0001558370-24-006387 | 10-Q | XBRL Viewer

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Condensed Consolidated Statements of Income
Net sales	$ 632,025,000	$ 727,545,000
Cost of sales	513,953,000	605,249,000
Gross profit	118,072,000	122,296,000
Selling, general and administrative expenses	104,608,000	103,282,000
Restructuring and other charges	0	897,000
Income from operations	13,464,000	18,117,000
Interest income, net	4,567,000	1,286,000
Income before taxes	18,031,000	19,403,000
Income tax provision	(4,877,000)	(5,205,000)
Net income	$ 13,154,000	$ 14,198,000
Earnings per common share:
Basic	$ 0.50	$ 0.54
Diluted	$ 0.50	$ 0.54
Shares used in computation of earnings per common share:
Basic	26,362	26,325
Diluted	26,525	26,436

SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2024

Segment Information

Segment and Related Disclosures

Note 6–Segment Information

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 segments—the Enterprise Solutions segment, which serves primarily medium-to-large corporations; the Business Solutions segment, which serves primarily small- to medium-sized businesses; 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, information technology, or 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 three months ended March 31, 2024 and 2023 is shown below (in thousands):


	Three Months Ended
	March 31,		March 31,
	2024		2023
Net sales:
Enterprise Solutions	$	282,659	$	313,943
Business Solutions		255,869		273,114
Public Sector Solutions		93,497		140,488
Total net sales	$	632,025	$	727,545
Operating income (loss):
Enterprise Solutions	$	5,847	$	6,522
Business Solutions		15,789		16,553
Public Sector Solutions		(5,350)		29
Headquarters/Other		(2,822)		(4,987)
Total operating income		13,464		18,117
Interest income, net		4,567		1,286
Income before taxes	$	18,031	$	19,403
Selected operating expense:
Depreciation and amortization:
Enterprise Solutions	$	205	$	424
Business Solutions		163		159
Public Sector Solutions		23		19
Headquarters/Other		2,875		2,471
Total depreciation and amortization	$	3,266	$	3,073
Total assets:
Enterprise Solutions	$	701,826	$	661,670
Business Solutions		514,019		467,444
Public Sector Solutions		54,563		104,880
Headquarters/Other		(109,343)		(115,937)
Total assets	$	1,161,065	$	1,118,057

The assets of the Company’s three operating segments presented above consist primarily of accounts receivable, net intercompany receivable, goodwill, and other intangibles. Assets reported under the Headquarters/Other group are managed by corporate headquarters, including cash and cash equivalents, short-term investments, inventories, property and equipment, ROU assets, and intercompany balance, net. As of March 31, 2024 and 2023, total assets for the Headquarters/Other group were presented net of intercompany balance eliminations of $15,039 and $60,176, respectively. The Company’s capital expenditures consist largely of IT hardware and software purchased to maintain or upgrade its management information systems. These information systems serve all of the Company’s segments, to varying degrees, and accordingly, the CODM does not evaluate capital expenditures on a segment-by-segment basis.

- Definition

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

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+ Details

BASIS OF PRESENTATION (Tables)

3 Months Ended

Mar. 31, 2024

Basis of Presentation

Schedule of restructuring and other charges

Restructuring and other charges are presented separately from selling, general and administrative expenses. Costs incurred were as follows (in thousands):


	Three Months Ended March 31,
	2024		2023
Employee separations	$	—	$	698
Other charges		—		199
Total restructuring and other charges	$	—	$	897

REVENUE - Contract Balances (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Change in contract liability
Beginning balance - Contract liability	$ 4,206	$ 4,266
Cash received in advance and not recognized as revenue	5,795	7,656
Amounts recognized as revenue as performance obligations satisfied	(1,548)	(4,388)
Ending balance - Contract liability	8,453	$ 7,534
Accrued expenses and other liabilities
Contract liabilities
Contract liabilities	$ 8,453		$ 4,206

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Accumulated Other Comprehensive Income (Loss)
Balance at beginning of period	$ 81
Other comprehensive income (loss) before reclassifications, net of tax	(135)
Less amounts reclassified from accumulated other comprehensive income (loss), net of tax	8
Net other comprehensive income (loss)	(143)
Balance at end of period	$ (62)

- Definition

Amount, after tax, of accumulated increase (decrease) in equity from transaction and other event and circumstance from nonowner source.

