x
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
|
|
94-2703333
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(State or other jurisdiction of
incorporation or organization)
|
|
(IRS Employer
Identification No.)
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|
|
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44201 Nobel Drive
Fremont, California
|
|
94538
|
(Address of principal executive offices)
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(Zip Code)
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Title of each classes:
|
|
Name of Stock Exchange on which registered:
|
Common Stock, par value $0.001 per share
|
|
New York Stock Exchange
|
Large accelerated filer
x
|
Accelerated filer
¨
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Non-accelerated filer
¨
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Smaller reporting company
¨
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Emerging growth company
¨
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Page
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Item 1.
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Item 1A.
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Item 1B.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
|
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Item 7.
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Item 7A.
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Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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Item 10.
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Item 11.
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Item 12.
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Item 13.
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Item 14.
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Item 15.
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Item 16.
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•
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the impact of the business acquisitions and dispositions we make;
|
•
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general economic conditions and level of IT and CE spending and outsourced business services;
|
•
|
the loss or consolidation of one or more of our significant OEM suppliers or customers;
|
•
|
consolidation of our Concentrix competitors, including insourcing by clients;
|
•
|
market acceptance, quality, pricing, availability and useful life of our products and services, as well as the mix of our products and services sold;
|
•
|
competitive conditions in our industry;
|
•
|
pricing, margin and other terms with our OEM suppliers;
|
•
|
decline in inventory value as a result of product obsolescence and market acceptance;
|
•
|
variations in our levels of excess inventory, vendor reserves and doubtful accounts;
|
•
|
fluctuations in rates in the currencies in which we transact;
|
•
|
changes in the terms of OEM supplier-inventory protections, such as price protection and return rights; and
|
•
|
the expansion of our design and integration solutions sales and operations, globally.
|
•
|
a government controlled foreign exchange rate and limitations on the convertibility of the Chinese Renminbi;
|
•
|
extensive government regulation;
|
•
|
changing governmental policies relating to tax benefits available to foreign-owned businesses;
|
•
|
the telecommunications infrastructure;
|
•
|
a relatively uncertain legal system; and
|
•
|
uncertainties related to continued economic and social reform.
|
•
|
changes in income before taxes in various jurisdictions in which we operate that have differing statutory tax rates;
|
•
|
changing tax laws, such as Public Law 115-97, informally referred to as the Tax Cuts and Jobs Act (the "TCJA"), regulations, and/or interpretations of such tax laws in multiple jurisdictions;
|
•
|
effect of tax rate on accounting for acquisitions and dispositions;
|
•
|
issues arising from tax audit or examinations and any related interest or penalties; and
|
•
|
uncertainty in obtaining tax holiday extensions or expiration or loss of tax holidays in various jurisdictions.
|
•
|
difficulty in successfully integrating acquired operations, IT systems, customers, OEM supplier relationships, products, services and businesses with our operations;
|
•
|
risk that the acquired businesses will fail to maintain the quality of services that we have historically provided;
|
•
|
loss of key employees of acquired operations or inability to hire key employees necessary for our expansion;
|
•
|
diversion of our capital and management attention away from other business issues;
|
•
|
increase in our expenses and working capital requirements;
|
•
|
in the case of acquisitions that we may make outside of the United States, difficulty in operating in foreign countries and over significant geographical distances;
|
•
|
other financial risks, such as potential liabilities of the businesses we acquire; and
|
•
|
our due diligence process may fail to identify significant issues with the acquired company’s product and service quality, financial disclosures, accounting practices or internal control deficiencies.
|
•
|
incur additional indebtedness;
|
•
|
make investments;
|
•
|
pay dividends or make certain other restricted payments;
|
•
|
repurchase common stock;
|
•
|
consummate certain asset sales or acquisitions;
|
•
|
enter into certain transactions with affiliates; and
|
•
|
merge, consolidate or sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of our assets.
|
•
|
our lenders could declare all outstanding principal and interest to be due and payable;
|
•
|
the lenders under our credit agreements could terminate their commitments to loan us money and, in the case of our secured credit agreements, foreclose against the assets securing their borrowings;
|
•
|
we could be forced to raise additional capital through the issuance of additional, potentially dilutive securities; and
|
•
|
we could be forced into bankruptcy or liquidation, which is likely to result in delays in the payment of our indebtedness and in the exercise of enforcement remedies related to our indebtedness.
|
•
|
political or economic instability;
|
•
|
extensive governmental regulation;
|
•
|
changes in import/export duties;
|
•
|
fluctuation in foreign currency exchange rates;
|
•
|
trade restrictions;
|
•
|
compliance with the Foreign Corrupt Practices Act, U.K. bribery laws and similar laws;
|
•
|
difficulties and costs of staffing and managing operations in certain foreign countries;
|
•
|
work stoppages or other changes in labor conditions;
|
•
|
minimum wage increases;
|
•
|
difficulties in collecting accounts receivable on a timely basis or at all;
|
•
|
taxes; and
|
•
|
seasonal reductions in business activity in some parts of the world.
|
Name
|
|
Age
|
|
Position
|
|
|
Kevin Murai
|
|
54
|
|
|
President, Chief Executive Officer and a Director
|
|
Dennis Polk
|
|
51
|
|
|
Chief Operating Officer and a Director
|
|
Peter Larocque
|
|
56
|
|
|
President, North American Technology Solutions
|
|
Marshall Witt
|
|
52
|
|
|
Chief Financial Officer
|
|
Christopher Caldwell
|
|
45
|
|
|
Executive Vice President; President, Concentrix Corporation
|
|
Simon Leung
|
|
52
|
|
|
Senior Vice President; General Counsel and Corporate Secretary
|
|
Fiscal Years Ended
|
||||||||||||||||||||||
|
11/30/2012
|
|
11/30/2013
|
|
11/30/2014
|
|
11/30/2015
|
|
11/30/2016
|
|
11/30/2017
|
||||||||||||
SYNNEX Corporation
|
$
|
100.00
|
|
|
$
|
200.36
|
|
|
$
|
216.81
|
|
|
$
|
288.19
|
|
|
$
|
360.67
|
|
|
$
|
423.86
|
|
NYSE Composite Index
|
$
|
100.00
|
|
|
$
|
126.58
|
|
|
$
|
139.63
|
|
|
$
|
136.09
|
|
|
$
|
145.74
|
|
|
$
|
174.26
|
|
S&P Midcap 400 Index
|
$
|
100.00
|
|
|
$
|
132.33
|
|
|
$
|
148.52
|
|
|
$
|
152.86
|
|
|
$
|
173.08
|
|
|
$
|
205.15
|
|
Computers & Peripheral Equipment
|
$
|
100.00
|
|
|
$
|
150.37
|
|
|
$
|
164.43
|
|
|
$
|
189.35
|
|
|
$
|
229.67
|
|
|
$
|
267.05
|
|
Concentrix Peer Group
|
$
|
100.00
|
|
|
$
|
120.19
|
|
|
$
|
135.10
|
|
|
$
|
172.71
|
|
|
$
|
192.75
|
|
|
$
|
245.09
|
|
|
Fiscal Years Ended November 30,
|
||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Statements of Operations Data: (in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue
|
$
|
17,045,700
|
|
|
$
|
14,061,837
|
|
|
$
|
13,338,397
|
|
|
$
|
13,839,590
|
|
|
$
|
10,845,164
|
|
Gross profit
|
1,550,940
|
|
|
1,282,965
|
|
|
1,191,791
|
|
|
1,099,004
|
|
|
654,970
|
|
|||||
Operating income
|
508,965
|
|
|
379,596
|
|
|
354,552
|
|
|
308,507
|
|
|
240,828
|
|
|||||
Net income
|
301,173
|
|
|
235,005
|
|
|
208,607
|
|
|
180,150
|
|
|
152,322
|
|
|||||
Net income attributable to SYNNEX Corporation
|
301,173
|
|
|
234,946
|
|
|
208,525
|
|
|
180,034
|
|
|
152,237
|
|
|||||
Earnings per share attributable to SYNNEX Corporation:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic:
|
$
|
7.54
|
|
|
$
|
5.91
|
|
|
$
|
5.28
|
|
|
$
|
4.61
|
|
|
$
|
4.06
|
|
Diluted:
|
$
|
7.51
|
|
|
$
|
5.88
|
|
|
$
|
5.24
|
|
|
$
|
4.57
|
|
|
$
|
3.02
|
|
Cash dividends declared per share
|
$
|
1.05
|
|
|
$
|
0.85
|
|
|
$
|
0.58
|
|
|
$
|
0.13
|
|
|
$
|
—
|
|
|
As of November 30,
|
||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Balance Sheet Data: (in thousands)
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
550,688
|
|
|
$
|
380,717
|
|
|
$
|
336,072
|
|
|
$
|
180,143
|
|
|
$
|
151,622
|
|
Working capital
|
1,698,571
|
|
|
1,518,498
|
|
|
1,731,624
|
|
|
1,178,260
|
|
|
1,142,355
|
|
|||||
Total assets
|
7,698,526
|
|
|
5,215,281
|
|
|
4,444,147
|
|
|
4,713,042
|
|
|
3,325,889
|
|
|||||
Borrowings, current
|
805,471
|
|
|
362,889
|
|
|
92,093
|
|
|
716,257
|
|
|
252,523
|
|
|||||
Long-term borrowings
|
1,136,089
|
|
|
601,095
|
|
|
638,798
|
|
|
264,246
|
|
|
65,405
|
|
|||||
Total equity
|
2,283,695
|
|
|
1,975,798
|
|
|
1,799,897
|
|
|
1,653,985
|
|
|
1,411,641
|
|
|
Fiscal Years Ended November 30,
|
||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Other Data: (in thousands)
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization
|
$
|
159,886
|
|
|
$
|
121,293
|
|
|
$
|
103,510
|
|
|
$
|
91,699
|
|
|
$
|
24,462
|
|
Statements of Operations Data:
|
Fiscal Years Ended November 30,
|
|||||||
|
2017
|
|
2016
|
|
2015
|
|||
Products revenue
|
88.41
|
%
|
|
88.83
|
%
|
|
89.49
|
%
|
Services revenue
|
11.59
|
|
|
11.17
|
|
|
10.51
|
|
Total revenue
|
100.00
|
|
|
100.00
|
|
|
100.00
|
|
Cost of products revenue
|
(83.67
|
)
|
|
(84.03
|
)
|
|
(84.54
|
)
|
Cost of services revenue
|
(7.23
|
)
|
|
(6.85
|
)
|
|
(6.52
|
)
|
Gross profit
|
9.10
|
|
|
9.12
|
|
|
8.94
|
|
Selling, general and administrative expenses
|
(6.11
|
)
|
|
(6.42
|
)
|
|
(6.28
|
)
|
Operating income
|
2.99
|
|
|
2.70
|
|
|
2.66
|
|
Interest expense and finance charges, net
|
(0.27
|
)
|
|
(0.21
|
)
|
|
(0.20
|
)
|
Other income (expense), net
|
0.01
|
|
|
0.04
|
|
|
(0.01
|
)
|
Income before income taxes
|
2.73
|
|
|
2.53
|
|
|
2.45
|
|
Provision for income taxes
|
(0.96
|
)
|
|
(0.86
|
)
|
|
(0.89
|
)
|
Net income
|
1.77
|
|
|
1.67
|
|
|
1.56
|
|
Net income attributable to noncontrolling interest
|
(0.00
|
)
|
|
(0.00
|
)
|
|
(0.00
|
)
|
Net income attributable to SYNNEX Corporation
|
1.77
|
|
|
1.67
|
|
|
1.56
|
|
•
|
Revenue in constant currency, which is revenue adjusted for the translation effect of foreign currencies so that certain financial results can be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of our business performance. Revenue in constant currency is calculated by translating the revenue of fiscal years
2017
and
2016
in billing currency using their comparable prior year’s currency conversion rate. Generally, when the dollar either strengthens or weakens against other currencies, the growth at constant currency rates or adjusting for currency will be higher or lower than growth reported at actual exchange rates.
|
•
|
Non-GAAP operating income, which is operating income as adjusted to exclude acquisition-related and integration expenses, restructuring costs and amortization of intangible assets.
|
•
|
Non-GAAP operating margin, which is non-GAAP operating income (as defined above) divided by revenue.
|
•
|
Adjusted earnings before interest, taxes, depreciation and amortization, or adjusted EBITDA, which is non-GAAP operating income as defined above after excluding depreciation.
|
•
|
Non-GAAP diluted earnings per common share (“EPS”), which is diluted EPS excluding the per share, tax effected impact of (i) acquisition-related and integration expenses, (ii) restructuring costs, and (iii) amortization of intangible assets.
