.

Cash Flow Hedges

The Company uses interest rate swap derivative contracts to economically convert a portion of its variable-rate debt to fixed-rate debt. The swaps have maturities at various dates through October 2023. Gains and losses on cash flow hedges are recorded in AOCI until the hedged item is recognized in earnings. Deferred gains and losses associated with cash flow hedges of interest payments are recognized in “Interest expense and finance charges, net” in the same period as the related expense is recognized. Derivative instruments designated as cash flow hedges must be de-designated as hedges when it is probable the forecasted hedged transaction will not occur in the initially identified time period or within a subsequent two-month time period. Deferred gains and losses in AOCI associated with such derivative instruments are reclassified into earnings in the period of de-designation. Any subsequent changes in fair value of such derivative instruments are recorded in earnings unless they are re-designated as hedges of other transactions.

Non-Designated Derivatives

The Company uses short-term forward contracts to offset the foreign exchange risk of assets and liabilities denominated in currencies other than the functional currency of the respective entities. These contracts, which are not designated as hedging instruments, mature or settle within twelve months. Derivatives that are not designated as hedging instruments are adjusted to fair value through earnings in the financial statement line item to which the derivative relates.

Fair Values of Derivative Instruments in the Consolidated Balance Sheets

The fair values of the Company’s derivative instruments are disclosed in Note 8 - Fair Value Measurements and summarized in the table below:

	Value as of
Balance Sheet Line Item	May 31, 2022		November 30, 2021
Derivative instruments not designated as hedging instruments:
Foreign exchange forward contracts (notional value)	$	1,835,968	$	1,217,595
Other current assets	10,106		13,764
Other accrued liabilities	26,176		2,992
Derivative instruments designated as cash flow hedges:
Interest rate swaps (notional value)	$	1,100,000	$	1,500,000
Other assets, net	106		—
Other accrued liabilities	6,111		38,670
Other long-term liabilities	—		24,151

19

TD SYNNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended May 31, 2022 and 2021

(Except per share amounts or as otherwise indicated, currency and share amounts in thousands)

(unaudited)

The Company terminated interest rate swaps with a notional value of $400 million in December 2021. Cumulative losses on the terminated interest rate swaps of $16 million will be reclassified from AOCI to “Interest expense and finance charges, net” over the period through September 2023.

Volume of Activity

The notional amounts of foreign exchange forward contracts represent the gross amounts of foreign currency, including, principally, the Australian dollar, Brazilian real, British pound, Canadian dollar, Chinese yuan, Czech koruna, Danish krone, Euro, Indian rupee, Indonesian rupiah, Japanese yen, Mexican peso, Norwegian krone, Philippine peso, Polish zloty, Singapore dollar, Swedish krona, Swiss franc and Turkish lira that will be bought or sold at maturity. The notional amounts for outstanding derivative instruments provide one measure of the transaction volume outstanding and do not represent the amount of the Company’s exposure to credit or market loss. The Company’s exposure to credit loss and market risk will vary over time as currency and interest rates change.

The Effect of Derivative Instruments on AOCI and the Consolidated Statements of Operations

The following table shows the gains and losses, before taxes, of the Company’s derivative instruments designated as cash flow hedges in Other Comprehensive Income (“OCI”) and not designated as hedging instruments in the Consolidated Statements of Operations for the periods presented:

		Three Months Ended,				Six Months Ended,
	Location of Gains (Losses) in Income	May 31, 2022		May 31, 2021		May 31, 2022		May 31, 2021
Derivative instruments designated as cash flow hedges:
Gains (losses) recognized in OCI on interest rate swaps		$	14,232	$	(2,400)	$	26,051	$	655
Losses on interest rate swaps reclassified from AOCI into income	Interest expense and finance charges, net	$	(9,038)	$	(10,657)	$	(18,998)	$	(20,983)
Derivative instruments not designated as hedging instruments:
Gains recognized from foreign exchange forward contracts, net(1)	Cost of revenue	$	14,013	$	—	$	4,118	$	—
Losses recognized from foreign exchange forward contracts, net(1)	Other income (expense), net	(949)		(8,431)		$	(1,159)	$	(9,128)
Losses recognized from interest rate swaps, net	Interest expense and finance charges, net	—		—		—		(128)
Total		$	13,064	$	(8,431)	$	2,959	$	(9,256)

____________________________

(1) The gains and losses largely offset the currency gains and losses that resulted from changes in the assets and liabilities denominated in nonfunctional currencies.

There were no material gain or loss amounts excluded from the assessment of effectiveness. Existing net losses in AOCI that are expected to be reclassified into earnings in the normal course of business within the next twelve months are $15 million.

Credit exposure for derivative financial instruments is limited to the amounts, if any, by which the counterparties’ obligations under the contracts exceed the Company’s obligations to the counterparties. The Company manages the

20

TD SYNNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended May 31, 2022 and 2021

(Except per share amounts or as otherwise indicated, currency and share amounts in thousands)

(unaudited)

potential risk of credit losses through careful evaluation of counterparty credit standing and selection of counterparties from a limited group of financial institutions.

NOTE 8—FAIR VALUE MEASUREMENTS:

The Company’s fair value measurements are classified and disclosed in one of the following three categories:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

The following table summarizes the valuation of the Company’s investments and financial instruments that are measured at fair value on a recurring basis:

	As of May 31, 2022								As of November 30, 2021
			Fair value measurement category								Fair value measurement category
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets:
Forward foreign currency exchange contracts	$	10,106	$	—	$	10,106	$	—	$	13,764	$	—	$	13,764	$	—
Interest rate swaps	106		—		106		—		—		—		—		—
Liabilities:
Forward foreign currency exchange contracts	$	26,176	$	—	$	26,176	$	—	$	2,992	$	—	$	2,992	$	—
Interest rate swaps	6,111		—		6,111		—		62,821		—		62,821		—

The fair values of forward exchange contracts are measured based on the foreign currency spot and forward rates quoted by the banks or foreign currency dealers. Fair values of interest rate swaps are measured using standard valuation models using inputs that are readily available in public markets, or can be derived from observable market transactions, including LIBOR spot and forward rates. The effect of nonperformance risk on the fair value of derivative instruments was not material as of May 31, 2022 and November 30, 2021.

The carrying values of accounts receivable, accounts payable and short-term debt approximate fair value due to their short maturities and interest rates which are variable in nature. The carrying value of the Company’s term loans approximate their fair value since they bear interest rates that are similar to existing market rates. The estimated fair value of the Senior Notes was approximately $2.22 billion and $2.45 billion at May 31, 2022 and November 30, 2021, respectively.

During the six months ended May 31, 2022, there were no transfers between the fair value measurement category levels.

21

TD SYNNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended May 31, 2022 and 2021

(Except per share amounts or as otherwise indicated, currency and share amounts in thousands)

(unaudited)

NOTE 9—BORROWINGS:

Borrowings consist of the following:

	As of
	May 31, 2022		November 30, 2021
Committed and uncommitted revolving credit facilities and borrowings	$	133,575	$	106,256
Current portion of TD SYNNEX term loan