+ References + Details

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

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+ Details

LEASES - Future Lease Payments (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Future lease payments over the remaining term of capitalized operating leases
2024, excluding the three months ended March 31, 2024	$ 1,534
2025	1,813
2026	1,120
2027	237
2028	161
Total	4,865
Imputed interest	(256)
Lease liability balance	4,609
Right-of-use assets	4,020	$ 4,340
Long-term lease liability	2,760	3,181
Short-term lease liability	$ 1,849	$ 1,733
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, excluding the three months ended March 31, 2024	$ 1,133
2025	163
2026	163
2027	1
Total	1,460
Others
Future lease payments over the remaining term of capitalized operating leases
2024, excluding the three months ended March 31, 2024	401
2025	1,650
2026	957
2027	236
2028	161
Total	$ 3,405

BASIS OF PRESENTATION (Policies)

3 Months Ended

Mar. 31, 2024

Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of PC Connection, Inc. and its subsidiaries, or the Company, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, or SEC, regarding interim financial reporting and in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP. Such principles were applied on a basis consistent with the accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the results of operations for the interim periods reported and of the Company’s financial condition as of the date of the interim balance sheet. The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated through the date of issuance of these financial statements. The operating results for the three months ended March 31, 2024 may not be indicative of the results expected for any succeeding quarter or the entire year ending December 31, 2024.

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with U.S. GAAP 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.

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.

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 (loss) income on the condensed consolidated balance sheets.

Included in interest income, net on the condensed consolidated statements of income is interest income on cash equivalents and short-term investments of $4,565 and $1,308 for the three months ended March 31, 2024 and 2023, respectively.

Treasury Stock, at Cost

The total repurchases for the three months ended March 31, 2024 were recorded as treasury stock of $188. 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. The total repurchases for the three months ended March 31, 2023 were recorded as treasury stock of $3,423.

Restructuring and other charges

Restructuring and Other Charges

There were no restructuring and other charges recorded for the three months ended March 31, 2024. The restructuring and other charges recorded for the three months ended March 31, 2023 were primarily related to an involuntary reduction in our headquarter workforce and included cash severance and other related termination benefits. The Company is currently evaluating additional restructuring activities for the second quarter of 2024 and beyond.

Restructuring and other charges are presented separately from selling, general and administrative expenses. Costs incurred were as follows (in thousands):


	Three Months Ended March 31,
	2024		2023
Employee separations	$	—	$	698
Other charges		—		199
Total restructuring and other charges	$	—	$	897

Included in accrued expenses and other liabilities on the condensed consolidated balance sheets as of March 31, 2024 was $210 related to unpaid termination benefits.

Recently Issued Financial Accounting Standards

In November 2023, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or 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.

CONDENSED CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Condensed Consolidated Statements Of Other Comprehensive Income
Net Income (Loss)	$ 13,154	$ 14,198
Other comprehensive loss:
Unrealized losses on available-for-sale investments, net of tax of $38	(143)
Comprehensive income	$ 13,011	$ 14,198

- Definition

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

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+ Details

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

3 Months Ended

Mar. 31, 2024

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

Note 7–Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss), which is included as a component of stockholders’ equity, is comprised of unrealized gains (losses) on short-term investments, net of tax. The changes in accumulated other comprehensive income (loss) were as follows (in thousands):


	Three Months Ended
	March 31, 2024
Balance - December 31, 2023	$	81
Other comprehensive income (loss) before reclassifications, net of tax		(135)
Less amounts reclassified from accumulated other comprehensive income (loss), net of tax		8
Net other comprehensive income (loss)		(143)
Balance - March 31, 2024	$	(62)

	Three Months Ended
	March 31, 2023
Balance - December 31, 2022	$	—
Other comprehensive income (loss) before reclassifications, net of tax		—
Less amounts reclassified from accumulated other comprehensive income (loss), net of tax		—
Net other comprehensive income (loss)		—
Balance - March 31, 2023	$	—

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024
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

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Condensed Consolidated Statement of Changes in Stockholders' Equity
Dividend declaration	$ 0.10	$ 0.08

EARNINGS PER SHARE (Tables)

3 Months Ended

Mar. 31, 2024

Earnings Per Share

Computation of basic and diluted earnings per share

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


	Three Months Ended March 31,
	2024		2023
Numerator:
Net income	$	13,154	$	14,198
Denominator:
Denominator for basic earnings per share		26,362		26,325
Dilutive effect of employee stock awards		163		111
Denominator for diluted earnings per share		26,525		26,436
Earnings per share:
Basic	$	0.50	$	0.54
Diluted	$	0.50	$	0.54

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Numerator:
Net Income (Loss)	$ 13,154	$ 14,198
Denominator:
Denominator for basic earnings per share	26,362,000	26,325,000
Dilutive effect of unvested employee stock awards	163,000	111,000
Denominator for diluted earnings per share	26,525,000	26,436,000
Earnings per share:
Basic	$ 0.50	$ 0.54
Diluted	$ 0.50	$ 0.54
Additional Disclosure
Employee stock awards excluded from computation of diluted earnings per share	0	0

REVENUE (Tables)

3 Months Ended

Mar. 31, 2024

Revenue

Schedule of disaggregation of revenue from contracts with customers

The following tables represent a disaggregation of revenue from arrangements with customers for the three months ended March 31, 2024 and 2023, along with the segment for each category (in thousands).


