PC Connection (CNXN) 10-Q 10 Aug 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2020	Aug. 07, 2020
Document And Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2020
Entity File Number	0-23827
Entity Registrant Name	PC CONNECTION, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	02-0513618
Entity Address, Address Line One	730 Milford Road
Entity Address, City or Town	Merrimack
Entity Address, State or Province	NH
Entity Address, Postal Zip Code	03054
City Area Code	603
Local Phone Number	683-2000
Title of 12(b) Security	Common Stock
Trading Symbol	CNXN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		26,125,678
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001050377
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Current Assets:
Cash and cash equivalents	$ 165,943	$ 90,060
Accounts receivable, net	446,716	549,626
Inventories, net	165,632	124,666
Income taxes receivable		1,388
Prepaid expenses and other current assets	13,450	10,671
Total current assets	791,741	776,411
Property and equipment, net	65,387	64,226
Right-of-use assets	14,755	13,842
Goodwill	73,602	73,602
Intangible assets, net	7,698	8,307
Other assets	1,157	947
Total Assets	954,340	937,335
Current Liabilities:
Accounts payable	247,005	235,641
Accrued payroll	20,409	28,050
Accrued expenses and other liabilities	40,793	45,232
Total current liabilities	308,207	308,923
Deferred income taxes	20,170	20,170
Noncurrent operating lease liabilities	11,566	10,330
Other liabilities	3,184	600
Total Liabilities	343,127	340,023
Stockholders' Equity:
Common stock	289	288
Additional paid-in capital	119,628	118,045
Retained earnings	537,233	514,694
Treasury stock, at cost	(45,937)	(35,715)
Total Stockholders' Equity	611,213	597,312
Total Liabilities and Stockholders' Equity	$ 954,340	$ 937,335

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Condensed Consolidated Statements of Income
Net sales	$ 550,002	$ 741,076	$ 1,261,852	$ 1,373,997
Cost of sales	461,002	624,089	1,059,734	1,157,663
Gross profit	89,000	116,987	202,118	216,334
Selling, general and administrative expenses	77,420	84,664	169,887	165,899
Restructuring and other charges	992		992	703
Income from operations	10,588	32,323	31,239	49,732
Interest income, net	5	184	96	382
Income before taxes	10,593	32,507	31,335	50,114
Income tax provision	(2,950)	(8,839)	(8,796)	(13,719)
Net income	$ 7,643	$ 23,668	$ 22,539	$ 36,395
Earnings per common share:
Basic	$ 0.29	$ 0.90	$ 0.86	$ 1.38
Diluted	$ 0.29	$ 0.89	$ 0.86	$ 1.37
Shares used in computation of earnings per common share:
Basic	26,107	26,337	26,172	26,348
Diluted	26,279	26,494	26,350	26,506

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings	Treasury Stock	Total
Balance at Dec. 31, 2018	$ 288	$ 115,842	$ 441,010	$ (31,237)	$ 525,903
Balance (in shares) at Dec. 31, 2018	28,787			(2,391)
Stock-based compensation expense		833			833
Restricted stock units vested (in shares)	12
Issuance of common stock under Employee Stock Purchase Plan		609			609
Issuance of common stock under Employee Stock Purchase Plan (in shares)	19
Shares withheld for taxes paid on stock awards		(72)			(72)
Repurchase of common stock for treasury				$ (3,501)	(3,501)
Repurchase of common stock for treasury (in shares)				(109)
Net income			36,395		36,395
Balance at Jun. 30, 2019	$ 288	117,212	477,405	$ (34,738)	560,167
Balance (in shares) at Jun. 30, 2019	28,818			(2,500)
Balance at Mar. 31, 2019	$ 288	116,098	453,737	$ (32,531)	537,592
Balance (in shares) at Mar. 31, 2019	28,790			(2,434)
Stock-based compensation expense		564			564
Restricted stock units vested (in shares)	9
Issuance of common stock under Employee Stock Purchase Plan		622			622
Issuance of common stock under Employee Stock Purchase Plan (in shares)	19
Shares withheld for taxes paid on stock awards		(72)			(72)
Repurchase of common stock for treasury				$ (2,207)	(2,207)
Repurchase of common stock for treasury (in shares)				(66)
Net income			23,668		23,668
Balance at Jun. 30, 2019	$ 288	117,212	477,405	$ (34,738)	560,167
Balance (in shares) at Jun. 30, 2019	28,818			(2,500)
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)
Stock-based compensation expense		1,248			1,248
Restricted stock units vested	$ 1				1
Restricted stock units vested (in shares)	10
Issuance of common stock under Employee Stock Purchase Plan		536			536
Issuance of common stock under Employee Stock Purchase Plan (in shares)	12
Shares withheld for taxes paid on stock awards		(201)			(201)
Repurchase of common stock for treasury				$ (10,222)	(10,222)
Repurchase of common stock for treasury (in shares)				(247)
Net income			22,539		22,539
Balance at Jun. 30, 2020	$ 289	119,628	537,233	$ (45,937)	611,213
Balance (in shares) at Jun. 30, 2020	28,892			(2,773)
Balance at Mar. 31, 2020	$ 289	118,620	529,590	$ (45,937)	602,562
Balance (in shares) at Mar. 31, 2020	28,874			(2,773)
Stock-based compensation expense		624			624
Restricted stock units vested (in shares)	6
Issuance of common stock under Employee Stock Purchase Plan		536			536
Issuance of common stock under Employee Stock Purchase Plan (in shares)	12
Shares withheld for taxes paid on stock awards		(152)			(152)
Net income			7,643		7,643
Balance at Jun. 30, 2020	$ 289	$ 119,628	$ 537,233	$ (45,937)	$ 611,213
Balance (in shares) at Jun. 30, 2020	28,892			(2,773)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash Flows provided by Operating Activities:
Net income	$ 22,539	$ 36,395
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	6,502	7,077
Provision for doubtful accounts	3,627	(346)
Stock-based compensation expense	1,248	833
Deferred income taxes		10
Loss on disposal of fixed assets	13	118
Changes in assets and liabilities:
Accounts receivable	99,283	(52,868)
Inventories	(40,966)	(56,709)
Prepaid expenses, income tax receivables and other current assets	(1,391)	3,473
Other non-current assets	(180)	231
Accounts payable	12,500	58,181
Accrued expenses and other liabilities	(764)	6,934
Net cash provided by operating activities	102,411	3,329
Cash Flows used in Investing Activities:
Purchases of equipment	(8,214)	(13,877)
Net cash used in investing activities	(8,214)	(13,877)
Cash Flows used in Financing Activities:
Purchase of treasury shares	(10,222)	(3,501)
Dividend payments	(8,427)	(8,452)
Issuance of stock under Employee Stock Purchase Plan	536	609
Payments of payroll taxes on stock-based compensation through shares withheld	(201)	(72)
Net cash used in financing activities	(18,314)	(11,416)
Increase (decrease) in cash and cash equivalents	75,883	(21,964)
Cash and cash equivalents, beginning of period	90,060	91,703
Cash and cash equivalents, end of period	165,943	69,739
Non-cash Investing and Financing Activities:
Accrued capital expenditures	327	2,081
Supplemental Cash Flow Information:
Income taxes paid	$ 1,082	$ 11,962

