0001558370-24-002727 | 10-K | XBRL Viewer

Print Document View Excel Document

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Numerator:
Net Income (Loss)	$ 83,271	$ 89,219	$ 69,906
Denominator:
Denominator for basic earnings per share	26,287	26,279	26,196
Dilutive effect of employee stock awards	142	164	168
Denominator for diluted earnings per share	26,429	26,443	26,364
Earnings per share:
Basic	$ 3.17	$ 3.40	$ 2.67
Diluted	$ 3.15	$ 3.37	$ 2.65
Additional Disclosure
Employee stock awards excluded from computation of diluted earnings per share	$ 0	$ 0	$ 0

CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Consolidated Statements Of Other Comprehensive Income
Net Income (Loss)	$ 83,271	$ 89,219	$ 69,906
Other comprehensive income
Unrealized gains on available-for-sale investments, net of tax of $(22)	81
Comprehensive income	$ 83,352	$ 89,219	$ 69,906

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 323
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481687/323-10-50-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 28
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482907/825-10-50-28

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482765/220-10-50-6

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-3

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-8

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-9

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-11

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-11

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-4

Reference 13: http://www.xbrl.org/2003/role/exampleRef
-Topic 946
-SubTopic 830
-Name Accounting Standards Codification
-Section 55
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480167/946-830-55-10

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section 45
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483581/946-220-45-7

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(18))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483586/944-220-S99-1

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(9))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.6-09(1)(d))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-3

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 20: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 29: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 30: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 31: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 60B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482689/260-10-45-60B

Reference 32: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 33: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 34: http://www.xbrl.org/2003/role/disclosureRef
-Topic 205
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483499/205-20-50-7

Reference 35: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 230
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 28
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482740/230-10-45-28

Reference 36: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 1A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482790/220-10-45-1A

Reference 37: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 1B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482790/220-10-45-1B

Reference 38: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(20))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483621/220-10-S99-2

Reference 39: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 942
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1

+ Details

PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2023

Property and Equipment

Property and Equipment

6. PROPERTY AND EQUIPMENT

Property and equipment consisted of the following (in thousands):


	December 31,
	2023		2022
Computer software, including licenses and internally-developed software	$	93,373	$	87,645
Furniture and equipment		36,916		39,316
Leasehold improvements		8,463		8,964
Total		138,752		135,925
Accumulated depreciation and amortization		(82,094)		(76,754)
Property and equipment, net	$	56,658	$	59,171

The Company recorded depreciation and amortization expense for property and equipment of $11,434, $10,758, and $10,982 in 2023, 2022, and 2021, respectively.

ACCRUED EXPENSES AND OTHER LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2023

Accrued Expenses and Other Liabilities

Schedule of Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities consisted of the following (in thousands):


	December 31,
	2023		2022
Customer and vendor deposits	$	24,414	$	32,594
Sales tax		6,144		2,816
Short term lease liability		1,733		3,170
Other		11,552		15,228
Accrued expenses and other liabilities	$	43,843	$	53,808

INCOME TAXES - Components of Deferred Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Deferred tax assets:
Allowance for credit losses	$ 965	$ 1,349
Inventory costs capitalized for tax purposes	127	227
Inventory valuation reserves	342	57
Sales return reserves	116	140
Deductible expenses, primarily employee-benefit related	6	79
Accrued compensation	1,304	2,249
Operating lease liability	1,251	2,084
Other	956	632
Capitalized research and development	1,542	598
Stock-based compensation	1,937	1,281
State tax loss carryforwards	941	1,151
State tax credit carryforwards	921
Total gross deferred tax assets	10,408	9,847
Less: Valuation allowance	(1,789)	(1,064)
Net deferred tax assets	8,619	8,783
Deferred tax liabilities:
Goodwill and other intangibles	(14,227)	(13,990)
Property and equipment	(8,877)	(10,572)
Right-of-use assets	(1,106)	(1,930)
Prepaid expenses	(253)	(261)
Total gross deferred tax liabilities.	(24,463)	(26,753)
Net deferred tax liability	(15,844)	(17,970)
Noncurrent deferred tax liability	(15,844)	(17,970)
Net deferred tax liability	$ (15,844)	$ (17,970)

GOODWILL AND OTHER INTANGIBLE ASSETS - Estimated Amortization Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure
2024	$ 1,220
2025	1,220
2026	538
Net Amount	$ 2,978	$ 4,198

ACCRUED EXPENSES AND OTHER LIABILITIES (Detail) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Accrued Expenses and Other Liabilities
Customer and vendor deposits	$ 24,414	$ 32,594
Sales taxes	6,144	2,816
Short-term lease liability	1,733	3,170
Other	11,552	15,228
Accrued expenses and other liabilities	$ 43,843	$ 53,808

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION - Nonvested Stock Award and Unit Activity (Details) - Nonvested Stock Units - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Shares
Nonvested shares beginning balance	535
Granted	107
Vested	(172)
Canceled	(20)
Nonvested shares ending balance	450	535
Weighted-Average Grant Date Fair Value
Nonvested shares beginning balance	$ 42.44
Granted	62.50	$ 53.50	$ 46.02
Vested	41.93
Canceled	49.36
Nonvested shares ending balance	$ 47.09	$ 42.44

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration Risk (Details) - Net Sales - customer	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Customer \| Single Customer
Concentration risk
Number of customers that exceeded the risk benchmark of 10%.	0	0	0
Supplier \| Ingram Micro Inc.
Concentration risk
Percentage of product purchases from vendor	21.00%	23.00%	23.00%
Supplier \| TD Synnex Corporation
Concentration risk
Percentage of product purchases from vendor	19.00%	22.00%	23.00%
Supplier \| Microsoft Corporation
Concentration risk
Percentage of product purchases from vendor	11.00%
Percentage of product purchases manufactured by supplier	15.00%	12.00%	11.00%
Supplier \| Dell, Inc.
Concentration risk
Percentage of product purchases from vendor		15.00%	12.00%
Percentage of product purchases manufactured by supplier	11.00%	13.00%	14.00%
Supplier \| HP, Inc.
Concentration risk
Percentage of product purchases manufactured by supplier	13.00%	14.00%	15.00%
Supplier \| Lenovo
Concentration risk
Percentage of product purchases manufactured by supplier		11.00%	10.00%

INCOME TAXES - Reconciliation of Income Tax Provision To Total Income Taxes At Statutory Federal Tax Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Taxes
Federal income taxes, at statutory tax rate	$ 23,754	$ 25,543	$ 20,270
State income taxes, net of federal benefit	5,498	5,954	5,954
Nondeductible expenses	589	928	645
Other, net	2	(9)	(253)
Income tax provision	$ 29,843	$ 32,416	$ 26,616

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Current:
Federal	$ 24,648	$ 25,483	$ 18,450
State	7,343	8,200	7,413
Total current	31,991	33,683	25,863
Deferred:
Federal	(1,845)	(743)	655
State	(303)	(524)	98
Total deferred	(2,148)	(1,267)	753
Income tax provision	$ 29,843	$ 32,416	$ 26,616

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION - Dividend Payments (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Dividends Payable [Line Items]
Dividend per share		$ 0.34	$ 1.00
Record date		Dec. 05, 2022	Nov. 18, 2021
Payment date		Dec. 23, 2022	Dec. 03, 2021
Total dividend		$ 8,948	$ 26,224
Dividend 1
Dividends Payable [Line Items]
Dividend per share	$ 0.08
Declaration date	Feb. 09, 2023
Record date	Feb. 21, 2023
Payment date	Mar. 10, 2023
Total dividend	$ 2,107
Dividend 2
Dividends Payable [Line Items]
Dividend per share	$ 0.08
Declaration date	May 04, 2023
Record date	May 16, 2023
Payment date	Jun. 02, 2023
Total dividend	$ 2,099
Dividend 3
Dividends Payable [Line Items]
Dividend per share	$ 0.08
Declaration date	Aug. 02, 2023
Record date	Aug. 15, 2023
Payment date	Sep. 01, 2023
Total dividend	$ 2,101
Dividend 4
Dividends Payable [Line Items]
Dividend per share	$ 0.08
Declaration date	Oct. 31, 2023
Record date	Nov. 14, 2023
Payment date	Dec. 01, 2023
Total dividend	$ 2,103

LEASES

12 Months Ended

Dec. 31, 2023

Leases

Leases

7. LEASES

The Company leases certain facilities from a related party, which is affiliated with the Company through common ownership.

As of December 31, 2023, the Company had no leases that were classified as financing leases and there were no additional operating or financing leases that have not yet commenced. Refer to the following table for quantitative information related to the Company’s leases for the year ended December 31, 2023 and 2022 (dollars in thousands):


	Year Ended December 31, 2023
	Related Parties		Others		Total
Lease Cost
Capitalized operating lease cost	$	1,149	$	2,235	$	3,384
Short-term lease cost		532		459		991
Total lease cost	$	1,681	$	2,694	$	4,375

Other Information
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$	1,149	$	2,266	$	3,415

Weighted-average remaining lease term (in years):
Capitalized operating leases		—		2.92		2.92

Weighted-average discount rate:
Capitalized operating leases		3.92%		4.08%		4.04%

	Year Ended December 31, 2022
	Related Parties		Others		Total
Lease Cost
Capitalized operating lease cost	$	1,253	$	2,821	$	4,074
Short-term lease cost		428		121		549
Total lease cost	$	1,681	$	2,942	$	4,623

Other Information
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$	1,253	$	2,846	$	4,099

Weighted-average remaining lease term (in years):
Capitalized operating leases		0.92		4.03		3.60

Weighted-average discount rate:
Capitalized operating leases		3.92%		4.05%		4.03%

As of December 31, 2023, future lease payments over the remaining term of capitalized operating leases were as follows (in thousands):


For the Years Ended December 31,		Related Parties		Others		Total
2024	$	1,312	$	574	$	1,886
2025		163		1,650		1,813
2026		163		957		1,120
2027		1		236		237
2028		—		161		161
Thereafter		—		—		—
	$	1,639	$	3,578	$	5,217

Imputed interest						(303)
Lease liability balance at December 31, 2023					$	4,914

As of December 31, 2023, the ROU asset had a balance of $4,340. The long-term lease liability was $3,181 and the short-term lease liability, which is included in accrued expenses and other liabilities in the consolidated balance sheets, was $1,733.

As of December 31, 2022, the ROU asset had a balance of $7,558. The long-term lease liability was $4,994 and the short-term lease liability, which is included in accrued expenses and other liabilities in the consolidated balance sheets, was $3,170.

GOODWILL AND OTHER INTANGIBLE ASSETS - Amortizable Intangible Assets and Related Accumulated Amortization (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2016
Intangible Assets
Indefinite-lived intangible assets	$ 450
Gross Amount	16,790	$ 16,790
Accumulated Amortization	13,812	12,592
Net Amount	2,978	4,198
Amortization expense	$ 1,220	1,220	$ 1,220
Customer List
Intangible Assets
Estimated useful lives	8 years
Gross Amount	$ 3,400	3,400
Accumulated Amortization	$ 3,400	3,400
Tradename
Intangible Assets
Estimated useful lives	5 years
Gross Amount	$ 1,190	1,190
Accumulated Amortization	$ 1,190	1,190
Customer relationships
Intangible Assets
Acquired estimated useful lives				10 years
Estimated useful lives	10 years
Gross Amount	$ 12,200	12,200
Accumulated Amortization	9,222	8,002
Net Amount	$ 2,978	$ 4,198

SEGMENT AND RELATED DISCLOSURES

12 Months Ended

Dec. 31, 2023

Segment Information

Segment and Related Disclosures

14. SEGMENT AND RELATED DISCLOSURES

The internal reporting structure used by the Company’s chief operating decision maker, or CODM, to assess performance and allocate resources determines the basis for the Company’s 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 reporting segments—the Enterprise Solutions segment, which serves primarily medium-to-large corporations; the Business Solutions segment, which serves primarily SMBs; and the Public Sector Solutions segment, which serves primarily federal, state, and local government and educational institutions. In addition, the Headquarters/Other group provides services in areas such as finance, human resources, IT, 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.