|
Non-GAAP Financial Information:
|
Fiscal Years Ended November 30,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
(in thousands, except per share amounts)
|
||||||||||
Consolidated
|
|
|
|
|
|
||||||
Revenue
|
$
|
17,045,700
|
|
|
$
|
14,061,837
|
|
|
$
|
13,338,397
|
|
Foreign currency translation
|
(4,609
|
)
|
|
37,268
|
|
|
—
|
|
|||
Revenue in constant currency
|
$
|
17,041,091
|
|
|
$
|
14,099,105
|
|
|
$
|
13,338,397
|
|
|
|
|
|
|
|
||||||
Operating income
|
$
|
508,965
|
|
|
$
|
379,596
|
|
|
$
|
354,552
|
|
Acquisition-related and integration expenses
|
4,781
|
|
|
10,393
|
|
|
10,109
|
|
|||
Restructuring costs
|
—
|
|
|
4,255
|
|
|
—
|
|
|||
Amortization of intangibles
|
79,181
|
|
|
55,490
|
|
|
54,756
|
|
|||
Non-GAAP operating income
|
$
|
592,927
|
|
|
$
|
449,734
|
|
|
$
|
419,417
|
|
Depreciation
|
80,705
|
|
|
65,803
|
|
|
48,754
|
|
|||
Adjusted EBITDA
|
$
|
673,632
|
|
|
$
|
515,537
|
|
|
$
|
468,171
|
|
|
|
|
|
|
|
||||||
Operating margin
|
2.99
|
%
|
|
2.70
|
%
|
|
2.66
|
%
|
|||
Non-GAAP operating margin
|
3.48
|
%
|
|
3.20
|
%
|
|
3.14
|
%
|
|||
|
|
|
|
|
|
||||||
Technology Solutions
|
|
|
|
|
|
||||||
Revenue
|
$
|
15,071,185
|
|
|
$
|
12,490,718
|
|
|
$
|
11,936,660
|
|
Foreign currency translation
|
(6,588
|
)
|
|
12,780
|
|
|
—
|
|
|||
Revenue in constant currency
|
$
|
15,064,597
|
|
|
$
|
12,503,498
|
|
|
$
|
11,936,660
|
|
|
|
|
|
|
|
||||||
Operating income
|
$
|
394,320
|
|
|
$
|
315,485
|
|
|
$
|
302,950
|
|
Acquisition-related and integration expenses
|
3,724
|
|
|
—
|
|
|
—
|
|
|||
Amortization of intangibles
|
14,929
|
|
|
2,657
|
|
|
2,630
|
|
|||
Non-GAAP operating income
|
$
|
412,973
|
|
|
$
|
318,142
|
|
|
$
|
305,580
|
|
Depreciation
|
15,111
|
|
|
13,935
|
|
|
12,475
|
|
|||
Adjusted EBITDA
|
$
|
428,084
|
|
|
$
|
332,077
|
|
|
$
|
318,055
|
|
|
|
|
|
|
|
||||||
Concentrix
|
|
|
|
|
|
||||||
Revenue
|
$
|
1,990,180
|
|
|
$
|
1,587,736
|
|
|
$
|
1,416,670
|
|
Foreign currency translation
|
1,979
|
|
|
24,488
|
|
|
—
|
|
|||
Revenue in constant currency
|
$
|
1,992,159
|
|
|
$
|
1,612,224
|
|
|
$
|
1,416,670
|
|
|
|
|
|
|
|
||||||
Operating income
|
$
|
114,623
|
|
|
$
|
63,877
|
|
|
$
|
51,127
|
|
Acquisition-related and integration expenses
|
1,057
|
|
|
10,393
|
|
|
10,109
|
|
|||
Restructuring costs
|
—
|
|
|
4,255
|
|
|
—
|
|
|||
Amortization of intangibles
|
64,252
|
|
|
52,833
|
|
|
52,126
|
|
|||
Non-GAAP operating income
|
$
|
179,932
|
|
|
$
|
131,358
|
|
|
$
|
113,362
|
|
Depreciation
|
65,617
|
|
|
52,102
|
|
|
36,755
|
|
|||
Adjusted EBITDA
|
$
|
245,549
|
|
|
$
|
183,460
|
|
|
$
|
150,117
|
|
Non-GAAP Financial Information:
|
Fiscal Years Ended November 30,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
(in thousands, except per share amounts)
|
||||||||||
Diluted EPS
|
$
|
7.51
|
|
|
$
|
5.88
|
|
|
$
|
5.24
|
|
Acquisition-related and integration expenses
|
0.12
|
|
|
0.26
|
|
|
0.25
|
|
|||
Restructuring costs
|
—
|
|
|
0.11
|
|
|
—
|
|
|||
Amortization of intangibles
|
1.97
|
|
|
1.39
|
|
|
1.38
|
|
|||
Income taxes related to the above
(1)
|
(0.74
|
)
|
|
(0.60
|
)
|
|
(0.59
|
)
|
|||
Non-GAAP diluted EPS
(2)
|
$
|
8.86
|
|
|
$
|
7.04
|
|
|
$
|
6.28
|
|
|
Fiscal Years Ended November 30,
|
|
Percent Change
|
||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2017 to 2016
|
|
2016 to 2015
|
||||||||
|
|
|
(in thousands)
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
17,045,700
|
|
|
$
|
14,061,837
|
|
|
$
|
13,338,397
|
|
|
21.2
|
%
|
|
5.4
|
%
|
Technology Solutions revenue
|
15,071,185
|
|
|
12,490,718
|
|
|
11,936,660
|
|
|
20.7
|
%
|
|
4.6
|
%
|
|||
Concentrix revenue
|
1,990,180
|
|
|
1,587,736
|
|
|
1,416,670
|
|
|
25.3
|
%
|
|
12.1
|
%
|
|||
Inter-segment elimination
|
(15,665
|
)
|
|
(16,617
|
)
|
|
(14,933
|
)
|
|
|
|
|
|
|
|
Fiscal Years Ended November 30,
|
|
Percent Change
|
||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2017 to 2016
|
|
2016 to 2015
|
||||||||
|
|
|
(in thousands)
|
|
|
|
|
|
|
||||||||
Gross profit
|
$
|
1,550,940
|
|
|
$
|
1,282,965
|
|
|
$
|
1,191,791
|
|
|
20.9
|
%
|
|
7.7
|
%
|
Gross margin
|
9.10
|
%
|
|
9.12
|
%
|
|
8.94
|
%
|
|
|
|
|
|||||
Technology Solutions gross profit
|
809,083
|
|
|
675,239
|
|
|
659,830
|
|
|
19.8
|
%
|
|
2.3
|
%
|
|||
Technology Solutions gross margin
|
5.37
|
%
|
|
5.41
|
%
|
|
5.53
|
%
|
|
|
|
|
|||||
Concentrix gross profit
|
749,154
|
|
|
615,447
|
|
|
538,314
|
|
|
21.7
|
%
|
|
14.3
|
%
|
|||
Concentrix gross margin
|
37.64
|
%
|
|
38.76
|
%
|
|
38.00
|
%
|
|
|
|
|
|||||
Inter-segment elimination
|
(7,297
|
)
|
|
(7,721
|
)
|
|
(6,353
|
)
|
|
|
|
|
|
Fiscal Years Ended November 30,
|
|
Percent Change
|
||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2017 to 2016
|
|
2016 to 2015
|
||||||||
|
(in thousands)
|
|
|
|
|
||||||||||||
Selling, general and administrative expenses
|
$
|
1,041,975
|
|
|
$
|
903,369
|
|
|
$
|
837,239
|
|
|
15.3
|
%
|
|
7.9
|
%
|
Percentage of revenue
|
6.11
|
%
|
|
6.42
|
%
|
|
6.28
|
%
|
|
|
|
|
|||||
Technology Solutions selling, general and administrative expenses
|
414,763
|
|
|
359,754
|
|
|
356,880
|
|
|
15.3
|
%
|
|
0.8
|
%
|
|||
Technology Solutions percentage of revenue
|
2.75
|
%
|
|
2.88
|
%
|
|
2.99
|
%
|
|
|
|
|
|||||
Concentrix selling, general and administrative expenses
|
634,530
|
|
|
551,570
|
|
|
487,187
|
|
|
15.0
|
%
|
|
13.2
|
%
|
|||
Concentrix percentage of revenue
|
31.88
|
%
|
|
34.74
|
%
|
|
34.39
|
%
|
|
|
|
|
|||||
Inter-segment elimination
|
(7,318
|
)
|
|
(7,955
|
)
|
|
(6,828
|
)
|
|
|
|
|
|
Fiscal Years Ended November 30,
|
|
Percent Change
|
||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2017 to 2016
|
|
2016 to 2015
|
||||||||
|
|
|
(in thousands)
|
|
|
|
|
|
|
||||||||
Operating income
|
$
|
508,965
|
|
|
$
|
379,596
|
|
|
$
|
354,552
|
|
|
34.1
|
%
|
|
7.1
|
%
|
Operating margin
|
2.99
|
%
|
|
2.70
|
%
|
|
2.66
|
%
|
|
|
|
|
|||||
Technology Solutions operating income
|
394,320
|
|
|
315,485
|
|
|
302,950
|
|
|
25.0
|
%
|
|
4.1
|
%
|
|||
Technology Solutions operating margin
|
2.62
|
%
|
|
2.53
|
%
|
|
2.54
|
%
|
|
|
|
|
|||||
Concentrix operating income
|
114,623
|
|
|
63,877
|
|
|
51,127
|
|
|
79.4
|
%
|
|
24.9
|
%
|
|||
Concentrix operating margin
|
5.76
|
%
|
|
4.02
|
%
|
|
3.61
|
%
|
|
|
|
|
|||||
Inter-segment elimination
|
22
|
|
|
234
|
|
|
475
|
|
|
|
|
|
|
|
Fiscal Years Ended November 30,
|
|
Percent Change
|
||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2017 to 2016
|
|
2016 to 2015
|
||||||||
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|||||||
Interest expense and finance charges, net
|
$
|
45,357
|
|
|
$
|
28,993
|
|
|
$
|
26,296
|
|
|
56.4
|
%
|
|
10.3
|
%
|
Percentage of revenue
|
0.27
|
%
|
|
0.21
|
%
|
|
0.20
|
%
|
|
|
|
|
|
Fiscal Years Ended November 30,
|
|
Percent Change
|
||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2017 to 2016
|
|
2016 to 2015
|
||||||||
|
|
|
(in thousands)
|
|
|
|
|
|
|
||||||||
Other income (expense), net
|
$
|
1,123
|
|
|
$
|
5,461
|
|
|
$
|
(1,061
|
)
|
|
79.4
|
%
|
|
614.7
|
%
|
Percentage of revenue
|
0.01
|
%
|
|
0.04
|
%
|
|
(0.01
|
)%
|
|
|
|
|
|
|
Three Months Ended
|
||||||||||
|
|
November 30, 2017
|
|
November 30, 2016
|
|
November 30, 2015
|
||||||
|
|
(in thousands, except per share amounts)
|
||||||||||
Days sales outstanding
|
|
|
|
|
|
|
||||||
Revenue (products and services)
|
(a)
|
$
|
5,311,877
|
|
|
$
|
3,886,902
|
|
|
$
|
3,549,617
|
|
Accounts receivable, including receivable from related parties
|
(b)
|
2,846,448
|
|
|
1,756,596
|
|
|
1,759,605
|
|
|||
Days sales outstanding
|
(c) = (b)/((a)/the number of days during the period)
|
49
|
|
|
41
|
|
|
45
|
|
|||
|
|
|
|
|
|
|
||||||
Days inventory outstanding
|
|
|
|
|
|
|
||||||
Cost of revenue (products and services)
|
(d)
|
$
|
4,849,909
|
|
|
$
|
3,508,116
|
|
|
$
|
3,236,881
|
|
Inventories
|
(e)
|
2,162,626
|
|
|
1,741,734
|
|
|
1,328,967
|
|
|||
Days inventory outstanding
|
(f) = (e)/((d)/the number of days during the period)
|
41
|
|
|
45
|
|
|
37
|
|
|||
|
|
|
|
|
|
|
||||||
Days payable outstanding
|
|
|
|
|
|
|
||||||
Cost of revenue (products and services)
|
(g)
|
$
|
4,849,909
|
|
|
$
|
3,508,116
|
|
|
$
|
3,236,881
|
|
Accounts payable, including payable to related parties
|
(h)
|
2,643,608
|
|
|
1,713,834
|
|
|
1,452,855
|
|
|||
Days payable outstanding
|
(i) = (h)/((g)/the number of days during the period)
|
50
|
|
|
44
|
|
|
41
|
|
|||
|
|
|
|
|
|
|
||||||
Cash conversion cycle
|
(j) = (c)+(f)-(i)
|
40
|
|
|
42
|
|
|
41
|
|
|
Payments Due by Period
|
||||||||||||||||||
|
Total
|
|
Less than
1 Year
|
|
1 - 3
Years
|
|
3 - 5
Years
|
|
> 5
Years
|
||||||||||
|
(in thousands)
|
||||||||||||||||||
Contractual Obligations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Principal debt payments
|
$
|
1,946,040
|
|
|
$
|
805,471
|
|
|
$
|
120,108
|
|
|
$
|
1,020,461
|
|
|
$
|
—
|
|
Non-cancellable operating leases
|
383,228
|
|
|
94,006
|
|
|
152,677
|
|
|
78,037
|
|
|
58,508
|
|
|||||
Total
|
$
|
2,329,268
|
|
|
$
|
899,477
|
|
|
$
|
272,785
|
|
|
$
|
1,098,498
|
|
|
$
|
58,508
|
|
|
As of November 30, 2017
|
|
|
(shares in thousands)
|
|
MiTAC Holdings
(1)
|
5,449
|
|
Synnex Technology International Corp.
