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Segment and Geographic Information
12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
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