PC Connection (CNXN) 10-Q 30 Oct 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Oct. 28, 2019
Document And Entity Information
Document Type	10-Q
Document Period End Date	Sep. 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		26,316,263
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001050377
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current Assets:
Cash and cash equivalents	$ 98,489	$ 91,703
Accounts receivable, net	478,907	447,698
Inventories, net	126,078	119,195
Income taxes receivable		922
Prepaid expenses and other current assets	6,881	9,661
Total current assets	710,355	669,179
Property and equipment, net	62,336	51,799
Right-of-use assets, net	14,850
Goodwill	73,602	73,602
Intangible assets, net	8,613	9,564
Other assets	892	1,211
Total Assets	870,648	805,355
Current Liabilities:
Accounts payable	197,736	201,640
Accrued payroll	23,393	24,319
Accrued expenses and other liabilities	36,341	33,840
Total current liabilities	257,470	259,799
Deferred income taxes	17,194	17,184
Operating lease liability	11,386
Other liabilities	1,454	2,469
Total Liabilities	287,504	279,452
Stockholders' Equity:
Common stock	288	288
Additional paid-in capital	117,301	115,842
Retained earnings	501,155	441,010
Treasury stock, at cost	(35,600)	(31,237)
Total Stockholders' Equity	583,144	525,903
Total Liabilities and Stockholders' Equity	$ 870,648	$ 805,355

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Condensed Consolidated Statements of Income
Net sales	$ 729,410	$ 658,504	$ 2,103,407	$ 1,989,969
Cost of sales	610,547	558,060	1,768,210	1,685,685
Gross profit	118,863	100,444	335,197	304,284
Selling, general and administrative expenses	86,226	81,494	252,125	244,915
Restructuring and other charges			703
Income from operations	32,637	18,950	82,369	59,369
Interest income, net	62	114	444	412
Income before taxes	32,699	19,064	82,813	59,781
Income tax provision	(8,949)	(5,298)	(22,668)	(16,489)
Net income	$ 23,750	$ 13,766	$ 60,145	$ 43,292
Earnings per common share:
Basic	$ 0.90	$ 0.52	$ 2.28	$ 1.62
Diluted	$ 0.90	$ 0.51	$ 2.27	$ 1.61
Shares used in computation of earnings per common share:
Basic	26,323	26,716	26,339	26,745
Diluted	26,479	26,902	26,496	26,883

