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Segment Information
 9 Months Ended
Mar. 31, 2012
Segment Information [Abstract]  
Segment Information

(9) Segment Information

The Company is a leading distributor of specialty technology products, providing value-added distribution sales to resellers. 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

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, video and converged communications equipment sold by the Catalyst Telecom and (iii) ScanSource Communications sales units and (iv) physical security 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 worldwide net sales for the quarters or nine months ended March 31, 2012 or 2011.

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 or nine months ended March 31, 2012 or 2011.

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 March 31,     Nine months ended March 31,  
     2012     2011     2012     2011  
     (In thousands)  

Sales:

         

North American distribution

    $ 541,049      $ 467,628      $ 1,699,106      $ 1,497,531   

International distribution

      178,038        151,419        594,587        452,394   

Less intersegment sales

      (11,204 )      (5,581 )      (32,866 )      (18,284 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ 707,883      $ 613,466      $ 2,260,827      $ 1,931,641   
  

 

 

    

 

 

    

 

 

    

 

 

  

Depreciation and amortization:

         

North American distribution

    $ 935      $ 1,000      $ 2,977      $ 3,161   

International distribution

      1,819        395        4,617        1,189   
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ 2,754      $ 1,395      $ 7,594      $ 4,350   
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating income:

         

North American distribution

    $ 21,471      $ 20,089      $ 77,501      $ 70,797   

International distribution

      14        5,391        7,699        13,069   
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ 21,485      $ 25,480      $ 85,200      $ 83,866   
  

 

 

    

 

 

    

 

 

    

 

 

  

Capital expenditures:

         

North American distribution

    $ 3,342      $ 4,354      $ 7,670      $ 9,879   

International distribution

      1,333        128        2,517        319   
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ 4,675      $ 4,482      $ 10,187      $ 10,198   
  

 

 

    

 

 

    

 

 

    

 

 

  
     March 31, 2012      June 30, 2011  
     (in thousands)  

Assets:

      

North American distribution

    $ 792,317       $ 785,057   

International distribution

      415,224         397,131   
  

 

 

     

 

 

  
   $ 1,207,541       $ 1,182,188   
  

 

 

     

 

 

  

In prior periods, the Company included its intercompany investment and funding arrangements related to foreign subsidiaries in its North American segment assets and the offsetting liabilities and elimination entries were inappropriately included as a reduction to the international segment's assets. The effect of this understated international segment assets. During the current period, the Company corrected its disclosure of assets by segment by eliminating entries related to intercompany investments and funding arrangements from both segments. Management has concluded that the correction 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 this adjustment on segment assets 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.