0001558370-20-013402 | 10-Q | XBRL Viewer

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2020	Nov. 06, 2020
Document And Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2020
Entity File Number	0-23827
Entity Registrant Name	PC CONNECTION, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	02-0513618
Entity Address, Address Line One	730 Milford Road
Entity Address, City or Town	Merrimack
Entity Address, State or Province	NH
Entity Address, Postal Zip Code	03054
City Area Code	603
Local Phone Number	683-2000
Title of 12(b) Security	Common Stock
Trading Symbol	CNXN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		26,175,491
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001050377
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current Assets:
Cash and cash equivalents	$ 108,051	$ 90,060
Accounts receivable, net	588,960	549,626
Inventories, net	134,689	124,666
Income taxes receivable		1,388
Prepaid expenses and other current assets	12,016	10,671
Total current assets	843,716	776,411
Property and equipment, net	63,189	64,226
Right-of-use assets	13,768	13,842
Goodwill	73,602	73,602
Intangible assets, net	7,393	8,307
Other assets	1,666	947
Total Assets	1,003,334	937,335
Current Liabilities:
Accounts payable	283,163	235,641
Accrued payroll	20,200	28,050
Accrued expenses and other liabilities	34,997	45,232
Total current liabilities	338,360	308,923
Deferred income taxes	20,170	20,170
Noncurrent operating lease liabilities	10,579	10,330
Other liabilities	5,948	600
Total Liabilities	375,057	340,023
Stockholders' Equity:
Common stock	289	288
Additional paid-in capital	119,762	118,045
Retained earnings	554,163	514,694
Treasury stock, at cost	(45,937)	(35,715)
Total Stockholders' Equity	628,277	597,312
Total Liabilities and Stockholders' Equity	$ 1,003,334	$ 937,335

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Condensed Consolidated Statements of Income
Net sales	$ 652,752	$ 729,410	$ 1,914,603	$ 2,103,407
Cost of sales	544,922	610,547	1,604,656	1,768,210
Gross profit	107,830	118,863	309,947	335,197
Selling, general and administrative expenses	86,753	86,226	256,640	252,125
Restructuring and other charges			992	703
Income from operations	21,077	32,637	52,315	82,369
Interest (expense) income, net	(17)	62	80	444
Income before taxes	21,060	32,699	52,395	82,813
Income tax provision	(4,130)	(8,949)	(12,926)	(22,668)
Net income	$ 16,930	$ 23,750	$ 39,469	$ 60,145
Earnings per common share:
Basic	$ 0.65	$ 0.90	$ 1.51	$ 2.28
Diluted	$ 0.64	$ 0.90	$ 1.50	$ 2.27
Shares used in computation of earnings per common share:
Basic	26,130	26,323	26,158	26,339
Diluted	26,311	26,479	26,337	26,496

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings	Treasury Stock	Total
Balance at Dec. 31, 2018	$ 288	$ 115,842	$ 441,010	$ (31,237)	$ 525,903
Balance (in shares) at Dec. 31, 2018	28,787			(2,391)
Stock-based compensation expense		1,259			1,259
Restricted stock units vested (in shares)	34
Issuance of common stock under Employee Stock Purchase Plan		609			609
Issuance of common stock under Employee Stock Purchase Plan (in shares)	19
Shares withheld for taxes paid on stock awards		(409)			(409)
Repurchase of common stock for treasury				$ (4,363)	(4,363)
Repurchase of common stock for treasury (in shares)				(132)
Net income			60,145		60,145
Balance at Sep. 30, 2019	$ 288	117,301	501,155	$ (35,600)	583,144
Balance (in shares) at Sep. 30, 2019	28,840			(2,523)
Balance at Jun. 30, 2019	$ 288	117,212	477,405	$ (34,738)	560,167
Balance (in shares) at Jun. 30, 2019	28,818			(2,500)
Stock-based compensation expense		426			426
Restricted stock units vested (in shares)	22
Shares withheld for taxes paid on stock awards		(337)			(337)
Repurchase of common stock for treasury				$ (862)	(862)
Repurchase of common stock for treasury (in shares)				(23)
Net income			23,750		23,750
Balance at Sep. 30, 2019	$ 288	117,301	501,155	$ (35,600)	583,144
Balance (in shares) at Sep. 30, 2019	28,840			(2,523)
Balance at Dec. 31, 2019	$ 288	118,045	514,694	$ (35,715)	597,312
Balance (in shares) at Dec. 31, 2019	28,870			(2,526)
Stock-based compensation expense		1,866			1,866
Restricted stock units vested	$ 1				1
Restricted stock units vested (in shares)	33
Issuance of common stock under Employee Stock Purchase Plan		536			536
Issuance of common stock under Employee Stock Purchase Plan (in shares)	12
Shares withheld for taxes paid on stock awards		(685)			(685)
Repurchase of common stock for treasury				$ (10,222)	(10,222)
Repurchase of common stock for treasury (in shares)				(247)
Net income			39,469		39,469
Balance at Sep. 30, 2020	$ 289	119,762	554,163	$ (45,937)	628,277
Balance (in shares) at Sep. 30, 2020	28,915			(2,773)
Balance at Jun. 30, 2020	$ 289	119,628	537,233	$ (45,937)	611,213
Balance (in shares) at Jun. 30, 2020	28,892			(2,773)
Stock-based compensation expense		619			619
Restricted stock units vested (in shares)	23
Shares withheld for taxes paid on stock awards		(485)			(485)
Net income			16,930		16,930
Balance at Sep. 30, 2020	$ 289	$ 119,762	$ 554,163	$ (45,937)	$ 628,277
Balance (in shares) at Sep. 30, 2020	28,915			(2,773)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash Flows provided by Operating Activities:
Net income	$ 39,469	$ 60,145
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	10,335	10,184
Provision for doubtful accounts	3,276	181
Stock-based compensation expense	1,866	1,259
Deferred income taxes		10
Loss on disposal of fixed assets	13	114
Changes in assets and liabilities:
Accounts receivable	(42,610)	(31,390)
Inventories	(10,023)	(6,883)
Prepaid expenses, income tax receivables and other current assets	43	3,702
Other non-current assets	(719)	319
Accounts payable	48,736	(3,167)
Accrued expenses and other liabilities	(3,987)	5,548
Net cash provided by operating activities	46,399	40,022
Cash Flows used in Investing Activities:
Purchases of equipment	(9,611)	(20,621)
Net cash used in investing activities	(9,611)	(20,621)
Cash Flows used in Financing Activities:
Purchase of treasury shares	(10,222)	(4,363)
Dividend payments	(8,427)	(8,452)
Issuance of stock under Employee Stock Purchase Plan	536	609
Payments of payroll taxes on stock-based compensation through shares withheld	(684)	(409)
Net cash used in financing activities	(18,797)	(12,615)
Increase in cash and cash equivalents	17,991	6,786
Cash and cash equivalents, beginning of period	90,060	91,703
Cash and cash equivalents, end of period	108,051	98,489
Non-cash Investing and Financing Activities:
Accrued capital expenditures	248	1,684
Supplemental Cash Flow Information:
Income taxes paid	$ 13,798	$ 18,972