(2)
|
4,209
|
|
Total
|
9,658
|
|
(1)
|
Shares are held via Silver Star Developments Ltd., a wholly-owned subsidiary of MiTAC Holdings. Excludes
376 thousand
shares directly held by Matthew Miau and
218 thousand
shares indirectly held by Mathew Miau through a charitable remainder trust.
|
(2)
|
Synnex Technology International Corp. (“Synnex Technology International”) is a separate entity from the Company and is a publicly-traded corporation in Taiwan. Shares are held via Peer Development Ltd., a wholly-owned subsidiary of Synnex Technology International. MiTAC Holdings owns a noncontrolling interest of
8.7%
in MiTAC Incorporated, a privately-held Taiwanese company, which in turn holds a noncontrolling interest of
13.6%
in Synnex Technology International. Neither MiTAC Holdings nor Mr. Miau is affiliated with any person(s), entity, or entities that hold a majority interest in MiTAC Incorporated.
|
|
Loss on Derivative Instruments Given a
Weakening of U.S. dollar by X Percent
|
|
Gain (Loss)
Assuming No
Change in
Exchange Rate
|
|
Gain on Derivative Instruments Given a
Strengthening of U.S. dollar by X Percent
|
||||||||||||||||||||||
|
15%
|
|
10%
|
|
5%
|
|
5%
|
|
10%
|
|
15%
|
||||||||||||||||
Forward contracts at November 30, 2017
|
$
|
(15,253
|
)
|
|
$
|
(9,773
|
)
|
|
$
|
(4,722
|
)
|
|
$
|
469
|
|
|
$
|
3,558
|
|
|
$
|
7,661
|
|
|
$
|
11,529
|
|
Forward contracts at November 30, 2016
|
$
|
(15,259
|
)
|
|
$
|
(9,310
|
)
|
|
$
|
(3,986
|
)
|
|
$
|
721
|
|
|
$
|
5,140
|
|
|
$
|
9,080
|
|
|
$
|
12,678
|
|
|
Interest Expense Given an Interest
Rate Decrease by X Percent
|
|
Actual Interest
Expense Assuming
No Change in
Interest Rate
|
|
Interest Expense Given an Interest
Rate Increase by X Percent
|
||||||||||||||||||||||
|
15%
|
|
10%
|
|
5%
|
|
5%
|
|
10%
|
|
15%
|
||||||||||||||||
SYNNEX US
|
$
|
25,421
|
|
|
$
|
26,196
|
|
|
$
|
26,971
|
|
|
$
|
27,746
|
|
|
$
|
28,521
|
|
|
$
|
29,295
|
|
|
$
|
30,070
|
|
SYNNEX Canada
|
351
|
|
|
372
|
|
|
392
|
|
|
413
|
|
|
434
|
|
|
454
|
|
|
475
|
|
|||||||
SYNNEX Infotec
|
881
|
|
|
886
|
|
|
890
|
|
|
833
|
|
|
900
|
|
|
904
|
|
|
909
|
|
|||||||
Westcon-Comstor North America
|
3,117
|
|
|
3,300
|
|
|
3,483
|
|
|
3,666
|
|
|
3,850
|
|
|
4,033
|
|
|
4,216
|
|
|||||||
Westcon-Comstor Latin America
|
6,085
|
|
|
6,443
|
|
|
6,801
|
|
|
7,159
|
|
|
7,517
|
|
|
7,874
|
|
|
8,232
|
|
|||||||
Indian subsidiaries
|
217
|
|
|
230
|
|
|
243
|
|
|
256
|
|
|
269
|
|
|
281
|
|
|
294
|
|
|||||||
Total for the year ended November 30, 2017
|
$
|
36,072
|
|
|
$
|
37,427
|
|
|
$
|
38,780
|
|
|
$
|
40,073
|
|
|
$
|
41,491
|
|
|
$
|
42,841
|
|
|
$
|
44,196
|
|
|
Interest Expense Given an Interest
Rate Decrease by X Percent
|
|
Actual Interest
Expense Assuming
No Change in
Interest Rate
|
|
Interest Expense Given an Interest
Rate Increase by X Percent
|
||||||||||||||||||||||
|
15%
|
|
10%
|
|
5%
|
|
5%
|
|
10%
|
|
15%
|
||||||||||||||||
SYNNEX US
|
$
|
6,233
|
|
|
$
|
6,408
|
|
|
$
|
6,583
|
|
|
$
|
6,759
|
|
|
$
|
6,934
|
|
|
$
|
7,109
|
|
|
$
|
7,284
|
|
SYNNEX Infotec
|
694
|
|
|
701
|
|
|
709
|
|
|
716
|
|
|
723
|
|
|
731
|
|
|
738
|
|
|||||||
Indian subsidiaries
|
138
|
|
|
146
|
|
|
154
|
|
|
162
|
|
|
170
|
|
|
178
|
|
|
186
|
|
|||||||
Total for the year ended November 30, 2016
|
$
|
7,065
|
|
|
$
|
7,255
|
|
|
$
|
7,446
|
|
|
$
|
7,637
|
|
|
$
|
7,827
|
|
|
$
|
8,018
|
|
|
$
|
8,208
|
|
|
|
|
Page
|
Consolidated Financial Statements of SYNNEX Corporation
|
|
Consolidated Balance Sheets as of November 30,
2017 and 2016
|
|
|
|
Financial Statement Schedule
|
|
|
November 30,
2017 |
|
November 30,
2016 |
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
550,688
|
|
|
$
|
380,717
|
|
Restricted cash
|
5,837
|
|
|
6,265
|
|
||
Short-term investments
|
5,475
|
|
|
5,109
|
|
||
Accounts receivable, net
|
2,846,371
|
|
|
1,756,494
|
|
||
Receivable from related parties
|
77
|
|
|
102
|
|
||
Inventories
|
2,162,626
|
|
|
1,741,734
|
|
||
Other current assets
|
168,704
|
|
|
104,609
|
|
||
Total current assets
|
5,739,778
|
|
|
3,995,030
|
|
||
Property and equipment, net
|
346,589
|
|
|
312,716
|
|
||
Goodwill
|
872,641
|
|
|
486,239
|
|
||
Intangible assets, net
|
583,051
|
|
|
298,550
|
|
||
Deferred tax assets
|
31,687
|
|
|
58,564
|
|
||
Other assets
|
124,780
|
|
|
64,182
|
|
||
Total assets
|
$
|
7,698,526
|
|
|
$
|
5,215,281
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Borrowings, current
|
$
|
805,471
|
|
|
$
|
362,889
|
|
Accounts payable
|
2,626,720
|
|
|
1,683,155
|
|
||
Payable to related parties
|
16,888
|
|
|
30,679
|
|
||
Accrued compensation and benefits
|
204,665
|
|
|
165,585
|
|
||
Other accrued liabilities
|
354,104
|
|
|
217,127
|
|
||
Income taxes payable
|
33,359
|
|
|
17,097
|
|
||
Total current liabilities
|
4,041,207
|
|
|
2,476,532
|
|
||
Long-term borrowings
|
1,136,089
|
|
|
601,095
|
|
||
Other long-term liabilities
|
124,008
|
|
|
103,217
|
|
||
Deferred tax liabilities
|
113,527
|
|
|
58,639
|
|
||
Total liabilities
|
5,414,831
|
|
|
3,239,483
|
|
||
Commitments and contingencies (Note 17)
|
|
|
|
||||
SYNNEX Corporation stockholders’ equity:
|
|
|
|
||||
Preferred stock, $0.001 par value, 5,000 shares authorized, no shares issued or outstanding
|
—
|
|
|
—
|
|
||
Common stock, $0.001 par value, 100,000 shares authorized, 41,092 and 40,816 shares issued as of November 30, 2017 and 2016, respectively
|
41
|
|
|
41
|
|
||
Additional paid-in capital
|
467,948
|
|
|
440,713
|
|
||
Treasury stock, 1,419 and 1,339 shares as of November 30, 2017 and 2016, respectively
|
(77,133
|
)
|
|
(67,262
|
)
|
||
Accumulated other comprehensive income (loss)
|
(61,919
|
)
|
|
(93,116
|
)
|
||
Retained earnings
|
1,954,758
|
|
|
1,695,400
|
|
||
Total SYNNEX Corporation stockholders’ equity
|
2,283,695
|
|
|
1,975,776
|
|
||
Noncontrolling interest
|
—
|
|
|
22
|
|
||
Total equity
|
2,283,695
|
|
|
1,975,798
|
|
||
Total liabilities and equity
|
$
|
7,698,526
|
|
|
$
|
5,215,281
|
|
|
Fiscal Years Ended November 30,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Revenue:
|
|
|
|
|
|
||||||
Products
|
$
|
15,070,871
|
|
|
$
|
12,490,427
|
|
|
$
|
11,936,282
|
|
Services
|
1,974,829
|
|
|
1,571,410
|
|
|
1,402,115
|
|
|||
Total revenue
|
17,045,700
|
|
|
14,061,837
|
|
|
13,338,397
|
|
|||
Cost of revenue:
|
|
|
|
|
|
||||||
Products
|
(14,262,094
|
)
|
|
(11,815,479
|
)
|
|
(11,276,819
|
)
|
|||
Services
|
(1,232,666
|
)
|
|
(963,393
|
)
|
|
(869,787
|
)
|
|||
Gross profit
|
1,550,940
|
|
|
1,282,965
|
|
|
1,191,791
|
|
|||
Selling, general and administrative expenses
|
(1,041,975
|
)
|
|
(903,369
|
)
|
|
(837,239
|
)
|
|||
Operating income
|
508,965
|
|
|
379,596
|
|
|
354,552
|
|
|||
Interest expense and finance charges, net
|
(45,357
|
)
|
|
(28,993
|
)
|
|
(26,296
|
)
|
|||
Other income (expense), net
|
1,123
|
|
|
5,461
|
|
|
(1,061
|
)
|
|||
Income before income taxes
|
464,731
|
|
|
356,064
|
|
|
327,195
|
|
|||
Provision for income taxes
|
(163,558
|
)
|
|
(121,059
|
)
|
|
(118,588
|
)
|
|||
Net income
|
301,173
|
|
|
235,005
|
|
|
208,607
|
|
|||
Net income attributable to noncontrolling interest
|
—
|
|
|
(59
|
)
|
|
(82
|
)
|
|||
Net income attributable to SYNNEX Corporation
|
$
|
301,173
|
|
|
$
|
234,946
|
|
|
$
|
208,525
|
|
Earnings attributable to SYNNEX Corporation per common share:
|
|
|
|
|
|
||||||
Basic
|
$
|
7.54
|
|
|
$
|
5.91
|
|
|
$
|
5.28
|
|
Diluted
|
$
|
7.51
|
|
|
$
|
5.88
|
|
|
$
|
5.24
|
|
Weighted-average common shares outstanding:
|
|
|
|
|
|
||||||
Basic
|
39,556
|
|
|
39,321
|
|
|
39,061
|
|
|||
Diluted
|
39,758
|
|
|
39,530
|
|
|
39,352
|
|
|||
Cash dividends declared per share
|
$
|
1.05
|
|
|
$
|
0.85
|
|
|
$
|
0.58
|
|
|
Fiscal Years Ended November 30,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Net income
|
$
|
301,173
|
|
|
$
|
235,005
|
|
|
$
|
208,607
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
||||||
Unrealized gains (losses) on available-for-sale securities, net of taxes of $0, $0 and $(87) for fiscal years ended November 30, 2017, 2016 and 2015, respectively
|
1,406
|
|
|
(234
|
)
|
|
125
|
|
|||
Change in unrealized losses of defined benefit plans, net of taxes of $0, $557 and $0 for fiscal years ended November 30, 2017, 2016 and 2015, respectively
|
(1,463
|
)
|
|
(1,067
|
)
|
|
(103
|
)
|
|||
Unrealized gains (losses) on cash flow hedges during the period, net of taxes of $(2,198), $540 and $2,250 for fiscal years ended November 30, 2017, 2016 and 2015, respectively
|
3,759
|
|
|
(1,800
|
)
|
|
(3,819
|
)
|
|||
Reclassification of net (gains)/losses to net income, net of tax expense (benefit) of $(677), $(555) and $(178) for fiscal years ended November 30, 2017, 2016 and 2015, respectively
|
1,085
|
|
|
881
|
|
|
280
|
|
|||
Total change in unrealized gains (losses) on cash flow hedges, net of tax
|
4,844
|
|
|
(919
|
)
|
|
(3,539
|
)
|
|||
Foreign currency translation adjustments, net of taxes of $(983), $(952) and $3,349 for fiscal years ended November 30, 2017, 2016 and 2015, respectively
|
26,410
|
|
|
(35,634
|
)
|
|
(45,097
|
)
|
|||
Other comprehensive income (loss)
|
31,197
|
|
|
(37,854
|
)
|
|
(48,614
|
)
|
|||
Comprehensive income:
|
332,370
|
|
|
197,151
|
|
|
159,993
|
|
|||
Comprehensive income attributable to noncontrolling interest
|
—
|
|
|
(84
|
)
|
|
(77
|
)
|
|||
Comprehensive income attributable to SYNNEX Corporation
|
$
|
332,370
|
|
|
$
|
197,067
|
|
|
$
|
159,916
|
|
|
SYNNEX Corporation Stockholders
|
|
Noncontrolling
interest
|
|
Total equity
|
||||||||||||||||||||||||||||
|
Common stock
|
|
Additional
paid-in
capital
|
|
Treasury Stock
|
|
Accumulated
other
