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Segment Information
 12 Months Ended
Jun. 30, 2012
Segment Reporting, Measurement Disclosures [Abstract]  
Segment Information
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.
North American Distribution
The North American distribution segment 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, and (iv) electronic security products and wireless infrastructure products sold by the ScanSource Security sales unit. These products are sold to more than 14,500 resellers and integrators of technology products that are geographically dispersed over the United States and Canada in a pattern that mirrors population concentration. No single account represented more than 6% of the Company’s consolidated net sales for the fiscal years ended June 30, 2012, 2011, and 2010, respectively.
International Distribution
The international distribution segment sells to two geographic areas, Latin America aggregated with Europe, offers AIDC and POS equipment as well as communications products to more than 15,500 resellers and integrators of technology products. Additionally, the Company offers security products in Latin America. Of this segment’s customers, no single account represented more than 1% of the Company’s consolidated net sales during the fiscal years ended June 30, 2012, 2011, and 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 Consolidated Financial Statements.
Selected financial information for each business segment is presented below:
 
Fiscal Year Ended June 30,
 
2012
 
2011
 
2010
 
(in thousands)
Sales:
 
 
 
 
 
North American distribution
$
2,285,342

 
$
2,048,767

 
$
1,688,663

International distribution
778,837

 
643,863

 
448,967

Less intersegment sales
(48,883
)
 
(26,099
)
 
(22,651
)
 
$
3,015,296

 
$
2,666,531

 
$
2,114,979

Depreciation and amortization:
 
 
 
 
 
North American distribution
$
3,960

 
$
4,246

 
$
4,730

International distribution
5,962

 
2,416

 
1,334

 
$
9,922

 
$
6,662

 
$
6,064

Operating income:
 
 
 
 
 
North American distribution
$
104,044

 
$
94,932

 
$
64,342

International distribution
9,472

 
18,177

 
11,434

 
$
113,516

 
$
113,109

 
$
75,776

Assets:
 
 
 
 
 
North American distribution
$
813,889

 
$
785,057

 
$
670,467

International distribution
387,917

 
397,131

 
189,283

 
$
1,201,806

 
$
1,182,188

 
$
859,750

Capital expenditures:
 
 
 
 
 
North American distribution
$
9,789

 
$
14,366

 
$
5,344

International distribution
3,001

 
503

 
262

 
$
12,790

 
$
14,869

 
$
5,606


In prior periods, the Company inappropriately included its intercompany investment and funding arrangements related to foreign subsidiaries in its North American segment assets with the offsetting liabilities and elimination entries included as a reduction to the international segment's assets. This resulted in the understatement of international segment assets and an overstatement of North American segment assets. During the current period, the Company corrected its disclosure of assets by segment by eliminating intercompany investments and funding arrangements from both segments. Management concluded that the correction of prior periods is immaterial and, accordingly, previous filings have not been revised. However, segment assets related to prior periods presented herein have been adjusted to remove intercompany investment and funding arrangements.
The effect of the segment asset adjustments listed above as of June 30, 2011 was to reduce North American segment assets by $173.7 million, from $958.8 million as previously disclosed to $785.1 million and to increase international segment assets by $173.7 million, from $223.4 million as previously disclosed to $397.1 million. The effect of this adjustment on segment assets listed above as of June 30, 2010 was to reduce North American segment assets by $114.1 million from $784.6 million as previously disclosed to $670.5 million and to increase international segment assets by $114.1 million from $75.2 million as previously disclosed to $189.3 million.
Also in the prior fiscal year, the Company inappropriately excluded shared operating expense allocations from the international distribution segment. This resulted in the overstatement of the international segment's operating income and an understatement of the North American segment's operating income. Management concluded that the correction of the prior period is immaterial and, accordingly, previous filings have not been revised. However, segment operating income related to the prior period presented herein has been adjusted to allocate shared operating expenses to the international distribution segment. The effect of this adjustment on segment operating income listed above for the year ended June 30, 2011 was to increase North American segment operating income by $4.5 million from $90.4 million as previously disclosed to $94.9 million and to decrease international segment operating income by $4.5 million from $22.7 million to $18.2 million.
Selected financial information by product category is presented below:
 
Fiscal Year Ended June 30,
 
2012
 
2011
 
2010
 
(in thousands)
Sales by Product Category:
 
 
 
 
 
POS, barcoding and security products
$
1,837,307

 
$
1,615,461

 
$
1,300,525

Communication products
1,177,989

 
1,051,070

 
814,454

 
$
3,015,296

 
$
2,666,531

 
$
2,114,979