BASIS OF PRESENTATION

9 Months Ended

Sep. 30, 2020

Basis of Presentation

Basis of Presentation

Note 1–Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of PC Connection, Inc. and its subsidiaries (the “Company”) 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 the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission (the “SEC”). The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements contained in the Company’s 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, 2020 may not be indicative of the results expected for any succeeding quarter or the entire year ending December 31, 2020.

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.

The Company’s operations and financial performance in certain areas of its business were negatively impacted by the coronavirus pandemic (“COVID-19”) in the nine months ended September 30, 2020. The extent to which the COVID-19 pandemic impacts the Company’s financial results and operations for the remainder of 2020 and beyond will depend on future developments that are highly uncertain and cannot be predicted at this time. The Company updated its estimates and judgements in response to the economic uncertainty associated with COVID-19, which were reflected in the amounts reported in the accompanying condensed consolidated financial statements. The Company has experienced, and may continue to experience, delays in collecting amounts owed to it, and in some cases, may experience inabilities to collect altogether. As a result, the Company increased its customer allowance for doubtful accounts by $3,276 in the nine months ended September 30, 2020, compared to an increase of $181 for the same period in the prior year. The Company has also evaluated the potential impact of the pandemic on the carrying values of its goodwill and intangible assets, and based on the assessment, did not identify any indications to suggest that an impairment may exist. These estimates may change as new events occur and actual results could differ materially from these estimates.

Out of Period Adjustments

During the third quarter, the Company identified certain out of period adjustments, which were the result of errors identified related to revenue cutoff. The impact of these errors was an understatement of net sales, gross profit and net income for the three- and six-months ended June 30, 2020 by $945, $4,214 and $2,955, respectively. The related accounts receivable, inventory, and accrued expenses and other liability were also understated at June 30, 2020 as a result of these errors. The Company corrected these errors in the three month period ended September 30, 2020, resulting in an overstatement of $945, $4,214 and $2,955 in net sales, gross profit, and net income, respectively. The Company evaluated the effect of these errors on the Company’s financial statements under Accounting Standards Codification (“ASC”) 250 – Accounting Changes and Error Corrections, along with Staff Accounting Bulletin No. 99 – Materiality. Based on a review of both quantitative and qualitative factors of the materiality of the amounts, the Company concluded that the errors were not material to any previously issued condensed consolidated financial statements or for the current period in which they were corrected.

Restructuring and other charges

The restructuring and other charges recorded in the second quarter of 2020 were related to an involuntary reduction in workforce across our business segments and included cash severance and other related termination benefits. These costs will be paid within a year of termination and any unpaid balances are included in accrued expenses and other liabilities at September 30, 2020. The Company did not record any restructuring and other charges in the three months ended September 30, 2020, and as of the date of this report, the Company has no ongoing restructuring plans.

The restructuring and other charges recorded in 2019 were related to a reduction in workforce in the Company’s Headquarters/Other group and included cash severance payments and other related benefits. Also included were exit costs incurred associated with the closing of one of our office facilities, which were expensed as incurred.

Restructuring and other charges are presented separately from selling, general and administrative (“SG&A”) expenses. Costs incurred were as follows:


	Nine Months Ended September 30,
	2020		2019
Employee separations	$	992	$	553
Lease termination costs		—		150
Total restructuring and other charges	$	992	$	703

Included in accrued expenses as of September 30, 2020 and 2019 were $133 and $216, respectively, related to unpaid termination benefits.

