Segment and Geographic Information

6 Months Ended

Jun. 28, 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 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 global ECS reportable segment is a leading provider of comprehensive computing solutions and value-added services. The global ECS reportable 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 of computing solutions including datacenter, cloud, security, and analytics solutions.

The CODM evaluates the performance of both reportable segments based on operating income, as well as monitoring sales, gross profit, and operating expenses. 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				Six Months Ended
	June 28,		June 29,		June 28,		June 29,
(thousands)	2025		2024		2025		2024
Sales:
Components:
Americas	$	1,707,522	$	1,572,840	$	3,276,092	$	3,169,532
EMEA		1,426,944		1,439,494		2,766,945		3,096,001
Asia/Pacific		2,150,432		2,019,697		4,019,583		3,957,915
Global components	$	5,284,898	$	5,032,031	$	10,062,620	$	10,223,448
ECS:
Americas	$	1,052,785	$	964,070	$	1,962,688	$	1,871,818
EMEA		1,242,264		896,767		2,368,656		1,721,862
Global ECS	$	2,295,049	$	1,860,837	$	4,331,344	$	3,593,680
Consolidated	$	7,579,947	$	6,892,868	$	14,393,964	$	13,817,128

Sales by country are as follows:

	Quarter Ended				Six Months Ended
	June 28,		June 29,		June 28,		June 29,
(thousands)	2025		2024		2025		2024
Sales:
China and Hong Kong	$	1,090,699	$	1,030,610	$	2,016,591	$	1,994,186
Germany		793,022		766,087		1,510,354		1,634,515
Other		3,079,871		2,725,415		5,939,222		5,504,852
Total foreign	$	4,963,592	$	4,522,112	$	9,466,167	$	9,133,553
United States		2,616,355		2,370,756		4,927,797		4,683,575
Total	$	7,579,947	$	6,892,868	$	14,393,964	$	13,817,128

Results of operations by reportable segment are as follows:

	Quarter Ended
	June 28, 2025
(thousands)	Global Components			Global ECS			Corporate		Consolidated
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	%
Operating expenses (a)		404,646			160,234			93,191		658,071
Operating income (loss) (b) (d)	$	186,808		$	96,969		$	(93,191)	$	190,586
Operating income margin		3.5	%		4.2	%		-		2.5	%
	Quarter Ended
	June 29, 2024
(thousands)	Global Components			Global ECS			Corporate		Consolidated
Sales	$	5,032,031		$	1,860,837		$	-	$	6,892,868
Cost of sales		4,407,171			1,639,253			-		6,046,424
Gross profit		624,860			221,584			-		846,444
Gross profit margin		12.4	%		11.9	%		-		12.3	%
Operating expenses (a)		414,659			119,003			100,507		634,169
Operating income (loss) (b) (c) (d)	$	210,201		$	102,581		$	(100,507)	$	212,275
Operating income margin		4.2	%		5.5	%		-		3.1	%
	Six Months Ended
	June 28, 2025
(thousands)	Global Components			Global ECS			Corporate		Consolidated
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	%
Operating expenses (a)		788,206			301,967			183,337		1,273,510
Operating income (loss) (b) (d)	$	358,193		$	174,283		$	(183,337)	$	349,139
Operating income margin		3.6	%		4.0	%		-		2.4	%
	Six Months Ended
	June 29, 2024
(thousands)	Global Components			Global ECS			Corporate		Consolidated
Sales	$	10,223,448		$	3,593,680		$	-	$	13,817,128
Cost of sales		8,952,874			3,159,984			-		12,112,858
Gross profit		1,270,574			433,696			-		1,704,270
Gross profit margin		12.4	%		12.1	%		-		12.3	%
Operating expenses (a)		834,811			259,656			211,611		1,306,078
Operating income (loss) (b) (c) (d)	$	435,763		$	174,040		$	(211,611)	$	398,192
Operating income margin		4.3	%		4.8	%		-		2.9	%

(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 $2.2 million and $4.6 million in inventory write-downs related to the wind down of a business for the second quarter and first six months of 2025, respectively, and charges of $1.6 million and $12.1 million in inventory write-downs related to the wind down of a business for the second quarter and first six months of 2024, respectively.

(c) Global ECS operating income includes a $20.0 million benefit related to the reversal of an allowance for credit losses for the second quarter and first six months of 2024.

(d) Corporate operating loss includes restructuring, integration, and other charges of $21.9 million and $39.2 million for the second quarter and first six months of 2025, respectively, and $40.5 million and $87.4 million for the second quarter and first six months of 2024, respectively. Refer to Note I.

Total assets, by reportable segment, are as follows:

	June 28,		December 31,
(thousands)	2025		2024
Total assets:
Global components	$	17,918,136	$	14,765,931
Global ECS		5,829,562		6,518,723
Corporate		504,880		473,053
Consolidated	$	24,252,578	$	21,757,707

Long-lived assets by country are as follows:

	June 28,		December 31,
(thousands)	2025		2024
Long-lived assets:
France	$	98,176	$	86,268
Netherlands		83,229		78,120
Germany		73,892		61,914
Other		157,640		161,989
Total foreign	$	412,937	$	388,291
United States		318,244		332,098
Total	$	731,181	$	720,389