PC Connection (CNXN) 10-K 9 Mar 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Feb. 26, 2018	Jun. 30, 2017
Document And Entity Information
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY
Trading Symbol	PCCC
Entity Registrant Name	PC CONNECTION INC
Entity Central Index Key	1,050,377
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		26,852,785
Entity Public Float			$ 311,350,547

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 49,990	$ 49,180
Accounts receivable, net	449,682	411,883
Inventories	106,753	90,535
Prepaid expenses and other current assets	5,737	5,453
Income taxes receivable	3,933	2,120
Total current assets	616,095	559,171
Property and equipment, net	41,491	39,402
Goodwill	73,602	73,602
Other intangibles, net	11,025	12,586
Other assets	5,638	1,373
Total Assets	747,851	686,134
Current Liabilities:
Accounts payable	194,257	177,862
Accrued expenses and other liabilities	31,096	31,047
Accrued payroll	22,662	21,345
Total current liabilities	248,015	230,254
Deferred income taxes	15,696	19,602
Other liabilities	1,888	2,836
Total Liabilities	265,599	252,692
Commitments and Contingencies (Note 10)
Stockholders' Equity:
Preferred Stock, $.01 par value, 10,000 shares authorized, none issued
Common Stock, $.01 par value, 100,000 shares authorized, 28,709 and 28,465 issued, 26,853 and 26,609 outstanding at December 31, 2017 and 2016, respectively	287	285
Additional paid-in capital	114,154	111,081
Retained earnings	383,673	337,938
Treasury stock, at cost, 1,856 shares at December 31, 2017 and 2016	(15,862)	(15,862)
Total Stockholders' Equity	482,252	433,442
Total Liabilities and Stockholders' Equity	$ 747,851	$ 686,134

CONSOLIDATED BALANCE SHEETS (PA

CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares shares in Thousands	Dec. 31, 2017	Dec. 31, 2016
Consolidated Balance Sheets
Preferred Stock, par value	$ 0.01	$ 0.01
Preferred Stock, shares authorized	10,000	10,000
Preferred Stock, shares issued	0	0
Common Stock, par value	$ 0.01	$ 0.01
Common Stock, shares authorized	100,000	100,000
Common Stock, shares issued	28,709	28,465
Common Stock, shares outstanding	26,853	26,609
Treasury stock, shares	1,856	1,856

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Consolidated Statements of Income
Net sales	$ 762,267	$ 729,230	$ 749,792	$ 670,594	$ 735,548	$ 708,485	$ 676,165	$ 572,394	$ 2,911,883	$ 2,692,592	$ 2,573,973
Cost of sales	662,737	633,087	650,122	583,861	637,425	611,518	582,291	490,201	2,529,807	2,321,435	2,232,954
Gross profit	99,530	96,143	99,670	86,733	98,123	96,967	93,874	82,193	382,076	371,157	341,019
Selling, general and administrative expenses	77,634	74,404	77,230	75,281	76,222	74,522	72,864	67,029	304,549	290,637	262,465
Income from operations	21,896	21,739	22,440	11,452	21,901	22,445	21,010	15,164	77,527	80,520	78,554
Interest income (expense)	78	(8)	9	19	(14)	(27)	(12)	(14)	98	(67)	(87)
Income before taxes	21,974	21,731	22,449	11,471	21,887	22,418	20,998	15,150	77,625	80,453	78,467
Income tax provision	(1,251)	(8,614)	(8,864)	(4,039)	(8,890)	(8,825)	(8,540)	(6,087)	(22,768)	(32,342)	(31,640)
Net income	$ 20,723	$ 13,117	$ 13,585	$ 7,432	$ 12,997	$ 13,593	$ 12,458	$ 9,063	$ 54,857	$ 48,111	$ 46,827
Earnings per common share:
Basic	$ 0.77	$ 0.49	$ 0.51	$ 0.28	$ 0.49	$ 0.51	$ 0.47	$ 0.34	$ 2.05	$ 1.81	$ 1.77
Diluted	$ 0.77	$ 0.49	$ 0.51	$ 0.28	$ 0.49	$ 0.51	$ 0.47	$ 0.34	$ 2.04	$ 1.80	$ 1.76
Shares used in computation of earnings per common share:
Basic	26,822	26,802	26,761	26,697	26,569	26,542	26,501	26,499	26,771	26,528	26,398
Diluted	26,907	26,899	26,893	26,866	26,738	26,736	26,691	26,671	26,891	26,719	26,616

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings	Treasury Shares	Total
Balance at Dec. 31, 2014	$ 282	$ 106,956	$ 262,632	$ (15,862)	$ 354,008
Balance (in shares) at Dec. 31, 2014	28,199			(1,856)
Issuance of common stock under stock incentive plans	$ 1	436			437
Issuance of common stock under stock incentive plans (in shares)	41
Issuance of common stock under Employee Stock Purchase Plan		875			875
Issuance of common stock under Employee Stock Purchase Plan (in shares)	39
Stock-based compensation expense		994			994
Nonvested stock awards	$ 1	(1)
Nonvested stock awards (in shares)	74
Shares withheld for taxes paid on stock awards		(660)			(660)
Tax benefit from stock-based compensation		561			561
Dividend declaration			(10,591)		(10,591)
Net income			46,827		46,827
Balance at Dec. 31, 2015	$ 284	109,161	298,868	$ (15,862)	392,451
Balance (in shares) at Dec. 31, 2015	28,353			(1,856)
Issuance of common stock under stock incentive plans		135			135
Issuance of common stock under stock incentive plans (in shares)	11
Issuance of common stock under Employee Stock Purchase Plan		961			961
Issuance of common stock under Employee Stock Purchase Plan (in shares)	39
Stock-based compensation expense		1,049			1,049
Nonvested stock awards	$ 1	(1)
Nonvested stock awards (in shares)	62
Shares withheld for taxes paid on stock awards		(737)			(737)
Tax benefit from stock-based compensation		513			513
Dividend declaration			(9,041)		(9,041)
Net income			48,111		48,111
Balance at Dec. 31, 2016	$ 285	111,081	337,938	$ (15,862)	$ 433,442
Balance (in shares) at Dec. 31, 2016	28,465			(1,856)	28,465
Issuance of common stock under stock incentive plans	$ 2	1,748			$ 1,750
Issuance of common stock under stock incentive plans (in shares)	157
Issuance of common stock under Employee Stock Purchase Plan		1,197			1,197
Issuance of common stock under Employee Stock Purchase Plan (in shares)	47
Stock-based compensation expense		741			741
Nonvested stock awards (in shares)	40
Shares withheld for taxes paid on stock awards		(613)			(613)
Dividend declaration			(9,122)		(9,122)
Net income			54,857		54,857
Balance at Dec. 31, 2017	$ 287	$ 114,154	$ 383,673	$ (15,862)	$ 482,252
Balance (in shares) at Dec. 31, 2017	28,709			(1,856)	28,709

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash Flows from Operating Activities:
Net income	$ 54,857	$ 48,111	$ 46,827
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	11,839	10,453	8,961
Provision for doubtful accounts	1,658	360	1,097
Stock-based compensation expense	741	1,049	994
Deferred income taxes	(3,906)	3,506	2,652
Loss on disposal of fixed assets	24	92	44
Excess tax benefit from exercise of equity awards		(513)	(552)
Changes in assets and liabilities:
Accounts receivable	(39,457)	(33,835)	(64,215)
Inventories	(16,218)	12,401	(11,863)
Prepaid expenses, income tax receivables and other current assets	(2,097)	(1,274)	(285)
Other non-current assets	(4,265)	(321)	(328)
Accounts payable	15,807	(3,012)	41,324
Accrued expenses and other liabilities	337	(3,431)	6,206
Net cash provided by operating activities	19,320	33,586	30,862
Cash Flows from Investing Activities:
Purchases of equipment	(11,803)	(11,885)	(12,337)
Cash paid for acquisitions		(42,990)
Purchase of intangible assets			(450)
Net cash used for investing activities	(11,803)	(54,875)	(12,787)
Cash Flows from Financing Activities:
Dividend payment	(9,041)	(10,591)
Exercise of stock options	1,750	135	437
Issuance of stock under Employee Stock Purchase Plan	1,197	961	875
Excess tax benefit from exercise of equity awards		513	552
Payment of payroll taxes on stock-based compensation through shares withheld	(613)	(737)	(660)
Net cash (used for) provided by financing activities	(6,707)	(9,719)	1,204
Increase (decrease) in cash and cash equivalents	810	(31,008)	19,279
Cash and cash equivalents, beginning of period	49,180	80,188	60,909
Cash and cash equivalents, end of period	49,990	49,180	80,188
Non-cash Investing and Financing Activities:
Accrued capital expenditures	699	109	504
Dividend declaration	9,122	9,041	10,591
Supplemental Cash Flow Information:
Income taxes paid	$ 28,927	$ 29,740	$ 30,371

