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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2018	Oct. 30, 2018
Document And Entity Information
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Trading Symbol	PCCC
Entity Registrant Name	PC CONNECTION INC
Entity Central Index Key	0001050377
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		26,730,061

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current Assets:
Cash and cash equivalents	$ 102,243	$ 49,990
Accounts receivable, net	400,831	449,682
Inventories, net	105,283	106,753
Income taxes receivable	2,658	3,933
Prepaid expenses and other current assets	6,068	5,737
Total current assets	617,083	616,095
Property and equipment, net	48,176	41,491
Goodwill	73,602	73,602
Intangibles assets, net	9,924	11,025
Other assets	1,442	5,638
Total Assets	750,227	747,851
Current Liabilities:
Accounts payable	165,190	194,257
Accrued payroll	20,359	22,662
Accrued expenses and other liabilities	23,475	31,096
Total current liabilities	209,024	248,015
Deferred income taxes	16,125	15,696
Other liabilities	1,836	1,888
Total Liabilities	226,985	265,599
Stockholders' Equity:
Common stock	287	287
Additional paid-in capital	115,039	114,154
Retained earnings	428,162	383,673
Treasury stock, at cost	(20,246)	(15,862)
Total Stockholders' Equity	523,242	482,252
Total Liabilities and Stockholders' Equity	$ 750,227	$ 747,851

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Condensed Consolidated Statements of Income
Net sales	$ 658,504	$ 729,230	$ 1,989,969	$ 2,149,616
Cost of sales	558,060	633,087	1,685,685	1,867,070
Gross profit	100,444	96,143	304,284	282,546
Selling, general and administrative expenses	81,494	74,404	244,915	226,915
Income from operations	18,950	21,739	59,369	55,631
Interest income (expense)	114	(8)	412	20
Income before taxes	19,064	21,731	59,781	55,651
Income tax provision	(5,298)	(8,614)	(16,489)	(21,517)
Net income	$ 13,766	$ 13,117	$ 43,292	$ 34,134
Earnings per common share:
Basic	$ 0.52	$ 0.49	$ 1.62	$ 1.28
Diluted	$ 0.51	$ 0.49	$ 1.61	$ 1.27
Shares used in computation of earnings per common share:
Basic	26,716	26,802	26,745	26,754
Diluted	26,902	26,899	26,883	26,886

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings	Treasury Shares	Total
Balance at Dec. 31, 2017	$ 287	$ 114,154	$ 383,673	$ (15,862)	$ 482,252
Balance (in shares) at Dec. 31, 2017	28,709			(1,856)
Stock-based compensation expense		207			207
Repurchases of treasury shares				$ (2,998)	(2,998)
Repurchase of treasury shares (in shares)				(116)
Net income			11,300		11,300
Balance at Mar. 31, 2018	$ 287	114,361	396,170	$ (18,860)	491,958
Balance (in shares) at Mar. 31, 2018	28,709			(1,972)
Balance at Dec. 31, 2017	$ 287	114,154	383,673	$ (15,862)	482,252
Balance (in shares) at Dec. 31, 2017	28,709			(1,856)
Net income					43,292
Balance at Sep. 30, 2018	$ 287	115,039	428,162	$ (20,246)	523,242
Balance (in shares) at Sep. 30, 2018	28,756			(2,026)
Cumulative effect of adoption of ASC 606			1,197		1,197
Balance at Mar. 31, 2018	$ 287	114,361	396,170	$ (18,860)	491,958
Balance (in shares) at Mar. 31, 2018	28,709			(1,972)
Stock-based compensation expense		257			257
Repurchases of treasury shares				$ (1,386)	(1,386)
Repurchase of treasury shares (in shares)				(54)
Issuance of common stock under Employee Stock Purchase Plan		605			605
Issuance of common stock under Employee Stock Purchase Plan (in shares)	19
Net income			18,226		18,226
Balance at Jun. 30, 2018	$ 287	115,223	414,396	$ (20,246)	509,660
Balance (in shares) at Jun. 30, 2018	28,728			(2,026)
Stock-based compensation expense		273			273
Restricted stock units vested (in shares)	28
Shares withheld for taxes paid on stock awards		(457)			(457)
Net income			13,766		13,766
Balance at Sep. 30, 2018	$ 287	$ 115,039	$ 428,162	$ (20,246)	$ 523,242
Balance (in shares) at Sep. 30, 2018	28,756			(2,026)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash Flows provided by Operating Activities:
Net income	$ 43,292	$ 34,134
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	10,362	8,645
Provision for doubtful accounts	1,428	1,116
Stock-based compensation expense	737	560
Deferred income taxes	429	164
Loss on disposal of fixed assets	51
Changes in assets and liabilities:
Accounts receivable	63,881	28,101
Inventories	(9,399)	(16,189)
Prepaid expenses, income tax receivables and other current assets	812	(2,191)
Other non-current assets	283	(3,945)
Accounts payable	(29,361)	(13,162)
Accrued expenses and other liabilities	(1,262)	(8,872)
Net cash provided by operating activities	81,253	28,361
Cash Flows used in Investing Activities:
Purchases of equipment	(15,641)	(7,944)
Net cash used in investing activities	(15,641)	(7,944)
Cash Flows used in Financing Activities:
Proceeds from short-term borrowings	859
Repayment of short-term borrowings	(859)
Purchase of treasury shares	(4,384)
Dividend payment	(9,123)	(9,041)
Exercise of stock options		1,679
Issuance of stock under Employee Stock Purchase Plan	605	603
Payment of payroll taxes on stock-based compensation through shares withheld	(457)	(500)
Net cash used in financing activities	(13,359)	(7,259)
Increase in cash and cash equivalents	52,253	13,158
Cash and cash equivalents, beginning of period	49,990	49,180
Cash and cash equivalents, end of period	102,243	62,338
Non-cash Investing and Financing Activities:
Accrued capital expenditures	1,055	294
Supplemental Cash Flow Information:
Income taxes paid	$ 15,134	$ 24,293

BASIS OF PRESENTATION

9 Months Ended

Sep. 30, 2018

Summary of Significant Accounting Policies

Basis of Presentation

Note 1–Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of PC Connection, Inc. and its subsidiaries (the “Company,” “we,” “us,” or “our”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission regarding interim financial reporting and in accordance with accounting principles generally accepted in the United States of America. Such principles were applied on a basis consistent with the accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2017, filed with the Securities and Exchange Commission (the “SEC”), other than the adoption of Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers” (“ASC 606”) under the modified retrospective method as of January 1, 2018, as discussed below. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements contained in our Annual Report on Form 10-K.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the results of operations for the interim periods reported and of the Company’s financial condition as of the date of the interim balance sheet. The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated through the date of issuance of these financial statements. The operating results for the three and nine months ended September 30, 2018 may not be indicative of the results expected for any succeeding quarter or the entire year ending December 31, 2018.

