Segment Information

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Segment Information

12. Segment Information

We operate in three reportable geographic operating segments: North America; EMEA; and APAC. Our offerings in North America and select countries in EMEA include hardware, software and services. Our offerings in the remainder of our EMEA segment and in APAC are largely 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 six months ended June 30, 2015 and 2014 (in thousands):

	North America				EMEA				APAC
	Three Months Ended June 30,				Three Months Ended June 30,				Three Months Ended June 30,
Sales Mix	2015		2014		2015		2014		2015		2014
Hardware	$	587,563	$	527,187	$	121,410	$	139,423	$	3,651	$	4,043
Software		326,192		310,838		250,055		297,014		59,356		74,915
Services		64,895		51,227		9,161		10,420		1,748		2,830
	$	978,650	$	889,252	$	380,626	$	446,857	$	64,755	$	81,788

	North America				EMEA				APAC
	Six Months Ended June 30,				Six Months Ended June 30,				Six Months Ended June 30,
Sales Mix	2015		2014		2015		2014		2015		2014
Hardware	$	1,092,815	$	1,015,597	$	267,394	$	291,277	$	5,577	$	5,634
Software		584,684		557,009		448,515		525,429		98,178		117,734
Services		123,860		97,328		19,559		18,094		3,128		4,325
	$	1,801,359	$	1,669,934	$	735,468	$	834,800	$	106,883	$	127,693

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 ten percent of consolidated net sales for the three or six months ended June 30, 2015 or 2014.

A portion of our operating segments’ selling and administrative expenses arise from shared services and infrastructure that we have historically provided to them in order to realize economies of scale and to use resources efficiently. 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 June 30, 2015 and 2014 (in thousands):

	Three Months Ended June 30, 2015
	North America			EMEA		APAC		Consolidated
Net sales	$	978,650		$	380,626	$	64,755	$	1,424,031
Costs of goods sold		850,434			327,811		54,371		1,232,616
Gross profit		128,216			52,815		10,384		191,415
Operating expenses:
Selling and administrative expenses		99,033			42,754		6,217		148,004
Severance and restructuring expenses		(150	)		522		—		372
Earnings from operations	$	29,333		$	9,539	$	4,167	$	43,039
Total assets at period end	$	2,019,482		$	602,410	$	172,308	$	2,794,200	*

* Consolidated total assets do not reflect the net effect of corporate assets and intercompany eliminations of $641,605,000.

	Three Months Ended June 30, 2014
	North America			EMEA		APAC		Consolidated
Net sales	$	889,252		$	446,857	$	81,788	$	1,417,897
Costs of goods sold		764,214			390,771		68,313		1,223,298
Gross profit		125,038			56,086		13,475		194,599
Operating expenses:
Selling and administrative expenses		94,558			46,030		7,222		147,810
Severance and restructuring expenses		(14	)		215		109		310
Earnings from operations	$	30,494		$	9,841	$	6,144	$	46,479
Total assets at period end	$	1,687,341		$	623,873	$	194,982	$	2,506,196	**

** Consolidated total assets do not reflect the net effect of corporate assets and intercompany eliminations of $529,621,000.

The tables below present information about our reportable operating segments as of and for the six months ended June 30, 2015 and 2014 (in thousands):

	Six Months Ended June 30, 2015
	North America		EMEA		APAC		Consolidated
Net sales	$	1,801,359	$	735,468	$	106,883	$	2,643,710
Costs of goods sold		1,561,627		637,842		91,013		2,290,482
Gross profit		239,732		97,626		15,870		353,228
Operating expenses:
Selling and administrative expenses		191,435		85,511		11,854		288,800
Severance and restructuring expenses		255		840		—		1,095
Earnings from operations	$	48,042	$	11,275	$	4,016	$	63,333
Total assets at period end	$	2,019,482	$	602,410	$	172,308	$	2,794,200	*

* Consolidated total assets do not reflect the net effect of corporate assets and intercompany eliminations of $641,605,000.

	Six Months Ended June 30, 2014
	North America		EMEA		APAC		Consolidated
Net sales	$	1,669,934	$	834,800	$	127,693	$	2,632,427
Costs of goods sold		1,437,483		729,393		107,207		2,274,083
Gross profit		232,451		105,407		20,486		358,344
Operating expenses:
Selling and administrative expenses		183,739		93,135		13,365		290,239
Severance and restructuring expenses		63		475		109		647
Earnings from operations	$	48,649	$	11,797	$	7,012	$	67,458
Total assets at period end	$	1,687,341	$	623,873	$	194,982	$	2,506,196	**

** Consolidated total assets do not reflect the net effect of corporate assets and intercompany eliminations of $529,621,000.

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 June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
North America	$	7,547	$	8,372	$	15,188	$	16,044
EMEA		1,682		2,153		3,367		4,330
APAC		230		230		446		407
Total	$	9,459	$	10,755	$	19,001	$	20,781