PC Connection (CNXN) 10-K 6 Feb 20 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2019	Feb. 04, 2020	Jun. 28, 2019
Document And Entity Information
Document Type	10-K
Document Period End Date	Dec. 31, 2019
Entity Registrant Name	PC CONNECTION INC
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 388,435,865
Entity Common Stock, Shares Outstanding		26,344,841
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Central Index Key	0001050377
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Current Assets:
Cash and cash equivalents	$ 90,060	$ 91,703
Accounts receivable, net	549,626	447,698
Inventories, net	124,666	119,195
Income taxes receivable	1,388	922
Prepaid expenses and other current assets	10,671	9,661
Total current assets	776,411	669,179
Property and equipment, net	64,226	51,799
Right-of-use assets	13,842
Goodwill	73,602	73,602
Intangible assets, net	8,307	9,564
Other assets	947	1,211
Total Assets	937,335	805,355
Current Liabilities:
Accounts payable	235,641	201,640
Accrued payroll	28,050	24,319
Accrued expenses and other liabilities	45,232	33,840
Total current liabilities	308,923	259,799
Deferred income taxes	20,170	17,184
Noncurrent operating lease liabilities	10,330
Other liabilities	600	2,469
Total Liabilities	340,023	279,452
Stockholders' Equity:
Common Stock, $.01 par value, 100,000 shares authorized, 28,870 and 28,787 issued, 26,345 and 26,396 outstanding at December 31, 2019 and 2018, respectively	288	288
Additional paid-in capital	118,045	115,842
Retained earnings	514,694	441,010
Treasury stock at cost, 2,526 and 2,391 shares at December 31, 2019 and 2018, respectively	(35,715)	(31,237)
Total Stockholders' Equity	597,312	525,903
Total Liabilities and Stockholders' Equity	$ 937,335	$ 805,355

CONSOLIDATED BALANCE SHEETS (PA

CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares shares in Thousands	Dec. 31, 2019	Dec. 31, 2018
Consolidated Balance Sheets
Common Stock, par value	$ 0.01	$ 0.01
Common Stock, shares authorized	100,000	100,000
Common Stock, shares issued	28,870	28,787
Common Stock, shares outstanding	26,345	26,396
Treasury stock, shares	2,526	2,391

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Consolidated Statements of Income
Net sales	$ 716,627	$ 729,410	$ 741,076	$ 632,921	$ 709,520	$ 658,504	$ 706,570	$ 624,895	$ 2,820,034	$ 2,699,489	$ 2,911,883
Cost of sales	600,514	610,547	624,089	533,574	602,718	558,060	599,102	528,523	2,368,724	2,288,403	2,529,807
Gross profit	116,113	118,863	116,987	99,347	106,802	100,444	107,468	96,372	451,310	411,086	382,076
Selling, general and administrative expenses	86,510	86,226	84,664	81,235	79,518	81,494	82,521	80,900	338,635	324,433	300,913
Restructuring and other charges				703	967				703	967	3,636
Income from operations	29,603	32,637	32,323	17,409	26,317	18,950	24,947	15,472	111,972	85,686	77,527
Other income, net	263	62	184	198	2,566	114	182	116	707	2,978	98
Income before taxes	29,866	32,699	32,507	17,607	28,883	19,064	25,129	15,588	112,679	88,664	77,625
Income tax provision	(7,900)	(8,949)	(8,839)	(4,880)	(7,583)	(5,298)	(6,903)	(4,288)	(30,568)	(24,072)	(22,768)
Net income	$ 21,966	$ 23,750	$ 23,668	$ 12,727	$ 21,300	$ 13,766	$ 18,226	$ 11,300	$ 82,111	$ 64,592	$ 54,857
Earnings per common share:
Basic	$ 0.84	$ 0.90	$ 0.90	$ 0.48	$ 0.80	$ 0.52	$ 0.68	$ 0.42	$ 3.12	$ 2.42	$ 2.05
Diluted	$ 0.83	$ 0.90	$ 0.89	$ 0.48	$ 0.80	$ 0.51	$ 0.68	$ 0.42	$ 3.10	$ 2.41	$ 2.04
Shares used in computation of earnings per common share:
Basic	26,322	26,323	26,337	26,359	26,632	26,716	26,685	26,835	26,335	26,717	26,771
Diluted	26,523	26,479	26,494	26,525	26,766	26,902	26,820	26,916	26,505	26,854	26,891

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings	Treasury Stock	Total
Balance at Dec. 31, 2016	$ 285	$ 111,081	$ 337,938	$ (15,862)	$ 433,442
Balance (in shares) at Dec. 31, 2016	28,465			(1,856)
Stock options exercised	$ 2	1,748			1,750
Stock options exercised (in shares)	157
Stock-based compensation expense		741			741
Restricted stock units vested (in shares)	40
Issuance of common stock under Employee Stock Purchase Plan		1,197			1,197
Issuance of common stock under Employee Stock Purchase Plan (in shares)	47
Shares withheld for taxes paid on stock awards		(613)			(613)
Dividend declaration			(9,122)		(9,122)
Net income			54,857		54,857
Balance at Dec. 31, 2017	$ 287	114,154	383,673	$ (15,862)	482,252
Balance (in shares) at Dec. 31, 2017	28,709			(1,856)
Stock-based compensation expense		1,080			1,080
Restricted stock units vested (in shares)	37
Issuance of common stock under Employee Stock Purchase Plan	$ 1	1,246			1,247
Issuance of common stock under Employee Stock Purchase Plan (in shares)	41
Shares withheld for taxes paid on stock awards		(638)			(638)
Repurchases of common stock for treasury				$ (15,375)	(15,375)
Repurchase of common stock for treasury (in shares)				(535)
Dividend declaration			(8,452)		(8,452)
Net income			64,592		64,592
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)	28,787
Cumulative effect of adoption of ASC 606			1,197		$ 1,197
Stock-based compensation expense		1,863			1,863
Restricted stock units vested (in shares)	51
Issuance of common stock under Employee Stock Purchase Plan		1,253			1,253
Issuance of common stock under Employee Stock Purchase Plan (in shares)	32
Shares withheld for taxes paid on stock awards		(913)			(913)
Repurchases of common stock for treasury				$ (4,478)	(4,478)
Repurchase of common stock for treasury (in shares)				(135)
Dividend declaration			(8,427)		(8,427)
Net income			82,111		82,111
Balance at Dec. 31, 2019	$ 288	$ 118,045	$ 514,694	$ (35,715)	$ 597,312
Balance (in shares) at Dec. 31, 2019	28,870			(2,526)	28,870

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash Flows provided by Operating Activities:
Net income	$ 82,111	$ 64,592	$ 54,857
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	13,314	14,063	11,839
Provision for doubtful accounts	25	1,680	1,658
Stock-based compensation expense	1,863	1,080	741
Deferred income taxes	2,986	1,488	(3,906)
Loss on disposal of fixed assets	213	51	24
Changes in assets and liabilities:
Accounts receivable	(101,953)	14,872	(39,457)
Inventories	(5,471)	(23,311)	(16,218)
Prepaid expenses, income tax receivables and other current assets	(1,476)	(1,045)	(2,097)
Other non-current assets	264	2,403	(4,265)
Accounts payable	34,960	5,722	15,807
Accrued expenses and other liabilities	9,767	5,244	337
Net cash provided by operating activities	36,603	86,839	19,320
Cash Flows used in Investing Activities:
Purchases of equipment and capitalized software	(25,656)	(21,238)	(11,803)
Net cash used in investing activities	(25,656)	(21,238)	(11,803)
Cash Flows (used in) provided by Financing Activities:
Proceeds from short-term borrowings		859
Repayment of short-term borrowings		(859)
Purchase of treasury shares	(4,478)	(15,375)
Dividend payment	(8,452)	(9,122)	(9,041)
Proceeds from exercise of stock options			1,750
Issuance of stock under Employee Stock Purchase Plan	1,253	1,247	1,197
Payment of payroll taxes on stock-based compensation through shares withheld	(913)	(638)	(613)
Net cash used in financing activities	(12,590)	(23,888)	(6,707)
Increase (decrease) in cash and cash equivalents	(1,643)	41,713	810
Cash and cash equivalents, beginning of year	91,703	49,990	49,180
Cash and cash equivalents, end of year	90,060	91,703	49,990
Non-cash Investing and Financing Activities:
Accrued capital expenditures	1,463	2,422	699
Dividend declaration	8,427	8,452	9,122
Supplemental Cash Flow Information:
Income taxes paid	$ 28,460	$ 19,945	$ 28,927

