0001558370-24-013946 | 10-Q | XBRL Viewer

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

9 Months Ended

Sep. 30, 2024

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

Note 7–Accumulated Other Comprehensive Income

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


	Nine Months Ended
	September 30, 2024
Balance - December 31, 2023	$	81
Other comprehensive income before reclassifications, net of tax		477
Less amounts reclassified from accumulated other comprehensive income, net of tax		81
Net other comprehensive income		396
Balance - September 30, 2024	$	477

	Nine Months Ended
	September 30, 2023
Balance - December 31, 2022	$	—
Other comprehensive income before reclassifications, net of tax		154
Less amounts reclassified from accumulated other comprehensive income, net of tax		—
Net other comprehensive income		154
Balance - September 30, 2023	$	154

EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Computation of basic and diluted earnings per share

The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2024 and 2023 (in thousands, except per share data):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Numerator:
Net income	$	27,059	$	25,598	$	66,374	$	59,493
Denominator:
Denominator for basic earnings per share		26,292		26,262		26,334		26,281
Dilutive effect of employee stock awards		209		172		184		125
Denominator for diluted earnings per share		26,501		26,434		26,518		26,406
Earnings per share:
Basic	$	1.03	$	0.97	$	2.52	$	2.26
Diluted	$	1.02	$	0.97	$	2.50	$	2.25

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)
Issuance of common stock under Employee Stock Purchase Plan		537				537
Issuance of common stock under Employee Stock Purchase Plan (in shares)	13
Stock-based compensation expense		5,425				5,425
Restricted stock units vested	$ 1	(1)
Restricted stock units vested (in shares)	38
Shares withheld for taxes paid on stock awards		(870)				(870)
Repurchase of common stock for treasury					$ (5,446)	(5,446)
Repurchase of common stock for treasury (in shares)					(129)
Dividend declaration			(6,307)			(6,307)
Net Income (Loss)			59,493			59,493
Other comprehensive income, net of tax				$ 154		154
Balance at Sep. 30, 2023	$ 292	130,875	739,223	154	$ (51,383)	819,161
Balance (in shares) at Sep. 30, 2023	29,174
Balance - Treasury Shares (in shares) at Sep. 30, 2023					(2,902)
Balance at Jun. 30, 2023	$ 291	129,486	715,726		$ (51,383)	794,120
Balance (in shares) at Jun. 30, 2023	29,158
Balance - Treasury Shares (in shares) at Jun. 30, 2023					(2,902)
Stock-based compensation expense		1,789				1,789
Restricted stock units vested	$ 1	(1)
Restricted stock units vested (in shares)	16
Shares withheld for taxes paid on stock awards		(399)				(399)
Dividend declaration			(2,101)			(2,101)
Net Income (Loss)			25,598			25,598
Other comprehensive income, net of tax				154		154
Balance at Sep. 30, 2023	$ 292	130,875	739,223	154	$ (51,383)	819,161
Balance (in shares) at Sep. 30, 2023	29,174
Balance - Treasury Shares (in shares) at Sep. 30, 2023					(2,902)
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)
Issuance of common stock under Employee Stock Purchase Plan		537				537
Issuance of common stock under Employee Stock Purchase Plan (in shares)	9
Stock-based compensation expense		6,196				6,196
Restricted stock units vested (in shares)	39
Shares withheld for taxes paid on stock awards		(1,285)				(1,285)
Repurchase of common stock for treasury					$ (7,723)	(7,723)
Repurchase of common stock for treasury (in shares)					(119)
Dividend declaration			(7,900)			(7,900)
Net Income (Loss)			66,374			66,374
Other comprehensive income, net of tax				396		396
Balance at Sep. 30, 2024	$ 293	136,326	819,372	477	$ (59,106)	897,362
Balance (in shares) at Sep. 30, 2024	29,310
Balance - Treasury Shares (in shares) at Sep. 30, 2024					(3,021)
Balance at Jun. 30, 2024	$ 293	134,967	794,942	(103)	$ (55,171)	874,928
Balance (in shares) at Jun. 30, 2024	29,294
Balance - Treasury Shares (in shares) at Jun. 30, 2024					(2,962)
Stock-based compensation expense		1,999				1,999
Restricted stock units vested (in shares)	16
Shares withheld for taxes paid on stock awards		(640)				(640)
Repurchase of common stock for treasury					$ (3,935)	(3,935)
Repurchase of common stock for treasury (in shares)					(59)
Dividend declaration			(2,629)			(2,629)
Net Income (Loss)			27,059			27,059
Other comprehensive income, net of tax				580		580
Balance at Sep. 30, 2024	$ 293	$ 136,326	$ 819,372	$ 477	$ (59,106)	$ 897,362
Balance (in shares) at Sep. 30, 2024	29,310
Balance - Treasury Shares (in shares) at Sep. 30, 2024					(3,021)

BASIS OF PRESENTATION (Tables)

9 Months Ended

Sep. 30, 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 September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Employee separations	$	—	$	17	$	415	$	2,416
Other charges		—		27		—		271
Total restructuring and other charges	$	—	$	44	$	415	$	2,687