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2017
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES We are a national solutions provider of a wide range of information technology (“IT”) solutions. We help our customers design, enable, manage, and service their IT environments. We provide IT products, including computer systems, software and peripheral equipment, networking communications, and other products and accessories that we purchase from manufacturers, distributors, and other suppliers. We also offer services involving design, configuration, and implementation of IT solutions. These services are performed by our personnel and by third-party providers. We operate through three sales segments, which serve primarily: (a) small- to medium-sized businesses, in our Business Solutions segment, through our PC Connection Sales subsidiary, (b) large enterprise customers, in our Enterprise Solutions segment, through our MoreDirect and GlobalServe subsidiaries, and (c) federal, state, and local government and educational institutions, in our Public Sector Solutions segment, through our GovConnection subsidiary. The following is a summary of our significant accounting policies: Principles of Consolidation The consolidated financial statements include the accounts of PC Connection, Inc. and its subsidiaries, all of which are wholly-owned. Intercompany transactions and balances are eliminated in consolidation. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts and disclosures of assets and liabilities and the reported amounts and disclosures of revenue and expenses during the period. By nature, estimates are subject to an inherent degree of uncertainty. Actual results could differ from those estimates and assumptions. Revenue Recognition Revenue on product sales is recognized at the point in time when persuasive evidence of an arrangement exists, the price is fixed or determinable, delivery has occurred, and there is a reasonable assurance of collection of the sales proceeds. We generally obtain oral or written purchase authorizations from our customers for a specified amount of product at a specified price. Because we either (i) have a general practice of covering customer losses while products are in-transit despite title transferring at the point of shipment or (ii) have FOB–destination shipping terms specifically set out in our arrangements with federal agencies and certain commercial customers, delivery is deemed to have occurred at the point in time when the product is received by the customer. We provide our customers with a limited thirty-day right of return generally limited to defective merchandise. Revenue is recognized at delivery and a reserve for sales returns is recorded. We make reasonable and reliable estimates of product returns based on significant historical experience and record our sales reserves as a reduction of revenues and either as offsets to accounts receivable or, for customers who have already paid, as offsets to accrued expenses. At December 31, 2017, we recorded sales reserves of $3,308 and $167 as components of accounts receivable and accrued expenses, respectively. At December 31, 2016, we recorded sales reserves of $3,709 and $220 as components of accounts receivable and accrued expenses, respectively. All amounts billed to a customer in a sales transaction related to shipping and handling, if any, represent revenues earned for the goods provided, and these amounts have been classified as “net sales.” Costs related to such shipping and handling billings are classified as “cost of sales.” Sales are reported net of sales, use, or other transaction taxes that are collected from customers and remitted to taxing authorities. We use our own engineering personnel in projects involving the design and installation of systems and networks, and we also engage third-party service providers to perform warranty maintenance, implementations, asset disposals, and other services. Service revenue is recognized over time as the services are performed. We evaluate such engagements to determine whether we or the third party assumes the general risk and reward of ownership in these transactions. For those transactions in which we do not assume the risk and reward but instead act as an agent, we recognize the transaction revenue on a net basis. Under net sales recognition, the cost of the third party is recorded as a reduction to the selling price, resulting in net sales being equal to the gross profit on the transaction. In those engagements in which we are the principal and primary obligor, we report the sale on a gross basis, and the cost of the service provider is recognized in cost of goods sold. Similarly, we recognize revenue from agency sales transactions on a net sales basis. In agency sales transactions, we facilitate product sales by equipment and software manufacturers directly to our customers and receive agency, or referral, fees for such transactions. We do not take title to the products or assume any maintenance or return obligations in these transactions; title is passed directly from the supplier to our customer. Amounts recognized on a net basis included in net sales for such third-party services and agency sales transactions were $38,341, $30,234, and $24,158 for the years ended December 31, 2017, 2016, and 2015, respectively. In certain revenue arrangements, our contracts require that we provide multiple units of hardware, software, or services deliverables. Under these multiple-element arrangements, each service performed and product delivered is considered a separate deliverable and qualifies as a separate unit of accounting. For material multiple element arrangements, we allocate revenue based on vendor-specific objective evidence of fair value of the underlying services and products. If we were to enter into a multiple element arrangement in which vendor-specific objective evidence was not available, we would utilize third-party evidence to allocate the selling price. If neither vendor-specific objective evidence nor third-party evidence was available, we would estimate the selling price based on market price and company specific factors. Cost of Sales and Certain Other Costs Cost of sales includes the invoice cost of the product, direct employee and third party cost of services, direct costs of packaging, inbound and outbound freight, and provisions for inventory obsolescence, adjusted for discounts, rebates, and other vendor allowances. Cash and Cash Equivalents We consider all highly liquid short-term investments with original maturities of 90 days or less to be cash equivalents. The carrying value of our cash equivalents approximates fair value. The majority of payments due from credit card processors and banks for third-party credit card and debit card transactions process within one to five business days. All credit card and debit card transactions that process in less than seven days are classified as cash and cash equivalents. Amounts due from banks for credit card transactions classified as cash equivalents totaled $6,776 and $4,345 at December 31, 2017 and 2016, respectively. Accounts Receivable We perform ongoing credit evaluations of our customers and adjust credit limits based on payment history and customer creditworthiness. We maintain an allowance for estimated doubtful accounts based on our historical experience and the customer credit issues identified. Our customers do not post collateral for open accounts receivable. We monitor collections regularly and adjust the allowance for doubtful accounts as necessary to recognize any changes in credit exposure. Trade receivables are written off in the period in which they are deemed uncollectible. Recoveries of trade receivables previously charged are recorded when received. Inventories Inventories (all finished goods) consisting of software packages, computer systems, and peripheral equipment, are stated at cost (determined under a weighted-average cost method which approximates the first-in, first-out method) or net realizable value, whichever is lower. Inventory quantities on hand are reviewed regularly, and allowances are maintained for obsolete, slow moving, and nonsalable inventory. Vendor Consideration We receive funding from merchandise vendors for price protections, discounts, product rebates, and other programs. These allowances are treated as a reduction of the vendor’s prices and are recorded as adjustments to cost of sales or inventory, as applicable. Allowances for product rebates that require certain volumes of product sales or purchases are recorded as the related milestones are probable of being met. Advertising Costs and Vendor Consideration Costs of producing and distributing catalogs are charged to expense in the period in which the catalogs are first circulated. Other advertising costs are expensed as incurred. Vendors have the ability to place advertisements in our catalogs or fund other advertising activities for which we receive advertising consideration. This vendor consideration, to the extent that it represents specific reimbursements of incremental and identifiable costs, is offset against SG&A expenses. Advertising consideration that cannot be associated with a specific program or that exceeds the fair value of advertising expense associated with that program is classified as an offset to cost of sales. Our vendor partners generally consolidate their funding of advertising and other marketing programs, and accordingly, we classify substantially all vendor consideration as a reduction of cost of sales rather than a reduction of advertising expense. Advertising expense, which is classified as a component of SG&A expenses, totaled $14,437, $16,083, and $15,689, for the years ended December 31, 2017, 2016, and 2015, respectively. Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization is provided for financial reporting purposes over the estimated useful lives of the assets ranging from three to seven years. Computer software, including licenses and internally developed software, is capitalized and amortized over lives generally ranging from three to seven years. Depreciation is recorded using the straight-line method. Leasehold improvements and facilities under capital leases are amortized over the terms of the related leases or their useful lives, whichever is shorter, whereas for income tax reporting purposes, they are amortized over the applicable tax lives. Costs incurred to develop internal-use software during the application development stage are recorded in property and equipment at cost. External direct costs of materials and services consumed in developing or obtaining internal-use computer software and payroll-related costs for employees developing internal-use computer software projects, to the extent of their time spent directly on the project and specific to application development, are capitalized. When events or circumstances indicate a potential impairment, we evaluate the carrying value of property and equipment based upon current and anticipated undiscounted cash flows. We recognize impairment when it is probable that such estimated future cash flows will be less than the asset carrying value. Goodwill and Other Intangible Assets Our intangible assets consist of (1) goodwill, which is not subject to amortization; (2) an internet domain name, which is an indefinite-lived intangible not subject to amortization; and (3) amortizing intangibles, which consist of customer lists, trade names, and customer relationships, which are being amortized over their useful lives. Note 3 describes the annual impairment methodology that we employ on January 1 st of each year in calculating the recoverability of goodwill and non-amortizing intangibles. This same impairment test is performed at other times during the course of a year should an event occur or circumstance change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Recoverability of amortizing intangible assets is assessed only when events have occurred that may give rise to impairment. When a potential impairment has been identified, forecasted undiscounted net cash flows of the operations to which the asset relates are compared to the current carrying value of the long-lived assets present in that operation. If such cash flows are less than such carrying amounts, long-lived assets including such intangibles, are written down to their respective fair values. Concentrations Concentrations of credit risk with respect to trade account receivables are limited due to the large number of customers comprising our customer base. No single customer accounted for more than 3% of total net sales in 2017, 2016, and 2015. While no single agency of the federal government comprised more than 3% of total sales, aggregate sales to the federal government as a percentage of total net sales were 7.8%, 7.5%, and 6.7% in 2017, 2016, and 2015, respectively. Product purchases from Ingram Micro, Inc. (“Ingram”), our largest supplier, accounted for approximately 22% of our total product purchases in 2017 and 21% in both 2016 and 2015. Purchases from Synnex Corporation (“Synnex”) comprised 12%, 13%, and 15% of our total product purchases in 2017, 2016, and 2015, respectively. Purchases from HP accounted for approximately 11% of our total product purchases in 2017 and 9% in both 2016 and 2015. Purchases from Tech Data accounted for approximately 11% of our total product purchases in 2017 and 8% in both 2016 and 2015. No other vendor supplied more than 10% of our total product purchases in 2017, 2016, or 2015. We believe that, while we may experience some short-term disruption, alternative sources for products obtained directly from Ingram, Synnex, HP, and Tech Data are available to us. Products manufactured by HP represented 20% of our net sales in 2017 and 2016, and 22% in 2015. We believe that in the event we experience either a short-term or permanent disruption of supply of HP products, such disruption would likely have a material adverse effect on our results of operations and cash flows. Earnings Per Share Basic earnings per common share is computed using the weighted average number of shares outstanding. Diluted earnings per share is computed using the weighted average number of shares outstanding adjusted for the incremental shares attributable to nonvested stock units and stock options outstanding, if dilutive. The following table sets forth the computation of basic and diluted earnings per share: 2017 2016 2015 Numerator: Net income $ 54,857 $ 48,111 $ 46,827 Denominator: Denominator for basic earnings per share 26,771 26,528 26,398 Dilutive effect of employee stock awards 120 191 218 Denominator for diluted earnings per share 26,891 26,719 26,616 Earnings per share: Basic $ 2.05 $ 1.81 $ 1.77 Diluted $ 2.04 $ 1.80 $ 1.76 For the years ended December 31, 2017, 2016, and 2015, we did not exclude any outstanding nonvested stock units or stock options from the computation of diluted earnings per share because including them would have had an anti-dilutive effect. Comprehensive Income We had no items of comprehensive income, other than our net income for each of the periods presented. Recently Issued Financial Accounting Standards On May 28, 2014, the Financial Accounting Standards Board, or the FASB, issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers,” which amends the existing accounting standards for revenue recognition. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company expects to adopt the new standard using the modified retrospective method that will result in a cumulative effect adjustment as of January 1, 2018. We are in the process of determining the effect that the adoption will have on our consolidated financial statements. Based on our analysis to date, we have reached the following tentative conclusions regarding the new standard and how we expect it to affect our consolidated financial statements and related disclosures: · We believe that since substantially all of our revenue is contractual, substantially all of our revenue falls within the scope of ASU No. 2014-09, as amended. · Our hardware revenue is recognized on a gross basis upon delivery. Upon adoption of the new standard, we expect to recognize revenue at an earlier point in time than we are recognizing under current accounting standards for contracts where shipping terms are FOB shipping point. · Upon adoption of the new standard we expect recognition of certain software products, including SAAS offerings and security software, will be on a net basis. This will result in a decrease in net sales and cost of sales, but no change in gross profit. · We expect that our disclosures in our notes to our consolidated financial statements related to revenue recognition will be significantly expanded under the new standard. Our analysis and evaluation of the new standard remains to be completed due to the complexity of the new standard, the application of judgment, and the requirement for the use of estimates in applying the new standard, as well as the volume of our client portfolio and the related terms and conditions of our contracts that must be reviewed. We have not completed our final analysis of the quantitative impact of the adoption and the operation of our internal controls related to the adoption of the standard. In February 2016, the FASB issued ASU 2016-02, Leases . The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We are currently assessing the potential impact of the adoption of ASU 2016-02 on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment , which simplifies the accounting for goodwill impairments by eliminating step two from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. ASU 2017-04 also clarifies the requirements for excluding and allocating foreign currency translation adjustments to reporting units related to an entity's testing of reporting units for goodwill impairment and clarifies that an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. ASU 2017-04 is effective for us beginning January 1, 2020 for both interim and annual reporting periods. We are currently assessing the potential impact of the adoption of ASC 2017-04 on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting . The Company adopted this standard on January 1, 2017. The new standard simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. Under this guidance, a company recognizes all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement. This change eliminates the notion of the additional paid-in capital pool and reduces the complexity in accounting for excess tax benefits and tax deficiencies. The primary impact of our adoption was the recognition of excess tax benefits related to equity compensation in our provision for income taxes rather than paid-in capital, which is a change required to be applied on a prospective basis in accordance with the new guidance. There were no unrecognized excess tax benefits at implementation. Accordingly, we recorded discrete income tax benefits in the consolidated statements of income of $1,054 in the year ended December 31, 2017, for excess tax benefits related to equity compensation. The corresponding cash flows are reflected in cash provided by operating activities instead of financing activities, as was previously required. We adopted the cash flow presentation that requires presentation of excess tax benefits within operating activities on a prospective basis. Additionally, under ASU 2016-09, we have elected to continue to estimate equity award forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. Additional amendments to the accounting for income taxes and minimum statutory withholding tax requirements had no impact on our results of operations. The presentation requirements for cash flows related to employee taxes paid for withheld shares also had no impact to any of the periods presented in our consolidated statements of cash flows since such cash flows have historically been presented as a financing activity. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory , which modifies existing requirements regarding measuring inventory at the lower of cost or market. Under prior standards, the market amount required consideration of replacement cost, net realizable value (NRV), and NRV less an approximately normal profit margin. The new ASU replaces market with NRV, defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This eliminates the need to determine and consider replacement cost or NRV less an approximately normal profit margin when measuring inventory. We adopted the standard in the first quarter of 2017 and applied the provisions prospectively. The adoption of ASU 2015-11 did not have a material impact on our consolidated financial statements.

ACQUISITIONS

ACQUISITIONS	12 Months Ended
	Dec. 31, 2017
Acquisitions
Acquisitions	2. ACQUISITIONS Softmart Acquisition On May 27, 2016, we acquired substantially all of the assets of Softmart Inc. (“Softmart”), a global supplier of information technology and software services solutions. The purchase of Softmart is consistent with our strategy to expand our software services capabilities. Under the terms of the asset purchase agreement, we paid $31,899, net of cash acquired, and allocated the total purchase price to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values on the date of acquisition. The excess of the purchase price over the net assets acquired represents potential synergies from Softmart’s customer base and its assembled workforce of sales representatives and software service specialists that we acquired in the transaction. This excess of purchase price over the aggregate fair values was recorded as goodwill. We incurred $357 of transaction costs in 2016 related to the acquisition which we have reported in selling, general and administrative expenses in our consolidated statement of income for the year ended December 31, 2016. The operating results of Softmart have been included in the SMB and Large Accounts segments since the acquisition date. The revenues and income from operations were not material to our consolidated results, and accordingly, we have not presented Softmart’s revenues or operating results on a pro forma basis. The following table reflects components of the net assets acquired and liabilities assumed at fair value as of the closing date. Purchase Price Allocation Current assets $ 22,812 Fixed assets 343 Goodwill 14,314 Customer relationships 11,300 Total assets acquired 48,769 Acquired liabilities (16,252) Net assets acquired 32,517 Less cash acquired (628) Purchase price at closing, net of cash acquired $ 31,889 We recorded goodwill of $7,366 and $6,948 in our SMB and Large Account segments, respectively, and the aggregate is expected to be fully deductible for tax purposes. GlobalServe Acquisition On October 11, 2016, we acquired the outstanding common shares of GlobalServe, Inc. (“GlobalServe”), which has developed an Internet portal tool that simplifies customers’ global IT procurement. Under the terms of the stock purchase agreement, we paid $11,101, net of cash acquired. The purchase of GlobalServe allows us to service our customers’ global IT needs through this OneSource Internet portal with consistent delivery, reporting, pricing, and logistics. We allocated the total purchase price to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values on the date of acquisition and recorded the excess of purchase price over the aggregate fair values as goodwill. In 2016 we incurred $118 of transaction costs related to the acquisition which we have reported in selling, general and administrative expenses in our consolidated statement of income for the year ended December 31, 2016. We have included the operating results of GlobalServe in the Large Account segment since the acquisition date. The revenues and income from operations were not material to our consolidated results, and accordingly, we have not presented GlobalServe’s revenues or operating results on a pro forma basis. The following table reflects components of the net assets acquired and liabilities assumed at fair value as of the closing date. Purchase Price Allocation Current assets $ 1,486 Fixed assets 4,609 Goodwill 8,012 Customer relationships 900 Total assets acquired 15,007 Acquired liabilities (734) Deferred taxes and unrecognized tax benefits (2,390) Net assets acquired 11,883 Less cash acquired (782) Purchase price at closing, net of cash acquired $ 11,101 We recorded $8,012 of goodwill as a result of our acquisition of GlobalServe in our Large Account segment. None of the goodwill related to this acquisition will be deductible for tax purposes.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure
Goodwill and Other Intangible Assets	3. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill Goodwill and intangible assets with indefinite lives are subject to an annual impairment test and tested more frequently if events or circumstances occur that would indicate a potential decline in fair value. For goodwill, a two-step quantitative test is performed at a reporting unit level which requires, under the first step, that the fair value of a reporting unit is determined and compared to the reporting unit’s carrying value, including goodwill. To assess the fair value of a reporting unit, both income and market valuation approaches are used. If the fair value is determined to be less than the carrying value, the second step is performed to measure the amount, if any, of the impairment. Our annual impairment test of an indefinite-lived domain name and goodwill is set as of the first day of the year. Goodwill is held by our Large Account and SMB reporting units. The fair value of the domain name and the two reporting units each substantially exceeded the respective carrying value, and accordingly, an impairment was not identified in the annual test. We also did not identify any events or circumstances that would indicate that it is more likely than not that the carrying values of the reporting units or the domain name were in excess of the respective fair values during the year ended December 31, 2017. To determine the fair value of our reporting units, we considered operating results and future projections, as well as changes in the Company’s overall market capitalization. The significant assumptions used in our discounted cash flow analysis include: projected cash flows and profitability, the discount rate used to present value future cash flows, working capital requirements, and terminal growth rates. Cash flows and profitability assumptions include sales growth, gross margin, and SG&A growth assumptions which are generally based on historical trends. The discount rate used is a "market participant" weighted average cost of capital ("WACC"). For our computation of fair value as of January 1, 2017, we used a WACC rate of 10.7%, and estimated terminal growth rate at 3.0% and working capital requirements at 7.7% of revenues. The carrying amount of goodwill for the periods presented is detailed below: Balance at December 31, 2016 SMB Large Account Public Sector Total Goodwill, gross $ 8,539 $ 66,236 $ 7,634 $ 82,409 Accumulated impairment losses (1,173) ─ (7,634) (8,807) Net balance $ 7,366 $ 66,236 $ — $ 73,602 Balance at December 31, 2017 SMB Large Account Public Sector Total Goodwill, gross $ 8,539 $ 66,236 $ 7,634 $ 82,409 Accumulated impairment losses (1,173) ─ (7,634) (8,807) Net balance $ 7,366 $ 66,236 $ — $ 73,602 Intangible Assets At December 31, 2017, our intangible assets included a domain name for $450, which has an indefinite life and is not subject to amortization. In addition, we acquired in 2016 customer relationships from our Softmart and GlobalServe acquisitions, which will be amortized on a straight-line basis over their estimated useful lives of 10 years. Our remaining intangible assets are amortized in proportion to the estimates of the future cash flows underlying the valuation of the assets. Intangible assets and related accumulated amortization are detailed below: December 31, 2017 December 31, 2016 Estimated Gross Accumulated Net Gross Accumulated Net Useful Lives Amount Amortization Amount Amount Amortization Amount Customer list 8 $ 3,400 $ 3,143 $ 257 $ 3,400 $ 2,861 $ 539 Tradename 5 1,190 1,190 — 1,190 1,111 79 Customer relationships 10 12,200 1,882 10,318 12,200 682 11,518 Total intangible assets $ 16,790 $ 6,215 $ 10,575 $ 16,790 $ 4,654 $ 12,136 In 2017, 2016, and 2015, we recorded amortization expense of $1,561, $1,281, and $735, respectively. The estimated amortization expense relating to intangible assets in each of the five succeeding years and thereafter is as follows: For the Years Ended December 31, 2018 $ 1,462 2019 1,256 2020 1,220 2021 1,220 2022 1,220 2023 and thereafter 4,197 $ 10,575