Adoption of Recently Issued Financial Accounting Standards

In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 Company has adopted this standard beginning January 1, 2020 for both interim and annual reporting periods. The Company expects to perform a step 1 annual goodwill impairment assessment in the fourth quarter of each calendar year, and more frequently if events or circumstances occur that would indicate a potential decline in fair value. As a result of the adoption, and in accordance with the new guidance, the Company would not perform a step two analysis in the event an impairment loss is identified.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses, which adds an impairment model for financial instruments, including trade receivables, that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of lifetime expected losses, which is expected to result in more timely recognition of such losses. The Company adopted this new standard beginning January 1, 2020 for both interim and annual reporting periods. At adoption, this ASU did not have a material impact on the Company’s consolidated financial statements. The impact of the adoption of this standard was limited to the Company’s trade receivables as it does not currently have any other financial instruments that would be affected by this standard. Customers are evaluated for their credit worthiness at the time of contract inception. Based on the results of the credit assessments, the Company will extend credit under its standard payment terms or may request alternative early payment actions. In addition, the Company analyzes its aged receivables for collectability at least quarterly, and if necessary, records a reserve against those receivable it determines may not be collectable.

Recently Issued Financial Accounting Standards

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This guidance provides temporary optional expedients and exceptions to

the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate. This ASU is applied prospectively and becomes effective immediately upon the transition from LIBOR. The Company’s secured credit facility agreement references LIBOR, which is expected to be discontinued as a result of reference rate reform. The Company expects to adopt the guidance upon transition from LIBOR, but does not believe the adoption will have a material effect on its consolidated financial statements.

REVENUE

9 Months Ended

Sep. 30, 2020

Revenue

Revenue

Note 2–Revenue

The Company disaggregates revenue from its arrangements with customers by type of products and services, as it believes this method best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.

The following tables represent a disaggregation of revenue from arrangements with customers for the three months ended September 30, 2020 and 2019, along with the reportable segment for each category.


	Three Months Ended September 30, 2020
	Business Solutions		Enterprise Solutions		Public Sector Solutions		Total
Notebooks/Mobility	$	72,694	$	63,093	$	66,761	$	202,548
Desktops		20,097		33,451		9,861		63,409
Software		33,061		26,336		17,698		77,095
Servers/Storage		20,209		23,832		12,292		56,333
Net/Com Products		19,140		27,941		15,420		62,501
Displays and Sound		21,161		16,511		17,304		54,976
Accessories		27,855		40,538		14,842		83,235
Other Hardware/Services		16,768		28,065		7,822		52,655
Total net sales	$	230,985	$	259,767	$	162,000	$	652,752


	Three Months Ended September 30, 2019
	Business Solutions		Enterprise Solutions		Public Sector Solutions		Total
Notebooks/Mobility	$	79,287	$	77,214	$	63,154	$	219,655
Desktops		34,806		36,821		20,499		92,126
Software		36,879		28,439		13,205		78,523
Servers/Storage		26,352		16,374		16,576		59,302
Net/Com Products		25,200		11,666		15,695		52,561
Displays and Sound		23,224		29,641		17,669		70,534
Accessories		26,306		46,546		14,545		87,397
Other Hardware/Services		21,702		31,594		16,016		69,312
Total net sales	$	273,756	$	278,295	$	177,359	$	729,410

The following table represents a disaggregation of revenue from arrangements with customers for the nine months ended September 30, 2020 and 2019, along with the reportable segment for each category.


	Nine Months Ended September 30, 2020
	Business Solutions		Enterprise Solutions		Public Sector Solutions		Total
Notebooks/Mobility	$	226,959	$	222,139	$	146,035	$	595,133
Desktops		67,891		94,674		29,440		192,005
Software		93,710		77,394		33,340		204,444
Servers/Storage		69,685		63,042		32,058		164,785
Net/Com Products		54,916		72,172		32,674		159,762
Displays and Sound		64,338		58,603		38,433		161,374
Accessories		75,362		164,185		36,273		275,820
Other Hardware/Services		47,998		87,734		25,548		161,280
Total net sales	$	700,859	$	839,943	$	373,801	$	1,914,603


	Nine Months Ended September 30, 2019
	Business Solutions		Enterprise Solutions		Public Sector Solutions		Total
Notebooks/Mobility		240,644	$	240,621	$	125,220	$	606,485
Desktops		96,377		112,067		50,074		258,518
Software		110,826		91,954		43,362		246,142
Servers/Storage		81,452		48,536		49,149		179,137
Net/Com Products		70,806		38,866		40,918		150,590
Displays and Sound		64,422		82,812		41,839		189,073
Accessories		72,036		162,601		35,112		269,749
Other Hardware/Services		61,177		94,512		48,024		203,713
Total net sales	$	797,740	$	871,969	$	433,698	$	2,103,407

Contract Balances

The following table provides information about contract liabilities from arrangements with customers as of September 30, 2020 and December 31, 2019.