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2020
Basis of Presentation
Basis of Presentation	Note 1–Basis of Presentation ​ The accompanying unaudited condensed consolidated financial statements of PC Connection, Inc. and its subsidiaries (the “Company”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission regarding interim financial reporting and in accordance with accounting principles generally accepted in the United States of America. Such principles were applied on a basis consistent with the accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission (the “SEC”). The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements contained in the Company’s Annual Report on Form 10-K. ​ In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the results of operations for the interim periods reported and of the Company’s financial condition as of the date of the interim balance sheet. The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated through the date of issuance of these financial statements. The operating results for the three and six months ended June 30, 2020 may not be indicative of the results expected for any succeeding quarter or the entire year ending December 31, 2020. ​ Use of Estimates in the Preparation of Financial Statements ​ The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the amounts reported in the accompanying condensed consolidated financial statements. ​ The Company’s operations and financial performance in certain areas of its business were negatively impacted by the coronavirus pandemic (“COVID-19”) in the six months ended June 30, 2020. The extent to which the COVID-19 pandemic impacts the Company’s financial results and operations for the remainder of 2020 and beyond will depend on future developments that are highly uncertain and cannot be predicted at this time. The Company updated its estimates and judgements in response to the economic uncertainty associated with COVID-19, which were reflected in the amounts reported in the accompanying condensed consolidated financial statements. The Company has experienced, and may continue to experience, delays in collecting amounts owed to it, and in some cases, may experience inabilities to collect altogether. As a result, the Company increased its customer allowance for doubtful accounts by $3,250 in the six months ended June 30, 2020 compared with the same period a year ago. The Company has also evaluated the potential impact of the pandemic on the carrying values of its goodwill and intangible assets, and based on the assessment, did not identify any indications to suggest that an impairment may exist. These estimates may change as new events occur and actual results could differ materially from these estimates. ​ Restructuring and other charges ​ The restructuring and other charges recorded in the second quarter of 2020 were related to an involuntary reduction in workforce across our business segments and included cash severance and other related termination benefits. These costs will be paid within a year of termination and any unpaid balances are included in accrued expenses at June 30, 2020. All currently planned restructuring and other charges were incurred as of June 30, 2020, and as of the date of this report, the Company has no ongoing restructuring plans. ​ The restructuring and other charges recorded in 2019 were related to a reduction in workforce in the Company’s Headquarters/Other group and included cash severance payments and other related benefits. Also included were exit costs incurred associated with the closing of one of our office facilities, which were expensed as incurred. ​ Restructuring and other charges are presented separately from SG&A expenses. Costs incurred were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, ​ ​ 2020 ​ 2019 ​ 2020 2019 Employee separations ​ $ 992 ​ $ — ​ $ 992 ​ $ 553 Lease termination costs ​ — ​ — ​ — ​ 150 Total restructuring and other charges ​ $ 992 ​ $ — ​ $ 992 ​ $ 703 ​ Included in accrued expenses as of June 30, 2020 and 2019 were $549 and $373, respectively, related to unpaid termination benefits. ​ Adoption of Recently Issued Financial Accounting Standards ​ In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment ​ In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses ​ Recently Issued Financial Accounting Standards ​ In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting

REVENUE

REVENUE	6 Months Ended
	Jun. 30, 2020
Revenue
Revenue	Note 2–Revenue ​ The Company disaggregates revenue from its arrangements with customers by type of products and services, as it believes this method best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. ​ The following tables represent a disaggregation of revenue from arrangements with customers for the three months ended June 30, 2020 and 2019, along with the reportable segment for each category. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, 2020 ​ Business Enterprise Public Sector Total Notebooks/Mobility ​ $ 62,652 ​ $ 79,730 ​ $ 50,308 ​ $ 192,690 Desktops ​ ​ 14,500 ​ ​ 27,014 ​ ​ 9,107 ​ ​ 50,621 Software ​ ​ 24,251 ​ ​ 24,876 ​ ​ 8,347 ​ ​ 57,474 Servers/Storage ​ ​ 23,646 ​ 22,976 ​ 8,020 ​ ​ 54,642 Net/Com Products ​ 14,764 ​ ​ 19,285 ​ ​ 7,444 ​ 41,493 Displays and Sound ​ ​ 19,231 ​ 18,524 ​ 9,686 ​ ​ 47,441 Accessories ​ 19,486 ​ 32,673 ​ 12,622 ​ 64,781 Other Hardware/Services ​ 12,559 ​ ​ 21,681 ​ ​ 6,620 ​ 40,860 Total net sales ​ $ 191,089 ​ $ 246,759 ​ $ 112,154 ​ $ 550,002 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, 2019 ​ Business Enterprise Public Sector Total Notebooks/Mobility ​ $ 80,422 ​ $ 96,842 ​ $ 34,691 ​ $ 211,955 Desktops ​ ​ 34,787 ​ ​ 39,277 ​ ​ 18,688 ​ ​ 92,752 Software ​ ​ 39,259 ​ ​ 35,739 ​ ​ 20,885 ​ ​ 95,883 Servers/Storage ​ ​ 29,383 ​ 14,737 ​ 20,157 ​ ​ 64,277 Net/Com Products ​ ​ 23,367 ​ 12,572 ​ 15,079 ​ ​ 51,018 Displays and Sound ​ 20,866 ​ ​ 26,236 ​ ​ 14,291 ​ 61,393 Accessories ​ 23,677 ​ 59,540 ​ 10,922 ​ 94,139 Other Hardware/Services ​ 19,291 ​ ​ 33,096 ​ ​ 17,272 ​ 69,659 Total net sales ​ $ 271,052 ​ $ 318,039 ​ $ 151,985 ​ $ 741,076 ​ The following table represents a disaggregation of revenue from arrangements with customers for the six months ended June 30, 2020 and 2019, along with the reportable segment for each category. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, 2020 ​ Business Enterprise Public Sector Total Notebooks/Mobility ​ $ 154,265 ​ $ 159,046 ​ $ 79,274 ​ $ 392,585 Desktops ​ ​ 47,794 ​ ​ 61,223 ​ ​ 19,579 ​ ​ 128,596 Software ​ ​ 60,649 ​ ​ 51,058 ​ ​ 15,642 ​ ​ 127,349 Servers/Storage ​ 49,476 ​ 39,210 ​ 19,766 ​ 108,452 Net/Com Products ​ ​ 35,776 ​ ​ 44,231 ​ ​ 17,254 ​ ​ 97,261 Displays and Sound ​ 43,177 ​ 42,092 ​ 21,129 ​ 106,398 Accessories ​ 47,507 ​ 123,647 ​ 21,431 ​ 192,585 Other Hardware/Services ​ ​ 31,230 ​ ​ 59,670 ​ ​ 17,726 ​ ​ 108,626 Total net sales ​ $ 469,874 ​ $ 580,177 ​ $ 211,801 ​ $ 1,261,852 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, 2019 ​ Business Enterprise Public Sector Total Notebooks/Mobility ​ ​ 161,357 ​ $ 163,407 ​ $ 62,066 ​ $ 386,830 Desktops ​ ​ 61,571 ​ ​ 75,246 ​ ​ 29,575 ​ ​ 166,392 Software ​ ​ 73,947 ​ ​ 63,515 ​ ​ 30,157 ​ ​ 167,619 Servers/Storage ​ ​ 55,100 ​ 32,162 ​ 32,573 ​ 119,835 Net/Com Products ​ ​ 45,606 ​ 27,200 ​ 25,223 ​ 98,029 Displays and Sound ​ ​ 41,198 ​ ​ 53,171 ​ ​ 24,170 ​ ​ 118,539 Accessories ​ 45,730 ​ 116,055 ​ 20,567 ​ 182,352 Other Hardware/Services ​ ​ 39,475 ​ ​ 62,918 ​ ​ 32,008 ​ ​ 134,401 Total net sales ​ $ 523,984 ​ $ 593,674 ​ $ 256,339 ​ $ 1,373,997 ​ Contract Balances ​ The following table provides information about contract liabilities from arrangements with customers as of June 30, 2020 and December 31, 2019. ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2020 December 31, 2019 Contract liabilities, which are included in "Accrued expenses and other liabilities" ​ $ 2,190 ​ $ 5,942 ​ Changes in the contract liability balances during the six months ended June 30, 2020 and 2019 are as follows (in thousands): ​ ​ ​ ​ ​ ​ 2019 Balances at December 31, 2018 $ 2,679 Cash received in advance and not recognized as revenue 7,168 Amounts recognized as revenue as performance obligations satisfied (5,123) Balances at June 30, 2019 $ 4,724 ​ ​ ​ ​ ​ ​ 2020 Balances at December 31, 2019 $ 5,942 Cash received in advance and not recognized as revenue 6,297 Amounts recognized as revenue as performance obligations satisfied (10,049) Balances at June 30, 2020 $ 2,190 ​