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE	12 Months Ended
	Dec. 31, 2017
Accounts Receivable
Accounts Receivable	4. ACCOUNTS RECEIVABLE Accounts receivable consisted of the following: December 31, 2017 2016 Trade $ 398,524 $ 384,709 Vendor returns, consideration and other 57,043 33,020 Due from employees 149 173 Total gross accounts receivable 455,716 417,902 Allowances for: Sales returns (3,308) (3,709) Doubtful accounts (2,726) (2,310) Accounts receivable, net $ 449,682 $ 411,883

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2017
Property and Equipment
Property and Equipment	5. PROPERTY AND EQUIPMENT Property and equipment consisted of the following: December 31, 2017 2016 Computer software, including licenses and internally-developed software $ 58,320 $ 69,006 Furniture and equipment 33,176 31,218 Leasehold improvements 7,787 7,300 Total 99,283 107,524 Accumulated depreciation and amortization (57,792) (68,122) Property and equipment, net $ 41,491 $ 39,402 We recorded depreciation and amortization expense for property and equipment of $10,278, $9,172, and $8,226 in 2017, 2016, and 2015, respectively.

BANK BORROWINGS

BANK BORROWINGS	12 Months Ended
	Dec. 31, 2017
Bank Borrowings
Bank Borrowings	6. BANK BORROWINGS We have a $50,000 credit facility collateralized by our account receivables that expires February 10, 2022. This facility can be increased, at our option, to $80,000 for approved acquisitions or other uses authorized by the lender on substantially the same terms. Amounts outstanding under this facility bear interest at the one-month London Interbank Offered Rate (“LIBOR”), plus a spread based on our funded debt ratio, or in the absence of LIBOR, the prime rate (4.50% at December 31, 2017). The one-month LIBOR rate at December 31, 2017 was 1.56%. The credit facility includes various customary financial ratios and operating covenants, including minimum net worth and maximum funded debt ratio requirements, and default acceleration provisions. The credit facility does not include restrictions on future dividend payments. Funded debt ratio is the ratio of average outstanding advances under the credit facility to Adjusted EBITDA (Earnings Before Interest Expense, Taxes, Depreciation, Amortization, and Special Charges). The maximum allowable funded debt ratio under the agreement is 2.0 to 1.0. Decreases in our consolidated Adjusted EBITDA could limit our potential borrowing capacity under the credit facility. We had no outstanding bank borrowings at December 31, 2017 or 2016, respectively, and accordingly, the entire $50,000 facility was available for borrowings under the credit facility.

STOCKHOLDERS' EQUITY AND SHARE-

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION	12 Months Ended
	Dec. 31, 2017
Stockholders' Equity and Share-Based Compensation
Stockholders' Equity and Share-Based Compensation	7. STOCKHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION Preferred Stock Our Amended and Restated Certificate of Incorporation (the “Restated Certificate”) authorizes the issuance of up to 10,000 shares of preferred stock, $.01 par value per share (the “Preferred Stock”). Under the terms of the Restated Certificate, the Board is authorized, subject to any limitations prescribed by law, without stockholder approval, to issue by a unanimous vote such shares of Preferred Stock in one or more series. Each such series of Preferred Stock shall have such rights, preferences, privileges, and restrictions, including voting rights, dividend rights, redemption privileges, and liquidation preferences, as shall be determined by the Board. There were no preferred shares outstanding at December 31, 2017 or 2016. Share Repurchase Authorization In 2001, our Board of Directors authorized the spending of up to $15,000 to repurchase our common stock. We have considered block repurchases directly from larger stockholders, as well as open market purchases, in carrying out our ongoing stock repurchase program. We did not repurchase any shares in the three years ended December 31, 2017. As of December 31, 2017, we have repurchased an aggregate of 1,682 shares for $12,233 under our repurchase program, and the maximum approximate dollar value of shares that may yet be purchased under this program is $2,767. In 2014, our Board of Directors approved a new share repurchase program authorizing up to $15,000 in share repurchases. There is no fixed termination date for this new repurchase program. Purchases may be made in open-market transactions, block transactions on or off an exchange, or in privately negotiated transactions. We intend to complete the 2001 repurchase program before repurchasing shares under the new program. The timing and amount of any share repurchases will be based on market conditions and other factors. Dividend Payments The following table summarizes our special cash dividends declared in the three years ended December 31, 2017: 2017 2016 2015 Dividend per share $ 0.34 $ 0.34 $ 0.40 Stockholder record date 12/29/2017 12/30/2016 12/29/2015 Total dividend $ 9,122 $ 9,041 $ 10,591 Payment date 1/12/2018 1/12/2017 1/12/2016 The dividends paid in January 2017 and 2018 were included in accrued expenses and other liabilities at December 31, 2016 and 2017, respectively. We have no current plans to pay additional cash dividends on our common stock in the foreseeable future, and declaration of any future cash dividends will depend upon our financial position, strategic plans, and general business conditions. Equity Compensation Plan Descriptions In 2007, the Board adopted and our stockholders approved the 2007 Stock Incentive Plan. In 2010, the Board adopted and our stockholders approved the Amended and Restated 2007 Stock Incentive Plan (the “2007 Plan”), which among other things, extended the term of the 2007 Plan to 2020. In May 2016, our stockholders approved an amendment to the 2007 Plan, which authorized the issuance of 1,700 shares of common stock. Under the terms of the 2007 Plan, we are authorized for a ten-year period to grant options, stock appreciation rights, nonvested stock, nonvested stock units, and other stock-based awards to employees, officers, directors, and consultants. As of December 31, 2017, there were 198 shares eligible for future grants under the 2007 Plan. 1997 Employee Stock Purchase Plan In November 1997, the Board adopted and our stockholders approved the 1997 Employee Stock Purchase Plan (the “Purchase Plan”). The Purchase Plan authorizes the issuance of common stock to participating employees. Under the Purchase Plan, as amended, our employees are eligible to purchase company stock at 95% of the purchase price as of the last business day of each six-month offering period. An aggregate of 1,138 shares of common stock has been reserved for issuance under the Purchase Plan, of which 1,114 shares have been purchased. Accounting for Share-Based Compensation We measure the grant date fair value of equity awards given to employees and recognize that cost, adjusted for forfeitures, over the period that services are performed. We value grants with multiple vesting periods as a single award, estimate expected forfeitures based upon historical patterns of employee turnover, and record share-based compensation as a component of SG&A expenses. In 2016, we granted nonvested stock units. No equity awards were granted in 2015 and 2017, however, in previous years both nonvested stock awards and stock options have been granted. We employ the Black-Scholes option valuation model to assess the grant date fair value of each option grant. The application of this model requires certain key input assumptions, including expected volatility, option term, and risk-free interest rates. Expected volatility is based on the historical volatility of our common stock. The expected term of an option grant is estimated using the historical exercise behavior of employees and directors. The risk‑free interest rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve that corresponds most closely to the stock option’s expected average life. The following table summarizes the components of share-based compensation recorded as expense for the three years ended December 31, 2017: 2017 2016 2015 Pre-tax expense for nonvested units $ 741 $ 1,049 $ 994 Tax benefit (297) (420) (398) Net effect on net income $ 444 $ 629 $ 596 We have historically settled stock option exercises with newly issued common shares. The intrinsic value of options exercised in 2017, 2016, and 2015 was $2,569, $156, and $553, respectively. The following table sets forth our stock option activity in 2017: Weighted Average Weighted Remaining Aggregate Average Contractual Intrinsic Options Exercise Price Term (Years) Value Outstanding, January 1, 2017 157 $ 11.12 $ Exercised (157) 11.12 Outstanding, December 31, 2017 — $ — — $ — Vested and expected to vest — $ — — $ — In 2016, we issued nonvested stock units that settle in stock and vest over periods up to fifteen years. No awards were issued in 2015 and 2017. Recipients of nonvested stock units do not possess stockholder rights. The fair value of nonvested stock units is based on the end of day market value of our common stock on the grant date. The following table summarizes our nonvested stock unit activity in 2017: Nonvested Stock Units Weighted-Average Grant Date Shares Fair Value Nonvested at January 1, 2017 354 $ 19.34 Vested (62) 11.41 Canceled (4) 23.73 Nonvested at December 31, 2017 288 21.01 The weighted-average grant-date fair value of nonvested stock units granted in 2016 was $24.72. No awards were granted in 2015 and 2017. The total fair value of nonvested stock units that vested in 2017, 2016, and 2015 was $1,638, $2,348, and $2,287, respectively. Unearned compensation cost related to the nonvested portion of outstanding nonvested stock units was $5,283 as of December 31, 2017, and is expected to be recognized over a weighted-average period of approximately 7.1 years. Stock Equivalent Units We have also issued stock equivalent units, (“SEUs”), which settle in cash and vest ratably over four years, to non-executive employees. The fair value of these liability awards is based on the closing market price of our common stock, and is remeasured at the end of each reporting period until the SEUs vest. We report the compensation as a component of SG&A expense and the related liability as accrued payroll on the consolidated balance sheets. 2017 2016 2015 Units issued 100 23 95 Compensation expense $ 1,429 $ 1,973 $ 2,054