Revenue Recognition

On January 1, 2018, we adopted ASC 606, which replaced existing revenue recognition rules with a comprehensive revenue measurement and recognition standard and expanded disclosure requirements. See Adoption of Recently Issued Accounting Standards within this footnote for additional information.

Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. In most instances, when several performance obligations are aggregated into one single transaction, these performance obligations are fulfilled at the same point in time. We account for an arrangement when it has approval and commitment from both parties, the rights are identified, the contract has commercial substance, and collectability of consideration is probable. We generally obtain oral or written purchase authorizations from our customers for a specified amount of product at a specified price, which constitutes an arrangement. Revenue is recognized at the amount expected to be collected, net of any taxes collected from customers, which are subsequently remitted to governmental authorities. We generally invoice for our products at the time of shipping, and accordingly there is not a significant financing component included in our arrangements.

Nature of Products and Services

Information technology (“IT”) products typically represent a distinct performance obligation, and revenue is recognized at the point in time when control is transferred to the customer which is generally upon delivery to the customer. We recognize revenue as the principal in the transaction with the customer (i.e., on a gross basis), as we control the product prior to delivery to the customer and derive the economic benefits from the sales transaction given our control over customer pricing.

We do not recognize revenue for goods that remain in our physical possession before the customer has the ability to direct the use of, and obtain substantially all of the remaining benefits from the products, the goods are ready for physical transfer to and identified as belonging to the customer, and when we have no ability to use the product or to direct it to another customer.

Licenses for on-premise software provide the customer with a right to take possession of the software. Customers may purchase perpetual licenses or enter into subscriptions to the licensed software. We are the principal in these transactions and recognize revenue for the on-premise license at the point in time when the software is made available to the customer and the commencement of the term of the software license or when the renewal term begins, as applicable.

For certain on-premise licenses for security software, the customer derives substantially all of the benefit from these arrangements through the third-party delivered software maintenance, which provides software updates and other support services. We do not have control over the delivery of these performance obligations, and accordingly we are the agent in these transactions. We recognize revenue for security software net of the related costs of sales at the point in time when our vendor and customer accept the terms and conditions in the sales arrangement. Cloud products allow customers to use hosted software over the contractual period without taking possession of the software and are provided on a subscription basis. We do not exercise control over these products or services and therefore are an agent in these transactions. We recognize revenue for cloud products net of the related costs of sales at the point in time when our vendor and customer accept the terms and conditions in the sales arrangements.

Certain software sales include on-premise licenses that are combined with software maintenance. Software maintenance conveys rights to updates, bug fixes and help desk support, and other support services transferred over the underlying contract period. On-premise licenses are considered distinct performance obligations when sold with the software maintenance, as we sell these items separately. We recognize revenue related to the software maintenance as the agent in these transactions because we do not have control over the on-going software maintenance service. Revenue allocated to software maintenance is recognized at the point in time when our vendor and customer accept the terms and conditions in the sales arrangements.

Certain of our larger customers are offered the opportunity by vendors to purchase software licenses and maintenance under enterprise agreements (“EAs”). Under EAs, customers are considered to be compliant with applicable license requirements for the ensuing year, regardless of changes to their employee base. Customers are charged an annual true-up fee for changes in the number of users over the year. With most EAs, our vendors will transfer the license and bill the customer directly, paying resellers, such as us, an agency fee or commission on these sales. We record these agency fees as a component of net sales as earned and there is no corresponding cost of sales amount. In certain instances, we invoice the customer directly under an EA and account for the individual items sold based on the nature of each item. Our vendors typically dictate how the EA will be sold to the customer.

We also offer extended service plans (“ESP”) on IT products, both as part of the initial arrangement and separately from the IT products. We recognize revenue related to ESP as the agent in the transaction because we do not have control over the on-going ESP service and do not provide any service after the sale. Revenue allocated to ESP is recognized at the point in time when our vendor and customer accept the terms and conditions in the sales arrangement.

We use our own engineering personnel in projects involving the design and installation of systems and networks, and we also engage third-party service providers to perform warranty maintenance, implementations, asset disposal, and other services. Service revenue is recognized in general over time as we perform the underlying services and satisfy our performance obligations. We evaluate such engagements to determine whether we are the principal or the agent in each transaction. For those transactions in which we do not control the service, we act as an agent and recognize the transaction revenue on a net basis at a point in time when the vendor and customer accept the terms and conditions in the sales arrangement.

All amounts billed to a customer in a sales transaction related to shipping and handling, if any, represent revenues earned for the goods provided, and these amounts have been included in net sales. Costs related to shipping and handling billing are classified as cost of sales. Sales are reported net of sales, use, or other transaction taxes that are collected from customers and remitted to taxing authorities.

Significant Judgments

Our contracts with customers often include promises to transfer multiple products or services to a customer. Determining whether we are the agent or the principal and whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment.

We estimate the standalone selling price (“SSP”) for each distinct performance obligation when a single arrangement contains multiple performance obligations and the fulfillment occurs at different points of times. We maximize the use of observable inputs in the determination of the estimate for SSP for the items that we do not sell separately, including on-premise licenses sold with software maintenance, and IT products sold with ESP. In instances where SSP is not directly observable, such as when we do not sell the product or service separately, we determine the SSP using information that may include market conditions and other observable inputs.

We provide our customers with a limited thirty-day right of return which is generally limited to defective merchandise. Revenue is recognized at delivery and a reserve for sales returns is recorded. We make estimates of product returns based on significant historical experience and record our sales return reserves as a reduction of revenues and either as reduction of accounts receivable or, for customers who have already paid, as accrued expenses.

Description of Revenue

We disaggregate revenue from our arrangements with customers by type of products and services, as we believe this method best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.

The following table represents a disaggregation of revenue from arrangements with customers for the three months ended September 30, 2018 and 2017, along with the reportable segment for each category.