Net sales presented below exclude inter-segment product revenues. Segment information applicable to the Company’s operating segments for the years ended December 31, 2023, 2022, and 2021 is shown below (in thousands):


	Years Ended December 31,
	2023		2022		2021
Net sales:
Enterprise Solutions	$	1,201,131	$	1,324,361	$	1,249,459
Business Solutions		1,075,599		1,245,311		1,098,496
Public Sector Solutions		573,914		555,324		544,640
Total net sales	$	2,850,644	$	3,124,996	$	2,892,595
Operating income (loss):
Enterprise Solutions	$	39,216	$	53,477	$	74,653
Business Solutions		76,150		79,475		43,783
Public Sector Solutions		2,177		1,105		(4,928)
Headquarters/Other		(14,390)		(13,505)		(16,991)
Total operating income		103,153		120,552		96,517
Other income, net		9,961		1,083		5
Income before taxes	$	113,114	$	121,635	$	96,522
Selected operating expense:
Depreciation and amortization:
Enterprise Solutions	$	1,452	$	1,992	$	2,408
Business Solutions		628		661		655
Public Sector Solutions		84		78		62
Headquarters/Other		10,490		9,247		9,077
Total depreciation and amortization	$	12,654	$	11,978	$	12,202
Total assets:
Enterprise Solutions	$	704,577	$	660,374
Business Solutions		502,739		445,698
Public Sector Solutions		79,384		84,939
Headquarters/Other		(98,319)		(91,185)
Total assets	$	1,188,381	$	1,099,826

The assets of the Company’s operating segments presented above consist primarily of accounts receivable, net intercompany receivable, goodwill, and other intangibles. Goodwill of $66,236 and $7,366 is held by the Enterprise Solutions and Business Solutions segments, respectively, as of December 31, 2023. 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 balances eliminations of $35,522 and $43,679 for the years ended December 31, 2023 and 2022, respectively. The Company’s capital expenditures consist largely of IT hardware and software purchased to maintain or upgrade its management information systems. These systems serve all of the Company’s subsidiaries, to varying degrees, and as a result, the CODM does not evaluate capital expenditures on a segment basis.

Substantially all of the Company’s sales in 2023, 2022, and 2021 were made to customers located in the United States. Shipments to customers located in foreign countries were not more than 2% of total net sales in 2023, 2022, and 2021. All of the Company’s assets as of December 31, 2023 and 2022 were located in the United States. The Company’s primary target customers are SMBs, medium-to-large businesses, and federal, state, and local government agencies and educational institutions.

- 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
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//280/tableOfContent

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-26

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-34

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

+ Details

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash Flows provided by (used in) Operating Activities:
Net income	$ 83,271	$ 89,219	$ 69,906
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	12,654	11,978	12,202
Adjustments to credit losses reserve	1,847	3,252	3,307
Stock-based compensation expense	7,022	5,675	4,231
Deferred income taxes	(2,148)	(1,308)	753
Amortization of discount on short-term investments	(1,522)
Loss (gain) on disposal of fixed assets	572	17	(36)
Changes in assets and liabilities:
Accounts receivable	1,599	(6,000)	(1,318)
Inventories	84,503	(2,127)	(65,688)
Prepaid expenses and other current assets	(8,540)	(1,884)	1,421
Other non-current assets	(659)	(145)	435
Accounts payable	31,146	(49,056)	14,814
Accrued expenses and other liabilities	(11,791)	(14,732)	17,727
Net cash provided by operating activities	197,954	34,889	57,754
Cash Flows used in Investing Activities:
Purchases of short-term investments	(150,607)
Purchases of equipment and capitalized software	(9,595)	(9,077)	(10,302)
Proceeds from sale of equipment			69
Proceeds from life insurance			1,500
Net cash used in investing activities	(160,202)	(9,077)	(8,733)
Cash Flows used in Financing Activities:
Proceeds from short-term borrowings	88,198	36,463
Repayment of short-term borrowings	(88,198)	(36,463)
Purchase of treasury shares	(5,392)
Dividend payments	(8,410)	(8,948)	(34,599)
Issuance of stock under Employee Stock Purchase Plan	1,089
Payments of payroll taxes on stock-based compensation through shares withheld	(3,015)	(2,244)	(1,767)
Net cash used in financing activities	(15,728)	(11,192)	(36,366)
Increase in cash and cash equivalents	22,024	14,620	12,655
Cash and cash equivalents, beginning of year	122,930	108,310	95,655
Cash and cash equivalents, end of period	144,954	122,930	108,310
Non-cash Investing and Financing Activities:
Accrued capital expenditures	90	192	334
Accrued excise tax on treasury purchases	54
Supplemental Cash Flow Information:
Income taxes paid	41,668	33,687	$ 21,465
Interest paid	$ 24	$ 4

BANK BORROWINGS (Details) - USD ($) $ in Thousands	12 Months Ended
BANK BORROWINGS (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Subordinated Borrowing
Line of credit, borrowing capacity	$ 50,000	$ 50,000
Credit facility, expiration date	Mar. 31, 2025
Line of credit, maximum borrowing capacity	$ 80,000
Proceeds from short-term borrowings	88,198	36,463
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	8.50%

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Income Taxes

Provision for Income Taxes

The provision for income taxes consisted of the following (in thousands):


	Years Ended December 31,
	2023		2022		2021
Current:
Federal	$	24,648	$	25,483	$	18,450
State		7,343		8,200		7,413
Total current		31,991		33,683		25,863
Deferred:
Federal		(1,845)		(743)		655
State		(303)		(524)		98
Total deferred		(2,148)		(1,267)		753
Provision for income taxes	$	29,843	$	32,416	$	26,616

Components of Deferred Taxes

The components of the deferred taxes as of December 31, 2023 and 2022 are as follows (in thousands):


	2023		2022
Deferred tax assets:
Allowance for credit losses	$	965	$	1,349
Inventory costs capitalized for tax purposes		127		227
Inventory valuation reserves		342		57
Sales return reserves		116		140
Deductible expenses, primarily employee-benefit related		6		79
Accrued compensation		1,304		2,249
Operating lease liability		1,251		2,084
Other		956		632
Capitalized research and development		1,542		598
Stock-based compensation		1,937		1,281
State tax loss carryforwards		941		1,151
State tax credit carryforwards		921		—
Total gross deferred tax assets		10,408		9,847
Less: Valuation allowance		(1,789)		(1,064)
Net deferred tax assets		8,619		8,783

Deferred tax liabilities:
Goodwill and other intangibles		(14,227)		(13,990)
Property and equipment		(8,877)		(10,572)
Right-of-use assets		(1,106)		(1,930)
Prepaid expenses		(253)		(261)
Total gross deferred tax liabilities		(24,463)		(26,753)
Net deferred tax liability	$	(15,844)	$	(17,970)


Current deferred tax assets	$	—	$	—
Noncurrent deferred tax liability		(15,844)		(17,970)
Net deferred tax liability	$	(15,844)	$	(17,970)

Reconciliation of Income Tax Provision to Total Income Taxes at Statutory Federal Tax Rate

A reconciliation of the Company’s 2023, 2022, and 2021 income tax provision to total income taxes at the statutory federal tax rate is as follows (in thousands):


	2023		2022		2021
Federal income taxes, at statutory tax rate	$	23,754	$	25,543	$	20,270
State income taxes, net of federal benefit		5,498		5,954		5,954
Nondeductible expenses		589		928		645
Other, net		2		(9)		(253)
Income tax provision	$	29,843	$	32,416	$	26,616

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2023

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PC Connection, Inc. is a Fortune 1000 Global Solutions Provider that simplifies the information technology, or IT, customer experience, guiding the connection between people and technology. The Company’s dedicated account managers partner with customers to design, deploy, and support cutting-edge IT environments using the latest hardware, software, and services. The Company provides a wide range of IT solutions, from the desktop to the cloud—including computer systems, data center solutions, software and peripheral equipment, networking communications, and other products and accessories that the Company purchases from manufacturers, distributors, and other suppliers. In 2023, the Company restructured and combined its Technology Solutions Group and Technical Sales Organization into one organization to be referred to as the Technology Solutions Organization, or TSO. The Company’s TSO and state-of-the-art Technology Integration and Distribution Center with ISO 9001:2015 certified technical configuration lab offer end-to-end services related to the design, configuration, and implementation of IT solutions. The Company also provides a comprehensive portfolio of managed services and professional services. These services are performed by the Company’s personnel and by third-party providers. The Company’s GlobalServe offering ensures worldwide coverage for the Company’s multinational customers, delivering global procurement solutions through the Company’s network of in-country suppliers in over 150 countries.

The Company operates through three operating segments:

●

Connection Enterprise Solutions – serving large enterprise customers

●

Connection Business Solutions – serving small to medium-sized businesses, or SMBs

●

Connection Public Sector Solutions – serving federal, state, and local government and educational institutions

The following is a summary of the Company’s significant accounting policies:

Principles of Consolidation

The consolidated financial statements include the accounts of PC Connection, Inc. and its subsidiaries, all of which are wholly-owned. Intercompany transactions and balances are eliminated in consolidation.

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 reported amounts and disclosures of assets and liabilities and the reported amounts and disclosures of revenue and expenses during the period. Management bases its estimates and judgments on the information available at the time and various other assumptions believed to be reasonable under the circumstances. By nature, estimates are subject to an inherent degree of uncertainty. Actual results could differ from those estimates and assumptions.

Revenue Recognition

Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company enters 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. The Company accounts 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. The Company generally obtains oral or written purchase authorizations from its 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. The Company generally invoices for its products at the time of shipping, and accordingly there is not a significant financing component included in its arrangements.

Cost of Sales and Certain Other Costs

Cost of sales includes the invoice cost of the product, direct employee and third-party cost of services, direct costs of packaging, inbound and outbound freight, and provisions for inventory obsolescence, adjusted for discounts, rebates, and other vendor allowances.

Cash and Cash Equivalents and Investments

The Company considers all highly liquid short-term investments with original maturities of 90 days or less to be cash equivalents. The carrying value of the Company’s cash equivalents approximates fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The majority of payments due from credit card processors and banks for third-party credit card and debit card transactions process within one to five business days. All credit card and debit card transactions that process in less than seven days are classified as cash and cash equivalents. Amounts due from banks for credit card transactions classified as cash equivalents totaled $3,839 and $6,862 at December 31, 2023 and 2022, respectively.

At the time of purchase, the Company determines the appropriate classification of investments based upon its intent with regard to such investments. All of the Company’s investments are classified as available-for-sale. The Company classifies investments as short-term when their remaining contractual maturities are one year or less from the balance sheet date, and as long-term when the investment has a remaining contractual maturity of more than one year from the balance sheet date. The Company records investments at fair value with unrealized gains and losses recorded as a component of accumulated other comprehensive income on the consolidated balance sheets.

Included in other income, net on the consolidated statements of income is interest income on cash equivalents and short-term investments of $9,983 and $1,056 for the years ended December 31, 2023 and 2022, respectively. Interest income on cash equivalents and short-term investments was less than $1 for the year ended December 31, 2021.

Accounts Receivable

Accounts receivable are recorded at the invoice amount, net of allowances. Customers are evaluated for their credit worthiness at the time of contract inception and the Company performs ongoing credit evaluations of its customers and adjusts credit limits based on payment history and customer creditworthiness. 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. The Company determines the required allowance for expected credit losses using information such as its customer credit history and financial condition, industry and market segment information, credit reports, and economic trends and conditions. Allowances can be affected by changes in the industry, customer credit issues or customer bankruptcies or expectations of any such events in a future period when reasonable and supportable. Historical information is utilized beyond reasonable and supportable forecast periods. Amounts are charged against the allowance when it is determined that expected credit losses may occur. The Company assesses collectability by reviewing account receivable on an aggregated basis where similar characteristics exist and on an individual basis when the Company identifies specific customers with collectability issues, and if necessary, records a reserve against those receivables it determines may not be collectable. Trade receivables are written off in the period in which they are deemed uncollectible. Recoveries of trade receivables previously charged are recorded when received.