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2017
Income Taxes
Income Taxes	8. INCOME TAXES The provision for income taxes consisted of the following: Years Ended December 31, 2017 2016 2015 Current: Federal $ 21,813 $ 23,923 $ 23,872 State 4,861 4,913 5,116 Total current 26,674 28,836 28,988 Deferred: Federal (5,132) 2,920 2,220 State 1,226 586 432 Total deferred (3,906) 3,506 2,652 Net provision $ 22,768 $ 32,342 $ 31,640 The components of the deferred taxes at December 31, 2017 and 2016 are as follows: 2017 2016 Deferred tax assets: Provisions for doubtful accounts $ 724 $ 751 Inventory costs capitalized for tax purposes 127 157 Inventory valuation reserves 275 331 Sales return reserves 129 218 Deductible expenses, primarily employee-benefit related 357 745 Accrued compensation 981 2,662 State tax contingency 79 110 Revenue deferral 409 565 Other 796 1,076 Compensation under non-statutory stock option agreements 34 499 State tax loss carryforwards 877 618 Federal benefit for uncertain state tax positions 177 480 Total gross deferred tax assets 4,965 8,212 Less: Valuation allowance (745) (485) Net deferred tax assets 4,220 7,727 Deferred tax liabilities: Goodwill and other intangibles (12,516) (17,776) Property and equipment (7,218) (9,553) Prepaid expenses (182) — Total gross deferred tax liabilities (19,916) (27,329) Net deferred tax liability $ (15,696) $ (19,602) Current deferred tax assets $ — $ — Noncurrent deferred tax liability (15,696) (19,602) Net deferred tax liability $ (15,696) $ (19,602) We have state net operating loss carryforwards aggregating $1,110 at December 31, 2017 representing state tax benefits, net of federal taxes, of approximately $877. These loss carryforwards are subject to between five, fifteen, and twenty-year carryforward periods, with $9 expiring after 2018, $6 expiring after 2019, $5 expiring after 2020, $3 expiring after 2021, $3 expiring after 2022 and $1,084 expiring beyond 2022. We have provided valuation allowances of $745 and $485 at December 31, 2017 and 2016, respectively, against the state tax loss carryforwards, representing the portion of carryforward losses that we believe are not likely to be realized. The net change in the total valuation allowance reflects a $260, $102, and $70 increase in 2017, 2016, and 2015, respectively. The valuation allowance was increased in 2017, 2016, and 2015 to offset the corresponding increase to the deferred tax asset associated with state net operating loss carryforwards. A reconciliation of our 2017, 2016, and 2015 income tax provision to total income taxes at the statutory federal tax rate is as follows: 2017 2016 2015 Federal income taxes, at statutory tax rate $ 27,169 $ 28,159 $ 27,463 State income taxes, net of federal benefit 3,843 3,947 3,962 Nondeductible expenses (113) 602 538 Remeasurement of net deferred tax balances (7,815) — — Other–net (316) (366) (323) Tax provision $ 22,768 $ 32,342 $ 31,640 On December 22, 2017, the U.S. government enacted comprehensive tax legislation (the “Tax Act”), which significantly revises the ongoing U.S. corporate income tax law by lowering the U.S. federal corporate income tax rate from 35.0% to 21.0%, and setting limitations on deductibility of certain costs. Due to the complexities involved in accounting for the recently enacted Tax Act, the U.S. Securities and Exchange Commission’s Staff Accounting Bulletin (“SAB”) 118 requires that we include in our financial statements the reasonable estimate of the impact of the Tax Act on earnings to the extent such reasonable estimate has been determined. Accordingly, we recorded a preliminary $7.8 million in estimated tax benefit related to the change in net deferred tax liabilities stemming from the Tax Act’s reduction of the U.S. federal tax rate from 35.0% to 21.0% for the year ended December 31, 2017. The final impact on our financial statements from the Tax Act may differ due to changes in interpretations of the Tax Act, future legislative action to address questions that arise because of the Tax Act, and related interpretations in response to the Tax Act. We file one consolidated U.S. Federal income tax return that includes all of our subsidiaries as well as several consolidated, combined, and separate company returns in many U.S. state tax jurisdictions. The tax years 2013-2016 remain open to examination by the major state taxing jurisdictions in which we file. The tax years 2014-2016 remain open to examination by the Internal Revenue Service. A reconciliation of unrecognized tax benefits for 2017, 2016, and 2015, is as follows: 2017 2016 2015 Balance at January 1, $ 684 $ 869 $ 892 Additions on tax positions of prior years — — 106 Lapses of applicable statute of limitations (159) (185) (129) Settlements (157) — — Balance at December 31, $ 368 $ 684 $ 869 We recognize interest and penalties related to unrecognized income tax benefits as a component of income tax expense, and the corresponding accrual is included as a component of our liability for unrecognized income tax benefits. During the years ended December 31, 2017, 2016, and 2015, we recognized interest and penalties totaling $0, $62, and $110, respectively. At December 31, 2017 and 2016, accrued interest aggregated $481 and $693, respectively, and accrued penalties aggregated $93 and $171, respectively. As of December 31, 2017 and 2016, all unrecognized tax benefits and the related interest and penalties, if recognized, would favorably affect our effective tax rate. We do not anticipate that total unrecognized tax benefits will change significantly due to the settlement of audits, expiration of statutes of limitations, or other reasons in the next twelve months.

EMPLOYEE BENEFIT PLAN

EMPLOYEE BENEFIT PLAN	12 Months Ended
	Dec. 31, 2017
Employee Benefit Plan
Employee Benefit Plan	9. EMPLOYEE BENEFIT PLAN We have a contributory profit-sharing and employee savings plan covering all qualified employees. No contributions to the profit-sharing element of the plan were made by us in 2017, 2016, or 2015. We made matching contributions to the employee savings element of such plan of $2,396, $2,320, and $2,034 in 2017, 2016, and 2015, respectively.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies
Commitments And Contingencies	10. COMMITMENTS AND CONTINGENCIES Operating Leases We lease our corporate headquarters and an adjacent office facility from an entity controlled by our principal stockholders. The five-year operating lease for our corporate headquarters ends November 30, 2018 and has an option to renew for an additional five-year term. The operating lease for the adjacent facility began in August 2008 and has a ten-year term with the option to renew for two additional two-year terms. We also lease several other buildings from our principal stockholders on a month-to-month basis. We believe that the above operating lease transactions were consummated on terms comparable to terms we could have obtained with unrelated third parties. In addition, we lease offices from unrelated parties with remaining terms of one to ten years. Future aggregate minimum annual lease payments under these leases at December 31, 2017 are as follows: Year Ended December 31, Related Parties Others Total 2018 $ 1,302 $ 3,363 $ 4,665 2019 — 3,269 3,269 2020 — 3,338 3,338 2021 — 2,464 2,464 2022 — 1,270 1,270 2023 and thereafter — 2,215 2,215 Total rent expense aggregated $5,225, $4,753, and $4,904 for the years ended December 31, 2017, 2016, and 2015, respectively, under the terms of the operating leases described above. Such amounts included $1,647, $1,640, and $1,633 in 2017, 2016, and 2015, respectively, paid to related parties. Contingencies We are subject to various legal proceedings and claims, including patent infringement claims, which have arisen during the ordinary course of business. In the opinion of management, the outcome of such matters is not expected to have a material effect on our business, financial position, results of operations, or cash flows. We record a liability when we believe that a loss is both probable and reasonably estimable. On a quarterly basis, we review each of these legal proceedings to determine whether it is probable, reasonably possible, or remote that a liability has been incurred and, if it is at least reasonably possible, whether a range of loss can be reasonably estimated. Significant judgment is required to determine both the likelihood of there being a loss and the estimated amount of such loss. Until the final resolution of such matters, there may be an exposure to loss in excess of the amount recorded, and such amounts could be material. We expense legal fees in the period in which they are incurred. We are subject to audits by states on sales and income taxes,employment matters, and other assessments. Additional liabilities for these and other audits could be assessed, and such outcomes could have a material negative impact on our financial position, results of operations, and cash flows.

OTHER RELATED-PARTY TRANSACTION

OTHER RELATED-PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2017
Other Related Party Transactions
Other Related-Party Transactions	11. OTHER RELATED-PARTY TRANSACTIONS As described in Note 10, we lease certain facilities from related parties. Other related-party transactions include the transactions summarized below. Related parties consist primarily of affiliated companies related to us through common ownership. 2017 2016 2015 Revenue: Sales of services to affiliated companies $ 151 $ 159 $ 177

SEGMENT AND RELATED DISCLOSURES

SEGMENT AND RELATED DISCLOSURES	12 Months Ended
	Dec. 31, 2017
Segment and Related Disclosures
Segment and Related Disclosures	12. SEGMENT AND RELATED DISCLOSURES The internal reporting structure used by our chief operating decision maker (“CODM”) to assess performance and allocate resources determines the basis for our reportable operating segments. Our CODM is our Chief Executive Officer, and he evaluates operations and allocates resources based on a measure of operating income. Our operations are organized under three reporting segments—the SMB segment, which serves primarily small- and medium-sized businesses; the Large Account segment, which serves primarily medium-to-large corporations; and the Public Sector 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, marketing, and product management. Most of the operating costs associated with the Headquarters/Other group functions are charged to the operating segments based on their estimated usage of the underlying functions. We report these charges to the operating segments as “Allocations.” Certain headquarters costs relating to executive oversight and other fiduciary functions that are not allocated to the operating segments are included under the heading of Headquarters/Other in the tables below. In May 2016, we acquired Softmart. We have included the operating results for Softmart in our SMB and Large Account segments from May 27, 2016, the closing date of the acquisition. The external sales and operating results of Softmart since the date of acquisition were immaterial to our consolidated results. In October 2016, we acquired GlobalServe. We have included the operating results for GlobalServe in our Large Account segment from October 11, 2016, the closing date of the acquisition. The external sales and operating results of GlobalServe were immaterial to our consolidated results. Net sales presented below exclude inter-segment product revenues. Segment information applicable to our reportable operating segments for the years ended December 31, 2017, 2016, and 2015 is shown below: Years Ended December 31, 2017 2016 2015 Net sales: Business Solutions $ 1,158,639 $ 1,091,182 $ 1,040,586 Enterprise Solutions 1,131,823 1,011,990 961,013 Public Sector Solutions 621,421 589,420 572,374 Total net sales $ 2,911,883 $ 2,692,592 $ 2,573,973 Operating income (loss): SMB $ 40,425 $ 41,596 $ 42,855 Large Account 50,163 42,504 41,234 Public Sector 953 8,561 6,879 Headquarters/Other (14,014) (12,141) (12,414) Total operating income 77,527 80,520 78,554 Interest income (expense) 98 (67) (87) Income before taxes $ 77,625 $ 80,453 $ 78,467 Selected operating expense: Depreciation and amortization: Business Solutions $ 592 $ 425 $ 24 Enterprise Solutions 2,163 1,784 1,297 Public Sector Solutions 159 160 156 Headquarters/Other 8,925 8,084 7,484 Total depreciation and amortization $ 11,839 $ 10,453 $ 8,961 Total assets: Business Solutions $ 249,064 $ 240,665 Enterprise Solutions 413,921 361,431 Public Sector Solutions 75,531 95,278 Headquarters/Other 9,335 (11,240) Total assets $ 747,851 $ 686,134 The assets of our operating segments presented above consist primarily of accounts receivable, net intercompany receivable, goodwill, and other intangibles. Goodwill of $66,236 and $7,366 is held by our Large Account and SMB segments, respectively, as of December 31, 2017. Assets reported under the Headquarters/Other group are managed by corporate headquarters, including cash, inventory, property and equipment and intercompany balance, net. Total assets for the Headquarters/Other group are presented net of intercompany balances eliminations of $29,731 and $49,937 for the years ended December 31, 2017 and 2016, respectively. Our capital expenditures consist largely of IT hardware and software purchased to maintain or upgrade our management information systems. These systems serve all of our subsidiaries, to varying degrees, and as a result, our CODM does not evaluate capital expenditures on a segment basis. Substantially, all of our sales in 2017, 2016, and 2015 were made to customers located in the United States. Shipments to customers located in foreign countries were not more than 1% of total net sales in 2017, 2016, and 2015. All of our assets at December 31, 2017 and 2016 were located in the United States. Our primary target customers are SMBs, federal, state, and local government agencies, educational institutions, and medium-to-large corporate accounts. No single customer accounted for more than 3% of total net sales in 2017, 2016, or 2015. While no single agency of the federal government comprised more than 3% of total sales, aggregate sales to the federal government were 7.8%, 7.5%, and 6.7% in 2017, 2016, and 2015, respectively.

QUARTERLY FINANCIAL RESULTS (UN

QUARTERLY FINANCIAL RESULTS (UNAUDITED)	12 Months Ended
	Dec. 31, 2017
Quarterly Financial Results (Unaudited)
Quarterly Financial Results (Unaudited)	13. QUARTERLY FINANCIAL RESULTS (UNAUDITED) The following table sets forth certain unaudited quarterly data of the Company for each of the calendar quarters in 2017 and 2016. This information has been prepared on the same basis as the annual financial statements, and all necessary adjustments, consisting only of normal recurring adjustments, have been included in the amounts stated below to present fairly the selected quarterly information when read in conjunction with the annual financial statements and the notes thereto included elsewhere in this document. The quarterly operating results are not necessarily indicative of future results of operations. Quarters Ended March 31, June 30, September 30, December 31, 2017 2017 2017 2017 Net sales $ 670,594 $ 749,792 $ 729,230 $ 762,267 Cost of sales 583,861 650,122 633,087 662,737 Gross profit 86,733 99,670 96,143 99,530 Selling, general and administrative expenses 75,281 77,230 74,404 77,634 Income from operations 11,452 22,440 21,739 21,896 Interest income (expense) 19 9 (8) 78 Income before taxes 11,471 22,449 21,731 21,974 Income tax provision (4,039) (8,864) (8,614) (1,251) Net income $ 7,432 $ 13,585 $ 13,117 $ 20,723 Earnings per common share: Basic $ 0.28 $ 0.51 $ 0.49 $ 0.77 Diluted $ 0.28 $ 0.51 $ 0.49 $ 0.77 Weighted average common shares outstanding: Basic 26,697 26,761 26,802 26,822 Diluted 26,866 26,893 26,899 26,907 Quarters Ended March 31, June 30, September 30, December 31, 2016 2016 2016 2016 Net sales $ 572,394 $ 676,165 $ 708,485 $ 735,548 Cost of sales 490,201 582,291 611,518 637,425 Gross profit 82,193 93,874 96,967 98,123 Selling, general and administrative expenses 67,029 72,864 74,522 76,222 Income from operations 15,164 21,010 22,445 21,901 Interest expense (14) (12) (27) (14) Income before taxes 15,150 20,998 22,418 21,887 Income tax provision (6,087) (8,540) (8,825) (8,890) Net income $ 9,063 $ 12,458 $ 13,593 $ 12,997 Earnings per common share: Basic $ 0.34 $ 0.47 $ 0.51 $ 0.49 Diluted $ 0.34 $ 0.47 $ 0.51 $ 0.49 Weighted average common shares outstanding: Basic 26,499 26,501 26,542 26,569 Diluted 26,671 26,691 26,736 26,738