	September 30, 2020		December 31, 2019
Contract liabilities, which are included in "Accrued expenses and other liabilities"	$	1,540	$	5,942

Changes in the contract liability balances during the nine months ended September 30, 2020 and 2019 are as follows (in thousands):


	2020
Balances at December 31, 2019	$	5,942
Cash received in advance and not recognized as revenue		7,978
Amounts recognized as revenue as performance obligations satisfied		(12,380)
Balances at September 30, 2020	$	1,540

	2019
Balances at December 31, 2018	$	2,679
Cash received in advance and not recognized as revenue		8,868
Amounts recognized as revenue as performance obligations satisfied		(8,222)
Balances at September 30, 2019	$	3,325

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2020

Earnings Per Share

Earnings Per Share

Note 3–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,
	2020		2019		2020		2019
Numerator:
Net income	$	16,930	$	23,750	$	39,469	$	60,145
Denominator:
Denominator for basic earnings per share		26,130		26,323		26,158		26,339
Dilutive effect of unvested employee stock awards		181		156		179		157
Denominator for diluted earnings per share		26,311		26,479		26,337		26,496
Earnings per share:
Basic	$	0.65	$	0.90	$	1.51	$	2.28
Diluted	$	0.64	$	0.90	$	1.50	$	2.27

For the three and nine months ended September 30, 2020, the Company 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.

LEASES

9 Months Ended

Sep. 30, 2020

Leases

Leases

Note 4—Leases

The Company leases certain facilities from a related party, which is a company affiliated with us through common ownership. Included in the right-of-use asset (“ROU asset”) as of September 30, 2020 was $3,739 and a corresponding lease liability of $3,739 associated with related party leases.

As of September 30, 2020, there were no additional operating leases that have not yet commenced. Refer to the following table for quantitative information related to the Company’s leases for the three and nine months ended September 30, 2020 and 2019:


	Three months ended September 30, 2020						Nine months ended September 30, 2020
	Related Parties		Others		Total		Related Parties		Others		Total
Lease Cost
Capitalized operating lease cost	$	313	$	798	$	1,111	$	1,071	$	2,379	$	3,450
Short-term lease cost		107		2		109		188		6		194
Total lease cost	$	420	$	800	$	1,220	$	1,259	$	2,385	$	3,644

Other Information
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$	313	$	832	$	1,145	$	1,071	$	2,439	$	3,510

Weighted-average remaining lease term (in years):
Capitalized operating leases								3.17		5.81		5.13

Weighted-average discount rate:
Capitalized operating leases								3.92%		3.92%		3.92%


	Three months ended September 30, 2019						Nine months ended September 30, 2019
	Related Parties		Others		Total		Related Parties		Others		Total
Lease Cost
Capitalized operating lease cost	$	379	$	773	$	1,152	$	1,137	$	2,396	$	3,533
Short-term lease cost		41		2		43		123		6		129
Total lease cost	$	420	$	775	$	1,195	$	1,260	$	2,402	$	3,662

Other Information
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$	379	$	832	$	1,211	$	1,137	$	2,585	$	3,722

Weighted-average remaining lease term (in years):
Capitalized operating leases								4.11		6.78		5.92

Weighted-average discount rate:
Capitalized operating leases								3.92%		3.92%		3.92%

As of September 30, 2020, future lease payments over the remaining term of capitalized operating leases were as follows:


For the Years Ended December 31,		Related Parties		Others		Total
2020, excluding the nine months ended September 30, 2020	$	313	$	833	$	1,146
2021		1,253		3,092		4,345
2022		1,253		2,111		3,364
2023		1,149		1,675		2,824
2024		—		1,699		1,699
2025		—		1,594		1,594
Thereafter		—		888		888
	$	3,968	$	11,892	$	15,860

Imputed interest						(1,292)
Lease liability balance at September 30, 2020					$	14,568

As of September 30, 2020, the ROU asset had a balance of $13,768. The long-term lease liability was $10,579 and the short-term lease liability, which is included in accrued expenses and other liabilities in the consolidated balance sheets, was $3,989.

SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2020

Segment Information

Segment Information

Note 5–Segment Information

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

The Company’s 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. The Company reports 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, 2020 and 2019 is shown below:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Net sales:
Business Solutions	$	230,985	$	273,756	$	700,859	$	797,740
Enterprise Solutions		259,767		278,295		839,943		871,969
Public Sector Solutions		162,000		177,359		373,801		433,698
Total net sales	$	652,752	$	729,410	$	1,914,603	$	2,103,407
Operating income (loss):
Business Solutions	$	8,827	$	13,533	$	21,579	$	38,509
Enterprise Solutions		14,843		16,346		45,233		50,927
Public Sector Solutions		3,165		7,082		(1,964)		4,677
Headquarters/Other		(5,758)		(4,324)		(12,533)		(11,744)
Total operating income		21,077		32,637		52,315		82,369
Interest (expense) income, net		(17)		62		80		444
Income before taxes	$	21,060	$	32,699	$	52,395	$	82,813
Selected operating expense:
Depreciation and amortization:
Business Solutions	$	159	$	149	$	477	$	447
Enterprise Solutions		697		613		2,057		1,858
Public Sector Solutions		15		22		45		68
Headquarters/Other		2,962		2,323		7,756		7,811
Total depreciation and amortization	$	3,833	$	3,107	$	10,335	$	10,184
Total assets:
Business Solutions					$	343,010	$	300,360
Enterprise Solutions						551,914		488,867
Public Sector Solutions						123,520		90,437
Headquarters/Other						(15,110)		(9,016)
Total assets					$	1,003,334	$	870,648

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, right-of-use assets, and intercompany balance, net. As of September 30, 2020 and 2019, total assets for the Headquarters/Other group are presented net of intercompany balance eliminations of $60,802 and $36,077, respectively. 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-by-segment basis.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

BASIS OF PRESENTATION (Policies)

9 Months Ended

Sep. 30, 2020

Basis of Presentation

Principles of Consolidation

Use of Estimates in the Preparation of Financial Statements

Out of Period Adjustments

Restructuring and other charges

Restructuring and other charges are presented separately from selling, general and administrative (“SG&A”) expenses. Costs incurred were as follows:


	Nine Months Ended September 30,
	2020		2019
Employee separations	$	992	$	553
Lease termination costs		—		150
Total restructuring and other charges	$	992	$	703

Included in accrued expenses as of September 30, 2020 and 2019 were $133 and $216, respectively, related to unpaid termination benefits.