	Three Months Ended March 31, 2024
	Enterprise Solutions		Business Solutions		Public Sector Solutions		Total
Notebooks/Mobility	$	90,231	$	92,156	$	38,882	$	221,269
Desktops		38,037		18,118		8,747		64,902
Software		27,120		30,652		5,550		63,322
Servers/Storage		12,367		21,611		8,506		42,484
Net/Com Products		19,962		21,845		5,605		47,412
Displays and Sound		31,264		21,752		10,603		63,619
Accessories		41,532		30,373		7,596		79,501
Other Hardware/Services		22,146		19,362		8,008		49,516
Total net sales	$	282,659	$	255,869	$	93,497	$	632,025


	Three Months Ended March 31, 2023
	Enterprise Solutions		Business Solutions		Public Sector Solutions		Total
Notebooks/Mobility	$	114,318	$	94,919	$	51,774	$	261,011
Desktops		30,142		18,762		14,417		63,321
Software		39,234		34,576		9,917		83,727
Servers/Storage		12,507		24,291		9,987		46,785
Net/Com Products		20,532		28,304		13,320		62,156
Displays and Sound		26,720		22,813		13,202		62,735
Accessories		47,594		28,735		13,473		89,802
Other Hardware/Services		22,896		20,714		14,398		58,008
Total net sales	$	313,943	$	273,114	$	140,488	$	727,545

Schedule of changes in contract liability balances

The following table provides information about contract liabilities from arrangements with customers as of March 31, 2024 and December 31, 2023 (in thousands).


	March 31, 2024		December 31, 2023
Contract liabilities, which are included in "Accrued expenses and other liabilities"	$	8,453	$	4,206

Changes in the contract liability balances during the three months ended March 31, 2024 and 2023 are as follows (in thousands):


	2024
Balance at December 31, 2023	$	4,206
Cash received in advance and not recognized as revenue		5,795
Amounts recognized as revenue as performance obligations satisfied		(1,548)
Balance at March 31, 2024	$	8,453

	2023
Balance at December 31, 2022	$	4,266
Cash received in advance and not recognized as revenue		7,656
Amounts recognized as revenue as performance obligations satisfied		(4,388)
Balance at March 31, 2023	$	7,534

BASIS OF PRESENTATION

3 Months Ended

Mar. 31, 2024

Basis of Presentation

Basis of Presentation

Note 1– Basis of Presentation

Use of Estimates in the Preparation of Financial Statements

Cash and Cash Equivalents and Investments

Treasury Stock, at Cost

stock repurchases made after December 31, 2022. The total repurchases for the three months ended March 31, 2023 were recorded as treasury stock of $3,423.

Restructuring and Other Charges

Restructuring and other charges are presented separately from selling, general and administrative expenses. Costs incurred were as follows (in thousands):


	Three Months Ended March 31,
	2024		2023
Employee separations	$	—	$	698
Other charges		—		199
Total restructuring and other charges	$	—	$	897

Included in accrued expenses and other liabilities on the condensed consolidated balance sheets as of March 31, 2024 was $210 related to unpaid termination benefits.

Recently Issued Financial Accounting Standards

COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies

Commitments and Contingencies

Note 8–Commitments and Contingencies

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

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, but such outcomes are not expected to have a material, adverse impact on the Company’s financial position, results of operations, and/or cash flows.