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2019
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PC Connection, Inc. is a leading solutions provider of a wide range of information technology, or IT, solutions. The Company help its customers design, enable, manage, and service their IT environments. The Company provides IT products, including computer systems, software and peripheral equipment, networking communications, and other products and accessories that it purchases from manufacturers, distributors, and other suppliers. The Company also offers services involving design, configuration, and implementation of IT solutions. These services are performed by the Company’s personnel and by first-party service providers. The Company operates through three sales segments: (a) the Business Solutions segment, which serves small- to medium-sized businesses, through its PC Connection Sales subsidiary, (b) the Enterprise Solutions segment, which serves large enterprise customers, through its MoreDirect subsidiary, and (c) the Public Sector Solutions segment, which serves federal, state, and local governmental and educational institutions, through its GovConnection subsidiary. The following is a summary of the Company’s significant accounting policies: Principles of Consolidation The consolidated financial statements include the accounts of PC Connection, Inc. and its subsidiaries, all of which are wholly-owned. Intercompany transactions and balances are eliminated in consolidation. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts and disclosures of assets and liabilities and the reported amounts and disclosures of revenue and expenses during the period. By nature, estimates are subject to an inherent degree of uncertainty. Actual results could differ from those estimates and assumptions. Reclassification of Prior Year Presentation Certain 2017 amounts have been reclassified for consistency with current year presentation. Restructuring and other charges have been separated from selling, general, and administrative expenses on the Consolidated Statements of Income. These charges amount to $703, $967, and $3,636 for the years ending December 31, 2019, 2018, and 2017, respectively. This change in classification does not affect previously reported net income or earnings per share figures in the Consolidated Statements of Income. Revenue Recognition On January 1, 2018, the Company adopted ASC 606— Revenue from Contracts with Customers (“ASC 606”), which replaced existing revenue recognition rules with a comprehensive revenue measurement and recognition standard and expanded disclosure requirements. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company enters into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. In most instances, when several performance obligations are aggregated into one single transaction, these performance obligations are fulfilled at the same point in time. The Company accounts for an arrangement when it has approval and commitment from both parties, the rights are identified, the contract has commercial substance, and collectability of consideration is probable. The Company generally obtains oral or written purchase authorizations from its customers for a specified amount of product at a specified price, which constitutes an arrangement. Revenue is recognized at the amount expected to be collected, net of any taxes collected from customers, which are subsequently remitted to governmental authorities. The Company generally invoices for its products at the time of shipping, and accordingly there is not a significant financing component included in our arrangements. Prior to the adoption of ASC 606, revenue on product sales was recognized at the point in time when persuasive evidence of an arrangement existed, the price was fixed or determinable, delivery had occurred, and there was a reasonable assurance of collection of the sales proceeds. Service revenue was recognized over time as the services were performed. The Company evaluated such engagements to determine whether it or the third party assumed the general risk and reward of ownership in these transactions. This evaluation was the basis by which we determined that revenue from these transactions would be recognized on a gross or a net basis. In multiple-element revenue arrangements, each service performed and product delivered was considered a separate deliverable and qualified as a separate unit of accounting. For material multiple element arrangements, the Company allocated revenue based on vendor-specific objective evidence of fair value of the underlying services and products. In the absence of vendor-specific objective evidence, the Company would utilize third-party evidence to allocate the selling price. If neither vendor-specific objective evidence nor third-party evidence was available, the Company would estimate the selling price based on market price and company-specific factors . Cost of Sales and Certain Other Costs Cost of sales includes the invoice cost of the product, direct employee and third party cost of services, direct costs of packaging, inbound and outbound freight, and provisions for inventory obsolescence, adjusted for discounts, rebates, and other vendor allowances. Cash and Cash Equivalents The Company considers all highly liquid short-term investments with original maturities of 90 days or less to be cash equivalents. The carrying value of our cash equivalents approximates fair value. The majority of payments due from credit card processors and banks for third-party credit card and debit card transactions process within one to five business days. All credit card and debit card transactions that process in less than seven days are classified as cash and cash equivalents. Amounts due from banks for credit card transactions classified as cash equivalents totaled $5,553 and $2,651 at December 31, 2019 and 2018, respectively. Accounts Receivable The Company performs ongoing credit evaluations of its customers and adjusts credit limits based on payment history and customer creditworthiness. The Company maintains an allowance for estimated doubtful accounts based on its historical experience and the customer credit issues identified. The Company’s customers do not post collateral for open accounts receivable. The Company monitors collections regularly and adjusts the allowance for doubtful accounts as necessary to recognize any changes in credit exposure. Trade receivables are written off in the period in which they are deemed uncollectible. Recoveries of trade receivables previously charged are recorded when received. Inventories Inventories (all finished goods) consisting of software packages, computer systems, and peripheral equipment, are stated at cost (determined under a weighted-average cost method which approximates the first-in, first-out method) or net realizable value, whichever is lower. Inventory quantities on hand are reviewed regularly, and allowances are maintained for obsolete, slow moving, and nonsalable inventory. Vendor Consideration The Company receives funding from merchandise vendors for price protections, discounts, product rebates, and other programs. These allowances are treated as a reduction of the vendor’s prices and are recorded as adjustments to cost of sales. Allowances for product rebates that require certain volumes of product sales or purchases are recorded as the related milestones are probable of being met. Advertising Costs and Vendor Consideration Vendors have the ability to fund advertising activities for which the Company receives advertising consideration. This vendor consideration, to the extent that it represents specific reimbursements of incremental and identifiable costs, is offset against SG&A expenses. Advertising consideration that cannot be associated with a specific program or that exceeds the fair value of advertising expense associated with that program is classified as an offset to cost of sales. The Company’s vendor partners generally consolidate their funding of advertising and other marketing programs, and accordingly, the Company classifies substantially all vendor consideration as a reduction of cost of sales rather than a reduction of advertising expense. Other advertising costs are expensed as incurred. Advertising expense, which is classified as a component of SG&A expenses, totaled $19,407, $16,244, and $14,437, for the years ended December 31, 2019, 2018, and 2017, respectively. Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization is provided for financial reporting purposes over the estimated useful lives of the assets ranging from three to seven years. Computer software, including licenses and internally developed software, is capitalized and amortized over lives generally ranging from three to seven years. Depreciation is recorded using the straight-line method. Leasehold improvements and facilities under capital leases are amortized over the terms of the related leases or their useful lives, whichever is shorter, whereas for income tax reporting purposes, they are amortized over the applicable tax lives. Costs incurred to develop internal-use software during the application development stage are recorded in property and equipment at cost. External direct costs of materials and services consumed in developing or obtaining internal-use computer software and payroll-related costs for employees developing internal-use computer software projects, to the extent of their time spent directly on the project and specific to application development, are capitalized. When events or circumstances indicate a potential impairment, the Company evaluates the carrying value of property and equipment based upon current and anticipated undiscounted cash flows. The Company recognizes impairment when it is probable that such estimated future cash flows will be less than the asset carrying value. Goodwill and Other Intangible Assets The Company’s intangible assets consist of (1) goodwill, which is not subject to amortization; (2) an internet domain name, which is an indefinite-lived intangible not subject to amortization; and (3) amortizing intangibles, which consist of customer lists, trade names, and customer relationships, which are being amortized over their useful lives. Note 3 describes the annual impairment methodology that the Company uses each year in calculating the recoverability of goodwill and non-amortizing intangibles. This same impairment test is performed at other times during the course of a year should an event occur or circumstance change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Recoverability of amortizing intangible assets is assessed only when events have occurred that may give rise to impairment. When a potential impairment has been identified, forecasted undiscounted net cash flows of the operations to which the asset relates are compared to the current carrying value of the long-lived assets present in that operation. If such cash flows are less than such carrying amounts, long-lived assets including such intangibles, are written down to their respective fair values. Concentrations Concentrations of credit risk with respect to trade account receivables are limited due to the large number of customers comprising the Company’s customer base. No single customer accounted for more than 4% of total net sales in 2019, 2018, and 2017. While no single agency of the federal government comprised more than 3% of total sales, aggregate sales to the federal government as a percentage of total net sales were 6.9%, 5.4%, and 7.8% in 2019, 2018, and 2017, respectively. Product purchases from Ingram Micro, Inc. (“Ingram”), the Company’s largest supplier, and Synnex accounted for approximately 21% and 14%, respectively, of the Company’s total product purchases in 2019. No other vendor supplied more than 10% of the Company’s total product purchases in the year. In addition to these vendors, product purchases from other distributors, such as Dell, HP Inc. and Tech Data comprised a total of 59% of our product purchases in 2019. The Company believes that, while it may experience some short-term disruption if products from Ingram, Synnex, or any of its other large suppliers become unavailable to us, alternative sources for these products are available. Products manufactured by Hewlett Packard Enterprise and HP Inc. collectively represented approximately 19% of the Company’s net sales in 2019, 18% in 2018 and 20% in 2017. We believe that in the event we experience either a short-term or permanent disruption of supply of HP products, such disruption would likely have a material adverse effect on the Company’s results of operations and cash flows. Restructuring and other charges Restructuring and other charges are presented separately from SG&A expenses. Costs incurred were as follows: Year Ended December 31, 2019 2018 2017 Employee separations $ 553 $ 967 $ 640 Lease termination costs 150 — — Relocation expenses — — 84 Employee compensation — — 2,800 Other — — 112 Total restructuring and other charges $ 703 $ 967 $ 3,636 The restructuring and other charges recorded in 2019 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 amounts are included in accrued expenses at December 31, 2019. Also included in net restructuring charges were exit costs incurred associated with the closing of one of our office facilities. The restructuring and other charges recorded in 2018 were related to a reduction in workforce at our Business Solutions, Public Sector Solutions, and Headquarter segments and included cash severance payments and other related benefits. The restructuring and other charges recorded in 2017 were primarily driven by a reduction in workforce at our Headquarters segment, along with costs related to the Softmart business, which was acquired in 2016, including expenses to retain certain key personnel brought over in the acquisition. Also in 2017, we incurred additional expense of $2,700 related to a one-time cash bonus paid to all non-executive employees at the end of the year. Overall, restructuring and other charges consist primarily of employee termination benefits, which are accrued in the period incurred and paid within a year of termination. Included in accrued expenses at December 31, 2019, 2018, and 2017 were $110, $784, and $2, respectively, related to unpaid employee termination benefits. The amount accrued as of December 31, 2019 is expected to be paid in 2020. Other restructuring-related charges such as acquisition costs, relocation expenses and significant marketing campaigns are expensed and paid as incurred. All planned restructuring and other charges were incurred as of December 31, 2019 and we have no ongoing restructuring plans. Earnings Per Share Basic earnings per common share is computed using the weighted average number of shares outstanding. Diluted earnings per share is computed using the weighted average number of shares outstanding adjusted for the incremental shares attributable to nonvested stock units and stock options outstanding, if dilutive. The following table sets forth the computation of basic and diluted earnings per share: 2019 2018 2017 Numerator: Net income $ 82,111 $ 64,592 $ 54,857 Denominator: Denominator for basic earnings per share 26,335 26,717 26,771 Dilutive effect of employee stock awards 170 137 120 Denominator for diluted earnings per share 26,505 26,854 26,891 Earnings per share: Basic $ 3.12 $ 2.42 $ 2.05 Diluted $ 3.10 $ 2.41 $ 2.04 For the years ended December 31, 2019, 2018, and 2017, the Company did not exclude any outstanding nonvested stock units or stock options from the computation of diluted earnings per share because including them would have had an anti-dilutive effect. Other Income, Net Other income, net for the year ended December 31, 2019 consisted of interest income of $810, which was partially offset by interest expense of $103. Other income, net for the year ended December 31, 2018 consisted of $2,255 related to a gain, net of costs incurred of $745, that was realized upon execution of a favorable $3,000 cash resolution of a contract dispute that arose in 2017. The Company included the $3,000 it was owed in other assets as of December 31, 2018. Also included in other income, net for the year ended December 31, 2018 was interest income of $868, offset partially by interest expense of $145. Other income, net for the year ended December 31, 2017 consisted of interest income of $224, which was partially offset by interest expense of $126. Comprehensive Income The Company had no items of comprehensive income, other than its net income for each of the periods presented. Adoption of Recently Issued Financial Accounting Standards ASC 842 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 it 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. In accordance with the new accounting standard, these leases will not have a ROU asset and associated lease liability on the balance sheet. Instead, rent will be recognized on a straight-line basis over the term of the lease. 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. None of the nonlease components identified were capitalized and are instead expensed as incurred. 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 an implicit rate that is readily available, 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. ASC 606 On May 28, 2014, the FASB issued ASC 606 – Revenue from Contracts with Customers , which amended the accounting standards for revenue recognition and expanded our disclosure requirements. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. On January 1, 2018 the Company adopted ASC 606 using the modified retrospective transition method, which resulted in an adjustment at January 1, 2018 to retained earnings for the cumulative effect of applying the standard to all contracts not completed as of the adoption date. Upon adoption we recorded $1,197 as an increase to retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The adoption resulted in an acceleration of the timing of revenue recognized for certain transactions where product that remained in the Company’s possession has been recognized as of the transaction date when all revenue recognition criteria have been met. The following table presents the effect of the adoption of ASC 606 on the Company’s consolidated balance sheets as of January 1, 2018: Adjustments Balance at due to Balance at December 31, 2017 ASC 606 January 1, 2018 Balance Sheet Assets Accounts receivable, net $ 449,682 $ 14,568 $ 464,250 Inventories 106,753 (10,869) 95,884 Prepaid expenses and other current assets 5,737 (132) 5,605 Long-term accounts receivable — 1,890 1,890 Other assets 5,638 (3,914) 1,724 Liabilities Accounts payable 194,257 (62) 194,195 Accrued expenses and other liabilities 31,096 (312) 30,784 Accrued payroll 22,662 291 22,953 Deferred income taxes 15,696 429 16,125 Stockholders' Equity Retained earnings $ 383,673 $ 1,197 $ 384,870 In addition to the timing of revenue recognition impacted by the above-described transactions, upon adoption of ASC 606, the amount of revenue to be recognized prospectively was affected by the presentation of revenue transactions as an agent instead of principal in certain transactions. Specifically, revenue related to the sale of cloud products, as well as certain security software, is now being recognized net of costs as the Company determined that it acts as an agent in these transactions. These sales are recorded on a net basis at a point in time when the Company’s vendor and the customer accept the terms and conditions in the sales arrangement. In addition, the Company sells third-party software maintenance that is delivered over time either separately or bundled with the software license. The Company has determined that software maintenance is a distinct performance obligation that it does not control, and accordingly, the Company acts as an agent in these transactions and recognizes the related revenue on a net basis under ASC 606. The Company previously recognized revenue for cloud products, security software, and software maintenance on a gross basis (i.e., acting as a principal). This change reduced both net sales and cost of sales with no impact on reported gross profit as compared to the Company’s prior accounting policies. The following tables present the effect of the adoption of ASC 606 on the Company’s consolidated income statement and balance sheet for the year ended December 31, 2018 and as of December 31, 2018, respectively: Year Ended December 31, 2018 Balances without As Adoption of Reported Adjustments ASC 606 Income statement Revenues Net sales $ 2,699,489 $ 404,690 $ 3,104,179 Costs and expenses Cost of sales 2,288,403 403,737 2,692,140 Income from operations 85,686 750 86,436 Income before taxes 88,664 750 89,414 Net income 64,592 526 65,118 December 31, 2018 Balances without As Adoption of Reported Adjustments ASC 606 Balance Sheet Assets Accounts receivable, net $ 447,698 $ (6,949) $ 440,749 Inventories 119,195 4,798 123,993 Prepaid expenses and other current assets 9,661 148 9,809 Other assets 1,211 3,914 5,125 Liabilities Accrued expenses and other liabilities $ 33,840 $ 2,904 $ 36,744 Accrued payroll 24,319 (116) 24,203 Deferred income taxes 17,184 (219) 16,965 Stockholders' Equity Retained earnings $ 441,010 $ (657) $ 440,353 The Company has elected the use of certain practical expedients in its adoption of the new standard, which includes continuing to record revenue reported net of applicable taxes imposed on the related transaction and the application of the new standard to all arrangements not completed as of the adoption date. The Company has also elected to use the practical expedient to not account for the shipping and handling as separate performance obligations. Adoptions of the standard related to revenue recognition had no net impact on our consolidated statement of cash flows. ASU 2016-09 In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. The Company adopted this standard on January 1, 2017. The new standard simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. Under this guidance, a company recognizes all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement. This change eliminates the notion of the additional paid-in capital pool and reduces the complexity in accounting for excess tax benefits and tax deficiencies. The primary impact of the adoption was the recognition of excess tax benefits related to equity compensation in the Company’s provision for income taxes rather than paid-in capital, which is a change required to be applied on a prospective basis in accordance with the new guidance. There were no unrecognized excess tax benefits at implementation. Accordingly, the Company recorded discrete income tax benefits in the consolidated statements of income of $1,054 in the year ended December 31, 2017, for excess tax benefits related to equity compensation. The corresponding cash flows were reflected in cash provided by operating activities instead of financing activities, as was previously required. The Company adopted the cash flow presentation that requires presentation of excess tax benefits within operating activities on a prospective basis. Additionally, under ASU 2016-09, the Company has elected to continue to estimate equity award forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. Additional amendments to the accounting for income taxes and minimum statutory withholding tax requirements had no impact on the Company’s results of operations. The presentation requirements for cash flows related to employee taxes paid for withheld shares also had no impact to any of the periods presented in the Company’s consolidated statements of cash flows since such cash flows have historically been presented as a financing activity. 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 standard in the first quarter of 2020 and it does not expect the adoption 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 receivable it determines may not be 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	12 Months Ended
	Dec. 31, 2019
Revenue
Revenue	2. REVENUE Nature of Products and Services Information technology (“IT”) products typically represent a distinct performance obligation, and revenue is recognized at the point in time when control is transferred to the customer which is generally upon delivery to the customer. The Company recognizes revenue as the principal in the transaction with the customer (i.e., on a gross basis), as it controls the product prior to delivery to the customer and derive the economic benefits from the sales transaction given the Company’s control over customer pricing. The Company does not recognize revenue for goods that remain in its physical possession before the customer has the ability to direct the use of, and obtain substantially all of the remaining benefits from the products, the goods are ready for physical transfer to and identified as belonging to the customer, and when the Company has no ability to use the product or to direct it to another customer. Licenses for on-premise software provide the customer with a right to take possession of the software. Customers may purchase perpetual licenses or enter into subscriptions to the licensed software. The Company is the principal in these transactions and recognizes revenue for the on-premise license at the point in time when the software is made available to the customer and the commencement of the term of the software license or when the renewal term begins, as applicable. For certain on-premise licenses for security software, the customer derives substantially all of the benefit from these arrangements through the third-party delivered software maintenance, which provides software updates and other support services. The Company does not have control over the delivery of these performance obligations, and accordingly the Company is the agent in these transactions. The Company recognizes revenue for security software net of the related costs of sales at the point in time when its vendor and customer accept the terms and conditions in the sales arrangement. Cloud products allow customers to use hosted software over the contractual period without taking possession of the software and are provided on a subscription basis. The Company does not exercise control over these products or services and therefore is an agent in these transactions. The Company recognizes revenue for cloud products net of the related costs of sales at the point in time when its vendor and customer accept the terms and conditions in the sales arrangements. Certain software sales include on-premise licenses that are combined with software maintenance. Software maintenance conveys rights to updates, bug fixes and help desk support, and other support services transferred over the underlying contract period. On-premise licenses are considered distinct performance obligations when sold with the software maintenance, as the Company sells these items separately. The Company recognizes revenue related to the software maintenance as the agent in these transactions because it do not have control over the on-going software maintenance service. Revenue allocated to software maintenance is recognized at the point in time when the Company’s vendor and customer accept the terms and conditions in the sales arrangements. Certain of the Company’s larger customers are offered the opportunity by vendors to purchase software licenses and maintenance under enterprise agreements (“EAs”). Under EAs, customers are considered to be compliant with applicable license requirements for the ensuing year, regardless of changes to their employee base. Customers are charged an annual true-up fee for changes in the number of users over the year. With most EAs, the Company’s vendors will transfer the license and bill the customer directly, paying resellers, such as the Company, an agency fee or commission on these sales. The Company records these agency fees as a component of net sales as earned and there is no corresponding cost of sales amount. In certain instances, the Company invoices the customer directly under an EA and account for the individual items sold based on the nature of each item. The Company’s vendors typically dictate how the EA will be sold to the customer. The Company also offers extended service plans (“ESP”) on IT products, both as part of the initial arrangement and separately from the IT products. The Company recognizes revenue related to ESP as the agent in the transaction because it does not have control over the on-going ESP service and does not provide any service after the sale. Revenue allocated to ESP is recognized at the point in time when the Company’s vendor and customer accept the terms and conditions in the sales arrangement. The Company uses its own engineering personnel to assist in projects involving the design and installation of systems and networks, and also engages third-party service providers to perform warranty maintenance, implementations, asset disposal, and other services. Service revenue is recognized in general over time as the Company performs the underlying services and satisfies its performance obligations. The Company evaluates such engagements to determine whether it is the principal or the agent in each transaction. For those transactions in which we do not control the service, the Company acts as an agent and recognizes the transaction revenue on a net basis at a point in time when the vendor and customer accept the terms and conditions in the sales arrangement. All amounts billed to a customer in a sales transaction related to shipping and handling, if any, represent revenues earned for the goods provided, and these amounts have been included in net sales. Costs related to shipping and handling billing are classified as cost of sales. Sales are reported net of sales, use, or other transaction taxes that are collected from customers and remitted to taxing authorities. Significant Judgments The Company’s contracts with customers often include promises to transfer multiple products or services to a customer. Determining whether the Company is the agent or the principal and whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. The Company estimates the standalone selling price (“SSP”) for each distinct performance obligation when a single arrangement contains multiple performance obligations and the fulfillment occurs at different points of times. The Company maximizes the use of observable inputs in the determination of the estimate for SSP for the items that it does not sell separately, including on-premise licenses sold with software maintenance, and IT products sold with ESP. In instances where SSP is not directly observable, such as when the Company does not sell the product or service separately, the Company determines the SSP using information that may include market conditions and other observable inputs. The Company provides its customers with a limited thirty-day right of return, which is generally limited to defective merchandise, and gives rise to variable consideration. Revenue is recognized based on the most likely amount to which it is expected to be entitled. The estimated variable consideration is included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur once the uncertainty is resolved. The Company makes estimates of product returns based on significant historical experience. The Company records its sales return reserve as a reduction of revenues and either as reduction of accounts receivable or, for customers who have already paid, as accrued expenses and as a reduction of cost of sales and an associated right of return asset. Description of Revenue The Company disaggregates revenue from its arrangements with customers by type of products and services, as it believes this method best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The following tables represent a disaggregation of revenue from arrangements with customers for the twelve months ended December 31, 2019 and 2018, along with the reportable segment for each category. Twelve Months Ended December 31, 2019 Business Enterprise Public Sector Total Notebooks/Mobility $ 317,282 $ 322,530 166,132 $ 805,944 Desktops 127,373 154,602 63,949 345,924 Software 146,287 133,584 54,956 334,827 Servers/Storage 105,617 72,445 60,334 238,396 Net/Com Products 94,340 72,185 52,776 219,301 Displays and Sound 88,667 105,172 56,183 250,022 Accessories 98,890 211,772 46,647 357,309 Other Hardware/Services 81,593 121,530 65,188 268,311 Total net sales $ 1,060,049 $ 1,193,820 $ 566,165 $ 2,820,034 Twelve Months Ended December 31, 2018 Business Enterprise Public Sector Total Notebooks/Mobility $ 299,247 $ 272,589 138,818 $ 710,654 Desktops 108,096 126,643 53,569 288,308 Software 134,071 135,420 45,365 314,856 Servers/Storage 111,559 102,209 59,653 273,421 Net/Com Products 109,702 62,060 52,287 224,049 Displays and Sound 89,779 109,497 52,760 252,036 Accessories 95,342 214,102 43,696 353,140 Other Hardware/Services 80,122 142,622 60,281 283,025 Total net sales $ 1,027,918 $ 1,165,142 $ 506,429 $ 2,699,489 Contract Balances The following table provides information about contract liabilities from arrangements with customers as of December 31, 2019 and December 31, 2018: December 31, 2019 December 31, 2018 Contract liabilities, which are included in "Accrued expenses and other liabilities" $ 5,942 $ 2,679 Significant changes in the contract liability balances during the years ended December 31, 2019 and 2018 are as follows (in thousands): 2018 Balances at December 31, 2017 $ 2,914 Cash received in advance and not recognized as revenue 16,279 Amounts recognized as revenue as performance obligations satisfied (16,514) Balances at December 31, 2018 $ 2,679 2019 Balances at December 31, 2018 $ 2,679 Cash received in advance and not recognized as revenue 15,835 Amounts recognized as revenue as performance obligations satisfied (12,572) Balances at December 31, 2019 $ 5,942