Inventories

Inventories (all finished goods) are stated at cost (which approximates the first-in, first-out method) or net realizable value, whichever is lower. Inventory quantities on hand are reviewed regularly, and allowances are maintained for obsolete, slow moving, and nonsalable inventory.

Advertising Costs and Vendor Consideration

Vendors have the ability to fund advertising activities for which the Company receives advertising consideration. This vendor consideration, to the extent that it represents specific reimbursements of incremental and identifiable costs, is offset against selling, general and administrative, or SG&A, expenses. Advertising consideration that cannot be associated with a specific program or that exceeds the fair value of advertising expense associated with that program is classified as an offset to cost of sales. The Company’s vendor partners generally consolidate their funding of advertising and other marketing programs, and accordingly, the Company classifies substantially all vendor consideration as a reduction of cost of sales rather than a reduction of advertising expense. Other advertising costs are expensed as incurred. Advertising expense, which is classified as a component of SG&A expenses on the consolidated statements of income, totaled $22,400, $20,155, and $15,827 for the years ended December 31, 2023, 2022, and 2021, respectively.

Property and Equipment

Property and equipment are stated at cost, net of accumulated depreciation and amortization. The estimated useful lives of the assets range from three to seven years. Computer software, including licenses and internally developed software, is capitalized and amortized over lives generally ranging from three to ten years. Depreciation is recorded using the straight-line method. Leasehold improvements and facilities under capital leases are amortized over the terms of the related leases or their useful lives, whichever is shorter, whereas for income tax reporting purposes, they are amortized over the applicable tax lives.

Costs incurred to develop internal-use software during the application development stage are recorded in property and equipment at cost. External direct costs of materials and services consumed in developing or obtaining internal-use computer software and payroll-related costs for employees developing internal-use computer software projects, to the extent of their time spent directly on the project and specific to application development, are capitalized.

When events or circumstances indicate a potential impairment, the Company evaluates the carrying value of property and equipment based upon current and anticipated undiscounted cash flows. The Company recognizes impairment when it is probable that such estimated future cash flows will be less than the asset carrying value. No property and equipment impairment was recognized for each of the years ended December 31, 2023, 2022 and 2021.

Leases

The Company enters into operating lease contracts, as assessed at contract inception, primarily for real estate and equipment. On the lease commencement date, the Company records operating lease liabilities based on the present value of the future lease payments. In determining the present value of future lease payments, the Company utilized estimated rates that it would have incurred to borrow, over a similar term, the funds necessary to purchase the respective leased asset with cash.

The Company elects to apply the short-team lease exception to any leases with contractual obligations of one year or less. These leases will not have right-of-use, or ROU, assets and associated lease liabilities on the balance sheet. Instead, rent will be recognized on a straight-line basis.

Goodwill and Other Intangible Assets

The Company’s intangible assets consist of (1) goodwill, which is not subject to amortization; (2) an internet domain name, which is an indefinite-lived intangible asset not subject to amortization; and (3) amortizing intangibles,

which consist of customer lists, trade names, and customer relationships, which are being amortized over their useful lives.

Note 4 describes the annual impairment methodology that the Company uses each year in calculating the recoverability of goodwill and non-amortizing intangibles. This same impairment test is performed at other times during the course of a year should an event occur or circumstance change that would more likely than not reduce the fair value of a reporting unit below its carrying amount.

Recoverability of amortizing intangible assets is assessed only when events have occurred that may give rise to impairment. When a potential impairment has been identified, forecasted undiscounted net cash flows of the operations to which the asset relates are compared to the current carrying value of the long-lived assets present in that operation. If such cash flows are less than such carrying amounts, long-lived assets including such intangibles, are written down to their respective fair values. No intangible assets impairment was recognized for each of the years ended December 31, 2023, 2022 and 2021.

Concentrations

Concentrations of credit risk with respect to trade account receivables are limited due to the large number of customers comprising the Company’s customer base. No single customer accounted for 10% or more of total net sales in 2023, 2022, and 2021.

Product purchases from Ingram Micro, Inc., TD Synnex Corporation, and Microsoft Corporation accounted for approximately 21%, 19%, and 11%, respectively, of the Company’s total product purchases in 2023. Product purchases from Ingram Micro, Inc., TD Synnex Corporation, and Dell Inc. accounted for approximately 23%, 22%, and 15%, respectively, of the Company’s total product purchases in 2022. Product purchases from Ingram Micro, Inc., TD Synnex Corporation, and Dell Inc. accounted for approximately 23%, 23%, and 12%, respectively, of the Company’s total product purchases in 2021. No other singular vendor supplied more than 10% of the Company’s total product purchases in 2023, 2022, and 2021. The Company believes that, while it may experience some short-term disruption if products from Ingram Micro, Inc., TD Synnex Corporation, Microsoft Corporation, Dell Inc., or any of these vendors become unavailable to it, alternative sources are available.

Products manufactured by Microsoft Corporation, HP Inc., and Dell Inc. represented approximately 15%, 13%, and 11%, respectively, of our total product purchases in 2023. Products manufactured by HP Inc., Dell Inc., Microsoft Corporation, and Lenovo represented approximately 14%, 13%, 12%, and 11% of our total product purchases in 2022. Products manufactured by HP Inc., Dell Inc., Microsoft Corporation, and Lenovo represented approximately 15%, 14%, 11%, and 10% of our total product purchases in 2021. No other singular product manufacturer produced more than 10% of our total product purchases in 2023, 2022, and 2021. In the event the Company experiences either a short-term or permanent disruption of supply of Microsoft Corporation, HP Inc., or Dell Inc. products, such disruption would likely have a material adverse effect on the Company’s results of operations and cash flows.

Restructuring and Other charges

The restructuring and other charges recorded for the year ended December 31, 2023 were primarily related to an involuntary reduction in our headquarter workforce 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 in the consolidated balance sheets as of December 31, 2023. The Company is currently evaluating additional restructuring activities for 2024 and beyond.

Costs incurred for restructuring and other chargers were as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Employee separations	$	2,416	$	—	$	—
Other charges		271		—		—
Total restructuring and other charges	$	2,687	$	—	$	—

Included in accrued expenses and other liabilities on the consolidated balance sheets as of December 31, 2023 was $324 related to unpaid employee separation benefits.

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 nonvested stock units and stock options outstanding, if dilutive.

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data):



	2023		2022		2021
Numerator:
Net income	$	83,271	$	89,219	$	69,906
Denominator:
Denominator for basic earnings per share		26,287		26,279		26,196
Dilutive effect of employee stock awards		142		164		168
Denominator for diluted earnings per share		26,429		26,443		26,364
Earnings per share:
Basic	$	3.17	$	3.40	$	2.67
Diluted	$	3.15	$	3.37	$	2.65

For the years ended December 31, 2023, 2022, and 2021, the Company did not exclude any outstanding nonvested stock units or stock options from the computation of diluted earnings per share because including them would have had an anti-dilutive effect.

Recently Issued Financial Accounting Standards

In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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, or 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 amendments are effective as of March 12, 2020 through December

31, 2022; however, ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 has extended the effective date through December 31, 2024. The Company adopted this standard for the fiscal year ended December 31, 2023. The adoption of this ASU along with the related expedients did not have an impact to the Company’s consolidated financial statements.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This guidance is intended to improve segment reporting disclosures on both an interim and annual basis, primarily through enhanced disclosures about significant segment expenses. This ASU is effective for the Company’s annual reporting periods beginning January 1, 2024, and for interim reporting periods beginning January 1, 2025, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statement disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This guidance is intended to improve the transparency of income tax disclosures through, among other things, enhancement of the disclosure requirements within the rate reconciliation, as well as increased income tax disaggregation disclosures. This ASU is effective for the Company’s annual reporting periods beginning January 1, 2025, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statement disclosures.

FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2023

Fair Value Measurements

Fair Value Measurements

3. FAIR VALUE MEASUREMENTS

Cash equivalents and short-term investments consist of the following (in thousands):


	December 31, 2023
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Cash equivalents:
Money market funds	$	129,123	$	—	$	—	$	129,123
Short-term investments:
U.S. Government treasury securities		152,129		103		—		152,232
Total	$	281,252	$	103	$	—	$	281,355

	December 31, 2022
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Cash equivalents:
Money market funds	$	96,386	$	—	$	—	$	96,386
Total	$	96,386	$	—	$	—	$	96,386

Investments with maturities of 90 days or less from the date of purchase are classified as cash equivalents; investments with maturities of greater than 90 days from the date of purchase but less than one year are generally classified as short-term investments; and investments with maturities of one year or greater from the date of purchase are generally classified as long-term investments. All short-term investments had stated maturity dates of less than one year. The Company has recorded the securities at fair value in its consolidated balance sheets and unrealized gains and losses are reported as a component of accumulated other comprehensive income. The amount of realized gains and losses reclassified into earnings and the related adjustments to deferred taxes are based on the specific identification of the securities sold or securities that reached maturity date.

Fair Value

The Company measures certain financial assets at fair value. Fair value is determined based upon the exit price that would be received to sell an asset in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques are classified based on a three-level hierarchy, as follows:

●

Level 1 inputs: Quoted prices for identical assets or liabilities in active markets;

●

Level 2 inputs: Observable inputs other than those described as Level 1; and

●

Level 3 inputs: Unobservable inputs that are supportable by little or no market activities and are based on significant assumptions and estimates.

As of December 31, 2023 and 2022, the fair value of the Company’s cash equivalents and short-term investments were all measured using level 1 inputs.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

REVENUE (Tables)

12 Months Ended

Dec. 31, 2023

Revenue

Schedule of disaggregation of revenue from contracts with customers

The following tables represent a disaggregation of revenue from arrangements with customers for the years ended December 31, 2023, 2022 and 2021, along with the segment for each category (in thousands).


	For the Year Ended December 31, 2023
	Enterprise Solutions		Business Solutions		Public Sector Solutions		Total
Notebooks/Mobility	$	391,667	$	352,116	$	207,887	$	951,670
Desktops		137,679		73,302		55,946		266,927
Software		124,478		157,715		47,321		329,514
Servers/Storage		65,034		90,697		45,564		201,295
Net/Com Products		112,069		121,717		62,488		296,274
Displays and Sound		106,419		92,219		60,244		258,882
Accessories		155,498		111,542		49,992		317,032
Other Hardware/Services		108,287		76,291		44,472		229,050
Total net sales	$	1,201,131	$	1,075,599	$	573,914	$	2,850,644


	For the Year Ended December 31, 2022
	Enterprise Solutions		Business Solutions		Public Sector Solutions		Total
Notebooks/Mobility	$	462,152	$	473,375	$	221,363	$	1,156,890
Desktops		165,509		88,127		56,804		310,440
Software		108,243		147,792		36,071		292,106
Servers/Storage		64,622		103,711		44,588		212,921
Net/Com Products		85,611		98,672		32,548		216,831
Displays and Sound		132,269		118,753		67,860		318,882
Accessories		202,452		133,017		58,413		393,882
Other Hardware/Services		103,504		81,863		37,677		223,044
Total net sales	$	1,324,362	$	1,245,310	$	555,324	$	3,124,996

	For the Year Ended December 31, 2021
	Enterprise Solutions		Business Solutions		Public Sector Solutions		Total
Notebooks/Mobility	$	428,868	$	426,022	$	241,146	$	1,096,036
Desktops		140,468		87,822		45,989		274,279
Software		119,423		120,104		39,611		279,138
Servers/Storage		66,027		92,922		37,081		196,030
Net/Com Products		86,454		81,681		34,336		202,471
Displays and Sound		125,610		99,474		59,153		284,237
Accessories		179,249		115,048		44,104		338,401
Other Hardware/Services		103,360		75,423		43,220		222,003
Total net sales	$	1,249,459	$	1,098,496	$	544,640	$	2,892,595

Schedule of changes in contract liability balances

The following table provides information about contract liabilities from arrangements with customers as of December 31, 2023 and December 31, 2022 (in thousands):


	December 31, 2023		December 31, 2022
Contract liabilities, which are included in "Accrued expenses and other liabilities"	$	4,206	$	4,266