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2020
Earnings Per Share
Earnings Per Share	Note 3–Earnings Per Share ​ Basic earnings per common share is computed using the weighted average number of shares outstanding. Diluted earnings per share is computed using the weighted average number of shares outstanding adjusted for the incremental shares attributable to non-vested stock units and stock options outstanding, if dilutive. ​ The following table sets forth the computation of basic and diluted earnings per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, ​ ​ 2020 2019 2020 2019 Numerator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 7,643 ​ $ 23,668 ​ $ 22,539 ​ $ 36,395 ​ Denominator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator for basic earnings per share ​ 26,107 ​ 26,337 ​ 26,172 ​ 26,348 ​ Dilutive effect of unvested employee stock awards ​ 172 ​ 157 ​ 178 ​ 158 ​ Denominator for diluted earnings per share ​ 26,279 ​ 26,494 ​ 26,350 ​ 26,506 ​ Earnings per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 0.29 ​ $ 0.90 ​ $ 0.86 ​ $ 1.38 ​ Diluted ​ $ 0.29 ​ $ 0.89 ​ $ 0.86 ​ $ 1.37 ​ ​ For the three and six months ended June 30, 2020 and 2019, the Company had no outstanding non-vested stock units that were excluded from the computation of diluted earnings per share because including them would have had an anti-dilutive effect.

LEASES

LEASES	6 Months Ended
	Jun. 30, 2020
Leases
Leases	Note 4—Leases ​ The Company leases certain facilities from a related party, which is a company affiliated with us through common ownership. Included in the right-of-use asset as of June 30, 2020 was $4,014 and a corresponding lease liability of $4,014 associated with related party leases. ​ As of June 30, 2020, there were no additional operating leases that have not yet commenced. Refer to the following table for quantitative information related to the Company’s leases for the three and six months ended June 30, 2020 and 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, 2020 Six months ended June 30, 2020 ​ Related Parties ​ Others ​ Total Related Parties ​ Others ​ Total Lease Cost ​ ​ ​ ​ ​ Capitalized operating lease cost $ 379 ​ $ 798 ​ $ 1,177 ​ $ 758 ​ $ 1,581 ​ $ 2,339 Short-term lease cost 41 ​ 2 ​ 43 ​ 82 ​ 4 ​ 86 Total lease cost $ 420 ​ $ 800 ​ $ 1,220 ​ $ 840 ​ $ 1,585 ​ $ 2,425 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Information ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating cash flows $ 379 ​ $ 827 ​ $ 1,206 ​ $ 758 ​ $ 1,608 ​ $ 2,366 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average remaining lease term (in years): ​ ​ ​ ​ ​ Capitalized operating leases ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 3.42 ​ ​ 6.05 ​ ​ 5.37 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average discount rate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized operating leases ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 3.92% ​ ​ 3.92% ​ ​ 3.92% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, 2019 Six months ended June 30, 2019 ​ Related Parties ​ Others ​ Total Related Parties ​ Others ​ Total Lease Cost ​ ​ ​ ​ ​ Capitalized operating lease cost $ 379 ​ $ 792 ​ $ 1,171 ​ $ 758 ​ $ 1,623 ​ $ 2,381 Short-term lease cost 41 ​ 2 ​ 43 ​ 82 ​ 4 ​ 86 Total lease cost $ 420 ​ $ 794 ​ $ 1,214 ​ $ 840 ​ $ 1,627 ​ $ 2,467 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Information ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating cash flows $ 379 ​ $ 870 ​ $ 1,249 ​ $ 758 ​ $ 1,754 ​ $ 2,512 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average remaining lease term (in years): ​ ​ ​ ​ ​ Capitalized operating leases ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 4.35 ​ ​ 10.69 ​ ​ 8.58 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average discount rate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized operating leases ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 3.92% ​ ​ 3.92% ​ ​ 3.92% ​ As of June 30, 2020, 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, excluding the six months ended June 30, 2020 ​ $ 627 ​ $ 1,664 ​ $ 2,291 2021 ​ 1,253 ​ 3,092 ​ 4,345 2022 ​ 1,253 ​ 2,111 ​ 3,364 2023 ​ 1,149 ​ 1,675 ​ 2,824 2024 ​ ​ — ​ ​ 1,699 ​ ​ 1,699 2025 ​ ​ — ​ ​ 1,594 ​ ​ 1,594 Thereafter ​ ​ — ​ ​ 888 ​ ​ 888 ​ ​ ​ 4,282 ​ ​ 12,723 ​ ​ 17,005 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Imputed interest ​ ​ ​ ​ ​ ​ ​ ​ (1,440) Lease liability balance at June 30, 2020 ​ ​ ​ ​ ​ ​ ​ $ 15,565 ​ As of June 30, 2020, the ROU asset had a balance of $14,755. The long-term lease liability was $11,566 and the short-term lease liability .