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure
Goodwill and Other Intangible Assets	3. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill Goodwill and intangible assets with indefinite lives are subject to an annual impairment test as of November 30 and tested more frequently if events or circumstances occur that would indicate a potential decline in fair value. For 2018 and 2017, using both income and market valuation approaches, the Company has performed a two-step quantitative test to compare the fair value of its reporting units with their respective carrying values, including goodwill. If the fair values were determined to be less than the carrying values, the second step would be performed to measure the amounts, if any, of the impairment. For 2019, the Company performed a qualitative “Step 0” analysis. ASC 350—Intangible – Goodwill and Other states that an entity may assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. This analysis allows the Company to consider qualitative factors that might impact the carrying amount of its goodwill to determine whether a more detailed quantitative analysis would be necessary. Factors considered when performing the “Step 0” impairment assessment included the Company’s performance relative to historical and projected future operating results, macroeconomic conditions, industry and market trends, cost factors that may have a negative impact on earnings and cash flows, changes in the Company’s stock price and market capitalization, and other relevant entity-specific events. Based on the analysis, there were no indications that an impairment was more than likely to exist. Goodwill is held by the Company’s Large Account and SMB segments. The Company concluded that the fair values of the domain name and the two reporting units each exceeded the respective carrying values, and accordingly, an impairment was not identified in the annual test. The Company also did not identify any events or circumstances that would indicate that it is more likely than not that the carrying values of the reporting units or the domain name were in excess of the respective fair values during the year ended December 31, 2019. The carrying amount of goodwill for the periods presented is detailed below: Balance at December 31, 2018 SMB Large Account Public Sector Total Goodwill, gross $ 8,539 $ 66,236 $ 7,634 $ 82,409 Accumulated impairment losses (1,173) ─ (7,634) (8,807) Net balance $ 7,366 $ 66,236 $ — $ 73,602 Balance at December 31, 2019 SMB Large Account Public Sector Total Goodwill, gross $ 8,539 $ 66,236 $ 7,634 $ 82,409 Accumulated impairment losses (1,173) ─ (7,634) (8,807) Net balance $ 7,366 $ 66,236 $ — $ 73,602 Intangible Assets At December 31, 2019, the Company’s intangible assets included a domain name for $450, which has an indefinite life and is not subject to amortization. In addition, in 2016 the Company acquired customer relationships from its Softmart and GlobalServe acquisitions, which will be amortized on a straight-line basis over their estimated useful lives of 10 years. The Company’s remaining intangible assets are amortized in proportion to the estimates of the future cash flows underlying the valuation of the assets. Intangible assets and related accumulated amortization are detailed below: December 31, 2019 December 31, 2018 Estimated Gross Accumulated Net Gross Accumulated Net Useful Lives Amount Amortization Amount Amount Amortization Amount Customer list 8 $ 3,400 $ 3,400 $ — $ 3,400 $ 3,364 $ 36 Tradename 5 1,190 1,190 — 1,190 1,190 — Customer relationships 10 12,200 4,343 7,857 12,200 3,122 9,078 Total intangible assets $ 16,790 $ 8,933 $ 7,857 $ 16,790 $ 7,676 $ 9,114 In 2019, 2018, and 2017, the Company recorded amortization expense of $1,257, $1,461, and $1,561, respectively. The estimated amortization expense relating to intangible assets in each of the five succeeding years and thereafter is as follows: For the Years Ended December 31, 2020 $ 1,220 2021 1,220 2022 1,220 2023 1,220 2024 1,220 2025 and thereafter 1,757 $ 7,857

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE	12 Months Ended
	Dec. 31, 2019
Accounts Receivable
Accounts Receivable	4. ACCOUNTS RECEIVABLE Accounts receivable consisted of the following: December 31, 2019 2018 Trade $ 498,721 $ 401,530 Vendor consideration, returns and other 56,459 52,560 Due from employees 114 107 Total gross accounts receivable 555,294 454,197 Allowances for: Sales returns (3,466) (3,397) Doubtful accounts (2,202) (3,102) Accounts receivable, net $ 549,626 $ 447,698

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2019
Property and Equipment
Property and Equipment	5. PROPERTY AND EQUIPMENT Property and equipment consisted of the following: December 31, 2019 2018 Computer software, including licenses and internally-developed software $ 95,214 $ 75,528 Furniture and equipment 36,098 36,147 Leasehold improvements 8,516 8,102 Total 139,828 119,777 Accumulated depreciation and amortization (75,602) (67,978) Property and equipment, net $ 64,226 $ 51,799 We recorded depreciation and amortization expense for property and equipment of $12,057, $12,602, and $10,278 in 2019, 2018, and 2017, respectively.

LEASES

LEASES	12 Months Ended
	Dec. 31, 2019
Lessee Disclosure [Abstract]
Leases	6. LEASES The Company leases certain facilities from a related party, which is affiliated with the Company through common ownership. Included in the right-of-use asset as of December 31, 2019 was $4,689 and a corresponding lease liability of $4,689 associated with related party leases. As of December 31, 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. Twelve months ended December 31, 2019 Related Parties Others Total Lease Cost Capitalized operating lease cost $ 1,516 $ 3,173 $ 4,689 Short-term lease cost 163 7 170 Total lease cost $ 1,679 $ 3,180 $ 4,859 Other Information Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: Operating cash flows $ 1,516 $ 3,420 $ 4,936 Weighted-average remaining lease term (in years): Capitalized operating leases 3.88 6.54 5.69 Weighted-average discount rate: Capitalized operating leases As of December 31, 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 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 2025 — 876 876 Thereafter — 584 584 $ 5,040 $ 10,885 $ 15,925 Imputed interest (1,279) Lease liability balance at December 31, 2019 $ 14,646 As of December 31, 2019, the ROU asset had a balance of $13,842. The long-term lease liability was $10,330 and the short-term lease liability, which is included in accrued expenses and other liabilities in the consolidated balance sheets, was $4,316. 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 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 $ 5,062 $ 9,557 $ 14,619

ACCRUED EXPENSES AND OTHER LIAB

ACCRUED EXPENSES AND OTHER LIABILITIES	12 Months Ended
	Dec. 31, 2019
Accrued Expenses and Other Liabilities
Accrued Expenses and Other Liabilities	7. ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities consisted of the following: December 31, 2019 2018 Customer and vendor deposits $ 13,871 $ 8,880 Dividends payable 8,427 8,453 Sales taxes 9,374 7,632 Short-term lease liability 4,316 — Other 9,244 8,875 Accrued expenses and other liabilities $ 45,232 $ 33,840

BANK BORROWINGS

BANK BORROWINGS	12 Months Ended
	Dec. 31, 2019
Bank Borrowings
Bank Borrowings	8. BANK BORROWINGS The Company has a $50,000 credit facility collateralized by its account receivables that expires February 10, 2022. This facility can be increased, at the Company’s option, to $80,000 for permitted acquisitions or other uses authorized by the lender on substantially the same terms. Amounts outstanding under this facility bear interest at the one-month London Interbank Offered Rate (“LIBOR”) (1.76% at December 31, 2019) , plus a spread based on our funded debt ratio, or in the absence of LIBOR, the prime rate (4.75% at December 31, 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 the Company’s consolidated Adjusted EBITDA could limit its potential borrowing capacity under the credit facility. The Company had no outstanding bank borrowings at December 31, 2019 or 2018, and accordingly, the entire $50,000 facility was available for borrowings under the credit facility.

STOCKHOLDERS' EQUITY AND SHARE-

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION	12 Months Ended
	Dec. 31, 2019
Stockholders' Equity and Share-Based Compensation
Stockholders' Equity and Share-Based Compensation	9. STOCKHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION Preferred Stock The Company’s Amended and Restated Certificate of Incorporation (the “Restated Certificate”) authorizes the issuance of up to 10,000 shares of preferred stock, $.01 par value per share (the “Preferred Stock”). Under the terms of the Restated Certificate, the Board is authorized, subject to any limitations prescribed by law, without stockholder approval, to issue by a unanimous vote such shares of Preferred Stock in one or more series. Each such series of Preferred Stock shall have such rights, preferences, privileges, and restrictions, including voting rights, dividend rights, redemption privileges, and liquidation preferences, as shall be determined by the Board. There were no preferred shares outstanding at December 31, 2019 or 2018. Share Repurchase Authorization On December 17, 2018, the Company’s Board approved a new share repurchase program authorizing up to $25,000 in additional share repurchases. There is no fixed termination date for this repurchase program. Purchases may be made in open-market transactions, block transactions on or off an exchange, or in privately negotiated transactions. The timing and amount of any share repurchases will be based on market conditions and other factors. In 2019, the Company repurchased 135 shares for $4,478 under Board-authorized repurchase programs. As of December 31, 2019, the Company has repurchased an aggregate of 2,351 shares for $32,086 under Board-authorized repurchase programs, and the maximum approximate dollar value of shares that may yet be purchased under the Company’s existing Board-authorized program is $22,914. Dividend Payments The following table summarizes the Company’s special cash dividends declared in the three years ended December 31, 2019: 2019 2018 2017 Dividend per share $ 0.32 $ 0.32 $ 0.34 Stockholder record date 12/27/2019 12/28/2018 12/29/2017 Total dividend $ 8,427 $ 8,452 $ 9,122 Payment date 1/10/2020 1/11/2019 1/12/2018 The dividends paid in January 2020, 2019 and 2018 were included in accrued expenses and other liabilities at December 31, 2019, 2018 and 2017, respectively. The Company has no current plans to pay additional cash dividends on its common stock in the foreseeable future, and declaration of any future cash dividends will depend upon the Company’s financial position, strategic plans, and general business conditions. Equity Compensation Plan Descriptions In 2007, the Board adopted and the Company’s stockholders approved the 2007 Stock Incentive Plan. In 2010, the Board adopted and the stockholders approved the Amended and Restated 2007 Stock Incentive Plan (the “2007 Plan”), which, among other things, extended the term of the 2007 Plan to 2020. In May 2019, the Company’s stockholders approved an amendment to the 2007 Plan, which authorized the issuance of 1,900 shares of common stock. Under the terms of the 2007 Plan, the Company is authorized, for a ten-year period, to grant options, stock appreciation rights, nonvested stock, nonvested stock units, and other stock-based awards to employees, officers, directors, and consultants. As of December 31, 2019, there were 85 shares eligible for future grants under the 2007 Plan. 1997 Employee Stock Purchase Plan In November 1997, the Board adopted and the Company’s stockholders approved the 1997 Employee Stock Purchase Plan (the “Purchase Plan”). The Purchase Plan authorizes the issuance of common stock to participating employees. Under the Purchase Plan, as amended, employees are eligible to purchase company stock at 95% of the purchase price as of the last business day of each six-month offering period. An aggregate of 1,203 shares of common stock has been reserved for issuance under the Purchase Plan, of which 1,188 shares have been purchased. Accounting for Share-Based Compensation The Company measures the grant date fair value of equity awards given to employees and recognize that cost, adjusted for forfeitures, over the period that services are performed. The Company values grants with multiple vesting periods as a single award, estimate expected forfeitures based upon historical patterns of employee turnover, and record share-based compensation as a component of SG&A expenses. In 2018 and in 2019, the Company granted nonvested stock units. No equity awards were granted in 2017. The following table summarizes the components of share-based compensation recorded as expense for the three years ended December 31, 2019: 2019 2018 2017 Pre-tax expense for nonvested units $ 1,863 $ 1,080 $ 741 Tax benefit (505) (293) (297) Net effect on net income $ 1,358 $ 787 $ 444 In 2018 and in 2019, the Company issued nonvested stock units that settle in stock and vest over periods up to ten years. No awards were issued in 2017. Recipients of nonvested stock units do not possess stockholder rights. The fair value of nonvested stock units is based on the end of day market value of our common stock on the grant date. The following table summarizes our nonvested stock unit activity in 2019: Nonvested Stock Units Weighted-Average Grant Date Shares Fair Value Nonvested at January 1, 2019 423 $ 23.16 Granted 153 42.06 Vested (73) 21.73 Canceled (30) 27.71 Nonvested at December 31, 2019 473 29.20 The weighted-average grant-date fair value of nonvested stock units granted in 2019 and 2018 was $42.06 and $24.90, respectively. No awards were granted in 2017. The total fair value of nonvested stock units that vested in 2019, 2018, and 2017 was $3,476, $1,635, and $1,638, respectively. Unearned compensation cost related to the nonvested portion of outstanding nonvested stock units was $12,379 as of December 31, 2019, and is expected to be recognized over a weighted-average period of approximately 5.6 years. The aggregate intrinsic value of the nonvested stock units at December 31, 2019, which is calculated based on the positive difference between the fair value of the Company’s stock on December 31, 2019 and the grant price of the underlying awards, was $23,489. Stock Equivalent Units The Company has also issued stock equivalent units, (“SEUs”), which settle in cash and vest ratably over four years, to non-executive employees. The fair value of these liability awards is based on the closing market price of the Company’s common stock, and is remeasured at the end of each reporting period until the SEUs vest. The Company reports the compensation as a component of SG&A expense and the related liability as accrued payroll on the consolidated balance sheets. 2019 2018 2017 Units issued — — 100 Compensation expense $ 1,802 $ 1,871 $ 1,429

