| Segment and Geographic Information |
Note M – Segment and Geographic Information The company is a global provider of products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions. The company organizes its operations by geographic region and global business lines. The company’s operating segments reflect the way the chief executive officer (CODM as defined in ASC 280, Segment Reporting) reviews financial information, makes operating decisions and assesses business performance. In identifying operating segments, the company also considers its annual budgeting and forecasting process, management reporting structure, the basis on which management compensation is determined, information presented to the Board of Directors, and similarities such as the nature of products, technology and other shared resources, and customer base. The company concluded that identifying operating segments by major geographic region within each of the company’s major businesses was consistent with the objectives of ASC 280 and it has aggregated geographic operating segments within Global Components and Global ECS based on similar characteristics including long-term financial performance, the nature of services provided, internal process for delivering those services, and types of customers. Global Components, enabled by a comprehensive range of value-added capabilities and services, markets and distributes electronic components to OEMs and EMS providers. Global ECS is a leading provider of comprehensive computing solutions and value-added services. Global ECS brings broad market access, extensive supplier relationships, scale, and value-added solutions to help its VARs and MSPs meet the needs of their end-users through a portfolio that includes datacenter, cloud, security, and analytics solutions. The CODM evaluates the performance of both segments based on operating income, as well as monitors the components of operating income including sales, gross profit, and operating expenses. This information is used to monitor segment profitability, allocate resources, and make budgeting and forecasting decisions about the segments. The CODM also uses these measures to monitor trends in year-over-year performance comparisons, sequential quarter performance comparisons, and comparisons of actual results to forecasts. More disaggregated information about operating expense is generally only reviewed by the CODM on a consolidated basis. As a result of the company’s philosophy of maximizing operating efficiencies through the centralization of certain functions, operating income for the segments excludes unallocated corporate overhead costs, depreciation on corporate fixed assets, and restructuring, integration, and other costs, as they are not attributable to the individual segments and are included in the corporate line item. Sales, by segment by geographic area, are as follows: | | | | | | | | | | | | | | | Quarter Ended | | Six Months Ended | | | July 4, | | June 28, | | July 4, | | June 28, | (thousands) | | 2026 | | 2025 | | 2026 | | 2025 | Sales: | | | | | | | | | | | | | Components: | | | | | | | | | | | | | Americas | | $ | 2,454,521 | | $ | 1,707,522 | | $ | 4,766,668 | | $ | 3,276,092 | EMEA | | | 1,938,784 | | | 1,426,944 | | | 3,703,963 | | | 2,766,945 | Asia/Pacific | | | 2,972,320 | | | 2,150,432 | | | 5,535,329 | | | 4,019,583 | Global Components | | $ | 7,365,625 | | $ | 5,284,898 | | $ | 14,005,960 | | $ | 10,062,620 | | | | | | | | | | | | | | ECS: | | | | | | | | | | | | | Americas | | $ | 1,135,513 | | $ | 1,052,785 | | $ | 2,320,563 | | $ | 1,962,688 | EMEA | | | 1,491,099 | | | 1,242,264 | | | 3,139,262 | | | 2,368,656 | Global ECS | | $ | 2,626,612 | | $ | 2,295,049 | | $ | 5,459,825 | | $ | 4,331,344 | Total | | $ | 9,992,237 | | $ | 7,579,947 | | $ | 19,465,785 | | $ | 14,393,964 |