SCHEDULE II - VALUATION AND QUA

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS	12 Months Ended
	Dec. 31, 2017
Schedule II - Valuation and Qualifying Accounts
Schedule II-Valuation And Qualifying Accounts	SCHEDULE I (amounts in thousands) Balance at Charged to Balance at Beginning Costs and Deductions/ End of of Period Expenses Write-Offs Period Description Allowance for Sales Returns Year Ended December 31, 2015 $ 3,223 30,289 (30,277) $ 3,235 Year Ended December 31, 2016 $ 3,235 32,909 (32,435) $ 3,709 Year Ended December 31, 2017 $ 3,709 32,399 (32,800) $ 3,308 Allowance for Doubtful Accounts Year Ended December 31, 2015 $ 2,135 1,097 (1,013) $ 2,219 Year Ended December 31, 2016 $ 2,219 360 (269) $ 2,310 Year Ended December 31, 2017 $ 2,310 1,658 (1,242) $ 2,726

SUMMARY OF SIGNIFICANT ACCOUN21

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2017
Summary of Significant Accounting Policies
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of PC Connection, Inc. and its subsidiaries, all of which are wholly-owned. Intercompany transactions and balances are eliminated in consolidation.
Use of Estimates in the Preparation of Financial Statements	Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts and disclosures of assets and liabilities and the reported amounts and disclosures of revenue and expenses during the period. By nature, estimates are subject to an inherent degree of uncertainty. Actual results could differ from those estimates and assumptions.
Revenue Recognition	Revenue Recognition Revenue on product sales is recognized at the point in time when persuasive evidence of an arrangement exists, the price is fixed or determinable, delivery has occurred, and there is a reasonable assurance of collection of the sales proceeds. We generally obtain oral or written purchase authorizations from our customers for a specified amount of product at a specified price. Because we either (i) have a general practice of covering customer losses while products are in-transit despite title transferring at the point of shipment or (ii) have FOB–destination shipping terms specifically set out in our arrangements with federal agencies and certain commercial customers, delivery is deemed to have occurred at the point in time when the product is received by the customer. We provide our customers with a limited thirty-day right of return generally limited to defective merchandise. Revenue is recognized at delivery and a reserve for sales returns is recorded. We make reasonable and reliable estimates of product returns based on significant historical experience and record our sales reserves as a reduction of revenues and either as offsets to accounts receivable or, for customers who have already paid, as offsets to accrued expenses. At December 31, 2017, we recorded sales reserves of $3,308 and $167 as components of accounts receivable and accrued expenses, respectively. At December 31, 2016, we recorded sales reserves of $3,709 and $220 as components of accounts receivable and accrued expenses, respectively. All amounts billed to a customer in a sales transaction related to shipping and handling, if any, represent revenues earned for the goods provided, and these amounts have been classified as “net sales.” Costs related to such shipping and handling billings are classified as “cost of sales.” Sales are reported net of sales, use, or other transaction taxes that are collected from customers and remitted to taxing authorities. We use our own engineering personnel in projects involving the design and installation of systems and networks, and we also engage third-party service providers to perform warranty maintenance, implementations, asset disposals, and other services. Service revenue is recognized over time as the services are performed. We evaluate such engagements to determine whether we or the third party assumes the general risk and reward of ownership in these transactions. For those transactions in which we do not assume the risk and reward but instead act as an agent, we recognize the transaction revenue on a net basis. Under net sales recognition, the cost of the third party is recorded as a reduction to the selling price, resulting in net sales being equal to the gross profit on the transaction. In those engagements in which we are the principal and primary obligor, we report the sale on a gross basis, and the cost of the service provider is recognized in cost of goods sold. Similarly, we recognize revenue from agency sales transactions on a net sales basis. In agency sales transactions, we facilitate product sales by equipment and software manufacturers directly to our customers and receive agency, or referral, fees for such transactions. We do not take title to the products or assume any maintenance or return obligations in these transactions; title is passed directly from the supplier to our customer. Amounts recognized on a net basis included in net sales for such third-party services and agency sales transactions were $38,341, $30,234, and $24,158 for the years ended December 31, 2017, 2016, and 2015, respectively. In certain revenue arrangements, our contracts require that we provide multiple units of hardware, software, or services deliverables. Under these multiple-element arrangements, each service performed and product delivered is considered a separate deliverable and qualifies as a separate unit of accounting. For material multiple element arrangements, we allocate revenue based on vendor-specific objective evidence of fair value of the underlying services and products. If we were to enter into a multiple element arrangement in which vendor-specific objective evidence was not available, we would utilize third-party evidence to allocate the selling price. If neither vendor-specific objective evidence nor third-party evidence was available, we would estimate the selling price based on market price and company specific factors.
Cost of Sales and Certain Other Costs	Cost of Sales and Certain Other Costs Cost of sales includes the invoice cost of the product, direct employee and third party cost of services, direct costs of packaging, inbound and outbound freight, and provisions for inventory obsolescence, adjusted for discounts, rebates, and other vendor allowances.
Cash and Cash Equivalents	Cash and Cash Equivalents We consider all highly liquid short-term investments with original maturities of 90 days or less to be cash equivalents. The carrying value of our cash equivalents approximates fair value. The majority of payments due from credit card processors and banks for third-party credit card and debit card transactions process within one to five business days. All credit card and debit card transactions that process in less than seven days are classified as cash and cash equivalents. Amounts due from banks for credit card transactions classified as cash equivalents totaled $6,776 and $4,345 at December 31, 2017 and 2016, respectively.
Accounts Receivable	Accounts Receivable We perform ongoing credit evaluations of our customers and adjust credit limits based on payment history and customer creditworthiness. We maintain an allowance for estimated doubtful accounts based on our historical experience and the customer credit issues identified. Our customers do not post collateral for open accounts receivable. We monitor collections regularly and adjust the allowance for doubtful accounts as necessary to recognize any changes in credit exposure. Trade receivables are written off in the period in which they are deemed uncollectible. Recoveries of trade receivables previously charged are recorded when received.
Inventories	Inventories Inventories (all finished goods) consisting of software packages, computer systems, and peripheral equipment, are stated at cost (determined under a weighted-average cost method which approximates the first-in, first-out method) or net realizable value, whichever is lower. Inventory quantities on hand are reviewed regularly, and allowances are maintained for obsolete, slow moving, and nonsalable inventory.
Vendor Consideration	Vendor Consideration We receive funding from merchandise vendors for price protections, discounts, product rebates, and other programs. These allowances are treated as a reduction of the vendor’s prices and are recorded as adjustments to cost of sales or inventory, as applicable. Allowances for product rebates that require certain volumes of product sales or purchases are recorded as the related milestones are probable of being met.
Advertising Costs and Vendor consideration	Advertising Costs and Vendor Consideration Costs of producing and distributing catalogs are charged to expense in the period in which the catalogs are first circulated. Other advertising costs are expensed as incurred. Vendors have the ability to place advertisements in our catalogs or fund other advertising activities for which we receive advertising consideration. This vendor consideration, to the extent that it represents specific reimbursements of incremental and identifiable costs, is offset against SG&A expenses. Advertising consideration that cannot be associated with a specific program or that exceeds the fair value of advertising expense associated with that program is classified as an offset to cost of sales. Our vendor partners generally consolidate their funding of advertising and other marketing programs, and accordingly, we classify substantially all vendor consideration as a reduction of cost of sales rather than a reduction of advertising expense. Advertising expense, which is classified as a component of SG&A expenses, totaled $14,437, $16,083, and $15,689, for the years ended December 31, 2017, 2016, and 2015, respectively.
Property and Equipment	Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization is provided for financial reporting purposes over the estimated useful lives of the assets ranging from three to seven years. Computer software, including licenses and internally developed software, is capitalized and amortized over lives generally ranging from three to seven years. Depreciation is recorded using the straight-line method. Leasehold improvements and facilities under capital leases are amortized over the terms of the related leases or their useful lives, whichever is shorter, whereas for income tax reporting purposes, they are amortized over the applicable tax lives. Costs incurred to develop internal-use software during the application development stage are recorded in property and equipment at cost. External direct costs of materials and services consumed in developing or obtaining internal-use computer software and payroll-related costs for employees developing internal-use computer software projects, to the extent of their time spent directly on the project and specific to application development, are capitalized. When events or circumstances indicate a potential impairment, we evaluate the carrying value of property and equipment based upon current and anticipated undiscounted cash flows. We recognize impairment when it is probable that such estimated future cash flows will be less than the asset carrying value.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets Our intangible assets consist of (1) goodwill, which is not subject to amortization; (2) an internet domain name, which is an indefinite-lived intangible not subject to amortization; and (3) amortizing intangibles, which consist of customer lists, trade names, and customer relationships, which are being amortized over their useful lives. Note 3 describes the annual impairment methodology that we employ on January 1 st of each year in calculating the recoverability of goodwill and non-amortizing intangibles. This same impairment test is performed at other times during the course of a year should an event occur or circumstance change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Recoverability of amortizing intangible assets is assessed only when events have occurred that may give rise to impairment. When a potential impairment has been identified, forecasted undiscounted net cash flows of the operations to which the asset relates are compared to the current carrying value of the long-lived assets present in that operation. If such cash flows are less than such carrying amounts, long-lived assets including such intangibles, are written down to their respective fair values.
Concentrations	Concentrations Concentrations of credit risk with respect to trade account receivables are limited due to the large number of customers comprising our customer base. No single customer accounted for more than 3% of total net sales in 2017, 2016, and 2015. While no single agency of the federal government comprised more than 3% of total sales, aggregate sales to the federal government as a percentage of total net sales were 7.8%, 7.5%, and 6.7% in 2017, 2016, and 2015, respectively. Product purchases from Ingram Micro, Inc. (“Ingram”), our largest supplier, accounted for approximately 22% of our total product purchases in 2017 and 21% in both 2016 and 2015. Purchases from Synnex Corporation (“Synnex”) comprised 12%, 13%, and 15% of our total product purchases in 2017, 2016, and 2015, respectively. Purchases from HP accounted for approximately 11% of our total product purchases in 2017 and 9% in both 2016 and 2015. Purchases from Tech Data accounted for approximately 11% of our total product purchases in 2017 and 8% in both 2016 and 2015. No other vendor supplied more than 10% of our total product purchases in 2017, 2016, or 2015. We believe that, while we may experience some short-term disruption, alternative sources for products obtained directly from Ingram, Synnex, HP, and Tech Data are available to us. Products manufactured by HP represented 20% of our net sales in 2017 and 2016, and 22% in 2015. We believe that in the event we experience either a short-term or permanent disruption of supply of HP products, such disruption would likely have a material adverse effect on our results of operations and cash flows.
Earnings Per Share	Earnings Per Share Basic earnings per common share is computed using the weighted average number of shares outstanding. Diluted earnings per share is computed using the weighted average number of shares outstanding adjusted for the incremental shares attributable to nonvested stock units and stock options outstanding, if dilutive. The following table sets forth the computation of basic and diluted earnings per share: 2017 2016 2015 Numerator: Net income $ 54,857 $ 48,111 $ 46,827 Denominator: Denominator for basic earnings per share 26,771 26,528 26,398 Dilutive effect of employee stock awards 120 191 218 Denominator for diluted earnings per share 26,891 26,719 26,616 Earnings per share: Basic $ 2.05 $ 1.81 $ 1.77 Diluted $ 2.04 $ 1.80 $ 1.76 For the years ended December 31, 2017, 2016, and 2015, we did not exclude any outstanding nonvested stock units or stock options from the computation of diluted earnings per share because including them would have had an anti-dilutive effect.
Comprehensive Income	Comprehensive Income We had no items of comprehensive income, other than our net income for each of the periods presented.
Recently Issued Financial Accounting Standards	Recently Issued Financial Accounting Standards On May 28, 2014, the Financial Accounting Standards Board, or the FASB, issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers,” which amends the existing accounting standards for revenue recognition. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company expects to adopt the new standard using the modified retrospective method that will result in a cumulative effect adjustment as of January 1, 2018. We are in the process of determining the effect that the adoption will have on our consolidated financial statements. Based on our analysis to date, we have reached the following tentative conclusions regarding the new standard and how we expect it to affect our consolidated financial statements and related disclosures: · We believe that since substantially all of our revenue is contractual, substantially all of our revenue falls within the scope of ASU No. 2014-09, as amended. · Our hardware revenue is recognized on a gross basis upon delivery. Upon adoption of the new standard, we expect to recognize revenue at an earlier point in time than we are recognizing under current accounting standards for contracts where shipping terms are FOB shipping point. · Upon adoption of the new standard we expect recognition of certain software products, including SAAS offerings and security software, will be on a net basis. This will result in a decrease in net sales and cost of sales, but no change in gross profit. · We expect that our disclosures in our notes to our consolidated financial statements related to revenue recognition will be significantly expanded under the new standard. Our analysis and evaluation of the new standard remains to be completed due to the complexity of the new standard, the application of judgment, and the requirement for the use of estimates in applying the new standard, as well as the volume of our client portfolio and the related terms and conditions of our contracts that must be reviewed. We have not completed our final analysis of the quantitative impact of the adoption and the operation of our internal controls related to the adoption of the standard. In February 2016, the FASB issued ASU 2016-02, Leases . The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We are currently assessing the potential impact of the adoption of ASU 2016-02 on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment , which simplifies the accounting for goodwill impairments by eliminating step two from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. ASU 2017-04 also clarifies the requirements for excluding and allocating foreign currency translation adjustments to reporting units related to an entity's testing of reporting units for goodwill impairment and clarifies that an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. ASU 2017-04 is effective for us beginning January 1, 2020 for both interim and annual reporting periods. We are currently assessing the potential impact of the adoption of ASC 2017-04 on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting . The Company adopted this standard on January 1, 2017. The new standard simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. Under this guidance, a company recognizes all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement. This change eliminates the notion of the additional paid-in capital pool and reduces the complexity in accounting for excess tax benefits and tax deficiencies. The primary impact of our adoption was the recognition of excess tax benefits related to equity compensation in our provision for income taxes rather than paid-in capital, which is a change required to be applied on a prospective basis in accordance with the new guidance. There were no unrecognized excess tax benefits at implementation. Accordingly, we recorded discrete income tax benefits in the consolidated statements of income of $1,054 in the year ended December 31, 2017, for excess tax benefits related to equity compensation. The corresponding cash flows are reflected in cash provided by operating activities instead of financing activities, as was previously required. We adopted the cash flow presentation that requires presentation of excess tax benefits within operating activities on a prospective basis. Additionally, under ASU 2016-09, we have elected to continue to estimate equity award forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. Additional amendments to the accounting for income taxes and minimum statutory withholding tax requirements had no impact on our results of operations. The presentation requirements for cash flows related to employee taxes paid for withheld shares also had no impact to any of the periods presented in our consolidated statements of cash flows since such cash flows have historically been presented as a financing activity. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory , which modifies existing requirements regarding measuring inventory at the lower of cost or market. Under prior standards, the market amount required consideration of replacement cost, net realizable value (NRV), and NRV less an approximately normal profit margin. The new ASU replaces market with NRV, defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This eliminates the need to determine and consider replacement cost or NRV less an approximately normal profit margin when measuring inventory. We adopted the standard in the first quarter of 2017 and applied the provisions prospectively. The adoption of ASU 2015-11 did not have a material impact on our consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUN22