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		737			737
Restricted stock units vested (in shares)	28
Issuance of common stock under Employee Stock Purchase Plan		605			605
Issuance of common stock under Employee Stock Purchase Plan (in shares)	19
Shares withheld for taxes paid on stock awards		(457)			(457)
Repurchases of common stock for treasury				$ (4,384)	(4,384)
Repurchase of common stock for treasury (in shares)				(170)
Net income			43,292		43,292
Balance at Sep. 30, 2018	$ 287	115,039	428,162	$ (20,246)	523,242
Balance (in shares) at Sep. 30, 2018	28,756			(2,026)
Balance at Jun. 30, 2018	$ 287	115,223	414,396	$ (20,246)	509,660
Balance (in shares) at Jun. 30, 2018	28,728			(2,026)
Stock-based compensation expense		273			273
Restricted stock units vested (in shares)	28
Shares withheld for taxes paid on stock awards		(457)			(457)
Net income			13,766		13,766
Balance at Sep. 30, 2018	$ 287	115,039	428,162	$ (20,246)	523,242
Balance (in shares) at Sep. 30, 2018	28,756			(2,026)
Cumulative effect of adoption of ASC 606			1,197		1,197
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)
Stock-based compensation expense		1,259			1,259
Restricted stock units vested (in shares)	34
Issuance of common stock under Employee Stock Purchase Plan		609			609
Issuance of common stock under Employee Stock Purchase Plan (in shares)	19
Shares withheld for taxes paid on stock awards		(409)			(409)
Repurchases of common stock for treasury				$ (4,363)	(4,363)
Repurchase of common stock for treasury (in shares)				(132)
Net income			60,145		60,145
Balance at Sep. 30, 2019	$ 288	117,301	501,155	$ (35,600)	583,144
Balance (in shares) at Sep. 30, 2019	28,840			(2,523)
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)
Stock-based compensation expense		426			426
Restricted stock units vested (in shares)	22
Shares withheld for taxes paid on stock awards		(337)			(337)
Repurchases of common stock for treasury				$ (862)	(862)
Repurchase of common stock for treasury (in shares)				(23)
Net income			23,750		23,750
Balance at Sep. 30, 2019	$ 288	$ 117,301	$ 501,155	$ (35,600)	$ 583,144
Balance (in shares) at Sep. 30, 2019	28,840			(2,523)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash Flows provided by Operating Activities:
Net income	$ 60,145	$ 43,292
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	10,184	10,362
Provision for doubtful accounts	181	1,428
Stock-based compensation expense	1,259	737
Deferred income taxes	10	429
Loss on disposal of fixed assets	114	51
Changes in assets and liabilities:
Accounts receivable	(31,390)	63,881
Inventories	(6,883)	(9,399)
Prepaid expenses, income tax receivables and other current assets	3,702	812
Other non-current assets	319	283
Accounts payable	(3,167)	(29,361)
Accrued expenses and other liabilities	5,548	(1,262)
Net cash provided by operating activities	40,022	81,253
Cash Flows used in Investing Activities:
Purchases of equipment	(20,621)	(15,641)
Net cash used in investing activities	(20,621)	(15,641)
Cash Flows used in Financing Activities:
Proceeds from short-term borrowings		859
Repayment of short-term borrowings		(859)
Purchase of treasury shares	(4,363)	(4,384)
Dividend payment	(8,452)	(9,123)
Issuance of stock under Employee Stock Purchase Plan	609	605
Payment of payroll taxes on stock-based compensation through shares withheld	(409)	(457)
Net cash used in financing activities	(12,615)	(13,359)
(Decrease) increase in cash and cash equivalents	6,786	52,253
Cash and cash equivalents, beginning of year	91,703	49,990
Cash and cash equivalents, end of year	98,489	102,243
Non-cash Investing and Financing Activities:
Accrued capital expenditures	1,684	1,055
Supplemental Cash Flow Information:
Income taxes paid	$ 18,972	$ 15,134

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 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, 2019, 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 nine months ended September 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. Restructuring and other charges Nine months ended September 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 payments and other related benefits. These costs will be paid within a year of termination and any unpaid balances are included in accrued expenses at September 30, 2019. Also included are 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 the Company has no ongoing restructuring plans. 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. The Company 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 September 30, 2019 was $5,998 and a corresponding lease liability of $5,021 associated with related party leases. During the third quarter of 2019, the Company amended the terms of one of its existing leases. The amendment was treated as a lease modification and was not accounted for as a separate lease. In accordance with ASC 842, the Company re-measured the right-of-use asset and the lease liability as of the modification date and also re-assessed the reasonably certain holding period of the lease. As of September 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 September 30, 2019 Nine months ended September 30, 2019 Related Parties Others Total Related Parties Others Total Lease Cost Capitalized operating lease cost $ 379 $ 773 $ 1,152 $ 1,137 $ 2,396 $ 3,533 Short-term lease cost 41 2 43 123 6 129 Total lease cost $ 420 $ 775 $ 1,195 $ 1,260 $ 2,402 $ 3,662 Other Information Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: Operating cash flows $ 379 $ 832 $ 1,211 $ 1,137 $ 2,585 $ 3,722 Weighted-average remaining lease term (in years): Capitalized operating leases 4.11 6.78 5.92 Weighted-average discount rate: Capitalized operating leases As of September 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 nine months ended September 30, 2019 $ 379 $ 835 $ 1,214 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 — 1,460 1,460 $ 5,419 $ 11,720 $ 17,139 Imputed interest (1,426) Lease liability balance at September 30, 2019 $ 15,713 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 September 30, 2019, the ROU asset had a net balance of $14,850. The long-term lease liability was $11,386 and the short-term lease liability, which is included in accrued expenses and other liabilities in the consolidated balance sheets, was $4,327. 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 has evaluated the requirements of this ASU and determined that the potential exposure is limited to the impact this standard may have on its trade receivables. The Company does not currently have any other financial instruments that would be affected by this standard. Customers are evaluated for their credit worthiness at the time of contract inception. Based on the results of the assessment, the Company will extend credit under its standard payment terms or may request alternative early payment actions. In addition, the Company analyzes its aged receivables for collectability at least quarterly, and if necessary, records a reserve against those receivables it determines may not collectable. As such, the Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements.

