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Segment Information | 9 Months Ended
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Sep. 30, 2021
Segment Reporting [Abstract] |
Segment Information | 9.Segment Information We operate in three reportable geographic operating segments: North America; EMEA; and APAC. Our offerings in North America and certain countries in EMEA and APAC include IT hardware, software and services, including cloud solutions. Our offerings in the remainder of our EMEA and APAC segments are largely software and certain software-related services and cloud solutions. In the following table, revenue is disaggregated by our reportable operating segments, which are primarily defined by their related geographies, as well as by major product offering, by major client group and by recognition on either a gross basis as a principal in the arrangement, or on a net basis as an agent, for the three and nine months ended September 30, 2021 and 2020 (in thousands):
|  | Three Months Ended September 30, 2021 |
|  | North America |  |  | EMEA |  |  | APAC |  |  | Consolidated |
Major Offerings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hardware |  | $ | 1,418,335 |  |  | $ | 160,645 |  |  | $ | 13,515 |  |  | $ | 1,592,495 |
Software |  |  | 338,440 |  |  |  | 178,868 |  |  |  | 14,436 |  |  | $ | 531,744 |
Services |  |  | 263,101 |  |  |  | 41,935 |  |  |  | 18,246 |  |  | $ | 323,282 |
|  | $ | 2,019,876 |  |  | $ | 381,448 |  |  | $ | 46,197 |  |  | $ | 2,447,521 |
Major Client Groups |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Large Enterprise / Corporate |  | $ | 1,447,246 |  |  | $ | 276,292 |  |  | $ | 21,947 |  |  | $ | 1,745,485 |
Commercial |  |  | 384,458 |  |  |  | 13,209 |  |  |  | 17,277 |  |  |  | 414,944 |
Public Sector |  |  | 188,172 |  |  |  | 91,947 |  |  |  | 6,973 |  |  |  | 287,092 |
|  | $ | 2,019,876 |  |  | $ | 381,448 |  |  | $ | 46,197 |  |  | $ | 2,447,521 |
Revenue Recognition based on acting as Principal or Agent in the Transaction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross revenue recognition (Principal) |  | $ | 1,926,059 |  |  | $ | 358,981 |  |  | $ | 39,849 |  |  | $ | 2,324,889 |
Net revenue recognition (Agent) |  |  | 93,817 |  |  |  | 22,467 |  |  |  | 6,348 |  |  |  | 122,632 |
|  | $ | 2,019,876 |  |  | $ | 381,448 |  |  | $ | 46,197 |  |  | $ | 2,447,521 |
|  | Three Months Ended September 30, 2020 |
|  | North America |  |  | EMEA |  |  | APAC |  |  | Consolidated |
Major Offerings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hardware |  | $ | 1,028,045 |  |  | $ | 138,685 |  |  | $ | 6,421 |  |  | $ | 1,173,151 |
Software |  |  | 306,925 |  |  |  | 165,301 |  |  |  | 16,191 |  |  |  | 488,417 |
Services |  |  | 223,198 |  |  |  | 37,294 |  |  |  | 14,418 |  |  |  | 274,910 |
|  | $ | 1,558,168 |  |  | $ | 341,280 |  |  | $ | 37,030 |  |  | $ | 1,936,478 |
Major Client Groups |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Large Enterprise / Corporate |  | $ | 1,043,303 |  |  | $ | 242,925 |  |  | $ | 15,416 |  |  | $ | 1,301,644 |
Commercial |  |  | 312,080 |  |  |  | 13,647 |  |  |  | 16,197 |  |  |  | 341,924 |
Public Sector |  |  | 202,785 |  |  |  | 84,708 |  |  |  | 5,417 |  |  |  | 292,910 |
|  | $ | 1,558,168 |  |  | $ | 341,280 |  |  | $ | 37,030 |  |  | $ | 1,936,478 |