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Jun. 30, 2020
Segment Information
Segment Information	Note 5–Segment Information ​ 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 reportable segments—the Business Solutions segment, which serves primarily small- and medium-sized businesses; the Enterprise Solutions segment, which serves primarily medium-to-large corporations; and the Public Sector Solutions segment, which serves primarily federal, state, and local governmental and educational institutions. In addition, the Headquarters/Other group provides services in areas such as finance, human resources, information technology, marketing, and product management. Most of the operating costs associated with the Headquarters/Other group functions are charged to the operating segments based on their estimated usage of the underlying functions. 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. ​ Segment information applicable to our reportable operating segments for the three and six months ended June 30, 2020 and 2019 is shown below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, ​ ​ 2020 2019 2020 2019 Net sales: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Business Solutions ​ $ 191,089 ​ $ 271,052 ​ $ 469,874 ​ $ 523,984 ​ Enterprise Solutions ​ 246,759 ​ 318,039 ​ 580,177 ​ 593,674 ​ Public Sector Solutions ​ 112,154 ​ 151,985 ​ 211,801 ​ 256,339 ​ Total net sales ​ $ 550,002 ​ $ 741,076 ​ $ 1,261,852 ​ $ 1,373,997 ​ Operating income (loss): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Business Solutions ​ $ 1,452 ​ $ 16,211 ​ $ 12,752 ​ $ 24,976 ​ Enterprise Solutions ​ 13,667 ​ 19,108 ​ 30,390 ​ 34,581 ​ Public Sector Solutions ​ (1,807) ​ 661 ​ (5,130) ​ (2,405) ​ Headquarters/Other ​ (2,724) ​ (3,657) ​ (6,773) ​ (7,420) ​ Total operating income ​ 10,588 ​ 32,323 ​ 31,239 ​ 49,732 ​ Interest income, net ​ 5 ​ 184 ​ 96 ​ 382 ​ Income before taxes ​ $ 10,593 ​ $ 32,507 ​ $ 31,335 ​ $ 50,114 ​ Selected operating expense: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Business Solutions ​ $ 159 ​ $ 148 ​ $ 318 ​ $ 298 ​ Enterprise Solutions ​ 679 ​ 606 ​ 1,361 ​ 1,245 ​ Public Sector Solutions ​ 15 ​ 25 ​ 30 ​ 46 ​ Headquarters/Other ​ 2,502 ​ 2,589 ​ 4,793 ​ 5,488 ​ Total depreciation and amortization ​ $ 3,355 ​ $ 3,368 ​ $ 6,502 ​ $ 7,077 ​ Total assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Business Solutions ​ ​ ​ ​ ​ ​ ​ $ 326,748 ​ $ 291,912 ​ Enterprise Solutions ​ ​ ​ ​ ​ ​ ​ 538,994 ​ 506,086 ​ Public Sector Solutions ​ ​ ​ ​ ​ ​ ​ 73,885 ​ 80,461 ​ Headquarters/Other ​ ​ ​ ​ ​ ​ ​ 14,713 ​ 33,343 ​ Total assets ​ ​ ​ ​ ​ ​ ​ $ 954,340 ​ $ 911,802 ​ ​ The assets of our three operating segments presented above consist primarily of accounts receivable, net intercompany receivable, goodwill, and other intangibles. Assets reported under the Headquarters/Other group are managed by corporate headquarters, including cash, inventory, property and equipment, right-of-use assets, and intercompany balance, net. As of June 30, 2020 and 2019, total assets for the Headquarters/Other group are presented net of intercompany balance eliminations of $29,100 and $25,093 , respectively. Our capital expenditures consist largely of IT hardware and software purchased to maintain or upgrade our management information systems. These information systems serve all of our segments, to varying degrees, and accordingly, our CODM does not evaluate capital expenditures on a segment-by-segment basis.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies
Commitments and Contingencies	Note 6–Commitments and 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, adverse effect on our financial position, results of operations, and/or cash flows. ​ The Company is subject to audits by states on sales and income taxes, employment matters, and other assessments. Additional liabilities for these and other audits could be assessed, but such outcomes are not expected to have a material, adverse impact on our financial position, results of operations, and/or cash flows.

BANK BORROWINGS

BANK BORROWINGS	6 Months Ended
	Jun. 30, 2020
Bank Borrowings
Bank Borrowings	Note 7–Bank Borrowings ​ The Company has a $50,000 credit facility collateralized by our account receivables that expires February 10, 2022 . This facility can be increased, at our option, to $80,000 for permitted acquisitions or other uses authorized by the lender on substantially the same terms. Amounts outstanding under this facility bear interest at the one-month London Interbank Offered Rate (“ LIBOR ”) (0.16% at June 30, 2020), plus a spread based on our funded debt ratio, or in the absence of LIBOR, the prime rate (3.25% at June 30, 2020). 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 trailing twelve months Adjusted EBITDA (Earnings Before Interest Expense, Taxes, Depreciation, Amortization, and Special Charges). The maximum allowable funded debt ratio under the agreement is 2.0 to 1.0. Decreases in our consolidated trailing twelve months Adjusted EBITDA could limit our potential borrowing capacity under the credit facility. The Company had no outstanding bank borrowings at June 30, 2020 or 2019, and accordingly, the entire $50,000 facility was available for borrowings under the credit facility. ​

