PC Connection (CNXN) 10-Q 1 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Jul. 29, 2019
Document And Entity Information
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Entity Registrant Name	PC CONNECTION INC
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		26,318,073
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001050377
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current Assets:
Cash and cash equivalents	$ 69,739	$ 91,703
Accounts receivable, net	500,912	447,698
Inventories, net	175,904	119,195
Income taxes receivable	56	922
Prepaid expenses and other current assets	7,054	9,661
Total current assets	753,665	669,179
Property and equipment, net	59,468	51,799
Right-of-use assets, net	15,169
Goodwill	73,602	73,602
Intangibles assets, net	8,918	9,564
Other assets	980	1,211
Total Assets	911,802	805,355
Current Liabilities:
Accounts payable	260,162	201,640
Accrued payroll	26,037	24,319
Accrued expenses and other liabilities	35,036	33,840
Total current liabilities	321,235	259,799
Deferred income taxes	17,194	17,184
Operating lease liability	11,727
Other liabilities	1,479	2,469
Total Liabilities	351,635	279,452
Stockholders' Equity:
Common stock	288	288
Additional paid-in capital	117,212	115,842
Retained earnings	477,405	441,010
Treasury stock, at cost	(34,738)	(31,237)
Total Stockholders' Equity	560,167	525,903
Total Liabilities and Stockholders' Equity	$ 911,802	$ 805,355

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Condensed Consolidated Statements of Income
Net sales	$ 741,076	$ 706,570	$ 1,373,997	$ 1,331,465
Cost of sales	624,089	599,102	1,157,663	1,127,625
Gross profit	116,987	107,468	216,334	203,840
Selling, general and administrative expenses	84,664	82,521	165,899	163,421
Restructuring and other charges			703	0
Income from operations	32,323	24,947	49,732	40,419
Interest income, net	184	182	382	298
Income before taxes	32,507	25,129	50,114	40,717
Income tax provision	(8,839)	(6,903)	(13,719)	(11,191)
Net income	$ 23,668	$ 18,226	$ 36,395	$ 29,526
Earnings per common share:
Basic	$ 0.90	$ 0.68	$ 1.38	$ 1.10
Diluted	$ 0.89	$ 0.68	$ 1.37	$ 1.10
Shares used in computation of earnings per common share:
Basic	26,337	26,685	26,348	26,760
Diluted	26,494	26,820	26,506	26,868

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings	Treasury Stock	Total
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)
Stock-based compensation expense		207			207
Repurchases of common stock for treasury				$ (2,997)	(2,997)
Repurchase of common stock for treasury (in shares)				(116)
Net income			11,300		11,300
Balance at Mar. 31, 2018	$ 287	114,361	396,170	$ (18,859)	491,959
Balance (in shares) at Mar. 31, 2018	28,709			(1,972)
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)
Net income					29,526
Balance at Jun. 30, 2018	$ 287	115,224	414,396	$ (20,246)	509,661
Balance (in shares) at Jun. 30, 2018	28,728			(2,026)
Cumulative effect of adoption of ASC 606			1,197		1,197
Balance at Mar. 31, 2018	$ 287	114,361	396,170	$ (18,859)	491,959
Balance (in shares) at Mar. 31, 2018	28,709			(1,972)
Issuance of common stock under Employee Stock Purchase Plan		605			605
Issuance of common stock under Employee Stock Purchase Plan (in shares)	19
Stock-based compensation expense		258			258
Repurchases of common stock for treasury				$ (1,387)	(1,387)
Repurchase of common stock for treasury (in shares)				(54)
Net income			18,226		18,226
Balance at Jun. 30, 2018	$ 287	115,224	414,396	$ (20,246)	509,661
Balance (in shares) at Jun. 30, 2018	28,728			(2,026)
Balance at Dec. 31, 2018	$ 288	115,842	441,010	$ (31,237)	525,903
Balance (in shares) at Dec. 31, 2018	28,787			(2,391)
Issuance of common stock under Employee Stock Purchase Plan		(13)			(13)
Stock-based compensation expense		269			269
Restricted stock units vested (in shares)	3
Repurchases of common stock for treasury				$ (1,294)	(1,294)
Repurchase of common stock for treasury (in shares)				(43)
Net income			12,727		12,727
Balance at Mar. 31, 2019	$ 288	116,098	453,737	$ (32,531)	537,592
Balance (in shares) at Mar. 31, 2019	28,790			(2,434)
Balance at Dec. 31, 2018	$ 288	115,842	441,010	$ (31,237)	525,903
Balance (in shares) at Dec. 31, 2018	28,787			(2,391)
Net income					36,395
Balance at Jun. 30, 2019	$ 288	117,212	477,405	$ (34,738)	560,167
Balance (in shares) at Jun. 30, 2019	28,818			(2,500)
Balance at Mar. 31, 2019	$ 288	116,098	453,737	$ (32,531)	537,592
Balance (in shares) at Mar. 31, 2019	28,790			(2,434)
Issuance of common stock under Employee Stock Purchase Plan		622			622
Issuance of common stock under Employee Stock Purchase Plan (in shares)	19
Stock-based compensation expense		564			564
Restricted stock units vested (in shares)	9
Shares withheld for taxes paid on stock awards		(72)			(72)
Repurchases of common stock for treasury				$ (2,207)	(2,207)
Repurchase of common stock for treasury (in shares)				(66)
Net income			23,668		23,668
Balance at Jun. 30, 2019	$ 288	$ 117,212	$ 477,405	$ (34,738)	$ 560,167
Balance (in shares) at Jun. 30, 2019	28,818			(2,500)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash Flows provided by Operating Activities:
Net income	$ 36,395	$ 29,526
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	7,077	6,729
Provision for doubtful accounts	(346)	694
Stock-based compensation expense	833	465
Deferred income taxes	10	429
Loss on disposal of fixed assets	118
Changes in assets and liabilities:
Accounts receivable	(52,868)	1,452
Inventories	(56,709)	(11,565)
Prepaid expenses, income tax receivables and other current assets	3,473	2,326
Other non-current assets	231	(1,997)
Accounts payable	58,181	6,163
Accrued expenses and other liabilities	6,934	7,296
Net cash provided by operating activities	3,329	41,518
Cash Flows used in Investing Activities:
Purchases of equipment	(13,877)	(9,927)
Net cash used in investing activities	(13,877)	(9,927)
Cash Flows used in Financing Activities:
Proceeds from short-term borrowings		859
Repayment of short-term borrowings		(859)
Purchase of treasury shares	(3,501)	(4,384)
Dividend payment	(8,452)	(9,122)
Issuance of stock under Employee Stock Purchase Plan	609	605
Payment of payroll taxes on stock-based compensation through shares withheld	(72)
Net cash used in financing activities	(11,416)	(12,901)
(Decrease) increase in cash and cash equivalents	(21,964)	18,690
Cash and cash equivalents, beginning of year	91,703	49,990
Cash and cash equivalents, end of year	69,739	68,680
Non-cash Investing and Financing Activities:
Accrued capital expenditures	2,081	1,281
Supplemental Cash Flow Information:
Income taxes paid	$ 11,962	$ 8,309