Changes in the contract liability balances during the years ended December 31, 2023 and 2022 are as follows (in thousands):


	2023
Balance at December 31, 2022	$	4,266
Cash received in advance and not recognized as revenue		21,173
Amounts recognized as revenue as performance obligations satisfied		(21,233)
Balance at December 31, 2023	$	4,206

	2022
Balance at December 31, 2021	$	8,628
Cash received in advance and not recognized as revenue		20,626
Amounts recognized as revenue as performance obligations satisfied		(24,988)
Balance at December 31, 2022	$	4,266

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2023

Dividend declared

The following table summarizes the Company’s quarterly cash dividends declared during the year ended December 31, 2023 (in thousands, except per share data):


Dividend per Share		Declaration Date	Record Date	Payment Date	Total Dividend
$	0.08	February 9, 2023	February 21, 2023	March 10, 2023	$	2,107
$	0.08	May 4, 2023	May 16, 2023	June 2, 2023	$	2,099
$	0.08	August 2, 2023	August 15, 2023	September 1, 2023	$	2,101
$	0.08	October 31, 2023	November 14, 2023	December 1, 2023	$	2,103

Components of Share-Based Compensation Recorded as Expense

The following table summarizes the share-based compensation expenses included in the consolidated statements of income (in thousands):


	2023		2022		2021
Pre-tax expense for nonvested units	$	7,022	$	5,675	$	4,231
Tax benefit		(1,853)		(1,512)		(1,167)
Net effect on net income	$	5,169	$	4,163	$	3,064

Nonvested Stock Unit Activity


	Nonvested Stock Units
		Weighted-Average
		Grant Date
	Shares	Fair Value
Nonvested at January 1, 2023	535	$	42.44
Granted	107		62.50
Vested	(172)		41.93
Canceled	(20)		49.36
Nonvested at December 31, 2023	450		47.09

Stock Equivalent Units (SEUs)

Stock Equivalent Units


	2023		2022		2021
Units issued		—		—		—
Compensation expense	$	—	$	—	$	425

GOODWILL AND OTHER INTANGIBLE ASSETS - Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Goodwill
Goodwill, gross	$ 82,409	$ 82,409
Accumulated impairment losses	(8,807)	(8,807)
Net balance	73,602	73,602
Operating Segments \| Enterprise Solutions
Goodwill
Goodwill, gross	66,236	66,236
Net balance	66,236	66,236
Operating Segments \| Business Solutions
Goodwill
Goodwill, gross	8,539	8,539
Accumulated impairment losses	(1,173)	(1,173)
Net balance	7,366	7,366
Operating Segments \| Public Sector Segment
Goodwill
Goodwill, gross	7,634	7,634
Accumulated impairment losses	$ (7,634)	$ (7,634)

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482548/350-20-55-24

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1A
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1A

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-2

+ Details

BANK BORROWINGS

12 Months Ended

Dec. 31, 2023

Bank Borrowings

Bank Borrowings

9. BANK BORROWINGS

The Company has a $50,000 credit facility collateralized by its account receivables that expires March 31, 2025. This facility can be increased, at the Company’s option, to $80,000 for permitted acquisitions or other uses authorized by the lender on substantially the same terms. Amounts outstanding under this facility bear interest at the daily Bloomberg Short-Term Bank Yield Index, or BSBY Rate, plus a spread based on the Company’s funded debt ratio, or in the absence of BSBY Rate, the prime rate (8.50% at December 31, 2023). 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 Earnings Before Interest Expense, Taxes, Depreciation, Amortization, and Special Charges, or Adjusted EBITDA. The maximum allowable funded debt ratio under the agreement is 2.0 to 1.0. Decreases in the Company’s consolidated twelve months Adjusted EBITDA could limit its potential borrowing capacity under the credit facility. As of December 31, 2023, the Company was in compliance with the covenants of the credit facility.

Cash receipts are automatically applied against any outstanding borrowings. During the years ended December 31, 2023 and 2022, the Company borrowed incremental amounts that were each repaid in full. These borrowings for the years ended December 31, 2023 and 2022 totaled $88,198 and $36,463, respectively; however, at no time were the outstanding borrowings greater than the $50,000 limit under the credit facility. The Company had no outstanding borrowings under the credit facility as of December 31, 2023 or 2022, and accordingly, the entire $50,000 credit facility was available for borrowings on such date.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

FAIR VALUE MEASUREMENTS - Available-for-Sale Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	$ 281,252	$ 96,386
Unrealized Gains	103
Fair Value	$ 281,355	$ 96,386
Fair value hierarchy - Level 1	us-gaap:FairValueInputsLevel1Member	us-gaap:FairValueInputsLevel1Member
Money market funds \| Cash and cash equivalents
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	$ 129,123	$ 96,386
Fair Value	129,123	$ 96,386
U.S. Government treasury securities \| Short-term investments
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	152,129
Unrealized Gains	103
Fair Value	$ 152,232

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aa)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aaa)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

+ Details

INCOME TAXES - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax
State net operating loss carryforwards	$ 1,192
Operating loss carryforwards, state tax benefits net of federal taxes	941	$ 1,151
State net operating loss carryforward valuation allowance	868	1,064
State tax credit and state tax loss carryforwards, valuation allowance	1,789	1,064
New Hampshire Business Enterprise tax credits	$ 921
State tax credit carryforward period	10 years
State tax credit valuation allowance	$ 921
Net change in the valuation allowance related to utilization and expiration of tax carryforwards	725	(110)
Unrecognized income tax benefits, interest and penalties recognized	$ 0	$ 0	$ 0
State Jurisdiction
Income Tax
Tax years remain open to examination	2019 2020 2021 2022
Internal Revenue Service (IRS)
Income Tax
Tax years remain open to examination	2020 2021 2022
Expire in 2024
Income Tax
State net operating loss carryforwards	$ 2
Expire in 2025
Income Tax
State net operating loss carryforwards	30
Expire in 2026
Income Tax
State net operating loss carryforwards	63
Expire in 2027
Income Tax
State net operating loss carryforwards	9
Expire in 2028
Income Tax
State net operating loss carryforwards	5
Expire beyond 2028
Income Tax
State net operating loss carryforwards	909
New Hampshire Business Enterprise tax credits	921
No Expiration
Income Tax
State net operating loss carryforwards	$ 174
Carryforward Period 1
Income Tax
State net operating loss carryforward period	3 years
Carryforward Period 2
Income Tax
State net operating loss carryforward period	5 years
Carryforward Period 3
Income Tax
State net operating loss carryforward period	15 years
Carryforward Period 4
Income Tax
State net operating loss carryforward period	20 years

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Current Assets:
Cash and cash equivalents	$ 144,954	$ 122,930
Short-term investments	152,232
Accounts receivable, net	606,834	610,280
Inventories, net	124,179	208,682
Income taxes receivable	4,348
Prepaid expenses and other current assets	16,092	11,900
Total current assets	1,048,639	953,792
Property and equipment, net	56,658	59,171
Right-of-use assets	4,340	7,558
Goodwill	73,602	73,602
Intangible, net	3,428	4,648
Other assets	1,714	1,055
Total Assets	1,188,381	1,099,826
Current Liabilities:
Accounts payable	263,682	232,638
Accrued payroll	20,440	24,071
Accrued expenses and other liabilities	43,843	53,808
Total current liabilities	327,965	310,517
Deferred income taxes	15,844	17,970
Noncurrent operating lease liabilities	3,181	4,994
Other liabilities	624	170
Total Liabilities	347,614	333,651
Stockholders' Equity:
Common Stock, $.01 par value, 100,000 shares authorized, 29,262 and 29,123 issued, 26,360 and 26,350 outstanding at December 31, 2023 and 2022, respectively	293	291
Additional paid-in capital	130,878	125,784
Retained earnings	760,898	686,037
Accumulated other comprehensive income	81
Treasury stock at cost, 2,902 and 2,773 shares at December 31, 2023 and 2022, respectively	(51,383)	(45,937)
Total Stockholders' Equity	840,767	766,175
Total Liabilities and Stockholders' Equity	$ 1,188,381	$ 1,099,826

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2023

Stockholders' Equity and Share-Based Compensation

Stockholders' Equity and Share-Based Compensation

10. STOCKHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION

Preferred Stock

The Company’s Amended and Restated Certificate of Incorporation (the “Restated Certificate”) authorizes the issuance of up to 10,000 shares of preferred stock, $0.01 par value per share (the “Preferred Stock”). Under the terms of the Restated Certificate, the Board is authorized, subject to any limitations prescribed by law, without stockholder approval, to issue by a unanimous vote such shares of Preferred Stock in one or more series. Each such series of Preferred Stock shall have such rights, preferences, privileges, and restrictions, including voting rights, dividend rights, redemption privileges, and liquidation preferences, as shall be determined by the Board. There were no preferred shares outstanding as of December 31, 2023 or 2022.

Share Repurchase Authorization

As of December 31, 2017, there was $30,000 authorized for share repurchase. In 2018, the Company’s Board approved a share repurchase program authorizing up to $25,000 in additional share repurchases. In November 2022, the Company’s Board approved a $25,000 increase to the Company’s existing share repurchase authorization, bringing the aggregate size of the share repurchase program to $80,000 as of December 31, 2023. There is no fixed termination date for this repurchase program. Purchases may be made in open-market transactions, block transactions on or off an

exchange, or in privately negotiated transactions. The timing and amount of any share repurchases will be based on market conditions and other factors.

The Company repurchased 129 shares for $5,446 during the year ended December 31, 2023 under the Board-authorized repurchase program. Such cost reflects the applicable one percent excise tax imposed by the Inflation Reduction Act of 2022 on the net value of certain stock repurchases made after December 31, 2022. There were no share repurchases during the years ended December 31, 2022 and 2021. As of December 31, 2023, the Company has repurchased an aggregate of 2,728 shares for $47,700 under the Board-authorized repurchase program, and the maximum approximate dollar value of shares that may yet be purchased under the Company’s existing Board-authorized program is $32,300.

Dividend Payments

The following table summarizes the Company’s quarterly cash dividends declared during the year ended December 31, 2023 (in thousands, except per share data):


Dividend per Share		Declaration Date	Record Date	Payment Date	Total Dividend
$	0.08	February 9, 2023	February 21, 2023	March 10, 2023	$	2,107
$	0.08	May 4, 2023	May 16, 2023	June 2, 2023	$	2,099
$	0.08	August 2, 2023	August 15, 2023	September 1, 2023	$	2,101
$	0.08	October 31, 2023	November 14, 2023	December 1, 2023	$	2,103

For the year ended December 31, 2022, the Company declared a special cash dividend of $0.34 per share. The total cash payment of $8,948 was made on December 23, 2022 to stockholders of record at the close of business on December 5, 2022. For the year ended December 31, 2021, the Company declared a special cash dividend of $1.00 per share. The total cash payment of $26,224 was made on December 3, 2021 to stockholders of record at the close of business on November 18, 2021.

Declaration of any future cash dividends will depend upon the Company’s financial position, strategic plans, and general business conditions.

Equity Compensation Plan Descriptions

In 2007, the Board adopted and the Company’s stockholders approved the 2007 Stock Incentive Plan. In 2010, the Board adopted and the stockholders approved the Amended and Restated 2007 Stock Incentive Plan (the “2007 Plan”), which, among other things, extended the term of the 2007 Plan to 2020. In May 2019, the Company’s stockholders approved an amendment to the 2007 Plan, which authorized the issuance of up to 1,900 shares of common stock. Under the terms of the 2007 Plan, the Company is authorized, for a ten-year period, to grant options, stock appreciation rights, nonvested stock, nonvested stock units, and other stock-based awards to employees, officers, directors, and consultants.

In 2020, the Board adopted and the Company’s stockholders approved the 2020 Stock Incentive Plan (the “2020 Plan”), which replaces the Amended and Restated 2007 Stock Incentive Plan. In May 2023, the Company’s stockholders approved an amendment to the 2020 Plan, which authorized the issuance of 1,253 shares of common stock. As of December 31, 2023, there were 283 shares eligible for future grants under the 2020 Plan.

