PC Connection (CNXN) 10-Q 4 Nov 21 2021 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2021	Oct. 29, 2021
Document And Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2021
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		26,209,380
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001050377
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Current Assets:
Cash and cash equivalents	$ 89,728	$ 95,655
Accounts receivable, net	585,380	611,021
Inventories, net	175,374	140,867
Prepaid expenses and other current assets	11,797	11,437
Total current assets	862,279	858,980
Property and equipment, net	60,623	61,537
Right-of-use assets	10,218	12,821
Goodwill	73,602	73,602
Intangible assets, net	6,173	7,088
Other assets	1,031	1,345
Total Assets	1,013,926	1,015,373
Current Liabilities:
Accounts payable	217,084	266,846
Accrued payroll	24,023	17,828
Accrued expenses and other liabilities	52,241	57,586
Total current liabilities	293,348	342,260
Deferred income taxes	18,525	18,525
Noncurrent operating lease liabilities	7,353	9,631
Other liabilities	8,528	8,630
Total Liabilities	327,754	379,046
Stockholders' Equity:
Common stock	290	289
Additional paid-in capital	122,214	119,891
Retained earnings	609,605	562,084
Treasury stock, at cost	(45,937)	(45,937)
Total Stockholders' Equity	686,172	636,327
Total Liabilities and Stockholders' Equity	$ 1,013,926	$ 1,015,373

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Consolidated Statements of Income
Net sales	$ 751,368	$ 652,752	$ 2,092,421	$ 1,914,603
Cost of sales	630,671	544,922	1,754,877	1,604,656
Gross profit	120,697	107,830	337,544	309,947
Selling, general and administrative expenses	93,369	86,753	272,332	256,640
Restructuring and other charges				992
Income from operations	27,328	21,077	65,212	52,315
Other (expenses) income, net		(17)	7	80
Income before taxes	27,328	21,060	65,219	52,395
Income tax provision	(7,283)	(4,130)	(17,698)	(12,926)
Net income	$ 20,045	$ 16,930	$ 47,521	$ 39,469
Earnings per common share:
Basic	$ 0.77	$ 0.65	$ 1.81	$ 1.51
Diluted	$ 0.76	$ 0.64	$ 1.80	$ 1.50
Shares used in computation of earnings per common share:
Basic	26,197	26,130	26,186	26,158
Diluted	26,368	26,311	26,362	26,337

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings	Treasury Shares	Total
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)
Issuance of common stock under Employee Stock Purchase Plan		536			536
Issuance of common stock under Employee Stock Purchase Plan (in shares)	12
Stock-based compensation expense		1,866			1,866
Restricted stock units vested	$ 1				1
Restricted stock units vested (in shares)	33
Shares withheld for taxes paid on stock awards		(685)			(685)
Repurchase of common stock for treasury				$ (10,222)	(10,222)
Repurchase of common stock for treasury (in shares)				(247)
Net income			39,469		39,469
Balance at Sep. 30, 2020	$ 289	119,762	554,163	$ (45,937)	628,277
Balance (in shares) at Sep. 30, 2020	28,915			(2,773)
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)
Stock-based compensation expense		619			619
Restricted stock units vested (in shares)	23
Shares withheld for taxes paid on stock awards		(485)			(485)
Net income			16,930		16,930
Balance at Sep. 30, 2020	$ 289	119,762	554,163	$ (45,937)	628,277
Balance (in shares) at Sep. 30, 2020	28,915			(2,773)
Balance at Dec. 31, 2020	$ 289	119,891	562,084	$ (45,937)	636,327
Balance (in shares) at Dec. 31, 2020	28,943			(2,773)
Stock-based compensation expense		3,118			3,118
Restricted stock units vested	$ 1	(1)
Restricted stock units vested (in shares)	35
Shares withheld for taxes paid on stock awards		(794)			(794)
Net income			47,521		47,521
Balance at Sep. 30, 2021	$ 290	122,214	609,605	$ (45,937)	686,172
Balance (in shares) at Sep. 30, 2021	28,978			(2,773)
Balance at Jun. 30, 2021	$ 289	121,659	589,560	$ (45,937)	665,571
Balance (in shares) at Jun. 30, 2021	28,960			(2,773)
Stock-based compensation expense		1,026			1,026
Restricted stock units vested	$ 1	(1)
Restricted stock units vested (in shares)	18
Shares withheld for taxes paid on stock awards		(470)			(470)
Net income			20,045		20,045
Balance at Sep. 30, 2021	$ 290	$ 122,214	$ 609,605	$ (45,937)	$ 686,172
Balance (in shares) at Sep. 30, 2021	28,978			(2,773)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash Flows provided by Operating Activities:
Net income	$ 47,521	$ 39,469
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	9,165	10,335
Adjustments to credit losses reserve	1,704	3,276
Stock-based compensation expense	3,118	1,866
Loss on disposal of fixed assets	2	13
Changes in assets and liabilities:
Accounts receivable	22,437	(42,610)
Inventories	(34,507)	(10,023)
Prepaid expenses and other current assets	(360)	43
Other non-current assets	314	(719)
Accounts payable	(49,997)	48,736
Accrued expenses and other liabilities	9,437	(3,987)
Net cash provided by operating activities	8,834	46,399
Cash Flows used in Investing Activities:
Purchases of equipment and capitalized software	(7,092)	(9,611)
Proceeds from life insurance	1,500
Net cash used in investing activities	(5,592)	(9,611)
Cash Flows used in Financing Activities:
Purchase of treasury shares		(10,222)
Dividend payments	(8,375)	(8,427)
Issuance of stock under Employee Stock Purchase Plan		536
Payments of payroll taxes on stock-based compensation through shares withheld	(794)	(684)
Net cash used in financing activities	(9,169)	(18,797)
(Decrease) increase in cash and cash equivalents	(5,927)	17,991
Cash and cash equivalents, beginning of period	95,655	90,060
Cash and cash equivalents, end of period	89,728	108,051
Non-cash Investing and Financing Activities:
Accrued capital expenditures	394	248
Supplemental Cash Flow Information:
Income taxes paid	$ 20,600	$ 13,798

