TD SYNNEX CORP Files 10-Q for Period Ending February 29, 2024

TL;DR

<b>TD SYNNEX CORP filed its quarterly report (10-Q) for the period ending February 29, 2024</b>.

AI Summary

TD SYNNEX CORP (SNX) filed a Quarterly Report (10-Q) with the SEC on April 4, 2024. TD SYNNEX CORP filed a 10-Q report for the period ending February 29, 2024. The filing covers the first quarter of fiscal year 2024. The company's fiscal year ends on November 30th. The filing was made on April 4, 2024. TD SYNNEX CORP was formerly known as SYNNEX CORP.

Why It Matters

For investors and stakeholders tracking TD SYNNEX CORP, this filing contains several important signals. This 10-Q filing provides investors with an update on the company's financial performance and position for the most recent quarter. Understanding the details within this report is crucial for assessing TD SYNNEX CORP's current operational health and future prospects.

Risk Assessment

Risk Level: low — TD SYNNEX CORP shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain any immediate red flags or significant deviations from typical reporting.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to understand the company's performance drivers and any emerging trends.

Key Numbers

• 2024-02-29 — Period End Date (10-Q filing)
• 2024-04-04 — Filing Date (10-Q filing)
• 2024-03-25 — Date as of change (10-Q filing)
• 2023-11-30 — Fiscal Year End (Company data)

Key Players & Entities

• TD SYNNEX CORP (company) — Filer
• SYNNEX CORP (company) — Former company name
• Apple Inc. (company) — Supplier concentration risk
• Customer 1 (company) — Customer concentration risk

FAQ

Risk Factors

• Supplier Concentration Risk [medium — market]: The company faces supplier concentration risk, specifically mentioning Apple Inc. as a significant supplier for the periods ending February 29, 2024, and February 28, 2023.
• Customer Concentration Risk [medium — market]: The company faces customer concentration risk, with 'Customer 1' being a significant customer for the periods ending February 29, 2024, and February 28, 2023.

Industry Context

TD SYNNEX CORP operates in the wholesale distribution of computer and peripheral equipment and software. This sector is characterized by complex supply chains and evolving technology.

Regulatory Implications

As a publicly traded company, TD SYNNEX CORP is subject to SEC regulations, including the requirement to file quarterly reports (10-Q) to ensure transparency and provide timely financial information to investors.

What Investors Should Do

1. Analyze the revenue and profitability trends for the reported quarter.
2. Assess the impact of supplier and customer concentration risks on the company's stability.
3. Review any disclosures related to debt, cash flow, and other financial health indicators.

Key Dates

• 2024-02-29: Period End Date — End of the reporting quarter for the 10-Q filing.
• 2024-04-04: Filing Date — Date the 10-Q report was officially filed with the SEC.
• 2021-11-02: Company Name Change — Date TD SYNNEX CORP was formed from the merger of SYNNEX CORP and Tech Data.

Year-Over-Year Comparison

This is the first 10-Q filing for the fiscal year 2024, providing an update from the previous fiscal year's filings.

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share SNX The New York Stock Exchan

Filing Documents

• snx-20240229.htm (10-Q) — 1131KB
• snxq1fy24-exx311.htm (EX-31.1) — 10KB
• snxq1fy24-exx312.htm (EX-31.2) — 10KB
• snxq1fy24-exx321.htm (EX-32.1) — 5KB
• ex104zitznerboardadvisorag.htm (EX-10.4) — 17KB
• snxq1fy24-ex103.htm (EX-10.3) — 981KB
• snx-20240229_g1.jpg (GRAPHIC) — 29KB
• 0001177394-24-000038.txt (&nbsp;) — 7755KB
• snx-20240229.xsd (EX-101.SCH) — 51KB
• snx-20240229_cal.xml (EX-101.CAL) — 47KB
• snx-20240229_def.xml (EX-101.DEF) — 276KB
• snx-20240229_lab.xml (EX-101.LAB) — 616KB
• snx-20240229_pre.xml (EX-101.PRE) — 463KB
• snx-20240229_htm.xml (XML) — 843KB

Financial Statements

Financial Statements 3 Consolidated Balance Sheets 3 Consolidated Statements of Operations 4 Consolidated Statements of Comprehensive Income 5 Consolidated Statements of Stockholders' Equity 6 Consolidated Statements of Cash Flows 7 Notes to the Consolidated Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 27 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 41 Item 4.