1997 Employee Stock Purchase Plan

In November 1997, the Board adopted and the Company’s stockholders approved the 1997 Employee Stock Purchase Plan (the “Employee Stock Purchase Plan”). The Employee Stock Purchase Plan authorizes the issuance of common stock to participating employees. Under the Employee Stock Purchase Plan, as amended, employees are eligible to purchase Company stock at 95% of the purchase price as of the last business day of each six-month offering period. In May 2022, the Board adopted and the Company’s stockholders approved an amendment to the Employee Stock Purchase Plan, which reserved an aggregate of 1,303 shares of common stock for issuance under the Employee Stock Purchase Plan, of which 1,221 shares have been purchased as of December 31, 2023.

Accounting for Share-Based Compensation

The Company measures the grant date fair value of equity awards given to employees and recognizes that cost, adjusted for forfeitures, over the period that services are performed. The Company values grants with multiple vesting periods as a single award, estimates expected forfeitures based upon historical patterns of employee turnover, and records share-based compensation as a component of SG&A expenses.

The following table summarizes the share-based compensation expenses included in the consolidated statements of income (in thousands):


	2023		2022		2021
Pre-tax expense for nonvested units	$	7,022	$	5,675	$	4,231
Tax benefit		(1,853)		(1,512)		(1,167)
Net effect on net income	$	5,169	$	4,163	$	3,064

In 2023, 2022, and 2021, the Company issued nonvested stock units that settle in stock and vest over periods of up to four years. Recipients of nonvested stock units do not possess stockholder rights. The fair value of nonvested stock units is based on the end of day market value of the Company’s common stock on the grant date. The following table summarizes the Company’s nonvested stock unit activity in 2023 (shares in thousands):


	Nonvested Stock Units
		Weighted-Average
		Grant Date
	Shares	Fair Value
Nonvested at January 1, 2023	535	$	42.44
Granted	107		62.50
Vested	(172)		41.93
Canceled	(20)		49.36
Nonvested at December 31, 2023	450		47.09

The weighted-average grant-date fair value of nonvested stock units granted in 2023, 2022 and 2021 was $62.50, $53.50, and $46.02, respectively. The total fair value of nonvested stock units that vested in 2023, 2022, and 2021 was $9,700, $7,202, and $5,529, respectively. Unearned compensation cost related to the nonvested portion of outstanding nonvested stock units was $19,592 as of December 31, 2023, and is expected to be recognized over a weighted-average period of approximately 3.0 years. The aggregate intrinsic value of the nonvested stock units at December 31, 2023, which is calculated based on the positive difference between the fair value of the Company’s stock on December 31, 2023 and the grant price of the underlying awards, was $30,238.

Stock Equivalent Units

The Company has also previously issued stock equivalent units, or SEUs, which settle in cash and vest ratably over four years, to non-executive employees. The fair value of these liability awards is based on the closing market price of the Company’s common stock and is remeasured at the end of each reporting period until the SEUs vest. The Company reports the compensation as a component of SG&A expense on the consolidated statements of income and the related liability as accrued payroll on the consolidated balance sheets.


	2023		2022		2021
Units issued		—		—		—
Compensation expense	$	—	$	—	$	425

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Pay vs Performance Disclosure
Net Income (Loss)	$ 83,271	$ 89,219	$ 69,906

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2023

Summary of Significant Accounting Policies

Schedule of restructuring and other charges

Costs incurred for restructuring and other chargers were as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Employee separations	$	2,416	$	—	$	—
Other charges		271		—		—
Total restructuring and other charges	$	2,687	$	—	$	—

Computation of basic and diluted earnings per share

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data):



	2023		2022		2021
Numerator:
Net income	$	83,271	$	89,219	$	69,906
Denominator:
Denominator for basic earnings per share		26,287		26,279		26,196
Dilutive effect of employee stock awards		142		164		168
Denominator for diluted earnings per share		26,429		26,443		26,364
Earnings per share:
Basic	$	3.17	$	3.40	$	2.67
Diluted	$	3.15	$	3.37	$	2.65

CONDENSED CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME (Parenthetical) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($)
Consolidated Statements Of Other Comprehensive Income
Unrealized gains on available-for-sale investments, tax	$ (22)

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Dec. 31, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Consolidated Statements of Income
Net sales	$ 2,850,644	$ 3,124,996	$ 2,892,595
Cost of sales	2,338,908	2,598,819	2,428,016
Gross profit	511,736	526,177	464,579
Selling, general and administrative expenses	405,896	405,625	368,062
Restructuring and other charges	2,687
Income from operations	103,153	120,552	96,517
Other income, net	9,961	1,083	5
Income before taxes	113,114	121,635	96,522
Income tax provision	(29,843)	(32,416)	(26,616)
Net income	$ 83,271	$ 89,219	$ 69,906
Earnings per common share:
Basic	$ 3.17	$ 3.40	$ 2.67
Diluted	$ 3.15	$ 3.37	$ 2.65
Shares used in computation of earnings per common share:
Basic	26,287	26,279	26,196
Diluted	26,429	26,443	26,364

SEGMENT AND RELATED DISCLOSURES (Tables)

12 Months Ended

Dec. 31, 2023

Segment Information

Segment information applicable to reportable operating segments


	Years Ended December 31,
	2023		2022		2021
Net sales:
Enterprise Solutions	$	1,201,131	$	1,324,361	$	1,249,459
Business Solutions		1,075,599		1,245,311		1,098,496
Public Sector Solutions		573,914		555,324		544,640
Total net sales	$	2,850,644	$	3,124,996	$	2,892,595
Operating income (loss):
Enterprise Solutions	$	39,216	$	53,477	$	74,653
Business Solutions		76,150		79,475		43,783
Public Sector Solutions		2,177		1,105		(4,928)
Headquarters/Other		(14,390)		(13,505)		(16,991)
Total operating income		103,153		120,552		96,517
Other income, net		9,961		1,083		5
Income before taxes	$	113,114	$	121,635	$	96,522
Selected operating expense:
Depreciation and amortization:
Enterprise Solutions	$	1,452	$	1,992	$	2,408
Business Solutions		628		661		655
Public Sector Solutions		84		78		62
Headquarters/Other		10,490		9,247		9,077
Total depreciation and amortization	$	12,654	$	11,978	$	12,202
Total assets:
Enterprise Solutions	$	704,577	$	660,374
Business Solutions		502,739		445,698
Public Sector Solutions		79,384		84,939
Headquarters/Other		(98,319)		(91,185)
Total assets	$	1,188,381	$	1,099,826

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies

Commitments and Contingencies

13. COMMITMENTS AND CONTINGENCIES

Contingencies

The Company is subject to various legal proceedings and claims, which have arisen during the ordinary course of business. In the opinion of the Company’s management, the outcome of such matters is not expected to have a material effect on the Company’s business, financial position, results of operations, or cash flows.

The Company records a liability when it believes that a loss is both probable and reasonably estimable. On a quarterly basis, the Company reviews each of these legal proceedings to determine whether it is probable, reasonably possible, or remote that a liability has been incurred and, if it is at least reasonably possible, whether a range of loss can be reasonably estimated. Significant judgment is required to determine both the likelihood of there being a loss and the estimated amount of such loss. Until the final resolution of such matters, there may be an exposure to loss in excess of the amount recorded, and such amounts could be material. The Company expenses legal fees in the period in which they are incurred.

The Company is 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 the Company’s financial position, results of operations, and cash flows.

REVENUE

12 Months Ended

Dec. 31, 2023

Revenue

Revenue

2. REVENUE

Nature of Products and Services

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. The Company recognizes revenue as the principal in the transaction with the customer (i.e., on a gross basis), as it controls the product prior to delivery to the customer and derives the economic benefits from the sales transaction given the Company’s control over customer pricing.

The Company does not recognize revenue for goods that remain in its 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 the Company has 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. The Company is the principal in these transactions and recognizes 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. The Company does not have control over the delivery of these performance obligations, and accordingly the Company is the agent in these transactions. The Company recognizes revenue for security software net of the related costs of sales at the point in time when its 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. The Company does not exercise control over these products or services and therefore is an agent in these transactions. The Company recognizes revenue for cloud products net of the related costs of sales at the point in time when its 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 the Company sells these items separately. The Company recognizes revenue related to the software maintenance as the agent in these transactions because it does not have control over the on-going software maintenance service. Revenue allocated to software maintenance is recognized at the point in time when the Company’s vendor and customer accept the terms and conditions in the sales arrangements.

Certain of the Company’s larger customers are offered the opportunity by vendors to purchase software licenses and maintenance under enterprise agreements, or 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, the Company’s vendors will transfer the license and bill the customer directly, paying resellers, such as the Company, an agency fee or commission on these sales. The Company records these agency fees as a component of net sales as earned and there is no corresponding cost of sales amount. In certain instances, the Company invoices the customer directly under an EA and accounts for the individual items sold based on the nature of each item. The Company’s vendors typically dictate how the EA will be sold to the customer.

The Company also offers extended service plans, or ESPs, on IT products, both as part of the initial arrangement and separately from the IT products. The Company recognizes revenue related to ESPs as the agent in the transaction because it does not have control over the on-going ESPs service and does not provide any service after the sale. Revenue allocated to ESPs is recognized at the point in time when the Company’s vendor and customer accept the terms and conditions in the sales arrangement.

The Company uses its own engineering personnel to assist in projects involving the design and installation of systems and networks, and also engages third-party service providers to perform warranty maintenance, implementations, asset disposal, and other services. Service revenue is recognized in general over time as the Company performs the underlying services and satisfies its performance obligations. The Company evaluates such engagements to determine whether it is the principal or the agent in each transaction. For those transactions in which the Company does not control the service, the Company acts as an agent and recognizes 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

The Company’s contracts with customers often include promises to transfer multiple products or services to a customer. Determining whether the Company is 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.

The Company estimates the standalone selling price, or SSP, for each distinct performance obligation when a single arrangement contains multiple performance obligations and the fulfillment occurs at different points in time. The Company maximizes the use of observable inputs in the determination of the estimate for SSP for the items that it does not sell separately, including on-premise licenses sold with software maintenance, and IT products sold with ESPs. In instances where SSP is not directly observable, such as when the Company does not sell the product or service separately, the Company determines the SSP using information that may include market conditions and other observable inputs.

The Company provides its customers with a limited thirty-day right of return, which is generally limited to defective merchandise, and gives rise to variable consideration. Revenue is recognized based on the most likely amount to which it is expected to be entitled. The estimated variable consideration is included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur once the uncertainty is resolved. The Company makes estimates of product returns based on significant historical experience. The Company records its sales

return reserve as a reduction of revenues and either as reduction of accounts receivable or, for customers who have already paid, as accrued expenses and as a reduction of cost of sales and an associated right of return asset.

Description of 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.