LEASES - Future Lease Payments (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Future lease payments over the remaining term of capitalized operating leases
2024, excluding the nine months ended September 30, 2024	$ 556
2025	1,980
2026	1,205
2027	237
2028	161
Total	4,139
Imputed interest	(187)
Lease liability balance	3,952
Right-of-use assets	3,460	$ 4,340
Long-term lease liability	2,030	3,181
Short-term lease liability	$ 1,922	$ 1,733
Short-term lease liability, Statement of Financial Position	Accrued expenses and other liabilities	Accrued expenses and other liabilities

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 27,059	$ 25,598	$ 66,374	$ 59,493

- 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

SEGMENT INFORMATION

9 Months Ended

Sep. 30, 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 and nine months ended September 30, 2024 and 2023 is shown below (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Net sales:
Enterprise Solutions	$	296,970	$	276,566	$	878,437	$	877,662
Business Solutions		252,631		269,021		786,698		803,162
Public Sector Solutions		175,116		147,499		428,086		473,354
Total net sales	$	724,717	$	693,086	$	2,093,221	$	2,154,178
Operating income (loss):
Enterprise Solutions	$	10,280	$	11,230	$	26,357	$	25,263
Business Solutions		20,065		21,040		58,083		56,424
Public Sector Solutions		4,342		4,117		1,706		5,796
Headquarters/Other		(4,646)		(4,365)		(11,722)		(12,273)
Total operating income		30,041		32,022		74,424		75,210
Interest income, net		4,837		2,688		14,053		5,848
Other income		1,700		—		1,700		—
Income before taxes	$	36,578	$	34,710	$	90,177	$	81,058
Selected operating expense:
Depreciation and amortization:
Enterprise Solutions	$	215	$	391	$	641	$	1,238
Business Solutions		155		156		465		473
Public Sector Solutions		22		22		68		61
Headquarters/Other		2,887		2,720		8,644		7,684
Total depreciation and amortization	$	3,279	$	3,289	$	9,818	$	9,456
Total assets:
Enterprise Solutions					$	717,143	$	676,694
Business Solutions						553,881		481,483
Public Sector Solutions						117,728		110,919
Headquarters/Other						(103,007)		(87,669)
Total assets					$	1,285,745	$	1,181,427

The assets of the Company’s three operating segments presented above consist primarily of accounts receivable, net intercompany receivables, goodwill, and other intangibles, net. 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 September 30, 2024 and 2023, total assets for the Headquarters/Other group were presented net of intercompany balance eliminations of $64,994 and $58,864, 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

REVENUE - Contract Balances (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 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	18,544	15,207
Amounts recognized as revenue as performance obligations satisfied	(14,230)	(15,647)
Ending balance - Contract liability	8,520	$ 3,826
Accrued expenses and other liabilities
Contract liabilities
Contract liabilities	$ 8,520		$ 4,206

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

9 Months Ended

Sep. 30, 2024

Accumulated Other Comprehensive Income (Loss)

Schedule of changes in accumulated comprehensive income (loss)


	Nine Months Ended
	September 30, 2024
Balance - December 31, 2023	$	81
Other comprehensive income before reclassifications, net of tax		477
Less amounts reclassified from accumulated other comprehensive income, net of tax		81
Net other comprehensive income		396
Balance - September 30, 2024	$	477

	Nine Months Ended
	September 30, 2023
Balance - December 31, 2022	$	—
Other comprehensive income before reclassifications, net of tax		154
Less amounts reclassified from accumulated other comprehensive income, net of tax		—
Net other comprehensive income		154
Balance - September 30, 2023	$	154

BASIS OF PRESENTATION

9 Months Ended

Sep. 30, 2024

Basis of Presentation

Basis of Presentation

Note 1– Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of PC Connection, Inc. and its subsidiaries, 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 and nine months ended September 30, 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 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 $4,840 and $14,060 for the three and nine months ended September 30, 2024, respectively, and $2,684 and $5,866 for the three and nine months ended September 30, 2023, respectively.

Treasury Stock, at Cost

The total repurchases for the nine months ended September 30, 2024 and 2023 were recorded as treasury stock of $7,723 and $5,446, respectively. Such costs reflect 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.

Restructuring and Other Charges

The restructuring and other charges recorded for the three and nine months ended September 30, 2024 and 2023 were primarily related to an involuntary reduction in the Company’s headquarter workforce and included cash severance and other related termination benefits. No amounts related to these costs are included in accrued expenses and other liabilities as all such amounts have been paid as of September 30, 2024.

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Employee separations	$	—	$	17	$	415	$	2,416
Other charges		—		27		—		271
Total restructuring and other charges	$	—	$	44	$	415	$	2,687

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.