comprehensive
income (loss)
|
|
Retained
earnings
|
|
|||||||||||||||||||||||
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
||||||||||||||||||||||||||
Balances, November 30, 2014
|
39,847
|
|
|
$
|
40
|
|
|
$
|
384,625
|
|
|
923
|
|
|
$
|
(32,723
|
)
|
|
$
|
(6,628
|
)
|
|
$
|
1,308,244
|
|
|
$
|
427
|
|
|
$
|
1,653,985
|
|
Share-based compensation
|
—
|
|
|
—
|
|
|
13,644
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,644
|
|
|||||||
Tax benefits from equity awards
|
—
|
|
|
—
|
|
|
7,487
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,487
|
|
|||||||
Issuance of common stock on exercise of options, for employee stock purchase plan and vesting of restricted stock, net of shares withheld for employee taxes
|
503
|
|
|
—
|
|
|
5,959
|
|
|
118
|
|
|
(9,828
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,869
|
)
|
|||||||
Repurchases of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
120
|
|
|
(8,736
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,736
|
)
|
|||||||
Cash dividends declared
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(22,591
|
)
|
|
—
|
|
|
(22,591
|
)
|
|||||||
Changes in ownership of noncontrolling interests
|
—
|
|
|
—
|
|
|
(28
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
(16
|
)
|
|||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(48,609
|
)
|
|
—
|
|
|
(5
|
)
|
|
(48,614
|
)
|
|||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
208,525
|
|
|
82
|
|
|
208,607
|
|
|||||||
Balances, November 30, 2015
|
40,350
|
|
|
40
|
|
|
411,687
|
|
|
1,161
|
|
|
(51,287
|
)
|
|
(55,237
|
)
|
|
1,494,178
|
|
|
516
|
|
|
1,799,897
|
|
|||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
13,971
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,971
|
|
|||||||
Tax benefits from equity awards
|
—
|
|
|
—
|
|
|
8,134
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,134
|
|
|||||||
Issuance of common stock on exercise of options, for employee stock purchase plan and vesting of restricted stock, net of shares withheld for employee taxes
|
466
|
|
|
1
|
|
|
7,549
|
|
|
91
|
|
|
(9,058
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,508
|
)
|
|||||||
Repurchases of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
87
|
|
|
(6,917
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,917
|
)
|
|||||||
Cash dividends declared
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(33,724
|
)
|
|
—
|
|
|
(33,724
|
)
|
|||||||
Changes in ownership of noncontrolling interests
|
—
|
|
|
—
|
|
|
(628
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(578
|
)
|
|
(1,206
|
)
|
|||||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(37,879
|
)
|
|
—
|
|
|
25
|
|
|
(37,854
|
)
|
|||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
234,946
|
|
|
59
|
|
|
235,005
|
|
|||||||
Balances, November 30, 2016
|
40,816
|
|
|
41
|
|
|
440,713
|
|
|
1,339
|
|
|
(67,262
|
)
|
|
(93,116
|
)
|
|
1,695,400
|
|
|
22
|
|
|
1,975,798
|
|
|||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
17,368
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,368
|
|
|||||||
Tax benefits from equity awards
|
—
|
|
|
—
|
|
|
5,546
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,546
|
|
|||||||
Issuance of common stock on exercise of options, for employee stock purchase plan and vesting of restricted stock, net of shares withheld for employee taxes
|
276
|
|
|
—
|
|
|
4,236
|
|
|
80
|
|
|
(9,871
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,635
|
)
|
|||||||
Cash dividends declared
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(41,815
|
)
|
|
—
|
|
|
(41,815
|
)
|
|||||||
Changes in ownership of noncontrolling interests
|
—
|
|
|
—
|
|
|
85
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(22
|
)
|
|
63
|
|
|||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31,197
|
|
|
—
|
|
|
—
|
|
|
31,197
|
|
|||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
301,173
|
|
|
—
|
|
|
301,173
|
|
|||||||
Balances, November 30, 2017
|
41,092
|
|
|
$
|
41
|
|
|
$
|
467,948
|
|
|
1,419
|
|
|
$
|
(77,133
|
)
|
|
$
|
(61,919
|
)
|
|
$
|
1,954,758
|
|
|
$
|
—
|
|
|
$
|
2,283,695
|
|
|
Fiscal Years Ended November 30,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
301,173
|
|
|
$
|
235,005
|
|
|
$
|
208,607
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
159,886
|
|
|
121,293
|
|
|
103,510
|
|
|||
Share-based compensation
|
17,368
|
|
|
13,971
|
|
|
13,644
|
|
|||
Provision for doubtful accounts
|
8,268
|
|
|
1,734
|
|
|
542
|
|
|||
Excess tax benefit from share-based compensation
|
(5,546
|
)
|
|
(8,308
|
)
|
|
(7,780
|
)
|
|||
Deferred income taxes
|
(25,221
|
)
|
|
(7,409
|
)
|
|
(5,497
|
)
|
|||
Unrealized foreign exchange (gains) losses
|
(3,542
|
)
|
|
(3,009
|
)
|
|
16,029
|
|
|||
Others
|
4,861
|
|
|
1,156
|
|
|
(50
|
)
|
|||
Changes in assets and liabilities, net of acquisition of businesses:
|
|
|
|
|
|
||||||
Accounts receivable, including from related parties
|
(478,273
|
)
|
|
95,044
|
|
|
291,206
|
|
|||
Inventories
|
(243,332
|
)
|
|
(410,162
|
)
|
|
40,121
|
|
|||
Accounts payable, including to related parties
|
341,962
|
|
|
265,609
|
|
|
(23,482
|
)
|
|||
Other assets and liabilities
|
99,160
|
|
|
19,780
|
|
|
4,494
|
|
|||
Net cash provided by operating activities
|
176,764
|
|
|
324,704
|
|
|
641,344
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Purchases of investments
|
(12,942
|
)
|
|
(92,264
|
)
|
|
(10,066
|
)
|
|||
Proceeds from sale and maturity of investments
|
10,625
|
|
|
92,549
|
|
|
11,698
|
|
|||
Purchases of property and equipment
|
(97,546
|
)
|
|
(123,233
|
)
|
|
(100,106
|
)
|
|||
Acquisition of businesses, net of cash acquired and refunds(1)
|
(526,658
|
)
|
|
(414,801
|
)
|
|
37,299
|
|
|||
Purchase of cost-method investment
|
(30,000
|
)
|
|
—
|
|
|
—
|
|
|||
Others
|
2,264
|
|
|
5,869
|
|
|
1,726
|
|
|||
Net cash used in investing activities
|
(654,257
|
)
|
|
(531,880
|
)
|
|
(59,449
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Proceeds from borrowings, net of debt discount and issuance costs
|
9,061,771
|
|
|
3,503,516
|
|
|
2,847,261
|
|
|||
Repayments of borrowings
|
(8,382,379
|
)
|
|
(3,285,687
|
)
|
|
(3,092,506
|
)
|
|||
Dividends paid
|
(41,815
|
)
|
|
(33,724
|
)
|
|
(22,591
|
)
|
|||
Excess tax benefit from share-based compensation
|
5,546
|
|
|
8,308
|
|
|
7,780
|
|
|||
Increase (decrease) in book overdrafts
|
1,166
|
|
|
(2,499
|
)
|
|
(82,236
|
)
|
|||
Repurchases of common stock
|
—
|
|
|
(6,917
|
)
|
|
(8,736
|
)
|
|||
Proceeds from issuance of common stock
|
4,236
|
|
|
7,550
|
|
|
5,959
|
|
|||
Repurchases of common stock for tax withholdings on equity awards
|
(9,871
|
)
|
|
(9,058
|
)
|
|
(9,828
|
)
|
|||
Others
|
—
|
|
|
(1,337
|
)
|
|
(170
|
)
|
|||
Net cash provided by (used in) financing activities
|
638,654
|
|
|
180,152
|
|
|
(355,067
|
)
|
|||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
8,414
|
|
|
(10,439
|
)
|
|
(16,610
|
)
|
|||
Net decrease in cash, cash equivalents and restricted cash
|
169,575
|
|
|
(37,463
|
)
|
|
210,218
|
|
|||
Cash, cash equivalents and restricted cash at beginning of year
|
387,167
|
|
|
424,630
|
|
|
214,412
|
|
|||
Cash, cash equivalents and restricted cash at end of year
|
$
|
556,742
|
|
|
$
|
387,167
|
|
|
$
|
424,630
|
|
|
|
|
|
|
|
||||||
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
|
|||||
Interest paid on borrowings
|
$
|
36,783
|
|
|
$
|
21,941
|
|
|
$
|
19,372
|
|
Income taxes paid
|
$
|
136,805
|
|
|
$
|
101,953
|
|
|
$
|
140,962
|
|
|
|
|
|
|
|
||||||
Supplemental disclosure of non-cash investing activities:
|
|
|
|
|
|
||||||
Accrued costs for property and equipment purchases
|
$
|
2,239
|
|
|
$
|
2,534
|
|
|
$
|
9,856
|
|
Customer relationships and lists
|
4-10 years
|
Vendor lists
|
4-10 years
|
Technology
|
5-10 years
|
Other intangible assets
|
1-10 years
|
Purchase consideration:
|
|
Fair Value
|
||
Cash
|
|
$
|
602,739
|
|
Contingent consideration payable
|
|
33,098
|
|
|
Receivable from Datatec related to settlement of pre-acquisition intra group transactions
|
|
(2,269
|
)
|
|
|
|
$
|
633,568
|
|
Preliminary purchase price allocation:
|
Preliminary Fair Value
|
||
Cash and cash equivalents
|
$
|
127,390
|
|
Accounts receivable (Gross accounts receivable: $633,971)
|
605,666
|
|
|
Inventories
|
171,034
|
|
|
Other current assets
|
58,008
|
|
|
Property and equipment
|
13,051
|
|
|
Goodwill
|
340,440
|
|
|
Intangible assets
|
336,000
|
|
|
Deferred tax assets
|
6,891
|
|
|
Other assets
|
16,995
|
|
|
Borrowings, current
|
(291,823
|
)
|
|
Accounts payable
|
(585,723
|
)
|
|
Accrued compensation and benefits
|
(9,723
|
)
|
|
Other accrued liabilities
|
(48,281
|
)
|
|
Long-term borrowings
|
(545
|
)
|
|
Other long-term liabilities
|
(3,730
|
)
|
|
Deferred tax liabilities
|
(102,082
|
)
|
|
Purchase consideration
|
$
|
633,568
|
|
|
|
Preliminary
Fair Value
|
|
Weighted Average Useful Life
|
||
Customer relationships
|
|
$
|
152,000
|
|
|
10 years
|
Vendor relationships
|
|
144,000
|
|
|
10 years
|
|
Trade names
|
|
24,000
|
|
|
10 years
|
|
Technology
|
|
12,000
|
|
|
5 years
|
|
Others
|
|
$
|
4,000
|
|
|
4 years
|
Total intangibles acquired
|
|
$
|
336,000
|
|
|
|
|
|
Year Ended
|
||||||
|
|
November 30, 2017
|
|
November 30, 2016
|
||||
Revenue
|
|
$
|
18,699,040
|
|
|
$
|
16,235,161
|
|
Net income attributable to SYNNEX Corporation
|
|
297,083
|
|
|
242,092
|
|
||
Earnings attributable to SYNNEX Corporation per common share:
|
|
|
|
|
||||
Basic
|
|
$
|
7.44
|
|
|
$
|
6.09
|
|
Diluted
|
|
$
|
7.40
|
|
|
$
|
6.06
|
|
Purchase price allocation:
|
Fair Value
|
||
Cash and cash equivalents