	For the Year Ended December 31, 2023
	Enterprise Solutions		Business Solutions		Public Sector Solutions		Total
Notebooks/Mobility	$	391,667	$	352,116	$	207,887	$	951,670
Desktops		137,679		73,302		55,946		266,927
Software		124,478		157,715		47,321		329,514
Servers/Storage		65,034		90,697		45,564		201,295
Net/Com Products		112,069		121,717		62,488		296,274
Displays and Sound		106,419		92,219		60,244		258,882
Accessories		155,498		111,542		49,992		317,032
Other Hardware/Services		108,287		76,291		44,472		229,050
Total net sales	$	1,201,131	$	1,075,599	$	573,914	$	2,850,644


	For the Year Ended December 31, 2022
	Enterprise Solutions		Business Solutions		Public Sector Solutions		Total
Notebooks/Mobility	$	462,152	$	473,375	$	221,363	$	1,156,890
Desktops		165,509		88,127		56,804		310,440
Software		108,243		147,792		36,071		292,106
Servers/Storage		64,622		103,711		44,588		212,921
Net/Com Products		85,611		98,672		32,548		216,831
Displays and Sound		132,269		118,753		67,860		318,882
Accessories		202,452		133,017		58,413		393,882
Other Hardware/Services		103,504		81,863		37,677		223,044
Total net sales	$	1,324,362	$	1,245,310	$	555,324	$	3,124,996

	For the Year Ended December 31, 2021
	Enterprise Solutions		Business Solutions		Public Sector Solutions		Total
Notebooks/Mobility	$	428,868	$	426,022	$	241,146	$	1,096,036
Desktops		140,468		87,822		45,989		274,279
Software		119,423		120,104		39,611		279,138
Servers/Storage		66,027		92,922		37,081		196,030
Net/Com Products		86,454		81,681		34,336		202,471
Displays and Sound		125,610		99,474		59,153		284,237
Accessories		179,249		115,048		44,104		338,401
Other Hardware/Services		103,360		75,423		43,220		222,003
Total net sales	$	1,249,459	$	1,098,496	$	544,640	$	2,892,595

Contract Balances

The following table provides information about contract liabilities from arrangements with customers as of December 31, 2023 and December 31, 2022 (in thousands):


	December 31, 2023		December 31, 2022
Contract liabilities, which are included in "Accrued expenses and other liabilities"	$	4,206	$	4,266

Changes in the contract liability balances during the years ended December 31, 2023 and 2022 are as follows (in thousands):


	2023
Balance at December 31, 2022	$	4,266
Cash received in advance and not recognized as revenue		21,173
Amounts recognized as revenue as performance obligations satisfied		(21,233)
Balance at December 31, 2023	$	4,206

	2022
Balance at December 31, 2021	$	8,628
Cash received in advance and not recognized as revenue		20,626
Amounts recognized as revenue as performance obligations satisfied		(24,988)
Balance at December 31, 2022	$	4,266

- 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
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

SEGMENT INFORMATION - Concentration Risk (Details)	12 Months Ended
SEGMENT INFORMATION - Concentration Risk (Details)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Revenue Benchmark [Member] \| Geographic Concentration Risk \| Foreign \| Maximum
Segment Reporting Information
Percentage of sales by segment	2.00%	2.00%	2.00%

INCOME TAXES

12 Months Ended

Dec. 31, 2023

Income Taxes

Income Taxes

11. INCOME TAXES

The provision for income taxes consisted of the following (in thousands):


	Years Ended December 31,
	2023		2022		2021
Current:
Federal	$	24,648	$	25,483	$	18,450
State		7,343		8,200		7,413
Total current		31,991		33,683		25,863
Deferred:
Federal		(1,845)		(743)		655
State		(303)		(524)		98
Total deferred		(2,148)		(1,267)		753
Provision for income taxes	$	29,843	$	32,416	$	26,616

The components of the deferred taxes as of December 31, 2023 and 2022 are as follows (in thousands):


	2023		2022
Deferred tax assets:
Allowance for credit losses	$	965	$	1,349
Inventory costs capitalized for tax purposes		127		227
Inventory valuation reserves		342		57
Sales return reserves		116		140
Deductible expenses, primarily employee-benefit related		6		79
Accrued compensation		1,304		2,249
Operating lease liability		1,251		2,084
Other		956		632
Capitalized research and development		1,542		598
Stock-based compensation		1,937		1,281
State tax loss carryforwards		941		1,151
State tax credit carryforwards		921		—
Total gross deferred tax assets		10,408		9,847
Less: Valuation allowance		(1,789)		(1,064)
Net deferred tax assets		8,619		8,783

Deferred tax liabilities:
Goodwill and other intangibles		(14,227)		(13,990)
Property and equipment		(8,877)		(10,572)
Right-of-use assets		(1,106)		(1,930)
Prepaid expenses		(253)		(261)
Total gross deferred tax liabilities		(24,463)		(26,753)
Net deferred tax liability	$	(15,844)	$	(17,970)


Current deferred tax assets	$	—	$	—
Noncurrent deferred tax liability		(15,844)		(17,970)
Net deferred tax liability	$	(15,844)	$	(17,970)

The Company has deferred tax assets from state net operating loss carryforwards aggregating $1,192 as of December 31, 2023 representing state tax benefits, net of federal taxes, of approximately $941. These loss carryforwards are subject to three, five, fifteen, twenty-year, or indefinite carryforward periods, with $2 expiring in 2024, $30 expiring in 2025, $63 expiring in 2026, $9 expiring in 2027, $5 expiring in 2028, $909 expiring beyond 2028, and $174 with no

expiration. The Company has provided valuation allowances of $868 and $1,064 as of December 31, 2023 and 2022, respectively, against the state tax loss carryforwards, representing the portion of carryforward losses that the Company believes are not likely to be realized. The Company also has New Hampshire Business Enterprise credits of $921. These credits are subject to a ten-year carryforward period, with $921 expiring beyond 2028. The Company has provided a valuation allowance of $921 as of December 31, 2023 against the New Hampshire Business Enterprise credit carryforwards. The net change in the total valuation allowance reflects a $725 increase and a $110 decrease in 2023 and 2022, respectively.

A reconciliation of the Company’s 2023, 2022, and 2021 income tax provision to total income taxes at the statutory federal tax rate is as follows (in thousands):


	2023		2022		2021
Federal income taxes, at statutory tax rate	$	23,754	$	25,543	$	20,270
State income taxes, net of federal benefit		5,498		5,954		5,954
Nondeductible expenses		589		928		645
Other, net		2		(9)		(253)
Income tax provision	$	29,843	$	32,416	$	26,616

The Company files one consolidated U.S. Federal income tax return that includes all of its subsidiaries as well as several consolidated, combined, and separate Company returns in many U.S. state tax jurisdictions. The tax years 2019-2022 remain open to examination by the major state taxing jurisdictions in which the Company files. The tax years 2020-2022 remain open to examination by the Internal Revenue Service.

Previously, the Company recognized interest and penalties related to unrecognized income tax benefits as a component of income tax expense, and the corresponding accrual was included as a component of the Company’s liability for unrecognized income tax benefits. The Company did not recognize any interest and penalties for the years ended December 31, 2023, 2022 or 2021.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2023

Summary of Significant Accounting Policies

Principles of Consolidation

Use of Estimates in the Preparation of Financial Statements

Revenue Recognition

Cost of Sales and Certain Other Costs

Cash and Cash Equivalents and Investments

Accounts Receivable

Inventories

Advertising Costs and Vendor Consideration

Property and Equipment

Leases

Goodwill and Other Intangible Assets

which consist of customer lists, trade names, and customer relationships, which are being amortized over their useful lives.

Concentrations

Restructuring and other charges

Restructuring and Other charges

Costs incurred for restructuring and other chargers were as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Employee separations	$	2,416	$	—	$	—
Other charges		271		—		—
Total restructuring and other charges	$	2,687	$	—	$	—

Included in accrued expenses and other liabilities on the consolidated balance sheets as of December 31, 2023 was $324 related to unpaid employee separation benefits.

Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data):



	2023		2022		2021
Numerator:
Net income	$	83,271	$	89,219	$	69,906
Denominator:
Denominator for basic earnings per share		26,287		26,279		26,196
Dilutive effect of employee stock awards		142		164		168
Denominator for diluted earnings per share		26,429		26,443		26,364
Earnings per share:
Basic	$	3.17	$	3.40	$	2.67
Diluted	$	3.15	$	3.37	$	2.65

Recently Issued Financial Accounting Standards

ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Summary of Significant Accounting Policies
Trade	$ 556,542	$ 561,857
Vendor consideration, returns and other	57,110	57,388
Due from employees	$ 91	$ 108
Other Receivable, after Allowance for Credit Loss, Current, Related Party, Type	us-gaap:RelatedPartyMember	us-gaap:RelatedPartyMember
Other Receivable, after Allowance for Credit Loss, Current, Related Party, Name	cnxn:EmployeeMember	cnxn:EmployeeMember
Total gross accounts receivable	$ 613,743	$ 619,353
Sales returns	(3,121)	(3,806)
Credit losses	(3,788)	(5,267)
Accounts receivable, net	$ 606,834	$ 610,280

EMPLOYEE BENEFIT PLAN (Details) - USD ($) $ in Thousands	12 Months Ended
EMPLOYEE BENEFIT PLAN (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Compensation and Retirement
Employer matching contributions to employee savings	$ 6,873	$ 6,517	$ 5,951
Employer matching contributions to employee profit sharing plan	$ 0	$ 0	$ 0

ACCRUED EXPENSES AND OTHER LIABILITIES

12 Months Ended

Dec. 31, 2023

Accrued Expenses and Other Liabilities

Accrued Expenses and Other Liabilities

8. ACCRUED EXPENSES AND OTHER LIABILITIES

Accrued expenses and other liabilities consisted of the following (in thousands):


	December 31,
	2023		2022
Customer and vendor deposits	$	24,414	$	32,594
Sales tax		6,144		2,816
Short term lease liability		1,733		3,170
Other		11,552		15,228
Accrued expenses and other liabilities	$	43,843	$	53,808

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION - Stock Equivalent Units (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Stock Equivalent Units (SEUs)
Stockholders' equity and share-based compensation
Compensation expense	$ 425

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 1D
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480483/718-10-35-1D

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480483/718-10-35-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(3)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(ii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(01)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(02)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(03)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(04)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(ii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(iii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(iii)(01)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(iii)(02)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(iii)(03)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(ii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(iii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(iv)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(v)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

+ Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($) segment	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Number of operating segments \| segment	3
Amounts due from banks for credit card transactions, classified as cash equivalents	$ 3,839	$ 6,862
Impairment of property and equipment	0	0	$ 0
Impairment of intangible assets	$ 0	0	0
Minimum
Property and equipment, estimated useful lives	3 years
Maximum
Property and equipment, estimated useful lives	7 years
Computer software \| Minimum
Estimated useful lives	3 years
Computer software \| Maximum
Estimated useful lives	10 years
Selling, General and Administrative Expenses
Advertising expense	$ 22,400	20,155	15,827
Other income
Interest income on cash equivalents and short-term investments	$ 9,983	$ 1,056
Other income \| Maximum
Interest income on cash equivalents and short-term investments			$ 1

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION - Components of Share-Based Compensation Recorded as Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Stockholders' Equity and Share-Based Compensation
Pre-tax expense for nonvested units	$ 7,022	$ 5,675	$ 4,231
Tax benefit	(1,853)	(1,512)	(1,167)
Net effect on net income	$ 5,169	$ 4,163	$ 3,064

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 31, 2023

Schedule II - Valuation and Qualifying Accounts

Schedule II-Valuation And Qualifying Accounts

SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS

(amounts in thousands)


		Balance at	Charged to			Balance at
		Beginning	Costs and	Deductions/		End of
		of Period	Expenses	Write-Offs		Period
Description
Allowance for Sales Returns
Year Ended December 31, 2021	$	4,014	32,635	(32,431)	$	4,218
Year Ended December 31, 2022	$	4,218	35,161	(35,573)	$	3,806
Year Ended December 31, 2023	$	3,806	34,477	(35,162)	$	3,121

Allowance for Credit Losses
Year Ended December 31, 2021	$	5,408	3,307	(3,890)	$	4,825
Year Ended December 31, 2022	$	4,825	3,252	(2,810)	$	5,267
Year Ended December 31, 2023	$	5,267	1,847	(3,326)	$	3,788

CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares shares in Thousands	Dec. 31, 2023	Dec. 31, 2022
Consolidated Balance Sheets
Common Stock, par value	$ 0.01	$ 0.01
Common Stock, shares authorized	100,000	100,000
Common Stock, shares issued	29,262	29,123
Common Stock, shares outstanding	26,360	26,350
Treasury stock, shares	2,902	2,773

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2023	Feb. 15, 2024	Jun. 30, 2023
Document And Entity Information
Document Type	10-K
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2023
Entity File Number	000-23827
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, $0.01 par value
Trading Symbol	CNXN
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Document Financial Statement Error Correction	false
Entity Shell Company	false
Entity Public Float			$ 510
Entity Common Stock, Shares Outstanding		26,361,133
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Entity Central Index Key	0001050377
Amendment Flag	false
Auditor Name	Deloitte & Touche LLP
Auditor Firm ID	34
Auditor Location	Boston, Massachusetts

