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Segment Information
 3 Months Ended
Sep. 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. 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 the notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2012.

North American Distribution

The North American distribution segment markets AIDC and POS products through its ScanSource POS and Barcoding sales unit; voice, data, video and converged communications equipment through its Catalyst Telecom sales unit; video conferencing, telephony, and communications products through its ScanSource Communications unit; and electronic security products and wireless infrastructure products through its ScanSource Security sales unit. The Company serves more than 14,500 resellers and integrators of technology products in the United States and Canada. No single account represented more than 5% of the Company’s worldwide net sales for the quarters ended September 30, 2012 or 2011.

International Distribution

The international distribution segment markets AIDC, POS, communications and security products as follows: ScanSource Latin America markets AIDC, POS, communications and security products; ScanSource Europe markets AIDC and POS products, while communication products are marketed through its ScanSource Communications sales unit in Europe. The Company serves more than 15,500 resellers and integrators of technology products in Europe and Latin America. 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, 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 reporting segment is presented as follows:

 
Quarter ended
 
September 30,
 
2012
 
2011
 
(In thousands)
Sales:
 
 
 
North American distribution
$
565,298

 
$
583,582

International distribution
187,792

 
196,787

Less intersegment sales
(19,485
)
 
(10,110
)
 
$
733,605

 
$
770,259

Depreciation and amortization:
 
 
 
North American distribution
$
1,008

 
$
1,043

International distribution
1,306

 
1,539

 
$
2,314

 
$
2,582

Operating income:
 
 
 
North American distribution
$
24,983

 
$
29,274

International distribution
1,232

 
2,353

 
$
26,215

 
$
31,627

Capital expenditures:
 
 
 
North American distribution
$
1,889

 
$
2,190

International distribution
117

 
149

 
$
2,006

 
$
2,339


 
September 30, 2012
 
June 30, 2012
 
(in thousands)
Assets:
 
 
 
North American distribution
$
799,858

 
$
813,889

International distribution
408,232

 
387,917

 
$
1,208,090

 
$
1,201,806



In the prior year, the Company included an erroneous shared service expense allocation from the North American segment to the international segment. The effect of this allocation understated the North American segment's operating income and overstated the international segment's operating income. During the current period, the Company corrected its disclosure of operating income by segment by adjusting the prior year quarter's operating income by segment for the correct allocation. Management has concluded that the correction is immaterial and, accordingly, previous filings have not been revised. However, segment operating income related to the prior year quarter presented herein has been adjusted by the correct shared service expense allocation. The effect of this adjustment on segment operating income listed for the quarter ended September 30, 2011 was to increase the North American segment's operating income by $0.9 million, from $28.4 million as previously disclosed to $29.3 million and to decrease the international segment's operating income by $0.9 million, from $3.2 million as previously disclosed to $2.4 million.