Segment and Geographic Information |
(21) Segment and Geographic Information
We operate in three reportable geographic operating segments: North
America; EMEA; and APAC. Our offerings in North America and select
countries in EMEA and APAC include IT hardware, software and
services. Our offerings in the remainder of our EMEA and APAC
segments are largely software and select software-related services.
Net sales by offering for North America, EMEA and APAC were as
follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
Years Ended December 31, |
|
Sales Mix
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Hardware
|
|
$ |
2,455,159 |
|
|
$ |
2,336,788 |
|
|
$ |
2,175,397 |
|
Software
|
|
|
1,234,792 |
|
|
|
1,231,269 |
|
|
|
1,174,234 |
|
Services
|
|
|
281,877 |
|
|
|
255,471 |
|
|
|
213,095 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
3,971,828 |
|
|
$ |
3,823,528 |
|
|
$ |
3,562,726 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMEA
Years Ended December 31, |
|
Sales Mix
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Hardware
|
|
$ |
481,505 |
|
|
$ |
531,308 |
|
|
$ |
572,494 |
|
Software
|
|
|
811,013 |
|
|
|
799,761 |
|
|
|
930,763 |
|
Services
|
|
|
46,042 |
|
|
|
40,068 |
|
|
|
36,711 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,338,560 |
|
|
$ |
1,371,137 |
|
|
$ |
1,539,968 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APAC
Years Ended December 31, |
|
Sales Mix
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Hardware
|
|
$ |
18,925 |
|
|
$ |
14,333 |
|
|
$ |
12,463 |
|
Software
|
|
|
143,709 |
|
|
|
158,046 |
|
|
|
193,533 |
|
Services
|
|
|
12,493 |
|
|
|
6,046 |
|
|
|
7,539 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
175,127 |
|
|
$ |
178,425 |
|
|
$ |
213,535 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The method for determining what information regarding operating
segments, products and services, geographic areas of operation and
major clients to report is based upon the “management
approach,” or the way that management organizes the operating
segments within a company, for which separate financial information
is evaluated regularly by the Chief Operating Decision Maker
(“CODM”) in deciding how to allocate resources. Our
CODM is our Chief Executive Officer.
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 or 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 in 2016, 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 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
2016 |
|
|
|
North
America |
|
|
EMEA |
|
|
APAC |
|
|
Consolidated |
|
Net sales
|
|
$ |
3,971,828 |
|
|
$ |
1,338,560 |
|
|
$ |
175,127 |
|
|
$ |
5,485,515 |
|
Costs of goods sold
|
|
|
3,446,347 |
|
|
|
1,152,873 |
|
|
|
143,193 |
|
|
|
4,742,413 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
525,481 |
|
|
|
185,687 |
|
|
|
31,934 |
|
|
|
743,102 |
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and administrative expenses
|
|
|
401,316 |
|
|
|
160,269 |
|
|
|
23,658 |
|
|
|
585,243 |
|
Severance and restructuring expenses
|
|
|
2,966 |
|
|
|
1,496 |
|
|
|
118 |
|
|
|
4,580 |
|
Acquisition-related expenses
|
|
|
4,278 |
|
|
|
— |
|
|
|
169 |
|
|
|
4,447 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from operations
|
|
$ |
116,921 |
|
|
$ |
23,922 |
|
|
$ |
7,989 |
|
|
$ |
148,832 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$ |
2,204,351 |
|
|
$ |
562,293 |
|
|
$ |
119,778 |
|
|
$ |
2,886,422 |
* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
2015 |
|
|
|
North
America |
|
|
EMEA |
|
|
APAC |
|
|
Consolidated |
|
Net sales
|
|
$ |
3,823,528 |
|
|
$ |
1,371,137 |
|
|
$ |
178,425 |
|
|
$ |
5,373,090 |
|
Costs of goods sold
|
|
|
3,321,965 |
|
|
|
1,184,850 |
|
|
|
149,943 |
|
|
|
4,656,758 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