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Restructuring and Other Charges (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($)
Restructuring and other charges
Restructuring and other charges	$ 2,687
Employee separations
Restructuring and other charges
Restructuring and other charges	2,416
Employee separations \| Accrued expenses and other liabilities
Restructuring and other charges
Accrued employee termination benefits	324
Other charges
Restructuring and other charges
Restructuring and other charges	$ 271

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

ACCOUNTS RECEIVABLE

12 Months Ended

Dec. 31, 2023

Accounts Receivable

Accounts Receivable

5. ACCOUNTS RECEIVABLE

Accounts receivable consisted of the following (in thousands):


	December 31,
	2023		2022
Trade	$	556,542	$	561,857
Vendor consideration, returns and other		57,110		57,388
Due from employees		91		108
Total gross accounts receivable		613,743		619,353
Allowances for:
Sales returns		(3,121)		(3,806)
Credit losses		(3,788)		(5,267)
Accounts receivable, net	$	606,834	$	610,280

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	May 31, 2023	Nov. 30, 2022	May 31, 2022	May 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Stockholders' equity and share-based compensation
Preferred Stock, shares authorized	10,000	10,000
Preferred Stock, par value	$ 0.01	$ 0.01
Preferred Stock, shares outstanding	0	0
Repurchase of common stock, authorized amount					$ 25,000,000			$ 25,000,000	$ 30,000,000
Shares repurchased, value	$ 5,446
Aggregate shares repurchased	2,902	2,773
2007 Stock Incentive Plan
Stockholders' equity and share-based compensation
Term of approved stock-based compensation plan	10 years
2020 Stock Incentive Plan
Stockholders' equity and share-based compensation
Shares authorized for issuance under stock incentive plan				1,253
Shares available for future grant	283
1997 Employee Stock Purchase Plan
Stockholders' equity and share-based compensation
Purchase price under employee stock purchase plan as a percentage of price as of the last day of each six month offering period	95.00%
Common stock reserved for issuance						1,303
Share purchased under employee stock purchase plan	1,221
Nonvested Stock Units
Stockholders' equity and share-based compensation
Granted	107
Weighted-average grant-date fair values of nonvested stock awards granted	$ 62.50	$ 53.50	$ 46.02
Total fair values of nonvested stock awards that vested	$ 9,700	$ 7,202	$ 5,529
Unearned compensation cost	$ 19,592
Unrecognized compensation costs, weighted average period of recognition	3 years
Aggregate intrinsic value	$ 30,238
Stock Equivalent Units (SEUs)
Stockholders' equity and share-based compensation
Vesting period	4 years
Share repurchase program, aggregate
Stockholders' equity and share-based compensation
Repurchase of common stock, authorized amount	$ 80,000,000
Number of share repurchased	129	0	0
Shares repurchased, value	$ 5,446
Excise tax rate on certain stock repurchases	1.00%
Aggregate shares repurchased	2,728
Aggregate number of shares repurchased	$ 47,700
Maximum \| 2007 Stock Incentive Plan
Stockholders' equity and share-based compensation
Shares authorized for issuance under stock incentive plan							1,900
Maximum \| Nonvested Stock Units
Stockholders' equity and share-based compensation
Vesting period	4 years	4 years	4 years
Maximum \| Share repurchase program, aggregate
Stockholders' equity and share-based compensation
Approximate dollar value of shares that may yet be purchased	$ 32,300,000

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure

Carrying Amount of Goodwill

The carrying amount of goodwill for the periods presented is detailed below (in thousands):


Balance at December 31, 2023	Enterprise Solutions		Business Solutions		Public Sector Solutions		Total
Goodwill, gross	$	66,236	$	8,539	$	7,634	$	82,409
Accumulated impairment losses		─		(1,173)		(7,634)		(8,807)
Net balance	$	66,236	$	7,366	$	—	$	73,602

Balance at December 31, 2022	Enterprise Solutions		Business Solutions		Public Sector Solutions		Total
Goodwill, gross	$	66,236	$	8,539	$	7,634	$	82,409
Accumulated impairment losses		─		(1,173)		(7,634)		(8,807)
Net balance	$	66,236	$	7,366	$	—	$	73,602

Intangible Assets and Related Accumulated Amortization


		December 31, 2023						December 31, 2022
	Estimated	Gross		Accumulated		Net		Gross		Accumulated		Net
	Useful Lives	Amount		Amortization		Amount		Amount		Amortization		Amount
Customer list	8	$	3,400	$	3,400	$	—	$	3,400	$	3,400	$	—
Tradename	5		1,190		1,190		—		1,190		1,190		—
Customer relationships	10		12,200		9,222		2,978		12,200		8,002		4,198
Total intangible assets		$	16,790	$	13,812	$	2,978	$	16,790	$	12,592	$	4,198

Estimated Amortization Expense


For the Years Ended December 31,
2024	$	1,220
2025		1,220
2026		538
2027		—
2028 and thereafter		—
	$	2,978

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482548/350-20-55-24

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1A
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1A

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-2

+ Details

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income	Treasury Shares	Total
Balance at Dec. 31, 2020	$ 289	$ 119,891	$ 562,084		$ (45,937)	$ 636,327
Balance (in shares) at Dec. 31, 2020	28,943
Balance - Treasury Shares (in shares) at Dec. 31, 2020					(2,773)
Stock-based compensation expense		4,231				4,231
Restricted stock units vested	$ 1	(1)
Restricted stock units vested (in shares)	82
Shares withheld for taxes paid on stock awards		(1,767)				(1,767)
Dividend declaration			(26,224)			(26,224)
Net Income (Loss)			69,906			69,906
Balance at Dec. 31, 2021	$ 290	122,354	605,766		$ (45,937)	682,473
Balance (in shares) at Dec. 31, 2021	29,025
Balance - Treasury Shares (in shares) at Dec. 31, 2021					(2,773)
Stock-based compensation expense		5,675				5,675
Restricted stock units vested	$ 1	(1)
Restricted stock units vested (in shares)	98
Shares withheld for taxes paid on stock awards		(2,244)				(2,244)
Dividend declaration			(8,948)			(8,948)
Net Income (Loss)			89,219			89,219
Balance at Dec. 31, 2022	$ 291	125,784	686,037		$ (45,937)	$ 766,175
Balance (in shares) at Dec. 31, 2022	29,123					29,123
Balance - Treasury Shares (in shares) at Dec. 31, 2022					(2,773)	(2,773)
Issuance of common stock under Employee Stock Purchase Plan		1,089				$ 1,089
Issuance of common stock under Employee Stock Purchase Plan (in shares)	21
Stock-based compensation expense		7,022				7,022
Restricted stock units vested	$ 2	(2)
Restricted stock units vested (in shares)	118
Shares withheld for taxes paid on stock awards		(3,015)				(3,015)
Repurchase of common stock for treasury					$ (5,446)	(5,446)
Repurchase of common stock for treasury (in shares)					(129)
Dividend declaration			(8,410)			(8,410)
Net Income (Loss)			83,271			83,271
Other comprehensive income, net of tax				$ 81		81
Balance at Dec. 31, 2023	$ 293	$ 130,878	$ 760,898	$ 81	$ (51,383)	$ 840,767
Balance (in shares) at Dec. 31, 2023	29,262					29,262
Balance - Treasury Shares (in shares) at Dec. 31, 2023					(2,902)	(2,902)

GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure

Goodwill and Other Intangible Assets

4. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

Goodwill is held by the Company’s Enterprise Solutions and Business Solutions segments. Goodwill and intangible assets with indefinite lives are subject to an annual impairment test as of November 30 and tested more frequently if events or circumstances occur that would indicate a potential decline in fair value.

In 2023 and 2022, the Company performed a qualitative “step 0” analysis. Accounting Standards Codification 350—Intangible – Goodwill and Other states that an entity may assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. This analysis allows the Company to consider qualitative factors that might impact the carrying amount of its goodwill to determine whether a more detailed quantitative analysis would be necessary. Factors considered when performing the impairment assessment included the Company’s performance relative to historical and projected future operating results, macroeconomic conditions, industry and market trends, cost factors that may have a negative impact on earnings and cash flows, changes in the Company’s stock price and market capitalization, and other relevant entity-specific events.

Based on the above qualitative analysis, the Company determined goodwill was not impaired as of December 31, 2023 and 2022.

The carrying amount of goodwill for the periods presented is detailed below (in thousands):


Balance at December 31, 2023	Enterprise Solutions		Business Solutions		Public Sector Solutions		Total
Goodwill, gross	$	66,236	$	8,539	$	7,634	$	82,409
Accumulated impairment losses		─		(1,173)		(7,634)		(8,807)
Net balance	$	66,236	$	7,366	$	—	$	73,602

Balance at December 31, 2022	Enterprise Solutions		Business Solutions		Public Sector Solutions		Total
Goodwill, gross	$	66,236	$	8,539	$	7,634	$	82,409
Accumulated impairment losses		─		(1,173)		(7,634)		(8,807)
Net balance	$	66,236	$	7,366	$	—	$	73,602

Intangible Assets

At December 31, 2023, the Company’s intangible assets included a domain name for $450, which has an indefinite life and is not subject to amortization. In addition, in 2016 the Company acquired customer relationships from its Softmart and GlobalServe acquisitions, which are amortized on a straight-line basis over their estimated useful lives of 10 years. The Company’s remaining intangible assets are amortized in proportion to the estimates of the future cash flows underlying the valuation of the assets. Intangible assets and related accumulated amortization are detailed below (in thousands):


		December 31, 2023						December 31, 2022
	Estimated	Gross		Accumulated		Net		Gross		Accumulated		Net
	Useful Lives	Amount		Amortization		Amount		Amount		Amortization		Amount
Customer list	8	$	3,400	$	3,400	$	—	$	3,400	$	3,400	$	—
Tradename	5		1,190		1,190		—		1,190		1,190		—
Customer relationships	10		12,200		9,222		2,978		12,200		8,002		4,198
Total intangible assets		$	16,790	$	13,812	$	2,978	$	16,790	$	12,592	$	4,198

In 2023, 2022, and 2021, the Company recorded amortization expense of $1,220, $1,220, and $1,220, respectively. The estimated amortization expense relating to intangible assets in each of the five succeeding years and thereafter is as follows (in thousands):


For the Years Ended December 31,
2024	$	1,220
2025		1,220
2026		538
2027		—
2028 and thereafter		—
	$	2,978

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2023

Fair Value Measurements

Schedule of cash equivalents and short-term investments

Cash equivalents and short-term investments consist of the following (in thousands):


	December 31, 2023
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Cash equivalents:
Money market funds	$	129,123	$	—	$	—	$	129,123
Short-term investments:
U.S. Government treasury securities		152,129		103		—		152,232
Total	$	281,252	$	103	$	—	$	281,355

	December 31, 2022
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Cash equivalents:
Money market funds	$	96,386	$	—	$	—	$	96,386
Total	$	96,386	$	—	$	—	$	96,386

