snx-20230228

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________________________________________________________

FORM 10-Q

_______________________________________________________________________

(Mark One)


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended February 28, 2023


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to _________

Commission File Number: 001-31892

_______________________________________________________________________

TD SYNNEX CORPORATION

(Exact name of registrant as specified in its charter)

_______________________________________________________________________


Delaware						94-2703333
(State or other jurisdiction of incorporation or organization)						(IRS Employer Identification Number)

44201 Nobel Drive, Fremont, California						94538
(Address of principal executive offices)						(Zip Code)

(510) 656-3333

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.001 per share

SNX

The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	x	Accelerated filer	o
Non-accelerated filer	o	Smaller reporting company	o
Emerging growth company	o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.


Class						Outstanding as of March 29, 2023
Common Stock, $0.001 par value						94,357,028

Table of Contents

TD SYNNEX CORPORATION

FORM 10-Q

INDEX


		Page
PART I	FINANCIAL INFORMATION	3
Item 1.	Financial Statements	3
	Consolidated Balance Sheets	3
	Consolidated Statements of Operations	4
	Consolidated Statements of Comprehensive Income	5
	Consolidated Statements of Stockholders’ Equity	6
	Consolidated Statements of Cash Flows	7
	Notes to the Consolidated Financial Statements	8















Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	42
Item 4.	Controls and Procedures	42

PART II	OTHER INFORMATION	43
Item 1A.	Risk Factors	43
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	43
Item 6.	Exhibits	44
Signatures		45

Table of Contents

PART I - FINANCIAL INFORMATION

ITEM 1. Financial Statements

TD SYNNEX CORPORATION

CONSOLIDATED BALANCE SHEETS

(currency and share amounts in thousands, except par value)

(unaudited)


	February 28, 2023		November 30, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	539,285	$	522,604
Accounts receivable, net	9,357,059		9,420,999
Receivables from vendors, net	974,720		819,135
Inventories	8,372,834		9,066,620
Other current assets	721,338		671,507
Total current assets	19,965,236		20,500,865
Property and equipment, net	429,882		421,064
Goodwill	3,832,762		3,803,850
Intangible assets, net	4,390,100		4,422,877
Other assets, net	617,186		585,342
Total assets	$	29,235,166	$	29,733,998

LIABILITIES AND EQUITY
Current liabilities:
Borrowings, current	$	572,771	$	268,128
Accounts payable	12,997,681		13,988,980
Other accrued liabilities	2,220,164		2,171,613
Total current liabilities	15,790,616		16,428,721
Long-term borrowings	3,815,952		3,835,665
Other long-term liabilities	528,842		501,856
Deferred tax liabilities	951,170		942,250

Total liabilities	21,086,580		21,708,492
Commitments and contingencies (Note 14)
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000 shares authorized, no shares issued or outstanding	—		—
Common stock, $0.001 par value, 200,000 shares authorized, 98,901 and 98,696 shares issued as of February 28, 2023 and November 30, 2022, respectively	99		99
Additional paid-in capital	7,400,752		7,374,100
Treasury stock, 5,287 and 4,049 shares as of February 28, 2023 and November 30, 2022, respectively	(458,698)		(337,217)
Accumulated other comprehensive loss	(635,609)		(719,710)
Retained earnings	1,842,042		1,708,234
Total stockholders' equity	8,148,586		8,025,506
Total liabilities and equity	$	29,235,166	$	29,733,998

(Amounts may not add or compute due to rounding)

The accompanying Notes are an integral part of these Consolidated Financial Statements (unaudited).

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TD SYNNEX CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(currency and share amounts in thousands, except per share amounts)

(unaudited)


	Three Months Ended
	February 28, 2023		February 28, 2022
Revenue	$	15,125,371	$	15,469,977
Cost of revenue	(14,121,804)		(14,501,316)
Gross profit	1,003,567		968,661
Selling, general and administrative expenses	(654,223)		(652,851)
Acquisition, integration and restructuring costs	(51,182)		(93,370)
Operating income	298,162		222,440
Interest expense and finance charges, net	(80,200)		(42,343)
Other expense, net	(156)		(4,268)
Income before income taxes	217,806		175,829
Provision for income taxes	(50,786)		(43,505)
Net income	$	167,020	$	132,324
Earnings per common share:
Basic	$	1.76	$	1.38
Diluted	$	1.75	$	1.37
Weighted-average common shares outstanding:
Basic	94,259		95,584
Diluted	94,539		95,892

(Amounts may not add or compute due to rounding)

The accompanying Notes are an integral part of these Consolidated Financial Statements (unaudited).

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TD SYNNEX CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(currency in thousands)

(unaudited)


	Three Months Ended
	February 28, 2023		February 28, 2022
Net income	$	167,020	$	132,324
Other comprehensive income:

Unrealized gains on cash flow hedges during the period, net of tax (expense) of ($289) and ($2,918) for the three months ended February 28, 2023 and 2022, respectively	866		8,902
Reclassification of net (gains) losses on cash flow hedges to net income, net of tax expense (benefit) of $285 and ($2,459) for the three months ended February 28, 2023 and 2022, respectively	(854)		7,501
Total change in unrealized gains on cash flow hedges, net of taxes	12		16,403
Foreign currency translation adjustments and other, net of tax benefit (expense) of $1,919 and ($75) for the three months ended February 28, 2023 and 2022, respectively	84,089		2,776
Other comprehensive income	84,101		19,179
Comprehensive income	$	251,121	$	151,503

(Amounts may not add or compute due to rounding)

The accompanying Notes are an integral part of these Consolidated Financial Statements (unaudited).

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TD SYNNEX CORPORATION

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(currency in thousands, except per share amounts)

(unaudited)


	Three Months Ended
	February 28, 2023		February 28, 2022
Total Stockholders' equity, beginning balance	$	8,025,506	$	7,905,975

Common stock and additional paid-in capital:
Beginning balance	7,374,199		7,271,435
Share-based compensation	24,595		20,327
Common stock issued for employee benefit plans	2,057		2,116

Ending balance	7,400,851		7,293,878

Treasury stock:
Beginning balance	(337,217)		(201,139)
Repurchases of common stock for tax withholdings on equity awards	(6,681)		(5,478)
Repurchases of common stock	(114,800)		(23,757)
Ending balance	(458,698)		(230,374)

Retained earnings:
Beginning balance	1,708,234		1,171,873

Net income	167,020		132,324
Cash dividends declared	(33,212)		(28,829)
Ending balance	1,842,042		1,275,368

Accumulated other comprehensive loss:
Beginning balance	(719,710)		(336,194)

Other comprehensive income	84,101		19,179
Ending balance	(635,609)		(317,015)

Total stockholders' equity, ending balance	$	8,148,586

SEC Form 10-Q filed by TD SYNNEX Corporation