REVENUE

REVENUE	9 Months Ended
	Sep. 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 September 30, 2019 and 2018, along with the reportable segment for each category. Three Months Ended September 30, 2019 Business Enterprise Public Sector Total Notebooks/Mobility $ 79,287 $ 77,214 $ 63,154 $ 219,655 Desktops 34,806 36,821 20,499 92,126 Software 36,879 28,439 13,205 78,523 Servers/Storage 26,352 16,374 16,576 59,302 Net/Com Products 25,200 11,666 15,695 52,561 Displays and Sound 23,224 29,641 17,669 70,534 Accessories 26,306 46,546 14,545 87,397 Other Hardware/Services 21,702 31,594 16,016 69,312 Total net sales $ 273,756 $ 278,295 $ 177,359 $ 729,410 Three Months Ended September 30, 2018 (1) Business Enterprise Public Sector Total Notebooks/Mobility $ 68,822 $ 63,926 $ 50,079 $ 182,827 Desktops 25,828 30,075 13,112 69,015 Software 31,578 25,718 15,541 72,837 Servers/Storage 26,386 21,424 13,115 60,925 Net/Com Products 27,380 16,601 12,745 56,726 Displays and Sound 23,318 23,834 15,748 62,900 Accessories 22,313 52,967 12,516 87,796 Other Hardware/Services 19,247 30,932 15,299 65,478 Total net sales $ 244,872 $ 265,477 $ 148,155 $ 658,504 (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 nine months ended September 30, 2019 and 2018, along with the reportable segment for each category. Nine Months Ended September 30, 2019 Business Enterprise Public Sector Total Notebooks/Mobility $ 240,644 $ 240,621 $ 125,220 $ 606,485 Desktops 96,377 112,067 50,074 258,518 Software 110,826 91,954 43,362 246,142 Servers/Storage 81,452 48,536 49,149 179,137 Net/Com Products 70,806 38,866 40,918 150,590 Displays and Sound 64,422 82,812 41,839 189,073 Accessories 72,036 162,601 35,112 269,749 Other Hardware/Services 61,177 94,512 48,024 203,713 Total net sales $ 797,740 $ 871,969 $ 433,698 $ 2,103,407 Nine Months Ended September 30, 2018 (1) Business Enterprise Public Sector Total Notebooks/Mobility $ 222,550 $ 195,909 $ 109,238 $ 527,697 Desktops 82,518 91,307 41,948 215,773 Software 104,377 91,522 33,447 229,346 Servers/Storage 85,190 70,262 46,753 202,205 Net/Com Products 83,546 49,093 36,618 169,257 Displays and Sound 67,193 80,288 41,846 189,327 Accessories 72,385 143,532 34,095 250,012 Other Hardware/Services 60,433 101,873 44,046 206,352 Total net sales $ 778,192 $ 823,786 $ 387,991 $ 1,989,969 (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 September 30, 2019 and December 31, 2018. September 30, 2019 December 31, 2018 Contract liability, which is included in "Accrued expenses and other liabilities" $ 3,325 $ 2,679 Changes in the contract liability balances during the three and nine months ended September 30, 2019 are as follows (in thousands): 2019 2018 Balances at June 30, $ 4,724 $ 8,433 Cash received in advance and not recognized as revenue 1,701 1,024 Amounts recognized as revenue as performance obligations satisfied (3,100) (6,828) Balances at September 30, $ 3,325 $ 2,629 2019 2018 Balances at December 31, $ 2,679 $ 2,914 Cash received in advance and not recognized as revenue 8,868 9,520 Amounts recognized as revenue as performance obligations satisfied (8,222) (9,805) Balances at September 30, $ 3,325 $ 2,629