	Three Months Ended September 30, 2018
	Business Solutions		Enterprise Solutions		Public Sector Solutions		Total
Notebooks/Mobility	$	68,822	$	63,926	$	50,079	$	182,827
Software (1)		31,578		25,718		15,541		72,837
Desktops		25,828		30,075		13,112		69,015
Servers/Storage		26,386		21,424		13,115		60,925
Net/Com products		27,380		16,601		12,745		56,726
Other hardware/services		64,878		107,733		43,563		216,174
Total net sales	$	244,872	$	265,477	$	148,155	$	658,504

(1) Certain software sales are reported on a net basis for the three months ended September 30, 2018 as a result of the adoption of ASC 606, but in the prior year would have been reported on a gross basis under the previous revenue recognition guidance – see the information below under the caption “Adoption of Recently Issued Accounting Standards”.


	Three Months Ended September 30, 2017
	Business Solutions		Enterprise Solutions		Public Sector Solutions		Total
Notebooks/Mobility	$	77,374	$	50,835	$	39,369	$	167,578
Software		66,094		67,623		39,579		173,296
Desktops		29,849		25,873		16,869		72,591
Servers/Storage		29,142		19,090		14,110		62,342
Net/Com products		24,085		14,645		11,855		50,585
Other hardware/services		64,025		89,956		48,857		202,838
Total net sales	$	290,569	$	268,022	$	170,639	$	729,230

The following table represents a disaggregation of revenue from arrangements with customers for the nine months ended September 30, 2018 and 2017, along with the reportable segment for each category.


	Nine Months Ended September 30, 2018
	Business Solutions		Enterprise Solutions		Public Sector Solutions		Total
Notebooks/Mobility	$	222,550	$	195,909	$	109,238	$	527,697
Software (1)		104,377		91,522		33,447		229,346
Desktops		82,518		91,307		41,948		215,773
Servers/Storage		85,190		70,262		46,753		202,205
Net/Com products		83,546		49,093		36,618		169,257
Other hardware/services		200,011		325,693		119,987		645,691
Total net sales	$	778,192	$	823,786	$	387,991	$	1,989,969

(1) Certain software sales are reported on a net basis for the nine months ended September 30, 2018 as a result of the adoption of ASC 606, but in the prior year would have been reported on a gross basis under the previous revenue recognition guidance – see the information below under the caption “Adoption of Recently Issued Accounting Standards”.


	Nine Months Ended September 30, 2017
	Business Solutions		Enterprise Solutions		Public Sector Solutions		Total
Notebooks/Mobility	$	226,152	$	150,799	$	99,999	$	476,950
Software		195,972		203,320		76,384		475,676
Desktops		85,994		76,015		78,045		240,054
Servers/Storage		85,949		59,864		40,290		186,103
Net/Com products		71,831		51,115		45,565		168,511
Other hardware/services		194,724		281,904		125,694		602,322
Total net sales	$	860,622	$	823,017	$	465,977	$	2,149,616

Contract Balances

The following table provides information about contract liability from arrangements with customers as of September 30, 2018 and January 1, 2018:


	September 30, 2018		January 1, 2018
Contract liability, which are included in "Accrued expenses and other liabilities"	$	2,629	$	2,914

Significant changes in the contract liability balances during the three and nine months ended September 30, 2018 are as follows (in thousands):


	Three Months Ended
	September 30,
Balances at July 1,2018	$	8,433
Cash received in advance and not recognized as revenue		1,024
Amounts recognized as revenue as performance obligations satisfied		(6,828)
Balances at September 30, 2018	$	2,629

	Nine Months Ended
	September 30,
Balances at January 1, 2018	$	2,914
Cash received in advance and not recognized as revenue		9,520
Amounts recognized as revenue as performance obligations satisfied		(9,805)
Balances at September 30, 2018	$	2,629

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the amounts reported in the accompanying condensed consolidated financial statements. Actual results could differ from those estimates.

Comprehensive Income

We had no items of comprehensive income, other than our net income for each of the periods presented.

Adoption of Recently Issued Accounting Standards

On May 28, 2014, the Financial Accounting Standards Board, or the FASB, issued ASC 606, which amended the accounting standards for revenue recognition and expanded our disclosure requirements. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

On January 1, 2018 we adopted ASC 606 using the modified retrospective transition method, which resulted in an adjustment at January 1, 2018, to retained earnings for the cumulative effect of applying the standard to all contracts not completed as of the adoption date. Upon adoption we recorded $1,197 as an increase to retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods.

The adoption resulted in an acceleration of the timing of revenue recognized for certain transactions where product that remained in our possession has been recognized as of the transaction date when all revenue recognition criteria have been met.

The following table presents the effect of the adoption of ASC 606 on our condensed consolidated balance sheet as of January 1, 2018:


				Adjustments
		Balance at		Due to ASU		Balance at
		December 31, 2017		2014-09		January 1, 2018
Balance Sheet
Assets
Accounts receivable, net	$	449,682	$	14,568	$	464,250
Inventories		106,753		(10,869)		95,884
Prepaid expenses and other current assets		5,737		(132)		5,605
Long-term accounts receivable		—		1,890		1,890
Other assets		5,638		(3,914)		1,724

Liabilities
Accounts payable		194,257		(62)		194,195
Accrued expenses and other liabilities		31,096		(312)		30,784
Accrued payroll		22,662		291		22,953
Deferred income taxes		15,696		429		16,125


Stockholders' Equity
Retained earnings	$	383,673	$	1,197	$	384,870

In addition to the timing of revenue recognition impacted by the above described transactions, upon adoption of ASC 606, the amount of revenue to be recognized prospectively was affected by the presentation of revenue transactions as an agent instead of principal in the following transactions:

Revenue related to the sale of cloud products as well as certain security software is now being recognized net of costs of sales as we determined that we act as an agent in these transactions. These sales are recorded on a net basis at a point in time when our vendor and the customer accept the terms and conditions in the sales arrangement. In addition, we sell third-party software maintenance that is delivered over time either separately or bundled with the software license. We have determined that software maintenance is a distinct performance obligation that we do not control, and accordingly, we act as an agent in these transactions and recognize the related revenue on a net basis under ASC 606. We previously recognized revenue for cloud products, security software, and software maintenance on a gross basis (i.e., acting as a principal). This change reduced both net sales and cost of sales with no impact on reported gross profit as compared to our prior accounting policies.