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2019
Income Taxes
Income Taxes	10. INCOME TAXES The provision for income taxes consisted of the following: Years Ended December 31, 2019 2018 2017 Current: Federal $ 20,481 $ 16,643 $ 21,813 State 7,101 6,370 4,861 Total current 27,582 23,013 26,674 Deferred: Federal 2,186 1,087 (5,132) State 800 (28) 1,226 Total deferred 2,986 1,059 (3,906) Net provision $ 30,568 $ 24,072 $ 22,768 The components of the deferred taxes at December 31, 2019 and 2018 are as follows: 2019 2018 Deferred tax assets: Provisions for doubtful accounts $ 581 $ 825 Inventory costs capitalized for tax purposes 134 112 Inventory valuation reserves 253 280 Sales return reserves 134 132 Deductible expenses, primarily employee-benefit related 177 319 Accrued compensation 2,448 2,014 Operating lease liability 3,858 — Other 1,503 1,254 Compensation under non-statutory stock option agreements 143 82 State tax loss carryforwards 1,091 958 Federal benefit for uncertain state tax positions — 177 Total gross deferred tax assets 10,322 6,153 Less: Valuation allowance (992) (839) Net deferred tax assets 9,330 5,314 Deferred tax liabilities: Goodwill and other intangibles (13,287) (12,850) Property and equipment (12,482) (9,548) Right-of-use assets (3,647) — Prepaid expenses (84) (100) Total gross deferred tax liabilities (29,500) (22,498) Net deferred tax liability $ (20,170) $ (17,184) Current deferred tax assets $ — $ — Noncurrent deferred tax liability (20,170) (17,184) Net deferred tax liability $ (20,170) $ (17,184) The Company has deferred tax assets from state net operating loss carryforwards aggregating $1,381 at December 31, 2019 representing state tax benefits, net of federal taxes, of approximately $1,091. These loss carryforwards are subject to between five, fifteen, and twenty-year carryforward periods, with $4 expiring after 2020, $3 expiring after 2021, $3 expiring after 2022, $3 expiring after 2023, $3 expiring after 2024, $1,292 expiring beyond 2024, and $73 with no expiration. The Company has provided valuation allowances of $992 and $839 at December 31, 2019 and 2018, respectively, against the state tax loss carryforwards, representing the portion of carryforward losses that the Company believes are not likely to be realized. The net change in the total valuation allowance reflects a $153, $94, and $260 increase in 2019, 2018, and 2017, respectively. The valuation allowance was increased in 2019, 2018, and 2017 to offset the corresponding increase to the deferred tax asset associated with state net operating loss carryforwards. A reconciliation of the Company’s 2019, 2018, and 2017 income tax provision to total income taxes at the statutory federal tax rate is as follows: 2019 2018 2017 Federal income taxes, at statutory tax rate $ 23,663 $ 18,619 $ 27,169 State income taxes, net of federal benefit 6,977 5,157 3,843 Nondeductible expenses 651 454 (113) Remeasurement of net deferred tax balances — — (7,815) Other, net (723) (158) (316) Income tax provision $ 30,568 $ 24,072 $ 22,768 On December 22, 2017, the U.S. government enacted comprehensive tax legislation (the “Tax Act”), which significantly revises the ongoing U.S. corporate income tax law by lowering the U.S. federal corporate income tax rate from 35.0% to 21.0%, and setting limitations on deductibility of certain costs. This rate reduction, which took effect on January 1, 2018, required the revaluation of the Company’s net deferred tax liability. The revaluation resulted in the recording of an income tax benefit of $7.7 million for the fourth quarter of 2017. The Company files one consolidated U.S. Federal income tax return that includes all of its subsidiaries as well as several consolidated, combined, and separate company returns in many U.S. state tax jurisdictions. The tax years 2015-2018 remain open to examination by the major state taxing jurisdictions in which the Company files. The tax years 2016-2018 remain open to examination by the Internal Revenue Service. A reconciliation of unrecognized tax benefits for 2019, 2018, and 2017, is as follows: 2019 2018 2017 Balance at January 1, $ 368 $ 368 $ 684 Additions on tax positions of prior years — — — Lapses of applicable statute of limitations (368) — (159) Settlements — — (157) Balance at December 31, $ — $ 368 $ 368 The unrecognized tax benefits decreased by $368 related to the expiration of various state statute of limitation periods. Previously, the Company recognized interest and penalties related to unrecognized income tax benefits as a component of income tax expense, and the corresponding accrual was included as a component of our liability for unrecognized income tax benefits. At December 31, 2018 and 2017, accrued interest aggregated $481 and accrued penalties aggregated $93. The Company did not recognize any interest and penalties during the years ended December 31, 2019, 2018 or 2017.

EMPLOYEE BENEFIT PLAN

EMPLOYEE BENEFIT PLAN	12 Months Ended
	Dec. 31, 2019
Employee Benefit Plan
Employee Benefit Plan	11. EMPLOYEE BENEFIT PLAN The Company has a contributory profit-sharing and employee savings plan covering all qualified employees. No contributions to the profit-sharing element of the plan were made by the Company in 2019, 2018, or 2017. The Company made matching contributions to the employee savings element of such plan of $2,778, $2,538, and $2,396 in 2019, 2018, and 2017, respectively.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2019
Commitments and Contingencies
Commitments And Contingencies	12. COMMITMENTS AND CONTINGENCIES Contingencies The Company is subject to various legal proceedings and claims, including patent infringement claims, which have arisen during the ordinary course of business. In the opinion of management, the outcome of such matters is not expected to have a material effect on our business, financial position, results of operations, or cash flows. The Company records a liability when its believes that a loss is both probable and reasonably estimable. On a quarterly basis, the Company reviews each of these legal proceedings to determine whether it is probable, reasonably possible, or remote that a liability has been incurred and, if it is at least reasonably possible, whether a range of loss can be reasonably estimated. Significant judgment is required to determine both the likelihood of there being a loss and the estimated amount of such loss. Until the final resolution of such matters, there may be an exposure to loss in excess of the amount recorded, and such amounts could be material. The Company expenses legal fees in the period in which they are incurred. The Company is subject to audits by states on sales and income taxes, employment matters, and other assessments. Additional liabilities for these and other audits could be assessed, and such outcomes could have a material negative impact on our financial position, results of operations, and cash flows.

SEGMENT AND RELATED DISCLOSURES

SEGMENT AND RELATED DISCLOSURES	12 Months Ended
	Dec. 31, 2019
Segment and Related Disclosures
Segment and Related Disclosures	13. SEGMENT AND RELATED DISCLOSURES The internal reporting structure used by the Company’s chief operating decision maker (“CODM”) to assess performance and allocate resources determines the basis for our reportable operating segments. The Company’s CODM is its Chief Executive Officer, and he evaluates operations and allocates resources based on a measure of operating income. The Company’s operations are organized under three reporting 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 government and educational institutions. In addition, the Headquarters/Other group provides services in areas such as finance, human resources, information technology, marketing, and product management. Most of the operating costs associated with the Headquarters/Other group functions are charged to the operating segments based on their estimated usage of the underlying functions. The Company reports these charges to the operating segments as “Allocations.” Certain headquarters costs relating to executive oversight and other fiduciary functions that are not allocated to the operating segments are included under the heading of Headquarters/Other in the tables below. Net sales presented below exclude inter-segment product revenues. Segment information applicable to the Company’s reportable operating segments for the years ended December 31, 2019, 2018, and 2017 is shown below: Years Ended December 31, 2019 2018 2017 Net sales: Business Solutions $ 1,060,049 $ 1,027,918 $ 1,158,639 Enterprise Solutions 1,193,820 1,165,142 1,131,823 Public Sector Solutions 566,165 506,429 621,421 Total net sales $ 2,820,034 $ 2,699,489 $ 2,911,883 Operating income (loss): Business Solutions $ 52,557 $ 40,188 $ 40,425 Enterprise Solutions 67,837 61,663 50,163 Public Sector Solutions 7,319 (2,260) 953 Headquarters/Other (15,741) (13,905) (14,014) Total operating income 111,972 85,686 77,527 Other income, net 707 2,978 98 Income before taxes $ 112,679 $ 88,664 $ 77,625 Selected operating expense: Depreciation and amortization: Business Solutions $ 596 $ 632 $ 592 Enterprise Solutions 2,474 2,318 2,163 Public Sector Solutions 89 112 159 Headquarters/Other 10,155 11,001 8,925 Total depreciation and amortization $ 13,314 $ 14,063 $ 11,839 Total assets: Business Solutions $ 308,522 $ 274,202 Enterprise Solutions 548,666 477,296 Public Sector Solutions 91,826 66,000 Headquarters/Other (11,679) (12,143) Total assets $ 937,335 $ 805,355 The assets of the Company’s operating segments presented above consist primarily of accounts receivable, net intercompany receivable, goodwill, and other intangibles. Goodwill of $66,236 and $7,366 is held by the Enterprise Solutions and Business Solutions segments, respectively, as of December 31, 2019. Assets reported under the Headquarters/Other group are managed by corporate headquarters, including cash, inventory, property and equipment and intercompany balance, net. Total assets for the Headquarters/Other group are presented net of intercompany balances eliminations of $39,813 and $19,019 for the years ended December 31, 2019 and 2018, respectively. The Company’s capital expenditures consist largely of IT hardware and software purchased to maintain or upgrade its management information systems. These systems serve all of the Company’s subsidiaries, to varying degrees, and as a result, the CODM does not evaluate capital expenditures on a segment basis. Substantially, all of the Company’s sales in 2019, 2018, and 2017 were made to customers located in the United States. Shipments to customers located in foreign countries were not more than 2% of total net sales in 2019, 2018, and 2017. All of the Company’s assets at December 31, 2019 and 2018 were located in the United States. The Company’s primary target customers are SMBs, medium-to-large corporate accounts, and federal, state, and local government agencies, educational institutions, and medium-to-large corporate accounts. No single customer accounted for more than 4% of total net sales in 2019, 2018, or 2017. While no single agency of the federal government comprised more than 3% of total sales, aggregate sales to the federal government were 6.9%, 5.4%, and 7.8% in 2019, 2018, and 2017, respectively.

QUARTERLY FINANCIAL RESULTS (UN

QUARTERLY FINANCIAL RESULTS (UNAUDITED)	12 Months Ended
	Dec. 31, 2019
Quarterly Financial Results (Unaudited)
Quarterly Financial Results (Unaudited)	14. QUARTERLY FINANCIAL RESULTS (UNAUDITED) The following table sets forth certain unaudited quarterly data of the Company for each of the calendar quarters in 2019 and 2018. This information has been prepared on the same basis as the annual financial statements, and all necessary adjustments, consisting only of normal recurring adjustments, have been included in the amounts stated below to present fairly the selected quarterly information when read in conjunction with the annual financial statements and the notes thereto included elsewhere in this document. The quarterly operating results are not necessarily indicative of future results of operations. Quarters Ended March 31, June 30, September 30, December 31, 2019 2019 2019 2019 Net sales $ 632,921 $ 741,076 $ 729,410 $ 716,627 Cost of sales 533,574 624,089 610,547 600,514 Gross profit 99,347 116,987 118,863 116,113 Selling, general and administrative expenses 81,235 84,664 86,226 86,510 Restructuring and other charges 703 — — — Income from operations 17,409 32,323 32,637 29,603 Other income, net 198 184 62 263 Income before taxes 17,607 32,507 32,699 29,866 Income tax provision (4,880) (8,839) (8,949) (7,900) Net income $ 12,727 $ 23,668 $ 23,750 $ 21,966 Earnings per common share: Basic $ 0.48 $ 0.90 $ 0.90 $ 0.84 Diluted $ 0.48 $ 0.89 $ 0.90 $ 0.83 Weighted average common shares outstanding: Basic 26,359 26,337 26,323 26,322 Diluted 26,525 26,494 26,479 26,523 Quarters Ended March 31, June 30, September 30, December 31, 2018 2018 2018 2018 Net sales $ 624,895 $ 706,570 $ 658,504 $ 709,520 Cost of sales 528,523 599,102 558,060 602,718 Gross profit 96,372 107,468 100,444 106,802 Selling, general and administrative expenses 80,900 82,521 81,494 79,518 Restructuring and other charges — — — 967 Income from operations 15,472 24,947 18,950 26,317 Interest income, net 116 182 114 2,566 Income before taxes 15,588 25,129 19,064 28,883 Income tax provision (4,288) (6,903) (5,298) (7,583) Net income $ 11,300 $ 18,226 $ 13,766 $ 21,300 Earnings per common share: Basic $ 0.42 $ 0.68 $ 0.52 $ 0.80 Diluted $ 0.42 $ 0.68 $ 0.51 $ 0.80 Weighted average common shares outstanding: Basic 26,835 26,685 26,716 26,632 Diluted 26,916 26,820 26,902 26,766

SCHEDULE II - VALUATION AND QUA

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS	12 Months Ended
	Dec. 31, 2019
Schedule II - Valuation and Qualifying Accounts
Schedule II-Valuation And Qualifying Accounts	SCHEDULE I (amounts in thousands) Balance at Charged to Balance at Beginning Costs and Deductions/ End of of Period Expenses Write-Offs Period Description Allowance for Sales Returns Year Ended December 31, 2017 $ 3,709 32,399 (32,800) $ 3,308 Year Ended December 31, 2018 $ 3,308 28,504 (28,415) $ 3,397 Year Ended December 31, 2019 $ 3,397 27,943 (27,874) $ 3,466 Allowance for Doubtful Accounts Year Ended December 31, 2017 $ 2,310 1,658 (1,242) $ 2,726 Year Ended December 31, 2018 $ 2,726 1,680 (1,304) $ 3,102 Year Ended December 31, 2019 $ 3,102 25 (925) $ 2,202