501,563 |
|
|
|
186,287 |
|
|
|
28,482 |
|
|
|
716,332 |
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and administrative expenses
|
|
|
396,603 |
|
|
|
165,879 |
|
|
|
22,424 |
|
|
|
584,906 |
|
Severance and restructuring expenses
|
|
|
1,126 |
|
|
|
3,781 |
|
|
|
— |
|
|
|
4,907 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from operations
|
|
$ |
103,834 |
|
|
$ |
16,627 |
|
|
$ |
6,058 |
|
|
$ |
126,519 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$ |
1,999,485 |
|
|
$ |
543,146 |
|
|
$ |
114,973 |
|
|
$ |
2,657,604 |
* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
2014 |
|
|
|
North
America |
|
|
EMEA |
|
|
APAC |
|
|
Consolidated |
|
Net sales
|
|
$ |
3,562,726 |
|
|
$ |
1,539,968 |
|
|
$ |
213,535 |
|
|
$ |
5,316,229 |
|
Costs of goods sold
|
|
|
3,085,279 |
|
|
|
1,340,052 |
|
|
|
178,495 |
|
|
|
4,603,826 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
477,447 |
|
|
|
199,916 |
|
|
|
35,040 |
|
|
|
712,403 |
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and administrative expenses
|
|
|
372,936 |
|
|
|
178,816 |
|
|
|
25,215 |
|
|
|
576,967 |
|
Severance and restructuring expenses
|
|
|
971 |
|
|
|
3,356 |
|
|
|
106 |
|
|
|
4,433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from operations
|
|
$ |
103,540 |
|
|
$ |
17,744 |
|
|
$ |
9,719 |
|
|
$ |
131,003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$ |
1,840,057 |
|
|
$ |
575,757 |
|
|
$ |
117,437 |
|
|
$ |
2,533,251 |
* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Consolidated total assets do not
reflect intercompany eliminations and corporate assets of
$667,122,000, $643,587,000 and $585,413,000 at December 31,
2016, 2015 and 2014, respectively. |
The following is a summary of our geographic net sales and
long-lived assets, consisting of property and equipment, net (in
thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
|
United Kingdom |
|
|
Other Foreign |
|
|
Total |
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$ |
3,776,352 |
|
|
$ |
671,999 |
|
|
$ |
1,037,164 |
|
|
$ |
5,485,515 |
|
Total long-lived assets
|
|
$ |
46,774 |
|
|
$ |
13,570 |
|
|
$ |
10,566 |
|
|
$ |
70,910 |
|
|
|
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$ |
3,645,876 |
|
|
$ |
711,957 |
|
|
$ |
1,015,257 |
|
|
$ |
5,373,090 |
|
Total long-lived assets
|
|
$ |
58,748 |
|
|
$ |
16,810 |
|
|
$ |
12,723 |
|
|
$ |
88,281 |
|
|
|
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$ |
3,368,798 |
|
|
$ |
746,123 |
|
|
$ |
1,201,308 |
|
|
$ |
5,316,229 |
|
Total long-lived assets
|
|
$ |
70,439 |
|
|
$ |
19,522 |
|
|
$ |
14,220 |
|
|
$ |
104,181 |
|
Net sales by geographic area are presented by attributing net sales
to external customers based on the domicile of the selling
location.
We recorded the following pre-tax amounts, by operating segment,
for depreciation and amortization in the accompanying consolidated
financial statements (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
December 31, |
|
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Depreciation and amortization of property and equipment:
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
$ |
21,952 |
|
|
$ |
22,239 |
|
|
$ |
23,632 |
|
EMEA
|
|
|
4,908 |
|
|
|
3,757 |
|
|
|
5,025 |
|
APAC
|
|
|
633 |
|
|
|
653 |
|
|
|
586 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27,493 |
|
|
|
26,649 |
|
|
|
29,243 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
8,139 |
|
|
|
8,053 |
|
|
|
7,536 |
|
EMEA
|
|
|
1,951 |
|
|
|
2,834 |
|
|
|
3,300 |
|
APAC
|
|
|
547 |
|
|
|
421 |
|
|
|
491 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,637 |
|
|
|
11,308 |
|
|
|
11,327 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
38,130 |
|
|
$ |
37,957 |
|
|
$ |
40,570 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|