Segment and Geographic Information

9 Months Ended

Sep. 27, 2025

Segment and Geographic Information

Segment and Geographic Information

Note M – Segment and Geographic Information

The company is a global provider of products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions. The company organizes its operations by geographic region and global business lines. The company’s operating segments reflect the way the chief executive officer (CODM as defined in ASC 280, Segment Reporting) reviews financial information, makes operating decisions and assesses business performance. In identifying operating segments, the company also considers its annual budgeting and forecasting process, management reporting structure, the basis on which management compensation is determined, information presented to the Board of Directors, and similarities such as the nature of products, the level of shared products, technology and other resources, and customer base. The company concluded that identifying operating segments by major geographic region within each of the company’s major businesses was consistent with the objectives of ASC 280 and it has aggregated geographic operating segments within the global components segment and the global ECS segment based on similar characteristics including long-term financial performance, the nature of services provided, internal process for delivering those services, and types of customers.

In the third quarter of 2025, in conjunction with Sean Kerins’s separation from the company, William (“Bill”) F. Austen was appointed as the company’s Interim President and Chief Executive Officer, and identified as the CODM responsible for reviewing financial information, making operational decisions, and evaluating business performance in a manner consistent with the previous CODM. The transition in CODM did not lead to any changes in the reportable or operating segments.

The global components segment is enabled by a comprehensive range of value-added capabilities and services, markets, and distributes electronic components to OEMs and EMS providers. The global ECS segment is a leading provider of comprehensive computing solutions and value-added services. The global ECS segment brings broad market access, extensive supplier relationships, scale, and value-added solutions to help its VARs and MSPs meet the needs of their end-users through a portfolio that includes datacenter, cloud, security, and analytics solutions.

The CODM evaluates the performance of both segments based on operating income, as well as monitors sales, gross profit, and operating expenses. This information is used to monitor segment profitability, allocate resources, and make budgeting and forecasting decisions about the segments. The CODM also uses these measures to monitor trends in year over year performance comparisons, sequential quarter performance comparisons, and to compare actual results to forecasts. More disaggregated information about operating expense is generally only reviewed by the CODM on a consolidated basis.

As a result of the company’s philosophy of maximizing operating efficiencies through the centralization of certain functions, operating income for the segments excludes unallocated corporate overhead costs, depreciation on corporate fixed assets, and restructuring, integration, and other costs, as they are not attributable to the individual segments and are included in the corporate line item.

Sales, by segment by geographic area, are as follows:

	Quarter Ended				Nine Months Ended
	September 27,		September 28,		September 27,		September 28,
(thousands)	2025		2024		2025		2024
Sales:
Components:
Americas	$	1,708,840	$	1,638,459	$	4,984,932	$	4,807,991
EMEA		1,443,607		1,289,786		4,210,552		4,385,787
Asia/Pacific		2,403,945		2,017,814		6,423,528		5,975,729
Global components	$	5,556,392	$	4,946,059	$	15,619,012	$	15,169,507
ECS:
Americas	$	1,021,950	$	1,033,115	$	2,984,638	$	2,904,933
EMEA		1,134,199		844,145		3,502,855		2,566,007
Global ECS	$	2,156,149	$	1,877,260	$	6,487,493	$	5,470,940
Total	$	7,712,541	$	6,823,319	$	22,106,505	$	20,640,447

Sales by country are as follows:

	Quarter Ended				Nine Months Ended
	September 27,		September 28,		September 27,		September 28,
(thousands)	2025		2024		2025		2024
Sales:
China and Hong Kong	$	1,210,685	$	1,039,648	$	3,227,276	$	3,033,834
Germany		821,256		672,280		2,331,610		2,306,795
Other		3,075,995		2,610,859		9,015,217		8,115,710
Total foreign	$	5,107,936	$	4,322,787	$	14,574,103	$	13,456,339
United States		2,604,605		2,500,532		7,532,402		7,184,108
Total	$	7,712,541	$	6,823,319	$	22,106,505	$	20,640,447

Results of operations by segment are as follows:

	Quarter Ended
	September 27, 2025
(thousands)	Global Components			Global ECS			Corporate		Consolidated
Sales	$	5,556,392		$	2,156,149		$	-	$	7,712,541
Cost of sales		4,947,291			1,929,936			-		6,877,227
Gross profit		609,101			226,213			-		835,314
Gross profit margin (a)		11.0	%		10.5	%		-		10.8	%
Operating expenses (b)		411,746			162,469			82,092		656,307
Operating income (loss) (c) (e)	$	197,355		$	63,744		$	(82,092)	$	179,007
Operating income margin		3.6	%		3.0	%		-		2.3	%
	Quarter Ended
	September 28, 2024
(thousands)	Global Components			Global ECS			Corporate		Consolidated
Sales	$	4,946,059		$	1,877,260		$	-	$	6,823,319
Cost of sales		4,381,599			1,656,892			-		6,038,491
Gross profit		564,460			220,368			-		784,828
Gross profit margin		11.4	%		11.7	%		-		11.5	%
Operating expenses (b)		375,860			144,754			88,952		609,566
Operating income (loss) (c) (d) (e)	$	188,600		$	75,614		$	(88,952)	$	175,262
Operating income margin		3.8	%		4.0	%		-		2.6	%
	Nine Months Ended
	September 27, 2025
(thousands)	Global Components			Global ECS			Corporate		Consolidated
Sales	$	15,619,012		$	6,487,493		$	-	$	22,106,505
Cost of sales		13,863,512			5,785,030			-		19,648,542
Gross profit		1,755,500			702,463			-		2,457,963
Gross profit margin (a)		11.2	%		10.8	%		-		11.1	%
Operating expenses (b)		1,199,952			464,436			265,429		1,929,817
Operating income (loss) (c) (e)	$	555,548		$	238,027		$	(265,429)	$	528,146
Operating income margin		3.6	%		3.7	%		-		2.4	%
	Nine Months Ended
	September 28, 2024
(thousands)	Global Components			Global ECS			Corporate		Consolidated
Sales	$	15,169,507		$	5,470,940		$	-	$	20,640,447
Cost of sales		13,334,473			4,816,876			-		18,151,349
Gross profit		1,835,034			654,064			-		2,489,098
Gross profit margin		12.1	%		12.0	%		-		12.1	%
Operating expenses (b)		1,210,671			404,410			300,563		1,915,644
Operating income (loss) (c) (d) (e)	$	624,363		$	249,654		$	(300,563)	$	573,454
Operating income margin		4.1	%		4.6	%		-		2.8	%

(a) Global ECS gross profit margin decreased during the third quarter and first nine months of 2025 compared with the year-earlier periods primarily due to $21.4 million and $25.2 million, respectively, in losses related to underperformance of certain non-cancellable multi-year purchase obligations.

(b) Segment operating expenses primarily include employee-related expenses, depreciation and amortization, and allowance for credit losses.

(c) Global components operating income includes recoveries of $2.0 million and $6.6 million in inventory write-downs related to the wind down of a business for the third quarter and first nine months of 2025, respectively, and a reversal of $1.9 million and charges of $10.2 million in inventory write-downs related to the wind down of a business for the third quarter and first nine months of 2024, respectively.

(d) For the first nine months of 2024, global ECS operating income includes a reversal of $20.0 million for aged receivables that were collected, related to the same customer, which was taken during the second quarter of 2024.

(e) Corporate operating loss includes restructuring, integration, and other charges of $35.6 million and $74.9 million for the third quarter and first nine months of 2025, respectively, and $34.5 million and $121.9 million for the third quarter and first nine months of 2024, respectively. Refer to Note I.

Total assets, by segment, are as follows:

	September 27,		December 31,
(thousands)	2025		2024
Total assets:
Global components	$	18,378,473	$	14,765,931
Global ECS		5,584,723		6,518,723
Corporate		563,292		473,053
Total	$	24,526,488	$	21,757,707

Long-lived assets by country are as follows:

	September 27,		December 31,
(thousands)	2025		2024
Long-lived assets:
France	$	101,055	$	86,268
Netherlands		81,245		78,120
Other		228,704		223,903
Total foreign	$	411,004	$	388,291
United States		315,769		332,098
Total	$	726,773	$	720,389