SEGMENT INFORMATION - Segment Information Applicable to Reportable Operating Segments (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024 USD ($) segment	Sep. 30, 2023 USD ($) segment	Sep. 30, 2024 USD ($) segment	Sep. 30, 2023 USD ($) segment	Dec. 31, 2023 USD ($)
Segment Reporting Information
Number of reportable segments \| segment	3	3	3	3
Number of operating segments \| segment	3	3	3	3
Net sales:
Net sales	$ 724,717	$ 693,086	$ 2,093,221	$ 2,154,178
Operating income (loss):
Operating income (loss)	30,041	32,022	74,424	75,210
Interest income, net	4,837	2,688	14,053	5,848
Other income	1,700		1,700
Income before taxes	36,578	34,710	90,177	81,058
Depreciation and amortization:
Depreciation and amortization	3,279	3,289	9,818	9,456
Total assets:
Total assets	1,285,745	1,181,427	1,285,745	1,181,427	$ 1,188,381
Enterprise Solutions
Net sales:
Net sales	296,970	276,566	878,437	877,662
Business Solutions
Net sales:
Net sales	252,631	269,021	786,698	803,162
Public Sector Solutions
Net sales:
Net sales	175,116	147,499	428,086	473,354
Operating Segments \| Enterprise Solutions
Net sales:
Net sales	296,970	276,566	878,437	877,662
Operating income (loss):
Operating income (loss)	10,280	11,230	26,357	25,263
Depreciation and amortization:
Depreciation and amortization	215	391	641	1,238
Total assets:
Total assets	717,143	676,694	717,143	676,694
Operating Segments \| Business Solutions
Net sales:
Net sales	252,631	269,021	786,698	803,162
Operating income (loss):
Operating income (loss)	20,065	21,040	58,083	56,424
Depreciation and amortization:
Depreciation and amortization	155	156	465	473
Total assets:
Total assets	553,881	481,483	553,881	481,483
Operating Segments \| Public Sector Solutions
Net sales:
Net sales	175,116	147,499	428,086	473,354
Operating income (loss):
Operating income (loss)	4,342	4,117	1,706	5,796
Depreciation and amortization:
Depreciation and amortization	22	22	68	61
Total assets:
Total assets	117,728	110,919	117,728	110,919
Headquarters/Other
Operating income (loss):
Operating income (loss)	(4,646)	(4,365)	(11,722)	(12,273)
Depreciation and amortization:
Depreciation and amortization	2,887	2,720	8,644	7,684
Total assets:
Assets net of intercompany balance eliminations	(103,007)	(87,669)	(103,007)	(87,669)
Intersegment Elimination
Total assets:
Total assets	$ (64,994)	$ (58,864)	$ (64,994)	$ (58,864)

BASIS OF PRESENTATION - Restructuring and Other Charges (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Restructuring and other charges
Restructuring and other charges		$ 44,000	$ 415,000	$ 2,687,000
Treasury stock
Common stock repurchases as treasury stock including excise tax			$ 7,723,000	$ 5,446,000
Excise tax rate on certain stock repurchases			1.00%	1.00%
Cash and cash equivalents and investments
Interest income on cash equivalents and short-term investments	$ 4,840,000	2,684,000	$ 14,060,000	$ 5,866,000
Accrued expenses and other liabilities
Restructuring and other charges
Accrued employee termination benefits	$ 0		0
Employee separations
Restructuring and other charges
Restructuring and other charges		17,000	$ 415,000	2,416,000
Other charges
Restructuring and other charges
Restructuring and other charges		$ 27,000		$ 271,000

EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

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 for the three and nine months ended September 30, 2024 and 2023 (in thousands, except per share data):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Numerator:
Net income	$	27,059	$	25,598	$	66,374	$	59,493
Denominator:
Denominator for basic earnings per share		26,292		26,262		26,334		26,281
Dilutive effect of employee stock awards		209		172		184		125
Denominator for diluted earnings per share		26,501		26,434		26,518		26,406
Earnings per share:
Basic	$	1.03	$	0.97	$	2.52	$	2.26
Diluted	$	1.02	$	0.97	$	2.50	$	2.25

For the three and nine months ended September 30, 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	Sep. 30, 2024	Dec. 31, 2023
Cash equivalents and short-term investments
Amortized Cost	$ 405,728	$ 281,252
Unrealized Gains	604	103
Fair Value	$ 406,332	$ 281,355
Fair value hierarchy - Level 1	us-gaap:FairValueInputsLevel1Member	us-gaap:FairValueInputsLevel1Member
Money market funds \| Cash and cash equivalents
Cash equivalents and short-term investments
Amortized Cost	$ 144,729	$ 129,123
Fair Value	144,729	129,123
U.S. Government treasury securities \| Short-term investments
Cash equivalents and short-term investments
Amortized Cost	260,999	152,129
Unrealized Gains	604	103
Fair Value	$ 261,603	$ 152,232

- Definition

Amount of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

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- 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.

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+ Details

REVENUE (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2024 and 2023, along with the segment for each category (in thousands).


	Three Months Ended September 30, 2024
	Enterprise Solutions		Business Solutions		Public Sector Solutions		Total
Notebooks/Mobility	$	90,233	$	91,757	$	77,264	$	259,254
Desktops		44,846		17,543		15,193		77,582
Software		29,847		34,478		21,706		86,031
Servers/Storage		11,866		23,106		8,696		43,668
Net/Com Products		24,530		21,186		10,340		56,056
Displays and Sound		38,316		20,682		15,981		74,979
Accessories		35,962		27,020		16,978		79,960
Other Hardware/Services		21,370		16,859		8,958		47,187
Total net sales	$	296,970	$	252,631	$	175,116	$	724,717


	Three Months Ended September 30, 2023
	Enterprise Solutions		Business Solutions		Public Sector Solutions		Total
Notebooks/Mobility	$	91,643	$	82,777	$	46,898	$	221,318
Desktops		32,822		17,695		16,281		66,798
Software		29,158		34,863		13,287		77,308
Servers/Storage		13,153		25,863		11,307		50,323
Net/Com Products		25,699		38,672		17,964		82,335
Displays and Sound		26,175		24,299		20,367		70,841
Accessories		32,501		26,335		12,590		71,426
Other Hardware/Services		25,415		18,517		8,805		52,737
Total net sales	$	276,566	$	269,021	$	147,499	$	693,086

The following tables represent a disaggregation of revenue from arrangements with customers for the nine months ended September 30, 2024 and 2023, along with the segment for each category (in thousands).