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2020
Basis of Presentation
Principles of Consolidation	​ The accompanying unaudited condensed consolidated financial statements of PC Connection, Inc. and its subsidiaries (the “Company”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission regarding interim financial reporting and in accordance with accounting principles generally accepted in the United States of America. Such principles were applied on a basis consistent with the accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission (the “SEC”). The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements contained in the Company’s Annual Report on Form 10-K. ​ In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the results of operations for the interim periods reported and of the Company’s financial condition as of the date of the interim balance sheet. The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated through the date of issuance of these financial statements. The operating results for the three and six months ended June 30, 2020 may not be indicative of the results expected for any succeeding quarter or the entire year ending December 31, 2020. ​
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 amounts reported in the accompanying condensed consolidated financial statements. ​ The Company’s operations and financial performance in certain areas of its business were negatively impacted by the coronavirus pandemic (“COVID-19”) in the six months ended June 30, 2020. The extent to which the COVID-19 pandemic impacts the Company’s financial results and operations for the remainder of 2020 and beyond will depend on future developments that are highly uncertain and cannot be predicted at this time. The Company updated its estimates and judgements in response to the economic uncertainty associated with COVID-19, which were reflected in the amounts reported in the accompanying condensed consolidated financial statements. The Company has experienced, and may continue to experience, delays in collecting amounts owed to it, and in some cases, may experience inabilities to collect altogether. As a result, the Company increased its customer allowance for doubtful accounts by $3,250 in the six months ended June 30, 2020 compared with the same period a year ago. The Company has also evaluated the potential impact of the pandemic on the carrying values of its goodwill and intangible assets, and based on the assessment, did not identify any indications to suggest that an impairment may exist. These estimates may change as new events occur and actual results could differ materially from these estimates.
Restructuring and other charges	Restructuring and other charges ​ The restructuring and other charges recorded in the second quarter of 2020 were related to an involuntary reduction in workforce across our business segments and included cash severance and other related termination benefits. These costs will be paid within a year of termination and any unpaid balances are included in accrued expenses at June 30, 2020. All currently planned restructuring and other charges were incurred as of June 30, 2020, and as of the date of this report, the Company has no ongoing restructuring plans. ​ The restructuring and other charges recorded in 2019 were related to a reduction in workforce in the Company’s Headquarters/Other group and included cash severance payments and other related benefits. Also included were exit costs incurred associated with the closing of one of our office facilities, which were expensed as incurred. ​ Restructuring and other charges are presented separately from SG&A expenses. Costs incurred were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, ​ ​ 2020 ​ 2019 ​ 2020 2019 Employee separations ​ $ 992 ​ $ — ​ $ 992 ​ $ 553 Lease termination costs ​ — ​ — ​ — ​ 150 Total restructuring and other charges ​ $ 992 ​ $ — ​ $ 992 ​ $ 703 ​ Included in accrued expenses as of June 30, 2020 and 2019 were $549 and $373, respectively, related to unpaid termination benefits. ​
Adoption of Recently Issued Financial Accounting Standards and Recently Issued Financial Accounting Standards	Adoption of Recently Issued Financial Accounting Standards ​ In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment ​ In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses ​ Recently Issued Financial Accounting Standards ​ In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting

BASIS OF PRESENTATION (Tables)

BASIS OF PRESENTATION (Tables)	6 Months Ended
	Jun. 30, 2020
Basis of Presentation
Schedule of restructuring and other charges	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, ​ ​ 2020 ​ 2019 ​ 2020 2019 Employee separations ​ $ 992 ​ $ — ​ $ 992 ​ $ 553 Lease termination costs ​ — ​ — ​ — ​ 150 Total restructuring and other charges ​ $ 992 ​ $ — ​ $ 992 ​ $ 703

REVENUE (Tables)

REVENUE (Tables)	6 Months Ended
	Jun. 30, 2020
Revenue
Schedule of disaggregation of revenue from contracts with customers	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, 2020 ​ Business Enterprise Public Sector Total Notebooks/Mobility ​ $ 62,652 ​ $ 79,730 ​ $ 50,308 ​ $ 192,690 Desktops ​ ​ 14,500 ​ ​ 27,014 ​ ​ 9,107 ​ ​ 50,621 Software ​ ​ 24,251 ​ ​ 24,876 ​ ​ 8,347 ​ ​ 57,474 Servers/Storage ​ ​ 23,646 ​ 22,976 ​ 8,020 ​ ​ 54,642 Net/Com Products ​ 14,764 ​ ​ 19,285 ​ ​ 7,444 ​ 41,493 Displays and Sound ​ ​ 19,231 ​ 18,524 ​ 9,686 ​ ​ 47,441 Accessories ​ 19,486 ​ 32,673 ​ 12,622 ​ 64,781 Other Hardware/Services ​ 12,559 ​ ​ 21,681 ​ ​ 6,620 ​ 40,860 Total net sales ​ $ 191,089 ​ $ 246,759 ​ $ 112,154 ​ $ 550,002 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, 2019 ​ Business Enterprise Public Sector Total Notebooks/Mobility ​ $ 80,422 ​ $ 96,842 ​ $ 34,691 ​ $ 211,955 Desktops ​ ​ 34,787 ​ ​ 39,277 ​ ​ 18,688 ​ ​ 92,752 Software ​ ​ 39,259 ​ ​ 35,739 ​ ​ 20,885 ​ ​ 95,883 Servers/Storage ​ ​ 29,383 ​ 14,737 ​ 20,157 ​ ​ 64,277 Net/Com Products ​ ​ 23,367 ​ 12,572 ​ 15,079 ​ ​ 51,018 Displays and Sound ​ 20,866 ​ ​ 26,236 ​ ​ 14,291 ​ 61,393 Accessories ​ 23,677 ​ 59,540 ​ 10,922 ​ 94,139 Other Hardware/Services ​ 19,291 ​ ​ 33,096 ​ ​ 17,272 ​ 69,659 Total net sales ​ $ 271,052 ​ $ 318,039 ​ $ 151,985 ​ $ 741,076 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, 2020 ​ Business Enterprise Public Sector Total Notebooks/Mobility ​ $ 154,265 ​ $ 159,046 ​ $ 79,274 ​ $ 392,585 Desktops ​ ​ 47,794 ​ ​ 61,223 ​ ​ 19,579 ​ ​ 128,596 Software ​ ​ 60,649 ​ ​ 51,058 ​ ​ 15,642 ​ ​ 127,349 Servers/Storage ​ 49,476 ​ 39,210 ​ 19,766 ​ 108,452 Net/Com Products ​ ​ 35,776 ​ ​ 44,231 ​ ​ 17,254 ​ ​ 97,261 Displays and Sound ​ 43,177 ​ 42,092 ​ 21,129 ​ 106,398 Accessories ​ 47,507 ​ 123,647 ​ 21,431 ​ 192,585 Other Hardware/Services ​ ​ 31,230 ​ ​ 59,670 ​ ​ 17,726 ​ ​ 108,626 Total net sales ​ $ 469,874 ​ $ 580,177 ​ $ 211,801 ​ $ 1,261,852 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, 2019 ​ Business Enterprise Public Sector Total Notebooks/Mobility ​ ​ 161,357 ​ $ 163,407 ​ $ 62,066 ​ $ 386,830 Desktops ​ ​ 61,571 ​ ​ 75,246 ​ ​ 29,575 ​ ​ 166,392 Software ​ ​ 73,947 ​ ​ 63,515 ​ ​ 30,157 ​ ​ 167,619 Servers/Storage ​ ​ 55,100 ​ 32,162 ​ 32,573 ​ 119,835 Net/Com Products ​ ​ 45,606 ​ 27,200 ​ 25,223 ​ 98,029 Displays and Sound ​ ​ 41,198 ​ ​ 53,171 ​ ​ 24,170 ​ ​ 118,539 Accessories ​ 45,730 ​ 116,055 ​ 20,567 ​ 182,352 Other Hardware/Services ​ ​ 39,475 ​ ​ 62,918 ​ ​ 32,008 ​ ​ 134,401 Total net sales ​ $ 523,984 ​ $ 593,674 ​ $ 256,339 ​ $ 1,373,997
Schedule of information on contract liability	​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2020 December 31, 2019 Contract liabilities, which are included in "Accrued expenses and other liabilities" ​ $ 2,190 ​ $ 5,942 ​ Changes in the contract liability balances during the six months ended June 30, 2020 and 2019 are as follows (in thousands): ​ ​ ​ ​ ​ ​ 2019 Balances at December 31, 2018 $ 2,679 Cash received in advance and not recognized as revenue 7,168 Amounts recognized as revenue as performance obligations satisfied (5,123) Balances at June 30, 2019 $ 4,724 ​ ​ ​ ​ ​ ​ 2020 Balances at December 31, 2019 $ 5,942 Cash received in advance and not recognized as revenue 6,297 Amounts recognized as revenue as performance obligations satisfied (10,049) Balances at June 30, 2020 $ 2,190

