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Segment Information
3 Months Ended
Sep. 30, 2011
Segment Information 
Segment Information

(10) Segment Information

The Company is a leading distributor of specialty technology products, providing value-added distribution sales to resellers in the specialty technology markets. The Company has two reporting segments, based on geographic location. The measure of segment profit is operating income, and the accounting policies of the segments are the same as those described in Note 2 of the notes to condensed consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2011.

 

North American Distribution

North American Distribution offers products for sale in four primary categories: (i) AIDC and POS equipment sold by the ScanSource POS and Barcoding sales unit, (ii) voice, data and converged communications equipment sold by the Catalyst Telecom sales unit, (iii) video conferencing, telephony, and communications products sold by the ScanSource Communications unit, (iv) physical security products and wireless infrastructure products sold by the ScanSource Security Distribution sales unit. These products are sold to more than 14,000 resellers and integrators of technology products that are geographically disbursed over the United States and Canada in a pattern that mirrors population concentration. No single account represented more than 6% of the Company's worldwide net sales for the quarters ended September 30, 2011 or 2010, respectively.

International Distribution

The international distribution segment sells to two geographic areas, Latin America aggregated with Europe, and offers AIDC and POS equipment as well as security and communications products to more than 16,000 resellers and integrators of technology products. Of this segment's customers, no single account represented more than 1% of the Company's worldwide net sales during the quarters ended September 30, 2011 or 2010, respectively.

Inter-segment sales consist primarily of sales by the North American distribution segment to the international distribution segment. All inter-segment revenues and profits have been eliminated in the accompanying condensed consolidated financial statements.

Selected financial information of each business segment is presented below:

 

     Quarter ended September 30,  
     2011     2010  
     (In thousands)  

Sales:

     

North American distribution

    $ 583,582      $ 501,364   

International distribution

      196,787        140,206   

Less intersegment sales

      (10,110 )      (7,040 ) 
  

 

 

    

 

 

  
   $ 770,259      $ 634,530   
  

 

 

    

 

 

  

Depreciation and amortization:

     

North American distribution

    $ 1,043      $ 1,134   

International distribution

      1,539        376   
  

 

 

    

 

 

  
   $ 2,582      $ 1,510   
  

 

 

    

 

 

  

Operating income:

     

North American distribution

    $ 28,404      $ 21,420   

International distribution

      3,223        3,428   
  

 

 

    

 

 

  
   $ 31,627      $ 24,848   
  

 

 

    

 

 

  

Capital expenditures:

     

North American distribution

    $ 2,190      $ 1,715   

International distribution

      149        136   
  

 

 

    

 

 

  
   $ 2,339      $ 1,851   
  

 

 

    

 

 

  

 

     September 30,
2011		      June 30,
2011		  
     (in thousands)  

Assets:

      

North American distribution

    $ 1,019,207       $ 958,825   

International distribution

      197,430         223,363   
  

 

 

     

 

 

  
   $ 1,216,637       $ 1,182,188