SEGMENT AND RELATED DISCLOSURES - Segment Information Applicable to Reportable Operating Segments (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($) segment	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Segment Reporting Information
Number of reportable segments \| segment	3
Number of operating segments \| segment	3
Net sales:
Net sales	$ 2,850,644	$ 3,124,996	$ 2,892,595
Operating income (loss):
Operating income (loss)	103,153	120,552	96,517
Other expenses, net	9,961	1,083	5
Income before taxes	113,114	121,635	96,522
Depreciation and amortization:
Depreciation and amortization	12,654	11,978	12,202
Total assets:
Total assets	1,188,381	1,099,826
Goodwill	73,602	73,602
Enterprise Solutions
Net sales:
Net sales	1,201,131	1,324,362	1,249,459
Business Solutions
Net sales:
Net sales	1,075,599	1,245,310	1,098,496
Public Sector Solutions
Net sales:
Net sales	573,914	555,324	544,640
Operating Segments \| Enterprise Solutions
Net sales:
Net sales	1,201,131	1,324,361	1,249,459
Operating income (loss):
Operating income (loss)	39,216	53,477	74,653
Depreciation and amortization:
Depreciation and amortization	1,452	1,992	2,408
Total assets:
Total assets	704,577	660,374
Goodwill	66,236	66,236
Operating Segments \| Business Solutions
Net sales:
Net sales	1,075,599	1,245,311	1,098,496
Operating income (loss):
Operating income (loss)	76,150	79,475	43,783
Depreciation and amortization:
Depreciation and amortization	628	661	655
Total assets:
Total assets	502,739	445,698
Goodwill	7,366	7,366
Operating Segments \| Public Sector Solutions
Net sales:
Net sales	573,914	555,324	544,640
Operating income (loss):
Operating income (loss)	2,177	1,105	(4,928)
Depreciation and amortization:
Depreciation and amortization	84	78	62
Total assets:
Total assets	79,384	84,939
Headquarters/Other
Operating income (loss):
Operating income (loss)	(14,390)	(13,505)	(16,991)
Depreciation and amortization:
Depreciation and amortization	10,490	9,247	$ 9,077
Total assets:
Assets net of intercompany balance eliminations	(98,319)	(91,185)
Intersegment Elimination
Total assets:
Total assets	$ (35,522)	$ (43,679)

PROPERTY AND EQUIPMENT - Summary (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Property and Equipment
Computer software, including licenses and internally-developed software	$ 93,373	$ 87,645
Furniture and equipment	36,916	39,316
Leasehold improvements	8,463	8,964
Total	138,752	135,925
Accumulated depreciation and amortization	(82,094)	(76,754)
Property and equipment, net	$ 56,658	$ 59,171

ACCOUNTS RECEIVABLE (Tables)

12 Months Ended

Dec. 31, 2023

Accounts Receivable

Accounts Receivable

Accounts receivable consisted of the following (in thousands):


	December 31,
	2023		2022
Trade	$	556,542	$	561,857
Vendor consideration, returns and other		57,110		57,388
Due from employees		91		108
Total gross accounts receivable		613,743		619,353
Allowances for:
Sales returns		(3,121)		(3,806)
Credit losses		(3,788)		(5,267)
Accounts receivable, net	$	606,834	$	610,280

EMPLOYEE BENEFIT PLAN

12 Months Ended

Dec. 31, 2023

Employee Benefit Plan

Employee Benefit Plan

12. EMPLOYEE BENEFIT PLAN

The Company has a contributory profit-sharing and employee savings plan covering all qualified employees. No contributions to the profit-sharing element of the plan were made by the Company in 2023, 2022, and 2021. The Company made matching contributions to the employee savings element of such plan of $6,873, $6,517, and $5,951 in 2023, 2022, and 2021, respectively.

PROPERTY AND EQUIPMENT - Depreciation and Amortization Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Property and Equipment
Depreciation and amortization	$ 11,434	$ 10,758	$ 10,982

LEASES - Future Lease Payments (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Future lease payments over the remaining term of capitalized operating leases
2024	$ 1,886
2025	1,813
2026	1,120
2027	237
2028	161
Total	5,217
Imputed interest	(303)
Lease liability balance	4,914
Right-of-use assets	4,340	$ 7,558
Long-term lease liability	3,181	4,994
Short-term lease liability	$ 1,733	$ 3,170
Short-term lease liability, Statement of Financial Position	Accrued expenses and other liabilities	Accrued expenses and other liabilities
Related Parties
Future lease payments over the remaining term of capitalized operating leases
2024	$ 1,312
2025	163
2026	163
2027	1
Total	1,639
Others
Future lease payments over the remaining term of capitalized operating leases
2024	574
2025	1,650
2026	957
2027	236
2028	161
Total	$ 3,578

PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2023

Property and Equipment

Property and Equipment

Property and equipment consisted of the following (in thousands):


	December 31,
	2023		2022
Computer software, including licenses and internally-developed software	$	93,373	$	87,645
Furniture and equipment		36,916		39,316
Leasehold improvements		8,463		8,964
Total		138,752		135,925
Accumulated depreciation and amortization		(82,094)		(76,754)
Property and equipment, net	$	56,658	$	59,171

REVENUE - Contract Balances (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Change in contract liability
Beginning balance - Contract liability	$ 4,266	$ 8,628
Cash received in advance and not recognized as revenue	21,173	20,626
Amounts recognized as revenue as performance obligations satisfied	(21,233)	(24,988)
Ending balance - Contract liability	4,206	4,266
Accrued expenses and other liabilities
Contract liabilities
Contract liabilities	$ 4,206	$ 4,266

LEASES (Tables)

12 Months Ended

Dec. 31, 2023

Leases

Schedule of lease cost


	Year Ended December 31, 2023
	Related Parties		Others		Total
Lease Cost
Capitalized operating lease cost	$	1,149	$	2,235	$	3,384
Short-term lease cost		532		459		991
Total lease cost	$	1,681	$	2,694	$	4,375

Other Information
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$	1,149	$	2,266	$	3,415

Weighted-average remaining lease term (in years):
Capitalized operating leases		—		2.92		2.92

Weighted-average discount rate:
Capitalized operating leases		3.92%		4.08%		4.04%

	Year Ended December 31, 2022
	Related Parties		Others		Total
Lease Cost
Capitalized operating lease cost	$	1,253	$	2,821	$	4,074
Short-term lease cost		428		121		549
Total lease cost	$	1,681	$	2,942	$	4,623

Other Information
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$	1,253	$	2,846	$	4,099

Weighted-average remaining lease term (in years):
Capitalized operating leases		0.92		4.03		3.60

Weighted-average discount rate:
Capitalized operating leases		3.92%		4.05%		4.03%

Schedule of future lease payments on capitalized operating leases

As of December 31, 2023, future lease payments over the remaining term of capitalized operating leases were as follows (in thousands):


For the Years Ended December 31,		Related Parties		Others		Total
2024	$	1,312	$	574	$	1,886
2025		163		1,650		1,813
2026		163		957		1,120
2027		1		236		237
2028		—		161		161
Thereafter		—		—		—
	$	1,639	$	3,578	$	5,217

Imputed interest						(303)
Lease liability balance at December 31, 2023					$	4,914

LEASES - Lease Cost and Other Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($) lease	Dec. 31, 2022 USD ($)
Leases
Right-of-use assets	$ 4,340	$ 7,558
Lease liability	$ 4,914
Number of financing leases \| lease	0
Number of additional operating or financing leases not yet commenced \| lease	0
Lease Cost
Capitalized operating lease cost	$ 3,384	4,074
Short-term lease cost	991	549
Total lease cost	4,375	4,623
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$ 3,415	$ 4,099
Weighted-average remaining lease term - Capitalized operating leases (in years)	2 years 11 months 1 day	3 years 7 months 6 days
Weighted-average discount rate - Capitalized operating leases	4.04%	4.03%
Related Parties
Lease Cost
Capitalized operating lease cost	$ 1,149	$ 1,253
Short-term lease cost	532	428
Total lease cost	1,681	1,681
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$ 1,149	$ 1,253
Weighted-average remaining lease term - Capitalized operating leases (in years)		11 months 1 day
Weighted-average discount rate - Capitalized operating leases	3.92%	3.92%
Others
Lease Cost
Capitalized operating lease cost	$ 2,235	$ 2,821
Short-term lease cost	459	121
Total lease cost	2,694	2,942
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$ 2,266	$ 2,846
Weighted-average remaining lease term - Capitalized operating leases (in years)	2 years 11 months 1 day	4 years 10 days
Weighted-average discount rate - Capitalized operating leases	4.08%	4.05%

REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disaggregation of revenue
Net sales	$ 2,850,644	$ 3,124,996	$ 2,892,595
Notebooks/Mobility
Disaggregation of revenue
Net sales	951,670	1,156,890	1,096,036
Desktops
Disaggregation of revenue
Net sales	266,927	310,440	274,279
Software
Disaggregation of revenue
Net sales	329,514	292,106	279,138
Servers/Storage
Disaggregation of revenue
Net sales	201,295	212,921	196,030
Net/Com Products
Disaggregation of revenue
Net sales	296,274	216,831	202,471
Displays and Sound
Disaggregation of revenue
Net sales	258,882	318,882	284,237
Accessories
Disaggregation of revenue
Net sales	317,032	393,882	338,401
Other Hardware/Services
Disaggregation of revenue
Net sales	229,050	223,044	222,003
Enterprise Solutions
Disaggregation of revenue
Net sales	1,201,131	1,324,362	1,249,459
Enterprise Solutions \| Notebooks/Mobility
Disaggregation of revenue
Net sales	391,667	462,152	428,868
Enterprise Solutions \| Desktops
Disaggregation of revenue
Net sales	137,679	165,509	140,468
Enterprise Solutions \| Software
Disaggregation of revenue
Net sales	124,478	108,243	119,423
Enterprise Solutions \| Servers/Storage
Disaggregation of revenue
Net sales	65,034	64,622	66,027
Enterprise Solutions \| Net/Com Products
Disaggregation of revenue
Net sales	112,069	85,611	86,454
Enterprise Solutions \| Displays and Sound
Disaggregation of revenue
Net sales	106,419	132,269	125,610
Enterprise Solutions \| Accessories
Disaggregation of revenue
Net sales	155,498	202,452	179,249
Enterprise Solutions \| Other Hardware/Services
Disaggregation of revenue
Net sales	108,287	103,504	103,360
Business Solutions
Disaggregation of revenue
Net sales	1,075,599	1,245,310	1,098,496
Business Solutions \| Notebooks/Mobility
Disaggregation of revenue
Net sales	352,116	473,375	426,022
Business Solutions \| Desktops
Disaggregation of revenue
Net sales	73,302	88,127	87,822
Business Solutions \| Software
Disaggregation of revenue
Net sales	157,715	147,792	120,104
Business Solutions \| Servers/Storage
Disaggregation of revenue
Net sales	90,697	103,711	92,922
Business Solutions \| Net/Com Products
Disaggregation of revenue
Net sales	121,717	98,672	81,681
Business Solutions \| Displays and Sound
Disaggregation of revenue
Net sales	92,219	118,753	99,474
Business Solutions \| Accessories
Disaggregation of revenue
Net sales	111,542	133,017	115,048
Business Solutions \| Other Hardware/Services
Disaggregation of revenue
Net sales	76,291	81,863	75,423
Public Sector Solutions
Disaggregation of revenue
Net sales	573,914	555,324	544,640
Public Sector Solutions \| Notebooks/Mobility
Disaggregation of revenue
Net sales	207,887	221,363	241,146
Public Sector Solutions \| Desktops
Disaggregation of revenue
Net sales	55,946	56,804	45,989
Public Sector Solutions \| Software
Disaggregation of revenue
Net sales	47,321	36,071	39,611
Public Sector Solutions \| Servers/Storage
Disaggregation of revenue
Net sales	45,564	44,588	37,081
Public Sector Solutions \| Net/Com Products
Disaggregation of revenue
Net sales	62,488	32,548	34,336
Public Sector Solutions \| Displays and Sound
Disaggregation of revenue
Net sales	60,244	67,860	59,153
Public Sector Solutions \| Accessories
Disaggregation of revenue
Net sales	49,992	58,413	44,104
Public Sector Solutions \| Other Hardware/Services
Disaggregation of revenue
Net sales	$ 44,472	$ 37,677	$ 43,220

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Valuation and Qualifying Accounts
Beginning Balance	$ 3,806
Ending Balance	3,121	$ 3,806
Allowance for Sales Returns
Valuation and Qualifying Accounts
Beginning Balance	3,806	4,218	$ 4,014
Charged to Costs and Expenses	34,477	35,161	32,635
Deductions/Write-Offs	(35,162)	(35,573)	(32,431)
Ending Balance	3,121	3,806	4,218
Allowance for Credit Losses
Valuation and Qualifying Accounts
Beginning Balance	5,267	4,825	5,408
Charged to Costs and Expenses	1,847	3,252	3,307
Deductions/Write-Offs	(3,326)	(2,810)	(3,890)
Ending Balance	$ 3,788	$ 5,267	$ 4,825