The following tables present the effect of the adoption of ASC 606 on our condensed consolidated income statement and balance sheet for the three and nine months ended September 30, 2018 and as of September 30, 2018, respectively:


		Three Months Ended September 30, 2018						Nine Months Ended September 30, 2018
						Balances without						Balances without
		As				Adoption of		As				Adoption of
		Reported		Adjustments		ASC 606		Reported		Adjustments		ASC 606
Income statement
Revenues
Net sales	$	658,504	$	107,826	$	766,330	$	1,989,969	$	296,583	$	2,286,552

Costs and expenses
Cost of sales		558,060		107,575		665,635		1,685,685		295,540		1,981,225

Income from operations		18,950		224		19,174		59,369		808		60,177
Income before taxes		19,064		224		19,288		59,781		808		60,589
Net income		13,766		162		13,928		43,292		584		43,876


		September 30, 2018
						Balances without
		As				Adoption of
		Reported		Adjustments		ASC 606
Balance Sheet
Assets
Accounts receivable, net	$	400,831	$	(4,463)	$	396,368
Inventories		105,283		6,059		111,342
Prepaid expenses and other current assets		6,068		129		6,197
Other assets		1,442		3,914		5,356

Liabilities
Accrued expenses and other liabilities	$	23,475	$	4,670	$	28,145
Accrued payroll		20,359		(103)		20,256
Deferred income taxes		16,125		(205)		15,920

Stockholders' Equity
Retained earnings	$	428,162	$	(613)	$	427,549

We have elected the use of certain practical expedients in our adoption of the new standard, which includes continuing to record revenue reported net of applicable taxes imposed on the related transaction and the application of the new standard to all arrangements not completed as of the adoption date. We have also elected to use the practical expedient to not account for the shipping and handling as separate performance obligations. Adoptions of the standard related to revenue recognition had no net impact on our condensed consolidated statement of cash flows.

Recently Issued Financial Accounting Standards

In February 2016, the FASB issued ASU 2016-02, Leases. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, or by not adjusting the comparative periods and recording a cumulative effect adjustment as of the adoption date, with certain practical expedients available. The Company has reviewed the requirements of the new standard and has formulated a plan for implementation. The Company is currently accumulating details on the population of leases and lease assets and has selected a software repository to track all of its lease agreements and to assist in the reporting and disclosures required by the new standard. The Company will continue to assess and disclose the impact that the new standard will have on its consolidated financial statements, disclosures, and related controls, when known.

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies the accounting for goodwill impairments by eliminating step two from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. ASU 2017-04 also clarifies the requirements for excluding and allocating foreign currency translation adjustments to reporting units related to an entity's testing of reporting units for goodwill impairment and clarifies that an entity should consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The new standard is effective for fiscal years beginning January 1, 2020 for both interim and annual reporting periods. The Company is currently assessing the potential impact of the adoption of ASC 2017-04 on its consolidated financial statements.

EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2018

Earnings Per Share

Earnings Per Share

Note 2–Earnings Per Share

Basic earnings per common share is computed using the weighted average number of shares outstanding. Diluted earnings per share is computed using the weighted average number of shares outstanding adjusted for the incremental shares attributable to non-vested stock units and stock options outstanding, if dilutive.

The following table sets forth the computation of basic and diluted earnings per share:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Numerator:
Net income	$	13,766	$	13,117	$	43,292	$	34,134
Denominator:
Denominator for basic earnings per share		26,716		26,802		26,745		26,754
Dilutive effect of employee stock awards		186		97		138		132
Denominator for diluted earnings per share		26,902		26,899		26,883		26,886
Earnings per share:
Basic	$	0.52	$	0.49	$	1.62	$	1.28
Diluted	$	0.51	$	0.49	$	1.61	$	1.27

For the three and nine months ended September 30, 2018 and 2017, we had no outstanding non-vested stock units that were excluded from the computation of diluted earnings per share because including them would have had an anti-dilutive effect.

SEGMENT AND RELATED DISCLOSURES

9 Months Ended

Sep. 30, 2018

Segment and Related Disclosures

Segment and Related Disclosures

Note 3–Segment and Related Disclosures

The internal reporting structure used by our chief operating decision maker (“CODM”) to assess performance and allocate resources determines the basis for our reportable operating segments. Our CODM is our Chief Executive Officer, and he evaluates operations and allocates resources based on a measure of operating income.

Our operations are organized under three reportable segments—the Business Solutions segment, which serves primarily small- and medium-sized businesses; the Enterprise Solutions segment, which serves primarily medium-to-large corporations; and the Public Sector Solutions segment, which serves primarily federal, state, and local governmental and educational institutions. In addition, the Headquarters/Other group provides services in areas such as finance, human resources, information technology, marketing, and product management. Most of the operating costs associated with the Headquarters/Other group functions are charged to the operating segments based on their estimated usage of the underlying functions. We report these charges to the operating segments as “Allocations.” Certain headquarters costs relating to executive oversight and other fiduciary functions that are not allocated to the operating segments are included under the heading of Headquarters/Other in the tables below.

Segment information applicable to our reportable operating segments for the three and nine months ended September 30, 2018 and 2017 is shown below:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Net sales:
Business Solutions	$	244,872	$	290,569	$	778,192	$	860,622
Enterprise Solutions		265,477		268,022		823,786		823,017
Public Sector Solutions		148,155		170,639		387,991		465,977
Total net sales	$	658,504	$	729,230	$	1,989,969	$	2,149,616
Operating income (loss):
Business Solutions	$	8,173	$	9,543	$	28,303	$	29,430
Enterprise Solutions		13,629		12,389		43,598		35,777
Public Sector Solutions		528		2,793		(2,083)		169
Headquarters/Other		(3,380)		(2,986)		(10,449)		(9,745)
Total operating income		18,950		21,739		59,369		55,631
Interest income (expense), net		114		(8)		412		20
Income before taxes	$	19,064	$	21,731	$	59,781	$	55,651
Selected operating expense:
Depreciation and amortization:
Business Solutions	$	153	$	145	$	481	$	448
Enterprise Solutions		608		519		1,653		1,661
Public Sector Solutions		25		45		91		126
Headquarters/Other		2,848		2,226		8,137		6,410
Total depreciation and amortization	$	3,634	$	2,935	$	10,362	$	8,645
Total assets:
Business Solutions					$	263,678	$	241,030
Enterprise Solutions						423,125		376,001
Public Sector Solutions						69,994		69,162
Headquarters/Other						(6,570)		5,689
Total assets					$	750,227	$	691,882

The assets of our three operating segments presented above consist primarily of accounts receivable, net intercompany receivable, goodwill, and other intangibles. Assets reported under the Headquarters/Other group are managed by corporate headquarters, including cash, inventory, property and equipment, and intercompany balance, net. Total assets for the Headquarters/Other group are presented net of intercompany balance eliminations of $22,989 as of September 30, 2018. Our capital expenditures consist largely of IT hardware and software purchased to maintain or upgrade our management information systems. These information systems serve all of our segments, to varying degrees, and accordingly, our CODM does not evaluate capital expenditures on a segment basis.

