Segment Information

6 Months Ended

Dec. 31, 2012

Segment Reporting, Measurement Disclosures [Abstract]

Segment Information

Segment Information

The Company is a leading wholesale distributor of specialty technology products, providing value-added distribution sales to resellers in specialty technology markets. The Company has two reporting segments, based on geographic location. The measure of segment profit is operating income, and the accounting policies of the segments are the same as those described in the notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2012.

North American Distribution

The North American distribution segment markets AIDC and POS products through its ScanSource POS and Barcode sales unit; voice, data, video and converged communications equipment through its Catalyst Telecom sales unit; video conferencing, telephony and communications products through its ScanSource Communications sales unit; and electronic security products and wireless infrastructure products through its ScanSource Security sales unit. The Company serves more than 14,000 resellers and integrators of technology products in the United States and Canada. No single account represented more than 6% of the Company’s worldwide net sales for the quarters and six months ended December 31, 2012 or 2011.

International Distribution

The international distribution segment markets AIDC, POS, communications and security products as follows: ScanSource Latin America markets AIDC, POS, communications and security products; ScanSource Europe markets AIDC and POS products, while communication products are marketed through its ScanSource Communications sales unit in Europe. The Company serves more than 15,000 resellers and integrators of technology products in Europe and Latin America. Of this segment’s customers, no single account represented more than 1% of the Company’s worldwide net sales during the quarters and six months ended December 31, 2012 or 2011.

Inter-segment sales consist primarily of sales by the North American distribution segment to the international distribution segment. All inter-segment revenues and profits have been eliminated in the accompanying condensed consolidated financial statements. Selected financial information of each reporting segment is presented as follows:

	Quarter ended						Six months ended
	December 31,						December 31,
	2012			2011			2012			2011
	(In thousands)
Sales:
North American distribution	$	562,317		$	574,475		$	1,127,615		$	1,158,058
International distribution	199,729			219,761			387,521			416,548
Less intersegment sales	(14,330		)	(11,552		)	(33,816		)	(21,663		)
	$	747,716		$	782,684		$	1,481,320		$	1,552,943
Depreciation and amortization:
North American distribution	$	961		$	999		$	1,970		$	2,042
International distribution	1,314			1,259			2,619			2,798
	$	2,275		$	2,258		$	4,589		$	4,840
Operating income:
North American distribution	$	23,259		$	26,756		$	48,243		$	56,030
International distribution	1,166			5,331			2,397			7,685
	$	24,425		$	32,087		$	50,640		$	63,715
Capital expenditures:
North American distribution	$	833		$	2,137		$	2,722		$	4,328
International distribution	365			1,037			482			1,185
	$	1,198		$	3,174		$	3,204		$	5,513

	December 31, 2012		June 30, 2012
	(in thousands)
Assets:
North American distribution	$	806,614	$	813,889
International distribution	396,909		387,917
	$	1,203,523	$	1,201,806