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2017
Summary of Significant Accounting Policies
Computation of Basic and Diluted Earnings Per Share	2017 2016 2015 Numerator: Net income $ 54,857 $ 48,111 $ 46,827 Denominator: Denominator for basic earnings per share 26,771 26,528 26,398 Dilutive effect of employee stock awards 120 191 218 Denominator for diluted earnings per share 26,891 26,719 26,616 Earnings per share: Basic $ 2.05 $ 1.81 $ 1.77 Diluted $ 2.04 $ 1.80 $ 1.76

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	12 Months Ended
	Dec. 31, 2017
Softmart
Acquisitions
Components of the net assets acquired and liabilities assumed at fair value	Purchase Price Allocation Current assets $ 22,812 Fixed assets 343 Goodwill 14,314 Customer relationships 11,300 Total assets acquired 48,769 Acquired liabilities (16,252) Net assets acquired 32,517 Less cash acquired (628) Purchase price at closing, net of cash acquired $ 31,889
GlobalServe
Acquisitions
Components of the net assets acquired and liabilities assumed at fair value	Purchase Price Allocation Current assets $ 1,486 Fixed assets 4,609 Goodwill 8,012 Customer relationships 900 Total assets acquired 15,007 Acquired liabilities (734) Deferred taxes and unrecognized tax benefits (2,390) Net assets acquired 11,883 Less cash acquired (782) Purchase price at closing, net of cash acquired $ 11,101

GOODWILL AND OTHER INTANGIBLE24

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure
Carrying Amount of Goodwill	Balance at December 31, 2016 SMB Large Account Public Sector Total Goodwill, gross $ 8,539 $ 66,236 $ 7,634 $ 82,409 Accumulated impairment losses (1,173) ─ (7,634) (8,807) Net balance $ 7,366 $ 66,236 $ — $ 73,602 Balance at December 31, 2017 SMB Large Account Public Sector Total Goodwill, gross $ 8,539 $ 66,236 $ 7,634 $ 82,409 Accumulated impairment losses (1,173) ─ (7,634) (8,807) Net balance $ 7,366 $ 66,236 $ — $ 73,602
Intangible Assets and Related Accumulated Amortization	December 31, 2017 December 31, 2016 Estimated Gross Accumulated Net Gross Accumulated Net Useful Lives Amount Amortization Amount Amount Amortization Amount Customer list 8 $ 3,400 $ 3,143 $ 257 $ 3,400 $ 2,861 $ 539 Tradename 5 1,190 1,190 — 1,190 1,111 79 Customer relationships 10 12,200 1,882 10,318 12,200 682 11,518 Total intangible assets $ 16,790 $ 6,215 $ 10,575 $ 16,790 $ 4,654 $ 12,136
Estimated Amortization Expense	For the Years Ended December 31, 2018 $ 1,462 2019 1,256 2020 1,220 2021 1,220 2022 1,220 2023 and thereafter 4,197 $ 10,575

ACCOUNTS RECEIVABLE (Tables)

ACCOUNTS RECEIVABLE (Tables)	12 Months Ended
	Dec. 31, 2017
Accounts Receivable
Accounts Receivable	December 31, 2017 2016 Trade $ 398,524 $ 384,709 Vendor returns, consideration and other 57,043 33,020 Due from employees 149 173 Total gross accounts receivable 455,716 417,902 Allowances for: Sales returns (3,308) (3,709) Doubtful accounts (2,726) (2,310) Accounts receivable, net $ 449,682 $ 411,883

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2017
Property and Equipment
Property and Equipment	December 31, 2017 2016 Computer software, including licenses and internally-developed software $ 58,320 $ 69,006 Furniture and equipment 33,176 31,218 Leasehold improvements 7,787 7,300 Total 99,283 107,524 Accumulated depreciation and amortization (57,792) (68,122) Property and equipment, net $ 41,491 $ 39,402

STOCKHOLDERS' EQUITY AND SHAR27

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION (Tables)	12 Months Ended
	Dec. 31, 2017
Dividend declared	2017 2016 2015 Dividend per share $ 0.34 $ 0.34 $ 0.40 Stockholder record date 12/29/2017 12/30/2016 12/29/2015 Total dividend $ 9,122 $ 9,041 $ 10,591 Payment date 1/12/2018 1/12/2017 1/12/2016
Components of Share-Based Compensation Recorded as Expense	2017 2016 2015 Pre-tax expense for nonvested units $ 741 $ 1,049 $ 994 Tax benefit (297) (420) (398) Net effect on net income $ 444 $ 629 $ 596
Stock Option Activity	Weighted Average Weighted Remaining Aggregate Average Contractual Intrinsic Options Exercise Price Term (Years) Value Outstanding, January 1, 2017 157 $ 11.12 $ Exercised (157) 11.12 Outstanding, December 31, 2017 — $ — — $ — Vested and expected to vest — $ — — $ —
Nonvested Stock Unit Activity	Nonvested Stock Units Weighted-Average Grant Date Shares Fair Value Nonvested at January 1, 2017 354 $ 19.34 Vested (62) 11.41 Canceled (4) 23.73 Nonvested at December 31, 2017 288 21.01
Stock Equivalent Units (SEUs)
Stock Equivalent Units	2017 2016 2015 Units issued 100 23 95 Compensation expense $ 1,429 $ 1,973 $ 2,054

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2017
Income Taxes
Provision for Income Taxes	Years Ended December 31, 2017 2016 2015 Current: Federal $ 21,813 $ 23,923 $ 23,872 State 4,861 4,913 5,116 Total current 26,674 28,836 28,988 Deferred: Federal (5,132) 2,920 2,220 State 1,226 586 432 Total deferred (3,906) 3,506 2,652 Net provision $ 22,768 $ 32,342 $ 31,640
Components of Deferred Taxes	2017 2016 Deferred tax assets: Provisions for doubtful accounts $ 724 $ 751 Inventory costs capitalized for tax purposes 127 157 Inventory valuation reserves 275 331 Sales return reserves 129 218 Deductible expenses, primarily employee-benefit related 357 745 Accrued compensation 981 2,662 State tax contingency 79 110 Revenue deferral 409 565 Other 796 1,076 Compensation under non-statutory stock option agreements 34 499 State tax loss carryforwards 877 618 Federal benefit for uncertain state tax positions 177 480 Total gross deferred tax assets 4,965 8,212 Less: Valuation allowance (745) (485) Net deferred tax assets 4,220 7,727 Deferred tax liabilities: Goodwill and other intangibles (12,516) (17,776) Property and equipment (7,218) (9,553) Prepaid expenses (182) — Total gross deferred tax liabilities (19,916) (27,329) Net deferred tax liability $ (15,696) $ (19,602) Current deferred tax assets $ — $ — Noncurrent deferred tax liability (15,696) (19,602) Net deferred tax liability $ (15,696) $ (19,602)
Reconciliation of Income Tax Provision to Total Income Taxes at Statutory Federal Tax Rate	2017 2016 2015 Federal income taxes, at statutory tax rate $ 27,169 $ 28,159 $ 27,463 State income taxes, net of federal benefit 3,843 3,947 3,962 Nondeductible expenses (113) 602 538 Remeasurement of net deferred tax balances (7,815) — — Other–net (316) (366) (323) Tax provision $ 22,768 $ 32,342 $ 31,640
Reconciliation of Unrecognized Tax Benefits	2017 2016 2015 Balance at January 1, $ 684 $ 869 $ 892 Additions on tax positions of prior years — — 106 Lapses of applicable statute of limitations (159) (185) (129) Settlements (157) — — Balance at December 31, $ 368 $ 684 $ 869

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies
Future Aggregate Minimum Annual Lease Payments Under Operating Leases	Future aggregate minimum annual lease payments under these leases at December 31, 2017 are as follows: Year Ended December 31, Related Parties Others Total 2018 $ 1,302 $ 3,363 $ 4,665 2019 — 3,269 3,269 2020 — 3,338 3,338 2021 — 2,464 2,464 2022 — 1,270 1,270 2023 and thereafter — 2,215 2,215

OTHER RELATED-PARTY TRANSACTI30

OTHER RELATED-PARTY TRANSACTIONS (Tables)	12 Months Ended
	Dec. 31, 2017
Other Related Party Transactions
Other Related-Party Transactions	2017 2016 2015 Revenue: Sales of services to affiliated companies $ 151 $ 159 $ 177

SEGMENT AND RELATED DISCLOSUR31

SEGMENT AND RELATED DISCLOSURES (Tables)	12 Months Ended
	Dec. 31, 2017
Segment and Related Disclosures
Segment Information Applicable to Reportable Operating Segments	Years Ended December 31, 2017 2016 2015 Net sales: Business Solutions $ 1,158,639 $ 1,091,182 $ 1,040,586 Enterprise Solutions 1,131,823 1,011,990 961,013 Public Sector Solutions 621,421 589,420 572,374 Total net sales $ 2,911,883 $ 2,692,592 $ 2,573,973 Operating income (loss): SMB $ 40,425 $ 41,596 $ 42,855 Large Account 50,163 42,504 41,234 Public Sector 953 8,561 6,879 Headquarters/Other (14,014) (12,141) (12,414) Total operating income 77,527 80,520 78,554 Interest income (expense) 98 (67) (87) Income before taxes $ 77,625 $ 80,453 $ 78,467 Selected operating expense: Depreciation and amortization: Business Solutions $ 592 $ 425 $ 24 Enterprise Solutions 2,163 1,784 1,297 Public Sector Solutions 159 160 156 Headquarters/Other 8,925 8,084 7,484 Total depreciation and amortization $ 11,839 $ 10,453 $ 8,961 Total assets: Business Solutions $ 249,064 $ 240,665 Enterprise Solutions 413,921 361,431 Public Sector Solutions 75,531 95,278 Headquarters/Other 9,335 (11,240) Total assets $ 747,851 $ 686,134

QUARTERLY FINANCIAL RESULTS (32

QUARTERLY FINANCIAL RESULTS (UNAUDITED) (Tables)	12 Months Ended
	Dec. 31, 2017
Quarterly Financial Results (Unaudited)
Quarterly Operating Results (Unaudited)	Quarters Ended March 31, June 30, September 30, December 31, 2017 2017 2017 2017 Net sales $ 670,594 $ 749,792 $ 729,230 $ 762,267 Cost of sales 583,861 650,122 633,087 662,737 Gross profit 86,733 99,670 96,143 99,530 Selling, general and administrative expenses 75,281 77,230 74,404 77,634 Income from operations 11,452 22,440 21,739 21,896 Interest income (expense) 19 9 (8) 78 Income before taxes 11,471 22,449 21,731 21,974 Income tax provision (4,039) (8,864) (8,614) (1,251) Net income $ 7,432 $ 13,585 $ 13,117 $ 20,723 Earnings per common share: Basic $ 0.28 $ 0.51 $ 0.49 $ 0.77 Diluted $ 0.28 $ 0.51 $ 0.49 $ 0.77 Weighted average common shares outstanding: Basic 26,697 26,761 26,802 26,822 Diluted 26,866 26,893 26,899 26,907 Quarters Ended March 31, June 30, September 30, December 31, 2016 2016 2016 2016 Net sales $ 572,394 $ 676,165 $ 708,485 $ 735,548 Cost of sales 490,201 582,291 611,518 637,425 Gross profit 82,193 93,874 96,967 98,123 Selling, general and administrative expenses 67,029 72,864 74,522 76,222 Income from operations 15,164 21,010 22,445 21,901 Interest expense (14) (12) (27) (14) Income before taxes 15,150 20,998 22,418 21,887 Income tax provision (6,087) (8,540) (8,825) (8,890) Net income $ 9,063 $ 12,458 $ 13,593 $ 12,997 Earnings per common share: Basic $ 0.34 $ 0.47 $ 0.51 $ 0.49 Diluted $ 0.34 $ 0.47 $ 0.51 $ 0.49 Weighted average common shares outstanding: Basic 26,499 26,501 26,542 26,569 Diluted 26,671 26,691 26,736 26,738