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Numerator: Net income $ 23,750 $ 13,766 $ 60,145 $ 43,292 Denominator: Denominator for basic earnings per share 26,323 26,716 26,339 26,745 Dilutive effect of unvested employee stock awards 156 186 157 138 Denominator for diluted earnings per share 26,479 26,902 26,496 26,883 Earnings per share: Basic $ 0.90 $ 0.52 $ 2.28 $ 1.62 Diluted $ 0.90 $ 0.51 $ 2.27 $ 1.61 For the three and nine months ended September 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	9 Months Ended
	Sep. 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 nine months ended September 30, 2019 and 2018 is shown below: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net sales: Business Solutions $ 273,756 $ 244,872 $ 797,740 $ 778,192 Enterprise Solutions 278,295 265,477 871,969 823,786 Public Sector Solutions 177,359 148,155 433,698 387,991 Total net sales $ 729,410 $ 658,504 $ 2,103,407 $ 1,989,969 Operating income (loss): Business Solutions $ 13,533 $ 8,173 $ 38,509 $ 28,303 Enterprise Solutions 16,346 13,629 50,927 43,598 Public Sector Solutions 7,082 528 4,677 (2,083) Headquarters/Other (4,324) (3,380) (11,744) (10,449) Total operating income 32,637 18,950 82,369 59,369 Interest income, net 62 114 444 412 Income before taxes $ 32,699 $ 19,064 $ 82,813 $ 59,781 Selected operating expense: Depreciation and amortization: Business Solutions $ 149 $ 153 $ 447 $ 481 Enterprise Solutions 613 608 1,858 1,653 Public Sector Solutions 22 25 68 91 Headquarters/Other 2,323 2,848 7,811 8,137 Total depreciation and amortization $ 3,107 $ 3,634 $ 10,184 $ 10,362 Total assets: Business Solutions $ 300,360 $ 263,678 Enterprise Solutions 488,867 423,125 Public Sector Solutions 90,437 69,994 Headquarters/Other (9,016) (6,570) Total assets $ 870,648 $ 750,227 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 September 30, 2019 and 2018, total assets for the Headquarters/Other group are presented net of intercompany balance eliminations of $36,077 and $22,989, 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	9 Months Ended
	Sep. 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	9 Months Ended
	Sep. 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”) (2.02% at September 30, 2019), plus a spread based on our funded debt ratio, or in the absence of LIBOR, the prime rate (5.00% at September 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 September 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)	9 Months Ended
	Sep. 30, 2019
Summary of Significant Accounting Policies
Schedule of restructuring and other charges	Nine months ended September 30, 2019 Employee separations $ 553 Lease termination costs 150 Total restructuring and other charges $ 703
Schedule of lease cost	Three months ended September 30, 2019 Nine months ended September 30, 2019 Related Parties Others Total Related Parties Others Total Lease Cost Capitalized operating lease cost $ 379 $ 773 $ 1,152 $ 1,137 $ 2,396 $ 3,533 Short-term lease cost 41 2 43 123 6 129 Total lease cost $ 420 $ 775 $ 1,195 $ 1,260 $ 2,402 $ 3,662 Other Information Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: Operating cash flows $ 379 $ 832 $ 1,211 $ 1,137 $ 2,585 $ 3,722 Weighted-average remaining lease term (in years): Capitalized operating leases 4.11 6.78 5.92 Weighted-average discount rate: Capitalized operating leases
