Segment and Geographic Information

9 Months Ended

Sep. 28, 2024

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 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 reportable segments, the global components business and the global ECS business. The company’s global components business, enabled by a comprehensive range of value-added capabilities and services, markets, and distributes electronic components to OEMs and EMS providers. The company’s global ECS business 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 VARs and 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 reportable 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 reportable segments and are included in the corporate line item.

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

	Quarter Ended				Nine Months Ended
	September 28,		September 30,		September 28,		September 30,
(thousands)	2024		2023		2024		2023
Sales:
Components:
Americas	$	1,638,459	$	1,869,934	$	4,807,991	$	6,169,949
EMEA		1,289,786		1,987,423		4,385,787		6,387,047
Asia/Pacific		2,017,814		2,387,835		5,975,729		7,226,871
Global components	$	4,946,059	$	6,245,192	$	15,169,507	$	19,783,867
ECS:
Americas	$	1,033,115	$	1,015,924	$	2,904,933	$	3,014,544
EMEA		844,145		745,903		2,566,007		2,459,552
Global ECS	$	1,877,260	$	1,761,827	$	5,470,940	$	5,474,096
Consolidated	$	6,823,319	$	8,007,019	$	20,640,447	$	25,257,963

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

	Quarter Ended				Nine Months Ended
	September 28,		September 30,		September 28,		September 30,
(thousands)	2024		2023		2024		2023
Operating income (loss):
Global components (a)	$	188,600	$	379,053	$	624,363	$	1,177,906
Global ECS (b)		75,614		54,624		249,654		221,951
Corporate (c)		(88,952)		(93,594)		(300,563)		(245,372)
Consolidated	$	175,262	$	340,083	$	573,454	$	1,154,485

(a) Global components operating income includes 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. 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 L for additional information.

(b) For the third quarter and first nine months of 2023, global ECS operating income includes charges of $21.9 million and $25.4 million, respectively, to increase the allowance for credit losses related to one customer. 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.

(c) Corporate operating loss includes restructuring, integration, and other charges of $34.5 million and $121.9 million for the third quarter and first nine months of 2024, respectively, and $31.4 million and $44.3 million for the third quarter and first nine months of 2023, respectively. Refer to Note I.