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2019
Summary of Significant Accounting Policies
Basis of Presentation	Note 1–Basis of Presentation The accompanying unaudited condensed consolidated financial statements of PC Connection, Inc. and its subsidiaries (the “Company,” “we,” “us,” or “our”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission regarding interim financial reporting and in accordance with accounting principles generally accepted in the United States of America. Such principles were applied on a basis consistent with the accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2018, filed with the Securities and Exchange Commission (the “SEC”), other than the adoption of Accounting Standards Update (“ASU”) No. 2016-02, Leases (“ASC 842”) using a modified retrospective approach as of January 1, 2018, as discussed below. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements contained in our Annual Report on Form 10-K. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the results of operations for the interim periods reported and of the Company’s financial condition as of the date of the interim balance sheet. The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated through the date of issuance of these financial statements. The operating results for the three and six months ended June 30, 2019 may not be indicative of the results expected for any succeeding quarter or the entire year ending December 31, 2019. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the amounts reported in the accompanying condensed consolidated financial statements. Actual results could differ from those estimates. Comprehensive Income We had no items of comprehensive income, other than our net income for each of the periods presented. Restructuring and other charges Six months ended June 30, 2019 Employee separations $ 553 Lease termination costs 150 Total restructuring and other charges $ 703 The restructuring and other charges were recorded in the first quarter of 2019 and were related to a reduction in workforce in our Headquarters/Other group and included cash severance and other related benefits. These costs will be paid within a year of termination and any unpaid balances are included in accrued expenses at June 30, 2019. Also included were exit costs incurred associated with the closing of one of our office facilities. All planned restructuring and other charges were incurred as of March 31, 2019 and we have no ongoing restructuring plans. There were no restructuring and other charges recorded during the six months ended June 30, 2018. Adoption of Recently Issued Accounting Standards In February 2016, the Financial Accounting Standards Board, or the FASB, issued ASC 842 - Leases , which amended the accounting standards for leases. The core principle of the guidance is that an entity should establish 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. The Company adopted ASC 842 effective January 1, 2019 using a modified retrospective transition approach to each lease that existed as of the adoption date and any leases entered into after that date. We elected the package of practical expedients which permits us to not reassess (1) whether any expired or existing contracts are or contain leases, (2) the lease classification of any expired or existing leases, and (3) any initial direct costs for any existing leases as of the effective date. The Company also elected the hindsight practical expedient, which allows it to use hindsight in determining the lease term. The adoption did not result in a cumulative adjustment to opening equity. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. In assessing the impact of the adoption, the Company elected to apply the short-team lease exception to any leases with contractual obligations of one year or less. These leases will continue to be treated as operating leases in accordance with the new accounting standard. Consequently, the adoption resulted in the capitalization of a number of the Company’s office leases as of January 1, 2019, for which it recognized a lease liability of $18,835, which was based on the present value of the future payments for these leases. The Company recorded a corresponding right-of-use asset of $18,723, which was adjusted for $114 of remaining unamortized lease incentives as of December 31, 2018. Only those components that were considered integral to the right to use an underlying asset were considered lease components when determining the amounts to capitalize. In accordance with ASC 842, the discount rates used in the present value calculations for each lease should be the rates implicit in the lease, if readily available. Since none of the lease agreements contain explicit discount rates, the Company utilized estimated rates that it would have incurred to borrow, over a similar term, the funds necessary to purchase the respective leased asset with cash. The remaining contractual term for these leases as of January 1, 2019 ranged from 20 to 197 months. Options to renew were considered in determining the present value of the future lease payments in the event the Company believed it was reasonably certain it will assert its respective options to renew. The Company leases certain facilities from a related party, which is a company affiliated with us through common ownership. Included in the right-of-use asset as of June 30, 2019 was $5,998 and a corresponding lease liability of $5,350 associated with related party leases. During the second quarter of 2019, the Company closed one of its office facilities, resulting in the disposal of the net ROU lease asset of $575. The corresponding lease liability of $596 was also removed, which resulted in a $21 gain on disposal. As of June 30, 2019, the Company had no leases that were classified as financing leases and there were no additional operating or financing leases that have not yet commenced. Refer to the following table for quantitative information related to the Company’s leases: Three months ended June 30, 2019 Six months ended June 30, 2019 Related Parties Others Total Related Parties Others Total Lease Cost Capitalized operating lease cost $ 379 $ 792 $ 1,171 $ 758 $ 1,623 $ 2,381 Short-term lease cost 41 2 43 82 4 86 Total lease cost $ 420 $ 794 $ 1,214 $ 840 $ 1,627 $ 2,467 Other Information Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: Operating cash flows $ 379 $ 870 $ 1,249 $ 758 $ 1,754 $ 2,512 Weighted-average remaining lease term (in years): Capitalized operating leases 4.35 10.69 8.58 Weighted-average discount rate: Capitalized operating leases As of June 30, 2019, future lease payments over the remaining term of capitalized operating leases were as follows: For the Years Ended December 31, Related Parties Others Total 2019, excluding the six months ended June 30, 2019 $ 758 $ 1,667 $ 2,425 2020 1,385 3,382 4,767 2021 1,253 2,482 3,735 2022 1,253 1,484 2,737 2023 1,149 1,034 2,183 2024 — 1,043 1,043 Thereafter — 583 583 $ 5,798 $ 11,675 $ 17,473 Imputed interest (1,383) Lease liability balance at June 30, 2019 $ 16,090 Future aggregate minimum annual lease payments as of December 31, 2018 reported in our 2018 Form 10-K under the previous lease accounting standard were as follows: For the Years Ended December 31, Related Parties Others Total 2019 $ 1,516 $ 3,519 $ 5,035 2020 1,407 3,386 4,793 2021 1,253 2,466 3,719 2022 1,253 1,490 2,743 2023 1,149 820 1,969 2024 and thereafter — 1,395 1,395 $ 6,578 $ 13,076 $ 19,654 As of June 30, 2019, the ROU asset had a net balance of $15,169. The long-term lease liability was $11,727 and the short-term lease liability, which is included in accrued expenses and other liabilities in the consolidated balance sheets, was $4,363. Recently Issued Financial Accounting Standards 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. The new standard is effective for fiscal years beginning January 1, 2020 for both interim and annual reporting periods. The Company expects to adopt this new standard in 2019 when it performs its annual goodwill impairment test in the fourth quarter. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses, which adds an impairment model for financial instruments, including trade receivables, that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of lifetime expected losses, which is expected to result in more timely recognition of such losses. The new standard is effective for fiscal years beginning after December 15, 2019 for both interim and annual reporting periods. The Company is currently evaluating the requirements of this ASU and has not yet determined the impact on its consolidated financial results.