	Nine Months Ended September 30, 2024
	Enterprise Solutions		Business Solutions		Public Sector Solutions		Total
Notebooks/Mobility	$	270,266	$	281,754	$	185,962	$	737,982
Desktops		135,563		55,766		36,732		228,061
Software		78,595		102,905		36,827		218,327
Servers/Storage		39,924		78,773		30,842		149,539
Net/Com Products		63,599		62,876		30,257		156,732
Displays and Sound		106,845		62,415		43,329		212,589
Accessories		116,139		86,056		36,044		238,239
Other Hardware/Services		67,506		56,153		28,093		151,752
Total net sales	$	878,437	$	786,698	$	428,086	$	2,093,221


	Nine Months Ended September 30, 2023
	Enterprise Solutions		Business Solutions		Public Sector Solutions		Total
Notebooks/Mobility	$	293,551	$	265,777	$	172,903	$	732,231
Desktops		96,536		55,468		48,669		200,673
Software		85,953		103,267		36,263		225,483
Servers/Storage		44,365		72,759		33,253		150,377
Net/Com Products		74,958		95,560		53,517		224,035
Displays and Sound		80,217		70,766		50,354		201,337
Accessories		121,190		81,576		42,551		245,317
Other Hardware/Services		80,892		57,989		35,844		174,725
Total net sales	$	877,662	$	803,162	$	473,354	$	2,154,178

Schedule of changes in contract liability balances

The following table provides information about contract liabilities from arrangements with customers as of September 30, 2024 and December 31, 2023 (in thousands).


	September 30, 2024		December 31, 2023
Contract liabilities, which are included in "Accrued expenses and other liabilities"	$	8,520	$	4,206

Changes in the contract liability balances during the nine months ended September 30, 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		18,544
Amounts recognized as revenue as performance obligations satisfied		(14,230)
Balance at September 30, 2024	$	8,520

	2023
Balance at December 31, 2022	$	4,266
Cash received in advance and not recognized as revenue		15,207
Amounts recognized as revenue as performance obligations satisfied		(15,647)
Balance at September 30, 2023	$	3,826

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
Net sales	$ 724,717	$ 693,086	$ 2,093,221	$ 2,154,178
Cost of sales	589,311	561,198	1,703,201	1,772,217
Gross profit	135,406	131,888	390,020	381,961
Selling, general and administrative expenses	105,365	99,822	315,181	304,064
Restructuring and other charges		44	415	2,687
Income from operations	30,041	32,022	74,424	75,210
Interest income, net	4,837	2,688	14,053	5,848
Other income	1,700		1,700
Income before taxes	36,578	34,710	90,177	81,058
Income tax provision	(9,519)	(9,112)	(23,803)	(21,565)
Net income	$ 27,059	$ 25,598	$ 66,374	$ 59,493
Earnings per common share:
Basic	$ 1.03	$ 0.97	$ 2.52	$ 2.26
Diluted	$ 1.02	$ 0.97	$ 2.50	$ 2.25
Shares used in computation of earnings per common share:
Basic	26,292	26,262	26,334	26,281
Diluted	26,501	26,434	26,518	26,406

CONDENSED CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Condensed Consolidated Statements Of Other Comprehensive Income
Net Income (Loss)	$ 27,059	$ 25,598	$ 66,374	$ 59,493
Other comprehensive loss:
Unrealized gains on available-for-sale investments, net of tax of $(154) and $(105) for the three and nine months ended September 30, 2024, respectively, and net of tax of $(41) for the three and nine months ended September 30, 2023, respectively	580	154	396	154
Comprehensive income	$ 27,639	$ 25,752	$ 66,770	$ 59,647

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income, attributable to parent entity. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

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

+ References

+ Details

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Numerator:
Net Income (Loss)	$ 27,059	$ 25,598	$ 66,374	$ 59,493
Denominator:
Denominator for basic earnings per share	26,292,000	26,262,000	26,334,000	26,281,000
Dilutive effect of unvested employee stock awards	209,000	172,000	184,000	125,000
Denominator for diluted earnings per share	26,501,000	26,434,000	26,518,000	26,406,000
Earnings per share:
Basic	$ 1.03	$ 0.97	$ 2.52	$ 2.26
Diluted	$ 1.02	$ 0.97	$ 2.50	$ 2.25
Additional Disclosure
Employee stock awards excluded from computation of diluted earnings per share	0	0	0	0

BANK BORROWINGS (Details) - USD ($) $ in Thousands	9 Months Ended
BANK BORROWINGS (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 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
Debt instrument, interest rate	8.00%
Debt instrument, variable interest rate, type	us-gaap:PrimeRateMember
Proceeds from short-term borrowings	$ 25,204	70,877
Line of credit, outstanding borrowing	0	0
Line of credit, available for borrowing	$ 50,000	$ 50,000
Maximum
Subordinated Borrowing
Debt ratio	2.0

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2024	Oct. 23, 2024
Document And Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2024
Securities Act 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		26,289,480
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001050377
Amendment Flag	false

BASIS OF PRESENTATION (Policies)

9 Months Ended

Sep. 30, 2024

Summary of Significant Accounting Policies

Basis of Presentation

Use of Estimates in the Preparation of Financial Statements

Cash and Cash Equivalents and Investments

Treasury Stock, at Cost

Restructuring and other charges

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 September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Employee separations	$	—	$	17	$	415	$	2,416
Other charges		—		27		—		271
Total restructuring and other charges	$	—	$	44	$	415	$	2,687

Recently Issued Financial Accounting Standards

COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 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.

FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Measurements

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

Cash equivalents and short-term investments as of September 30, 2024 and December 31, 2023 consist of the following (in thousands):


	September 30, 2024
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Cash equivalents:
Money market funds	$	144,729	$	—	$	—	$	144,729
Short-term investments:
U.S. Government treasury securities		260,999		604		—		261,603
Total	$	405,728	$	604	$	—	$	406,332

	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

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Condensed Consolidated Statement of Changes in Stockholders' Equity
Dividend per Share	$ 0.10	$ 0.08	$ 0.10	$ 0.08

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Accumulated Other Comprehensive Income (Loss)
Balance at beginning of period	$ 81
Other comprehensive income before reclassifications, net of tax	477	$ 154
Less amounts reclassified from accumulated other comprehensive income, net of tax	81
Net other comprehensive income	396	154
Balance at end of period	$ 477	$ 154

- 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, before reclassification adjustments of other comprehensive income (loss).

+ References + Details

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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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/2009/role/commonPracticeRef
-Topic 220
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-URI https://asc.fasb.org/1943274/2147482765/220-10-50-4

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
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-URI https://asc.fasb.org/1943274/2147482790/220-10-45-1A

+ Details

- Definition

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

+ References + Details

LEASES - Lease Cost and Other Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) lease	Sep. 30, 2023 USD ($)
Leases
Number of additional operating or financing leases not yet commenced \| lease			0
Lease Cost
Capitalized operating lease cost	$ 501	$ 813	$ 1,445	$ 2,739
Short-term lease cost	560	268	1,682	618
Total lease cost	1,061	1,081	3,127	3,357
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$ 550	$ 855	$ 1,527	$ 2,727
Weighted-average remaining lease term - Capitalized operating leases (in years)	2 years 2 months 19 days	3 years 14 days	2 years 2 months 19 days	3 years 14 days
Weighted-average discount rate - Capitalized operating leases	4.27%	4.05%	4.27%	4.05%
Related Parties
Lease Cost
Capitalized operating lease cost		$ 313		$ 940
Short-term lease cost	$ 420	107	$ 1,261	321
Total lease cost	420	420	1,261	1,261
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows		$ 313		$ 940
Weighted-average remaining lease term - Capitalized operating leases (in years)		2 months 1 day		2 months 1 day
Weighted-average discount rate - Capitalized operating leases		3.92%		3.92%
Others
Lease Cost
Capitalized operating lease cost	501	$ 500	1,445	$ 1,799
Short-term lease cost	140	161	421	297
Total lease cost	641	661	1,866	2,096
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$ 550	$ 542	$ 1,527	$ 1,787
Weighted-average remaining lease term - Capitalized operating leases (in years)	2 years 2 months 19 days	3 years 1 month 24 days	2 years 2 months 19 days	3 years 1 month 24 days
Weighted-average discount rate - Capitalized operating leases	4.27%	4.07%	4.27%	4.07%

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current Assets:
Cash and cash equivalents	$ 167,511	$ 144,954
Short-term investments	261,603	152,232
Accounts receivable, net	585,076	606,834
Inventories, net	113,691	124,179
Income taxes receivable	7,088	4,348
Prepaid expenses and other current assets	16,757	16,092
Total current assets	1,151,726	1,048,639
Property and equipment, net	53,255	56,658
Right-of-use assets	3,460	4,340
Goodwill	73,602	73,602
Intangible, net	2,514	3,428
Other assets	1,188	1,714
Total Assets	1,285,745	1,188,381
Current Liabilities:
Accounts payable	293,158	263,682
Accrued payroll	28,131	20,440
Accrued expenses and other liabilities	46,164	43,843
Total current liabilities	367,453	327,965
Deferred income taxes	18,383	15,844
Noncurrent operating lease liabilities	2,030	3,181
Other liabilities	517	624
Total Liabilities	388,383	347,614
Stockholders' Equity:
Common stock	293	293
Additional paid-in capital	136,326	130,878
Retained earnings	819,372	760,898
Accumulated other comprehensive (loss) income	477	81
Treasury stock, at cost	(59,106)	(51,383)
Total Stockholders' Equity	897,362	840,767
Total Liabilities and Stockholders' Equity	$ 1,285,745	$ 1,188,381

LEASES

9 Months Ended

Sep. 30, 2024

Lessee Disclosure [Abstract]

Leases

Note 5–Leases

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

As of September 30, 2024, there were no additional significant operating leases that have not yet commenced. Refer to the following table for quantitative information related to the Company’s leases for the three and nine months ended September 30, 2024 and 2023 (dollars in thousands):