|
$
|
20,492
|
|
Accounts receivable (Gross accounts receivable: $94,560)
|
92,686
|
|
|
Other current assets
|
22,678
|
|
|
Property and equipment
|
20,276
|
|
|
Goodwill
|
190,204
|
|
|
Intangible assets
|
193,400
|
|
|
Other assets
|
5,944
|
|
|
Borrowings, current
|
(7,974
|
)
|
|
Accounts payable
|
(1,985
|
)
|
|
Accrued compensation and benefits
|
(26,726
|
)
|
|
Other accrued liabilities
|
(17,110
|
)
|
|
Income taxes payable
|
(698
|
)
|
|
Other long-term liabilities
|
(2,005
|
)
|
|
Deferred tax liabilities, noncurrent
|
(60,047
|
)
|
|
Cash consideration paid
|
$
|
429,135
|
|
|
|
Fair Value
|
|
Weighted Average Useful Life
|
||
Customer relationships
|
|
$
|
190,000
|
|
|
10 years
|
Technology
|
|
3,400
|
|
|
5 years
|
|
Total intangibles acquired
|
|
$
|
193,400
|
|
|
|
|
Fiscal Years Ended November 30,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Total share-based compensation
|
17,523
|
|
|
14,023
|
|
|
13,704
|
|
|||
Tax effect on share-based compensation
|
(6,167
|
)
|
|
(4,768
|
)
|
|
(4,967
|
)
|
|||
Net effect on net income
|
$
|
11,356
|
|
|
$
|
9,255
|
|
|
$
|
8,737
|
|
|
Fiscal Years Ended November 30,
|
|||||||
|
2017
|
|
2016
|
|
2015
|
|||
Stock option plan:
|
|
|
|
|
|
|||
Expected life (years)
|
5.9
|
|
|
5.8
|
|
|
5.9
|
|
Risk free interest rate
|
2.11
|
%
|
|
1.43
|
%
|
|
1.63
|
%
|
Expected volatility
|
29.41
|
%
|
|
31.44
|
%
|
|
31.78
|
%
|
Dividend yield
|
0.93
|
%
|
|
0.89
|
%
|
|
0.90
|
%
|
|
Shares Available
for Grant |
|
Options Outstanding
|
||||||
Number of
Shares |
|
Weighted-Average
Exercise Price Per Share |
|||||||
Balances, November 30, 2016
|
1,696
|
|
|
571
|
|
|
$
|
60.64
|
|
Restricted stock awards granted
|
(149
|
)
|
|
—
|
|
|
—
|
|
|
Restricted stock units granted
|
(164
|
)
|
|
—
|
|
|
—
|
|
|
Restricted stock cancelled/forfeited
|
46
|
|
|
—
|
|
|
—
|
|
|
Options granted
|
(89
|
)
|
|
89
|
|
|
$
|
128.67
|
|
Options exercised
|
—
|
|
|
(43
|
)
|
|
$
|
32.27
|
|
Balances, November 30, 2017
|
1,340
|
|
|
617
|
|
|
$
|
72.42
|
|
|
Fiscal Years Ended November 30,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Intrinsic value of options exercised
|
$
|
3,856
|
|
|
$
|
11,918
|
|
|
$
|
9,338
|
|
Cash received from exercise of options
|
$
|
1,400
|
|
|
$
|
5,157
|
|
|
$
|
3,984
|
|
|
Number of
shares |
|
Weighted-average,
grant-date fair value per share |
Nonvested as of November 30, 2016
|
640
|
|
$79.65
|
Awards granted
|
149
|
|
$125.69
|
Units granted
(1)
|
164
|
|
$124.39
|
Awards and units vested
|
(206)
|
|
$69.71
|
Awards and units cancelled/forfeited
(2)
|
(46)
|
|
$79.76
|
Nonvested as of November 30, 2017
|
701
|
|
$103.74
|
(1)
|
For performance-based restricted stock units, the maximum number of shares that can be awarded upon full vesting of the grants is included.
|
(2)
|
For performance-based restricted stock units, the difference between maximum awards and the actual number of shares issued upon full vesting is included.
|
|
As of November 30,
|
||||||
|
2017
|
|
2016
|
||||
Cash and cash equivalents
|
$
|
550,688
|
|
|
$
|
380,717
|
|
Restricted cash
|
5,837
|
|
|
6,265
|
|
||
Restricted cash included in other assets
|
217
|
|
|
185
|
|
||
|
$
|
556,742
|
|
|
$
|
387,167
|
|
|
As of November 30,
|
||||||
|
2017
|
|
2016
|
||||
Accounts receivable, net:
|
|
|
|
||||
Accounts receivable
|
$
|
2,918,703
|
|
|
$
|
1,820,049
|
|
Less: Allowance for doubtful accounts
|
(19,193
|
)
|
|
(13,564
|
)
|
||
Less: Allowance for sales returns
|
(53,139
|
)
|
|
(49,991
|
)
|
||
|
$
|
2,846,371
|
|
|
$
|
1,756,494
|
|
|
As of November 30,
|
||||||
|
2017
|
|
2016
|
||||
Property and equipment, net:
|
|
|
|
||||
Land
|
$
|
25,922
|
|
|
$
|
23,629
|
|
Equipment, computers and software
|
306,665
|
|
|
255,400
|
|
||
Furniture and fixtures
|
60,892
|
|
|
51,767
|
|
||
Buildings, building improvements and leasehold improvements
|
270,649
|
|
|
219,780
|
|
||
Construction-in-progress
|
12,049
|
|
|
12,007
|
|
||
Total property and equipment, gross
|
676,177
|
|
|
562,583
|
|
||
Less: Accumulated depreciation
|
(329,588
|
)
|
|
(249,867
|
)
|
||
|
$
|
346,589
|
|
|
$
|
312,716
|
|
Goodwill:
|
Fiscal Year Ended November 30, 2017
|
|
Fiscal Year Ended November 30, 2016
|
||||||||||||||||||||
|
Technology Solutions
|
|
Concentrix
|
|
Total
|
|
Technology Solutions
|
|
Concentrix
|
|
Total
|
||||||||||||
Balance, beginning of year
|
$
|
96,412
|
|
|
$
|
389,827
|
|
|
$
|
486,239
|
|
|
$
|
95,947
|
|
|
$
|
202,838
|
|
|
$
|
298,785
|
|
Additions from acquisitions, net of adjustments (See Note 3)
|
340,440
|
|
|
37,642
|
|
|
378,082
|
|
|
—
|
|
|
196,514
|
|
|
196,514
|
|
||||||
Foreign exchange translation
|
373
|
|
|
7,947
|
|
|
8,320
|
|
|
465
|
|
|
(9,525
|
)
|
|
(9,060
|
)
|
||||||
Balance, end of year
|
$
|
437,225
|
|
|
$
|
435,416
|
|
|
$
|
872,641
|
|
|
$
|
96,412
|
|
|
$
|
389,827
|
|
|
$
|
486,239
|
|
Intangible assets, net:
|
As of November 30, 2017
|
|
As of November 30, 2016
|
||||||||||||||||||||
|
Gross
Amounts |
|
Accumulated
Amortization |
|
Net
Amounts |
|
Gross
Amounts |
|
Accumulated
Amortization |
|
Net
Amounts |
||||||||||||
Customer relationships and lists
|
$
|
619,431
|
|
|
$
|
(236,282
|
)
|
|
$
|
383,149
|
|
|
$
|
448,008
|
|
|
$
|
(160,033
|
)
|
|
$
|
287,975
|
|
Vendor lists
|
180,041
|
|
|
(39,016
|
)
|
|
141,025
|
|
|
36,815
|
|
|
(34,793
|
)
|
|
2,022
|
|
||||||
Technology
|
38,041
|
|
|
(6,519
|
)
|
|
31,522
|
|
|
10,900
|
|
|
(3,227
|
)
|
|
7,673
|
|
||||||
Other intangible assets
|
33,745
|
|
|
(6,390
|
)
|
|
27,355
|
|
|
5,827
|
|
|
(4,947
|
)
|
|
880
|
|
||||||
|
$
|
871,258
|
|
|
$
|
(288,207
|
)
|
|
$
|
583,051
|
|
|
$
|
501,550
|
|
|
$
|
(203,000
|
)
|
|
$
|
298,550
|
|
|
|
Unrealized gains on available-for-sale securities, net of taxes
|
|
Unrecognized defined benefit plan costs, net of taxes
|
|
Unrealized gains on cash flow hedges, net of taxes
|
|
Foreign currency translation adjustment, net of taxes
|
|
Total
|
||||||||||
Balance, beginning of year
|
|
$
|
713
|
|
|
$
|
(850
|
)
|
|
$
|
(4,458
|
)
|
|
$
|
(88,521
|
)
|
|
$
|
(93,116
|
)
|
Other comprehensive income (loss) before reclassification
|
|
1,406
|
|
|
(1,463
|
)
|
|
3,759
|
|
|
26,410
|
|
|
30,112
|
|
|||||
Reclassifications of (gains) losses from Other comprehensive income (loss)
|
|
—
|
|
|
—
|
|
|
1,085
|
|
|
—
|
|
|
1,085
|
|
|||||
Balance, end of year
|
|
$
|
2,119
|
|
|
$
|
(2,313
|
)
|
|
$
|
386
|
|
|
$
|
(62,111
|
)
|
|
$
|
(61,919
|
)
|
|
As of November 30, 2017
|
|
As of November 30, 2016
|
||||||||||||||||||||
|
Adjusted Cost Basis
|
|
Unrealized
Gains/(Losses) |
|
Carrying
Value |
|
Adjusted Cost Basis
|
|
Unrealized
Gains/(Losses) |
|
Carrying
Value |
||||||||||||
Short-term investments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Held-to-maturity investments
|
$
|
5,475
|
|
|
$
|
—
|
|
|
$
|
5,475
|
|
|
$
|
5,109
|
|
|
$
|
—
|
|
|
$
|
5,109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Long-term investments in “Other assets:”
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Available-for-sale securities
|
$
|
972
|
|
|
$
|
2,404
|
|
|
$
|
3,376
|
|
|
$
|
928
|
|
|
$
|
955
|
|
|
$
|
1,883
|
|
Held-to-maturity investments
|
5,189
|
|
|
(225
|
)
|
|
5,189
|
|
|
2,102
|
|
|
—
|
|
|
2,102
|
|
||||||
Cost-method investments
|
33,817
|
|
|
—
|
|
|
33,817
|
|
|
3,884
|
|
|
—
|
|
|
3,884
|
|
|
|
Fair Value as of
|
||||||
Balance Sheet Line Item
|
|
November 30, 2017
|
|
November 30, 2016
|
||||
Derivative instruments not designated as hedging instruments
|
|
|
|
|
||||
Foreign exchange forward contracts
|
|
|
|
|
||||
Other current assets
|
|
$
|
1,483
|
|
|
$
|
1,700
|
|
Other accrued liabilities
|
|
$
|
1,194
|
|
|
$
|
979
|
|
Other long-term liabilities
|
|
$
|
1,372
|
|
|
$
|
—
|
|
Derivative instruments designated as cash flow hedges
|
|
|
|
|
||||
Interest rate swaps
|
|
|
|
|
||||
Other assets
|
|
$
|
3,484
|
|
|
$
|
—
|
|
Other current liabilities
|
|
$
|
389
|
|
|
$
|
706
|
|
Other long-term liabilities
|
|
$
|
1,996
|
|
|
$
|
6,542
|
|
Period
|
|
Gains/(losses) reclassified from Accumulated other comprehensive income (loss) into income
|
|
Total Interest expense and finance charges, net
|
||
Year ended November 30, 2017
|
|
(1,762
|
)
|
|
(45,357
|
)
|
Year ended November 30, 2016
|
|
(1,436
|
)
|
|
(28,993
|
)
|
Year ended November 30, 2015
|
|
(458
|
)
|
|
(26,296
|
)
|
|
As of November 30, 2017
|
|
As of November 30, 2016
|
||||||||||||||||||||||||||||
|
Fair value measurement category
|
|
Fair value measurement category
|
||||||||||||||||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash equivalents
|
$
|
157,935
|
|
|
$
|
157,935
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
43,043
|
|
|
$
|
43,043
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Available-for-sale securities
|
3,376
|
|
|
3,376
|
|
|
—
|
|
|
—
|
|
|
1,883
|
|
|
1,883
|
|
|
—
|
|
|
—
|
|
||||||||
Forward foreign currency exchange contracts
|
1,483
|
|
|
—
|
|
|
1,483
|
|
|
—
|
|
|
1,700
|
|
|
—
|
|
|
1,700
|
|
|
—
|
|
||||||||
Interest rate swaps
|
3,484
|
|
|
—
|
|
|
3,484
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Forward foreign currency exchange contracts
|
$
|
2,566
|
|
|
$
|
—
|
|
|
$
|
2,566
|
|
|
$
|
—
|
|
|
$
|
979
|
|
|
$
|
—
|
|
|
$
|
979
|
|
|
$
|
—
|
|
Interest rate swaps
|
2,385
|
|
|
—
|
|
|
2,385
|
|
|
—
|
|
|
7,248
|
|
|
—
|
|
|
7,248
|
|
|
—
|
|
||||||||
Contingent consideration payable
|
$
|
33,098
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
33,098
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(1)
|
Flooring fees are included within “Interest expense and finance charges, net.”