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2019
Summary of Significant Accounting Policies
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of PC Connection, Inc. and its subsidiaries, all of which are wholly-owned. Intercompany transactions and balances are eliminated in consolidation.
Use of Estimates in the Preparation of Financial Statements	Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts and disclosures of assets and liabilities and the reported amounts and disclosures of revenue and expenses during the period. By nature, estimates are subject to an inherent degree of uncertainty. Actual results could differ from those estimates and assumptions.
Reclassification of Prior Year Presentation	Reclassification of Prior Year Presentation Certain 2017 amounts have been reclassified for consistency with current year presentation. Restructuring and other charges have been separated from selling, general, and administrative expenses on the Consolidated Statements of Income. These charges amount to $703, $967, and $3,636 for the years ending December 31, 2019, 2018, and 2017, respectively. This change in classification does not affect previously reported net income or earnings per share figures in the Consolidated Statements of Income.
Revenue Recognition	Revenue Recognition On January 1, 2018, the Company adopted ASC 606— Revenue from Contracts with Customers (“ASC 606”), which replaced existing revenue recognition rules with a comprehensive revenue measurement and recognition standard and expanded disclosure requirements. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company enters into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. In most instances, when several performance obligations are aggregated into one single transaction, these performance obligations are fulfilled at the same point in time. The Company accounts for an arrangement when it has approval and commitment from both parties, the rights are identified, the contract has commercial substance, and collectability of consideration is probable. The Company generally obtains oral or written purchase authorizations from its customers for a specified amount of product at a specified price, which constitutes an arrangement. Revenue is recognized at the amount expected to be collected, net of any taxes collected from customers, which are subsequently remitted to governmental authorities. The Company generally invoices for its products at the time of shipping, and accordingly there is not a significant financing component included in our arrangements. Prior to the adoption of ASC 606, revenue on product sales was recognized at the point in time when persuasive evidence of an arrangement existed, the price was fixed or determinable, delivery had occurred, and there was a reasonable assurance of collection of the sales proceeds. Service revenue was recognized over time as the services were performed. The Company evaluated such engagements to determine whether it or the third party assumed the general risk and reward of ownership in these transactions. This evaluation was the basis by which we determined that revenue from these transactions would be recognized on a gross or a net basis. In multiple-element revenue arrangements, each service performed and product delivered was considered a separate deliverable and qualified as a separate unit of accounting. For material multiple element arrangements, the Company allocated revenue based on vendor-specific objective evidence of fair value of the underlying services and products. In the absence of vendor-specific objective evidence, the Company would utilize third-party evidence to allocate the selling price. If neither vendor-specific objective evidence nor third-party evidence was available, the Company would estimate the selling price based on market price and company-specific factors .
Cost of Sales and Certain Other Costs	Cost of Sales and Certain Other Costs Cost of sales includes the invoice cost of the product, direct employee and third party cost of services, direct costs of packaging, inbound and outbound freight, and provisions for inventory obsolescence, adjusted for discounts, rebates, and other vendor allowances.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid short-term investments with original maturities of 90 days or less to be cash equivalents. The carrying value of our cash equivalents approximates fair value. The majority of payments due from credit card processors and banks for third-party credit card and debit card transactions process within one to five business days. All credit card and debit card transactions that process in less than seven days are classified as cash and cash equivalents. Amounts due from banks for credit card transactions classified as cash equivalents totaled $5,553 and $2,651 at December 31, 2019 and 2018, respectively.
Accounts Receivable	Accounts Receivable The Company performs ongoing credit evaluations of its customers and adjusts credit limits based on payment history and customer creditworthiness. The Company maintains an allowance for estimated doubtful accounts based on its historical experience and the customer credit issues identified. The Company’s customers do not post collateral for open accounts receivable. The Company monitors collections regularly and adjusts the allowance for doubtful accounts as necessary to recognize any changes in credit exposure. Trade receivables are written off in the period in which they are deemed uncollectible. Recoveries of trade receivables previously charged are recorded when received.
Inventories	Inventories Inventories (all finished goods) consisting of software packages, computer systems, and peripheral equipment, are stated at cost (determined under a weighted-average cost method which approximates the first-in, first-out method) or net realizable value, whichever is lower. Inventory quantities on hand are reviewed regularly, and allowances are maintained for obsolete, slow moving, and nonsalable inventory.
Vendor Consideration	Vendor Consideration The Company receives funding from merchandise vendors for price protections, discounts, product rebates, and other programs. These allowances are treated as a reduction of the vendor’s prices and are recorded as adjustments to cost of sales. Allowances for product rebates that require certain volumes of product sales or purchases are recorded as the related milestones are probable of being met.
Advertising Costs and Vendor consideration	Advertising Costs and Vendor Consideration Vendors have the ability to fund advertising activities for which the Company receives advertising consideration. This vendor consideration, to the extent that it represents specific reimbursements of incremental and identifiable costs, is offset against SG&A expenses. Advertising consideration that cannot be associated with a specific program or that exceeds the fair value of advertising expense associated with that program is classified as an offset to cost of sales. The Company’s vendor partners generally consolidate their funding of advertising and other marketing programs, and accordingly, the Company classifies substantially all vendor consideration as a reduction of cost of sales rather than a reduction of advertising expense. Other advertising costs are expensed as incurred. Advertising expense, which is classified as a component of SG&A expenses, totaled $19,407, $16,244, and $14,437, for the years ended December 31, 2019, 2018, and 2017, respectively.
Property and Equipment	Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization is provided for financial reporting purposes over the estimated useful lives of the assets ranging from three to seven years. Computer software, including licenses and internally developed software, is capitalized and amortized over lives generally ranging from three to seven years. Depreciation is recorded using the straight-line method. Leasehold improvements and facilities under capital leases are amortized over the terms of the related leases or their useful lives, whichever is shorter, whereas for income tax reporting purposes, they are amortized over the applicable tax lives. Costs incurred to develop internal-use software during the application development stage are recorded in property and equipment at cost. External direct costs of materials and services consumed in developing or obtaining internal-use computer software and payroll-related costs for employees developing internal-use computer software projects, to the extent of their time spent directly on the project and specific to application development, are capitalized. When events or circumstances indicate a potential impairment, the Company evaluates the carrying value of property and equipment based upon current and anticipated undiscounted cash flows. The Company recognizes impairment when it is probable that such estimated future cash flows will be less than the asset carrying value.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets The Company’s intangible assets consist of (1) goodwill, which is not subject to amortization; (2) an internet domain name, which is an indefinite-lived intangible not subject to amortization; and (3) amortizing intangibles, which consist of customer lists, trade names, and customer relationships, which are being amortized over their useful lives. Note 3 describes the annual impairment methodology that the Company uses each year in calculating the recoverability of goodwill and non-amortizing intangibles. This same impairment test is performed at other times during the course of a year should an event occur or circumstance change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Recoverability of amortizing intangible assets is assessed only when events have occurred that may give rise to impairment. When a potential impairment has been identified, forecasted undiscounted net cash flows of the operations to which the asset relates are compared to the current carrying value of the long-lived assets present in that operation. If such cash flows are less than such carrying amounts, long-lived assets including such intangibles, are written down to their respective fair values.
Concentrations	Concentrations Concentrations of credit risk with respect to trade account receivables are limited due to the large number of customers comprising the Company’s customer base. No single customer accounted for more than 4% of total net sales in 2019, 2018, and 2017. While no single agency of the federal government comprised more than 3% of total sales, aggregate sales to the federal government as a percentage of total net sales were 6.9%, 5.4%, and 7.8% in 2019, 2018, and 2017, respectively. Product purchases from Ingram Micro, Inc. (“Ingram”), the Company’s largest supplier, and Synnex accounted for approximately 21% and 14%, respectively, of the Company’s total product purchases in 2019. No other vendor supplied more than 10% of the Company’s total product purchases in the year. In addition to these vendors, product purchases from other distributors, such as Dell, HP Inc. and Tech Data comprised a total of 59% of our product purchases in 2019. The Company believes that, while it may experience some short-term disruption if products from Ingram, Synnex, or any of its other large suppliers become unavailable to us, alternative sources for these products are available. Products manufactured by Hewlett Packard Enterprise and HP Inc. collectively represented approximately 19% of the Company’s net sales in 2019, 18% in 2018 and 20% in 2017. We believe that in the event we experience either a short-term or permanent disruption of supply of HP products, such disruption would likely have a material adverse effect on the Company’s results of operations and cash flows.
Restructuring and other charges	Restructuring and other charges Restructuring and other charges are presented separately from SG&A expenses. Costs incurred were as follows: Year Ended December 31, 2019 2018 2017 Employee separations $ 553 $ 967 $ 640 Lease termination costs 150 — — Relocation expenses — — 84 Employee compensation — — 2,800 Other — — 112 Total restructuring and other charges $ 703 $ 967 $ 3,636 The restructuring and other charges recorded in 2019 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 amounts are included in accrued expenses at December 31, 2019. Also included in net restructuring charges were exit costs incurred associated with the closing of one of our office facilities. The restructuring and other charges recorded in 2018 were related to a reduction in workforce at our Business Solutions, Public Sector Solutions, and Headquarter segments and included cash severance payments and other related benefits. The restructuring and other charges recorded in 2017 were primarily driven by a reduction in workforce at our Headquarters segment, along with costs related to the Softmart business, which was acquired in 2016, including expenses to retain certain key personnel brought over in the acquisition. Also in 2017, we incurred additional expense of $2,700 related to a one-time cash bonus paid to all non-executive employees at the end of the year. Overall, restructuring and other charges consist primarily of employee termination benefits, which are accrued in the period incurred and paid within a year of termination. Included in accrued expenses at December 31, 2019, 2018, and 2017 were $110, $784, and $2, respectively, related to unpaid employee termination benefits. The amount accrued as of December 31, 2019 is expected to be paid in 2020. Other restructuring-related charges such as acquisition costs, relocation expenses and significant marketing campaigns are expensed and paid as incurred. All planned restructuring and other charges were incurred as of December 31, 2019 and we have no ongoing restructuring plans.
Earnings Per Share	Earnings Per Share Basic earnings per common share is computed using the weighted average number of shares outstanding. Diluted earnings per share is computed using the weighted average number of shares outstanding adjusted for the incremental shares attributable to nonvested stock units and stock options outstanding, if dilutive. The following table sets forth the computation of basic and diluted earnings per share: 2019 2018 2017 Numerator: Net income $ 82,111 $ 64,592 $ 54,857 Denominator: Denominator for basic earnings per share 26,335 26,717 26,771 Dilutive effect of employee stock awards 170 137 120 Denominator for diluted earnings per share 26,505 26,854 26,891 Earnings per share: Basic $ 3.12 $ 2.42 $ 2.05 Diluted $ 3.10 $ 2.41 $ 2.04 For the years ended December 31, 2019, 2018, and 2017, the Company did not exclude any outstanding nonvested stock units or stock options from the computation of diluted earnings per share because including them would have had an anti-dilutive effect.
Other Income, Net	Other Income, Net Other income, net for the year ended December 31, 2019 consisted of interest income of $810, which was partially offset by interest expense of $103. Other income, net for the year ended December 31, 2018 consisted of $2,255 related to a gain, net of costs incurred of $745, that was realized upon execution of a favorable $3,000 cash resolution of a contract dispute that arose in 2017. The Company included the $3,000 it was owed in other assets as of December 31, 2018. Also included in other income, net for the year ended December 31, 2018 was interest income of $868, offset partially by interest expense of $145. Other income, net for the year ended December 31, 2017 consisted of interest income of $224, which was partially offset by interest expense of $126.
Comprehensive Income	Comprehensive Income The Company had no items of comprehensive income, other than its net income for each of the periods presented.
Recently Issued Financial Accounting Standards	Adoption of Recently Issued Financial Accounting Standards ASC 842 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 it 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. In accordance with the new accounting standard, these leases will not have a ROU asset and associated lease liability on the balance sheet. Instead, rent will be recognized on a straight-line basis over the term of the lease. 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. None of the nonlease components identified were capitalized and are instead expensed as incurred. 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 an implicit rate that is readily available, 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. ASC 606 On May 28, 2014, the FASB issued ASC 606 – Revenue from Contracts with Customers , which amended the accounting standards for revenue recognition and expanded our disclosure requirements. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. On January 1, 2018 the Company adopted ASC 606 using the modified retrospective transition method, which resulted in an adjustment at January 1, 2018 to retained earnings for the cumulative effect of applying the standard to all contracts not completed as of the adoption date. Upon adoption we recorded $1,197 as an increase to retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The adoption resulted in an acceleration of the timing of revenue recognized for certain transactions where product that remained in the Company’s possession has been recognized as of the transaction date when all revenue recognition criteria have been met. The following table presents the effect of the adoption of ASC 606 on the Company’s consolidated balance sheets as of January 1, 2018: Adjustments Balance at due to Balance at December 31, 2017 ASC 606 January 1, 2018 Balance Sheet Assets Accounts receivable, net $ 449,682 $ 14,568 $ 464,250 Inventories 106,753 (10,869) 95,884 Prepaid expenses and other current assets 5,737 (132) 5,605 Long-term accounts receivable — 1,890 1,890 Other assets 5,638 (3,914) 1,724 Liabilities Accounts payable 194,257 (62) 194,195 Accrued expenses and other liabilities 31,096 (312) 30,784 Accrued payroll 22,662 291 22,953 Deferred income taxes 15,696 429 16,125 Stockholders' Equity Retained earnings $ 383,673 $ 1,197 $ 384,870 In addition to the timing of revenue recognition impacted by the above-described transactions, upon adoption of ASC 606, the amount of revenue to be recognized prospectively was affected by the presentation of revenue transactions as an agent instead of principal in certain transactions. Specifically, revenue related to the sale of cloud products, as well as certain security software, is now being recognized net of costs as the Company determined that it acts as an agent in these transactions. These sales are recorded on a net basis at a point in time when the Company’s vendor and the customer accept the terms and conditions in the sales arrangement. In addition, the Company sells third-party software maintenance that is delivered over time either separately or bundled with the software license. The Company has determined that software maintenance is a distinct performance obligation that it does not control, and accordingly, the Company acts as an agent in these transactions and recognizes the related revenue on a net basis under ASC 606. The Company previously recognized revenue for cloud products, security software, and software maintenance on a gross basis (i.e., acting as a principal). This change reduced both net sales and cost of sales with no impact on reported gross profit as compared to the Company’s prior accounting policies. The following tables present the effect of the adoption of ASC 606 on the Company’s consolidated income statement and balance sheet for the year ended December 31, 2018 and as of December 31, 2018, respectively: Year Ended December 31, 2018 Balances without As Adoption of Reported Adjustments ASC 606 Income statement Revenues Net sales $ 2,699,489 $ 404,690 $ 3,104,179 Costs and expenses Cost of sales 2,288,403 403,737 2,692,140 Income from operations 85,686 750 86,436 Income before taxes 88,664 750 89,414 Net income 64,592 526 65,118 December 31, 2018 Balances without As Adoption of Reported Adjustments ASC 606 Balance Sheet Assets Accounts receivable, net $ 447,698 $ (6,949) $ 440,749 Inventories 119,195 4,798 123,993 Prepaid expenses and other current assets 9,661 148 9,809 Other assets 1,211 3,914 5,125 Liabilities Accrued expenses and other liabilities $ 33,840 $ 2,904 $ 36,744 Accrued payroll 24,319 (116) 24,203 Deferred income taxes 17,184 (219) 16,965 Stockholders' Equity Retained earnings $ 441,010 $ (657) $ 440,353 The Company has elected the use of certain practical expedients in its adoption of the new standard, which includes continuing to record revenue reported net of applicable taxes imposed on the related transaction and the application of the new standard to all arrangements not completed as of the adoption date. The Company has also elected to use the practical expedient to not account for the shipping and handling as separate performance obligations. Adoptions of the standard related to revenue recognition had no net impact on our consolidated statement of cash flows. ASU 2016-09 In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. The Company adopted this standard on January 1, 2017. The new standard simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. Under this guidance, a company recognizes all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement. This change eliminates the notion of the additional paid-in capital pool and reduces the complexity in accounting for excess tax benefits and tax deficiencies. The primary impact of the adoption was the recognition of excess tax benefits related to equity compensation in the Company’s provision for income taxes rather than paid-in capital, which is a change required to be applied on a prospective basis in accordance with the new guidance. There were no unrecognized excess tax benefits at implementation. Accordingly, the Company recorded discrete income tax benefits in the consolidated statements of income of $1,054 in the year ended December 31, 2017, for excess tax benefits related to equity compensation. The corresponding cash flows were reflected in cash provided by operating activities instead of financing activities, as was previously required. The Company adopted the cash flow presentation that requires presentation of excess tax benefits within operating activities on a prospective basis. Additionally, under ASU 2016-09, the Company has elected to continue to estimate equity award forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. Additional amendments to the accounting for income taxes and minimum statutory withholding tax requirements had no impact on the Company’s results of operations. The presentation requirements for cash flows related to employee taxes paid for withheld shares also had no impact to any of the periods presented in the Company’s consolidated statements of cash flows since such cash flows have historically been presented as a financing activity. 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 standard in the first quarter of 2020 and it does not expect the adoption 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 receivable it determines may not be collectable. As such, the Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2019
Schedule of restructuring and other charges	Year Ended December 31, 2019 2018 2017 Employee separations $ 553 $ 967 $ 640 Lease termination costs 150 — — Relocation expenses — — 84 Employee compensation — — 2,800 Other — — 112 Total restructuring and other charges $ 703 $ 967 $ 3,636
Computation of basic and diluted earnings per share	2019 2018 2017 Numerator: Net income $ 82,111 $ 64,592 $ 54,857 Denominator: Denominator for basic earnings per share 26,335 26,717 26,771 Dilutive effect of employee stock awards 170 137 120 Denominator for diluted earnings per share 26,505 26,854 26,891 Earnings per share: Basic $ 3.12 $ 2.42 $ 2.05 Diluted $ 3.10 $ 2.41 $ 2.04
ASU 2014-09
Schedule of the effect of the adoption of ASU 2014-09	The following table presents the effect of the adoption of ASC 606 on the Company’s consolidated balance sheets as of January 1, 2018: Adjustments Balance at due to Balance at December 31, 2017 ASC 606 January 1, 2018 Balance Sheet Assets Accounts receivable, net $ 449,682 $ 14,568 $ 464,250 Inventories 106,753 (10,869) 95,884 Prepaid expenses and other current assets 5,737 (132) 5,605 Long-term accounts receivable — 1,890 1,890 Other assets 5,638 (3,914) 1,724 Liabilities Accounts payable 194,257 (62) 194,195 Accrued expenses and other liabilities 31,096 (312) 30,784 Accrued payroll 22,662 291 22,953 Deferred income taxes 15,696 429 16,125 Stockholders' Equity Retained earnings $ 383,673 $ 1,197 $ 384,870 The following tables present the effect of the adoption of ASC 606 on the Company’s consolidated income statement and balance sheet for the year ended December 31, 2018 and as of December 31, 2018, respectively: Year Ended December 31, 2018 Balances without As Adoption of Reported Adjustments ASC 606 Income statement Revenues Net sales $ 2,699,489 $ 404,690 $ 3,104,179 Costs and expenses Cost of sales 2,288,403 403,737 2,692,140 Income from operations 85,686 750 86,436 Income before taxes 88,664 750 89,414 Net income 64,592 526 65,118 December 31, 2018 Balances without As Adoption of Reported Adjustments ASC 606 Balance Sheet Assets Accounts receivable, net $ 447,698 $ (6,949) $ 440,749 Inventories 119,195 4,798 123,993 Prepaid expenses and other current assets 9,661 148 9,809 Other assets 1,211 3,914 5,125 Liabilities Accrued expenses and other liabilities $ 33,840 $ 2,904 $ 36,744 Accrued payroll 24,319 (116) 24,203 Deferred income taxes 17,184 (219) 16,965 Stockholders' Equity Retained earnings $ 441,010 $ (657) $ 440,353