LEASES (Tables)

3 Months Ended

Mar. 31, 2024

Leases

Schedule of lease cost

As of March 31, 2024, there were no additional operating leases that have not yet commenced. Refer to the following table for quantitative information related to the Company’s leases for the three months ended March 31, 2024 and 2023 (dollars in thousands):


	Three Months Ended March 31, 2024						Three Months Ended March 31, 2023
	Related Parties		Others		Total		Related Parties		Others		Total
Lease Cost
Capitalized operating lease cost	$	—	$	459	$	459	$	313	$	709	$	1,022
Short-term lease cost		420		141		561		107		21		128
Total lease cost	$	420	$	600	$	1,020	$	420	$	730	$	1,150

Other Information
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$	—	$	445	$	445	$	313	$	643	$	956

Weighted-average remaining lease term (in years):
Capitalized operating leases		—		2.67		2.67		0.67		3.81		3.45

Weighted-average discount rate:
Capitalized operating leases		3.92%		4.12%		4.07%		3.92%		4.06%		4.04%

Schedule of future lease payments on capitalized operating leases

As of March 31, 2024, 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, excluding the three months ended March 31, 2024	$	1,133	$	401	$	1,534
2025		163		1,650		1,813
2026		163		957		1,120
2027		1		236		237
2028		—		161		161
Thereafter		—		—		—
	$	1,460	$	3,405	$	4,865

Imputed interest						(256)
Lease liability balance at March 31, 2024					$	4,609

EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2024

Earnings Per Share

Earnings Per Share

Note 4–Earnings Per Share

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

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


	Three Months Ended March 31,
	2024		2023
Numerator:
Net income	$	13,154	$	14,198
Denominator:
Denominator for basic earnings per share		26,362		26,325
Dilutive effect of employee stock awards		163		111
Denominator for diluted earnings per share		26,525		26,436
Earnings per share:
Basic	$	0.50	$	0.54
Diluted	$	0.50	$	0.54

For the three months ended March 31, 2024 and 2023, the Company had no outstanding non-vested stock units that were excluded from the computation of diluted earnings per share because including them would have had an anti-dilutive effect.

FAIR VALUE MEASUREMENTS - Available-for-Sale Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	$ 328,448	$ 281,252
Unrealized Gains		103
Unrealized Losses	(78)
Fair Value	$ 328,370	$ 281,355
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	$ 123,996	$ 129,123
Fair Value	123,996	129,123
U.S. Government treasury securities \| Short-term investments
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	204,452	152,129
Unrealized Gains		103
Unrealized Losses	(78)
Fair Value	$ 204,374	$ 152,232

SEGMENT INFORMATION (Tables)

3 Months Ended

Mar. 31, 2024

Segment Information

Segment information applicable to reportable operating segments


	Three Months Ended
	March 31,		March 31,
	2024		2023
Net sales:
Enterprise Solutions	$	282,659	$	313,943
Business Solutions		255,869		273,114
Public Sector Solutions		93,497		140,488
Total net sales	$	632,025	$	727,545
Operating income (loss):
Enterprise Solutions	$	5,847	$	6,522
Business Solutions		15,789		16,553
Public Sector Solutions		(5,350)		29
Headquarters/Other		(2,822)		(4,987)
Total operating income		13,464		18,117
Interest income, net		4,567		1,286
Income before taxes	$	18,031	$	19,403
Selected operating expense:
Depreciation and amortization:
Enterprise Solutions	$	205	$	424
Business Solutions		163		159
Public Sector Solutions		23		19
Headquarters/Other		2,875		2,471
Total depreciation and amortization	$	3,266	$	3,073
Total assets:
Enterprise Solutions	$	701,826	$	661,670
Business Solutions		514,019		467,444
Public Sector Solutions		54,563		104,880
Headquarters/Other		(109,343)		(115,937)
Total assets	$	1,161,065	$	1,118,057

FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Measurements

Schedule of available-for-sale investments within cash equivalents and short-term investments

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


	March 31, 2024
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Cash equivalents:
Money market funds	$	123,996	$	—	$	—	$	123,996
Short-term investments:
U.S. Government treasury securities		204,452		—		(78)		204,374
Total	$	328,448	$	—	$	(78)	$	328,370

	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

LEASES

3 Months Ended

Mar. 31, 2024

Leases

Leases

Note 5–Leases

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


	Three Months Ended March 31, 2024						Three Months Ended March 31, 2023
	Related Parties		Others		Total		Related Parties		Others		Total
Lease Cost
Capitalized operating lease cost	$	—	$	459	$	459	$	313	$	709	$	1,022
Short-term lease cost		420		141		561		107		21		128
Total lease cost	$	420	$	600	$	1,020	$	420	$	730	$	1,150

Other Information
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$	—	$	445	$	445	$	313	$	643	$	956

Weighted-average remaining lease term (in years):
Capitalized operating leases		—		2.67		2.67		0.67		3.81		3.45

Weighted-average discount rate:
Capitalized operating leases		3.92%		4.12%		4.07%		3.92%		4.06%		4.04%

As of March 31, 2024, 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, excluding the three months ended March 31, 2024	$	1,133	$	401	$	1,534
2025		163		1,650		1,813
2026		163		957		1,120
2027		1		236		237
2028		—		161		161
Thereafter		—		—		—
	$	1,460	$	3,405	$	4,865

Imputed interest						(256)
Lease liability balance at March 31, 2024					$	4,609

As of March 31, 2024, the right-of-use, or ROU, asset had a balance of $4,020. The long-term lease liability was $2,760 and the short-term lease liability, which is included in accrued expenses and other liabilities on the condensed consolidated balance sheets, was $1,849. 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 on the condensed consolidated balance sheets, was $1,733.