REVENUE

REVENUE	6 Months Ended
	Jun. 30, 2019
Revenue
Revenue	Note 2–Revenue We disaggregate revenue from our arrangements with customers by type of products and services, as we believe this method best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The following tables represent a disaggregation of revenue from arrangements with customers for the three months ended June 30, 2019 and 2018, along with the reportable segment for each category. Three Months Ended June 30, 2019 Business Enterprise Public Sector Total Notebooks/Mobility $ 80,422 $ 96,842 $ 34,691 $ 211,955 Desktops 34,787 39,277 18,688 92,752 Software 39,259 35,739 20,885 95,883 Servers/Storage 29,383 14,737 20,157 64,277 Net/Com Products 23,367 12,572 15,079 51,018 Displays and Sound 20,866 26,236 14,291 61,393 Accessories 23,677 59,540 10,922 94,139 Other Hardware/Services 19,291 33,096 17,272 69,659 Total net sales $ 271,052 $ 318,039 $ 151,985 $ 741,076 Three Months Ended June 30, 2018 (1) Business Enterprise Public Sector Total Notebooks/Mobility $ 81,999 $ 68,545 $ 35,261 $ 185,805 Desktops 28,399 30,006 18,762 77,167 Software 38,375 37,363 11,043 86,781 Servers/Storage 27,303 24,295 16,499 68,097 Net/Com Products 29,140 20,124 11,115 60,379 Displays and Sound 20,565 34,449 16,627 71,641 Accessories 25,055 51,596 11,757 88,408 Other Hardware/Services 19,206 34,687 14,399 68,292 Total net sales $ 270,042 $ 301,065 $ 135,463 $ 706,570 (1) Product categories were separated into additional categories in 2019. Certain prior-year balances have been classified to conform with the new presentation. The following table represents a disaggregation of revenue from arrangements with customers for the six months ended June 30, 2019 and 2018, along with the reportable segment for each category. Six Months Ended June 30, 2019 Business Enterprise Public Sector Total Notebooks/Mobility $ 161,357 $ 163,407 $ 62,066 $ 386,830 Desktops 61,571 75,246 29,575 166,392 Software 73,947 63,515 30,157 167,619 Servers/Storage 55,100 32,162 32,573 119,835 Net/Com Products 45,606 27,200 25,223 98,029 Displays and Sound 41,198 53,171 24,170 118,539 Accessories 45,730 116,055 20,567 182,352 Other Hardware/Services 39,475 62,918 32,008 134,401 Total net sales $ 523,984 $ 593,674 $ 256,339 $ 1,373,997 Six Months Ended June 30, 2018 (1) Business Enterprise Public Sector Total Notebooks/Mobility $ 153,728 $ 131,983 $ 59,159 $ 344,870 Desktops 56,690 61,232 28,836 146,758 Software 72,799 65,804 17,906 156,509 Servers/Storage 58,804 48,838 33,638 141,280 Net/Com Products 56,166 32,492 23,873 112,531 Displays and Sound 43,875 56,454 26,098 126,427 Accessories 50,072 90,565 21,579 162,216 Other Hardware/Services 41,186 70,941 28,747 140,874 Total net sales $ 533,320 $ 558,309 $ 239,836 $ 1,331,465 (1) Product categories were separated into additional categories in 2019. Certain prior-year balances have been classified to conform with the new presentation. Contract Balances The following table provides information about contract liability from arrangements with customers as of June 30, 2019 and December 31, 2018. June 30, 2019 December 31, 2018 Contract liability, which are included in "Accrued expenses and other liabilities" $ 4,724 $ 2,679 Changes in the contract liability balances during the three and six months ended June 30, 2019 are as follows (in thousands): Three Months Ended June 30, Balances at March 31, 2019 $ 4,692 Cash received in advance and not recognized as revenue 2,511 Amounts recognized as revenue as performance obligations satisfied (2,479) Balances at June 30, 2019 $ 4,724 Six Months Ended June 30, Balances at December 31, 2018 $ 2,679 Cash received in advance and not recognized as revenue 7,168 Amounts recognized as revenue as performance obligations satisfied (5,123) Balances at June 30, 2019 $ 4,724