REVENUE (Tables)

REVENUE (Tables)	12 Months Ended
	Dec. 31, 2019
Revenue
Schedule of disaggregation of revenue from contracts with customers	Twelve Months Ended December 31, 2019 Business Enterprise Public Sector Total Notebooks/Mobility $ 317,282 $ 322,530 166,132 $ 805,944 Desktops 127,373 154,602 63,949 345,924 Software 146,287 133,584 54,956 334,827 Servers/Storage 105,617 72,445 60,334 238,396 Net/Com Products 94,340 72,185 52,776 219,301 Displays and Sound 88,667 105,172 56,183 250,022 Accessories 98,890 211,772 46,647 357,309 Other Hardware/Services 81,593 121,530 65,188 268,311 Total net sales $ 1,060,049 $ 1,193,820 $ 566,165 $ 2,820,034 Twelve Months Ended December 31, 2018 Business Enterprise Public Sector Total Notebooks/Mobility $ 299,247 $ 272,589 138,818 $ 710,654 Desktops 108,096 126,643 53,569 288,308 Software 134,071 135,420 45,365 314,856 Servers/Storage 111,559 102,209 59,653 273,421 Net/Com Products 109,702 62,060 52,287 224,049 Displays and Sound 89,779 109,497 52,760 252,036 Accessories 95,342 214,102 43,696 353,140 Other Hardware/Services 80,122 142,622 60,281 283,025 Total net sales $ 1,027,918 $ 1,165,142 $ 506,429 $ 2,699,489
Schedule of information on contract liability	The following table provides information about contract liabilities from arrangements with customers as of December 31, 2019 and December 31, 2018: December 31, 2019 December 31, 2018 Contract liabilities, which are included in "Accrued expenses and other liabilities" $ 5,942 $ 2,679 Significant changes in the contract liability balances during the years ended December 31, 2019 and 2018 are as follows (in thousands): 2018 Balances at December 31, 2017 $ 2,914 Cash received in advance and not recognized as revenue 16,279 Amounts recognized as revenue as performance obligations satisfied (16,514) Balances at December 31, 2018 $ 2,679 2019 Balances at December 31, 2018 $ 2,679 Cash received in advance and not recognized as revenue 15,835 Amounts recognized as revenue as performance obligations satisfied (12,572) Balances at December 31, 2019 $ 5,942

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure
Carrying Amount of Goodwill	Balance at December 31, 2018 SMB Large Account Public Sector Total Goodwill, gross $ 8,539 $ 66,236 $ 7,634 $ 82,409 Accumulated impairment losses (1,173) ─ (7,634) (8,807) Net balance $ 7,366 $ 66,236 $ — $ 73,602 Balance at December 31, 2019 SMB Large Account Public Sector Total Goodwill, gross $ 8,539 $ 66,236 $ 7,634 $ 82,409 Accumulated impairment losses (1,173) ─ (7,634) (8,807) Net balance $ 7,366 $ 66,236 $ — $ 73,602
Intangible Assets and Related Accumulated Amortization	December 31, 2019 December 31, 2018 Estimated Gross Accumulated Net Gross Accumulated Net Useful Lives Amount Amortization Amount Amount Amortization Amount Customer list 8 $ 3,400 $ 3,400 $ — $ 3,400 $ 3,364 $ 36 Tradename 5 1,190 1,190 — 1,190 1,190 — Customer relationships 10 12,200 4,343 7,857 12,200 3,122 9,078 Total intangible assets $ 16,790 $ 8,933 $ 7,857 $ 16,790 $ 7,676 $ 9,114
Estimated Amortization Expense	For the Years Ended December 31, 2020 $ 1,220 2021 1,220 2022 1,220 2023 1,220 2024 1,220 2025 and thereafter 1,757 $ 7,857

ACCOUNTS RECEIVABLE (Tables)

ACCOUNTS RECEIVABLE (Tables)	12 Months Ended
	Dec. 31, 2019
Accounts Receivable
Accounts Receivable	December 31, 2019 2018 Trade $ 498,721 $ 401,530 Vendor consideration, returns and other 56,459 52,560 Due from employees 114 107 Total gross accounts receivable 555,294 454,197 Allowances for: Sales returns (3,466) (3,397) Doubtful accounts (2,202) (3,102) Accounts receivable, net $ 549,626 $ 447,698

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2019
Property and Equipment
Property and Equipment	December 31, 2019 2018 Computer software, including licenses and internally-developed software $ 95,214 $ 75,528 Furniture and equipment 36,098 36,147 Leasehold improvements 8,516 8,102 Total 139,828 119,777 Accumulated depreciation and amortization (75,602) (67,978) Property and equipment, net $ 64,226 $ 51,799

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Dec. 31, 2019
Lessee Disclosure [Abstract]
Schedule of lease cost	Twelve months ended December 31, 2019 Related Parties Others Total Lease Cost Capitalized operating lease cost $ 1,516 $ 3,173 $ 4,689 Short-term lease cost 163 7 170 Total lease cost $ 1,679 $ 3,180 $ 4,859 Other Information Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: Operating cash flows $ 1,516 $ 3,420 $ 4,936 Weighted-average remaining lease term (in years): Capitalized operating leases 3.88 6.54 5.69 Weighted-average discount rate: Capitalized operating leases
Schedule of future lease payments on capitalized operating leases	As of December 31, 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 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 2025 — 876 876 Thereafter — 584 584 $ 5,040 $ 10,885 $ 15,925 Imputed interest (1,279) Lease liability balance at December 31, 2019 $ 14,646 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 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 $ 5,062 $ 9,557 $ 14,619

ACCRUED EXPENSES AND OTHER LI_2

ACCRUED EXPENSES AND OTHER LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2019
Accrued Expenses and Other Liabilities
Schedule of Accrued Expenses and Other Liabilities	December 31, 2019 2018 Customer and vendor deposits $ 13,871 $ 8,880 Dividends payable 8,427 8,453 Sales taxes 9,374 7,632 Short-term lease liability 4,316 — Other 9,244 8,875 Accrued expenses and other liabilities $ 45,232 $ 33,840

STOCKHOLDERS' EQUITY AND SHAR_2

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION (Tables)	12 Months Ended
	Dec. 31, 2019
Dividend declared	2019 2018 2017 Dividend per share $ 0.32 $ 0.32 $ 0.34 Stockholder record date 12/27/2019 12/28/2018 12/29/2017 Total dividend $ 8,427 $ 8,452 $ 9,122 Payment date 1/10/2020 1/11/2019 1/12/2018
Components of Share-Based Compensation Recorded as Expense	2019 2018 2017 Pre-tax expense for nonvested units $ 1,863 $ 1,080 $ 741 Tax benefit (505) (293) (297) Net effect on net income $ 1,358 $ 787 $ 444
Nonvested Stock Unit Activity	Nonvested Stock Units Weighted-Average Grant Date Shares Fair Value Nonvested at January 1, 2019 423 $ 23.16 Granted 153 42.06 Vested (73) 21.73 Canceled (30) 27.71 Nonvested at December 31, 2019 473 29.20
Phantom Share Units (PSUs)
Stock Equivalent Units	2019 2018 2017 Units issued — — 100 Compensation expense $ 1,802 $ 1,871 $ 1,429

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2019
Income Taxes
Provision for Income Taxes	Years Ended December 31, 2019 2018 2017 Current: Federal $ 20,481 $ 16,643 $ 21,813 State 7,101 6,370 4,861 Total current 27,582 23,013 26,674 Deferred: Federal 2,186 1,087 (5,132) State 800 (28) 1,226 Total deferred 2,986 1,059 (3,906) Net provision $ 30,568 $ 24,072 $ 22,768
Components of Deferred Taxes	2019 2018 Deferred tax assets: Provisions for doubtful accounts $ 581 $ 825 Inventory costs capitalized for tax purposes 134 112 Inventory valuation reserves 253 280 Sales return reserves 134 132 Deductible expenses, primarily employee-benefit related 177 319 Accrued compensation 2,448 2,014 Operating lease liability 3,858 — Other 1,503 1,254 Compensation under non-statutory stock option agreements 143 82 State tax loss carryforwards 1,091 958 Federal benefit for uncertain state tax positions — 177 Total gross deferred tax assets 10,322 6,153 Less: Valuation allowance (992) (839) Net deferred tax assets 9,330 5,314 Deferred tax liabilities: Goodwill and other intangibles (13,287) (12,850) Property and equipment (12,482) (9,548) Right-of-use assets (3,647) — Prepaid expenses (84) (100) Total gross deferred tax liabilities (29,500) (22,498) Net deferred tax liability $ (20,170) $ (17,184) Current deferred tax assets $ — $ — Noncurrent deferred tax liability (20,170) (17,184) Net deferred tax liability $ (20,170) $ (17,184)
Reconciliation of Income Tax Provision to Total Income Taxes at Statutory Federal Tax Rate	2019 2018 2017 Federal income taxes, at statutory tax rate $ 23,663 $ 18,619 $ 27,169 State income taxes, net of federal benefit 6,977 5,157 3,843 Nondeductible expenses 651 454 (113) Remeasurement of net deferred tax balances — — (7,815) Other, net (723) (158) (316) Income tax provision $ 30,568 $ 24,072 $ 22,768
Reconciliation of Unrecognized Tax Benefits	2019 2018 2017 Balance at January 1, $ 368 $ 368 $ 684 Additions on tax positions of prior years — — — Lapses of applicable statute of limitations (368) — (159) Settlements — — (157) Balance at December 31, $ — $ 368 $ 368

SEGMENT AND RELATED DISCLOSUR_2

SEGMENT AND RELATED DISCLOSURES (Tables)	12 Months Ended
	Dec. 31, 2019
Segment and Related Disclosures
Segment Information Applicable to Reportable Operating Segments	Years Ended December 31, 2019 2018 2017 Net sales: Business Solutions $ 1,060,049 $ 1,027,918 $ 1,158,639 Enterprise Solutions 1,193,820 1,165,142 1,131,823 Public Sector Solutions 566,165 506,429 621,421 Total net sales $ 2,820,034 $ 2,699,489 $ 2,911,883 Operating income (loss): Business Solutions $ 52,557 $ 40,188 $ 40,425 Enterprise Solutions 67,837 61,663 50,163 Public Sector Solutions 7,319 (2,260) 953 Headquarters/Other (15,741) (13,905) (14,014) Total operating income 111,972 85,686 77,527 Other income, net 707 2,978 98 Income before taxes $ 112,679 $ 88,664 $ 77,625 Selected operating expense: Depreciation and amortization: Business Solutions $ 596 $ 632 $ 592 Enterprise Solutions 2,474 2,318 2,163 Public Sector Solutions 89 112 159 Headquarters/Other 10,155 11,001 8,925 Total depreciation and amortization $ 13,314 $ 14,063 $ 11,839 Total assets: Business Solutions $ 308,522 $ 274,202 Enterprise Solutions 548,666 477,296 Public Sector Solutions 91,826 66,000 Headquarters/Other (11,679) (12,143) Total assets $ 937,335 $ 805,355

QUARTERLY FINANCIAL RESULTS (_2

QUARTERLY FINANCIAL RESULTS (UNAUDITED) (Tables)	12 Months Ended
	Dec. 31, 2019
Quarterly Financial Results (Unaudited)
Quarterly Operating Results (Unaudited)	Quarters Ended March 31, June 30, September 30, December 31, 2019 2019 2019 2019 Net sales $ 632,921 $ 741,076 $ 729,410 $ 716,627 Cost of sales 533,574 624,089 610,547 600,514 Gross profit 99,347 116,987 118,863 116,113 Selling, general and administrative expenses 81,235 84,664 86,226 86,510 Restructuring and other charges 703 — — — Income from operations 17,409 32,323 32,637 29,603 Other income, net 198 184 62 263 Income before taxes 17,607 32,507 32,699 29,866 Income tax provision (4,880) (8,839) (8,949) (7,900) Net income $ 12,727 $ 23,668 $ 23,750 $ 21,966 Earnings per common share: Basic $ 0.48 $ 0.90 $ 0.90 $ 0.84 Diluted $ 0.48 $ 0.89 $ 0.90 $ 0.83 Weighted average common shares outstanding: Basic 26,359 26,337 26,323 26,322 Diluted 26,525 26,494 26,479 26,523 Quarters Ended March 31, June 30, September 30, December 31, 2018 2018 2018 2018 Net sales $ 624,895 $ 706,570 $ 658,504 $ 709,520 Cost of sales 528,523 599,102 558,060 602,718 Gross profit 96,372 107,468 100,444 106,802 Selling, general and administrative expenses 80,900 82,521 81,494 79,518 Restructuring and other charges — — — 967 Income from operations 15,472 24,947 18,950 26,317 Interest income, net 116 182 114 2,566 Income before taxes 15,588 25,129 19,064 28,883 Income tax provision (4,288) (6,903) (5,298) (7,583) Net income $ 11,300 $ 18,226 $ 13,766 $ 21,300 Earnings per common share: Basic $ 0.42 $ 0.68 $ 0.52 $ 0.80 Diluted $ 0.42 $ 0.68 $ 0.51 $ 0.80 Weighted average common shares outstanding: Basic 26,835 26,685 26,716 26,632 Diluted 26,916 26,820 26,902 26,766

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2019USD ($)segment	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Number of sales segments | segment			3
Restructuring and other charges	$ 703	$ 967	$ 703	$ 967	$ 3,636
Amounts due from banks for credit card transactions, classified as cash equivalents		$ 2,651	$ 5,553	2,651
Minimum
Property and equipment, estimated useful lives			3 years
Maximum
Property and equipment, estimated useful lives			7 years
Software | Minimum
Estimated useful lives			3 years
Software | Maximum
Estimated useful lives			7 years
Selling, General and Administrative Expenses
Advertising expense			$ 19,407	$ 16,244	$ 14,437

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration Risk (Details) - Net Sales	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Customer | Single Customer | Maximum
Concentration risk
Percentage of total net sales	4.00%	4.00%	4.00%
Customer | Federal Government Agencies
Concentration risk
Percentage of total net sales	6.90%	5.40%	7.80%
Customer | Single Federal Government Agency | Maximum
Concentration risk
Percentage of total net sales	3.00%	3.00%	3.00%
Supplier | Ingram Micro Inc Class
Concentration risk
Percentage of product purchases	21.00%
Supplier | Synnex Corporation
Concentration risk
Percentage of product purchases	14.00%
Supplier | Hewlett Packard Enterprise and HP, Inc.
Concentration risk
Products manufactured by HP as a percentage of net sales	19.00%	18.00%	20.00%
Supplier | Other vendor suppliers | Maximum
Concentration risk
Percentage of product purchases	10.00%	10.00%	10.00%
Supplier | Other distributors
Concentration risk
Percentage of product purchases	59.00%