COMMITMENTS AND CONTINGENCIES	9 Months Ended
COMMITMENTS AND CONTINGENCIES	Sep. 30, 2018
Commitments and Contingencies
Commitments And Contingencies	Note 4–Commitments and Contingencies We are subject to various legal proceedings and claims, including patent infringement claims, which have arisen during the ordinary course of business. In the opinion of management, the outcome of such matters is not expected to have a material effect on our financial position, results of operations, and/or cash flows. We are subject to audits by states on sales and income taxes, employment matters, and other assessments. Additional liabilities for these and other audits could be assessed, and such outcomes could have a material, negative impact on our financial position, results of operations, and/or cash flows.

BANK BORROWINGS	9 Months Ended
BANK BORROWINGS	Sep. 30, 2018
Bank Borrowings
Bank Borrowings	Note 5–Bank Borrowing We have a $50,000 credit facility collateralized by our accounts receivable that expires in February 2022. This facility can be increased, at our option, to $80,000 for approved acquisitions or other uses authorized by the lender on substantially the same terms. Amounts outstanding under this facility bear interest at the one-month London Interbank Offered Rate, or LIBOR, plus a spread based on our funded debt ratio, or in the absence of LIBOR, the prime rate (5.25% at September 30, 2018). The one-month LIBOR rate at September 30, 2018 was 2.26%. The credit facility includes various customary financial ratios and operating covenants, including minimum net worth and maximum funded debt ratio requirements, and default acceleration provisions. The credit facility does not include restrictions on future dividend payments. Funded debt ratio is the ratio of average outstanding advances under the credit facility to Adjusted EBITDA (Earnings Before Interest Expense, Taxes, Depreciation, Amortization, and Special Charges). The maximum allowable funded debt ratio under the agreement is 2.0 to 1.0. Decreases in our consolidated Adjusted EBITDA could limit our potential borrowings under the credit facility. We had no outstanding bank borrowings at September 30, 2018 or December 31, 2017, and accordingly, the entire $50,000 facility was available for borrowings under the credit facility.

BASIS OF PRESENTATION (Tables)

9 Months Ended

Sep. 30, 2018

Schedule of disaggregation of revenue from contracts with customers


	Three Months Ended September 30, 2018
	Business Solutions		Enterprise Solutions		Public Sector Solutions		Total
Notebooks/Mobility	$	68,822	$	63,926	$	50,079	$	182,827
Software (1)		31,578		25,718		15,541		72,837
Desktops		25,828		30,075		13,112		69,015
Servers/Storage		26,386		21,424		13,115		60,925
Net/Com products		27,380		16,601		12,745		56,726
Other hardware/services		64,878		107,733		43,563		216,174
Total net sales	$	244,872	$	265,477	$	148,155	$	658,504


	Three Months Ended September 30, 2017
	Business Solutions		Enterprise Solutions		Public Sector Solutions		Total
Notebooks/Mobility	$	77,374	$	50,835	$	39,369	$	167,578
Software		66,094		67,623		39,579		173,296
Desktops		29,849		25,873		16,869		72,591
Servers/Storage		29,142		19,090		14,110		62,342
Net/Com products		24,085		14,645		11,855		50,585
Other hardware/services		64,025		89,956		48,857		202,838
Total net sales	$	290,569	$	268,022	$	170,639	$	729,230

The following table represents a disaggregation of revenue from arrangements with customers for the nine months ended September 30, 2018 and 2017, along with the reportable segment for each category.


	Nine Months Ended September 30, 2018
	Business Solutions		Enterprise Solutions		Public Sector Solutions		Total
Notebooks/Mobility	$	222,550	$	195,909	$	109,238	$	527,697
Software (1)		104,377		91,522		33,447		229,346
Desktops		82,518		91,307		41,948		215,773
Servers/Storage		85,190		70,262		46,753		202,205
Net/Com products		83,546		49,093		36,618		169,257
Other hardware/services		200,011		325,693		119,987		645,691
Total net sales	$	778,192	$	823,786	$	387,991	$	1,989,969


	Nine Months Ended September 30, 2017
	Business Solutions		Enterprise Solutions		Public Sector Solutions		Total
Notebooks/Mobility	$	226,152	$	150,799	$	99,999	$	476,950
Software		195,972		203,320		76,384		475,676
Desktops		85,994		76,015		78,045		240,054
Servers/Storage		85,949		59,864		40,290		186,103
Net/Com products		71,831		51,115		45,565		168,511
Other hardware/services		194,724		281,904		125,694		602,322
Total net sales	$	860,622	$	823,017	$	465,977	$	2,149,616

Schedule of information on contract liability

The following table provides information about contract liability from arrangements with customers as of September 30, 2018 and January 1, 2018:


	September 30, 2018		January 1, 2018
Contract liability, which are included in "Accrued expenses and other liabilities"	$	2,629	$	2,914

Significant changes in the contract liability balances during the three and nine months ended September 30, 2018 are as follows (in thousands):


	Three Months Ended
	September 30,
Balances at July 1,2018	$	8,433
Cash received in advance and not recognized as revenue		1,024
Amounts recognized as revenue as performance obligations satisfied		(6,828)
Balances at September 30, 2018	$	2,629

	Nine Months Ended
	September 30,
Balances at January 1, 2018	$	2,914
Cash received in advance and not recognized as revenue		9,520
Amounts recognized as revenue as performance obligations satisfied		(9,805)
Balances at September 30, 2018	$	2,629

ASU 2014-09

Schedule of the effect of the adoption of ASU 2014-09

The following table presents the effect of the adoption of ASC 606 on our condensed consolidated balance sheet as of January 1, 2018:


				Adjustments
		Balance at		Due to ASU		Balance at
		December 31, 2017		2014-09		January 1, 2018
Balance Sheet
Assets
Accounts receivable, net	$	449,682	$	14,568	$	464,250
Inventories		106,753		(10,869)		95,884
Prepaid expenses and other current assets		5,737		(132)		5,605
Long-term accounts receivable		—		1,890		1,890
Other assets		5,638		(3,914)		1,724

Liabilities
Accounts payable		194,257		(62)		194,195
Accrued expenses and other liabilities		31,096		(312)		30,784
Accrued payroll		22,662		291		22,953
Deferred income taxes		15,696		429		16,125


Stockholders' Equity
Retained earnings	$	383,673	$	1,197	$	384,870

The following tables present the effect of the adoption of ASC 606 on our condensed consolidated income statement and balance sheet and for the three and nine months ended September 30, 2018 and as of September 30, 2018, respectively:


		Three Months Ended September 30, 2018						Nine Months Ended September 30, 2018
						Balances without						Balances without
		As				Adoption of		As				Adoption of
		Reported		Adjustments		ASC 606		Reported		Adjustments		ASC 606
Income statement
Revenues
Net sales	$	658,504	$	107,826	$	766,330	$	1,989,969	$	296,583	$	2,286,552

Costs and expenses
Cost of sales		558,060		107,575		665,635		1,685,685		295,540		1,981,225

Income from operations		18,950		224		19,174		59,369		808		60,177
Income before taxes		19,064		224		19,288		59,781		808		60,589
Net income		13,766		162		13,928		43,292		584		43,876


		September 30, 2018
						Balances without
		As				Adoption of
		Reported		Adjustments		ASC 606
Balance Sheet
Assets
Accounts receivable, net	$	400,831	$	(4,463)	$	396,368
Inventories		105,283		6,059		111,342
Prepaid expenses and other current assets		6,068		129		6,197
Other assets		1,442		3,914		5,356

Liabilities
Accrued expenses and other liabilities	$	23,475	$	4,670	$	28,145
Accrued payroll		20,359		(103)		20,256
Deferred income taxes		16,125		(205)		15,920

Stockholders' Equity
Retained earnings	$	428,162	$	(613)	$	427,549

EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2018

Earnings Per Share

Computation of Basic and Diluted Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Numerator:
Net income	$	13,766	$	13,117	$	43,292	$	34,134
Denominator:
Denominator for basic earnings per share		26,716		26,802		26,745		26,754
Dilutive effect of employee stock awards		186		97		138		132
Denominator for diluted earnings per share		26,902		26,899		26,883		26,886
Earnings per share:
Basic	$	0.52	$	0.49	$	1.62	$	1.28
Diluted	$	0.51	$	0.49	$	1.61	$	1.27

SEGMENT AND RELATED DISCLOSURES (Tables)

9 Months Ended

Sep. 30, 2018

Segment and Related Disclosures

Segment Information Applicable to Reportable Operating Segments

Segment information applicable to our reportable operating segments for the three and nine months ended September 30, 2018 and 2017 is shown below:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Net sales:
Business Solutions	$	244,872	$	290,569	$	778,192	$	860,622
Enterprise Solutions		265,477		268,022		823,786		823,017
Public Sector Solutions		148,155		170,639		387,991		465,977
Total net sales	$	658,504	$	729,230	$	1,989,969	$	2,149,616
Operating income (loss):
Business Solutions	$	8,173	$	9,543	$	28,303	$	29,430
Enterprise Solutions		13,629		12,389		43,598		35,777
Public Sector Solutions		528		2,793		(2,083)		169
Headquarters/Other		(3,380)		(2,986)		(10,449)		(9,745)
Total operating income		18,950		21,739		59,369		55,631
Interest income (expense), net		114		(8)		412		20
Income before taxes	$	19,064	$	21,731	$	59,781	$	55,651
Selected operating expense:
Depreciation and amortization:
Business Solutions	$	153	$	145	$	481	$	448
Enterprise Solutions		608		519		1,653		1,661
Public Sector Solutions		25		45		91		126
Headquarters/Other		2,848		2,226		8,137		6,410
Total depreciation and amortization	$	3,634	$	2,935	$	10,362	$	8,645
Total assets:
Business Solutions					$	263,678	$	241,030
Enterprise Solutions						423,125		376,001
Public Sector Solutions						69,994		69,162
Headquarters/Other						(6,570)		5,689
Total assets					$	750,227	$	691,882

