Segment and Geographic Information

12 Months Ended

Dec. 31, 2025

Segment and Geographic Information

Segment and Geographic Information

16. 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 global components and global ECS 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 the components of operating income including 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:

(thousands)	2025		2024		2023
Sales:
Components:
Americas	$	6,944,480	$	6,411,701	$	7,954,713
EMEA		5,670,850		5,648,107		8,074,894
Asia/Pacific		8,885,959		7,923,459		9,390,292
Global components	$	21,501,289	$	19,983,267	$	25,419,899
ECS:
Americas	$	4,230,746	$	4,067,160	$	4,160,298
EMEA		5,120,900		3,872,897		3,526,923
Global ECS	$	9,351,646	$	7,940,057	$	7,687,221
Total	$	30,852,935	$	27,923,324	$	33,107,120

Sales by country are as follows:

(thousands)	2025		2024		2023
Sales:
China and Hong Kong	$	4,419,749	$	4,033,744	$	4,858,871
Germany		3,155,470		3,007,517		4,341,837
Other		12,725,314		11,114,613		12,737,852
Total foreign	$	20,300,533	$	18,155,874	$	21,938,560
United States		10,552,402		9,767,450		11,168,560
Total	$	30,852,935	$	27,923,324	$	33,107,120

The company operates in more than 85 countries worldwide. Sales to unaffiliated customers are based on the company location that maintains the customer relationship and transacts the external sale.

Results of operations by segment are as follows for the years ended December 31:

	2025
(thousands)	Global Components			Global ECS			Total
Sales	$	21,501,289		$	9,351,646		$	30,852,935
Cost of sales		19,098,636			8,287,580			27,386,216
Gross profit		2,402,653			1,064,066			3,466,719
Gross profit margin		11.2	%		11.4	%		11.2	%
Segment operating expenses (a)		1,627,947			638,155			2,266,102
Segment operating income (loss) (b) (c)	$	774,706		$	425,911		$	1,200,617
Segment operating income margin		3.6	%		4.6	%		3.9	%
Reconciliation of segment operating income
Corporate operating expenses (e)								(378,394)
Consolidated operating income							$	822,223
Equity in earnings of affiliated companies								3,198
Gain (loss) on investments, net								109,888
Post-retirement expense, net								(2,277)
Interest and other financing expense, net								(215,104)
Consolidated income before taxes							$	717,928

	2024
(thousands)	Global Components			Global ECS			Total
Sales	$	19,983,267		$	7,940,057		$	27,923,324
Cost of sales		17,650,909			6,980,007			24,630,916
Gross profit		2,332,358			960,050			3,292,408
Gross profit margin		11.7	%		12.1	%		11.8	%
Segment operating expenses (a)		1,591,085			549,975			2,141,060
Segment operating income (loss) (c) (d)	$	741,273		$	410,075		$	1,151,348
Segment operating income margin		3.7	%		5.2	%		4.1	%
Reconciliation of segment operating income
Corporate operating expenses (e)								(382,791)
Consolidated operating income							$	768,557
Equity in earnings of affiliated companies								1,368
Gain (loss) on investments, net								(4,830)
Loss on extinguishment of debt								(1,657)
Post-retirement expense, net								(4,285)
Interest and other financing expense, net								(269,834)
Consolidated income before taxes							$	489,319
	2023
(thousands)	Global Components			Global ECS			Total
Sales	$	25,419,899		$	7,687,221		$	33,107,120
Cost of sales		22,220,779			6,737,323			28,958,102
Gross profit		3,199,120			949,898			4,149,018
Gross profit margin		12.6	%		12.4	%		12.5	%
Segment operating expenses (a)		1,739,954			582,894			2,322,848
Segment operating income (loss) (d)	$	1,459,166		$	367,004		$	1,826,170
Segment operating income margin		5.7	%		4.8	%		5.5	%
Reconciliation of segment operating income
Corporate operating expenses (e)								(355,006)
Consolidated operating income							$	1,471,164
Equity in earnings of affiliated companies								6,407
Gain (loss) on investments, net								19,284
Post-retirement expense, net								(3,777)
Interest and other financing expense, net								(328,724)
Consolidated income before taxes							$	1,164,354

(a) Segment operating expenses include employee-related expenses, depreciation and amortization, facility expense, allowance for credit losses, and other segment expenses.

(b) In 2025, Global ECS gross profit margin decreased compared to the year-earlier period primarily due to $18.3 million in net losses related to underperformance of certain non-cancellable multi-year purchase obligations.

(c) Global components operating income includes (recoveries) charges of $(10.3) million and $60.6 million in inventory write-downs related to the wind down of businesses in 2025 and 2024, respectively. Global components operating income includes $62.2 million in settlement benefits recorded as a reduction to operating expense for 2023. Refer to Note 15 - “Contingencies”.

(d) In 2023, global ECS operating income includes charges of $25.4 million to increase the allowance for credit losses related to one customer. During 2024, global ECS operating income includes a reversal of charges of $20.0 million for aged receivables that were collected, related to the same customer.

(e) Corporate unallocated operating expenses for the years 2025, 2024, and 2023 includes restructuring, integration, and other charges of $116.1 million, $142.9 million, and $83.9 million, respectively. Refer to Note 9 - “Restructuring, Integration, and Other”.

Total assets, by segment, at December 31 are as follows:

(thousands)	2025		2024
Total assets:
Global components	$	21,222,941	$	14,765,931
Global ECS		7,355,089		6,518,723
Total segment assets	$	28,578,030	$	21,284,654
Other assets (a)		500,108		473,053
Consolidated assets	$	29,078,138	$	21,757,707

(a) Other assets include Corporate unallocated assets.

Long-lived assets by country are as follows:

(thousands)	2025		2024
Long-lived assets:
France	$	100,493	$	86,268
Netherlands		79,339		78,120
Other		233,740		223,903
Total foreign	$	413,572	$	388,291
United States		309,901		332,098
Total	$	723,473	$	720,389