Adoption of Recently Issued Financial Accounting Standards and Recently Issued Financial Accounting Standards

Adoption of Recently Issued Financial Accounting Standards

Recently Issued Financial Accounting Standards

REVENUE (Tables)

9 Months Ended

Sep. 30, 2020

Revenue

Schedule of disaggregation of revenue from contracts with customers


	Three Months Ended September 30, 2020
	Business Solutions		Enterprise Solutions		Public Sector Solutions		Total
Notebooks/Mobility	$	72,694	$	63,093	$	66,761	$	202,548
Desktops		20,097		33,451		9,861		63,409
Software		33,061		26,336		17,698		77,095
Servers/Storage		20,209		23,832		12,292		56,333
Net/Com Products		19,140		27,941		15,420		62,501
Displays and Sound		21,161		16,511		17,304		54,976
Accessories		27,855		40,538		14,842		83,235
Other Hardware/Services		16,768		28,065		7,822		52,655
Total net sales	$	230,985	$	259,767	$	162,000	$	652,752


	Three Months Ended September 30, 2019
	Business Solutions		Enterprise Solutions		Public Sector Solutions		Total
Notebooks/Mobility	$	79,287	$	77,214	$	63,154	$	219,655
Desktops		34,806		36,821		20,499		92,126
Software		36,879		28,439		13,205		78,523
Servers/Storage		26,352		16,374		16,576		59,302
Net/Com Products		25,200		11,666		15,695		52,561
Displays and Sound		23,224		29,641		17,669		70,534
Accessories		26,306		46,546		14,545		87,397
Other Hardware/Services		21,702		31,594		16,016		69,312
Total net sales	$	273,756	$	278,295	$	177,359	$	729,410


	Nine Months Ended September 30, 2020
	Business Solutions		Enterprise Solutions		Public Sector Solutions		Total
Notebooks/Mobility	$	226,959	$	222,139	$	146,035	$	595,133
Desktops		67,891		94,674		29,440		192,005
Software		93,710		77,394		33,340		204,444
Servers/Storage		69,685		63,042		32,058		164,785
Net/Com Products		54,916		72,172		32,674		159,762
Displays and Sound		64,338		58,603		38,433		161,374
Accessories		75,362		164,185		36,273		275,820
Other Hardware/Services		47,998		87,734		25,548		161,280
Total net sales	$	700,859	$	839,943	$	373,801	$	1,914,603


	Nine Months Ended September 30, 2019
	Business Solutions		Enterprise Solutions		Public Sector Solutions		Total
Notebooks/Mobility		240,644	$	240,621	$	125,220	$	606,485
Desktops		96,377		112,067		50,074		258,518
Software		110,826		91,954		43,362		246,142
Servers/Storage		81,452		48,536		49,149		179,137
Net/Com Products		70,806		38,866		40,918		150,590
Displays and Sound		64,422		82,812		41,839		189,073
Accessories		72,036		162,601		35,112		269,749
Other Hardware/Services		61,177		94,512		48,024		203,713
Total net sales	$	797,740	$	871,969	$	433,698	$	2,103,407

Schedule of information on contract liability


	September 30, 2020		December 31, 2019
Contract liabilities, which are included in "Accrued expenses and other liabilities"	$	1,540	$	5,942

Changes in the contract liability balances during the nine months ended September 30, 2020 and 2019 are as follows (in thousands):


	2020
Balances at December 31, 2019	$	5,942
Cash received in advance and not recognized as revenue		7,978
Amounts recognized as revenue as performance obligations satisfied		(12,380)
Balances at September 30, 2020	$	1,540

	2019
Balances at December 31, 2018	$	2,679
Cash received in advance and not recognized as revenue		8,868
Amounts recognized as revenue as performance obligations satisfied		(8,222)
Balances at September 30, 2019	$	3,325

EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2020

Earnings Per Share

Computation of basic and diluted earnings per share


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Numerator:
Net income	$	16,930	$	23,750	$	39,469	$	60,145
Denominator:
Denominator for basic earnings per share		26,130		26,323		26,158		26,339
Dilutive effect of unvested employee stock awards		181		156		179		157
Denominator for diluted earnings per share		26,311		26,479		26,337		26,496
Earnings per share:
Basic	$	0.65	$	0.90	$	1.51	$	2.28
Diluted	$	0.64	$	0.90	$	1.50	$	2.27

LEASES (Tables)

9 Months Ended

Sep. 30, 2020

Leases

Schedule of lease cost


	Three months ended September 30, 2020						Nine months ended September 30, 2020
	Related Parties		Others		Total		Related Parties		Others		Total
Lease Cost
Capitalized operating lease cost	$	313	$	798	$	1,111	$	1,071	$	2,379	$	3,450
Short-term lease cost		107		2		109		188		6		194
Total lease cost	$	420	$	800	$	1,220	$	1,259	$	2,385	$	3,644