SEGMENT INFORMATION - Segment Information Applicable to Reportable Operating Segments (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) segment	Mar. 31, 2023 USD ($) segment	Dec. 31, 2023 USD ($)
Segment Reporting Information
Number of reportable segments \| segment	3	3
Number of operating segments \| segment	3	3
Net sales:
Net sales	$ 632,025	$ 727,545
Operating income (loss):
Operating income (loss)	13,464	18,117
Interest income, net	4,567	1,286
Income before taxes	18,031	19,403
Depreciation and amortization:
Depreciation and amortization	3,266	3,073
Total assets:
Total assets	1,161,065	1,118,057	$ 1,188,381
Enterprise Solutions
Net sales:
Net sales	282,659	313,943
Business Solutions
Net sales:
Net sales	255,869	273,114
Public Sector Solutions
Net sales:
Net sales	93,497	140,488
Operating Segments \| Enterprise Solutions
Net sales:
Net sales	282,659	313,943
Operating income (loss):
Operating income (loss)	5,847	6,522
Depreciation and amortization:
Depreciation and amortization	205	424
Total assets:
Total assets	701,826	661,670
Operating Segments \| Business Solutions
Net sales:
Net sales	255,869	273,114
Operating income (loss):
Operating income (loss)	15,789	16,553
Depreciation and amortization:
Depreciation and amortization	163	159
Total assets:
Total assets	514,019	467,444
Operating Segments \| Public Sector Solutions
Net sales:
Net sales	93,497	140,488
Operating income (loss):
Operating income (loss)	(5,350)	29
Depreciation and amortization:
Depreciation and amortization	23	19
Total assets:
Total assets	54,563	104,880
Headquarters/Other
Operating income (loss):
Operating income (loss)	(2,822)	(4,987)
Depreciation and amortization:
Depreciation and amortization	2,875	2,471
Total assets:
Assets net of intercompany balance eliminations	(109,343)	(115,937)
Intersegment Elimination
Total assets:
Total assets	$ (15,039)	$ (60,176)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash Flows provided by Operating Activities:
Net income	$ 13,154	$ 14,198
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,266	3,073
Adjustments to credit losses reserve	269	(99)
Stock-based compensation expense	1,949	1,853
Amortization of discount on short-term investments	(2,324)
Loss on disposal of fixed assets	21	474
Changes in assets and liabilities:
Accounts receivable	79,306	(11,465)
Inventories	279	9,365
Prepaid expenses, income tax receivable, and other current assets	196	(6,245)
Other non-current assets	280	42
Accounts payable	(45,127)	5,859
Accrued expenses and other liabilities	6,016	2,450
Net cash provided by operating activities	57,285	19,505
Cash Flows used in Investing Activities:
Purchases of short-term investments	(99,999)
Maturities of short-term investments	50,000
Purchases of property and equipment	(1,608)	(1,882)
Net cash used in investing activities	(51,607)	(1,882)
Cash Flows used in Financing Activities:
Proceeds from short-term borrowings	8,349	59,310
Repayment of short-term borrowings	(8,349)	(59,310)
Purchase of common stock for treasury shares	(186)	(3,423)
Dividend payments	(2,636)	(2,107)
Payments of payroll taxes on stock-based compensation through shares withheld	(231)	(213)
Net cash used in financing activities	(3,053)	(5,743)
Increase in cash and cash equivalents	2,625	11,880
Cash and cash equivalents, beginning of year	144,954	122,930
Cash and cash equivalents, end of period	147,579	134,810
Non-cash Investing and Financing Activities:
Accrued purchases of property and equipment	336	753
Accrued excise tax on treasury purchases	2
Supplemental Cash Flow Information:
Income taxes paid	635	7,279
Interest paid	$ 1	$ 17

FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 31, 2024

Fair Value Measurements

Fair Value Measurements

Note 3–Fair Value Measurements

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


	March 31, 2024
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Cash equivalents:
Money market funds	$	123,996	$	—	$	—	$	123,996
Short-term investments:
U.S. Government treasury securities		204,452		—		(78)		204,374
Total	$	328,448	$	—	$	(78)	$	328,370

	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

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 on its condensed 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 supported by little or no market activities and are based on significant assumptions and estimates.

