Segment Information

6 Months Ended

Jul. 31, 2014

Segment Reporting Information, Additional Information [Abstract]

Segment Information

SEGMENT INFORMATION

Tech Data operates predominantly in a single industry segment as a distributor of technology products, logistics management, and other value-added services. While the Company operates primarily in one industry, it is managed based on geographic segments: the Americas (including North America and South America) and Europe. The Company assesses performance of and makes decisions on how to allocate resources to its operating segments based on multiple factors including current and projected operating income and market opportunities. The Company does not consider stock-based compensation expense in assessing the performance of its operating segments, and therefore the Company is reporting stock-based compensation expense as a separate amount. The accounting policies of the segments are the same as those described in Note 1—Business and Summary of Significant Accounting Policies.

Financial information by geographic segment is as follows:

	Three months ended  July 31,						Six months ended  July 31,
	2014			2013			2014			2013
	(In thousands)						(In thousands)
Net sales to unaffiliated customers
Americas (1)	$	2,722,191		$	2,624,546		$	5,198,462		$	4,917,328
Europe	4,119,618			3,702,930			8,371,498			7,557,905
Total	$	6,841,809		$	6,327,476		$	13,569,960		$	12,475,233
Operating income
Americas (2)	$	38,854		$	31,988		$	65,137		$	59,219
Europe (3) (4)	32,725			98			39,911			11,989
Stock-based compensation expense	(3,869		)	(2,227		)	(5,842		)	(5,318		)
Total	$	67,710		$	29,859		$	99,206		$	65,890
Depreciation and amortization
Americas	$	4,188		$	4,251		$	8,306		$	8,497
Europe	13,525			13,857			27,623			27,578
Total	$	17,713		$	18,108		$	35,929		$	36,075
Capital expenditures
Americas	$	3,370		$	1,921		$	4,852		$	3,618
Europe	3,871			5,279			6,616			11,316
Total	$	7,241		$	7,200		$	11,468		$	14,934

	As of
	July 31, 2014		January 31, 2014
	(In thousands)
Identifiable assets
Americas	$	2,170,773	$	1,984,895
Europe	4,488,671		5,184,771
Total	$	6,659,444	$	7,169,666
Long-lived assets:
Americas(1)	$	22,258	$	28,091
Europe	47,324		49,540
Total	$	69,582	$	77,631
Goodwill & acquisition-related intangible assets, net:
Americas	$	9,150	$	8,936
Europe	373,476		386,919
Total	$	382,626	$	395,855

(1) Net sales to unaffiliated customers in the United States represented 87% and 86%, respectively, of the total Americas' net sales to unaffiliated customers for the three months ended July 31, 2014 and 2013. Net sales to unaffiliated customers in the United States represented 85% of the total Americas' net sales to unaffiliated customers for each of the six months ended July 31, 2014 and 2013. Total long-lived assets in the United States represented 89% and 90% of the Americas' total long-lived assets at July 31, 2014 and January 31, 2014, respectively.

(2) Operating income in the Americas for the three months ended July 31, 2014 and 2013 includes restatement and remediation related expenses of $0.2 million and $3.0 million, respectively. Operating income in the Americas for the six months ended July 31, 2014 and 2013 includes restatement and remediation related expenses of $3.1 million and $4.8 million, respectively.

(3) Operating income in Europe for the three months ended July 31, 2014 and 2013 includes restatement and remediation related expenses of $5.2 million and $8.0 million, respectively. Operating income in Europe for the six months ended July 31, 2014 and 2013 includes restatement and remediation related expenses of $14.6 million and $9.2 million, respectively.

(4) Operating income in Europe for the three and six months ended July 31, 2014 includes a decrease in an accrual for a value added tax assessment of $6.2 million in one of the Company's subsidiaries in Spain.