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2020
Earnings Per Share
Computation of basic and diluted earnings per share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, ​ ​ 2020 2019 2020 2019 Numerator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 7,643 ​ $ 23,668 ​ $ 22,539 ​ $ 36,395 ​ Denominator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator for basic earnings per share ​ 26,107 ​ 26,337 ​ 26,172 ​ 26,348 ​ Dilutive effect of unvested employee stock awards ​ 172 ​ 157 ​ 178 ​ 158 ​ Denominator for diluted earnings per share ​ 26,279 ​ 26,494 ​ 26,350 ​ 26,506 ​ Earnings per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 0.29 ​ $ 0.90 ​ $ 0.86 ​ $ 1.38 ​ Diluted ​ $ 0.29 ​ $ 0.89 ​ $ 0.86 ​ $ 1.37 ​

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jun. 30, 2020
Leases
Schedule of lease cost	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, 2020 Six months ended June 30, 2020 ​ Related Parties ​ Others ​ Total Related Parties ​ Others ​ Total Lease Cost ​ ​ ​ ​ ​ Capitalized operating lease cost $ 379 ​ $ 798 ​ $ 1,177 ​ $ 758 ​ $ 1,581 ​ $ 2,339 Short-term lease cost 41 ​ 2 ​ 43 ​ 82 ​ 4 ​ 86 Total lease cost $ 420 ​ $ 800 ​ $ 1,220 ​ $ 840 ​ $ 1,585 ​ $ 2,425 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Information ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating cash flows $ 379 ​ $ 827 ​ $ 1,206 ​ $ 758 ​ $ 1,608 ​ $ 2,366 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average remaining lease term (in years): ​ ​ ​ ​ ​ Capitalized operating leases ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 3.42 ​ ​ 6.05 ​ ​ 5.37 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average discount rate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized operating leases ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 3.92% ​ ​ 3.92% ​ ​ 3.92% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, 2019 Six months ended June 30, 2019 ​ Related Parties ​ Others ​ Total Related Parties ​ Others ​ Total Lease Cost ​ ​ ​ ​ ​ Capitalized operating lease cost $ 379 ​ $ 792 ​ $ 1,171 ​ $ 758 ​ $ 1,623 ​ $ 2,381 Short-term lease cost 41 ​ 2 ​ 43 ​ 82 ​ 4 ​ 86 Total lease cost $ 420 ​ $ 794 ​ $ 1,214 ​ $ 840 ​ $ 1,627 ​ $ 2,467 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Information ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating cash flows $ 379 ​ $ 870 ​ $ 1,249 ​ $ 758 ​ $ 1,754 ​ $ 2,512 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average remaining lease term (in years): ​ ​ ​ ​ ​ Capitalized operating leases ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 4.35 ​ ​ 10.69 ​ ​ 8.58 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average discount rate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized operating leases ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 3.92% ​ ​ 3.92% ​ ​ 3.92%
Schedule of future lease payments on capitalized operating leases	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years Ended December 31, ​ Related Parties ​ Others ​ Total 2020, excluding the six months ended June 30, 2020 ​ $ 627 ​ $ 1,664 ​ $ 2,291 2021 ​ 1,253 ​ 3,092 ​ 4,345 2022 ​ 1,253 ​ 2,111 ​ 3,364 2023 ​ 1,149 ​ 1,675 ​ 2,824 2024 ​ ​ — ​ ​ 1,699 ​ ​ 1,699 2025 ​ ​ — ​ ​ 1,594 ​ ​ 1,594 Thereafter ​ ​ — ​ ​ 888 ​ ​ 888 ​ ​ ​ 4,282 ​ ​ 12,723 ​ ​ 17,005 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Imputed interest ​ ​ ​ ​ ​ ​ ​ ​ (1,440) Lease liability balance at June 30, 2020 ​ ​ ​ ​ ​ ​ ​ $ 15,565