Other Information
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$	313	$	832	$	1,145	$	1,071	$	2,439	$	3,510

Weighted-average remaining lease term (in years):
Capitalized operating leases								3.17		5.81		5.13

Weighted-average discount rate:
Capitalized operating leases								3.92%		3.92%		3.92%


	Three months ended September 30, 2019						Nine months ended September 30, 2019
	Related Parties		Others		Total		Related Parties		Others		Total
Lease Cost
Capitalized operating lease cost	$	379	$	773	$	1,152	$	1,137	$	2,396	$	3,533
Short-term lease cost		41		2		43		123		6		129
Total lease cost	$	420	$	775	$	1,195	$	1,260	$	2,402	$	3,662

Other Information
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$	379	$	832	$	1,211	$	1,137	$	2,585	$	3,722

Weighted-average remaining lease term (in years):
Capitalized operating leases								4.11		6.78		5.92

Weighted-average discount rate:
Capitalized operating leases								3.92%		3.92%		3.92%

Schedule of future lease payments on capitalized operating leases


For the Years Ended December 31,		Related Parties		Others		Total
2020, excluding the nine months ended September 30, 2020	$	313	$	833	$	1,146
2021		1,253		3,092		4,345
2022		1,253		2,111		3,364
2023		1,149		1,675		2,824
2024		—		1,699		1,699
2025		—		1,594		1,594
Thereafter		—		888		888
	$	3,968	$	11,892	$	15,860

Imputed interest						(1,292)
Lease liability balance at September 30, 2020					$	14,568

SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2020

Segment Information

Segment information applicable to reportable operating segments


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Net sales:
Business Solutions	$	230,985	$	273,756	$	700,859	$	797,740
Enterprise Solutions		259,767		278,295		839,943		871,969
Public Sector Solutions		162,000		177,359		373,801		433,698
Total net sales	$	652,752	$	729,410	$	1,914,603	$	2,103,407
Operating income (loss):
Business Solutions	$	8,827	$	13,533	$	21,579	$	38,509
Enterprise Solutions		14,843		16,346		45,233		50,927
Public Sector Solutions		3,165		7,082		(1,964)		4,677
Headquarters/Other		(5,758)		(4,324)		(12,533)		(11,744)
Total operating income		21,077		32,637		52,315		82,369
Interest (expense) income, net		(17)		62		80		444
Income before taxes	$	21,060	$	32,699	$	52,395	$	82,813
Selected operating expense:
Depreciation and amortization:
Business Solutions	$	159	$	149	$	477	$	447
Enterprise Solutions		697		613		2,057		1,858
Public Sector Solutions		15		22		45		68
Headquarters/Other		2,962		2,323		7,756		7,811
Total depreciation and amortization	$	3,833	$	3,107	$	10,335	$	10,184
Total assets:
Business Solutions					$	343,010	$	300,360
Enterprise Solutions						551,914		488,867
Public Sector Solutions						123,520		90,437
Headquarters/Other						(15,110)		(9,016)
Total assets					$	1,003,334	$	870,648

BASIS OF PRESENTATION - Out of Period Adjustments (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended	9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2019	Jun. 30, 2020	Sep. 30, 2020	Sep. 30, 2019
Out of Period Adjustments
Net sales	$ 652,752		$ 729,410		$ 1,914,603	$ 2,103,407
Gross profit	107,830		118,863		309,947	335,197
Net income	16,930		$ 23,750		$ 39,469	$ 60,145
Revenue Cutoff \| Net Sales
Out of Period Adjustments
Mistatement in prior periods		$ (945)		$ (945)
Revenue Cutoff \| Gross Profit
Out of Period Adjustments
Mistatement in prior periods		(4,214)		(4,214)
Revenue Cutoff \| Net Income
Out of Period Adjustments
Mistatement in prior periods		$ (2,955)		$ (2,955)
Revenue Cutoff \| Revision of Prior Period Error Correction Adjustment
Out of Period Adjustments
Net sales	945
Gross profit	4,214
Net income	$ 2,955

REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Disaggregation of revenue
Net sales	$ 652,752	$ 729,410	$ 1,914,603	$ 2,103,407
Notebooks/Mobility
Disaggregation of revenue
Net sales	202,548	219,655	595,133	606,485
Desktops
Disaggregation of revenue
Net sales	63,409	92,126	192,005	258,518
Software
Disaggregation of revenue
Net sales	77,095	78,523	204,444	246,142
Servers/Storage
Disaggregation of revenue
Net sales	56,333	59,302	164,785	179,137
Net/Com Products
Disaggregation of revenue
Net sales	62,501	52,561	159,762	150,590
Displays and Sound
Disaggregation of revenue
Net sales	54,976	70,534	161,374	189,073
Accessories
Disaggregation of revenue
Net sales	83,235	87,397	275,820	269,749
Other Hardware/Services
Disaggregation of revenue
Net sales	52,655	69,312	161,280	203,713
Business Solutions
Disaggregation of revenue
Net sales	230,985	273,756	700,859	797,740
Business Solutions \| Notebooks/Mobility
Disaggregation of revenue
Net sales	72,694	79,287	226,959	240,644
Business Solutions \| Desktops
Disaggregation of revenue
Net sales	20,097	34,806	67,891	96,377
Business Solutions \| Software
Disaggregation of revenue
Net sales	33,061	36,879	93,710	110,826
Business Solutions \| Servers/Storage
Disaggregation of revenue
Net sales	20,209	26,352	69,685	81,452
Business Solutions \| Net/Com Products
Disaggregation of revenue
Net sales	19,140	25,200	54,916	70,806
Business Solutions \| Displays and Sound
Disaggregation of revenue
Net sales	21,161	23,224	64,338	64,422
Business Solutions \| Accessories
Disaggregation of revenue
Net sales	27,855	26,306	75,362	72,036
Business Solutions \| Other Hardware/Services
Disaggregation of revenue
Net sales	16,768	21,702	47,998	61,177
Enterprise Solutions
Disaggregation of revenue
Net sales	259,767	278,295	839,943	871,969
Enterprise Solutions \| Notebooks/Mobility
Disaggregation of revenue
Net sales	63,093	77,214	222,139	240,621
Enterprise Solutions \| Desktops
Disaggregation of revenue
Net sales	33,451	36,821	94,674	112,067
Enterprise Solutions \| Software
Disaggregation of revenue
Net sales	26,336	28,439	77,394	91,954
Enterprise Solutions \| Servers/Storage
Disaggregation of revenue
Net sales	23,832	16,374	63,042	48,536
Enterprise Solutions \| Net/Com Products
Disaggregation of revenue
Net sales	27,941	11,666	72,172	38,866
Enterprise Solutions \| Displays and Sound
Disaggregation of revenue
Net sales	16,511	29,641	58,603	82,812
Enterprise Solutions \| Accessories
Disaggregation of revenue
Net sales	40,538	46,546	164,185	162,601
Enterprise Solutions \| Other Hardware/Services
Disaggregation of revenue
Net sales	28,065	31,594	87,734	94,512
Public Sector Solutions
Disaggregation of revenue
Net sales	162,000	177,359	373,801	433,698
Public Sector Solutions \| Notebooks/Mobility
Disaggregation of revenue
Net sales	66,761	63,154	146,035	125,220
Public Sector Solutions \| Desktops
Disaggregation of revenue
Net sales	9,861	20,499	29,440	50,074
Public Sector Solutions \| Software
Disaggregation of revenue
Net sales	17,698	13,205	33,340	43,362
Public Sector Solutions \| Servers/Storage
Disaggregation of revenue
Net sales	12,292	16,576	32,058	49,149
Public Sector Solutions \| Net/Com Products
Disaggregation of revenue
Net sales	15,420	15,695	32,674	40,918
Public Sector Solutions \| Displays and Sound
Disaggregation of revenue
Net sales	17,304	17,669	38,433	41,839
Public Sector Solutions \| Accessories
Disaggregation of revenue
Net sales	14,842	14,545	36,273	35,112
Public Sector Solutions \| Other Hardware/Services
Disaggregation of revenue
Net sales	$ 7,822	$ 16,016	$ 25,548	$ 48,024

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Numerator:
Net income	$ 16,930	$ 23,750	$ 39,469	$ 60,145
Denominator:
Denominator for basic earnings per share	26,130	26,323	26,158	26,339
Dilutive effect of unvested employee stock awards	181	156	179	157
Denominator for diluted earnings per share	26,311	26,479	26,337	26,496
Earnings per share:
Basic	$ 0.65	$ 0.90	$ 1.51	$ 2.28
Diluted	$ 0.64	$ 0.90	$ 1.50	$ 2.27
Additional Disclosure
Employee stock awards excluded from computation of diluted earnings per share	0	0	0	0

LEASES - Lease Cost and Other Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($) lease	Sep. 30, 2019 USD ($)	Dec. 31, 2019 USD ($)
Leases
Right-of-use assets	$ 13,768		$ 13,768		$ 13,842
Lease liability	14,568		$ 14,568
Number of additional operating or financing leases not yet commenced \| lease			0
Lease Cost
Capitalized operating lease cost	1,111	$ 1,152	$ 3,450	$ 3,533
Short-term lease cost	109	43	194	129
Total lease cost	1,220	1,195	3,644	3,662
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$ 1,145	$ 1,211	$ 3,510	$ 3,722
Weighted-average remaining lease term - Capitalized operating leases (in years)	5 years 1 month 17 days	5 years 11 months 1 day	5 years 1 month 17 days	5 years 11 months 1 day
Weighted-average discount rate - Capitalized operating leases	3.92%	3.92%	3.92%	3.92%
Related Parties
Leases
Right-of-use assets	$ 3,739		$ 3,739
Lease liability	3,739		3,739
Lease Cost
Capitalized operating lease cost	313	$ 379	1,071	$ 1,137
Short-term lease cost	107	41	188	123
Total lease cost	420	420	1,259	1,260
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$ 313	$ 379	$ 1,071	$ 1,137
Weighted-average remaining lease term - Capitalized operating leases (in years)	3 years 2 months 1 day	4 years 1 month 9 days	3 years 2 months 1 day	4 years 1 month 9 days
Weighted-average discount rate - Capitalized operating leases	3.92%	3.92%	3.92%	3.92%
Others
Lease Cost
Capitalized operating lease cost	$ 798	$ 773	$ 2,379	$ 2,396
Short-term lease cost	2	2	6	6
Total lease cost	800	775	2,385	2,402
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$ 832	$ 832	$ 2,439	$ 2,585
Weighted-average remaining lease term - Capitalized operating leases (in years)	5 years 9 months 21 days	6 years 9 months 10 days	5 years 9 months 21 days	6 years 9 months 10 days
Weighted-average discount rate - Capitalized operating leases	3.92%	3.92%	3.92%	3.92%