|
|
As of November 30
|
||||||
|
2017
|
|
2016
|
||||
SYNNEX United States accounts receivable securitization arrangement
|
$
|
288,400
|
|
|
$
|
262,900
|
|
SYNNEX Canada accounts receivable securitization arrangement
|
19,389
|
|
|
—
|
|
||
Westcon-Comstor North America revolving line of credit facility
|
220,241
|
|
|
—
|
|
||
Westcon-Comstor Latin America revolving lines of credit facilities
|
78,407
|
|
|
—
|
|
||
SYNNEX Japan credit facility - revolving line of credit component
|
52,426
|
|
|
28,831
|
|
||
Concentrix India revolving lines of credit facilities
|
12,000
|
|
|
12,000
|
|
||
SYNNEX United States credit agreement - current portion of term loan component
|
60,000
|
|
|
35,157
|
|
||
SYNNEX Japan credit facility - current portion of term loan component
|
53,314
|
|
|
—
|
|
||
Other borrowings
|
21,294
|
|
|
24,001
|
|
||
Borrowings, current
|
805,471
|
|
|
362,889
|
|
||
|
|
|
|
||||
SYNNEX United States credit agreement - term loan component
|
1,140,000
|
|
|
550,781
|
|
||
SYNNEX Infotec credit facility - term loan component
|
—
|
|
|
52,420
|
|
||
Other term debt
|
569
|
|
|
28
|
|
||
Long-term borrowings, before unamortized debt discount and issuance costs
|
$
|
1,140,569
|
|
|
$
|
603,229
|
|
Less: unamortized debt discount and issuance costs
|
$
|
(4,480
|
)
|
|
$
|
(2,134
|
)
|
Long-term borrowings
|
$
|
1,136,089
|
|
|
$
|
601,095
|
|
|
Fiscal Years Ended November 30,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Basic earnings per common share:
|
|
|
|
|
|
||||||
Net income attributable to SYNNEX Corporation
|
$
|
301,173
|
|
|
$
|
234,946
|
|
|
$
|
208,525
|
|
Less: net income allocated to participating securities
(1)
|
(2,790
|
)
|
|
(2,419
|
)
|
|
(2,429
|
)
|
|||
Net income attributable to SYNNEX Corporation common stockholders
|
$
|
298,383
|
|
|
$
|
232,527
|
|
|
$
|
206,096
|
|
Weighted-average number of common shares - basic
|
39,556
|
|
|
39,321
|
|
|
39,061
|
|
|||
Basic earnings attributable to SYNNEX Corporation per common share
|
$
|
7.54
|
|
|
$
|
5.91
|
|
|
$
|
5.28
|
|
|
|
|
|
|
|
||||||
Diluted earnings per common share:
|
|
|
|
|
|
||||||
Net income attributable to SYNNEX Corporation
|
$
|
301,173
|
|
|
$
|
234,946
|
|
|
$
|
208,525
|
|
Less: net income allocated to participating securities
(1)
|
(2,778
|
)
|
|
(2,408
|
)
|
|
(2,413
|
)
|
|||
Net income attributable to SYNNEX Corporation common stockholders
|
$
|
298,395
|
|
|
$
|
232,538
|
|
|
$
|
206,112
|
|
Weighted average number of common shares - basic
|
39,556
|
|
|
39,321
|
|
|
39,061
|
|
|||
Effect of dilutive securities:
|
|
|
|
|
|
||||||
Stock options and restricted stock units
|
202
|
|
|
209
|
|
|
291
|
|
|||
Weighted-average number of common shares - diluted
|
39,758
|
|
|
39,530
|
|
|
39,352
|
|
|||
Diluted earnings attributable to SYNNEX Corporation per common share
|
$
|
7.51
|
|
|
$
|
5.88
|
|
|
$
|
5.24
|
|
|
|
|
|
|
|
||||||
Anti-dilutive shares excluded from diluted earnings per share calculation
|
14
|
|
|
11
|
|
|
3
|
|
(1)
|
Restricted stock awards granted to employees by the Company and its subsidiaries are considered participating securities.
|
|
Technology Solutions
|
|
Concentrix
|
|
Inter-Segment
Elimination
|
|
Consolidated
|
||||||||
Fiscal Year ended November 30, 2017:
|
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
15,071,185
|
|
|
$
|
1,990,180
|
|
|
$
|
(15,665
|
)
|
|
$
|
17,045,700
|
|
External Revenue
|
15,070,871
|
|
|
1,974,829
|
|
|
|
|
17,045,700
|
|
|||||
Operating income
|
394,320
|
|
|
114,623
|
|
|
22
|
|
|
508,965
|
|
||||
Depreciation and amortization expense
|
30,040
|
|
|
129,869
|
|
|
(23
|
)
|
|
159,886
|
|
||||
Total assets
|
$
|
7,124,884
|
|
|
$
|
1,677,728
|
|
|
$
|
(1,104,086
|
)
|
|
$
|
7,698,526
|
|
Fiscal Year ended November 30, 2016:
|
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
12,490,718
|
|
|
$
|
1,587,736
|
|
|
$
|
(16,617
|
)
|
|
$
|
14,061,837
|
|
External Revenue
|
12,490,427
|
|
|
1,571,410
|
|
|
|
|
14,061,837
|
|
|||||
Operating income
|
315,485
|
|
|
63,877
|
|
|
234
|
|
|
379,596
|
|
||||
Depreciation and amortization expense
|
16,592
|
|
|
104,935
|
|
|
(234
|
)
|
|
121,293
|
|
||||
Total assets
|
$
|
4,844,271
|
|
|
$
|
1,614,623
|
|
|
$
|
(1,243,613
|
)
|
|
$
|
5,215,281
|
|
Fiscal Year ended November 30, 2015:
|
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
11,936,660
|
|
|
$
|
1,416,670
|
|
|
$
|
(14,933
|
)
|
|
$
|
13,338,397
|
|
External Revenue
|
11,936,282
|
|
|
1,402,115
|
|
|
|
|
13,338,397
|
|
|||||
Operating income
|
302,950
|
|
|
51,127
|
|
|
475
|
|
|
354,552
|
|
||||
Depreciation and amortization expense
|
15,105
|
|
|
88,881
|
|
|
(476
|
)
|
|
103,510
|
|
||||
Total assets
|
$
|
4,149,080
|
|
|
$
|
1,057,880
|
|
|
$
|
(762,813
|
)
|
|
$
|
4,444,147
|
|
|
As of November 30,
|
||||||
|
2017
|
|
2016
|
||||
Property and equipment, net:
|
|
|
|
||||
United States
|
$
|
144,015
|
|
|
$
|
129,633
|
|
India
|
37,490
|
|
|
41,285
|
|
||
Philippines
|
30,805
|
|
|
36,219
|
|
||
Others
|
134,279
|
|
|
105,579
|
|
||
Total
|
$
|
346,589
|
|
|
$
|
312,716
|
|
|
As of November 30, 2017
|
|
MiTAC Holdings
(1)
|
5,449
|
|
Synnex Technology International Corp.
(2)
|
4,209
|
|
Total
|
9,658
|
|
(1)
|
Shares are held via Silver Star Developments Ltd., a wholly-owned subsidiary of MiTAC Holdings. Excludes
376
shares directly held by Matthew Miau and
218
shares indirectly held by Mathew Miau through a charitable remainder trust.
|
(2)
|
Synnex Technology International Corp. (“Synnex Technology International”) is a separate entity from the Company and is a publicly-traded corporation in Taiwan. Shares are held via Peer Development Ltd., a wholly-owned subsidiary of Synnex Technology International. MiTAC Holdings owns a noncontrolling interest of
8.7%
in MiTAC Incorporated, a privately-held Taiwanese company, which in turn holds a noncontrolling interest of
13.6%
in Synnex Technology International. Neither MiTAC Holdings nor Mr. Miau is affiliated with any person(s), entity, or entities that hold a majority interest in MiTAC Incorporated.
|
|
Fiscal Years Ended November 30,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
United States
|
$
|
257,837
|
|
|
$
|
185,936
|
|
|
$
|
197,406
|
|
Foreign
|
206,894
|
|
|
170,128
|
|
|
129,789
|
|
|||
|
$
|
464,731
|
|
|
$
|
356,064
|
|
|
$
|
327,195
|
|
|
Fiscal Years Ended November 30,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Current tax provision:
|
|
|
|
|
|
||||||
Federal
|
$
|
105,879
|
|
|
$
|
68,309
|
|
|
$
|
65,101
|
|
State
|
17,900
|
|
|
8,241
|
|
|
15,179
|
|
|||
Foreign
|
65,000
|
|
|
51,918
|
|
|
43,805
|
|
|||
|
$
|
188,779
|
|
|
$
|
128,468
|
|
|
$
|
124,085
|
|
Deferred tax provision (benefit):
|
|
|
|
|
|
||||||
Federal
|
$
|
(16,303
|
)
|
|
$
|
3,383
|
|
|
$
|
(3,536
|
)
|
State
|
(1,379
|
)
|
|
(1,608
|
)
|
|
(173
|
)
|
|||
Foreign
|
(7,539
|
)
|
|
(9,184
|
)
|
|
(1,788
|
)
|
|||
|
$
|
(25,221
|
)
|
|
$
|
(7,409
|
)
|
|
$
|
(5,497
|
)
|
|
|
|
|
|
|
||||||
Total tax provision
|
$
|
163,558
|
|
|
$
|
121,059
|
|
|
$
|
118,588
|
|
|
As of November 30,
|
||||||
|
2017
|
|
2016
|
||||
Deferred tax assets
|
$
|
31,687
|
|
|
$
|
58,564
|
|
Deferred tax liabilities
|
(113,527
|
)
|
|
(58,639
|
)
|
||
Total net deferred tax liabilities
|
$
|
(81,840
|
)
|
|
$
|
(75
|
)
|
|
As of November 30,
|
||||||
|
2017
|
|
2016
|
||||
Assets:
|
|
|
|
||||
Inventory reserves
|
$
|
15,591
|
|
|
$
|
10,804
|
|
Allowance for doubtful accounts and sales return reserves
|
14,819
|
|
|
10,444
|
|
||
Other reserves and accruals
|
45,711
|
|
|
21,950
|
|
||
State tax credits
|
10,063
|
|
|
5,345
|
|
||
Deferred and prepaid compensation
|
6,661
|
|
|
10,569
|
|
||
Net operating losses
|
14,537
|
|
|
19,243
|
|
||
Deferred revenue
|
7,000
|
|
|
4,255
|
|
||
Share-based compensation expense
|
7,709
|
|
|
6,558
|
|
||
Others
|
6,969
|
|
|
4,449
|
|
||
Gross deferred tax assets
|
129,060
|
|
|
93,617
|
|
||
Valuation allowance
|
(18,604
|
)
|
|
(21,176
|
)
|
||
Total deferred tax assets
|
$
|
110,456
|
|
|
$
|
72,441
|
|
Liabilities:
|
|
|
|
||||
Depreciation and amortization
|
$
|
(28,043
|
)
|
|
$
|
(6,231
|
)
|
Intangible assets
|
(164,253
|
)
|
|
(66,285
|
)
|
||
Total deferred tax liabilities
|
$
|
(192,296
|
)
|
|
$
|
(72,516
|
)
|
Net deferred tax liabilities
|
$
|
(81,840
|
)
|
|
$
|
(75
|
)
|
|
Fiscal Years Ended November 30,
|
|||||||
|
2017
|
|
2016
|
|
2015
|
|||
Federal statutory income tax rate
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
State taxes, net of federal income tax benefit
|
2.9
|
|
|
2.3
|
|
|
2.5
|
|
Foreign taxes
|
(3.2
|
)
|
|
(4.7
|
)
|
|
(1.3
|
)
|
Others
|
0.5
|
|
|
1.4
|
|
|
—
|
|
Effective income tax rate
|
35.2
|
%
|
|
34.0
|
%
|
|
36.2
|
%
|
Balance as of November 30, 2014
|
$
|
21,874
|
|
Additions based on tax positions related to the current year
|
3,485
|
|
|
Additions for tax positions of prior years
|
923
|
|
|
Lapse of statute of limitations
|
(3,441
|
)
|
|
Changes due to translation of foreign currencies
|
(26
|
)
|
|
Balance as of November 30, 2015
|
22,815
|
|
|
Additions based on tax positions related to the current year
|
6,727
|
|
|
Additions for tax positions of prior years
|
5,613
|
|
|
Lapse of statute of limitations
|
(2,241
|
)
|
|