Schedule of future lease payments on capitalized operating leases	As of September 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 nine months ended September 30, 2019 $ 379 $ 835 $ 1,214 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 — 1,460 1,460 $ 5,419 $ 11,720 $ 17,139 Imputed interest (1,426) Lease liability balance at September 30, 2019 $ 15,713 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)	9 Months Ended
	Sep. 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 September 30, 2019 and 2018, along with the reportable segment for each category. Three Months Ended September 30, 2019 Business Enterprise Public Sector Total Notebooks/Mobility $ 79,287 $ 77,214 $ 63,154 $ 219,655 Desktops 34,806 36,821 20,499 92,126 Software 36,879 28,439 13,205 78,523 Servers/Storage 26,352 16,374 16,576 59,302 Net/Com Products 25,200 11,666 15,695 52,561 Displays and Sound 23,224 29,641 17,669 70,534 Accessories 26,306 46,546 14,545 87,397 Other Hardware/Services 21,702 31,594 16,016 69,312 Total net sales $ 273,756 $ 278,295 $ 177,359 $ 729,410 Three Months Ended September 30, 2018 (1) Business Enterprise Public Sector Total Notebooks/Mobility $ 68,822 $ 63,926 $ 50,079 $ 182,827 Desktops 25,828 30,075 13,112 69,015 Software 31,578 25,718 15,541 72,837 Servers/Storage 26,386 21,424 13,115 60,925 Net/Com Products 27,380 16,601 12,745 56,726 Displays and Sound 23,318 23,834 15,748 62,900 Accessories 22,313 52,967 12,516 87,796 Other Hardware/Services 19,247 30,932 15,299 65,478 Total net sales $ 244,872 $ 265,477 $ 148,155 $ 658,504 (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 nine months ended September 30, 2019 and 2018, along with the reportable segment for each category. Nine Months Ended September 30, 2019 Business Enterprise Public Sector Total Notebooks/Mobility $ 240,644 $ 240,621 $ 125,220 $ 606,485 Desktops 96,377 112,067 50,074 258,518 Software 110,826 91,954 43,362 246,142 Servers/Storage 81,452 48,536 49,149 179,137 Net/Com Products 70,806 38,866 40,918 150,590 Displays and Sound 64,422 82,812 41,839 189,073 Accessories 72,036 162,601 35,112 269,749 Other Hardware/Services 61,177 94,512 48,024 203,713 Total net sales $ 797,740 $ 871,969 $ 433,698 $ 2,103,407 Nine Months Ended September 30, 2018 (1) Business Enterprise Public Sector Total Notebooks/Mobility $ 222,550 $ 195,909 $ 109,238 $ 527,697 Desktops 82,518 91,307 41,948 215,773 Software 104,377 91,522 33,447 229,346 Servers/Storage 85,190 70,262 46,753 202,205 Net/Com Products 83,546 49,093 36,618 169,257 Displays and Sound 67,193 80,288 41,846 189,327 Accessories 72,385 143,532 34,095 250,012 Other Hardware/Services 60,433 101,873 44,046 206,352 Total net sales $ 778,192 $ 823,786 $ 387,991 $ 1,989,969 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	September 30, 2019 December 31, 2018 Contract liability, which is included in "Accrued expenses and other liabilities" $ 3,325 $ 2,679 Changes in the contract liability balances during the three and nine months ended September 30, 2019 are as follows (in thousands): 2019 2018 Balances at June 30, $ 4,724 $ 8,433 Cash received in advance and not recognized as revenue 1,701 1,024 Amounts recognized as revenue as performance obligations satisfied (3,100) (6,828) Balances at September 30, $ 3,325 $ 2,629 2019 2018 Balances at December 31, $ 2,679 $ 2,914 Cash received in advance and not recognized as revenue 8,868 9,520 Amounts recognized as revenue as performance obligations satisfied (8,222) (9,805) Balances at September 30, $ 3,325 $ 2,629