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2019
Earnings Per Share
Earnings Per Share	Note 3–Earnings Per Share Basic earnings per common share is computed using the weighted average number of shares outstanding. Diluted earnings per share is computed using the weighted average number of shares outstanding adjusted for the incremental shares attributable to non-vested stock units and stock options outstanding, if dilutive. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Numerator: Net income $ 23,668 $ 18,226 $ 36,395 $ 29,526 Denominator: Denominator for basic earnings per share 26,337 26,685 26,348 26,760 Dilutive effect of unvested employee stock awards 157 135 158 108 Denominator for diluted earnings per share 26,494 26,820 26,506 26,868 Earnings per share: Basic $ 0.90 $ 0.68 $ 1.38 $ 1.10 Diluted $ 0.89 $ 0.68 $ 1.37 $ 1.10 For the three and six months ended June 30, 2019 and 2018, we had no outstanding non-vested stock units that were excluded from the computation of diluted earnings per share because including them would have had an anti-dilutive effect.

SEGMENT AND RELATED DISCLOSURES

SEGMENT AND RELATED DISCLOSURES	6 Months Ended
	Jun. 30, 2019
Segment and Related Disclosures
Segment and Related Disclosures	Note 4–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 reportable segments—the Business Solutions segment, which serves primarily small- and medium-sized businesses; the Enterprise Solutions segment, which serves primarily medium-to-large corporations; and the Public Sector Solutions segment, which serves primarily federal, state, and local governmental and educational institutions. In addition, the Headquarters/Other group provides services in areas such as finance, human resources, information technology, marketing, and product management. Most of the operating costs associated with the Headquarters/Other group functions are charged to the operating segments based on their estimated usage of the underlying functions. 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. Segment information applicable to our reportable operating segments for the three and six months ended June 30, 2019 and 2018 is shown below: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net sales: Business Solutions $ 271,052 $ 270,042 $ 523,984 $ 533,320 Enterprise Solutions 318,039 301,065 593,674 558,309 Public Sector Solutions 151,985 135,463 256,339 239,836 Total net sales $ 741,076 $ 706,570 $ 1,373,997 $ 1,331,465 Operating income: Business Solutions $ 16,211 $ 10,648 $ 24,976 $ 20,130 Enterprise Solutions 19,108 17,291 34,581 29,969 Public Sector Solutions 661 514 (2,405) (2,611) Headquarters/Other (3,657) (3,506) (7,420) (7,069) Total operating income 32,323 24,947 49,732 40,419 Interest income, net 184 182 382 298 Income before taxes $ 32,507 $ 25,129 $ 50,114 $ 40,717 Selected operating expense: Depreciation and amortization: Business Solutions $ 148 $ 154 $ 298 $ 328 Enterprise Solutions 606 563 1,245 1,045 Public Sector Solutions 25 32 46 66 Headquarters/Other 2,589 2,679 5,488 5,290 Total depreciation and amortization $ 3,368 $ 3,428 $ 7,077 $ 6,729 Total assets: Business Solutions $ 291,912 $ 261,419 Enterprise Solutions 506,086 447,911 Public Sector Solutions 80,461 68,679 Headquarters/Other 33,343 2,945 Total assets $ 911,802 $ 780,954 The assets of our three operating segments presented above consist primarily of accounts receivable, net intercompany receivable, goodwill, and other intangibles. Assets reported under the Headquarters/Other group are managed by corporate headquarters, including cash, inventory, property and equipment, right-of-use assets, and intercompany balance, net. As of June 30, 2019 and 2018, total assets for the Headquarters/Other group are presented net of intercompany balance eliminations of $25,093 and $22,882, respectively. Our capital expenditures consist largely of IT hardware and software purchased to maintain or upgrade our management information systems. These information systems serve all of our segments, to varying degrees, and accordingly, our CODM does not evaluate capital expenditures on a segment basis.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2019
Commitments and Contingencies
Commitments And Contingencies	Note 5–Commitments and 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 financial position, results of operations, and/or cash flows. 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/or cash flows.

