Segment and Geographic Information

3 Months Ended

Mar. 29, 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 reportable segment and the global ECS reportable 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.

The company’s global components reportable segment is 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 reportable 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 VARs and MSPs meet the needs of their end-users.

The CODM evaluates the performance of both reportable segments based on operating income. Sales, net gross profit, and operating expenses are also monitored closely. This information is used to monitor segment profitability, allocate resources, and make budgeting and forecasting decisions about the reportable 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 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
	March 29,		March 30,
(thousands)	2025		2024
Sales:
Components:
Americas	$	1,568,570	$	1,596,692
EMEA		1,340,001		1,656,507
Asia/Pacific		1,869,151		1,938,218
Global components	$	4,777,722	$	5,191,417
ECS:
Americas	$	909,903	$	907,748
EMEA		1,126,392		825,095
Global ECS	$	2,036,295	$	1,732,843
Consolidated	$	6,814,017	$	6,924,260

Sales by country are as follows:

	Quarter Ended
	March 29,		March 30,
(thousands)	2025		2024
Sales:
China and Hong Kong	$	925,892	$	963,577
Germany		717,332		868,427
Other		2,859,350		2,779,436
Total foreign	$	4,502,574	$	4,611,440
United States		2,311,443		2,312,820
Total	$	6,814,017	$	6,924,260

Results of operations by reportable segment are as follows:

	Quarter Ended
	March 29, 2025
(thousands)	Global Components			Global ECS			Corporate		Consolidated
Sales	$	4,777,722		$	2,036,295		$	-	$	6,814,017
Cost of sales		4,222,777			1,817,248			-		6,040,025
Gross profit		554,945			219,047			-		773,992
Gross profit margin		11.6	%		10.8	%		-		11.4	%
Operating expenses (a)		383,560			141,733			90,146		615,439
Operating income (loss) (b) (c)	$	171,385		$	77,314		$	(90,146)	$	158,553
Operating income margin		3.6	%		3.8	%		-		2.3	%
	Quarter Ended
	March 30, 2024
(thousands)	Global Components			Global ECS			Corporate		Consolidated
Sales	$	5,191,417		$	1,732,843		$	-	$	6,924,260
Cost of sales		4,545,703			1,520,731			-		6,066,434
Gross profit		645,714			212,112			-		857,826
Gross profit margin		12.4	%		12.2	%		-		12.4	%
Operating expenses (a)		420,152			140,653			111,104		671,909
Operating income (loss) (b) (c)	$	225,562		$	71,459		$	(111,104)	$	185,917
Operating income margin		4.3	%		4.1	%		-		2.7	%

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

(b) Global components operating income includes recoveries of $2.5 million and charges of $10.5 million in inventory write-downs related to the wind down of businesses for the first quarter of 2025 and 2024, respectively.

(c) Corporate operating loss includes restructuring, integration, and other charges of $17.3 million and $46.9 million for the first quarter of 2025 and 2024, respectively. Restructuring, integration, and other charges of $3.7 million and $42.8 million related to the termination of personnel as a part of operating expense reduction initiatives for the first quarter of 2025 and 2024, respectively. Refer to Note I.

Total assets, by reportable segment, are as follows:

	March 29,		December 31,
(thousands)	2025		2024
Total assets:
Global components	$	15,239,486	$	14,765,931
Global ECS		5,620,959		6,518,723
Corporate		540,397		473,053
Consolidated	$	21,400,842	$	21,757,707

Long-lived assets by country are as follows:

	March 29,		December 31,
(thousands)	2025		2024
Long-lived assets:
France	$	90,327	$	86,268
Netherlands		79,273		78,120
Other		229,524		223,903
Total foreign	$	399,124	$	388,291
United States		325,028		332,098
Total	$	724,152	$	720,389