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Restructuring and Other Charges (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2019USD ($)facility	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Restructuring and other charges
Number of office facilities closed | facility			1
Restructuring and other charges	$ 703	$ 967	$ 703	$ 967	$ 3,636
Accrued employee termination benefits		$ 784	110	784	2
Employee separations
Restructuring and other charges
Restructuring and other charges			553	$ 967	640
Lease termination costs
Restructuring and other charges
Restructuring and other charges			$ 150
Relocation expenses
Restructuring and other charges
Restructuring and other charges					84
Employee compensation
Restructuring and other charges
Restructuring and other charges					2,800
Employee compensation | Non-executive employees
Restructuring and other charges
One-time cash bonus paid					2,700
Other
Restructuring and other charges
Restructuring and other charges					$ 112

SUMMARY OF SIGNIFICANT ACCOUN_7

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Numerator:
Net income	$ 21,966	$ 23,750	$ 23,668	$ 12,727	$ 21,300	$ 13,766	$ 18,226	$ 11,300	$ 82,111	$ 64,592	$ 54,857
Denominator:
Denominator for basic earnings per share	26,322	26,323	26,337	26,359	26,632	26,716	26,685	26,835	26,335	26,717	26,771
Dilutive effect of employee stock awards									170	137	120
Denominator for diluted earnings per share	26,523	26,479	26,494	26,525	26,766	26,902	26,820	26,916	26,505	26,854	26,891
Earnings per share:
Basic	$ 0.84	$ 0.90	$ 0.90	$ 0.48	$ 0.80	$ 0.52	$ 0.68	$ 0.42	$ 3.12	$ 2.42	$ 2.05
Diluted	$ 0.83	$ 0.90	$ 0.89	$ 0.48	$ 0.80	$ 0.51	$ 0.68	$ 0.42	$ 3.10	$ 2.41	$ 2.04
Additional Disclosure
Employee stock awards excluded from computation of diluted earnings per share									$ 0	$ 0	$ 0

SUMMARY OF SIGNIFICANT ACCOUN_8

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Other Income (Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Other income (expense), net
Gain on contract dispute resolution, net of costs		$ 2,255
Resolution costs		745
Interest income	$ 810	868	$ 224
Interest expense	$ 103	145	$ 126
Other Assets
Other income (expense), net
Cash resolution of contract dispute		$ 3,000

SUMMARY OF SIGNIFICANT ACCOUN_9

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Effect of Adoption of ASC 842 (Details) - USD ($) $ in Thousands	Jan. 01, 2019	Dec. 31, 2019
Leases
Lease, Practical Expedients, Package		true
Lease, Practical Expedient, Use of Hindsight		true
Lease liability		$ 14,646
Right-of-use assets		13,842
Remaining unamortized lease incentives		$ 1,279
Accounting Standards Update 2016-02
Leases
Lease liability	$ 18,835
Right-of-use assets	18,723
Remaining unamortized lease incentives	$ 114
Minimum | Accounting Standards Update 2016-02
Leases
Number of years remaining on existing operating leases	20 months
Maximum | Accounting Standards Update 2016-02
Leases
Number of years remaining on existing operating leases	197 months

SUMMARY OF SIGNIFICANT ACCOU_10

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Effect of Adoption of ASU 2014-09 (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 02, 2018	Jan. 01, 2018	Dec. 31, 2016
REVENUES
Net sales	$ 716,627	$ 729,410	$ 741,076	$ 632,921	$ 709,520	$ 658,504	$ 706,570	$ 624,895	$ 2,820,034	$ 2,699,489	$ 2,911,883
Costs and expenses
Cost of sales	600,514	610,547	624,089	533,574	602,718	558,060	599,102	528,523	2,368,724	2,288,403	2,529,807
Income from operations	29,603	32,637	32,323	17,409	26,317	18,950	24,947	15,472	111,972	85,686	77,527
Income before taxes	29,866	32,699	32,507	17,607	28,883	19,064	25,129	15,588	112,679	88,664	77,625
Net income	21,966	23,750	23,668	12,727	21,300	13,766	18,226	11,300	82,111	64,592	54,857
ASSETS
Accounts receivable, net	549,626				447,698				549,626	447,698	449,682	$ 464,250
Inventories, net	124,666				119,195				124,666	119,195	106,753	95,884
Prepaid expenses and other current assets	10,671				9,661				10,671	9,661	5,737	5,605
Long-term accounts receivable												1,890
Other assets	947				1,211				947	1,211	5,638	1,724
LIABILITIES
Accounts payable	235,641				201,640				235,641	201,640	194,257	194,195
Accrued expenses and other liabilities	45,232				33,840				45,232	33,840	31,096	30,784
Accrued payroll	28,050				24,319				28,050	24,319	22,662	22,953
Deferred income taxes	20,170				17,184				20,170	17,184	15,696	16,125
STOCKHOLDERS' EQUITY
Retained earnings	514,694				441,010				514,694	441,010	383,673	$ 384,870
Unrecognized excess tax benefits related to equity compensation														$ 0
Income tax benefits	$ (7,900)	$ (8,949)	$ (8,839)	$ (4,880)	(7,583)	$ (5,298)	$ (6,903)	$ (4,288)	$ (30,568)	(24,072)	(22,768)
ASU 2016-09
STOCKHOLDERS' EQUITY
Income tax benefits											$ 1,054
Difference between Revenue Guidance in Effect before and after Topic 606 | ASU 2014-09
REVENUES
Net sales										404,690
Costs and expenses
Cost of sales										403,737
Income from operations										750
Income before taxes										750
Net income										526
ASSETS
Accounts receivable, net					(6,949)					(6,949)			$ 14,568
Inventories, net					4,798					4,798			(10,869)
Prepaid expenses and other current assets					148					148			(132)
Long-term accounts receivable													1,890
Other assets					3,914					3,914			(3,914)
LIABILITIES
Accounts payable													(62)
Accrued expenses and other liabilities					2,904					2,904			(312)
Accrued payroll					(116)					(116)			291
Deferred income taxes					(219)					(219)			429
STOCKHOLDERS' EQUITY
Retained earnings					(657)					(657)			$ 1,197
Calculated under Revenue Guidance in Effect before Topic 606
REVENUES
Net sales										3,104,179
Costs and expenses
Cost of sales										2,692,140
Income from operations										86,436
Income before taxes										89,414
Net income										65,118
ASSETS
Accounts receivable, net					440,749					440,749
Inventories, net					123,993					123,993
Prepaid expenses and other current assets					9,809					9,809
Other assets					5,125					5,125
LIABILITIES
Accrued expenses and other liabilities					36,744					36,744
Accrued payroll					24,203					24,203
Deferred income taxes					16,965					16,965
STOCKHOLDERS' EQUITY
Retained earnings					$ 440,353					$ 440,353

REVENUE - Disaggregation of Rev

REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disaggregation of revenue
Net sales	$ 716,627	$ 729,410	$ 741,076	$ 632,921	$ 709,520	$ 658,504	$ 706,570	$ 624,895	$ 2,820,034	$ 2,699,489	$ 2,911,883
Notebooks/Mobility
Disaggregation of revenue
Net sales									805,944	710,654
Desktops
Disaggregation of revenue
Net sales									345,924	288,308
Software
Disaggregation of revenue
Net sales									334,827	314,856
Servers/Storage
Disaggregation of revenue
Net sales									238,396	273,421
Net/Com Products
Disaggregation of revenue
Net sales									219,301	224,049
Displays and Sound
Disaggregation of revenue
Net sales									250,022	252,036
Accessories
Disaggregation of revenue
Net sales									357,309	353,140
Other Hardware/Services
Disaggregation of revenue
Net sales									268,311	283,025
Business Solutions
Disaggregation of revenue
Net sales									1,060,049	1,027,918
Business Solutions | Notebooks/Mobility
Disaggregation of revenue
Net sales									317,282	299,247
Business Solutions | Desktops
Disaggregation of revenue
Net sales									127,373	108,096
Business Solutions | Software
Disaggregation of revenue
Net sales									146,287	134,071
Business Solutions | Servers/Storage
Disaggregation of revenue
Net sales									105,617	111,559
Business Solutions | Net/Com Products
Disaggregation of revenue
Net sales									94,340	109,702
Business Solutions | Displays and Sound
Disaggregation of revenue
Net sales									88,667	89,779
Business Solutions | Accessories
Disaggregation of revenue
Net sales									98,890	95,342
Business Solutions | Other Hardware/Services
Disaggregation of revenue
Net sales									81,593	80,122
Enterprise Solutions
Disaggregation of revenue
Net sales									1,193,820	1,165,142
Enterprise Solutions | Notebooks/Mobility
Disaggregation of revenue
Net sales									322,530	272,589
Enterprise Solutions | Desktops
Disaggregation of revenue
Net sales									154,602	126,643
Enterprise Solutions | Software
Disaggregation of revenue
Net sales									133,584	135,420
Enterprise Solutions | Servers/Storage
Disaggregation of revenue
Net sales									72,445	102,209
Enterprise Solutions | Net/Com Products
Disaggregation of revenue
Net sales									72,185	62,060
Enterprise Solutions | Displays and Sound
Disaggregation of revenue
Net sales									105,172	109,497
Enterprise Solutions | Accessories
Disaggregation of revenue
Net sales									211,772	214,102
Enterprise Solutions | Other Hardware/Services
Disaggregation of revenue
Net sales									121,530	142,622
Public Sector Solutions
Disaggregation of revenue
Net sales									566,165	506,429
Public Sector Solutions | Notebooks/Mobility
Disaggregation of revenue
Net sales									166,132	138,818
Public Sector Solutions | Desktops
Disaggregation of revenue
Net sales									63,949	53,569
Public Sector Solutions | Software
Disaggregation of revenue
Net sales									54,956	45,365
Public Sector Solutions | Servers/Storage
Disaggregation of revenue
Net sales									60,334	59,653
Public Sector Solutions | Net/Com Products
Disaggregation of revenue
Net sales									52,776	52,287
Public Sector Solutions | Displays and Sound
Disaggregation of revenue
Net sales									56,183	52,760
Public Sector Solutions | Accessories
Disaggregation of revenue
Net sales									46,647	43,696
Public Sector Solutions | Other Hardware/Services
Disaggregation of revenue
Net sales									$ 65,188	60,281
Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of revenue
Net sales										$ 3,104,179

REVENUE - Contract Balances (De

REVENUE - Contract Balances (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Change in contract liability
Beginning balance - Contract liability	$ 2,679	$ 2,914
Cash received in advance and not recognized as revenue	15,835	16,279
Amounts recognized as revenue as performance obligations satisfied	(12,572)	(16,514)
Ending balance - Contract liability	5,942	2,679
Accrued expenses and other liabilities
Contract liabilities
Contract liabilities	$ 5,942	$ 2,679

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill (Details)	12 Months Ended
	Dec. 31, 2019segment
Goodwill and Intangible Assets Disclosure
Number of reporting units with goodwill	2

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS - Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Goodwill
Goodwill, gross	$ 82,409	$ 82,409
Accumulated impairment losses	(8,807)	(8,807)
Net balance	73,602	73,602
Business Solutions
Goodwill
Goodwill, gross	8,539	8,539
Accumulated impairment losses	(1,173)	(1,173)
Net balance	7,366	7,366
Enterprise Solutions
Goodwill
Goodwill, gross	66,236	66,236
Net balance	66,236	66,236
Public Sector Segment
Goodwill
Goodwill, gross	7,634	7,634
Accumulated impairment losses	$ (7,634)	$ (7,634)

GOODWILL AND OTHER INTANGIBLE_5

GOODWILL AND OTHER INTANGIBLE ASSETS - Amortizable Intangible Assets and Related Accumulated Amortization (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Intangible Assets
Indefinite-lived intangible assets	$ 450
Gross Amount	16,790	$ 16,790
Accumulated Amortization	8,933	7,676
Net Amount	7,857	9,114
Amortization expense	$ 1,257	1,461	$ 1,561
Customer List
Intangible Assets
Estimated useful lives	8 years
Gross Amount	$ 3,400	3,400
Accumulated Amortization	$ 3,400	3,364
Net Amount		36
Tradename
Intangible Assets
Estimated useful lives	5 years
Gross Amount	$ 1,190	1,190
Accumulated Amortization	$ 1,190	1,190
Customer relationships
Intangible Assets
Acquired estimated useful lives	10 years
Estimated useful lives	10 years
Gross Amount	$ 12,200	12,200
Accumulated Amortization	4,343	3,122
Net Amount	$ 7,857	$ 9,078

GOODWILL AND OTHER INTANGIBLE_6

GOODWILL AND OTHER INTANGIBLE ASSETS - Estimated Amortization Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure
2019	$ 1,220
2020	1,220
2021	1,220
2022	1,220
2023	1,220
2024 and thereafter	1,757
Net Amount	$ 7,857	$ 9,114

ACCOUNTS RECEIVABLE (Details)

ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Jan. 02, 2018	Dec. 31, 2017
Accounts receivable
Trade	$ 498,721	$ 401,530
Vendor consideration, returns and other	56,459	52,560
Due from employees	114	107
Total gross accounts receivable	555,294	454,197
Doubtful accounts	(2,202)	(3,102)
Accounts receivable, net	549,626	447,698	$ 464,250	$ 449,682
Accounts Receivable
Accounts receivable
Sales returns	$ (3,466)	$ (3,397)

PROPERTY AND EQUIPMENT - Summar

PROPERTY AND EQUIPMENT - Summary (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Property and Equipment
Computer software, including licenses and internally-developed software	$ 95,214	$ 75,528
Furniture and equipment	36,098	36,147
Leasehold improvements	8,516	8,102
Total	139,828	119,777
Accumulated depreciation and amortization	(75,602)	(67,978)
Property and equipment, net	$ 64,226	$ 51,799

PROPERTY AND EQUIPMENT - Deprec

PROPERTY AND EQUIPMENT - Depreciation and Amortization Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Property and Equipment
Depreciation and amortization	$ 12,057	$ 12,602	$ 10,278

LEASES - Lease Cost and Other I

LEASES - Lease Cost and Other Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)lease
Leases
Right-of-use assets	$ 13,842
Lease liability	$ 14,646
Number of financing leases | lease	0
Number of additional operating or financing leases not yet commenced | lease	0
Lease Cost
Capitalized operating lease cost	$ 4,689
Short-term lease cost	170
Total lease cost	4,859
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$ 4,936
Weighted-average remaining lease term - Capitalized operating leases	5 years 8 months 9 days
Weighted-average discount rate - Capitalized operating leases	3.92%
Related Parties
Leases
Right-of-use assets	$ 4,689
Lease liability	4,689
Lease Cost
Capitalized operating lease cost	1,516
Short-term lease cost	163
Total lease cost	1,679
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$ 1,516
Weighted-average remaining lease term - Capitalized operating leases	3 years 10 months 17 days
Weighted-average discount rate - Capitalized operating leases	3.92%
Others
Lease Cost
Capitalized operating lease cost	$ 3,173
Short-term lease cost	7
Total lease cost	3,180
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$ 3,420
Weighted-average remaining lease term - Capitalized operating leases	6 years 6 months 15 days
Weighted-average discount rate - Capitalized operating leases	3.92%

LEASES - Future Lease Payments

LEASES - Future Lease Payments (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Future lease payments over the remaining term of capitalized operating leases
2020	$ 4,767
2021	3,735
2022	2,737
2023	2,183
2024	1,043
2025	876
Thereafter	584
Total	15,925
Imputed interest	(1,279)
Lease liability balance	14,646
Right-of-use assets	13,842
Long-term lease liability	10,330
Operating Lease, Liability, Current	$ 4,316
Current operating lease liability, Statement of Financial Position	us-gaap:AccruedLiabilitiesAndOtherLiabilities
Future aggregate minimum annual lease payments
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months	$ 4,767
2020		$ 4,793
2021		3,719
2022		2,743
2023		1,969
2024 and thereafter		1,395
Total		14,619
Related Parties
Future lease payments over the remaining term of capitalized operating leases
2020	1,385
2021	1,253
2022	1,253
2023	1,149
Total	5,040
Lease liability balance	4,689
Right-of-use assets	4,689
Future aggregate minimum annual lease payments
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months	1,385
2020		1,407
2021		1,253
2022		1,253
2023		1,149
Total		5,062
Others
Future lease payments over the remaining term of capitalized operating leases
2020	3,382
2021	2,482
2022	1,484
2023	1,034
2024	1,043
2025	876
Thereafter	584
Total	10,885
Future aggregate minimum annual lease payments
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months	$ 3,382
2020		3,386
2021		2,466
2022		1,490
2023		820
2024 and thereafter		1,395
Total		$ 9,557