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Numerator: Net income $ 23,750 $ 13,766 $ 60,145 $ 43,292 Denominator: Denominator for basic earnings per share 26,323 26,716 26,339 26,745 Dilutive effect of unvested employee stock awards 156 186 157 138 Denominator for diluted earnings per share 26,479 26,902 26,496 26,883 Earnings per share: Basic $ 0.90 $ 0.52 $ 2.28 $ 1.62 Diluted $ 0.90 $ 0.51 $ 2.27 $ 1.61

SEGMENT AND RELATED DISCLOSUR_2

SEGMENT AND RELATED DISCLOSURES (Tables)	9 Months Ended
	Sep. 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 nine months ended September 30, 2019 and 2018 is shown below: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net sales: Business Solutions $ 273,756 $ 244,872 $ 797,740 $ 778,192 Enterprise Solutions 278,295 265,477 871,969 823,786 Public Sector Solutions 177,359 148,155 433,698 387,991 Total net sales $ 729,410 $ 658,504 $ 2,103,407 $ 1,989,969 Operating income (loss): Business Solutions $ 13,533 $ 8,173 $ 38,509 $ 28,303 Enterprise Solutions 16,346 13,629 50,927 43,598 Public Sector Solutions 7,082 528 4,677 (2,083) Headquarters/Other (4,324) (3,380) (11,744) (10,449) Total operating income 32,637 18,950 82,369 59,369 Interest income, net 62 114 444 412 Income before taxes $ 32,699 $ 19,064 $ 82,813 $ 59,781 Selected operating expense: Depreciation and amortization: Business Solutions $ 149 $ 153 $ 447 $ 481 Enterprise Solutions 613 608 1,858 1,653 Public Sector Solutions 22 25 68 91 Headquarters/Other 2,323 2,848 7,811 8,137 Total depreciation and amortization $ 3,107 $ 3,634 $ 10,184 $ 10,362 Total assets: Business Solutions $ 300,360 $ 263,678 Enterprise Solutions 488,867 423,125 Public Sector Solutions 90,437 69,994 Headquarters/Other (9,016) (6,570) Total assets $ 870,648 $ 750,227