BASIS OF PRESENTATION - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of revenue
Net sales	$ 658,504	$ 729,230	$ 1,989,969	$ 2,149,616
Notebooks/Mobility
Disaggregation of revenue
Net sales	182,827		527,697
Software
Disaggregation of revenue
Net sales	72,837		229,346
Desktops
Disaggregation of revenue
Net sales	69,015		215,773
Servers/Storage
Disaggregation of revenue
Net sales	60,925		202,205
Net/Com products
Disaggregation of revenue
Net sales	56,726		169,257
Other hardware/services
Disaggregation of revenue
Net sales	216,174		645,691
Business Solutions
Disaggregation of revenue
Net sales	244,872		778,192
Business Solutions \| Notebooks/Mobility
Disaggregation of revenue
Net sales	68,822		222,550
Business Solutions \| Software
Disaggregation of revenue
Net sales	31,578		104,377
Business Solutions \| Desktops
Disaggregation of revenue
Net sales	25,828		82,518
Business Solutions \| Servers/Storage
Disaggregation of revenue
Net sales	26,386		85,190
Business Solutions \| Net/Com products
Disaggregation of revenue
Net sales	27,380		83,546
Business Solutions \| Other hardware/services
Disaggregation of revenue
Net sales	64,878		200,011
Enterprise Solutions
Disaggregation of revenue
Net sales	265,477		823,786
Enterprise Solutions \| Notebooks/Mobility
Disaggregation of revenue
Net sales	63,926		195,909
Enterprise Solutions \| Software
Disaggregation of revenue
Net sales	25,718		91,522
Enterprise Solutions \| Desktops
Disaggregation of revenue
Net sales	30,075		91,307
Enterprise Solutions \| Servers/Storage
Disaggregation of revenue
Net sales	21,424		70,262
Enterprise Solutions \| Net/Com products
Disaggregation of revenue
Net sales	16,601		49,093
Enterprise Solutions \| Other hardware/services
Disaggregation of revenue
Net sales	107,733		325,693
Public Sector Solutions
Disaggregation of revenue
Net sales	148,155		387,991
Public Sector Solutions \| Notebooks/Mobility
Disaggregation of revenue
Net sales	50,079		109,238
Public Sector Solutions \| Software
Disaggregation of revenue
Net sales	15,541		33,447
Public Sector Solutions \| Desktops
Disaggregation of revenue
Net sales	13,112		41,948
Public Sector Solutions \| Servers/Storage
Disaggregation of revenue
Net sales	13,115		46,753
Public Sector Solutions \| Net/Com products
Disaggregation of revenue
Net sales	12,745		36,618
Public Sector Solutions \| Other hardware/services
Disaggregation of revenue
Net sales	43,563		119,987
Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of revenue
Net sales	$ 766,330	729,230	$ 2,286,552	2,149,616
Calculated under Revenue Guidance in Effect before Topic 606 \| Notebooks/Mobility
Disaggregation of revenue
Net sales		167,578		476,950
Calculated under Revenue Guidance in Effect before Topic 606 \| Software
Disaggregation of revenue
Net sales		173,296		475,676
Calculated under Revenue Guidance in Effect before Topic 606 \| Desktops
Disaggregation of revenue
Net sales		72,591		240,054
Calculated under Revenue Guidance in Effect before Topic 606 \| Servers/Storage
Disaggregation of revenue
Net sales		62,342		186,103
Calculated under Revenue Guidance in Effect before Topic 606 \| Net/Com products
Disaggregation of revenue
Net sales		50,585		168,511
Calculated under Revenue Guidance in Effect before Topic 606 \| Other hardware/services
Disaggregation of revenue
Net sales		202,838		602,322
Calculated under Revenue Guidance in Effect before Topic 606 \| Business Solutions
Disaggregation of revenue
Net sales		290,569		860,622
Calculated under Revenue Guidance in Effect before Topic 606 \| Business Solutions \| Notebooks/Mobility
Disaggregation of revenue
Net sales		77,374		226,152
Calculated under Revenue Guidance in Effect before Topic 606 \| Business Solutions \| Software
Disaggregation of revenue
Net sales		66,094		195,972
Calculated under Revenue Guidance in Effect before Topic 606 \| Business Solutions \| Desktops
Disaggregation of revenue
Net sales		29,849		85,994
Calculated under Revenue Guidance in Effect before Topic 606 \| Business Solutions \| Servers/Storage
Disaggregation of revenue
Net sales		29,142		85,949
Calculated under Revenue Guidance in Effect before Topic 606 \| Business Solutions \| Net/Com products
Disaggregation of revenue
Net sales		24,085		71,831
Calculated under Revenue Guidance in Effect before Topic 606 \| Business Solutions \| Other hardware/services
Disaggregation of revenue
Net sales		64,025		194,724
Calculated under Revenue Guidance in Effect before Topic 606 \| Enterprise Solutions
Disaggregation of revenue
Net sales		268,022		823,017
Calculated under Revenue Guidance in Effect before Topic 606 \| Enterprise Solutions \| Notebooks/Mobility
Disaggregation of revenue
Net sales		50,835		150,799
Calculated under Revenue Guidance in Effect before Topic 606 \| Enterprise Solutions \| Software
Disaggregation of revenue
Net sales		67,623		203,320
Calculated under Revenue Guidance in Effect before Topic 606 \| Enterprise Solutions \| Desktops
Disaggregation of revenue
Net sales		25,873		76,015
Calculated under Revenue Guidance in Effect before Topic 606 \| Enterprise Solutions \| Servers/Storage
Disaggregation of revenue
Net sales		19,090		59,864
Calculated under Revenue Guidance in Effect before Topic 606 \| Enterprise Solutions \| Net/Com products
Disaggregation of revenue
Net sales		14,645		51,115
Calculated under Revenue Guidance in Effect before Topic 606 \| Enterprise Solutions \| Other hardware/services
Disaggregation of revenue
Net sales		89,956		281,904
Calculated under Revenue Guidance in Effect before Topic 606 \| Public Sector Solutions
Disaggregation of revenue
Net sales		170,639		465,977
Calculated under Revenue Guidance in Effect before Topic 606 \| Public Sector Solutions \| Notebooks/Mobility
Disaggregation of revenue
Net sales		39,369		99,999
Calculated under Revenue Guidance in Effect before Topic 606 \| Public Sector Solutions \| Software
Disaggregation of revenue
Net sales		39,579		76,384
Calculated under Revenue Guidance in Effect before Topic 606 \| Public Sector Solutions \| Desktops
Disaggregation of revenue
Net sales		16,869		78,045
Calculated under Revenue Guidance in Effect before Topic 606 \| Public Sector Solutions \| Servers/Storage
Disaggregation of revenue
Net sales		14,110		40,290
Calculated under Revenue Guidance in Effect before Topic 606 \| Public Sector Solutions \| Net/Com products
Disaggregation of revenue
Net sales		11,855		45,565
Calculated under Revenue Guidance in Effect before Topic 606 \| Public Sector Solutions \| Other hardware/services
Disaggregation of revenue
Net sales		$ 48,857		$ 125,694

BASIS OF PRESENTATION - Contract Balances (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018	Jan. 02, 2018
Change in contract liability
Beginning balance - Contract liability	$ 8,433	$ 2,914
Cash received in advance and not recognized as revenue	1,024	9,520
Amounts recognized as revenue as performance obligations satisfied	(6,828)	(9,805)
Ending balance - Contract liability	2,629	2,629
Accrued expenses and other liabilities
Contract liabilities
Contract liability	$ 2,629	$ 2,629	$ 2,914