SUMMARY OF SIGNIFICANT ACCOUN33

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)segment	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Number of sales segments | segment	3
Third-party services and agency sales transactions	$ 38,341	$ 30,234	$ 24,158
Amounts due from banks for credit card transactions, classified as cash equivalents	$ 6,776	4,345
Minimum
Property and equipment, estimated useful lives	3 years
Maximum
Property and equipment, estimated useful lives	7 years
Computer Software | Minimum
Estimated useful lives	3 years
Computer Software | Maximum
Estimated useful lives	7 years
Selling, General and Administrative Expenses
Advertising expense	$ 14,437	16,083	$ 15,689
Accounts Receivable
Sale reserves	3,308	3,709
Accrued Expenses
Sale reserves	$ 167	$ 220

SUMMARY OF SIGNIFICANT ACCOUN34

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration Risk (Details) - Net Sales	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Customer | Single Customer | Maximum
Concentration risk
Percentage of total net sales	3.00%	3.00%	3.00%
Customer | Federal Government Agencies
Concentration risk
Percentage of total net sales	7.80%	7.50%	6.70%
Customer | Single Federal Government Agency | Maximum
Concentration risk
Percentage of total net sales	3.00%	3.00%	3.00%
Supplier | Ingram Micro Inc Class
Concentration risk
Percentage of product purchases	22.00%	21.00%	21.00%
Supplier | Synnex Corporation
Concentration risk
Percentage of product purchases	12.00%	13.00%	15.00%
Supplier | Other vendor suppliers | Maximum
Concentration risk
Percentage of product purchases	10.00%	10.00%	10.00%
Supplier | Hewlett Packard Company
Concentration risk
Percentage of product purchases	11.00%	9.00%	9.00%
Products manufactured by HP as a percentage of net sales	20.00%	20.00%	22.00%
Supplier | Tech Data Corporation
Concentration risk
Percentage of product purchases	11.00%	8.00%	8.00%

SUMMARY OF SIGNIFICANT ACCOUN35

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Numerator:
Net income	$ 20,723	$ 13,117	$ 13,585	$ 7,432	$ 12,997	$ 13,593	$ 12,458	$ 9,063	$ 54,857	$ 48,111	$ 46,827
Denominator:
Denominator for basic earnings per share	26,822	26,802	26,761	26,697	26,569	26,542	26,501	26,499	26,771	26,528	26,398
Dilutive effect of employee stock awards									120	191	218
Denominator for diluted earnings per share	26,907	26,899	26,893	26,866	26,738	26,736	26,691	26,671	26,891	26,719	26,616
Earnings per share:
Basic	$ 0.77	$ 0.49	$ 0.51	$ 0.28	$ 0.49	$ 0.51	$ 0.47	$ 0.34	$ 2.05	$ 1.81	$ 1.77
Diluted	$ 0.77	$ 0.49	$ 0.51	$ 0.28	$ 0.49	$ 0.51	$ 0.47	$ 0.34	$ 2.04	$ 1.80	$ 1.76
Additional Disclosure
Employee stock awards excluded from computation of diluted earnings per share									$ 0	$ 0	$ 0

SUMMARY OF SIGNIFICANT ACCOUN36

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Antidilutive Securities Excluded From Computation Of Earnings Per Share (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
New accounting pronouncements
Unrecognized excess tax benefits related to equity compensation	$ 0								$ 0
Income Tax Expense (Benefit)	$ 1,251	$ 8,614	$ 8,864	$ 4,039	$ 8,890	$ 8,825	$ 8,540	$ 6,087	22,768	$ 32,342	$ 31,640
ASU 2016-09
New accounting pronouncements
Income Tax Expense (Benefit)									$ 1,054

ACQUISITIONS - (Details)

ACQUISITIONS - (Details) - USD ($) $ in Thousands	Oct. 11, 2016	May 27, 2016	Dec. 31, 2016	Dec. 31, 2017
Components of purchase price:
Goodwill			$ 73,602	$ 73,602
Purchase price at closing, net of cash acquired			42,990
Softmart
Components of purchase price:
Current assets		$ 22,812
Fixed assets		343
Goodwill		14,314
Total assets acquired		48,769
Acquired liabilities		(16,252)
Net assets acquired		32,517
Less cash acquired		(628)
Purchase price at closing, net of cash acquired		31,889
Softmart | Customer relationships
Components of purchase price:
Intangible asset		11,300
GlobalServe
Components of purchase price:
Current assets	$ 1,486
Fixed assets	4,609
Goodwill	8,012
Total assets acquired	15,007
Acquired liabilities	(734)
Deferred taxes and unrecognized tax benefits	(2,390)
Net assets acquired	11,883
Less cash acquired	(782)
Purchase price at closing, net of cash acquired	11,101
Goodwill related to acquisition deductible for tax purposes	0
GlobalServe | Customer relationships
Components of purchase price:
Intangible asset	900
Selling, General and Administrative Expenses | Softmart
Acquisition
Transaction costs related to acquisition			357
Selling, General and Administrative Expenses | GlobalServe
Acquisition
Transaction costs related to acquisition			118
Business Solutions
Components of purchase price:
Goodwill			7,366	7,366
Business Solutions | Softmart
Components of purchase price:
Goodwill		7,366
Enterprise Solutions
Components of purchase price:
Goodwill			$ 66,236	$ 66,236
Enterprise Solutions | Softmart
Components of purchase price:
Goodwill		$ 6,948
Enterprise Solutions | GlobalServe
Components of purchase price:
Goodwill	$ 8,012

GOODWILL AND OTHER INTANGIBLE38

GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill (Details)	12 Months Ended
	Dec. 31, 2017segment
Goodwill and Intangible Assets Disclosure
Number of reporting units	2
Weighted average cost of capital rate	10.70%
Estimated terminal growth rate	3.00%
Working capital requirements	7.70%

GOODWILL AND OTHER INTANGIBLE39

GOODWILL AND OTHER INTANGIBLE ASSETS - Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Goodwill
Goodwill, gross	$ 82,409	$ 82,409
Accumulated impairment losses	(8,807)	(8,807)
Net balance	73,602	73,602
Business Solutions
Goodwill
Goodwill, gross	8,539	8,539
Accumulated impairment losses	(1,173)	(1,173)
Net balance	7,366	7,366
Enterprise Solutions
Goodwill
Goodwill, gross	66,236	66,236
Net balance	66,236	66,236
Public Sector Segment
Goodwill
Goodwill, gross	7,634	7,634
Accumulated impairment losses	$ (7,634)	$ (7,634)

GOODWILL AND OTHER INTANGIBLE40

GOODWILL AND OTHER INTANGIBLE ASSETS - Amortizable Intangible Assets and Related Accumulated Amortization (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Intangible Assets
Indefinite-lived intangible assets	$ 450
Gross Amount	16,790	$ 16,790
Accumulated Amortization	6,215	4,654
Net Amount	10,575	12,136
Amortization expense	$ 1,561	1,281	$ 735
Customer list
Intangible Assets
Estimated useful lives	8 years
Gross Amount	$ 3,400	3,400
Accumulated Amortization	3,143	2,861
Net Amount	$ 257	539
Tradename
Intangible Assets
Estimated useful lives	5 years
Gross Amount	$ 1,190	1,190
Accumulated Amortization	$ 1,190	1,111
Net Amount		79
Customer relationships
Intangible Assets
Acquired estimated useful lives	10 years
Estimated useful lives	10 years
Gross Amount	$ 12,200	12,200
Accumulated Amortization	1,882	682
Net Amount	$ 10,318	$ 11,518

GOODWILL AND OTHER INTANGIBLE41

GOODWILL AND OTHER INTANGIBLE ASSETS - Estimated Amortization Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure
2,018	$ 1,462
2,019	1,256
2,020	1,220
2,021	1,220
2,022	1,220
2023 and thereafter	4,197
Net Amount	$ 10,575	$ 12,136

ACCOUNTS RECEIVABLE (Details)

ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Accounts receivable
Trade	$ 398,524	$ 384,709
Vendor returns, consideration, and other	57,043	33,020
Due from employees	149	173
Total gross accounts receivable	455,716	417,902
Doubtful accounts	(2,726)	(2,310)
Accounts receivable, net	449,682	411,883
Accounts Receivable
Accounts receivable
Sales returns	$ (3,308)	$ (3,709)

PROPERTY AND EQUIPMENT - Summar

PROPERTY AND EQUIPMENT - Summary (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Property and Equipment
Computer software, including licenses and internally-developed software	$ 58,320	$ 69,006
Furniture and equipment	33,176	31,218
Leasehold improvements	7,787	7,300
Total	99,283	107,524
Accumulated depreciation and amortization	(57,792)	(68,122)
Property and equipment, net	$ 41,491	$ 39,402

PROPERTY AND EQUIPMENT - Deprec

PROPERTY AND EQUIPMENT - Depreciation and Amortization Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Property and Equipment
Depreciation and amortization	$ 10,278	$ 9,172	$ 8,226

BANK BORROWINGS (Detail)

BANK BORROWINGS (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Subordinated Borrowing
Line of credit, borrowing capacity	$ 50,000
Credit facility, expiration date	Feb. 10, 2022
Line of credit, maximum borrowing capacity	$ 80,000
Debt instrument, description of variable rate basis	one-month LIBOR
Debt ratio	2
Line of credit, outstanding borrowing	$ 0	$ 0
Line of credit, available for borrowing	$ 50,000	$ 50,000
Prime Rate
Subordinated Borrowing
Debt instrument, interest rate	4.50%
One-month LIBOR rate
Subordinated Borrowing
Debt instrument, interest rate	1.56%

STOCKHOLDERS' EQUITY AND SHAR46

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended			36 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2017	May 31, 2016	Dec. 31, 2014	Dec. 31, 2001
Stockholders' equity and share-based compensation
Preferred Stock, shares authorized	10,000,000	10,000,000		10,000,000
Preferred Stock, par value	$ 0.01	$ 0.01		$ 0.01
Preferred Stock, shares outstanding	0	0		0
Treasury stock, shares	1,856,000	1,856,000		1,856,000
Shares Granted	0		0
Intrinsic value options exercised	$ 2,569	$ 156	$ 553
Stock Incentive Plan 2007
Stockholders' equity and share-based compensation
Term of approved stock-based compensation plan	10 years
Shares authorized for issuance under stock incentive plan					1,700,000
Shares available for future grant	198,000			198,000
1997 Employee Stock Purchase Plan
Stockholders' equity and share-based compensation
Purchase price under employee stock purchase plan as a percentage of price as of the last day of each six month offering period	95.00%
Common stock reserved for issuance	1,138,000			1,138,000
Share purchased under employee stock purchase plan	1,114,000
Nonvested Stock Units
Stockholders' equity and share-based compensation
Granted	0		0
Weighted-average grant-date fair values of nonvested stock awards granted		$ 24.72
Total fair values of nonvested stock awards that vested	$ 1,638	$ 2,348	$ 2,287
Unearned compensation cost	$ 5,283			$ 5,283
Unrecognized compensation costs, weighted average period of recognition	7 years 1 month 6 days
Stock Equivalent Units (SEUs)
Stockholders' equity and share-based compensation
Granted	100,000	23,000	95,000
Vesting period	4 years
Share repurchase program 2001
Stockholders' equity and share-based compensation
Number of share repurchased				0
Treasury stock, shares	1,682,000			1,682,000
Amount of aggregated share repurchased	$ 12,233			$ 12,233
Maximum | Nonvested Stock Units
Stockholders' equity and share-based compensation
Vesting period		15 years
Maximum | Share repurchase program 2001
Stockholders' equity and share-based compensation
Repurchase of common stock, authorized amount							$ 15,000
Maximum approximate dollar value of shares that may yet be purchased	$ 2,767			$ 2,767
Maximum | Share repurchase program 2014
Stockholders' equity and share-based compensation
Repurchase of common stock, authorized amount						$ 15,000

STOCKHOLDERS' EQUITY AND SHAR47

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION - Dividend Payments (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Earnings Per Share
Dividend per share	$ 0.34	$ 0.34	$ 0.40
Stockholder record date	Dec. 29, 2017	Dec. 30, 2016	Dec. 29, 2015
Total dividend	$ 9,122	$ 9,041	$ 10,591
Payment date	Jan. 12, 2018	Jan. 12, 2017	Jan. 12, 2016

STOCKHOLDERS' EQUITY AND SHAR48

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION - Components of Share-Based Compensation Recorded as Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Stockholders' equity and share-based compensation
Tax benefit	$ (297)	$ (420)	$ (398)
Net effect on net income	444	629	596
Nonvested units
Stockholders' equity and share-based compensation
Pre-tax expense for nonvested units	$ 741	$ 1,049	$ 994

STOCKHOLDERS' EQUITY AND SHAR49

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION - Stock Option Activity (Details) - Stock Options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Options
Outstanding at beginning of period	157
Exercised	(157)
Outstanding at end of period		157
Weighted Average Exercise Price
Outstanding at beginning of period	$ 11.12
Exercised	$ 11.12
Outstanding at end of period		$ 11.12
Weighted Average Remaining Contractual Term (Years)
Outstanding at end of period		1 year 5 months 9 days
Aggregate Intrinsic Value
Outstanding at end of period		$ 2,670