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Restructuring and Other Charges (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)facility
Restructuring and other charges
Number of office facilities closed | facility	1
Restructuring and other charges	$ 703
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	9 Months Ended
	Sep. 30, 2019USD ($)lease	Sep. 30, 2019USD ($)facilitylease	Jan. 01, 2019USD ($)
Leases
Lease, Practical Expedients, Package		true
Lease, Practical Expedient, Use of Hindsight		true
Lease liability	$ 15,713	$ 15,713	$ 18,835
Right-of-use assets, net	14,850	14,850	18,723
Remaining unamortized lease incentives	$ 1,426	$ 1,426	$ 114
Number of office facilities closed | facility		1
Number of leases amended | lease	1
Number of financing leases | lease		0
Number of additional operating or financing leases not yet commenced | lease		0
Lease Cost
Capitalized operating lease cost	$ 1,152	$ 3,533
Short-term lease cost	43	129
Total lease cost	1,195	3,662
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$ 1,211	$ 3,722
Weighted-average remaining lease term - Capitalized operating leases	5 years 11 months 1 day	5 years 11 months 1 day
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	$ 5,021	$ 5,021
Right-of-use assets, net	5,998	5,998
Lease Cost
Capitalized operating lease cost	379	1,137
Short-term lease cost	41	123
Total lease cost	420	1,260
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$ 379	$ 1,137
Weighted-average remaining lease term - Capitalized operating leases	4 years 1 month 10 days	4 years 1 month 10 days
Weighted-average discount rate - Capitalized operating leases	3.92%	3.92%
Others
Lease Cost
Capitalized operating lease cost	$ 773	$ 2,396
Short-term lease cost	2	6
Total lease cost	775	2,402
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$ 832	$ 2,585
Weighted-average remaining lease term - Capitalized operating leases	6 years 9 months 11 days	6 years 9 months 11 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	Sep. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Future lease payments over the remaining term of capitalized operating leases
2019, excluding the nine months ended September 30, 2019	$ 1,214
2020	4,767
2021	3,735
2022	2,737
2023	2,183
2024	1,043
Thereafter	1,460
Total	17,139
Imputed interest	(1,426)	$ (114)
Lease liability balance	15,713	18,835
Operating Lease, Right-of-Use Asset	14,850	$ 18,723
Long-term lease liability	11,386
Operating Lease, Liability, Current	$ 4,327
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 nine months ended September 30, 2019	$ 379
2020	1,385
2021	1,253
2022	1,253
2023	1,149
Total	5,419
Lease liability balance	5,021
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 nine months ended September 30, 2019	835
2020	3,382
2021	2,482
2022	1,484
2023	1,034
2024	1,043
Thereafter	1,460
Total	$ 11,720
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		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of revenue
Net sales	$ 729,410	$ 658,504	$ 2,103,407	$ 1,989,969
Notebooks/Mobility
Disaggregation of revenue
Net sales	219,655	182,827	606,485	527,697
Desktops
Disaggregation of revenue
Net sales	92,126	69,015	258,518	215,773
Software
Disaggregation of revenue
Net sales	78,523	72,837	246,142	229,346
Servers/Storage
Disaggregation of revenue
Net sales	59,302	60,925	179,137	202,205
Net/Com Products
Disaggregation of revenue
Net sales	52,561	56,726	150,590	169,257
Displays and Sound
Disaggregation of revenue
Net sales	70,534	62,900	189,073	189,327
Accessories
Disaggregation of revenue
Net sales	87,397	87,796	269,749	250,012
Other Hardware/Services
Disaggregation of revenue
Net sales	69,312	65,478	203,713	206,352
Business Solutions
Disaggregation of revenue
Net sales	273,756	244,872	797,740	778,192
Business Solutions | Notebooks/Mobility
Disaggregation of revenue
Net sales	79,287	68,822	240,644	222,550
Business Solutions | Desktops
Disaggregation of revenue
Net sales	34,806	25,828	96,377	82,518
Business Solutions | Software
Disaggregation of revenue
Net sales	36,879	31,578	110,826	104,377
Business Solutions | Servers/Storage
Disaggregation of revenue
Net sales	26,352	26,386	81,452	85,190
Business Solutions | Net/Com Products
Disaggregation of revenue
Net sales	25,200	27,380	70,806	83,546
Business Solutions | Displays and Sound
Disaggregation of revenue
Net sales	23,224	23,318	64,422	67,193
Business Solutions | Accessories
Disaggregation of revenue
Net sales	26,306	22,313	72,036	72,385
Business Solutions | Other Hardware/Services
Disaggregation of revenue
Net sales	21,702	19,247	61,177	60,433
Enterprise Solutions
Disaggregation of revenue
Net sales	278,295	265,477	871,969	823,786
Enterprise Solutions | Notebooks/Mobility
Disaggregation of revenue
Net sales	77,214	63,926	240,621	195,909
Enterprise Solutions | Desktops
Disaggregation of revenue
Net sales	36,821	30,075	112,067	91,307
Enterprise Solutions | Software
Disaggregation of revenue
Net sales	28,439	25,718	91,954	91,522
Enterprise Solutions | Servers/Storage
Disaggregation of revenue
Net sales	16,374	21,424	48,536	70,262
Enterprise Solutions | Net/Com Products
Disaggregation of revenue
Net sales	11,666	16,601	38,866	49,093
Enterprise Solutions | Displays and Sound
Disaggregation of revenue
Net sales	29,641	23,834	82,812	80,288
Enterprise Solutions | Accessories
Disaggregation of revenue
Net sales	46,546	52,967	162,601	143,532
Enterprise Solutions | Other Hardware/Services
Disaggregation of revenue
Net sales	31,594	30,932	94,512	101,873
Public Sector Solutions
Disaggregation of revenue
Net sales	177,359	148,155	433,698	387,991
Public Sector Solutions | Notebooks/Mobility
Disaggregation of revenue
Net sales	63,154	50,079	125,220	109,238
Public Sector Solutions | Desktops
Disaggregation of revenue
Net sales	20,499	13,112	50,074	41,948
Public Sector Solutions | Software
Disaggregation of revenue
Net sales	13,205	15,541	43,362	33,447
Public Sector Solutions | Servers/Storage
Disaggregation of revenue
Net sales	16,576	13,115	49,149	46,753
Public Sector Solutions | Net/Com Products
Disaggregation of revenue
Net sales	15,695	12,745	40,918	36,618
Public Sector Solutions | Displays and Sound
Disaggregation of revenue
Net sales	17,669	15,748	41,839	41,846
Public Sector Solutions | Accessories
Disaggregation of revenue
Net sales	14,545	12,516	35,112	34,095
Public Sector Solutions | Other Hardware/Services
Disaggregation of revenue
Net sales	$ 16,016	$ 15,299	$ 48,024	$ 44,046