Changes due to translation of foreign currencies
|
(140
|
)
|
|
Balance as of November 30, 2016
|
32,774
|
|
|
Additions based on tax positions related to the current year
|
9,022
|
|
|
Additions for tax positions of prior years
|
231
|
|
|
Settlements
|
(1,624
|
)
|
|
Lapse of statute of limitations
|
(2,300
|
)
|
|
Changes due to translation of foreign currencies
|
179
|
|
|
Balance as of November 30, 2017
|
$
|
38,282
|
|
Fiscal Years Ending November 30,
|
|
||
2018
|
$
|
94,006
|
|
2019
|
84,129
|
|
|
2020
|
68,548
|
|
|
2021
|
44,558
|
|
|
2022
|
33,479
|
|
|
thereafter
|
58,508
|
|
|
Total minimum lease payments
|
$
|
383,228
|
|
|
Fiscal Year 2017
Three Months Ended
|
|
Fiscal Year 2016
Three Months Ended
|
||||||||||||||||||||||||||||
Statements of Operations Data: (currency and share amounts in thousands except per share amounts)
|
Feb. 28,
2017
|
|
May 31,
2017
|
|
Aug. 31,
2017
|
|
Nov. 30,
2017
|
|
Feb. 29,
2016 |
|
May 31,
2016 |
|
Aug. 31,
2016 |
|
Nov. 30,
2016 |
||||||||||||||||
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Products
|
$
|
3,046,621
|
|
|
$
|
3,458,243
|
|
|
$
|
3,784,599
|
|
|
$
|
4,781,408
|
|
|
$
|
2,784,837
|
|
|
$
|
3,047,638
|
|
|
$
|
3,267,287
|
|
|
$
|
3,390,665
|
|
Services
|
474,248
|
|
|
478,025
|
|
|
492,087
|
|
|
530,469
|
|
|
340,785
|
|
|
331,861
|
|
|
402,527
|
|
|
496,237
|
|
||||||||
Total revenue
|
3,520,869
|
|
|
3,936,268
|
|
|
4,276,686
|
|
|
5,311,877
|
|
|
3,125,622
|
|
|
3,379,499
|
|
|
3,669,814
|
|
|
3,886,902
|
|
||||||||
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Products
|
(2,880,553
|
)
|
|
(3,265,630
|
)
|
|
(3,590,007
|
)
|
|
(4,525,904
|
)
|
|
(2,631,130
|
)
|
|
(2,880,859
|
)
|
|
(3,096,529
|
)
|
|
(3,206,961
|
)
|
||||||||
Services
|
(298,533
|
)
|
|
(298,393
|
)
|
|
(311,735
|
)
|
|
(324,005
|
)
|
|
(210,300
|
)
|
|
(204,610
|
)
|
|
(247,328
|
)
|
|
(301,155
|
)
|
||||||||
Gross profit
|
341,783
|
|
|
372,245
|
|
|
374,944
|
|
|
461,968
|
|
|
284,192
|
|
|
294,030
|
|
|
325,957
|
|
|
378,786
|
|
||||||||
Selling, general and administrative expenses
|
(240,024
|
)
|
|
(247,115
|
)
|
|
(252,728
|
)
|
|
(302,108
|
)
|
|
(208,566
|
)
|
|
(218,724
|
)
|
|
(227,935
|
)
|
|
(248,144
|
)
|
||||||||
Operating income
|
101,759
|
|
|
125,130
|
|
|
122,216
|
|
|
159,860
|
|
|
75,626
|
|
|
75,306
|
|
|
98,022
|
|
|
130,642
|
|
||||||||
Interest expense and finance charges, net
|
(8,182
|
)
|
|
(8,962
|
)
|
|
(9,754
|
)
|
|
(18,459
|
)
|
|
(6,216
|
)
|
|
(6,512
|
)
|
|
(7,517
|
)
|
|
(8,748
|
)
|
||||||||
Other income (expense), net
|
(323
|
)
|
|
(206
|
)
|
|
1,854
|
|
|
(202
|
)
|
|
4,034
|
|
|
949
|
|
|
(378
|
)
|
|
856
|
|
||||||||
Income before income taxes
|
93,254
|
|
|
115,962
|
|
|
114,316
|
|
|
141,199
|
|
|
73,444
|
|
|
69,743
|
|
|
90,127
|
|
|
122,750
|
|
||||||||
Provision for income taxes
|
(31,465
|
)
|
|
(42,814
|
)
|
|
(39,153
|
)
|
|
(50,126
|
)
|
|
(26,807
|
)
|
|
(25,386
|
)
|
|
(31,426
|
)
|
|
(37,440
|
)
|
||||||||
Net income
|
61,789
|
|
|
73,148
|
|
|
75,163
|
|
|
91,073
|
|
|
46,637
|
|
|
44,357
|
|
|
58,701
|
|
|
85,310
|
|
||||||||
Net (income) loss attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(75
|
)
|
|
5
|
|
|
3
|
|
|
8
|
|
||||||||
Net income attributable to SYNNEX Corporation
|
$
|
61,789
|
|
|
$
|
73,148
|
|
|
$
|
75,163
|
|
|
$
|
91,073
|
|
|
$
|
46,562
|
|
|
$
|
44,362
|
|
|
$
|
58,704
|
|
|
$
|
85,318
|
|
Earnings attributable to SYNNEX Corporation per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic
|
$
|
1.55
|
|
|
$
|
1.83
|
|
|
$
|
1.88
|
|
|
$
|
2.28
|
|
|
$
|
1.17
|
|
|
$
|
1.12
|
|
|
$
|
1.48
|
|
|
$
|
2.14
|
|
Diluted
|
$
|
1.54
|
|
|
$
|
1.83
|
|
|
$
|
1.87
|
|
|
$
|
2.26
|
|
|
$
|
1.17
|
|
|
$
|
1.11
|
|
|
$
|
1.47
|
|
|
$
|
2.13
|
|
Weighted-average common shares outstanding - basic
|
39,494
|
|
|
39,533
|
|
|
39,563
|
|
|
39,635
|
|
|
39,224
|
|
|
39,283
|
|
|
39,346
|
|
|
39,431
|
|
||||||||
Weighted-average common shares outstanding - diluted
|
39,705
|
|
|
39,711
|
|
|
39,748
|
|
|
39,867
|
|
|
39,462
|
|
|
39,477
|
|
|
39,534
|
|
|
39,647
|
|
||||||||
Cash dividends declared per share
|
$
|
0.25
|
|
|
$
|
0.25
|
|
|
$
|
0.25
|
|
|
$
|
0.30
|
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
0.25
|
|
|
|
|
Additions/Deductions
|
|
|
|
|||||||||
|
Balances at
Beginning of
Fiscal Year
|
|
Charged to Revenue and Expense, net
|
|
Reclassifications and
Write-offs
|
|
Balances at
End of Fiscal Year
|
||||||||
Fiscal Year Ended November 30, 2015
|
|
|
|
|
|
|
|
||||||||
Allowance for sales returns-gross
|
$
|
55,309
|
|
|
$
|
(11,696
|
)
|
|
$
|
602
|
|
|
$
|
44,215
|
|
Allowance for deferred tax assets
|
7,101
|
|
|
10,476
|
|
|
(686
|
)
|
|
16,891
|
|
||||
Fiscal Year Ended November 30, 2016
|
|
|
|
|
|
|
|
||||||||
Allowance for sales returns-gross
|
$
|
44,215
|
|
|
$
|
5,761
|
|
|
$
|
15
|
|
|
$
|
49,991
|
|
Allowance for deferred tax assets
|
16,891
|
|
|
4,651
|
|
|
(366
|
)
|
|
21,176
|
|
||||
Fiscal Year Ended November 30, 2017
|
|
|
|
|
|
|
|
||||||||
Allowance for sales returns-gross
|
$
|
49,991
|
|
|
$
|
2,595
|
|
|
$
|
553
|
|
|
$
|
53,139
|
|
Allowance for deferred tax assets
|
21,176
|
|
|
(2,385
|
)
|
|
(187
|
)
|
|
18,604
|
|
Plan Category
|
Number of securities
to be issued upon
exercise of
outstanding options
(a)
|
|
Weighted-
average
exercise price of
outstanding
options
(b)
|
|
Number of securities remaining
available for future issuance
under equity compensation
plans (excluding securities
reflected in column (a)
(c)
|
|||||
Equity compensation plan approved by security holders
|
616,579
|
|
(1)
|
$
|
72.42
|
|
|
2,023,278
|
|
(2)(3)
|
(1)
|
Includes the number of shares to be issued under our 2003 Stock Incentive Plan and 2013 Stock Incentive Plan. Please see Note 4 - Stockholders’ Equity of the Notes to the Consolidated Financial Statements for further information regarding the plans.
|
(2)
|
Includes the number of shares reserved for issuance under our 2013 Stock Incentive Plan. The number of shares authorized for issuance under our 2013 Stock Incentive Plan will not exceed the sum of (1) 1,696,409 shares of common stock plus (2)
any shares under the 2003 Stock Incentive Plan that are subject to outstanding awards to the extent those awards expire, terminate or are canceled for any reason prior to exercise without the issuance or delivery of such shares, any shares subject to vesting restrictions that are subsequently forfeited, and any reserved shares not issued or subject to outstanding awards, up to a maximum of 2,750,000 shares. Please see Note 4 - Stockholders’ Equity of the Notes to the Consolidated Financial Statements for further information regarding the 2013 Stock Incentive Plan.
|
(3)
|
Includes
684,132
shares available-for-sale pursuant to our 2014 Employee Stock Purchase Plan. Shares of common stock will be purchased at a price equal to 95% of the fair market value per share of common stock on either the first trading day of the offering period or on the last trading day of the accumulation period, whichever is less. Please see Note 4-Stockholders’ Equity of the Notes to the Consolidated Financial Statements for further information regarding the 2014 Employee Stock Purchase Plan.
|
(1)
|
Financial Statements
|
(2)
|
Financial Statements Schedule
|
(3)
|
Exhibits
|
Exhibit
Number
|
|
Description of Document
|
2.1
|
|
|
|
|
|
2.2+
|
|
|
|
|
|
2.3+
|
|
|
|
|
|
2.4+
|
|
|
|
|
|
3(i).1
|
|
|
|
|
|
3(ii).2
|
|
|
|
|
|
4.1
|
|
|
|
|
|
10.1#
|
|
|
|
|
|
10.2#
|
|
|
|
|
|
10.3#
|
|
|
10.4
|
|
Exhibit
Number
|
|
Description of Document
|
|
|
|
10.5#
|
|
|
|
|
|
10.6
|
|
|
|
|
|
10.7
|
|
|
|
|
|
10.8
|
|
|
|
|
|
10.9
|
|
|
|
|
|
10.10#
|
|
|
|
|
|
10.11#
|
|
|
|
|
|
10.12#
|
|
|
|
|
|
10.13#
|
|
|
|
|
|
10.14#
|
|
|
|
|
|
10.15#
|
|
|
|
|
|
10.16#
|
|
|
|
|
|
10.17#
|
|
|
|
|
|
10.18#
|
|
|
|
|
|
10.19#
|
|
|
|
|
|
10.20
|
|
|
|
|
|
10.21
|
|
|
|
|
|
10.22#
|
|
|
|
|
|
Exhibit
Number
|
|
Description of Document
|
10.23#
|
|
|
|
|
|
10.24#
|
|
|
|
|
|
10.25
|
|
|
|
|
|
10.26#
|
|
|
|
|
|
10.27
|
|
|
|
|
|
10.28#
|
|
|
|
|
|
10.29#
|
|
|
|
|
|
10.30
|
|
|
|
|
|
10.31#
|
|
|
|
|
|
10.32#
|
|
|
|
|
|
10.33#
|
|
|
|
|
|
10.34
|
|
|
|
|
|
10.35
|
|
|
|
|
|
10.36
|
|
|
|
|
|
10.37
|
|
|
|
|
|
10.38†
|
|
|
|
|
|
Exhibit
Number
|
|
Description of Document
|
10.39
|
|
|
|
|
|
10.40#
|
|
|
|
|
|
10.41#
|
|
|
|
|
|
10.42#
|
|
|
|
|
|
10.43
|
|
|
|
|
|
10.44
|
|
|
|
|
|
10.45
|
|
|
|
|
|
10.46
|
|
|
|
|
|
10.47
|
|
|
|
|
|
10.48#
|
|
|
|
|
|
21.1
|
|
|
|
|
|
23.1
|
|
|
|
|
|
24.1
|
|
|
|
|
|
31.1
|
|
|
|
|
|
31.2
|
|
|
|
|
|
32.1*
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
Exhibit
Number
|
|
Description of Document
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
*
|
In accordance with Item 601(b)(32)(ii) of Regulation S-K and SEC Release Nos. 33-8238 and 34-47986, Final Rule: Management’s Reports on Internal Control Over Financial Reporting and Certification of Disclosure in Exchange Act Periodic Reports, the certifications furnished in Exhibit 32.1 hereto are deemed to accompany this Form 10-K and will not be deemed “filed” for purpose of Section 18 of the Exchange Act. Such certifications will not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference.
