TD SYNNEX Corp Files Q3 2024 10-Q

TL;DR

TD SYNNEX Q3 10-Q filed. Financials look steady, watch for segment performance.

AI Summary

TD SYNNEX CORP filed its 10-Q for the period ending August 31, 2024. The filing details financial performance and operational updates for the third quarter. Key financial data and business segment information are presented, reflecting the company's ongoing activities in the technology distribution and integration sector.

Why It Matters

This filing provides investors with crucial insights into TD SYNNEX's financial health and operational performance during the third quarter, impacting investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures.

Key Numbers

• 2024-08-31 — Reporting Period End (End of the third fiscal quarter for 2024.)
• 2024-10-03 — Filing Date (Date the 10-Q was submitted to the SEC.)

Key Players & Entities

• TD SYNNEX CORP (company) — Filer
• 20240831 (date) — Reporting Period End Date
• 20241003 (date) — Filing Date
• SYNNEX CORP (company) — Former Company Name

FAQ

Key Financial Figures

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

Filing Documents

• snx-20240831.htm (10-Q) — 1395KB
• ex-103xsecuritizationamend.htm (EX-10.3) — 1522KB
• snxq3fy24-exx311.htm (EX-31.1) — 10KB
• snxq3fy24-exx312.htm (EX-31.2) — 10KB
• snxq3fy24-exx321.htm (EX-32.1) — 5KB
• snx-20240831_g1.jpg (GRAPHIC) — 29KB
• 0001177394-24-000075.txt ( ) — 8924KB
• snx-20240831.xsd (EX-101.SCH) — 47KB
• snx-20240831_cal.xml (EX-101.CAL) — 51KB
• snx-20240831_def.xml (EX-101.DEF) — 252KB
• snx-20240831_lab.xml (EX-101.LAB) — 619KB
• snx-20240831_pre.xml (EX-101.PRE) — 447KB
• snx-20240831_htm.xml (XML) — 1006KB

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 44 Item 4.

Controls and Procedures

Controls and Procedures 44 PART II OTHER INFORMATION 45 Item 1A.

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 45 Item 5. Other Information 45 Item 6. Exhibits 46

Signatures

Signatures 47 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) August 31, 2024 November 30, 2023 ASSETS Current assets: Cash and cash equivalents $ 853,923 $ 1,033,776 Accounts receivable, net 10,032,404 10,297,814 Receivables from vendors, net 863,382 964,334 Inventories 7,674,438 7,146,274 Other current assets 633,636 642,238 Total current assets 20,057,783 20,084,436 Property and equipment, net 477,419 450,024 Goodwill 3,951,771 3,904,170 Intangible assets, net 4,066,707 4,244,314 Other assets, net 653,867 729,870 Total assets $ 29,207,547 $ 29,412,814 LIABILITIES AND EQUITY Current liabilities: Borrowings, current $ 314,198 $ 983,585 Accounts payable 13,873,238 13,347,281 Other accrued liabilities 1,802,958 2,407,896 Total current liabilities 15,990,394 16,738,762 Long-term borrowings 3,736,004 3,099,193 Other long-term liabilities 450,364 498,656 Deferred tax liabilities 866,702 893,021 Total liabilities 21,043,464 21,229,632 Commitments and contingencies ( Note 13) 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 both August 31, 2024 and November 30, 2023 99 99 Additional paid-in capital 7,458,088 7,435,274 Treasury stock, 14,742 and 10,343 shares as of August 31, 2024 and November 30, 2023, respectively ( 1,436,868 ) ( 949,714 ) Accumulated other comprehensive loss ( 452,241 ) ( 507,248 ) Retained earnings 2,595,005 2,204,771 Total stockholders' equity 8,164,083 8,183,182 Total liabilities and equity $ 29,207,547 $ 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 and

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the three and nine months ended August 31, 2024 and 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 August 31, 2024 and for the three and nine months ended August 31, 2024 and August 31, 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 U.S. 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 position of th

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the three and nine months ended August 31, 2024 and 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 Nine Months Ended August 31, 2024 August 31, 2023 August 31, 2024 August 31, 2023 Apple, Inc. 11 % 10 % 12 % 10 % Cisco Systems, Inc. N/A ( 1 ) 10 % N/A ( 1 ) N/A ( 1 ) HP Inc. N/A ( 1 ) 10 % N/A ( 1 ) N/A ( 1 ) _________________________ ( 1) Revenue generated from products purchased from this vendor was less than 10% of consolidated revenue during the period presented. One customer accounted for 13 % and 12 % of the Company's total revenue during the three and nine months ended August 31, 2024, respectively. One customer accounted for 11 % of the Company's total revenue during both the three and nine months ended August 31, 2023. As of August 31, 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 do

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the three and nine months ended August 31, 2024 and 2023 ( Except per share amounts or as otherwise indicated, currency and share amounts in thousands ) (unaudited) The Company recognizes revenue 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 revenue 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 of revenu

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the three and nine months ended August 31, 2024 and 2023 ( Except per share amounts or as otherwise indicated, currency and share amounts in thousands ) (unaudited) Recently Adopted Accounting Pronouncements In September 2022, the FASB issued an accounting standards update, ASU 2022-04, which requires new enhanced disclosures by the buyer in supplier finance programs. Disclosures include key terms of the program, including payment terms, along with the amount of related obligations, the financial statement caption that includes such obligations, and a rollforward of activity related to the obligations during the period. The new accounting standard must be adopted retrospectively to the earliest comparative period presented, except for the rollforward requirement, which should be adopted prospectively. The Company adopted this standard during the fiscal quarter ended February 29, 2024, except for the rollforward requirement which will be effective for the Company beginning with the quarter ending February 28, 2025. The adoption of the new standard did not have an impact on the Company's results of operations, financial condition, or cash flows. For the required disclosures of key terms and amounts outstanding under the Company's supplier finance programs, see Note 11 – Supplier Finance Programs. 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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the three and nine months ended August 31, 2024 and 2023 ( Except per share amounts or as otherwise indicated, currency and share amounts in thousands ) (unaudited) NOTE 3— ACQUISITION, INTEGRATION AND RESTRUCTURING COSTS: Acquisition, integration and restructuring costs are primarily comprised of costs related to the Merger (as defined below) and costs related to the Global Business Optimization 2 Program initiated by Tech Dat

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