STOCKHOLDERS' EQUITY AND SHAR50

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION - Nonvested Stock Award and Unit Activity (Details) - Nonvested Stock Units shares in Thousands	12 Months Ended
	Dec. 31, 2017$ / sharesshares
Shares
Nonvested shares beginning balance | shares	354
Vested | shares	(62)
Canceled | shares	(4)
Nonvested shares ending balance | shares	288
Weighted-Average Grant Date Fair Value
Nonvested shares beginning balance | $ / shares	$ 19.34
Vested | $ / shares	11.41
Canceled | $ / shares	23.73
Nonvested shares ending balance | $ / shares	$ 21.01

STOCKHOLDERS' EQUITY AND SHAR51

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION - Stock Equivalent Units (Details) - Stock Equivalent Units (SEUs) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Stockholders' equity and share-based compensation
Units issued	100	23	95
Compensation expense	$ 1,429	$ 1,973	$ 2,054

INCOME TAXES - Provision for In

INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Current:
Federal									$ 21,813	$ 23,923	$ 23,872
State									4,861	4,913	5,116
Total current									26,674	28,836	28,988
Deferred:
Federal									(5,132)	2,920	2,220
State									1,226	586	432
Total deferred									(3,906)	3,506	2,652
Net provision	$ 1,251	$ 8,614	$ 8,864	$ 4,039	$ 8,890	$ 8,825	$ 8,540	$ 6,087	$ 22,768	$ 32,342	$ 31,640

INCOME TAXES - Components of De

INCOME TAXES - Components of Deferred Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Deferred tax assets:
Provisions for doubtful accounts	$ 724	$ 751
Inventory costs capitalized for tax purposes	127	157
Inventory valuation reserves	275	331
Sales return reserves	129	218
Deductible expenses, primarily employee-benefit related	357	745
Accrued compensation	981	2,662
State tax contingency	79	110
Revenue deferral	409	565
Other	796	1,076
Compensation under non-statutory stock option agreements	34	499
State tax loss carryforwards	877	618
Federal benefit for uncertain state tax positions	177	480
Total gross deferred tax assets	4,965	8,212
Less: Valuation allowance	(745)	(485)
Net deferred tax assets	4,220	7,727
Deferred tax liabilities:
Goodwill and other intangibles	(12,516)	(17,776)
Property and equipment	(7,218)	(9,553)
Prepaid expenses	(182)
Total gross deferred tax liabilities.	(19,916)	(27,329)
Net deferred tax liability	(15,696)	(19,602)
Noncurrent deferred tax liability	(15,696)	(19,602)
Net deferred tax liability	$ (15,696)	$ (19,602)

INCOME TAXES - Additional Infor

INCOME TAXES - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Examination
State net operating loss carryforwards		$ 1,110
Operating loss carryforwards, state tax benefits net of federal taxes		877	$ 618
State tax credit and state tax loss carryforwards, valuation allowance		745	485
Net change in the valuation allowance related to utilization and expiration of tax carryforwards		$ 260	102	$ 70
Statutory federal income tax rate (as a percent)		35.00%
Estimated tax benefit related to remeasurement of net deferred tax		$ 7,800
Unrecognized income tax benefits, interest and penalties recognized		0	62	$ 110
Unrecognized income tax benefits, accrued interest		481	693
Unrecognized income tax benefits, accrued penalties		$ 93	$ 171
State Jurisdiction | Minimum
Income Tax Examination
Tax years remain open to examination		2,013
State Jurisdiction | Maximum
Income Tax Examination
Tax years remain open to examination		2,016
Internal Revenue Service (IRS) | Minimum
Income Tax Examination
Tax years remain open to examination		2,014
Internal Revenue Service (IRS) | Maximum
Income Tax Examination
Tax years remain open to examination		2,016
Expiring After 2018
Income Tax Examination
State net operating loss carryforwards		$ 9
Expiring After 2019
Income Tax Examination
State net operating loss carryforwards		6
Expiring After 2020
Income Tax Examination
State net operating loss carryforwards		5
Expiring After 2021
Income Tax Examination
State net operating loss carryforwards		3
Expiring After 2022
Income Tax Examination
State net operating loss carryforwards		3
Expiring Beyond 2022
Income Tax Examination
State net operating loss carryforwards		$ 1,084
Period 1
Income Tax Examination
State net operating loss carryforwards, expiration period		5 years
Period 2
Income Tax Examination
State net operating loss carryforwards, expiration period		15 years
Period 3
Income Tax Examination
State net operating loss carryforwards, expiration period		20 years
Forecast
Income Tax Examination
Statutory federal income tax rate (as a percent)	21.00%

INCOME TAXES - Reconciliation o

INCOME TAXES - Reconciliation of Income Tax Provision To Total Income Taxes At Statutory Federal Tax Rate (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Taxes
Federal income taxes, at statutory tax rate									$ 27,169	$ 28,159	$ 27,463
State income taxes, net of federal benefit									3,843	3,947	3,962
Nondeductible expenses									(113)	602	538
Remeasurement of net deferred tax balances									(7,815)
Other-net									(316)	(366)	(323)
Net provision	$ 1,251	$ 8,614	$ 8,864	$ 4,039	$ 8,890	$ 8,825	$ 8,540	$ 6,087	$ 22,768	$ 32,342	$ 31,640

INCOME TAXES - Reconciliation56

INCOME TAXES - Reconciliation Of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Taxes
Beginning balance	$ 684	$ 869	$ 892
Additions on tax positions of prior years			106
Lapses of applicable statute of limitations	(159)	(185)	(129)
Settlements	(157)
Ending balance	$ 368	$ 684	$ 869

EMPLOYEE BENEFIT PLAN (Details)

EMPLOYEE BENEFIT PLAN (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Compensation and Retirement
Employer matching contributions to employee savings	$ 2,396	$ 2,320	$ 2,034
Employer matching contributions to employee profit sharing plan	$ 0	$ 0	$ 0

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)contract	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Operating leases
Property leased from unrelated parties with remaining terms, minimum	1 year
Property leased from unrelated parties with remaining terms, maximum	10 years
Total rent expense	$ 5,225	$ 4,753	$ 4,904
Corporate headquarters
Operating leases
Operating lease term	5 years
Operating lease renewal term	5 years
Adjacent Office Facility
Operating leases
Operating lease term	10 years
Operating lease renewal term	2 years
Operating lease term, number of additional renewal option | contract	2
Related Party
Operating leases
Total rent expense	$ 1,647	$ 1,640	$ 1,633

COMMITMENTS AND CONTINGENCIES59

COMMITMENTS AND CONTINGENCIES - Future Aggregate Minimum Annual Lease Payments Under Operating Leases (Details) $ in Thousands	Dec. 31, 2017USD ($)
Operating leases
2,018	$ 4,665
2,019	3,269
2,020	3,338
2,021	2,464
2,022	1,270
2023 and thereafter	2,215
Related Parties
Operating leases
2,018	1,302
Others
Operating leases
2,018	3,363
2,019	3,269
2,020	3,338
2,021	2,464
2,022	1,270
2023 and thereafter	$ 2,215

OTHER RELATED-PARTY TRANSACTI60

OTHER RELATED-PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Other Related Party Transactions
Sales of services to affiliated companies	$ 151	$ 159	$ 177

SEGMENT AND RELATED DISCLOSUR61

SEGMENT AND RELATED DISCLOSURES - Segment Information Applicable to Reportable Operating Segments (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017USD ($)	Sep. 30, 2017USD ($)	Jun. 30, 2017USD ($)	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2017USD ($)segment	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Segment Reporting Information
Number of reportable segments | segment									3
Net sales:
Net sales	$ 762,267	$ 729,230	$ 749,792	$ 670,594	$ 735,548	$ 708,485	$ 676,165	$ 572,394	$ 2,911,883	$ 2,692,592	$ 2,573,973
Operating income (loss):
Operating income (loss)	21,896	21,739	22,440	11,452	21,901	22,445	21,010	15,164	77,527	80,520	78,554
Interest income (expense)	78	(8)	9	19	(14)	(27)	(12)	(14)	98	(67)	(87)
Income before taxes	21,974	$ 21,731	$ 22,449	$ 11,471	21,887	$ 22,418	$ 20,998	$ 15,150	77,625	80,453	78,467
Depreciation and amortization:
Depreciation and amortization									11,839	10,453	8,961
Total assets:
Total assets	747,851				686,134				747,851	686,134
Goodwill	73,602				73,602				73,602	73,602
Business Solutions
Total assets:
Goodwill	7,366				7,366				7,366	7,366
Enterprise Solutions
Total assets:
Goodwill	66,236				66,236				66,236	66,236
Operating Segments | Business Solutions
Net sales:
Net sales									1,158,639	1,091,182	1,040,586
Operating income (loss):
Operating income (loss)									40,425	41,596	42,855
Depreciation and amortization:
Depreciation and amortization									592	425	24
Total assets:
Total assets	249,064				240,665				249,064	240,665
Goodwill	7,366								7,366
Operating Segments | Enterprise Solutions
Net sales:
Net sales									1,131,823	1,011,990	961,013
Operating income (loss):
Operating income (loss)									50,163	42,504	41,234
Depreciation and amortization:
Depreciation and amortization									2,163	1,784	1,297
Total assets:
Total assets	413,921				361,431				413,921	361,431
Goodwill	66,236								66,236
Operating Segments | Public Sector Solutions
Net sales:
Net sales									621,421	589,420	572,374
Operating income (loss):
Operating income (loss)									953	8,561	6,879
Depreciation and amortization:
Depreciation and amortization									159	160	156
Total assets:
Total assets	75,531				95,278				75,531	95,278
Headquarters/Other
Operating income (loss):
Operating income (loss)									(14,014)	(12,141)	(12,414)
Depreciation and amortization:
Depreciation and amortization									8,925	8,084	$ 7,484
Total assets:
Assets net of intercompany balance eliminations	9,335				(11,240)				9,335	(11,240)
Intersegment Elimination
Total assets:
Total assets	$ (29,731)				$ (49,937)				$ (29,731)	$ (49,937)

SEGMENT AND RELATED DISCLOSUR62

SEGMENT AND RELATED DISCLOSURES - Concentration Risk (Details) - Net Sales	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Geographic Concentration Risk | Foreign | Maximum
Segment Reporting Information
Percentage of sales by segment	1.00%	1.00%	1.00%
Customer | Single Customer | Maximum
Segment Reporting Information
Percentage of sales by segment	3.00%	3.00%	3.00%
Customer | Federal Government Agencies
Segment Reporting Information
Percentage of sales by segment	7.80%	7.50%	6.70%
Customer | Single Federal Government Agency | Maximum
Segment Reporting Information
Percentage of sales by segment	3.00%	3.00%	3.00%

QUARTERLY FINANCIAL RESULTS (63

QUARTERLY FINANCIAL RESULTS (UNAUDITED) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Quarterly Financial Results (Unaudited).
Net sales	$ 762,267	$ 729,230	$ 749,792	$ 670,594	$ 735,548	$ 708,485	$ 676,165	$ 572,394	$ 2,911,883	$ 2,692,592	$ 2,573,973
Cost of sales	662,737	633,087	650,122	583,861	637,425	611,518	582,291	490,201	2,529,807	2,321,435	2,232,954
Gross profit	99,530	96,143	99,670	86,733	98,123	96,967	93,874	82,193	382,076	371,157	341,019
Selling, general and administrative expenses	77,634	74,404	77,230	75,281	76,222	74,522	72,864	67,029	304,549	290,637	262,465
Income from operations	21,896	21,739	22,440	11,452	21,901	22,445	21,010	15,164	77,527	80,520	78,554
Interest income (expense)	78	(8)	9	19	(14)	(27)	(12)	(14)	98	(67)	(87)
Income before taxes	21,974	21,731	22,449	11,471	21,887	22,418	20,998	15,150	77,625	80,453	78,467
Income tax provision	(1,251)	(8,614)	(8,864)	(4,039)	(8,890)	(8,825)	(8,540)	(6,087)	(22,768)	(32,342)	(31,640)
Net income	$ 20,723	$ 13,117	$ 13,585	$ 7,432	$ 12,997	$ 13,593	$ 12,458	$ 9,063	$ 54,857	$ 48,111	$ 46,827
Earnings per common share:
Basic	$ 0.77	$ 0.49	$ 0.51	$ 0.28	$ 0.49	$ 0.51	$ 0.47	$ 0.34	$ 2.05	$ 1.81	$ 1.77
Diluted	$ 0.77	$ 0.49	$ 0.51	$ 0.28	$ 0.49	$ 0.51	$ 0.47	$ 0.34	$ 2.04	$ 1.80	$ 1.76
Denominator:
Basic	26,822	26,802	26,761	26,697	26,569	26,542	26,501	26,499	26,771	26,528	26,398
Diluted	26,907	26,899	26,893	26,866	26,738	26,736	26,691	26,671	26,891	26,719	26,616

SCHEDULE II - VALUATION AND Q64

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Allowance for Sales Returns
Valuation and Qualifying Accounts
Beginning Balance	$ 3,709	$ 3,235	$ 3,223
Charged to Costs and Expenses	32,399	32,909	30,289
Deductions/Write-Offs	(32,800)	(32,435)	(30,277)
Ending Balance	3,308	3,709	3,235
Allowance for Doubtful Accounts
Valuation and Qualifying Accounts
Beginning Balance	2,310	2,219	2,135
Charged to Costs and Expenses	1,658	360	1,097
Deductions/Write-Offs	(1,242)	(269)	(1,013)
Ending Balance	$ 2,726	$ 2,310	$ 2,219