BANK CREDIT FACILITY

BANK CREDIT FACILITY	6 Months Ended
	Jun. 30, 2019
Bank Credit Facility
Bank Credit Facility	Note 6–Bank Credit Facility 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 permitted 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”) (2.40% at June 30, 2019), plus a spread based on our funded debt ratio, or in the absence of LIBOR, the prime rate (5.50% at June 30, 2019). 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 June 30, 2019 or 2018, and accordingly, the entire $50,000 facility was available for borrowings under the credit facility.

BASIS OF PRESENTATION (Tables)

BASIS OF PRESENTATION (Tables)	6 Months Ended
	Jun. 30, 2019
Summary of Significant Accounting Policies
Schedule of restructuring and other charges	Six months ended June 30, 2019 Employee separations $ 553 Lease termination costs 150 Total restructuring and other charges $ 703
Schedule of lease cost	Three months ended June 30, 2019 Six months ended June 30, 2019 Related Parties Others Total Related Parties Others Total Lease Cost Capitalized operating lease cost $ 379 $ 792 $ 1,171 $ 758 $ 1,623 $ 2,381 Short-term lease cost 41 2 43 82 4 86 Total lease cost $ 420 $ 794 $ 1,214 $ 840 $ 1,627 $ 2,467 Other Information Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: Operating cash flows $ 379 $ 870 $ 1,249 $ 758 $ 1,754 $ 2,512 Weighted-average remaining lease term (in years): Capitalized operating leases 4.35 10.69 8.58 Weighted-average discount rate: Capitalized operating leases
Schedule of future lease payments on capitalized operating leases	As of June 30, 2019, future lease payments over the remaining term of capitalized operating leases were as follows: For the Years Ended December 31, Related Parties Others Total 2019, excluding the six months ended June 30, 2019 $ 758 $ 1,667 $ 2,425 2020 1,385 3,382 4,767 2021 1,253 2,482 3,735 2022 1,253 1,484 2,737 2023 1,149 1,034 2,183 2024 — 1,043 1,043 Thereafter — 583 583 $ 5,798 $ 11,675 $ 17,473 Imputed interest (1,383) Lease liability balance at June 30, 2019 $ 16,090 Future aggregate minimum annual lease payments as of December 31, 2018 reported in our 2018 Form 10-K under the previous lease accounting standard were as follows: For the Years Ended December 31, Related Parties Others Total 2019 $ 1,516 $ 3,519 $ 5,035 2020 1,407 3,386 4,793 2021 1,253 2,466 3,719 2022 1,253 1,490 2,743 2023 1,149 820 1,969 2024 and thereafter — 1,395 1,395 $ 6,578 $ 13,076 $ 19,654

REVENUE (Tables)

REVENUE (Tables)	6 Months Ended
	Jun. 30, 2019
Revenue
Schedule of disaggregation of revenue from contracts with customers	The following tables represent a disaggregation of revenue from arrangements with customers for the three months ended June 30, 2019 and 2018, along with the reportable segment for each category. Three Months Ended June 30, 2019 Business Enterprise Public Sector Total Notebooks/Mobility $ 80,422 $ 96,842 $ 34,691 $ 211,955 Desktops 34,787 39,277 18,688 92,752 Software 39,259 35,739 20,885 95,883 Servers/Storage 29,383 14,737 20,157 64,277 Net/Com Products 23,367 12,572 15,079 51,018 Displays and Sound 20,866 26,236 14,291 61,393 Accessories 23,677 59,540 10,922 94,139 Other Hardware/Services 19,291 33,096 17,272 69,659 Total net sales $ 271,052 $ 318,039 $ 151,985 $ 741,076 Three Months Ended June 30, 2018 (1) Business Enterprise Public Sector Total Notebooks/Mobility $ 81,999 $ 68,545 $ 35,261 $ 185,805 Desktops 28,399 30,006 18,762 77,167 Software 38,375 37,363 11,043 86,781 Servers/Storage 27,303 24,295 16,499 68,097 Net/Com Products 29,140 20,124 11,115 60,379 Displays and Sound 20,565 34,449 16,627 71,641 Accessories 25,055 51,596 11,757 88,408 Other Hardware/Services 19,206 34,687 14,399 68,292 Total net sales $ 270,042 $ 301,065 $ 135,463 $ 706,570 (1) Product categories were separated into additional categories in 2019. Certain prior-year balances have been classified to conform with the new presentation. The following table represents a disaggregation of revenue from arrangements with customers for the six months ended June 30, 2019 and 2018, along with the reportable segment for each category. Six Months Ended June 30, 2019 Business Enterprise Public Sector Total Notebooks/Mobility $ 161,357 $ 163,407 $ 62,066 $ 386,830 Desktops 61,571 75,246 29,575 166,392 Software 73,947 63,515 30,157 167,619 Servers/Storage 55,100 32,162 32,573 119,835 Net/Com Products 45,606 27,200 25,223 98,029 Displays and Sound 41,198 53,171 24,170 118,539 Accessories 45,730 116,055 20,567 182,352 Other Hardware/Services 39,475 62,918 32,008 134,401 Total net sales $ 523,984 $ 593,674 $ 256,339 $ 1,373,997 Six Months Ended June 30, 2018 (1) Business Enterprise Public Sector Total Notebooks/Mobility $ 153,728 $ 131,983 $ 59,159 $ 344,870 Desktops 56,690 61,232 28,836 146,758 Software 72,799 65,804 17,906 156,509 Servers/Storage 58,804 48,838 33,638 141,280 Net/Com Products 56,166 32,492 23,873 112,531 Displays and Sound 43,875 56,454 26,098 126,427 Accessories 50,072 90,565 21,579 162,216 Other Hardware/Services 41,186 70,941 28,747 140,874 Total net sales $ 533,320 $ 558,309 $ 239,836 $ 1,331,465 Product categories were separated into additional categories in 2019. Certain prior-year balances have been classified to conform with the new presentation.
Schedule of information on contract liability	June 30, 2019 December 31, 2018 Contract liability, which are included in "Accrued expenses and other liabilities" $ 4,724 $ 2,679 Changes in the contract liability balances during the three and six months ended June 30, 2019 are as follows (in thousands): Three Months Ended June 30, Balances at March 31, 2019 $ 4,692 Cash received in advance and not recognized as revenue 2,511 Amounts recognized as revenue as performance obligations satisfied (2,479) Balances at June 30, 2019 $ 4,724 Six Months Ended June 30, Balances at December 31, 2018 $ 2,679 Cash received in advance and not recognized as revenue 7,168 Amounts recognized as revenue as performance obligations satisfied (5,123) Balances at June 30, 2019 $ 4,724