	Three Months Ended September 30, 2024						Nine Months Ended September 30, 2024
	Related Parties		Others		Total		Related Parties		Others		Total
Lease Cost
Capitalized operating lease cost	$	—	$	501	$	501	$	—	$	1,445	$	1,445
Short-term lease cost		420		140		560		1,261		421		1,682
Total lease cost	$	420	$	641	$	1,061	$	1,261	$	1,866	$	3,127

Other Information
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$	—	$	550	$	550	$	—	$	1,527	$	1,527

Weighted-average remaining lease term (in years):
Capitalized operating leases								—		2.22		2.22

Weighted-average discount rate:
Capitalized operating leases								—		4.27%		4.27%

	Three Months Ended September 30, 2023						Nine Months Ended September 30, 2023
	Related Parties		Others		Total		Related Parties		Others		Total
Lease Cost
Capitalized operating lease cost	$	313	$	500	$	813	$	940	$	1,799	$	2,739
Short-term lease cost		107		161		268		321		297		618
Total lease cost	$	420	$	661	$	1,081	$	1,261	$	2,096	$	3,357

Other Information
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$	313	$	542	$	855	$	940	$	1,787	$	2,727

Weighted-average remaining lease term (in years):
Capitalized operating leases								0.17		3.15		3.04

Weighted-average discount rate:
Capitalized operating leases								3.92%		4.07%		4.05%

As of September 30, 2024, future lease payments over the remaining term of capitalized operating leases were as follows (in thousands):


For the Years Ended December 31,
2024, excluding the nine months ended September 30, 2024	$	556
2025		1,980
2026		1,205
2027		237
2028		161
Thereafter		—
	$	4,139

Imputed interest	$	(187)
Lease liability balance at September 30, 2024	$	3,952

As of September 30, 2024, the right-of-use, or ROU, asset had a balance of $3,460. The long-term lease liability was $2,030 and the short-term lease liability, which is included in accrued expenses and other liabilities on the condensed consolidated balance sheets, was $1,922. 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 (Tables)

9 Months Ended

Sep. 30, 2024

Segment Information

Segment information applicable to reportable operating segments


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Net sales:
Enterprise Solutions	$	296,970	$	276,566	$	878,437	$	877,662
Business Solutions		252,631		269,021		786,698		803,162
Public Sector Solutions		175,116		147,499		428,086		473,354
Total net sales	$	724,717	$	693,086	$	2,093,221	$	2,154,178
Operating income (loss):
Enterprise Solutions	$	10,280	$	11,230	$	26,357	$	25,263
Business Solutions		20,065		21,040		58,083		56,424
Public Sector Solutions		4,342		4,117		1,706		5,796
Headquarters/Other		(4,646)		(4,365)		(11,722)		(12,273)
Total operating income		30,041		32,022		74,424		75,210
Interest income, net		4,837		2,688		14,053		5,848
Other income		1,700		—		1,700		—
Income before taxes	$	36,578	$	34,710	$	90,177	$	81,058
Selected operating expense:
Depreciation and amortization:
Enterprise Solutions	$	215	$	391	$	641	$	1,238
Business Solutions		155		156		465		473
Public Sector Solutions		22		22		68		61
Headquarters/Other		2,887		2,720		8,644		7,684
Total depreciation and amortization	$	3,279	$	3,289	$	9,818	$	9,456
Total assets:
Enterprise Solutions					$	717,143	$	676,694
Business Solutions						553,881		481,483
Public Sector Solutions						117,728		110,919
Headquarters/Other						(103,007)		(87,669)
Total assets					$	1,285,745	$	1,181,427

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash Flows provided by Operating Activities:
Net income	$ 66,374	$ 59,493
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	9,818	9,456
Adjustments to credit losses reserve	830	1,814
Stock-based compensation expense	6,196	5,425
Deferred income taxes	2,434
Amortization of discount on short-term investments	(4,402)
Loss on disposal of fixed assets	49	563
Changes in assets and liabilities:
Accounts receivable	20,928	20,869
Inventories	10,488	66,439
Prepaid expenses, income tax receivable, and other current assets	(3,405)	(9,556)
Other non-current assets	526	234
Accounts payable	29,141	31,648
Accrued expenses and other liabilities	9,643	(720)
Net cash provided by operating activities	148,620	185,665
Cash Flows used in Investing Activities:
Purchases of short-term investments	(255,075)	(48,699)
Maturities of short-term investments	150,607
Purchases of property and equipment	(5,215)	(7,355)
Net cash used in investing activities	(109,683)	(56,054)
Cash Flows used in Financing Activities:
Proceeds from short-term borrowings	25,204	70,877
Repayment of short-term borrowings	(25,204)	(70,877)
Purchase of common stock for treasury shares	(7,732)	(5,392)
Dividend payments	(7,900)	(6,307)
Issuance of stock under Employee Stock Purchase Plan	537	537
Payments of payroll taxes on stock-based compensation through shares withheld	(1,285)	(870)
Net cash used in financing activities	(16,380)	(12,032)
Increase in cash and cash equivalents	22,557	117,579
Cash and cash equivalents, beginning of year	144,954	122,930
Cash and cash equivalents, end of period	167,511	240,509
Non-cash Investing and Financing Activities:
Accrued purchases of property and equipment	425	408
Accrued excise tax on treasury purchases	45	54
Supplemental Cash Flow Information:
Income taxes paid	24,533	34,251
Interest paid	$ 5	$ 19

LEASES (Tables)

