Segment Information

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Information

Segment InformationWe operate in three reportable geographic operating segments: North America; EMEA; and APAC. Our offerings in North America and certain countries in EMEA and APAC include IT hardware, software and services, including cloud solutions. Our offerings in the remainder of our EMEA and APAC segments are largely software and certain software-related services and cloud solutions.

In the following table, revenue is disaggregated by our reportable operating segments, which are primarily defined by their related geographies, as well as by major product offering, by major client group and by recognition on either a gross basis as a principal in the arrangement, or on a net basis as an agent, for the three months ended March 31, 2022 and 2021 (in thousands):

	Three Months Ended March 31, 2022
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	1,451,319	$	210,623	$	11,646	$	1,673,588
Software	341,547		272,402		22,750		636,699
Services	271,639		48,408		20,516		340,563
	$	2,064,505	$	531,433	$	54,912	$	2,650,850
Major Client Groups
Large Enterprise / Corporate	$	1,438,729	$	353,904	$	21,429	$	1,814,062
Commercial	441,159		18,421		14,659		474,239
Public Sector	184,617		159,108		18,824		362,549
	$	2,064,505	$	531,433	$	54,912	$	2,650,850
Revenue Recognition based on acting as Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	1,970,921	$	506,862	$	47,018	$	2,524,801
Net revenue recognition (Agent)	93,584		24,571		7,894		126,049
	$	2,064,505	$	531,433	$	54,912	$	2,650,850

	Three Months Ended March 31, 2021
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	1,109,489	$	195,971	$	9,565	$	1,315,025
Software	308,738		234,423		34,834		577,995
Services	236,554		48,442		15,052		300,048
	$	1,654,781	$	478,836	$	59,451	$	2,193,068
Major Client Groups
Large Enterprise / Corporate	$	1,171,428	$	309,075	$	19,076	$	1,499,579
Commercial	344,045		20,533		12,667		377,245
Public Sector	139,308		149,228		27,708		316,244
	$	1,654,781	$	478,836	$	59,451	$	2,193,068
Revenue Recognition based on acting as Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	1,569,641	$	450,977	$	52,863	$	2,073,481
Net revenue recognition (Agent)	85,140		27,859		6,588		119,587
	$	1,654,781	$	478,836	$	59,451	$	2,193,068

All significant intercompany transactions are eliminated upon consolidation, and there are no differences between the accounting policies used to measure profit and loss for our segments or on a consolidated basis. Net sales are defined as net sales to external clients. None

of our clients exceeded ten percent of consolidated net sales for the three months ended March 31, 2022 or 2021.

A portion of our operating segments’ selling and administrative expenses arise from shared services and infrastructure that we have historically provided to them in order to realize economies of scale and to use resources efficiently. These expenses, collectively identified as corporate charges, include senior management expenses, internal audit, legal, tax, insurance services, treasury and other corporate infrastructure expenses. Charges are allocated to our operating segments, and the allocations have been determined on a basis that we consider to be a reasonable reflection of the utilization of services provided to or benefits received by the operating segments.

The following tables present our results of operations by reportable operating segment for the periods indicated (in thousands):

	Three Months Ended March 31, 2022
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	1,792,866	$	483,025	$	34,396	$	2,310,287
Services	271,639		48,408		20,516		340,563
Total net sales	2,064,505		531,433		54,912		2,650,850
Costs of goods sold:
Products	1,625,775		449,632		31,802		2,107,209
Services	138,646		17,031		9,103		164,780
Total costs of goods sold	1,764,421		466,663		40,905		2,271,989
Gross profit	300,084		64,770		14,007		378,861
Operating expenses:
Selling and administrative expenses	235,220		52,326		10,094		297,640
Severance and restructuring expenses	304		1,068		—		1,372
Earnings from operations	$	64,560	$	11,376	$	3,913	$	79,849

	Three Months Ended March 31, 2021
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	1,418,227	$	430,394	$	44,399	$	1,893,020
Services	236,554		48,442		15,052		300,048
Total net sales	1,654,781		478,836		59,451		2,193,068
Costs of goods sold:
Products	1,283,876		396,184		41,198		1,721,258
Services	117,416		16,617		6,303		140,336
Total costs of goods sold	1,401,292		412,801		47,501		1,861,594
Gross profit	253,489		66,035		11,950		331,474
Operating expenses:
Selling and administrative expenses	206,806		55,447		8,937		271,190
Severance and restructuring expenses	(7,238)		498		—		(6,740)
Earnings from operations	$	53,921	$	10,090	$	3,013	$	67,024

The following is a summary of our total assets by reportable operating segment (in thousands):

	March 31, 2022		December 31, 2021
North America	$	4,825,025	$	4,920,220
EMEA	815,338		828,456
APAC	139,850		148,737
Corporate assets and intercompany eliminations, net	(930,425)		(1,208,333)
Total assets	$	4,849,788	$	4,689,080

We recorded the following pre-tax amounts, by reportable operating segment, for depreciation and amortization in the accompanying consolidated financial statements (in thousands):

	Three Months Ended March 31,
	2022		2021
Depreciation and amortization of property and equipment:
North America	$	4,420	$	4,807
EMEA	807		1,232
APAC	162		142
	5,389		6,181
Amortization of intangible assets:
North America	7,348		7,417
EMEA	457		496
APAC	120		128
	7,925		8,041
Total	$	13,314	$	14,222