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2019
Earnings Per Share
Computation of basic and diluted earnings per share	The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Numerator: Net income $ 23,668 $ 18,226 $ 36,395 $ 29,526 Denominator: Denominator for basic earnings per share 26,337 26,685 26,348 26,760 Dilutive effect of unvested employee stock awards 157 135 158 108 Denominator for diluted earnings per share 26,494 26,820 26,506 26,868 Earnings per share: Basic $ 0.90 $ 0.68 $ 1.38 $ 1.10 Diluted $ 0.89 $ 0.68 $ 1.37 $ 1.10

SEGMENT AND RELATED DISCLOSUR_2

SEGMENT AND RELATED DISCLOSURES (Tables)	6 Months Ended
	Jun. 30, 2019
Segment and Related Disclosures
Segment Information Applicable to Reportable Operating Segments	Segment information applicable to our reportable operating segments for the three and six months ended June 30, 2019 and 2018 is shown below: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net sales: Business Solutions $ 271,052 $ 270,042 $ 523,984 $ 533,320 Enterprise Solutions 318,039 301,065 593,674 558,309 Public Sector Solutions 151,985 135,463 256,339 239,836 Total net sales $ 741,076 $ 706,570 $ 1,373,997 $ 1,331,465 Operating income: Business Solutions $ 16,211 $ 10,648 $ 24,976 $ 20,130 Enterprise Solutions 19,108 17,291 34,581 29,969 Public Sector Solutions 661 514 (2,405) (2,611) Headquarters/Other (3,657) (3,506) (7,420) (7,069) Total operating income 32,323 24,947 49,732 40,419 Interest income, net 184 182 382 298 Income before taxes $ 32,507 $ 25,129 $ 50,114 $ 40,717 Selected operating expense: Depreciation and amortization: Business Solutions $ 148 $ 154 $ 298 $ 328 Enterprise Solutions 606 563 1,245 1,045 Public Sector Solutions 25 32 46 66 Headquarters/Other 2,589 2,679 5,488 5,290 Total depreciation and amortization $ 3,368 $ 3,428 $ 7,077 $ 6,729 Total assets: Business Solutions $ 291,912 $ 261,419 Enterprise Solutions 506,086 447,911 Public Sector Solutions 80,461 68,679 Headquarters/Other 33,343 2,945 Total assets $ 911,802 $ 780,954

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Restructuring and Other Charges (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019facility	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)
Restructuring and other charges
Number of office facilities closed | facility	1
Restructuring and other charges		$ 703	$ 0
Employee separations
Restructuring and other charges
Restructuring and other charges		553
Lease termination costs
Restructuring and other charges
Restructuring and other charges		$ 150

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Effect of Adoption of ASC 842 (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019USD ($)facility	Jun. 30, 2019USD ($)lease	Jan. 01, 2019USD ($)
Leases
Lease, Practical Expedients, Package		true
Lease, Practical Expedient, Use of Hindsight		true
Lease liability	$ 16,090	$ 16,090	$ 18,835
Right-of-use assets, net	15,169	15,169	18,723
Remaining unamortized lease incentives	$ 1,383	1,383	$ 114
Number of office facilities closed | facility	1
Disposal of ROU lease asset	$ 575	575
Reduction in lease liability due to disposal of ROU lease asset	596	$ 596
Gain on lease termination	21
Number of financing leases | lease		0
Number of additional operating or financing leases not yet commenced | lease		0
Lease Cost
Capitalized operating lease cost	1,171	$ 2,381
Short-term lease cost	43	86
Total lease cost	1,214	2,467
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$ 1,249	$ 2,512
Weighted-average remaining lease term - Capitalized operating leases	8 years 6 months 29 days	8 years 6 months 29 days
Weighted-average discount rate - Capitalized operating leases	3.92%	3.92%
Minimum
Leases
Number of years remaining on existing operating leases		20 months
Maximum
Leases
Number of years remaining on existing operating leases		197 months
Related Parties
Leases
Lease liability	$ 5,350	$ 5,350
Right-of-use assets, net	5,998	5,998
Lease Cost
Capitalized operating lease cost	379	758
Short-term lease cost	41	82
Total lease cost	420	840
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$ 379	$ 758
Weighted-average remaining lease term - Capitalized operating leases	4 years 4 months 6 days	4 years 4 months 6 days
Weighted-average discount rate - Capitalized operating leases	3.92%	3.92%
Others
Lease Cost
Capitalized operating lease cost	$ 792	$ 1,623
Short-term lease cost	2	4
Total lease cost	794	1,627
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$ 870	$ 1,754
Weighted-average remaining lease term - Capitalized operating leases	10 years 8 months 9 days	10 years 8 months 9 days
Weighted-average discount rate - Capitalized operating leases	3.92%	3.92%