9 Months Ended

Sep. 30, 2024

Lessee Disclosure [Abstract]

Schedule of lease cost


	Three Months Ended September 30, 2024						Nine Months Ended September 30, 2024
	Related Parties		Others		Total		Related Parties		Others		Total
Lease Cost
Capitalized operating lease cost	$	—	$	501	$	501	$	—	$	1,445	$	1,445
Short-term lease cost		420		140		560		1,261		421		1,682
Total lease cost	$	420	$	641	$	1,061	$	1,261	$	1,866	$	3,127

Other Information
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$	—	$	550	$	550	$	—	$	1,527	$	1,527

Weighted-average remaining lease term (in years):
Capitalized operating leases								—		2.22		2.22

Weighted-average discount rate:
Capitalized operating leases								—		4.27%		4.27%

	Three Months Ended September 30, 2023						Nine Months Ended September 30, 2023
	Related Parties		Others		Total		Related Parties		Others		Total
Lease Cost
Capitalized operating lease cost	$	313	$	500	$	813	$	940	$	1,799	$	2,739
Short-term lease cost		107		161		268		321		297		618
Total lease cost	$	420	$	661	$	1,081	$	1,261	$	2,096	$	3,357

Other Information
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$	313	$	542	$	855	$	940	$	1,787	$	2,727

Weighted-average remaining lease term (in years):
Capitalized operating leases								0.17		3.15		3.04

Weighted-average discount rate:
Capitalized operating leases								3.92%		4.07%		4.05%

Schedule of future lease payments on capitalized operating leases

As of September 30, 2024, future lease payments over the remaining term of capitalized operating leases were as follows (in thousands):


For the Years Ended December 31,
2024, excluding the nine months ended September 30, 2024	$	556
2025		1,980
2026		1,205
2027		237
2028		161
Thereafter		—
	$	4,139

Imputed interest	$	(187)
Lease liability balance at September 30, 2024	$	3,952

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 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

REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of revenue
Net sales	$ 724,717	$ 693,086	$ 2,093,221	$ 2,154,178
Notebooks/Mobility
Disaggregation of revenue
Net sales	259,254	221,318	737,982	732,231
Desktops
Disaggregation of revenue
Net sales	77,582	66,798	228,061	200,673
Software
Disaggregation of revenue
Net sales	86,031	77,308	218,327	225,483
Servers/Storage
Disaggregation of revenue
Net sales	43,668	50,323	149,539	150,377
Net/Com Products
Disaggregation of revenue
Net sales	56,056	82,335	156,732	224,035
Displays and Sound
Disaggregation of revenue
Net sales	74,979	70,841	212,589	201,337
Accessories
Disaggregation of revenue
Net sales	79,960	71,426	238,239	245,317
Other Hardware/Services
Disaggregation of revenue
Net sales	47,187	52,737	151,752	174,725
Enterprise Solutions
Disaggregation of revenue
Net sales	296,970	276,566	878,437	877,662
Enterprise Solutions \| Notebooks/Mobility
Disaggregation of revenue
Net sales	90,233	91,643	270,266	293,551
Enterprise Solutions \| Desktops
Disaggregation of revenue
Net sales	44,846	32,822	135,563	96,536
Enterprise Solutions \| Software
Disaggregation of revenue
Net sales	29,847	29,158	78,595	85,953
Enterprise Solutions \| Servers/Storage
Disaggregation of revenue
Net sales	11,866	13,153	39,924	44,365
Enterprise Solutions \| Net/Com Products
Disaggregation of revenue
Net sales	24,530	25,699	63,599	74,958
Enterprise Solutions \| Displays and Sound
Disaggregation of revenue
Net sales	38,316	26,175	106,845	80,217
Enterprise Solutions \| Accessories
Disaggregation of revenue
Net sales	35,962	32,501	116,139	121,190
Enterprise Solutions \| Other Hardware/Services
Disaggregation of revenue
Net sales	21,370	25,415	67,506	80,892
Business Solutions
Disaggregation of revenue
Net sales	252,631	269,021	786,698	803,162
Business Solutions \| Notebooks/Mobility
Disaggregation of revenue
Net sales	91,757	82,777	281,754	265,777
Business Solutions \| Desktops
Disaggregation of revenue
Net sales	17,543	17,695	55,766	55,468
Business Solutions \| Software
Disaggregation of revenue
Net sales	34,478	34,863	102,905	103,267
Business Solutions \| Servers/Storage
Disaggregation of revenue
Net sales	23,106	25,863	78,773	72,759
Business Solutions \| Net/Com Products
Disaggregation of revenue
Net sales	21,186	38,672	62,876	95,560
Business Solutions \| Displays and Sound
Disaggregation of revenue
Net sales	20,682	24,299	62,415	70,766
Business Solutions \| Accessories
Disaggregation of revenue
Net sales	27,020	26,335	86,056	81,576
Business Solutions \| Other Hardware/Services
Disaggregation of revenue
Net sales	16,859	18,517	56,153	57,989
Public Sector Solutions
Disaggregation of revenue
Net sales	175,116	147,499	428,086	473,354
Public Sector Solutions \| Notebooks/Mobility
Disaggregation of revenue
Net sales	77,264	46,898	185,962	172,903
Public Sector Solutions \| Desktops
Disaggregation of revenue
Net sales	15,193	16,281	36,732	48,669
Public Sector Solutions \| Software
Disaggregation of revenue
Net sales	21,706	13,287	36,827	36,263
Public Sector Solutions \| Servers/Storage
Disaggregation of revenue
Net sales	8,696	11,307	30,842	33,253
Public Sector Solutions \| Net/Com Products
Disaggregation of revenue
Net sales	10,340	17,964	30,257	53,517
Public Sector Solutions \| Displays and Sound
Disaggregation of revenue
Net sales	15,981	20,367	43,329	50,354
Public Sector Solutions \| Accessories
Disaggregation of revenue
Net sales	16,978	12,590	36,044	42,551
Public Sector Solutions \| Other Hardware/Services
Disaggregation of revenue
Net sales	$ 8,958	$ 8,805	$ 28,093	$ 35,844

