Segment Information

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Segment Information

11. Segment Information

We operate in three reportable geographic operating segments: North America; EMEA; and APAC. Currently, our offerings in North America and select countries in EMEA include IT hardware, software and services. Our offerings in the remainder of our EMEA segment and in APAC are almost entirely software and select software-related services. Net sales by product or service type for North America, EMEA and APAC were as follows for the three and nine months ended September 30, 2013 and 2012 (in thousands):

	North America				EMEA				APAC
	Three Months Ended September 30,				Three Months Ended September 30,				Three Months Ended September 30,
Sales Mix	2013		2012		2013		2012		2013		2012
Hardware	$	546,192	$	574,538	$	120,404	$	125,890	$	1,304	$	880
Software		259,862		239,476		135,651		145,103		26,881		33,197
Services		51,881		54,751		7,496		5,628		1,349		1,946
	$	857,935	$	868,765	$	263,551	$	276,621	$	29,534	$	36,023
	North America				EMEA				APAC
	Nine Months Ended September 30,				Nine Months Ended September 30,				Nine Months Ended September 30,
Sales Mix	2013		2012		2013		2012		2013		2012
Hardware	$	1,548,326	$	1,697,229	$	370,906	$	410,961	$	4,133	$	3,567
Software		819,266		857,271		674,513		654,943		140,553		142,838
Services		160,410		163,562		26,159		19,265		4,923		5,130
	$	2,528,002	$	2,718,062	$	1,071,578	$	1,085,169	$	149,609	$	151,535

All significant intercompany transactions are eliminated upon consolidation, and there are no differences between the accounting policies used to measure profit and loss for our segments and on a consolidated basis. Net sales are defined as net sales to external clients. None of our clients exceeded 10% of consolidated net sales for the three or nine months ended September 30, 2013.

A portion of our operating segments’ selling and administrative expenses arise from shared services and infrastructure that we provide to them in order to realize economies of scale. These expenses, collectively identified as corporate charges, include senior management expenses, internal audit, legal, tax, insurance services, treasury and other corporate infrastructure expenses. Charges are allocated to our operating segments, and the allocations have been determined on a basis that we considered to be a reasonable reflection of the utilization of services provided to or benefits received by the operating segments.

The tables below present information about our reportable operating segments as of and for the three months ended September 30, 2013 and 2012 (in thousands):

	Three Months Ended September 30, 2013
	North America		EMEA			APAC		Consolidated
Net sales	$	857,935	$	263,551		$	29,534	$	1,151,020
Costs of goods sold		734,991		224,208			23,153		982,352
Gross profit		122,944		39,343			6,381		168,668
Operating expenses:
Selling and administrative expenses		93,082		41,232			5,651		139,965
Severance and restructuring expenses		530		1,894			—		2,424
Earnings (loss) from operations	$	29,332	$	(3,783	)	$	730	$	26,279
Total assets at period end	$	1,640,205	$	391,531		$	72,384	$	2,104,120	*

* Consolidated total assets do not reflect the net effect of corporate assets and intercompany eliminations of $484,424,000.

	Three Months Ended September 30, 2012
	North America		EMEA			APAC		Consolidated
Net sales	$	868,765	$	276,621		$	36,023	$	1,181,409
Costs of goods sold		751,790		233,313			28,681		1,013,784
Gross profit		116,975		43,308			7,342		167,625
Operating expenses:
Selling and administrative expenses		87,779		42,088			6,392		136,259
Severance and restructuring expenses		916		(211	)		—		705
Earnings from operations	$	28,280	$	1,431		$	950	$	30,661
Total assets at period end	$	1,579,440	$	394,330		$	65,665	$	2,039,435	**

** Consolidated total assets do not reflect the net effect of corporate assets and intercompany eliminations of $447,588,000.

The tables below present information about our reportable operating segments as of and for the nine months ended September 30, 2013 and 2012 (in thousands):

	Nine Months Ended September 30, 2013
	North America		EMEA		APAC		Consolidated
Net sales	$	2,528,002	$	1,071,578	$	149,609	$	3,749,189
Costs of goods sold		2,177,867		929,387		124,203		3,231,457
Gross profit		350,135		142,191		25,406		517,732
Operating expenses:
Selling and administrative expenses		272,573		133,297		18,241		424,111
Severance and restructuring expenses		2,554		5,773		—		8,327
Earnings from operations	$	75,008	$	3,121	$	7,165	$	85,294
Total assets at period end	$	1,640,205	$	391,531	$	72,384	$	2,104,120	*

* Consolidated total assets do not reflect the net effect of corporate assets and intercompany eliminations of $484,424,000.

	Nine Months Ended September 30, 2012
	North America		EMEA		APAC		Consolidated
Net sales	$	2,718,062	$	1,085,169	$	151,535	$	3,954,766
Costs of goods sold		2,357,094		932,198		126,191		3,415,483
Gross profit		360,968		152,971		25,344		539,283
Operating expenses:
Selling and administrative expenses		270,105		134,412		18,737		423,254
Severance and restructuring expenses		2,299		2,157		—		4,456
Earnings from operations	$	88,564	$	16,402	$	6,607	$	111,573
Total assets at period end	$	1,579,440	$	394,330	$	65,665	$	2,039,435	**

** Consolidated total assets do not reflect the net effect of corporate assets and intercompany eliminations of $447,588,000.

We recorded the following pre-tax amounts, by operating segment, for depreciation and amortization, in the accompanying consolidated financial statements (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
North America	$	8,037	$	7,944	$	24,344	$	24,201
EMEA		2,213		1,952		6,334		5,757
APAC		217		242		659		677
Total	$	10,467	$	10,138	$	31,337	$	30,635