Segment Information (Notes)

6 Months Ended

Jul. 31, 2019

NOTE 13 — SEGMENT INFORMATION

The Company 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 three geographic segments: the Americas, Europe and Asia-Pacific. The Company does not consider stock-based compensation expense in assessing the performance of its operating segments, and therefore the Company excludes stock-based compensation expense from segment information. 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 (in thousands):



	Three months ended July 31,						Six months ended July 31,
	2019			2018			2019			2018
Net sales:
Americas ⁽¹⁾	$	4,316,731		$	4,043,331		$	8,105,929		$	7,661,537
Europe	4,439,627			4,549,127			8,749,127			9,210,829
Asia-Pacific	335,886			293,643			643,612			562,054
Total	$	9,092,244		$	8,886,101		$	17,498,668		$	17,434,420

Operating income:
Americas ^{(2), (3)}	$	93,085		$	87,930		$	161,718		$	149,272
Europe ^{(4), (5)}	37,649			29,085			74,069			46,403
Asia-Pacific	2,068			1,318			2,944			741
Stock-based compensation expense	(8,055		)	(7,968		)	(16,360		)	(15,555		)
Total	$	124,747		$	110,365		$	222,371		$	180,861

Depreciation and amortization:
Americas	$	23,790		$	23,591		$	47,439		$	46,850
Europe	12,021			14,016			23,531			29,007
Asia-Pacific	1,691			2,311			3,789			4,542
Total	$	37,502		$	39,918		$	74,759		$	80,399

Capital expenditures:
Americas	$	10,526		$	8,233		$	18,798		$	12,612
Europe	6,658			5,362			12,785			9,079
Asia-Pacific	1,047			673			1,927			1,032
Total	$	18,231		$	14,268		$	33,510		$	22,723



As of:	July 31, 2019		January 31, 2019
Identifiable assets:
Americas	$	5,569,530	$	5,402,316
Europe	5,870,713		6,970,822
Asia-Pacific	614,812		613,414
Total	$	12,055,055	$	12,986,552

Long-lived assets:
Americas⁽¹⁾	$	216,638	$	217,863
Europe	51,310		52,162
Asia-Pacific	5,180		4,892
Total	$	273,128	$	274,917

Goodwill & acquisition-related intangible assets, net:
Americas	$	1,057,818	$	1,083,699
Europe	542,938		575,776
Asia-Pacific	57,014		60,154
Total	$	1,657,770	$	1,719,629


(1)	Net sales in the United States represented 91% of the total Americas' net sales for both the three months ended July 31, 2019 and 2018, and 90% and 89%, respectively, of the total Americas' net sales for the six months ended July 31, 2019 and 2018. Total long-lived assets in the United States represented 96% of the Americas' total long-lived assets at both July 31, 2019 and January 31, 2019.

(2)

Operating income in the Americas for the three months ended July 31, 2019 and 2018 includes acquisition, integration and restructuring expenses of $1.3 million and $(0.9) million, respectively. Operating income in the Americas for the six months ended July 31, 2019 and 2018 includes acquisition, integration and restructuring expenses of $4.3 million and $13.1 million, respectively (see further discussion in Note 3 – Acquisition, Integration and Restructuring Expenses).

(3)

Operating income in the Americas includes a gain related to legal settlements and other, net, of $5.2 million for the three months ended July 31, 2018. Operating income in the Americas includes a gain related to legal settlements and other, net, of $0.3 million and $8.2 million for the six months ended July 31, 2019 and 2018, respectively (see further discussion in Note 1 - Business and Summary of Significant Accounting Policies).


(4)	Operating income in Europe for the three months ended July 31, 2019 and 2018 includes acquisition, integration and restructuring expenses of $3.2 million and $13.3 million, respectively. Operating income in Europe for the six months ended July 31, 2019 and 2018 includes acquisition, integration and restructuring expenses of $6.3 million and $31.3 million, respectively.

(5)

Operating income in Europe for the three and six months ended July 31, 2018 includes a gain on disposal of a subsidiary of $6.7 million (see further discussion in Note 4 – Gain on Disposal of Subsidiary).