CONDENSED CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Condensed Consolidated Statements Of Other Comprehensive Income
Unrealized losses on available-for-sale investments, tax	$ (154)	$ (41)	$ (105)	$ (41)

REVENUE

9 Months Ended

Sep. 30, 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 September 30, 2024
	Enterprise Solutions		Business Solutions		Public Sector Solutions		Total
Notebooks/Mobility	$	90,233	$	91,757	$	77,264	$	259,254
Desktops		44,846		17,543		15,193		77,582
Software		29,847		34,478		21,706		86,031
Servers/Storage		11,866		23,106		8,696		43,668
Net/Com Products		24,530		21,186		10,340		56,056
Displays and Sound		38,316		20,682		15,981		74,979
Accessories		35,962		27,020		16,978		79,960
Other Hardware/Services		21,370		16,859		8,958		47,187
Total net sales	$	296,970	$	252,631	$	175,116	$	724,717


	Three Months Ended September 30, 2023
	Enterprise Solutions		Business Solutions		Public Sector Solutions		Total
Notebooks/Mobility	$	91,643	$	82,777	$	46,898	$	221,318
Desktops		32,822		17,695		16,281		66,798
Software		29,158		34,863		13,287		77,308
Servers/Storage		13,153		25,863		11,307		50,323
Net/Com Products		25,699		38,672		17,964		82,335
Displays and Sound		26,175		24,299		20,367		70,841
Accessories		32,501		26,335		12,590		71,426
Other Hardware/Services		25,415		18,517		8,805		52,737
Total net sales	$	276,566	$	269,021	$	147,499	$	693,086


	Nine Months Ended September 30, 2024
	Enterprise Solutions		Business Solutions		Public Sector Solutions		Total
Notebooks/Mobility	$	270,266	$	281,754	$	185,962	$	737,982
Desktops		135,563		55,766		36,732		228,061
Software		78,595		102,905		36,827		218,327
Servers/Storage		39,924		78,773		30,842		149,539
Net/Com Products		63,599		62,876		30,257		156,732
Displays and Sound		106,845		62,415		43,329		212,589
Accessories		116,139		86,056		36,044		238,239
Other Hardware/Services		67,506		56,153		28,093		151,752
Total net sales	$	878,437	$	786,698	$	428,086	$	2,093,221


	Nine Months Ended September 30, 2023
	Enterprise Solutions		Business Solutions		Public Sector Solutions		Total
Notebooks/Mobility	$	293,551	$	265,777	$	172,903	$	732,231
Desktops		96,536		55,468		48,669		200,673
Software		85,953		103,267		36,263		225,483
Servers/Storage		44,365		72,759		33,253		150,377
Net/Com Products		74,958		95,560		53,517		224,035
Displays and Sound		80,217		70,766		50,354		201,337
Accessories		121,190		81,576		42,551		245,317
Other Hardware/Services		80,892		57,989		35,844		174,725
Total net sales	$	877,662	$	803,162	$	473,354	$	2,154,178

Contract Balances

The following table provides information about contract liabilities from arrangements with customers as of September 30, 2024 and December 31, 2023 (in thousands).


	September 30, 2024		December 31, 2023
Contract liabilities, which are included in "Accrued expenses and other liabilities"	$	8,520	$	4,206

Changes in the contract liability balances during the nine months ended September 30, 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		18,544
Amounts recognized as revenue as performance obligations satisfied		(14,230)
Balance at September 30, 2024	$	8,520

	2023
Balance at December 31, 2022	$	4,266
Cash received in advance and not recognized as revenue		15,207
Amounts recognized as revenue as performance obligations satisfied		(15,647)
Balance at September 30, 2023	$	3,826

- 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

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+ Details

BANK BORROWINGS

9 Months Ended

Sep. 30, 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 (8.00% at September 30, 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 September 30, 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 nine months ended September 30, 2024 and 2023, the Company borrowed incremental amounts that were each repaid in full. These borrowings for the nine months ended September 30, 2024 and 2023 totaled $25,204 and $70,877, 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 September 30, 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.

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+ Details

FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2024

Fair Value Measurements

Fair Value Measurements

Note 3–Fair Value Measurements

Cash equivalents and short-term investments as of September 30, 2024 and December 31, 2023 consist of the following (in thousands):


	September 30, 2024
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Cash equivalents:
Money market funds	$	144,729	$	—	$	—	$	144,729
Short-term investments:
U.S. Government treasury securities		260,999		604		—		261,603
Total	$	405,728	$	604	$	—	$	406,332

	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 September 30, 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.

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+ Details