ACCRUED EXPENSES AND OTHER LI_3

ACCRUED EXPENSES AND OTHER LIABILITIES (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Jan. 02, 2018	Dec. 31, 2017
Accrued Expenses and Other Liabilities
Customer and vendor deposits	$ 13,871	$ 8,880
Dividends payable	8,427	8,453
Sales taxes	9,374	7,632
Short-term lease liability	4,316
Other	9,244	8,875
Accrued expenses and other liabilities	$ 45,232	$ 33,840	$ 30,784	$ 31,096

BANK BORROWINGS (Detail)

BANK BORROWINGS (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 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	4.75%
One-month LIBOR rate
Subordinated Borrowing
Debt instrument, interest rate	1.76%

STOCKHOLDERS' EQUITY AND SHAR_3

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 17, 2018	May 31, 2016
Stockholders' equity and share-based compensation
Preferred Stock, shares authorized	10,000	10,000
Preferred Stock, par value	$ 0.01	$ 0.01
Preferred Stock, shares outstanding	0	0
Shares repurchased, value	$ 4,478	$ 15,375
Aggregate shares repurchased	2,526	2,391
Shares Granted			0
Stock Incentive Plan 2007
Stockholders' equity and share-based compensation
Term of approved stock-based compensation plan	10 years
Shares authorized for issuance under stock incentive plan					1,900
Shares available for future grant	85
1997 Employee Stock Purchase Plan
Stockholders' equity and share-based compensation
Purchase price under employee stock purchase plan as a percentage of price as of the last day of each six month offering period	95.00%
Common stock reserved for issuance	1,203
Share purchased under employee stock purchase plan	1,188
Nonvested Stock Units
Stockholders' equity and share-based compensation
Granted	153		0
Weighted-average grant-date fair values of nonvested stock awards granted	$ 42.06	$ 24.90
Total fair values of nonvested stock awards that vested	$ 3,476	$ 1,635	$ 1,638
Unearned compensation cost	$ 12,379
Unrecognized compensation costs, weighted average period of recognition	5 years 7 months 6 days
Aggregate intrinsic value	$ 23,489
Phantom Share Units (PSUs)
Stockholders' equity and share-based compensation
Granted			100
Vesting period	4 years
Share repurchase programs, aggregate
Stockholders' equity and share-based compensation
Number of share repurchased	135
Shares repurchased, value	$ 4,478
Aggregate shares repurchased	2,351
Aggregate number of shares repurchased	$ 32,086
Maximum | Nonvested Stock Units
Stockholders' equity and share-based compensation
Vesting period	10 years	10 years
Maximum | Share repurchase programs, aggregate
Stockholders' equity and share-based compensation
Approximate dollar value of shares that may yet be purchased	$ 22,914
Maximum | Share repurchase program 2018
Stockholders' equity and share-based compensation
Repurchase of common stock, authorized amount				$ 25,000

STOCKHOLDERS' EQUITY AND SHAR_4

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION - Dividend Payments (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Earnings Per Share
Dividend per share	$ 0.32	$ 0.32	$ 0.34
Stockholder record date	Dec. 27, 2019	Dec. 28, 2018	Dec. 29, 2017
Total dividend	$ 8,427	$ 8,452	$ 9,122
Payment date	Jan. 10, 2020	Jan. 11, 2019	Jan. 12, 2018

STOCKHOLDERS' EQUITY AND SHAR_5

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION - Components of Share-Based Compensation Recorded as Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Stockholders' equity and share-based compensation
Tax benefit	$ (505)	$ (293)	$ (297)
Net effect on net income	1,358	787	444
Nonvested shares/units
Stockholders' equity and share-based compensation
Pre-tax expense for nonvested units	$ 1,863	$ 1,080	$ 741

STOCKHOLDERS' EQUITY AND SHAR_6

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION - Nonvested Stock Award and Unit Activity (Details) - Nonvested Stock Units - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Shares
Nonvested shares beginning balance	423
Granted	153		0
Vested	(73)
Canceled	(30)
Nonvested shares ending balance	473	423
Weighted-Average Grant Date Fair Value
Nonvested shares beginning balance	$ 23.16
Granted	42.06	$ 24.90
Vested	21.73
Canceled	27.71
Nonvested shares ending balance	$ 29.20	$ 23.16

STOCKHOLDERS' EQUITY AND SHAR_7

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION - Stock Equivalent Units (Details) - Phantom Share Units (PSUs) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Stockholders' equity and share-based compensation
Units issued	100
Compensation expense	$ 1,429	$ 1,802	$ 1,871

INCOME TAXES - Provision for In

INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current:
Federal									$ 20,481	$ 16,643	$ 21,813
State									7,101	6,370	4,861
Total current									27,582	23,013	26,674
Deferred:
Federal									2,186	1,087	(5,132)
State									800	(28)	1,226
Total deferred									2,986	1,059	(3,906)
Income tax provision	$ 7,900	$ 8,949	$ 8,839	$ 4,880	$ 7,583	$ 5,298	$ 6,903	$ 4,288	$ 30,568	$ 24,072	$ 22,768

INCOME TAXES - Components of De

INCOME TAXES - Components of Deferred Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets:
Provisions for doubtful accounts	$ 581	$ 825
Inventory costs capitalized for tax purposes	134	112
Inventory valuation reserves	253	280
Sales return reserves	134	132
Deductible expenses, primarily employee-benefit related	177	319
Accrued compensation	2,448	2,014
Revenue deferral	3,858
Other	1,503	1,254
Compensation under non-statutory stock option agreements	143	82
State tax loss carryforwards	1,091	958
Federal benefit for uncertain state tax positions		177
Total gross deferred tax assets	10,322	6,153
Less: Valuation allowance	(992)	(839)
Net deferred tax assets	9,330	5,314
Deferred tax liabilities:
Goodwill and other intangibles	(13,287)	(12,850)
Property and equipment	(12,482)	(9,548)
Prepaid expenses	(84)	(100)
Right-of-use assets	(3,647)
Total gross deferred tax liabilities.	(29,500)	(22,498)
Net deferred tax liability	(20,170)	(17,184)
Noncurrent deferred tax liability	(20,170)	(17,184)
Net deferred tax liability	$ (20,170)	$ (17,184)

INCOME TAXES - Additional Infor

INCOME TAXES - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax
State net operating loss carryforwards		$ 1,381
Operating loss carryforwards, state tax benefits net of federal taxes		1,091	$ 958
State tax credit and state tax loss carryforwards, valuation allowance		992	839
Net change in the valuation allowance related to utilization and expiration of tax carryforwards		153	$ 94	$ 260
Statutory federal income tax rate (as a percent)			21.00%	35.00%
Tax benefit related to remeasurement of net deferred tax	$ 7,700
Unrecognized income tax benefits, interest and penalties recognized		$ 0	$ 0	$ 0
Unrecognized income tax benefits, accrued interest	481		481	481
Unrecognized income tax benefits, accrued penalties	$ 93		$ 93	$ 93
State Jurisdiction
Income Tax
Tax years remain open to examination		2015 2016 2017 2018
Internal Revenue Service (IRS)
Income Tax
Tax years remain open to examination		2016 2017 2018
Expire After 2020
Income Tax
State net operating loss carryforwards		$ 4
Expire After 2021
Income Tax
State net operating loss carryforwards		3
Expire After 2022
Income Tax
State net operating loss carryforwards		3
Expire After 2023
Income Tax
State net operating loss carryforwards		3
Expire After 2024
Income Tax
State net operating loss carryforwards		3
Expire Beyond 2024
Income Tax
State net operating loss carryforwards		1,292
No Expiration
Income Tax
State net operating loss carryforwards		$ 73
Period 1
Income Tax
State net operating loss carryforwards, expiration period		5 years
Period 2
Income Tax
State net operating loss carryforwards, expiration period		15 years
Period 3
Income Tax
State net operating loss carryforwards, expiration period		20 years

INCOME TAXES - Reconciliation o

INCOME TAXES - Reconciliation of Income Tax Provision To Total Income Taxes At Statutory Federal Tax Rate (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Taxes
Federal income taxes, at statutory tax rate									$ 23,663	$ 18,619	$ 27,169
State income taxes, net of federal benefit									6,977	5,157	3,843
Nondeductible expenses									651	454	(113)
Remeasurement of net deferred tax balances											(7,815)
Other, net									(723)	(158)	(316)
Income tax provision	$ 7,900	$ 8,949	$ 8,839	$ 4,880	$ 7,583	$ 5,298	$ 6,903	$ 4,288	$ 30,568	$ 24,072	$ 22,768

INCOME TAXES - Reconciliation_2

INCOME TAXES - Reconciliation Of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Unrecognized tax benefits
Beginning balance	$ 368	$ 368	$ 684
Lapses of applicable statute of limitations	$ (368)		(159)
Settlements			(157)
Ending balance		$ 368	$ 368

EMPLOYEE BENEFIT PLAN (Details)

EMPLOYEE BENEFIT PLAN (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Compensation and Retirement
Employer matching contributions to employee savings	$ 2,778	$ 2,538	$ 2,396
Employer matching contributions to employee profit sharing plan	$ 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								12 Months Ended
	Dec. 31, 2019USD ($)	Sep. 30, 2019USD ($)	Jun. 30, 2019USD ($)	Mar. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Sep. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2019USD ($)segment	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Segment Reporting Information
Number of reportable segments | segment									3
Net sales:
Net sales	$ 716,627	$ 729,410	$ 741,076	$ 632,921	$ 709,520	$ 658,504	$ 706,570	$ 624,895	$ 2,820,034	$ 2,699,489	$ 2,911,883
Operating income (loss):
Operating income (loss)	29,603	32,637	32,323	17,409	26,317	18,950	24,947	15,472	111,972	85,686	77,527
Other income, net	263	62	184	198	2,566	114	182	116	707	2,978	98
Income before taxes	29,866	$ 32,699	$ 32,507	$ 17,607	28,883	$ 19,064	$ 25,129	$ 15,588	112,679	88,664	77,625
Depreciation and amortization:
Depreciation and amortization									13,314	14,063	11,839
Total assets:
Total assets	937,335				805,355				937,335	805,355
Goodwill	73,602				73,602				73,602	73,602
Business Solutions
Net sales:
Net sales									1,060,049	1,027,918
Total assets:
Goodwill	7,366				7,366				7,366	7,366
Enterprise Solutions
Net sales:
Net sales									1,193,820	1,165,142
Total assets:
Goodwill	66,236				66,236				66,236	66,236
Public Sector Solutions
Net sales:
Net sales									566,165	506,429
Operating Segments | Business Solutions
Net sales:
Net sales									1,060,049	1,027,918	1,158,639
Operating income (loss):
Operating income (loss)									52,557	40,188	40,425
Depreciation and amortization:
Depreciation and amortization									596	632	592
Total assets:
Total assets	308,522				274,202				308,522	274,202
Goodwill	7,366								7,366
Operating Segments | Enterprise Solutions
Net sales:
Net sales									1,193,820	1,165,142	1,131,823
Operating income (loss):
Operating income (loss)									67,837	61,663	50,163
Depreciation and amortization:
Depreciation and amortization									2,474	2,318	2,163
Total assets:
Total assets	548,666				477,296				548,666	477,296
Goodwill	66,236								66,236
Operating Segments | Public Sector Solutions
Net sales:
Net sales									566,165	506,429	621,421
Operating income (loss):
Operating income (loss)									7,319	(2,260)	953
Depreciation and amortization:
Depreciation and amortization									89	112	159
Total assets:
Total assets	91,826				66,000				91,826	66,000
Headquarters/Other
Operating income (loss):
Operating income (loss)									(15,741)	(13,905)	(14,014)
Depreciation and amortization:
Depreciation and amortization									10,155	11,001	$ 8,925
Total assets:
Assets net of intercompany balance eliminations	(11,679)				(12,143)				(11,679)	(12,143)
Intersegment Elimination
Total assets:
Total assets	$ (39,813)				$ (19,019)				$ (39,813)	$ (19,019)

SEGMENT AND RELATED DISCLOSUR_4

SEGMENT AND RELATED DISCLOSURES - Concentration Risk (Details) - Net Sales	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Geographic Concentration Risk | Foreign | Maximum
Segment Reporting Information
Percentage of sales by segment	2.00%	2.00%	2.00%
Customer | Single Customer | Maximum
Segment Reporting Information
Percentage of sales by segment	4.00%	4.00%	4.00%
Customer | Federal Government Agencies
Segment Reporting Information
Percentage of sales by segment	6.90%	5.40%	7.80%
Customer | Single Federal Government Agency | Maximum
Segment Reporting Information
Percentage of sales by segment	3.00%	3.00%	3.00%

QUARTERLY FINANCIAL RESULTS (_3

QUARTERLY FINANCIAL RESULTS (UNAUDITED) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Quarterly Financial Results (Unaudited).
Net sales	$ 716,627	$ 729,410	$ 741,076	$ 632,921	$ 709,520	$ 658,504	$ 706,570	$ 624,895	$ 2,820,034	$ 2,699,489	$ 2,911,883
Cost of sales	600,514	610,547	624,089	533,574	602,718	558,060	599,102	528,523	2,368,724	2,288,403	2,529,807
Gross profit	116,113	118,863	116,987	99,347	106,802	100,444	107,468	96,372	451,310	411,086	382,076
Selling, general and administrative expenses	86,510	86,226	84,664	81,235	79,518	81,494	82,521	80,900	338,635	324,433	300,913
Restructuring and other charges				703	967				703	967	3,636
Income from operations	29,603	32,637	32,323	17,409	26,317	18,950	24,947	15,472	111,972	85,686	77,527
Other income, net	263	62	184	198	2,566	114	182	116	707	2,978	98
Income before taxes	29,866	32,699	32,507	17,607	28,883	19,064	25,129	15,588	112,679	88,664	77,625
Income tax provision	(7,900)	(8,949)	(8,839)	(4,880)	(7,583)	(5,298)	(6,903)	(4,288)	(30,568)	(24,072)	(22,768)
Net income	$ 21,966	$ 23,750	$ 23,668	$ 12,727	$ 21,300	$ 13,766	$ 18,226	$ 11,300	$ 82,111	$ 64,592	$ 54,857
Earnings per common share:
Basic	$ 0.84	$ 0.90	$ 0.90	$ 0.48	$ 0.80	$ 0.52	$ 0.68	$ 0.42	$ 3.12	$ 2.42	$ 2.05
Diluted	$ 0.83	$ 0.90	$ 0.89	$ 0.48	$ 0.80	$ 0.51	$ 0.68	$ 0.42	$ 3.10	$ 2.41	$ 2.04
Denominator:
Basic	26,322	26,323	26,337	26,359	26,632	26,716	26,685	26,835	26,335	26,717	26,771
Diluted	26,523	26,479	26,494	26,525	26,766	26,902	26,820	26,916	26,505	26,854	26,891

SCHEDULE II - VALUATION AND Q_2

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Allowance for Sales Returns
Valuation and Qualifying Accounts
Beginning Balance	$ 3,397	$ 3,308	$ 3,709
Charged to Costs and Expenses	27,943	28,504	32,399
Deductions/Write-Offs	(27,874)	(28,415)	(32,800)
Ending Balance	3,466	3,397	3,308
Allowance for Doubtful Accounts
Valuation and Qualifying Accounts
Beginning Balance	3,102	2,726	2,310
Charged to Costs and Expenses	25	1,680	1,658
Deductions/Write-Offs	(925)	(1,304)	(1,242)
Ending Balance	$ 2,202	$ 3,102	$ 2,726