Revenue Recognition based on acting as Principal or Agent in the Transaction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross revenue recognition (Principal) |  | $ | 1,477,716 |  |  | $ | 320,445 |  |  | $ | 31,256 |  |  | $ | 1,829,417 |
Net revenue recognition (Agent) |  |  | 80,452 |  |  |  | 20,835 |  |  |  | 5,774 |  |  |  | 107,061 |
|  | $ | 1,558,168 |  |  | $ | 341,280 |  |  | $ | 37,030 |  |  | $ | 1,936,478 |
|  | Nine Months Ended September 30, 2021 |
|  | North America |  |  | EMEA |  |  | APAC |  |  | Consolidated |
Major Offerings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hardware |  | $ | 3,696,594 |  |  | $ | 527,022 |  |  | $ | 34,848 |  |  | $ | 4,258,464 |
Software |  |  | 978,987 |  |  |  | 598,277 |  |  |  | 70,709 |  |  | $ | 1,647,973 |
Services |  |  | 758,705 |  |  |  | 152,359 |  |  |  | 52,589 |  |  | $ | 963,653 |
|  | $ | 5,434,286 |  |  | $ | 1,277,658 |  |  | $ | 158,146 |  |  | $ | 6,870,090 |
Major Client Groups |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Large Enterprise / Corporate |  | $ | 3,838,627 |  |  | $ | 883,044 |  |  | $ | 66,686 |  |  | $ | 4,788,357 |
Commercial |  |  | 1,091,247 |  |  |  | 50,908 |  |  |  | 46,054 |  |  |  | 1,188,209 |
Public Sector |  |  | 504,412 |  |  |  | 343,706 |  |  |  | 45,406 |  |  |  | 893,524 |
|  | $ | 5,434,286 |  |  | $ | 1,277,658 |  |  | $ | 158,146 |  |  | $ | 6,870,090 |
Revenue Recognition based on acting as Principal or Agent in the Transaction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross revenue recognition (Principal) |  | $ | 5,157,086 |  |  | $ | 1,190,283 |  |  | $ | 137,547 |  |  | $ | 6,484,916 |
Net revenue recognition (Agent) |  |  | 277,200 |  |  |  | 87,375 |  |  |  | 20,599 |  |  |  | 385,174 |
|  | $ | 5,434,286 |  |  | $ | 1,277,658 |  |  | $ | 158,146 |  |  | $ | 6,870,090 |
|  | Nine Months Ended September 30, 2020 |
|  | North America |  |  | EMEA |  |  | APAC |  |  | Consolidated |
Major Offerings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hardware |  | $ | 3,180,501 |  |  | $ | 466,909 |  |  | $ | 21,001 |  |  | $ | 3,668,411 |
Software |  |  | 898,290 |  |  |  | 553,164 |  |  |  | 62,952 |  |  |  | 1,514,406 |
Services |  |  | 692,905 |  |  |  | 132,110 |  |  |  | 41,432 |  |  |  | 866,447 |
|  | $ | 4,771,696 |  |  | $ | 1,152,183 |  |  | $ | 125,385 |  |  | $ | 6,049,264 |
Major Client Groups |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Large Enterprise / Corporate |  | $ | 3,227,613 |  |  | $ | 808,360 |  |  | $ | 44,543 |  |  | $ | 4,080,516 |
Commercial |  |  | 1,030,540 |  |  |  | 44,567 |  |  |  | 45,413 |  |  |  | 1,120,520 |
Public Sector |  |  | 513,543 |  |  |  | 299,256 |  |  |  | 35,429 |  |  |  | 848,228 |
|  | $ | 4,771,696 |  |  | $ | 1,152,183 |  |  | $ | 125,385 |  |  | $ | 6,049,264 |
Revenue Recognition based on acting as Principal or Agent in the Transaction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross revenue recognition (Principal) |  | $ | 4,530,152 |  |  | $ | 1,071,910 |  |  | $ | 108,073 |  |  | $ | 5,710,135 |
Net revenue recognition (Agent) |  |  | 241,544 |  |  |  | 80,273 |  |  |  | 17,312 |  |  |  | 339,129 |
|  | $ | 4,771,696 |  |  | $ | 1,152,183 |  |  | $ | 125,385 |  |  | $ | 6,049,264 |
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 for the three and nine months ended September 30, 2021 or 2020. 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 consider to be a reasonable reflection of the utilization of services provided to or benefits received by the operating segments. The following tables present our results of operations by reportable operating segment for the periods indicated (in thousands):