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2021
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 (the “SEC”) regarding interim financial reporting and in accordance with accounting principles generally accepted in the United States of America (U.S.GAAP). 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, 2020, filed with 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 nine months ended September 30, 2021 may not be indicative of the results expected for any succeeding quarter or the entire year ending December 31, 2021. ​ Use of Estimates in the Preparation of Financial Statements ​ The preparation of financial statements in conformity with U.S.GAAP 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. Management bases its estimates and judgments on the information available at the time and various other assumptions believed to be reasonable under the circumstances. By nature, estimates are subject to an inherent degree of uncertainty, including uncertainty in the current economic environment due to the coronavirus pandemic (“COVID-19 pandemic”). Actual results could differ from those estimates and assumptions, including the impact of the COVID-19 pandemic. ​ Recently Issued Financial Accounting Standards ​ In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting

REVENUE

REVENUE	9 Months Ended
	Sep. 30, 2021
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 September 30, 2021 and 2020, along with the reportable segment for each category. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2021 ​ Business Enterprise Public Sector Total Notebooks/Mobility ​ $ 109,910 ​ $ 117,017 ​ $ 77,192 ​ $ 304,119 Desktops ​ ​ 22,329 ​ ​ 34,473 ​ ​ 11,319 ​ ​ 68,121 Software ​ ​ 28,761 ​ ​ 22,829 ​ ​ 9,678 ​ ​ 61,268 Servers/Storage ​ ​ 25,775 ​ ​ 12,560 ​ ​ 13,407 ​ ​ 51,742 Net/Com Products ​ ​ 21,091 ​ ​ 23,887 ​ ​ 8,259 ​ ​ 53,237 Displays and Sound ​ 26,321 ​ 33,490 ​ 15,287 ​ 75,098 Accessories ​ 28,865 ​ 43,207 ​ 14,320 ​ 86,392 Other Hardware/Services ​ 18,373 ​ 22,259 ​ 10,759 ​ 51,391 Total net sales ​ $ 281,425 ​ $ 309,722 ​ $ 160,221 ​ $ 751,368 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2020 ​ Business Enterprise Public Sector Total Notebooks/Mobility ​ $ 72,694 ​ $ 63,093 ​ $ 66,761 ​ $ 202,548 Desktops ​ ​ 20,097 ​ ​ 33,451 ​ ​ 9,861 ​ ​ 63,409 Software ​ ​ 33,061 ​ ​ 26,336 ​ ​ 17,698 ​ ​ 77,095 Servers/Storage ​ ​ 20,209 ​ 23,832 ​ 12,292 ​ ​ 56,333 Net/Com Products ​ ​ 19,140 ​ ​ 27,941 ​ ​ 15,420 ​ ​ 62,501 Displays and Sound ​ 21,161 ​ 16,511 ​ 17,304 ​ 54,976 Accessories ​ 27,855 ​ 40,538 ​ 14,842 ​ 83,235 Other Hardware/Services ​ 16,768 ​ ​ 28,065 ​ ​ 7,822 ​ 52,655 Total net sales ​ $ 230,985 ​ $ 259,767 ​ $ 162,000 ​ $ 652,752 ​ ​ The following table represents a disaggregation of revenue from arrangements with customers for the nine months ended September 30, 2021 and 2020, along with the reportable segment for each category. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, 2021 ​ Business Enterprise Public Sector Total Notebooks/Mobility ​ $ 301,746 ​ $ 293,680 ​ $ 196,667 ​ $ 792,093 ​ Desktops ​ ​ 64,095 ​ ​ 103,740 ​ ​ 27,696 ​ ​ 195,531 ​ Software ​ ​ 89,025 ​ ​ 71,496 ​ ​ 28,745 ​ ​ 189,266 ​ Servers/Storage ​ ​ 67,434 ​ ​ 56,822 ​ ​ 27,689 ​ ​ 151,945 ​ Net/Com Products ​ 61,855 ​ ​ 64,404 ​ ​ 25,831 ​ 152,090 ​ Displays and Sound ​ ​ 71,920 ​ 86,238 ​ 42,023 ​ ​ 200,181 ​ Accessories ​ 82,192 ​ 131,394 ​ 34,250 ​ 247,836 ​ Other Hardware/Services ​ 56,750 ​ 74,394 ​ 32,335 ​ 163,479 ​ Total net sales ​ $ 795,017 ​ $ 882,168 ​ $ 415,236 ​ $ 2,092,421 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, 2020 ​ ​ Business Enterprise Public Sector Total ​ Notebooks/Mobility ​ $ 226,959 ​ $ 222,139 ​ $ 146,035 ​ $ 595,133 ​ Desktops ​ ​ 67,891 ​ ​ 94,674 ​ ​ 29,440 ​ ​ 192,005 ​ Software ​ ​ 93,710 ​ ​ 77,394 ​ ​ 33,340 ​ ​ 204,444 ​ Servers/Storage ​ 69,685 ​ 63,042 ​ 32,058 ​ 164,785 ​ Net/Com Products ​ 54,916 ​ ​ 72,172 ​ ​ 32,674 ​ 159,762 ​ Displays and Sound ​ ​ 64,338 ​ 58,603 ​ 38,433 ​ ​ 161,374 ​ Accessories ​ ​ 75,362 ​ 164,185 ​ 36,273 ​ ​ 275,820 ​ Other Hardware/Services ​ 47,998 ​ ​ 87,734 ​ ​ 25,548 ​ 161,280 ​ Total net sales ​ $ 700,859 ​ $ 839,943 ​ $ 373,801 ​ $ 1,914,603 ​ ​ Contract Balances ​ The following table provides information about contract liabilities from arrangements with customers as of September 30, 2021 and December 31, 2020. ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2021 December 31, 2020 Contract liabilities, which are included in "Accrued expenses and other liabilities" ​ $ 7,823 ​ $ 3,509 ​ Changes in the contract liability balances during the nine months ended September 30, 2021 and 2020 are as follows: ​ ​ ​ ​ ​ 2021 Balances at December 31, 2020 ​ $ 3,509 Cash received in advance and not recognized as revenue ​ (15,524) Amounts recognized as revenue as performance obligations satisfied ​ 19,838 Balances at September 30, 2021 ​ $ 7,823 ​ ​ ​ ​ ​ ​ 2020 Balances at December 31, 2019 ​ $ 5,942 Cash received in advance and not recognized as revenue ​ 7,978 Amounts recognized as revenue as performance obligations satisfied ​ (12,380) Balances at September 30, 2020 ​ $ 1,540 ​