REVENUE - Contract Balances (De

REVENUE - Contract Balances (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Change in contract liability
Beginning balance - Contract liability	$ 4,724	$ 8,433	$ 2,679	$ 2,914
Cash received in advance and not recognized as revenue	1,701	1,024	8,868	9,520
Amounts recognized as revenue as performance obligations satisfied	(3,100)	(6,828)	(8,222)	(9,805)
Ending balance - Contract liability	3,325	$ 2,629	3,325	$ 2,629
Accrued expenses and other liabilities
Contract liabilities
Contract liability	$ 3,325		$ 3,325		$ 2,679

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Numerator:
Net income	$ 23,750	$ 13,766	$ 60,145	$ 43,292
Denominator:
Denominator for basic earnings per share	26,323	26,716	26,339	26,745
Dilutive effect of employee stock awards	156	186	157	138
Denominator for diluted earnings per share	26,479	26,902	26,496	26,883
Earnings per share:
Basic	$ 0.90	$ 0.52	$ 2.28	$ 1.62
Diluted	$ 0.90	$ 0.51	$ 2.27	$ 1.61
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		9 Months Ended
	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2019USD ($)segment	Sep. 30, 2018USD ($)	Dec. 31, 2018USD ($)
Segment Reporting Information
Number of reportable segments | segment			3
Number of operating segments | segment			3
Net sales:
Net sales	$ 729,410	$ 658,504	$ 2,103,407	$ 1,989,969
Operating income (loss):
Operating income (loss)	32,637	18,950	82,369	59,369
Interest income, net	62	114	444	412
Income before taxes	32,699	19,064	82,813	59,781
Depreciation and amortization:
Depreciation and amortization	3,107	3,634	10,184	10,362
Total assets:
Total assets	870,648	750,227	870,648	750,227	$ 805,355
Goodwill	73,602		73,602		$ 73,602
Business Solutions
Net sales:
Net sales	273,756	244,872	797,740	778,192
Enterprise Solutions
Net sales:
Net sales	278,295	265,477	871,969	823,786
Public Sector Solutions
Net sales:
Net sales	177,359	148,155	433,698	387,991
Operating Segments | Business Solutions
Net sales:
Net sales	273,756	244,872	797,740	778,192
Operating income (loss):
Operating income (loss)	13,533	8,173	38,509	28,303
Depreciation and amortization:
Depreciation and amortization	149	153	447	481
Total assets:
Total assets	300,360	263,678	300,360	263,678
Operating Segments | Enterprise Solutions
Net sales:
Net sales	278,295	265,477	871,969	823,786
Operating income (loss):
Operating income (loss)	16,346	13,629	50,927	43,598
Depreciation and amortization:
Depreciation and amortization	613	608	1,858	1,653
Total assets:
Total assets	488,867	423,125	488,867	423,125
Operating Segments | Public Sector Solutions
Net sales:
Net sales	177,359	148,155	433,698	387,991
Operating income (loss):
Operating income (loss)	7,082	528	4,677	(2,083)
Depreciation and amortization:
Depreciation and amortization	22	25	68	91
Total assets:
Total assets	90,437	69,994	90,437	69,994
Headquarters/Other
Operating income (loss):
Operating income (loss)	(4,324)	(3,380)	(11,744)	(10,449)
Depreciation and amortization:
Depreciation and amortization	2,323	2,848	7,811	8,137
Total assets:
Assets net of intercompany balance eliminations	(9,016)	(6,570)	(9,016)	(6,570)
Intersegment Elimination
Total assets:
Total assets	$ (36,077)	$ (22,989)	$ (36,077)	$ (22,989)

BANK CREDIT FACILITY (Detail)

BANK CREDIT FACILITY (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 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	5.00%
One-month LIBOR rate
Subordinated Borrowing
Debt instrument, interest rate	2.02%