|  | Three Months Ended September 30, 2021 |
|  | North America |  |  | EMEA |  |  | APAC |  |  | Consolidated |
Net sales: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Products |  | $ | 1,756,775 |  |  | $ | 339,513 |  |  | $ | 27,951 |  |  | $ | 2,124,239 |
Services |  |  | 263,101 |  |  |  | 41,935 |  |  |  | 18,246 |  |  |  | 323,282 |
Total net sales |  |  | 2,019,876 |  |  |  | 381,448 |  |  |  | 46,197 |  |  |  | 2,447,521 |
Costs of goods sold: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Products |  |  | 1,595,184 |  |  |  | 310,242 |  |  |  | 24,670 |  |  |  | 1,930,096 |
Services |  |  | 128,710 |  |  |  | 15,759 |  |  |  | 8,411 |  |  |  | 152,880 |
Total costs of goods sold |  |  | 1,723,894 |  |  |  | 326,001 |  |  |  | 33,081 |  |  |  | 2,082,976 |
Gross profit |  |  | 295,982 |  |  |  | 55,447 |  |  |  | 13,116 |  |  |  | 364,545 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Selling and administrative expenses |  |  | 219,714 |  |  |  | 50,062 |  |  |  | 9,222 |  |  |  | 278,998 |
Severance and restructuring expenses |  |  | 1,999 |  |  |  | 397 |  |  |  | — |  |  |  | 2,396 |
Earnings from operations |  | $ | 74,269 |  |  | $ | 4,988 |  |  | $ | 3,894 |  |  | $ | 83,151 |
|  | Three Months Ended September 30, 2020 |
|  | North America |  |  | EMEA |  |  | APAC |  |  | Consolidated |
Net sales: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Products |  | $ | 1,334,970 |  |  | $ | 303,986 |  |  | $ | 22,612 |  |  | $ | 1,661,568 |
Services |  |  | 223,198 |  |  |  | 37,294 |  |  |  | 14,418 |  |  |  | 274,910 |
Total net sales |  |  | 1,558,168 |  |  |  | 341,280 |  |  |  | 37,030 |  |  |  | 1,936,478 |
Costs of goods sold: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Products |  |  | 1,202,743 |  |  |  | 277,025 |  |  |  | 20,544 |  |  |  | 1,500,312 |
Services |  |  | 108,257 |  |  |  | 13,955 |  |  |  | 6,391 |  |  |  | 128,603 |
Total costs of goods sold |  |  | 1,311,000 |  |  |  | 290,980 |  |  |  | 26,935 |  |  |  | 1,628,915 |
Gross profit |  |  | 247,168 |  |  |  | 50,300 |  |  |  | 10,095 |  |  |  | 307,563 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Selling and administrative expenses |  |  | 192,033 |  |  |  | 45,438 |  |  |  | 7,684 |  |  |  | 245,155 |
Severance and restructuring expenses |  |  | 773 |  |  |  | 19 |  |  |  | 16 |  |  |  | 808 |
Acquisition and integration related expenses |  |  | 118 |  |  |  | — |  |  |  | — |  |  |  | 118 |
Earnings from operations |  | $ | 54,244 |  |  | $ | 4,843 |  |  | $ | 2,395 |  |  | $ | 61,482 |
|  | Nine Months Ended September 30, 2021 |
|  | North America |  |  | EMEA |  |  | APAC |  |  | Consolidated |
Net sales: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Products |  | $ | 4,675,581 |  |  | $ | 1,125,299 |  |  | $ | 105,557 |  |  | $ | 5,906,437 |
Services |  |  | 758,705 |  |  |  | 152,359 |  |  |  | 52,589 |  |  |  | 963,653 |
Total net sales |  |  | 5,434,286 |  |  |  | 1,277,658 |  |  |  | 158,146 |  |  |  | 6,870,090 |
Costs of goods sold: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Products |  |  | 4,237,417 |  |  |  | 1,033,976 |  |  |  | 95,690 |  |  |  | 5,367,083 |
Services |  |  | 368,501 |  |  |  | 48,671 |  |  |  | 23,133 |  |  |  | 440,305 |
