Segment and Geographic Information

3 Months Ended

Mar. 30, 2024

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 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:

	Quarter Ended
	March 30,		April 1,
(thousands)	2024		2023
Sales:
Components:
Americas	$	1,596,692	$	2,233,453
EMEA		1,656,507		2,246,145
Asia/Pacific		1,938,218		2,376,195
Global components	$	5,191,417	$	6,855,793
ECS:
Americas	$	907,748	$	998,114
EMEA		825,095		882,521
Global ECS	$	1,732,843	$	1,880,635
Consolidated	$	6,924,260	$	8,736,428

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

	Quarter Ended
	March 30,		April 1,
(thousands)	2024		2023
Operating income (loss):
Global components (a)	$	225,562	$	417,539
Global ECS		71,459		81,099
Corporate (b)		(111,104)		(76,486)
Consolidated	$	185,917	$	422,152

(a) Global components operating income includes charges of $10.5 million in inventory write downs related to the wind down of a business.

(b) Corporate operating income (loss) includes restructuring, integration, and other charges of $46.9 million and $2.6 million for the first quarter of 2024 and 2023, respectively. Restructuring, integration, and other charges for the first quarter of 2024 include charges of $42.8 million related to termination of personnel as a part of operating expense reduction initiatives. Refer to Note I.