Controls and Procedures

Controls and Procedures 42 PART II OTHER INFORMATION 43 Item 1A.

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 43 Item 5. Other Information 45 Item 6. Exhibits 45

Signatures

Signatures 46 2 Table of Contents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

ITEM 1. Financial Statements TD SYNNEX CORPORATION CONSOLIDATED BALANCE SHEETS (currency and share amounts in thousands, except par value) (unaudited) February 29, 2024 November 30, 2023 ASSETS Current assets: Cash and cash equivalents $ 1,030,946 $ 1,033,776 Accounts receivable, net 8,902,803 10,297,814 Receivables from vendors, net 914,910 964,334 Inventories 7,091,146 7,146,274 Other current assets 640,901 642,238 Total current assets 18,580,706 20,084,436 Property and equipment, net 459,093 450,024 Goodwill 3,902,232 3,904,170 Intangible assets, net 4,162,437 4,244,314 Other assets, net 695,561 729,870 Total assets $ 27,800,029 $ 29,412,814 LIABILITIES AND EQUITY Current liabilities: Borrowings, current $ 926,739 $ 983,585 Accounts payable 12,372,749 13,347,281 Other accrued liabilities 1,955,444 2,407,896 Total current liabilities 15,254,932 16,738,762 Long-term borrowings 3,082,367 3,099,193 Other long-term liabilities 493,031 498,656 Deferred tax liabilities 867,524 893,021 Total liabilities 19,697,854 21,229,632 Commitments and contingencies ( Note 1 4 ) Stockholders' equity: Preferred stock, $ 0.001 par value, 5,000 shares authorized, no shares issued or outstanding — — Common stock, $ 0.001 par value, 200,000 shares authorized, 99,012 shares issued as of February 29, 2024 and November 30, 2023 99 99 Additional paid-in capital 7,438,820 7,435,274 Treasury stock, 12,171 and 10,343 shares as of February 29, 2024 and November 30, 2023, respectively ( 1,138,919 ) ( 949,714 ) Accumulated other comprehensive loss ( 539,072 ) ( 507,248 ) Retained earnings 2,341,247 2,204,771 Total stockholders' equity 8,102,175 8,183,182 Total liabilities and equity $ 27,800,029 $ 29,412,814 (Amounts may not add or compute due to rounding) The accompanying Notes are an integral part of these Consolidated Financial Statements (unaudited). 3 Table of Contents TD SYNNEX CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (currency

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the three months ended February 29, 2024 and February 28, 2023 ( Except per share amounts or as otherwise indicated, currency and share amounts in thousands ) (unaudited) NOTE 1— ORGANIZATION AND BASIS OF PRESENTATION: TD SYNNEX Corporation (together with its subsidiaries, herein referred to as "TD SYNNEX", "SYNNEX" or the "Company") is a leading global distributor and solutions aggregator for the information technology ("IT") ecosystem, headquartered in Fremont, California and Clearwater, Florida and has operations in North and South America, Europe and Asia-Pacific and Japan. The Company operates in three reportable segments based on its geographic regions: the Americas, Europe and Asia-Pacific and Japan ("APJ"). The Consolidated Financial Statements include the accounts of the Company, its wholly-owned subsidiaries, majority-owned subsidiaries in which no substantive participating rights are held by minority stockholders and variable interest entities if the Company is the primary beneficiary. All intercompany accounts and transactions have been eliminated. The Company operates on a fiscal year that ends on November 30. The accompanying interim unaudited Consolidated Financial Statements as of February 29, 2024 and for the three months ended February 29, 2024 and February 28, 2023 have been prepared by the Company, without audit, in accordance with the rules and regulations of the United States ("U.S.") Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles ("GAAP") in the United States have been condensed or omitted in accordance with such rules and regulations. In the opinion of management, the accompanying unaudited Consolidated Financial Statements reflect all adjustments, consisting only of normal recurring adjustments, necessary to state fairly the financial po