LEASES - Future Lease Payments (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Future lease payments over the remaining term of capitalized operating leases
2020, excluding the nine months ended September 30, 2020	$ 1,146
2021	4,345
2022	3,364
2023	2,824
2024	1,699
2025	1,594
Thereafter	888
Total	15,860
Imputed interest	(1,292)
Lease liability balance	14,568
Right-of-use assets	13,768	$ 13,842
Long-term lease liability	10,579	$ 10,330
Short-term lease liability	$ 3,989
Current operating lease liability, Statement of Financial Position	us-gaap:AccruedLiabilitiesAndOtherLiabilities
Related Parties
Future lease payments over the remaining term of capitalized operating leases
2020, excluding the nine months ended September 30, 2020	$ 313
2021	1,253
2022	1,253
2023	1,149
Total	3,968
Lease liability balance	3,739
Right-of-use assets	3,739
Others
Future lease payments over the remaining term of capitalized operating leases
2020, excluding the nine months ended September 30, 2020	833
2021	3,092
2022	2,111
2023	1,675
2024	1,699
2025	1,594
Thereafter	888
Total	$ 11,892

SEGMENT INFORMATION - Segment Information Applicable to Reportable Operating Segments (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($) segment	Sep. 30, 2019 USD ($)	Dec. 31, 2019 USD ($)
Segment Reporting Information
Number of reportable segments \| segment			3
Number of operating segments \| segment			3
Net sales:
Net sales	$ 652,752	$ 729,410	$ 1,914,603	$ 2,103,407
Operating income (loss):
Operating income (loss)	21,077	32,637	52,315	82,369
Interest (expense) income, net	(17)	62	80	444
Income before taxes	21,060	32,699	52,395	82,813
Depreciation and amortization:
Depreciation and amortization	3,833	3,107	10,335	10,184
Total assets:
Total assets	1,003,334	870,648	1,003,334	870,648	$ 937,335
Goodwill	73,602		73,602		$ 73,602
Business Solutions
Net sales:
Net sales	230,985	273,756	700,859	797,740
Enterprise Solutions
Net sales:
Net sales	259,767	278,295	839,943	871,969
Public Sector Solutions
Net sales:
Net sales	162,000	177,359	373,801	433,698
Operating Segments \| Business Solutions
Net sales:
Net sales	230,985	273,756	700,859	797,740
Operating income (loss):
Operating income (loss)	8,827	13,533	21,579	38,509
Depreciation and amortization:
Depreciation and amortization	159	149	477	447
Total assets:
Total assets	343,010	300,360	343,010	300,360
Operating Segments \| Enterprise Solutions
Net sales:
Net sales	259,767	278,295	839,943	871,969
Operating income (loss):
Operating income (loss)	14,843	16,346	45,233	50,927
Depreciation and amortization:
Depreciation and amortization	697	613	2,057	1,858
Total assets:
Total assets	551,914	488,867	551,914	488,867
Operating Segments \| Public Sector Solutions
Net sales:
Net sales	162,000	177,359	373,801	433,698
Operating income (loss):
Operating income (loss)	3,165	7,082	(1,964)	4,677
Depreciation and amortization:
Depreciation and amortization	15	22	45	68
Total assets:
Total assets	123,520	90,437	123,520	90,437
Headquarters/Other
Operating income (loss):
Operating income (loss)	(5,758)	(4,324)	(12,533)	(11,744)
Depreciation and amortization:
Depreciation and amortization	2,962	2,323	7,756	7,811
Total assets:
Assets net of intercompany balance eliminations	(15,110)	(9,016)	(15,110)	(9,016)
Intersegment Elimination
Total assets:
Total assets	$ (60,802)	$ (36,077)	$ (60,802)	$ (36,077)

BANK BORROWINGS (Details) - USD ($) $ in Thousands	9 Months Ended
BANK BORROWINGS (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019
Subordinated Borrowing
Line of credit, borrowing capacity	$ 50,000
Credit facility, expiration date	Feb. 10, 2022
Line of credit, maximum borrowing capacity	$ 80,000
Debt instrument, description of variable rate basis	One-month LIBOR
Line of credit, outstanding borrowing	$ 0	$ 0
Line of credit, available for borrowing	$ 50,000	$ 50,000
Maximum
Subordinated Borrowing
Debt ratio	2.0
Prime Rate
Subordinated Borrowing
Debt instrument, interest rate	3.25%
One-month LIBOR rate
Subordinated Borrowing
Debt instrument, interest rate	0.15%

BASIS OF PRESENTATION - Restructuring and Other Charges (Details) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Dec. 31, 2019 facility
Restructuring and other charges
Number of office facilities closed \| facility			1
Restructuring and other charges	$ 992	$ 703
Accrued employee termination benefits	133	216
Customer allowance for doubtful accounts
Increase in customer allowance for doubtful accounts due to COVID-19	3,276	181
Employee separations
Restructuring and other charges
Restructuring and other charges	$ 992	553
Lease termination costs
Restructuring and other charges
Restructuring and other charges		$ 150