Total costs of goods sold |  |  | 4,605,918 |  |  |  | 1,082,647 |  |  |  | 118,823 |  |  |  | 5,807,388 |
Gross profit |  |  | 828,368 |  |  |  | 195,011 |  |  |  | 39,323 |  |  |  | 1,062,702 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Selling and administrative expenses |  | $ | 640,420 |  |  | $ | 159,466 |  |  | $ | 27,389 |  |  |  | 827,275 |
Severance and restructuring expenses |  |  | (4,361 | ) |  |  | 1,135 |  |  |  | 9 |  |  |  | (3,217 | )
Earnings from operations |  | $ | 192,309 |  |  | $ | 34,410 |  |  | $ | 11,925 |  |  | $ | 238,644 |
|  | Nine Months Ended September 30, 2020 |
|  | North America |  |  | EMEA |  |  | APAC |  |  | Consolidated |
Net sales: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Products |  | $ | 4,078,791 |  |  | $ | 1,020,073 |  |  | $ | 83,953 |  |  | $ | 5,182,817 |
Services |  |  | 692,905 |  |  |  | 132,110 |  |  |  | 41,432 |  |  |  | 866,447 |
Total net sales |  |  | 4,771,696 |  |  |  | 1,152,183 |  |  |  | 125,385 |  |  |  | 6,049,264 |
Costs of goods sold: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Products |  |  | 3,678,118 |  |  |  | 933,053 |  |  |  | 77,326 |  |  |  | 4,688,497 |
Services |  |  | 344,586 |  |  |  | 41,876 |  |  |  | 17,017 |  |  |  | 403,479 |
Total costs of goods sold |  |  | 4,022,704 |  |  |  | 974,929 |  |  |  | 94,343 |  |  |  | 5,091,976 |
Gross profit |  |  | 748,992 |  |  |  | 177,254 |  |  |  | 31,042 |  |  |  | 957,288 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Selling and administrative expenses |  |  | 590,549 |  |  |  | 143,859 |  |  |  | 22,190 |  |  |  | 756,598 |
Severance and restructuring expenses |  |  | 7,799 |  |  |  | 2,118 |  |  |  | 45 |  |  |  | 9,962 |
Acquisition-related expenses |  |  | 1,991 |  |  |  | 204 |  |  |  | — |  |  |  | 2,195 |
Earnings from operations |  | $ | 148,653 |  |  | $ | 31,073 |  |  | $ | 8,807 |  |  | $ | 188,533 |
The following is a summary of our total assets by reportable operating segment (in thousands):
|  | September 30, 2021 |  |  | December 31, 2020 |
North America |  | $ | 4,690,727 |  |  | $ | 4,837,155 |
EMEA |  |  | 717,883 |  |  |  | 735,771 |
APAC |  |  | 124,908 |  |  |  | 155,761 |
Corporate assets and intercompany eliminations, net |  |  | (1,098,140 | ) |  |  | (1,417,955 | )
Total assets |  | $ | 4,435,378 |  |  | $ | 4,310,732 |
We recorded the following pre-tax amounts, by reportable operating segment, for depreciation and amortization in the accompanying consolidated financial statements (in thousands):
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Depreciation and amortization of property and equipment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 4,376 |  |  | $ | 5,907 |  |  | $ | 14,047 |  |  | $ | 17,559 |
EMEA |  |  | 1,141 |  |  |  | 1,269 |  |  |  | 3,575 |  |  |  | 3,846 |
APAC |  |  | 148 |  |  |  | 143 |  |  |  | 432 |  |  |  | 415 |
|  |  | 5,665 |  |  |  | 7,319 |  |  |  | 18,054 |  |  |  | 21,820 |
Amortization of intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
North America |  |  | 7,372 |  |  |  | 8,730 |  |  |  | 22,229 |  |  |  | 27,594 |
EMEA |  |  | 494 |  |  |  | 585 |  |  |  | 1,491 |  |  |  | 1,625 |
APAC |  |  | 122 |  |  |  | 118 |  |  |  | 377 |  |  |  | 336 |
|  |  | 7,988 |  |  |  | 9,433 |  |  |  | 24,097 |  |  |  | 29,555 |
Total |  | $ | 13,653 |  |  | $ | 16,752 |  |  | $ | 42,151 |  |  | $ | 51,375 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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