Segment and Geographic Information

9 Months Ended

Sep. 30, 2023

Segment and Geographic Information

Segment and Geographic Information

Note L – 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 has one of the world’s broadest portfolios of product offerings available from leading electronic components and enterprise computing solutions suppliers, coupled with a range of services, solutions and tools that enables its suppliers to distribute their technologies and help its industrial and commercial customers to source, build upon, and leverage these technologies to grow their businesses, reduce their time to market, and enhance their overall competitiveness. The company is a trusted partner in a complex value chain and is uniquely positioned through its electronics components and IT content portfolios to increase value for stakeholders.

The company has two business segments, the global components business segment and the global enterprise computing solutions (“ECS”) business segment. The company’s global components business segment, enabled by a comprehensive range of value-added capabilities and services, markets and distributes electronic components to original equipment manufacturers (“OEMs”) and contract manufacturers (“CMs”). The company’s global ECS business segment is a leading value-added provider of comprehensive computing solutions and services. The global ECS portfolio of computing solutions includes datacenter, cloud, security, and analytics solutions. Global ECS brings broad market access, extensive supplier relationships, scale, and resources to help its value-added resellers (“VARs”) and managed service providers (“MSPs”) meet the needs of their end-users.

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 operating segments and are included in the corporate line item.

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

	Quarter Ended				Nine Months Ended
	September 30,		October 1,		September 30,		October 1,
(thousands)	2023		2022		2023		2022
Sales:
Components:
Americas	$	1,869,934	$	2,445,647	$	6,169,949	$	7,265,552
EMEA		1,987,423		1,935,827		6,387,047		5,671,234
Asia/Pacific		2,387,835		2,918,873		7,226,871		9,024,188
Global components	$	6,245,192	$	7,300,347	$	19,783,867	$	21,960,974
ECS:
Americas	$	1,015,924	$	1,234,158	$	3,014,544	$	3,442,803
EMEA		745,903		731,927		2,459,552		2,397,622
Global ECS	$	1,761,827	$	1,966,085	$	5,474,096	$	5,840,425
Consolidated	$	8,007,019	$	9,266,432	$	25,257,963	$	27,801,399

Operating income (loss), by segment, are as follows:

	Quarter Ended				Nine Months Ended
	September 30,		October 1,		September 30,		October 1,
(thousands)	2023		2022		2023		2022
Operating income (loss):
Global components (a)	$	379,053	$	494,587	$	1,177,906	$	1,518,423
Global ECS (b)		54,624		83,976		221,951		253,744
Corporate (c)		(93,594)		(75,869)		(245,372)		(226,269)
Consolidated	$	340,083	$	502,694	$	1,154,485	$	1,545,898

(a) Global components operating income includes $62.2 million in settlement charges recorded as a reduction to operating expense for the third quarter and first nine months of 2023. Refer to Note K for additional information. Charges to increase the allowance for credit losses increased $16.8 million and $11.0 million for the third quarter and first nine months of 2023, respectively, relative to the year-earlier periods.

(b) Global ECS operating income includes charges to increase the allowance for credit losses, which increased by $20.0 million and $26.8 million for the third quarter and first nine months of 2023, respectively, relative to the year-earlier periods.

(c) Corporate operating loss includes restructuring, integration, and other charges of $31.4 million and $44.3 million for the third quarter and first nine months of 2023, respectively, and $3.6 million and $11.0 million for the third quarter and first nine months of 2022, respectively.