Segment and Geographic Information

12 Months Ended

Dec. 31, 2023

Segment and Geographic Information

Segment and Geographic Information

16. 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 enterprise computing solutions (“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 original equipment manufacturers (“OEMs”) and contract manufacturers (“CMs”). 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 value-added resellers (“VARs”) and managed service providers (“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:

(thousands)	2023		2022		2021
Sales:
Components:
Americas	$	7,954,713	$	9,592,547	$	7,827,866
EMEA		8,074,894		7,627,974		6,248,846
Asia/Pacific		9,390,292		11,567,482		12,280,805
Global components	$	25,419,899	$	28,788,003	$	26,357,517
ECS:
Americas	$	4,160,298	$	4,847,027	$	4,878,954
EMEA		3,526,923		3,489,392		3,240,547
Global ECS	$	7,687,221	$	8,336,419	$	8,119,501
Consolidated	$	33,107,120	$	37,124,422	$	34,477,018

Sales by country are as follows:

(thousands)	2023		2022		2021
Sales:
China and Hong Kong	$	4,858,871	$	6,339,883	$	7,249,611
Germany		4,341,837		4,715,806		4,007,381
Other		12,737,852		12,901,063		11,603,832
Total foreign	$	21,938,560	$	23,956,752	$	22,860,824
United States		11,168,560		13,167,670		11,616,194
Total	$	33,107,120	$	37,124,422	$	34,477,018

The company operates in more than 85 countries worldwide. Sales to unaffiliated customers are based on the company location that maintains the customer relationship and transacts the external sale.

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

(thousands)	2023		2022		2021
Operating income (loss):
Global components (a)	$	1,459,166	$	1,961,125	$	1,432,187
Global ECS (b)		367,004		408,519		390,103
Corporate (c)		(355,006)		(301,150)		(265,468)
Consolidated	$	1,471,164	$	2,068,494	$	1,556,822

(a) Global components operating income includes $62.2 million and $12.5 million in settlement charges recorded as a reduction to operating expense for 2023 and 2021, respectively, (refer to Note 15) and $4.5 million in restructuring, integration, and other charges for 2021.

(b) Global ECS operating income includes charges to increase the allowance for credit losses, which increased by $24.0 million for 2023, relative to the year-earlier period.

(c) Corporate operating loss for the years 2023, 2022, and 2021 includes restructuring, integration, and other charges of $83.9 million, $13.7 million, and $10.9 million, respectively.

Total assets, by reportable segment, at December 31 are as follows:

(thousands)	2023		2022
Total assets:
Global components	$	15,129,190	$	15,001,624
Global ECS		6,051,459		6,124,184
Corporate		545,519		637,374
Consolidated	$	21,726,168	$	21,763,182

Long-lived assets by country are as follows:

(thousands)	2023		2022
Long-lived assets:
Netherlands	$	89,199	$	93,390
France		87,861		68,048
Other		258,264		247,823
Total foreign	$	435,324	$	409,261
United States		364,940		464,749
Total	$	800,264	$	874,010