As of March 31, 2024 and December 31, 2023, the fair value of the Company’s 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

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive (Loss) Income	Treasury Shares	Total
Balance at Dec. 31, 2022	$ 291	$ 125,784	$ 686,037		$ (45,937)	$ 766,175
Balance (in shares) at Dec. 31, 2022	29,123
Balance - Treasury Shares (in shares) at Dec. 31, 2022					(2,773)
Stock-based compensation expense		1,853				1,853
Restricted stock units vested (in shares)	10
Shares withheld for taxes paid on stock awards		(213)				(213)
Repurchase of common stock for treasury					$ (3,423)	(3,423)
Repurchase of common stock for treasury (in shares)					(79)
Dividend declaration			(2,107)			(2,107)
Net Income (Loss)			14,198			14,198
Balance at Mar. 31, 2023	$ 291	127,424	698,128		$ (49,360)	776,483
Balance (in shares) at Mar. 31, 2023	29,133
Balance - Treasury Shares (in shares) at Mar. 31, 2023					(2,852)
Balance at Dec. 31, 2023	$ 293	130,878	760,898	$ 81	$ (51,383)	840,767
Balance (in shares) at Dec. 31, 2023	29,262
Balance - Treasury Shares (in shares) at Dec. 31, 2023					(2,902)
Stock-based compensation expense		1,949				1,949
Restricted stock units vested (in shares)	9
Shares withheld for taxes paid on stock awards		(231)				(231)
Repurchase of common stock for treasury					$ (188)	(188)
Repurchase of common stock for treasury (in shares)					(3)
Dividend declaration			(2,636)			(2,636)
Net Income (Loss)			13,154			13,154
Other comprehensive income, net of tax				(143)		(143)
Balance at Mar. 31, 2024	$ 293	$ 132,596	$ 771,416	$ (62)	$ (51,571)	$ 852,672
Balance (in shares) at Mar. 31, 2024	29,271
Balance - Treasury Shares (in shares) at Mar. 31, 2024					(2,905)

BASIS OF PRESENTATION - Restructuring and Other Charges (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Restructuring and other charges
Restructuring and other charges	$ 0	$ 897,000
Accrued employee termination benefits	210,000
Treasury stock
Common stock repurchases as treasury stock including excise tax	$ 188,000	3,423,000
Excise tax rate on certain stock repurchases	1.00%
Cash and cash equivalents and investments
Interest income on cash equivalents and short-term investments	$ 4,565,000	1,308,000
Employee separations
Restructuring and other charges
Restructuring and other charges		698,000
Other charges
Restructuring and other charges
Restructuring and other charges		$ 199,000

REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of revenue
Net sales	$ 632,025	$ 727,545
Notebooks/Mobility
Disaggregation of revenue
Net sales	221,269	261,011
Desktops
Disaggregation of revenue
Net sales	64,902	63,321
Software
Disaggregation of revenue
Net sales	63,322	83,727
Servers/Storage
Disaggregation of revenue
Net sales	42,484	46,785
Net/Com Products
Disaggregation of revenue
Net sales	47,412	62,156
Displays and Sound
Disaggregation of revenue
Net sales	63,619	62,735
Accessories
Disaggregation of revenue
Net sales	79,501	89,802
Other Hardware/Services
Disaggregation of revenue
Net sales	49,516	58,008
Enterprise Solutions
Disaggregation of revenue
Net sales	282,659	313,943
Enterprise Solutions \| Notebooks/Mobility
Disaggregation of revenue
Net sales	90,231	114,318
Enterprise Solutions \| Desktops
Disaggregation of revenue
Net sales	38,037	30,142
Enterprise Solutions \| Software
Disaggregation of revenue
Net sales	27,120	39,234
Enterprise Solutions \| Servers/Storage
Disaggregation of revenue
Net sales	12,367	12,507
Enterprise Solutions \| Net/Com Products
Disaggregation of revenue
Net sales	19,962	20,532
Enterprise Solutions \| Displays and Sound
Disaggregation of revenue
Net sales	31,264	26,720
Enterprise Solutions \| Accessories
Disaggregation of revenue
Net sales	41,532	47,594
Enterprise Solutions \| Other Hardware/Services
Disaggregation of revenue
Net sales	22,146	22,896
Business Solutions
Disaggregation of revenue
Net sales	255,869	273,114
Business Solutions \| Notebooks/Mobility
Disaggregation of revenue
Net sales	92,156	94,919
Business Solutions \| Desktops
Disaggregation of revenue
Net sales	18,118	18,762
Business Solutions \| Software
Disaggregation of revenue
Net sales	30,652	34,576
Business Solutions \| Servers/Storage
Disaggregation of revenue
Net sales	21,611	24,291
Business Solutions \| Net/Com Products
Disaggregation of revenue
Net sales	21,845	28,304
Business Solutions \| Displays and Sound
Disaggregation of revenue
Net sales	21,752	22,813
Business Solutions \| Accessories
Disaggregation of revenue
Net sales	30,373	28,735
Business Solutions \| Other Hardware/Services
Disaggregation of revenue
Net sales	19,362	20,714
Public Sector Solutions
Disaggregation of revenue
Net sales	93,497	140,488
Public Sector Solutions \| Notebooks/Mobility
Disaggregation of revenue
Net sales	38,882	51,774
Public Sector Solutions \| Desktops
Disaggregation of revenue
Net sales	8,747	14,417
Public Sector Solutions \| Software
Disaggregation of revenue
Net sales	5,550	9,917
Public Sector Solutions \| Servers/Storage
Disaggregation of revenue
Net sales	8,506	9,987
Public Sector Solutions \| Net/Com Products
Disaggregation of revenue
Net sales	5,605	13,320
Public Sector Solutions \| Displays and Sound
Disaggregation of revenue
Net sales	10,603	13,202
Public Sector Solutions \| Accessories
Disaggregation of revenue
Net sales	7,596	13,473
Public Sector Solutions \| Other Hardware/Services
Disaggregation of revenue
Net sales	$ 8,008	$ 14,398

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 13,154	$ 14,198

- Definition

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

+ References

+ Details

CONDENSED CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME (Parenthetical) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Condensed Consolidated Statements Of Other Comprehensive Income
Unrealized losses on available-for-sale investments, tax	$ 38

LEASES - Lease Cost and Other Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) lease	Mar. 31, 2023 USD ($)
Leases
Number of additional operating or financing leases not yet commenced \| lease	0
Lease Cost
Capitalized operating lease cost	$ 459	$ 1,022
Short-term lease cost	561	128
Total lease cost	1,020	1,150
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$ 445	$ 956
Weighted-average remaining lease term - Capitalized operating leases (in years)	2 years 8 months 1 day	3 years 5 months 12 days
Weighted-average discount rate - Capitalized operating leases	4.07%	4.04%
Related Parties
Lease Cost
Capitalized operating lease cost		$ 313
Short-term lease cost	$ 420	107
Total lease cost	$ 420	420
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows		$ 313
Weighted-average remaining lease term - Capitalized operating leases (in years)		8 months 1 day
Weighted-average discount rate - Capitalized operating leases	3.92%	3.92%
Others
Lease Cost
Capitalized operating lease cost	$ 459	$ 709
Short-term lease cost	141	21
Total lease cost	600	730
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$ 445	$ 643
Weighted-average remaining lease term - Capitalized operating leases (in years)	2 years 8 months 1 day	3 years 9 months 21 days
Weighted-average discount rate - Capitalized operating leases	4.12%	4.06%

BANK BORROWINGS

3 Months Ended

Mar. 31, 2024

Bank Borrowings

Bank Borrowings

Note 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 March 31, 2024). 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 for a given quarter to consolidated trailing twelve months 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 trailing twelve months Adjusted EBITDA could limit its potential borrowing capacity under the credit facility. As of March 31, 2024, the Company was in compliance with all financial covenants contained in the agreement governing the credit facility.

Cash receipts are automatically applied against any outstanding borrowings. During the three months ended March 31, 2024 and 2023, the Company borrowed incremental amounts that were each repaid in full. These borrowings for the three months ended March 31, 2024 and 2023 totaled $8,349 and $59,310, 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 March 31, 2024 or 2023, 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
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
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-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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+ Details

REVENUE

3 Months Ended

Mar. 31, 2024

Revenue

Revenue

Note 2–Revenue

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


	Three Months Ended March 31, 2024
	Enterprise Solutions		Business Solutions		Public Sector Solutions		Total
Notebooks/Mobility	$	90,231	$	92,156	$	38,882	$	221,269
Desktops		38,037		18,118		8,747		64,902
Software		27,120		30,652		5,550		63,322
Servers/Storage		12,367		21,611		8,506		42,484
Net/Com Products		19,962		21,845		5,605		47,412
Displays and Sound		31,264		21,752		10,603		63,619
Accessories		41,532		30,373		7,596		79,501
Other Hardware/Services		22,146		19,362		8,008		49,516
Total net sales	$	282,659	$	255,869	$	93,497	$	632,025