Sales by country are as follows: | | | | | | | | | | | | | | | Quarter Ended | | Six Months Ended | | | July 4, | | June 28, | | July 4, | | June 28, | (thousands) | | 2026 | | 2025 | | 2026 | | 2025 | Sales: | | | | | | | | | | | | | China and Hong Kong | | $ | 1,353,662 | | $ | 1,090,699 | | $ | 2,525,448 | | $ | 2,016,591 | Germany | | | 1,009,491 | | | 793,022 | | | 2,029,453 | | | 1,510,354 | Other | | | 4,175,489 | | | 3,079,871 | | | 8,157,993 | | | 5,939,222 | Total foreign | | $ | 6,538,642 | | $ | 4,963,592 | | $ | 12,712,894 | | $ | 9,466,167 | United States | | | 3,453,595 | | | 2,616,355 | | | 6,752,891 | | | 4,927,797 | Total | | $ | 9,992,237 | | $ | 7,579,947 | | $ | 19,465,785 | | $ | 14,393,964 |
Results of operations by segment are as follows: | | | | | | | | | | | | | | | Quarter Ended | | | July 4, 2026 | (thousands) | | | Global Components | | | Global ECS | | | Total | Sales | | $ | 7,365,625 | | | $ | 2,626,612 | | | $ | 9,992,237 | | Cost of sales | | | 6,509,122 | | | | 2,357,906 | | | | 8,867,028 | | Gross profit (a) | | | 856,503 | | | | 268,706 | | | | 1,125,209 | | Gross profit margin | | | 11.6 | % | | | 10.2 | % | | | 11.3 | % | Segment operating expenses (b) | | | 460,228 | | | | 183,331 | | | | 643,559 | | Segment operating income (a) (c) | | $ | 396,275 | | | $ | 85,375 | | | $ | 481,650 | | Segment operating income margin | | | 5.4 | % | | | 3.3 | % | | | 4.8 | % | Reconciliation of segment operating income | | | | | | | | | | | | | Corporate operating expenses (d) | | | | | | | | | | | (104,317) | | Consolidated operating income | | | | | | | | | | $ | 377,333 | | Equity in earnings of affiliated companies | | | | | | | | | | | 2,065 | | Gain on investments, net | | | | | | | | | | | 12,044 | | Post-retirement expense | | | | | | | | | | | (999) | | Interest and other financing expense, net | | | | | | | | | | | (37,297) | | Consolidated income before taxes | | | | | | | | | | $ | 353,146 | | | | | | | | | | | | | | | | | Quarter Ended | | | June 28, 2025 | (thousands) | | Global Components | | | Global ECS | | | Total | | Sales | | $ | 5,284,898 | | | $ | 2,295,049 | | | $ | 7,579,947 | | Cost of sales | | | 4,693,444 | | | | 2,037,846 | | | | 6,731,290 | | Gross profit | | | 591,454 | | | | 257,203 | | | | 848,657 | | Gross profit margin | | | 11.2 | % | | | 11.2 | % | | | 11.2 | % | Segment operating expenses (b) | | | 404,646 | | | | 160,234 | | | | 564,880 | | Segment operating income (c) | | $ | 186,808 | | | $ | 96,969 | | | $ | 283,777 | | Segment operating income margin | | | 3.5 | % | | | 4.2 | % | | | 3.7 | % | Reconciliation of segment operating income | | | | | | | | | | | | | Corporate operating expenses (d) | | | | | | | | | | | (93,191) | | Consolidated operating income | | | | | | | | | | $ | 190,586 | | Equity in losses of affiliated companies | | | | | | | | | | | (659) | | Gain on investments, net | | | | | | | | | | | 103,976 | | Post-retirement expense | | | | | | | | | | | (664) | | Interest and other financing expense, net | | | | | | | | | | | (60,283) | | Consolidated income before taxes | | | | | | | | | | $ | 232,956 | | | | | | | | | | | | | | |
| | Six Months Ended | | | July 4, 2026 | (thousands) | | Global Components | | | Global ECS | | | Total | | Sales | | $ | 14,005,960 | | | $ | 5,459,825 | | | $ | 19,465,785 | | Cost of sales | | | 12,342,709 | | | | 4,907,407 | | | | 17,250,116 | | Gross profit (a) | | | 1,663,251 | | | | 552,418 | | | | 2,215,669 | | Gross profit margin | | | 11.9 | % | | | 10.1 | % | | | 11.4 | % | Segment operating expenses (b) | | | 903,457 | | | | 363,305 | | | | 1,266,762 | | Segment operating income (a) (c) | | $ | 759,794 | | | $ | 189,113 | | | $ | 948,907 | | Segment operating income margin | | | 5.4 | % | | | 3.5 | % | | | 