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Future Lease Payments (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Future lease payments over the remaining term of capitalized operating leases
2019, excluding the six months ended June 30, 2019	$ 2,425
2020	4,767
2021	3,735
2022	2,737
2023	2,183
2024	1,043
Thereafter	583
Total	17,473
Imputed interest	(1,383)	$ (114)
Lease liability balance	16,090	18,835
Operating Lease, Right-of-Use Asset	15,169	$ 18,723
Long-term lease liability	11,727
Operating Lease, Liability, Current	$ 4,363
Current operating lease liability, Statement of Financial Position	cnxn:AccruedExpensesAndOtherLiabilities
Future aggregate minimum annual lease payments
2019			$ 5,035
2020			4,793
2021			3,719
2022			2,743
2023			1,969
2024 and thereafter			1,395
Total			19,654
Related Parties
Future lease payments over the remaining term of capitalized operating leases
2019, excluding the six months ended June 30, 2019	$ 758
2020	1,385
2021	1,253
2022	1,253
2023	1,149
Total	5,798
Lease liability balance	5,350
Operating Lease, Right-of-Use Asset	5,998
Future aggregate minimum annual lease payments
2019			1,516
2020			1,407
2021			1,253
2022			1,253
2023			1,149
Total			6,578
Others
Future lease payments over the remaining term of capitalized operating leases
2019, excluding the six months ended June 30, 2019	1,667
2020	3,382
2021	2,482
2022	1,484
2023	1,034
2024	1,043
Thereafter	583
Total	$ 11,675
Future aggregate minimum annual lease payments
2019			3,519
2020			3,386
2021			2,466
2022			1,490
2023			820
2024 and thereafter			1,395
Total			$ 13,076

REVENUE - Disaggregation of Rev

REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Disaggregation of revenue
Net sales	$ 741,076	$ 706,570	$ 1,373,997	$ 1,331,465
Notebooks/Mobility
Disaggregation of revenue
Net sales	211,955	185,805	386,830	344,870
Desktops
Disaggregation of revenue
Net sales	92,752	77,167	166,392	146,758
Software
Disaggregation of revenue
Net sales	95,883	86,781	167,619	156,509
Servers/Storage
Disaggregation of revenue
Net sales	64,277	68,097	119,835	141,280
Net/Com Products
Disaggregation of revenue
Net sales	51,018	60,379	98,029	112,531
Displays and Sound
Disaggregation of revenue
Net sales	61,393	71,641	118,539	126,427
Accessories
Disaggregation of revenue
Net sales	94,139	88,408	182,352	162,216
Other Hardware/Services
Disaggregation of revenue
Net sales	69,659	68,292	134,401	140,874
Business Solutions
Disaggregation of revenue
Net sales	271,052	270,042	523,984	533,320
Business Solutions | Notebooks/Mobility
Disaggregation of revenue
Net sales	80,422	81,999	161,357	153,728
Business Solutions | Desktops
Disaggregation of revenue
Net sales	34,787	28,399	61,571	56,690
Business Solutions | Software
Disaggregation of revenue
Net sales	39,259	38,375	73,947	72,799
Business Solutions | Servers/Storage
Disaggregation of revenue
Net sales	29,383	27,303	55,100	58,804
Business Solutions | Net/Com Products
Disaggregation of revenue
Net sales	23,367	29,140	45,606	56,166
Business Solutions | Displays and Sound
Disaggregation of revenue
Net sales	20,866	20,565	41,198	43,875
Business Solutions | Accessories
Disaggregation of revenue
Net sales	23,677	25,055	45,730	50,072
Business Solutions | Other Hardware/Services
Disaggregation of revenue
Net sales	19,291	19,206	39,475	41,186
Enterprise Solutions
Disaggregation of revenue
Net sales	318,039	301,065	593,674	558,309
Enterprise Solutions | Notebooks/Mobility
Disaggregation of revenue
Net sales	96,842	68,545	163,407	131,983
Enterprise Solutions | Desktops
Disaggregation of revenue
Net sales	39,277	30,006	75,246	61,232
Enterprise Solutions | Software
Disaggregation of revenue
Net sales	35,739	37,363	63,515	65,804
Enterprise Solutions | Servers/Storage
Disaggregation of revenue
Net sales	14,737	24,295	32,162	48,838
Enterprise Solutions | Net/Com Products
Disaggregation of revenue
Net sales	12,572	20,124	27,200	32,492
Enterprise Solutions | Displays and Sound
Disaggregation of revenue
Net sales	26,236	34,449	53,171	56,454
Enterprise Solutions | Accessories
Disaggregation of revenue
Net sales	59,540	51,596	116,055	90,565
Enterprise Solutions | Other Hardware/Services
Disaggregation of revenue
Net sales	33,096	34,687	62,918	70,941
Public Sector Solutions
Disaggregation of revenue
Net sales	151,985	135,463	256,339	239,836
Public Sector Solutions | Notebooks/Mobility
Disaggregation of revenue
Net sales	34,691	35,261	62,066	59,159
Public Sector Solutions | Desktops
Disaggregation of revenue
Net sales	18,688	18,762	29,575	28,836
Public Sector Solutions | Software
Disaggregation of revenue
Net sales	20,885	11,043	30,157	17,906
Public Sector Solutions | Servers/Storage
Disaggregation of revenue
Net sales	20,157	16,499	32,573	33,638
Public Sector Solutions | Net/Com Products
Disaggregation of revenue
Net sales	15,079	11,115	25,223	23,873
Public Sector Solutions | Displays and Sound
Disaggregation of revenue
Net sales	14,291	16,627	24,170	26,098
Public Sector Solutions | Accessories
Disaggregation of revenue
Net sales	10,922	11,757	20,567	21,579
Public Sector Solutions | Other Hardware/Services
Disaggregation of revenue
Net sales	$ 17,272	$ 14,399	$ 32,008	$ 28,747

