Segment and Geographic Information

6 Months Ended

Jul. 04, 2026

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, technology and other shared 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.

Global Components, enabled by a comprehensive range of value-added capabilities and services, markets and distributes electronic components to OEMs and EMS providers. Global ECS is a leading provider of comprehensive computing solutions and value-added services. Global ECS 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 comparisons of 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				Six Months Ended
	July 4,		June 28,		July 4,		June 28,
(thousands)	2026		2025		2026		2025
Sales:
Components:
Americas	$	2,454,521	$	1,707,522	$	4,766,668	$	3,276,092
EMEA		1,938,784		1,426,944		3,703,963		2,766,945
Asia/Pacific		2,972,320		2,150,432		5,535,329		4,019,583
Global Components	$	7,365,625	$	5,284,898	$	14,005,960	$	10,062,620
ECS:
Americas	$	1,135,513	$	1,052,785	$	2,320,563	$	1,962,688
EMEA		1,491,099		1,242,264		3,139,262		2,368,656
Global ECS	$	2,626,612	$	2,295,049	$	5,459,825	$	4,331,344
Total	$	9,992,237	$	7,579,947	$	19,465,785	$	14,393,964

Sales by country are as follows:

	Quarter Ended				Six Months Ended
	July 4,		June 28,		July 4,		June 28,
(thousands)	2026		2025		2026		2025
Sales:
China and Hong Kong	$	1,353,662	$	1,090,699	$	2,525,448	$	2,016,591
Germany		1,009,491		793,022		2,029,453		1,510,354
Other		4,175,489		3,079,871		8,157,993		5,939,222
Total foreign	$	6,538,642	$	4,963,592	$	12,712,894	$	9,466,167
United States		3,453,595		2,616,355		6,752,891		4,927,797
Total	$	9,992,237	$	7,579,947	$	19,465,785	$	14,393,964

Results of operations by segment are as follows:

	Quarter Ended
	July 4, 2026
(thousands)		Global Components			Global ECS			Total
Sales	$	7,365,625		$	2,626,612		$	9,992,237
Cost of sales		6,509,122			2,357,906			8,867,028
Gross profit (a)		856,503			268,706			1,125,209
Gross profit margin		11.6	%		10.2	%		11.3	%
Segment operating expenses (b)		460,228			183,331			643,559
Segment operating income (a) (c)	$	396,275		$	85,375		$	481,650
Segment operating income margin		5.4	%		3.3	%		4.8	%
Reconciliation of segment operating income
Corporate operating expenses (d)								(104,317)
Consolidated operating income							$	377,333
Equity in earnings of affiliated companies								2,065
Gain on investments, net								12,044
Post-retirement expense								(999)
Interest and other financing expense, net								(37,297)
Consolidated income before taxes							$	353,146
	Quarter Ended
	June 28, 2025
(thousands)	Global Components			Global ECS			Total
Sales	$	5,284,898		$	2,295,049		$	7,579,947
Cost of sales		4,693,444			2,037,846			6,731,290
Gross profit		591,454			257,203			848,657
Gross profit margin		11.2	%		11.2	%		11.2	%
Segment operating expenses (b)		404,646			160,234			564,880
Segment operating income (c)	$	186,808		$	96,969		$	283,777
Segment operating income margin		3.5	%		4.2	%		3.7	%
Reconciliation of segment operating income
Corporate operating expenses (d)								(93,191)
Consolidated operating income							$	190,586
Equity in losses of affiliated companies								(659)
Gain on investments, net								103,976
Post-retirement expense								(664)
Interest and other financing expense, net								(60,283)
Consolidated income before taxes							$	232,956

	Six Months Ended
	July 4, 2026
(thousands)	Global Components			Global ECS			Total
Sales	$	14,005,960		$	5,459,825		$	19,465,785
Cost of sales		12,342,709			4,907,407			17,250,116
Gross profit (a)		1,663,251			552,418			2,215,669
Gross profit margin		11.9	%		10.1	%		11.4	%
Segment operating expenses (b)		903,457			363,305			1,266,762
Segment operating income (a) (c)	$	759,794		$	189,113		$	948,907
Segment operating income margin		5.4	%		3.5	%		4.9	%
Reconciliation of segment operating income
Corporate operating expenses (d)								(209,972)
Consolidated operating income							$	738,935
Equity in earnings of affiliated companies								2,961
Gain on investments, net								6,252
Post-retirement expense								(1,961)
Interest and other financing expense, net								(85,781)
Consolidated income before taxes							$	660,406
	Six Months Ended
	June 28, 2025
(thousands)	Global Components			Global ECS			Total
Sales	$	10,062,620		$	4,331,344		$	14,393,964
Cost of sales		8,916,221			3,855,094			12,771,315
Gross profit		1,146,399			476,250			1,622,649
Gross profit margin		11.4	%		11.0	%		11.3	%
Segment operating expenses (b)		788,206			301,967			1,090,173
Segment operating income (c)	$	358,193		$	174,283		$	532,476
Segment operating income margin		3.6	%		4.0	%		3.7	%
Reconciliation of segment operating income
Corporate operating expenses (d)								(183,337)
Consolidated operating income							$	349,139
Equity in earnings of affiliated companies								661
Gain on investments, net								104,116
Post-retirement expense								(1,286)
Interest and other financing expense, net								(116,465)
Consolidated income before taxes							$	336,165

(a) Global ECS gross profit includes $26.6 million and $48.3 million in losses related to the underperformance of certain non-cancellable multi-year purchase obligations during the second quarter and first six months of 2026, respectively.

(b) Segment operating expenses primarily include employee-related expenses and depreciation and amortization.

(c) Global Components operating income includes $3.0 million and $5.2 million in inventory recoveries related to the wind down of a business for the second quarter and first six months of 2026, respectively, and $2.2 million and $4.6 million in inventory recoveries related to the wind down of a business for the second quarter and first six months of 2025, respectively.

(d) Corporate unallocated operating expenses includes restructuring, integration, and other charges of $24.1 million and $60.8 million for the second quarter and first six months of 2026, respectively, and $21.9 million and $39.2 million for the second quarter and first six months of 2025, respectively. Refer to Note I – “Restructuring, Integration, and Other”.

Total assets, by segment, are as follows:

	July 4,		December 31,
(thousands)	2026		2025
Total assets:
Global Components	$	31,725,350	$	21,222,941
Global ECS		6,173,437		7,355,089
Total segment assets	$	37,898,787	$	28,578,030
Other assets (a)		477,894		500,108
Consolidated assets	$	38,376,681	$	29,078,138

(a) Other assets include Corporate unallocated assets.

Long-lived assets by country are as follows:

	July 4,		December 31,
(thousands)	2026		2025
Long-lived assets:
France	$	102,421	$	100,493
Netherlands		72,398		79,339
Other		222,017		233,740
Total foreign	$	396,836	$	413,572
United States		296,270		309,901
Total	$	693,106	$	723,473