Segment Information

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Information

Segment Information

We 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, 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, 2023 and 2022 (in thousands):

	Three Months Ended March 31, 2023
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	1,155,639	$	162,890	$	10,316	$	1,328,845
Software	394,797		214,561		29,442		638,800
Services	283,528		49,553		23,221		356,302
	$	1,833,964	$	427,004	$	62,979	$	2,323,947
Major Client Groups
Large Enterprise / Corporate	$	1,293,533	$	309,063	$	21,402	$	1,623,998
Commercial	372,025		4,790		17,025		393,840
Public Sector	168,406		113,151		24,552		306,109
	$	1,833,964	$	427,004	$	62,979	$	2,323,947
Revenue Recognition based on acting as Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	1,725,177	$	401,343	$	53,884	$	2,180,404
Net revenue recognition (Agent)	108,787		25,661		9,095		143,543
	$	1,833,964	$	427,004	$	62,979	$	2,323,947

	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

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, 2023 or 2022.

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, 2023
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	1,550,436	$	377,451	$	39,758	$	1,967,645
Services	283,528		49,553		23,221		356,302
Total net sales	1,833,964		427,004		62,979		2,323,947
Costs of goods sold:
Products	1,387,962		347,633		37,134		1,772,729
Services	130,858		18,483		10,562		159,903
Total costs of goods sold	1,518,820		366,116		47,696		1,932,632
Gross profit	315,144		60,888		15,283		391,315
Operating expenses:
Selling and administrative expenses	248,820		49,905		11,276		310,001
Severance and restructuring expenses	3,087		702		13		3,802
Acquisition and integration related expenses	51		—		—		51
Earnings from operations	$	63,186	$	10,281	$	3,994	$	77,461

	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

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

	March 31, 2023		December 31, 2022
North America	$	5,285,303	$	5,219,480
EMEA	898,680		939,327
APAC	171,296		153,232
Corporate assets and intercompany eliminations, net	(1,394,751)		(1,199,458)
Total assets	$	4,960,528	$	5,112,581

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,
	2023		2022
Depreciation and amortization of property and equipment:
North America	$	5,648	$	4,420
EMEA	596		807
APAC	109		162
	6,353		5,389
Amortization of intangible assets:
North America	7,785		7,348
EMEA	412		457
APAC	113		120
	8,310		7,925
Total	$	14,663	$	13,314