REVENUE - Contract Balances (De

REVENUE - Contract Balances (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Change in contract liability
Beginning balance - Contract liability	$ 4,692	$ 2,679
Cash received in advance and not recognized as revenue	2,511	7,168
Amounts recognized as revenue as performance obligations satisfied	(2,479)	(5,123)
Ending balance - Contract liability	4,724	4,724
Accrued expenses and other liabilities
Contract liabilities
Contract liability	$ 4,724	$ 4,724	$ 2,679

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Numerator:
Net income	$ 23,668	$ 12,727	$ 18,226	$ 11,300	$ 36,395	$ 29,526
Denominator:
Denominator for basic earnings per share	26,337		26,685		26,348	26,760
Dilutive effect of employee stock awards	157		135		158	108
Denominator for diluted earnings per share	26,494		26,820		26,506	26,868
Earnings per share:
Basic	$ 0.90		$ 0.68		$ 1.38	$ 1.10
Diluted	$ 0.89		$ 0.68		$ 1.37	$ 1.10
Additional Disclosure
Employee stock awards excluded from computation of diluted earnings per share	0		0		0	0

SEGMENT AND RELATED DISCLOSUR_3

SEGMENT AND RELATED DISCLOSURES - Segment Information Applicable to Reportable Operating Segments (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2019USD ($)segment	Jun. 30, 2018USD ($)	Dec. 31, 2018USD ($)
Segment Reporting Information
Number of reportable segments | segment			3
Number of operating segments | segment			3
Net sales:
Net sales	$ 741,076	$ 706,570	$ 1,373,997	$ 1,331,465
Operating income:
Operating income (loss)	32,323	24,947	49,732	40,419
Interest income, net	184	182	382	298
Income before taxes	32,507	25,129	50,114	40,717
Depreciation and amortization:
Depreciation and amortization	3,368	3,428	7,077	6,729
Total assets:
Total assets	911,802	780,954	911,802	780,954	$ 805,355
Goodwill	73,602		73,602		$ 73,602
Business Solutions
Net sales:
Net sales	271,052	270,042	523,984	533,320
Enterprise Solutions
Net sales:
Net sales	318,039	301,065	593,674	558,309
Public Sector Solutions
Net sales:
Net sales	151,985	135,463	256,339	239,836
Operating Segments | Business Solutions
Net sales:
Net sales	271,052	270,042	523,984	533,320
Operating income:
Operating income (loss)	16,211	10,648	24,976	20,130
Depreciation and amortization:
Depreciation and amortization	148	154	298	328
Total assets:
Total assets	291,912	261,419	291,912	261,419
Operating Segments | Enterprise Solutions
Net sales:
Net sales	318,039	301,065	593,674	558,309
Operating income:
Operating income (loss)	19,108	17,291	34,581	29,969
Depreciation and amortization:
Depreciation and amortization	606	563	1,245	1,045
Total assets:
Total assets	506,086	447,911	506,086	447,911
Operating Segments | Public Sector Solutions
Net sales:
Net sales	151,985	135,463	256,339	239,836
Operating income:
Operating income (loss)	661	514	(2,405)	(2,611)
Depreciation and amortization:
Depreciation and amortization	25	32	46	66
Total assets:
Total assets	80,461	68,679	80,461	68,679
Headquarters/Other
Operating income:
Operating income (loss)	(3,657)	(3,506)	(7,420)	(7,069)
Depreciation and amortization:
Depreciation and amortization	2,589	2,679	5,488	5,290
Total assets:
Assets net of intercompany balance eliminations	33,343	2,945	33,343	2,945
Intersegment Elimination
Total assets:
Total assets	$ (25,093)	$ (22,882)	$ (25,093)	$ (22,882)

BANK CREDIT FACILITY (Detail)

BANK CREDIT FACILITY (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Subordinated Borrowing
Line of credit, borrowing capacity	$ 50,000
Credit facility, expiration date	Feb. 10, 2022
Line of credit, maximum borrowing capacity	$ 80,000
Debt instrument, description of variable rate basis	One-month LIBOR
Line of credit, outstanding borrowing	$ 0	$ 0
Line of credit, available for borrowing	$ 50,000	$ 50,000
Maximum
Subordinated Borrowing
Debt ratio	2
Prime Rate
Subordinated Borrowing
Debt instrument, interest rate	5.50%
One-month LIBOR rate
Subordinated Borrowing
Debt instrument, interest rate	2.40%