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2020
Segment Information
Segment information applicable to reportable operating segments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, ​ ​ 2020 2019 2020 2019 Net sales: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Business Solutions ​ $ 191,089 ​ $ 271,052 ​ $ 469,874 ​ $ 523,984 ​ Enterprise Solutions ​ 246,759 ​ 318,039 ​ 580,177 ​ 593,674 ​ Public Sector Solutions ​ 112,154 ​ 151,985 ​ 211,801 ​ 256,339 ​ Total net sales ​ $ 550,002 ​ $ 741,076 ​ $ 1,261,852 ​ $ 1,373,997 ​ Operating income (loss): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Business Solutions ​ $ 1,452 ​ $ 16,211 ​ $ 12,752 ​ $ 24,976 ​ Enterprise Solutions ​ 13,667 ​ 19,108 ​ 30,390 ​ 34,581 ​ Public Sector Solutions ​ (1,807) ​ 661 ​ (5,130) ​ (2,405) ​ Headquarters/Other ​ (2,724) ​ (3,657) ​ (6,773) ​ (7,420) ​ Total operating income ​ 10,588 ​ 32,323 ​ 31,239 ​ 49,732 ​ Interest income, net ​ 5 ​ 184 ​ 96 ​ 382 ​ Income before taxes ​ $ 10,593 ​ $ 32,507 ​ $ 31,335 ​ $ 50,114 ​ Selected operating expense: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Business Solutions ​ $ 159 ​ $ 148 ​ $ 318 ​ $ 298 ​ Enterprise Solutions ​ 679 ​ 606 ​ 1,361 ​ 1,245 ​ Public Sector Solutions ​ 15 ​ 25 ​ 30 ​ 46 ​ Headquarters/Other ​ 2,502 ​ 2,589 ​ 4,793 ​ 5,488 ​ Total depreciation and amortization ​ $ 3,355 ​ $ 3,368 ​ $ 6,502 ​ $ 7,077 ​ Total assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Business Solutions ​ ​ ​ ​ ​ ​ ​ $ 326,748 ​ $ 291,912 ​ Enterprise Solutions ​ ​ ​ ​ ​ ​ ​ 538,994 ​ 506,086 ​ Public Sector Solutions ​ ​ ​ ​ ​ ​ ​ 73,885 ​ 80,461 ​ Headquarters/Other ​ ​ ​ ​ ​ ​ ​ 14,713 ​ 33,343 ​ Total assets ​ ​ ​ ​ ​ ​ ​ $ 954,340 ​ $ 911,802 ​

BASIS OF PRESENTATION - Restruc

BASIS OF PRESENTATION - Restructuring and Other Charges (Details) $ in Thousands	3 Months Ended	6 Months Ended		12 Months Ended
	Jun. 30, 2020USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Dec. 31, 2019facility
Restructuring and other charges
Number of office facilities closed | facility				1
Restructuring and other charges	$ 992	$ 992	$ 703
Accrued employee termination benefits	549	549	373
Customer allowance for doubtful accounts
Increase in customer allowance for doubtful accounts due to COVID-19		3,250
Employee separations
Restructuring and other charges
Restructuring and other charges	$ 992	$ 992	553
Lease termination costs
Restructuring and other charges
Restructuring and other charges			$ 150

REVENUE - Disaggregation of Rev

REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Disaggregation of revenue
Net sales	$ 550,002	$ 741,076	$ 1,261,852	$ 1,373,997
Notebooks/Mobility
Disaggregation of revenue
Net sales	192,690	211,955	392,585	386,830
Desktops
Disaggregation of revenue
Net sales	50,621	92,752	128,596	166,392
Software
Disaggregation of revenue
Net sales	57,474	95,883	127,349	167,619
Servers/Storage
Disaggregation of revenue
Net sales	54,642	64,277	108,452	119,835
Net/Com Products
Disaggregation of revenue
Net sales	41,493	51,018	97,261	98,029
Displays and Sound
Disaggregation of revenue
Net sales	47,441	61,393	106,398	118,539
Accessories
Disaggregation of revenue
Net sales	64,781	94,139	192,585	182,352
Other Hardware/Services
Disaggregation of revenue
Net sales	40,860	69,659	108,626	134,401
Business Solutions
Disaggregation of revenue
Net sales	191,089	271,052	469,874	523,984
Business Solutions | Notebooks/Mobility
Disaggregation of revenue
Net sales	62,652	80,422	154,265	161,357
Business Solutions | Desktops
Disaggregation of revenue
Net sales	14,500	34,787	47,794	61,571
Business Solutions | Software
Disaggregation of revenue
Net sales	24,251	39,259	60,649	73,947
Business Solutions | Servers/Storage
Disaggregation of revenue
Net sales	23,646	29,383	49,476	55,100
Business Solutions | Net/Com Products
Disaggregation of revenue
Net sales	14,764	23,367	35,776	45,606
Business Solutions | Displays and Sound
Disaggregation of revenue
Net sales	19,231	20,866	43,177	41,198
Business Solutions | Accessories
Disaggregation of revenue
Net sales	19,486	23,677	47,507	45,730
Business Solutions | Other Hardware/Services
Disaggregation of revenue
Net sales	12,559	19,291	31,230	39,475
Enterprise Solutions
Disaggregation of revenue
Net sales	246,759	318,039	580,177	593,674
Enterprise Solutions | Notebooks/Mobility
Disaggregation of revenue
Net sales	79,730	96,842	159,046	163,407
Enterprise Solutions | Desktops
Disaggregation of revenue
Net sales	27,014	39,277	61,223	75,246
Enterprise Solutions | Software
Disaggregation of revenue
Net sales	24,876	35,739	51,058	63,515
Enterprise Solutions | Servers/Storage
Disaggregation of revenue
Net sales	22,976	14,737	39,210	32,162
Enterprise Solutions | Net/Com Products
Disaggregation of revenue
Net sales	19,285	12,572	44,231	27,200
Enterprise Solutions | Displays and Sound
Disaggregation of revenue
Net sales	18,524	26,236	42,092	53,171
Enterprise Solutions | Accessories
Disaggregation of revenue
Net sales	32,673	59,540	123,647	116,055
Enterprise Solutions | Other Hardware/Services
Disaggregation of revenue
Net sales	21,681	33,096	59,670	62,918
Public Sector Solutions
Disaggregation of revenue
Net sales	112,154	151,985	211,801	256,339
Public Sector Solutions | Notebooks/Mobility
Disaggregation of revenue
Net sales	50,308	34,691	79,274	62,066
Public Sector Solutions | Desktops
Disaggregation of revenue
Net sales	9,107	18,688	19,579	29,575
Public Sector Solutions | Software
Disaggregation of revenue
Net sales	8,347	20,885	15,642	30,157
Public Sector Solutions | Servers/Storage
Disaggregation of revenue
Net sales	8,020	20,157	19,766	32,573
Public Sector Solutions | Net/Com Products
Disaggregation of revenue
Net sales	7,444	15,079	17,254	25,223
Public Sector Solutions | Displays and Sound
Disaggregation of revenue
Net sales	9,686	14,291	21,129	24,170
Public Sector Solutions | Accessories
Disaggregation of revenue
Net sales	12,622	10,922	21,431	20,567
Public Sector Solutions | Other Hardware/Services
Disaggregation of revenue
Net sales	$ 6,620	$ 17,272	$ 17,726	$ 32,008

REVENUE - Contract Balances (De

REVENUE - Contract Balances (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Change in contract liability
Beginning balance - Contract liability	$ 5,942	$ 2,679
Cash received in advance and not recognized as revenue	6,297	7,168
Amounts recognized as revenue as performance obligations satisfied	(10,049)	(5,123)
Ending balance - Contract liability	2,190	$ 4,724
Accrued expenses and other liabilities
Contract liabilities
Contract liabilities	$ 2,190		$ 5,942