4.9 | % | Reconciliation of segment operating income | | | | | | | | | | | | | Corporate operating expenses (d) | | | | | | | | | | | (209,972) | | Consolidated operating income | | | | | | | | | | $ | 738,935 | | Equity in earnings of affiliated companies | | | | | | | | | | | 2,961 | | Gain on investments, net | | | | | | | | | | | 6,252 | | Post-retirement expense | | | | | | | | | | | (1,961) | | Interest and other financing expense, net | | | | | | | | | | | (85,781) | | Consolidated income before taxes | | | | | | | | | | $ | 660,406 | | | | | | | | | | | | | | | | | Six Months Ended | | | June 28, 2025 | (thousands) | | Global Components | | | Global ECS | | | Total | | Sales | | $ | 10,062,620 | | | $ | 4,331,344 | | | $ | 14,393,964 | | Cost of sales | | | 8,916,221 | | | | 3,855,094 | | | | 12,771,315 | | Gross profit | | | 1,146,399 | | | | 476,250 | | | | 1,622,649 | | Gross profit margin | | | 11.4 | % | | | 11.0 | % | | | 11.3 | % | Segment operating expenses (b) | | | 788,206 | | | | 301,967 | | | | 1,090,173 | | Segment operating income (c) | | $ | 358,193 | | | $ | 174,283 | | | $ | 532,476 | | Segment operating income margin | | | 3.6 | % | | | 4.0 | % | | | 3.7 | % | Reconciliation of segment operating income | | | | | | | | | | | | | Corporate operating expenses (d) | | | | | | | | | | | (183,337) | | Consolidated operating income | | | | | | | | | | $ | 349,139 | | Equity in earnings of affiliated companies | | | | | | | | | | | 661 | | Gain on investments, net | | | | | | | | | | | 104,116 | | Post-retirement expense | | | | | | | | | | | (1,286) | | Interest and other financing expense, net | | | | | | | | | | | (116,465) | | Consolidated income before taxes | | | | | | | | | | $ | 336,165 | | | | | | | | | | | | | | |
| (a) | Global ECS gross profit includes $26.6 million and $48.3 million in losses related to the underperformance of certain non-cancellable multi-year purchase obligations during the second quarter and first six months of 2026, respectively. |
| (b) | Segment operating expenses primarily include employee-related expenses and depreciation and amortization. |
| (c) | Global Components operating income includes $3.0 million and $5.2 million in inventory recoveries related to the wind down of a business for the second quarter and first six months of 2026, respectively, and $2.2 million and $4.6 million in inventory recoveries related to the wind down of a business for the second quarter and first six months of 2025, respectively. |
| (d) | Corporate unallocated operating expenses includes restructuring, integration, and other charges of $24.1 million and $60.8 million for the second quarter and first six months of 2026, respectively, and $21.9 million and $39.2 million for the second quarter and first six months of 2025, respectively. Refer to Note I – “Restructuring, Integration, and Other”. |
Total assets, by segment, are as follows: | | | | | | | | | July 4, | | December 31, | (thousands) | | 2026 | | 2025 | Total assets: | | | | | | | Global Components | | $ | 31,725,350 | | $ | 21,222,941 | Global ECS | | | 6,173,437 | | | 7,355,089 | Total segment assets | | $ | 37,898,787 | | $ | 28,578,030 | Other assets (a) | | | 477,894 | | | 500,108 | Consolidated assets | | $ | 38,376,681 | | $ | 29,078,138 |
| (a) | Other assets include Corporate unallocated assets. |
Long-lived assets by country are as follows: | | | | | | | | | July 4, | | December 31, | (thousands) | | 2026 | | 2025 | Long-lived assets: | | | | | | | France | | $ | 102,421 | | $ | 100,493 | Netherlands | | | 72,398 | | | 79,339 | Other | | | 222,017 | | | 233,740 | Total foreign | | $ | 396,836 | | $ | 413,572 | United States | | | 296,270 | | | 309,901 | Total | | $ | 693,106 | | $ | 723,473 |
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