|
†
|
Portions of this exhibit have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment.
|
+
|
The schedules and exhibits to this agreement have been omitted pursuant to Item 601(b)(2) of Regulation S-K. A copy of any omitted schedule and/or exhibit will be furnished to the Securities and Exchange Commission upon request.
|
By:
|
|
/s/ Kevin M. Murai
|
|
|
|
Kevin M. Murai
President and Chief Executive Officer
|
|
Name
|
|
Title
|
|
Date
|
/s/ Kevin M. Murai
|
|
President and Chief Executive Officer (Principal Executive Officer) and Director
|
|
January 29, 2018
|
Kevin M. Murai
|
|
|
|
|
|
|
|
|
|
/s/ Marshall W. Witt
|
|
Chief Financial Officer (Principal Financial and Principal Accounting Officer)
|
|
January 29, 2018
|
Marshall W. Witt
|
|
|
|
|
|
|
|
|
|
/s/ Dwight A. Steffensen
|
|
Chairman of the Board
|
January 29, 2018
|
|
Dwight A. Steffensen
|
|
|
|
|
|
|
|
|
|
/s/ Matthew F.C. Miau
|
|
Chairman Emeritus of the Board
|
January 29, 2018
|
|
Matthew F.C. Miau
|
|
|
|
|
|
|
|
|
|
/s/ Fred A. Breidenbach
|
|
Director
|
January 29, 2018
|
|
Fred A. Breidenbach
|
|
|
|
|
|
|
|
|
|
/s/ Hau Lee
|
|
Director
|
January 29, 2018
|
|
Hau Lee
|
|
|
|
|
|
|
|
|
|
/s/ Dennis Polk
|
|
Director
|
January 29, 2018
|
|
Dennis Polk
|
|
|
|
|
|
|
|
|
|
/s/ Gregory L. Quesnel
|
|
Director
|
January 29, 2018
|
|
Gregory L. Quesnel
|
|
|
|
|
|
|
|
|
|
/s/ Thomas S. Wurster
|
|
Director
|
January 29, 2018
|
|
Thomas S. Wurster
|
|
|
|
|
|
|
|
||
/s/ Duane E. Zitzner
|
|
Director
|
January 29, 2018
|
|
Duane E. Zitzner
|
|
|
|
|
|
|
|
||
/s/ Andrea M. Zulberti
|
|
Director
|
January 29, 2018
|
|
Andrea M. Zulberti
|
|
|
|
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/s/ Ann F. Vezina
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Director
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January 29, 2018
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Ann F. Vezina
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Re:
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Seventh Amendment to Credit Agreement dated as of November 27, 2013 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “
Credit Agreement
”) among SYNNEX CORPORATION, a Delaware corporation (the “
Borrower
”), the Guarantors party thereto, the Lenders from time to time party thereto and Bank of America, N.A., as Administrative Agent, Swing Line Lender and an L/C Issuer
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Name of the Subsidiary
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State or Country in Which Organized
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2117974 Ontario Inc.
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Canada
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Afina Peru, S.A.C.
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Peru
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Afina Sistemas Informaticos, S.L
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Spain
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Afina Sistemas, Sociedade Ltda.
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Brazil
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Afina Venezuela, C.A.
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Venezuela
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Afina, S.R.L.
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Argentina
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Afinasis, S.A. de C.V.
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Mexico
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Afina Sistemas Informaticos Limitada
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Chile
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Beijing Jumeng Technology Development Ltd.
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China
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BPO Holdco Coöperatief U.A.
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The Netherlands
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CNX Services Jamaica Limited
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Jamaica
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ComputerLand Corporation
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California
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Comstor Colombia S.A.S.
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Colombia
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Concentrix (Canada) Limited
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Canada
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Concentrix Brazil Outsourcing of Processes, Administrative Services and Technologies to Enterprises Ltda.
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Brazil
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Concentrix Business Services UK Limited
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The United Kingdom
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Concentrix Coop Holdco Limited
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Bermuda
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Concentrix Corporation
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New York
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Concentrix Costa Rica, S.A.
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Costa Rica
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Concentrix CRM Services Germany GmbH
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Germany
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Concentrix CRM Services Hungary Kft
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Hungary
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Concentrix CRM Services RO S.R.L
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Romania
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Concentrix CRM Services UK Limited
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The United Kingdom
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Concentrix Daksh Services India Private Limited
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India
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Concentrix Daksh Services Philippines Corporation
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The Philippines
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Concentrix Europe Limited
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The United Kingdom
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Concentrix Free Trade Zone, S.A.
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Costa Rica
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Concentrix GBS Limited
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Bermuda
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Concentrix Global Holdings, Inc.
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Delaware
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Concentrix Gmbh
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Austria
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Concentrix HK Limited
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Hong Kong, China
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Concentrix Hungary KFT
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Hungary
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Concentrix Insurance Administration Solutions Corporation
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South Carolina
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Concentrix Investment Holdings Corporation
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British Virgin Islands
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Concentrix Investment Holdings Singapore 1 Pte. Ltd
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Singapore
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Concentrix Investment Holdings Singapore 2 Pte. Ltd
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Singapore
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Concentrix Logistics Corporation
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British Virgin Islands
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Concentrix México, S. de R.L. de C.V
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Mexico
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Concentrix New (BVI) Corporation
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British Virgin Islands
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Concentrix NewHK Limited
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Hong Kong, China
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Concentrix Nicaragua S.A.
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Nicaragua
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Concentrix Services (Canada) Limited
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Canada
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Concentrix Services (Colombia) S.A.S.
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Colombia
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Concentrix Services (Dalian) Co., Ltd.
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China
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Concentrix Services (Germany) GmbH
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Germany
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Concentrix Services (Ireland) Limited
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Ireland
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Concentrix Services (Netherlands) B.V.
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The Netherlands
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Concentrix Services (New Zealand) Limited
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New Zealand
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Concentrix Services (Poland) spółka z o.o.
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Poland
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Concentrix Services (Saudi Arabia) Corporation LLC
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Saudi Arabia
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Concentrix Services (Singapore) Pte. Ltd.
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Singapore
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Concentrix Services (South Africa) (Pty) Ltd
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South Africa
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Concentrix Services (Thailand) Co., Ltd
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Thailand
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Concentrix Services (Uruguay) S.A.
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Uruguay
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Concentrix Services Bulgaria EOOD
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Bulgaria
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Concentrix Services Corporation
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British Virgin Islands
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Concentrix Services India Private Limited
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India
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Concentrix Services Korea Limited
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South Korea
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Concentrix Services Mexico, Sociedad Anonima De Capital Variable
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Mexico
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Concentrix Services Philippines, Inc.
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Philippines
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Concentrix Services Portugal, Sociedade Unipessoal, LDA
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Portugal
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Concentrix Services Pty Ltd
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Australia
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Concentrix Services Pty Ltd ROHQ
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The Philippines
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Concentrix Services Slovakia s.r.o.
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Slovakia
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Concentrix Services Spain, S.L.U.
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Spain
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Concentrix Services UK Limited
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The United Kingdom
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Concentrix Services US, Inc.
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Delaware
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Concentrix Technologies (India) Private Limited
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India
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Concentrix Technologies Limited
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The United Kingdom
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Concentrix Technologies Services (Canada) Limited
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Canada
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Concentrix Technology FZ-LLC
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The United Arab Emirates
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CyberLogistics Corporation
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Japan
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Dalian Jumeng Technology Development Ltd.
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China
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EMJ America, Inc.
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North Carolina
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GLS Software S. de R.L.
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Panama
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Guiyang Jumeng Technology Development Ltd.
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China
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Hyve IT Solutions Israel Ltd
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Israel
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Hyve IT Solutions South Africa (PTY) Ltd.
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South Africa
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Hyve Solutions (Taiwan) Corporation
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Taiwan
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Hyve Solutions Beijing Information Technologies Ltd
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China
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Hyve Solutions Canada Limited
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Canada
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Hyve Solutions China Limited
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China
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Hyve Solutions Corporation
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California
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Hyve Solutions Europe Limited
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The United Kingdom
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Hyve Solutions HK Limited
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Hong Kong, China
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Hyve Solutions Holding Company Limited
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The United Kingdom
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Hyve Solutions India LLP
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India
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Hyve Solutions Japan K.K.
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Japan
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Hyve Solutions Korea Limited
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South Korea
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Hyve Solutions Malaysia SDN.BHD.
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Malaysia
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Hyve Solutions New Zealand Limited
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New Zealand
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Hyve Solutions Singapore Pte. Ltd
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Singapore
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Hyve Solutions US Global Holding Corporation
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Delaware
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Infotec SYNNEX Holdings K.K.
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Japan
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Japan Concentrix KK
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Japan
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Lasting Holdings Corporation
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California
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License Online, Inc
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California
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Maple Investment Holdings 3 Pte. Ltd
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Singapore
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Minacs Mexico S. de R.L. de C.V.
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Mexico
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Pegasus Telecom LLC
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Delaware
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Pt Konten Teknologi Servis (Indonesia)
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Indonesia
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SCGS (Malaysia) SDN. BHD.
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Malaysia
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Sennex Enterprises Limited
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Hong Kong, China
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Servicios Afinasis S.A. de C.V.
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Mexico
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Shenzhen Shunrong Telecommunication Technologies Ltd. Foshan Branch
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China
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Shenzhen Shunrong Telecommunication Technologies Ltd. (dba Concentrix China)
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China
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Sichuan 86Bridge Information Technology Ltd.
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China
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SIT Funding Corporation
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Delaware
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SYNNEX Canada Limited
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Canada
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SYNNEX de México, S.A. de C.V.
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Mexico
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SYNNEX Finance Hybrid II, LLC
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California
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SYNNEX Information Technologies (Beijing) Ltd.
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China
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SYNNEX Information Technologies (Chengdu) Ltd.
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China
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SYNNEX Information Technologies (China) Ltd.
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China
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SYNNEX Infotec Corporation
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Japan
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SYNNEX Servicios, S.A. de C.V.
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Mexico
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SYNNEX Software Technologies (HK) Limited
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Hong Kong, China
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SYNNEX-Concentrix UK Limited
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The United Kingdom
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The Global Email Trustee Limited
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The United Kingdom
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Tigerspike FZ-LLC
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United Arab Emirates
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Tigerspike Holdings Pty Ltd
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Australia
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Tigerspike KK
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Japan
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Tigerspike Ltd
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The United Kingdom
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Tigerspike Products Pte. Ltd.
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Singapore
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Tigerspike Pte. Ltd.
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Singapore
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Tigerspike Pty Ltd
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Australia
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Tigerspike, Inc.
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Delaware
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Velami Holdings Corporation
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The Philippines
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Vietnam Concentrix Services Company Limited
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Vitenam
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Westcon Brasil, Ltda.
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Brazil
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Westcon CALA, Inc.
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Delaware
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Westcon Canada Systems (WCSI) Inc.
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Canada
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Westcon Corporation Ecuador WCE Cia. Ltda
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Ecuador
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Westcon Group Colombia Limitada
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Colombia
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Westcon Group Costa Rica S.A.
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Costa Rica
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Westcon Group El Salvador, S.A. de C.V.
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El Salvador
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Westcon Group Guatemala S.A.
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Guatemala
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Westcon Group Inc.
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Delaware
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Westcon Group North America, Inc.
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New York
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Westcon Group Panama S.A.
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Panama
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Westcon Mexico, S.A. de C.V.
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Mexico
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WG-UK Holding Company Limited
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The United Kingdom
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WG-US HoldCo Inc
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Delaware
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a)
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designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
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evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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a)
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all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b)
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any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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/s/ Kevin M. Murai
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Kevin M. Murai
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President and Chief Executive Officer
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a)
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designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
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evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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a)
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all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b)
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any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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/s/ Marshall W. Witt
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Marshall W. Witt
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Chief Financial Officer
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/s/ Kevin M. Murai
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Kevin M. Murai
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/s/ Marshall W. Witt
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Marshall W. Witt
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