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Numerator:
Net income	$ 7,643	$ 23,668	$ 22,539	$ 36,395
Denominator:
Denominator for basic earnings per share	26,107	26,337	26,172	26,348
Dilutive effect of unvested employee stock awards	172	157	178	158
Denominator for diluted earnings per share	26,279	26,494	26,350	26,506
Earnings per share:
Basic	$ 0.29	$ 0.90	$ 0.86	$ 1.38
Diluted	$ 0.29	$ 0.89	$ 0.86	$ 1.37
Additional Disclosure
Employee stock awards excluded from computation of diluted earnings per share	0	0	0	0

LEASES - Lease Cost and Other I

LEASES - Lease Cost and Other Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2020USD ($)lease	Jun. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Leases
Right-of-use assets	$ 14,755		$ 14,755		$ 13,842
Lease liability	15,565		$ 15,565
Number of additional operating or financing leases not yet commenced | lease			0
Lease Cost
Capitalized operating lease cost	1,177	$ 1,171	$ 2,339	$ 2,381
Short-term lease cost	43	43	86	86
Total lease cost	1,220	1,214	2,425	2,467
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$ 1,206	$ 1,249	$ 2,366	$ 2,512
Weighted-average remaining lease term - Capitalized operating leases (in years)	5 years 4 months 13 days	8 years 6 months 29 days	5 years 4 months 13 days	8 years 6 months 29 days
Weighted-average discount rate - Capitalized operating leases	3.92%	3.92%	3.92%	3.92%
Related Parties
Leases
Right-of-use assets	$ 4,014		$ 4,014
Lease liability	4,014		4,014
Lease Cost
Capitalized operating lease cost	379	$ 379	758	$ 758
Short-term lease cost	41	41	82	82
Total lease cost	420	420	840	840
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$ 379	$ 379	$ 758	$ 758
Weighted-average remaining lease term - Capitalized operating leases (in years)	3 years 5 months 1 day	4 years 4 months 6 days	3 years 5 months 1 day	4 years 4 months 6 days
Weighted-average discount rate - Capitalized operating leases	3.92%	3.92%	3.92%	3.92%
Others
Lease Cost
Capitalized operating lease cost	$ 798	$ 792	$ 1,581	$ 1,623
Short-term lease cost	2	2	4	4
Total lease cost	800	794	1,585	1,627
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$ 827	$ 870	$ 1,608	$ 1,754
Weighted-average remaining lease term - Capitalized operating leases (in years)	6 years 18 days	10 years 8 months 8 days	6 years 18 days	10 years 8 months 8 days
Weighted-average discount rate - Capitalized operating leases	3.92%	3.92%	3.92%	3.92%

LEASES - Future Lease Payments

LEASES - Future Lease Payments (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Future lease payments over the remaining term of capitalized operating leases
2020, excluding the six months ended June 30, 2020	$ 2,291
2021	4,345
2022	3,364
2023	2,824
2024	1,699
2025	1,594
Thereafter	888
Total	17,005
Imputed interest	(1,440)
Lease liability balance	15,565
Right-of-use assets	14,755	$ 13,842
Long-term lease liability	11,566	$ 10,330
Short-term lease liability	$ 3,999
Current operating lease liability, Statement of Financial Position	us-gaap:AccruedLiabilitiesAndOtherLiabilities
Related Parties
Future lease payments over the remaining term of capitalized operating leases
2020, excluding the six months ended June 30, 2020	$ 627
2021	1,253
2022	1,253
2023	1,149
Total	4,282
Lease liability balance	4,014
Right-of-use assets	4,014
Others
Future lease payments over the remaining term of capitalized operating leases
2020, excluding the six months ended June 30, 2020	1,664
2021	3,092
2022	2,111
2023	1,675
2024	1,699
2025	1,594
Thereafter	888
Total	$ 12,723

SEGMENT INFORMATION - Segment I

SEGMENT INFORMATION - Segment Information Applicable to Reportable Operating Segments (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2020USD ($)segment	Jun. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Segment Reporting Information
Number of reportable segments | segment			3
Number of operating segments | segment			3
Net sales:
Net sales	$ 550,002	$ 741,076	$ 1,261,852	$ 1,373,997
Operating income (loss):
Operating income (loss)	10,588	32,323	31,239	49,732
Interest income, net	5	184	96	382
Income before taxes	10,593	32,507	31,335	50,114
Depreciation and amortization:
Depreciation and amortization	3,355	3,368	6,502	7,077
Total assets:
Total assets	954,340	911,802	954,340	911,802	$ 937,335
Goodwill	73,602		73,602		$ 73,602
Business Solutions
Net sales:
Net sales	191,089	271,052	469,874	523,984
Enterprise Solutions
Net sales:
Net sales	246,759	318,039	580,177	593,674
Public Sector Solutions
Net sales:
Net sales	112,154	151,985	211,801	256,339
Operating Segments | Business Solutions
Net sales:
Net sales	191,089	271,052	469,874	523,984
Operating income (loss):
Operating income (loss)	1,452	16,211	12,752	24,976
Depreciation and amortization:
Depreciation and amortization	159	148	318	298
Total assets:
Total assets	326,748	291,912	326,748	291,912
Operating Segments | Enterprise Solutions
Net sales:
Net sales	246,759	318,039	580,177	593,674
Operating income (loss):
Operating income (loss)	13,667	19,108	30,390	34,581
Depreciation and amortization:
Depreciation and amortization	679	606	1,361	1,245
Total assets:
Total assets	538,994	506,086	538,994	506,086
Operating Segments | Public Sector Solutions
Net sales:
Net sales	112,154	151,985	211,801	256,339
Operating income (loss):
Operating income (loss)	(1,807)	661	(5,130)	(2,405)
Depreciation and amortization:
Depreciation and amortization	15	25	30	46
Total assets:
Total assets	73,885	80,461	73,885	80,461
Headquarters/Other
Operating income (loss):
Operating income (loss)	(2,724)	(3,657)	(6,773)	(7,420)
Depreciation and amortization:
Depreciation and amortization	2,502	2,589	4,793	5,488
Total assets:
Assets net of intercompany balance eliminations	14,713	33,343	14,713	33,343
Intersegment Elimination
Total assets:
Total assets	$ (29,100)	$ (25,093)	$ (29,100)	$ (25,093)

BANK BORROWINGS (Details)

BANK BORROWINGS (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
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	3.25%
One-month LIBOR rate
Subordinated Borrowing
Debt instrument, interest rate	0.16%