	Three Months Ended March 31, 2023
	Enterprise Solutions		Business Solutions		Public Sector Solutions		Total
Notebooks/Mobility	$	114,318	$	94,919	$	51,774	$	261,011
Desktops		30,142		18,762		14,417		63,321
Software		39,234		34,576		9,917		83,727
Servers/Storage		12,507		24,291		9,987		46,785
Net/Com Products		20,532		28,304		13,320		62,156
Displays and Sound		26,720		22,813		13,202		62,735
Accessories		47,594		28,735		13,473		89,802
Other Hardware/Services		22,896		20,714		14,398		58,008
Total net sales	$	313,943	$	273,114	$	140,488	$	727,545

Contract Balances

The following table provides information about contract liabilities from arrangements with customers as of March 31, 2024 and December 31, 2023 (in thousands).


	March 31, 2024		December 31, 2023
Contract liabilities, which are included in "Accrued expenses and other liabilities"	$	8,453	$	4,206

Changes in the contract liability balances during the three months ended March 31, 2024 and 2023 are as follows (in thousands):


	2024
Balance at December 31, 2023	$	4,206
Cash received in advance and not recognized as revenue		5,795
Amounts recognized as revenue as performance obligations satisfied		(1,548)
Balance at March 31, 2024	$	8,453

	2023
Balance at December 31, 2022	$	4,266
Cash received in advance and not recognized as revenue		7,656
Amounts recognized as revenue as performance obligations satisfied		(4,388)
Balance at March 31, 2023	$	7,534

- 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
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
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+ Details

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

3 Months Ended

Mar. 31, 2024

Accumulated Other Comprehensive Income (Loss)

Schedule of changes in accumulated comprehensive income (loss)


	Three Months Ended
	March 31, 2024
Balance - December 31, 2023	$	81
Other comprehensive income (loss) before reclassifications, net of tax		(135)
Less amounts reclassified from accumulated other comprehensive income (loss), net of tax		8
Net other comprehensive income (loss)		(143)
Balance - March 31, 2024	$	(62)

	Three Months Ended
	March 31, 2023
Balance - December 31, 2022	$	—
Other comprehensive income (loss) before reclassifications, net of tax		—
Less amounts reclassified from accumulated other comprehensive income (loss), net of tax		—
Net other comprehensive income (loss)		—
Balance - March 31, 2023	$	—

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2024	Apr. 24, 2024
Document And Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2024
Entity File Number	0-23827
Entity Registrant Name	PC CONNECTION, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	02-0513618
Entity Address, Address Line One	730 Milford Road
Entity Address, City or Town	Merrimack
Entity Address, State or Province	NH
Entity Address, Postal Zip Code	03054
City Area Code	603
Local Phone Number	683-2000
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	CNXN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		26,363,431
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001050377
Amendment Flag	false

BANK BORROWINGS (Details) - USD ($) $ in Thousands	3 Months Ended
BANK BORROWINGS (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023
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	8,349	59,310
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%

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current Assets:
Cash and cash equivalents	$ 147,579	$ 144,954
Short-term investments	204,374	152,232
Accounts receivable, net	527,259	606,834
Inventories, net	123,900	124,179
Income taxes receivable	3,318	4,348
Prepaid expenses and other current assets	16,926	16,092
Total current assets	1,023,356	1,048,639
Property and equipment, net	55,529	56,658
Right-of-use assets	4,020	4,340
Goodwill	73,602	73,602
Intangible, net	3,124	3,428
Other assets	1,434	1,714
Total Assets	1,161,065	1,188,381
Current Liabilities:
Accounts payable	218,801	263,682
Accrued payroll	22,607	20,440
Accrued expenses and other liabilities	48,400	43,843
Total current liabilities	289,808	327,965
Deferred income taxes	15,806	15,844
Noncurrent operating lease liabilities	2,760	3,181
Other liabilities	19	624
Total Liabilities	308,393	347,614
Stockholders' Equity:
Common stock	293	293
Additional paid-in capital	132,596	130,878
Retained earnings	771,416	760,898
Accumulated other comprehensive income	(62)	81
Treasury stock, at cost	(51,571)	(51,383)
Total Stockholders' Equity	852,672	840,767
Total Liabilities and Stockholders' Equity	$ 1,161,065	$ 1,188,381