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the three months ended February 29, 2024 and February 28, 2023 ( Except per share amounts or as otherwise indicated, currency and share amounts in thousands ) (unaudited) Accounts receivable include amounts due from customers, including related party customers. Receivables from vendors, net, includes amounts due from original equipment manufacturer ("OEM") vendors primarily in the technology industry. The Company performs ongoing credit evaluations of its customers' financial condition and limits the amount of credit extended when deemed necessary, but generally requires no collateral. The Company also maintains allowances for expected credit losses. In estimating the required allowances, the Company takes into consideration the overall quality and aging of its receivable portfolio, the existence of credit insurance and specifically identified customer and vendor risks. The following table provides revenue generated from products purchased from vendors that exceeded 10% of our consolidated revenue for the periods indicated (as a percent of consolidated revenue): Three Months Ended February 29, 2024 February 28, 2023 Apple, Inc. 12 % 11 % One customer accounted for 10 % and 11 % of the Company's total revenue during the three months ended February 29, 2024 and February 28, 2023, respectively. As of February 29, 2024 and November 30, 2023, no single customer comprised more than 10% of the consolidated accounts receivable balance. Accounts Receivable The Company maintains an allowance for doubtful accounts as an estimate to cover the future expected credit losses resulting from uncertainty regarding collections from customers or OEM vendors to make payments for outstanding balances. In estimating the required allowance, the Company takes into consideration historical credit losses, current conditions and reasonable and supportable forecasts. Adjustments to historical loss information are made for differences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the three months ended February 29, 2024 and February 28, 2023 ( Except per share amounts or as otherwise indicated, currency and share amounts in thousands ) (unaudited) The Company recognizes revenues from the sale of IT hardware and software as control is transferred to customers, which is at the point in time when the product is shipped or delivered. The Company accounts for a contract with a customer when it has written approval, the contract is committed, the rights of the parties, including payment terms, are identified, the contract has commercial substance and consideration is probable of collection. Binding purchase orders from customers together with agreement to the Company's terms and conditions of sale by way of an executed agreement or other signed documents are considered to be the contract with a customer. Products sold by the Company are delivered via shipment from the Company's facilities, drop-shipment directly from the vendor, or by electronic delivery of software products. In situations where arrangements include customer acceptance provisions, revenue is recognized when the Company can objectively verify the products comply with specifications underlying acceptance and the customer has control of the products. Revenue is presented net of taxes collected from customers and remitted to government authorities. The Company generally invoices a customer upon shipment, or in accordance with specific contractual provisions. Payments are due as per contract terms and do not contain a significant financing component. In relation to product support, supply chain management and other services performed by the Company, revenue is recognized over time as the services are performed. Service revenues represents less than 10 % of the total revenue for the periods presented. Provisions for sales returns and allowances are estimated based on historical data and are recorded concurrently with the recognition o

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the three months ended February 29, 2024 and February 28, 2023 ( Except per share amounts or as otherwise indicated, currency and share amounts in thousands ) (unaudited) Recently Issued Accounting Pronouncements In November 2023, the FASB issued an accounting standards update, ASU 2023-07, which requires the following enhanced segment disclosures on an annual and interim basis: (1) significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, (2) other segment items by reportable segment and a description of its composition, and (3) the title of the chief operating decision maker, an explanation of how they use the reported measures of segment profit/loss in assessing segment performance and decide how to allocate resources, as well as clarifications if they use more than one measure of a segment's profit or loss in assessing segment performance. The amendments in this ASU are effective for annual periods beginning after December 15, 2023, which for the Company would be for the fiscal year ending November 30, 2025, and for subsequent interim periods. Early adoption is permitted. The Company is currently evaluating the impact the new accounting standard will have on its segment reporting disclosures in the notes to the consolidated financial statements. In December 2023, the FASB issued an accounting standards update, ASU 2023-09, which requires enhanced income tax disclosures. The enhanced disclosures required include disclosure of specific categories and disaggregation of information in the rate reconciliation table. The ASU also requires disclosure of disaggregated information related to income taxes paid, income or loss from continuing operations before income tax expense or benefit, and income tax expense or benefit from continuing operations. The amendments in this ASU are effective for annual periods begin

View Full Filing

View this 10-Q filing on SEC EDGAR