BASIS OF PRESENTATION - Effect of Adoption of ASU 2014-09 (Details) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Jan. 02, 2018	Jan. 01, 2018	Dec. 31, 2017
REVENUES
Net sales	$ 658,504			$ 729,230	$ 1,989,969	$ 2,149,616
Costs and expenses
Cost of sales	558,060			633,087	1,685,685	1,867,070
Income from operations	18,950			21,739	59,369	55,631
Income before taxes	19,064			21,731	59,781	55,651
Net income	13,766	$ 18,226	$ 11,300	13,117	43,292	34,134
ASSETS
Accounts receivable, net	400,831				400,831		$ 464,250		$ 449,682
Inventories, net	105,283				105,283		95,884		106,753
Prepaid expenses and other current assets	6,068				6,068		5,605		5,737
Long-term accounts receivable							1,890
Other assets	1,442				1,442		1,724		5,638
LIABILITIES
Accounts payable	165,190				165,190		194,195		194,257
Accrued expenses and other liabilities	23,475				23,475		30,784		31,096
Accrued payroll	20,359				20,359		22,953		22,662
Deferred income taxes	16,125				16,125		16,125		15,696
STOCKHOLDERS' EQUITY
Retained earnings	428,162				428,162		$ 384,870		$ 383,673
Difference between Revenue Guidance in Effect before and after Topic 606 \| ASU 2014-09
REVENUES
Net sales	107,826				296,583
Costs and expenses
Cost of sales	107,575				295,540
Income from operations	224				808
Income before taxes	224				808
Net income	162				584
ASSETS
Accounts receivable, net	(4,463)				(4,463)			$ 14,568
Inventories, net	6,059				6,059			(10,869)
Prepaid expenses and other current assets	129				129			(132)
Long-term accounts receivable								1,890
Other assets	3,914				3,914			(3,914)
LIABILITIES
Accounts payable								(62)
Accrued expenses and other liabilities	4,670				4,670			(312)
Accrued payroll	(103)				(103)			291
Deferred income taxes	(205)				(205)			429
STOCKHOLDERS' EQUITY
Retained earnings	(613)				(613)			$ 1,197
Calculated under Revenue Guidance in Effect before Topic 606
REVENUES
Net sales	766,330			$ 729,230	2,286,552	$ 2,149,616
Costs and expenses
Cost of sales	665,635				1,981,225
Income from operations	19,174				60,177
Income before taxes	19,288				60,589
Net income	13,928				43,876
ASSETS
Accounts receivable, net	396,368				396,368
Inventories, net	111,342				111,342
Prepaid expenses and other current assets	6,197				6,197
Other assets	5,356				5,356
LIABILITIES
Accrued expenses and other liabilities	28,145				28,145
Accrued payroll	20,256				20,256
Deferred income taxes	15,920				15,920
STOCKHOLDERS' EQUITY
Retained earnings	$ 427,549				$ 427,549

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Numerator:
Net income	$ 13,766	$ 18,226	$ 11,300	$ 13,117	$ 43,292	$ 34,134
Denominator:
Denominator for basic earnings per share	26,716			26,802	26,745	26,754
Dilutive effect of employee stock awards	186			97	138	132
Denominator for diluted earnings per share	26,902			26,899	26,883	26,886
Earnings per share:
Basic	$ 0.52			$ 0.49	$ 1.62	$ 1.28
Diluted	$ 0.51			$ 0.49	$ 1.61	$ 1.27
Additional Disclosure
Employee stock awards excluded from computation of diluted earnings per share	0			0	0	0

SEGMENT AND RELATED DISCLOSURES - Segment Information Applicable to Reportable Operating Segments (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2018 USD ($) segment	Sep. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)
Segment Reporting Information
Number of reportable segments \| segment			3
Number of operating segments \| segment			3
Net sales:
Net sales	$ 658,504	$ 729,230	$ 1,989,969	$ 2,149,616
Operating income (loss):
Operating income (loss)	18,950	21,739	59,369	55,631
Interest income (expense)	114	(8)	412	20
Income before taxes	19,064	21,731	59,781	55,651
Depreciation and amortization:
Depreciation and amortization	3,634	2,935	10,362	8,645
Total assets:
Total assets	750,227	691,882	750,227	691,882	$ 747,851
Goodwill	73,602		73,602		$ 73,602
Business Solutions
Net sales:
Net sales	244,872		778,192
Enterprise Solutions
Net sales:
Net sales	265,477		823,786
Public Sector Solutions
Net sales:
Net sales	148,155		387,991
Operating Segments \| Business Solutions
Net sales:
Net sales	244,872	290,569	778,192	860,622
Operating income (loss):
Operating income (loss)	8,173	9,543	28,303	29,430
Depreciation and amortization:
Depreciation and amortization	153	145	481	448
Total assets:
Total assets	263,678	241,030	263,678	241,030
Operating Segments \| Enterprise Solutions
Net sales:
Net sales	265,477	268,022	823,786	823,017
Operating income (loss):
Operating income (loss)	13,629	12,389	43,598	35,777
Depreciation and amortization:
Depreciation and amortization	608	519	1,653	1,661
Total assets:
Total assets	423,125	376,001	423,125	376,001
Operating Segments \| Public Sector Solutions
Net sales:
Net sales	148,155	170,639	387,991	465,977
Operating income (loss):
Operating income (loss)	528	2,793	(2,083)	169
Depreciation and amortization:
Depreciation and amortization	25	45	91	126
Total assets:
Total assets	69,994	69,162	69,994	69,162
Headquarters/Other
Operating income (loss):
Operating income (loss)	(3,380)	(2,986)	(10,449)	(9,745)
Depreciation and amortization:
Depreciation and amortization	2,848	2,226	8,137	6,410
Total assets:
Assets net of intercompany balance eliminations	(6,570)	5,689	(6,570)	5,689
Intersegment Elimination
Total assets:
Total assets	(22,989)		(22,989)
Calculated under Revenue Guidance in Effect before Topic 606
Net sales:
Net sales	766,330	729,230	2,286,552	2,149,616
Operating income (loss):
Operating income (loss)	19,174		60,177
Income before taxes	$ 19,288		$ 60,589
Calculated under Revenue Guidance in Effect before Topic 606 \| Business Solutions
Net sales:
Net sales		290,569		860,622
Calculated under Revenue Guidance in Effect before Topic 606 \| Enterprise Solutions
Net sales:
Net sales		268,022		823,017
Calculated under Revenue Guidance in Effect before Topic 606 \| Public Sector Solutions
Net sales:
Net sales		$ 170,639		$ 465,977

BANK BORROWINGS (Detail) - USD ($) $ in Thousands	9 Months Ended
BANK BORROWINGS (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Subordinated Borrowing
Line of credit, borrowing capacity	$ 50,000
Credit facility, expiration date	Feb. 01, 2022
Line of credit, maximum borrowing capacity	$ 80,000
Debt instrument, description of variable rate basis	one-month LIBOR
Debt ratio	2.0
Line of credit, outstanding borrowing	$ 0	$ 0
Line of credit, available for borrowing	$ 50,000
Prime Rate
Subordinated Borrowing
Debt instrument, interest rate	5.25%
One-month LIBOR rate
Subordinated Borrowing
Debt instrument, interest rate	2.26%