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2021
Earnings Per Share
Earnings Per Share	Note 3–Earnings Per Share ​ Basic earnings per common share is computed using the weighted average number of shares outstanding. Diluted earnings per share is computed using the weighted average number of shares outstanding adjusted for the incremental shares attributable to non-vested stock units and stock options outstanding, if dilutive. ​ The following table sets forth the computation of basic and diluted earnings per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ ​ 2021 2020 2021 2020 Numerator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 20,045 ​ $ 16,930 ​ $ 47,521 ​ $ 39,469 ​ Denominator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator for basic earnings per share ​ 26,197 ​ 26,130 ​ 26,186 ​ 26,158 ​ Dilutive effect of employee stock awards ​ 171 ​ 181 ​ 176 ​ 179 ​ Denominator for diluted earnings per share ​ 26,368 ​ 26,311 ​ 26,362 ​ 26,337 ​ Earnings per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 0.77 ​ $ 0.65 ​ $ 1.81 ​ $ 1.51 ​ Diluted ​ $ 0.76 ​ $ 0.64 ​ $ 1.80 ​ $ 1.50 ​ ​ For the three months and nine months ended September 30, 2021, 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	9 Months Ended
	Sep. 30, 2021
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 (“ROU asset”) as of September 30, 2021 was $2,608 and a corresponding lease liability of $2,608 associated with related party leases. ​ As of September 30, 2021, 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 nine months ended September 30, 2021 and 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 ​ Related Parties ​ Others ​ Total Related Parties ​ Others ​ Total Lease Cost ​ ​ ​ ​ ​ Capitalized operating lease cost $ 313 ​ $ 753 ​ $ 1,066 ​ $ 940 ​ $ 2,304 ​ $ 3,244 Short-term lease cost 107 ​ 21 ​ 128 ​ 320 ​ 63 ​ 383 Total lease cost $ 420 ​ $ 774 ​ $ 1,194 ​ $ 1,260 ​ $ 2,367 ​ $ 3,627 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Information ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating cash flows $ 313 ​ $ 807 ​ $ 1,120 ​ $ 940 ​ $ 2,404 ​ $ 3,344 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average remaining lease term (in years): ​ ​ ​ ​ ​ Capitalized operating leases ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2.17 ​ ​ 4.66 ​ ​ 4.06 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average discount rate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized operating leases ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 3.92% ​ ​ 3.92% ​ ​ 3.92% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 ​ Related Parties ​ Others ​ Total Related Parties ​ Others ​ Total Lease Cost ​ ​ ​ ​ ​ Capitalized operating lease cost $ 313 ​ $ 798 ​ $ 1,111 ​ $ 1,071 ​ $ 2,379 ​ $ 3,450 Short-term lease cost 107 ​ 2 ​ 109 ​ 188 ​ 6 ​ 194 Total lease cost $ 420 ​ $ 800 ​ $ 1,220 ​ $ 1,259 ​ $ 2,385 ​ $ 3,644 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Information ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating cash flows $ 313 ​ $ 832 ​ $ 1,145 ​ $ 1,071 ​ $ 2,439 ​ $ 3,510 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average remaining lease term (in years): ​ ​ ​ ​ ​ Capitalized operating leases ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 3.17 ​ ​ 5.81 ​ ​ 5.13 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average discount rate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized operating leases ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 3.92% ​ ​ 3.92% ​ ​ 3.92% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years Ended December 31, ​ Related Parties ​ Others ​ Total 2021, excluding the nine months ended September 30, 2021 ​ $ 313 ​ $ 774 ​ $ 1,087 2022 ​ 1,253 ​ 2,268 ​ 3,521 2023 ​ 1,149 ​ 1,727 ​ 2,876 2024 ​ — ​ 1,699 ​ 1,699 2025 ​ ​ — ​ ​ 1,594 ​ ​ 1,594 Thereafter ​ ​ — ​ ​ 888 ​ ​ 888 ​ ​ $ 2,715 ​ $ 8,950 ​ $ 11,665 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Imputed interest ​ ​ ​ ​ ​ ​ ​ ​ (810) Lease liability balance at September 30, 2021 ​ ​ ​ ​ ​ ​ ​ $ 10,855 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, 2021, the ROU asset had a balance of $10,218. The long-term lease liability was $7,353 and the short-term lease liability, which is included in accrued expenses and other liabilities in the consolidated balance sheets, was $3,502. As of September 30, 2020, the ROU asset had a balance of $13,768. The long-term lease liability was $10,579 and the short-term lease liability, which is included in accrued expenses and other liabilities in the consolidated balance sheets, was $3,989.

SEGMENT INFORMATION

SEGMENT INFORMATION	9 Months Ended
	Sep. 30, 2021
Segment and Related Disclosures
Segment and Related Disclosures	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 nine months ended September 30, 2021 and 2020 is shown below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ September 30, ​ September 30, ​ September 30, ​ September 30, ​ ​ 2021 2020 2021 2020 Net sales: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Business Solutions ​ $ 281,425 ​ $ 230,985 ​ $ 795,017 ​ $ 700,859 ​ Enterprise Solutions ​ 309,722 ​ 259,767 ​ 882,168 ​ 839,943 ​ Public Sector Solutions ​ 160,221 ​ 162,000 ​ 415,236 ​ 373,801 ​ Total net sales ​ $ 751,368 ​ $ 652,752 ​ $ 2,092,421 ​ $ 1,914,603 ​ Operating income (loss): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Business Solutions ​ $ 12,774 ​ $ 8,827 ​ $ 29,559 ​ $ 21,579 ​ Enterprise Solutions ​ 19,151 ​ 14,843 ​ 52,203 ​ 45,233 ​ Public Sector Solutions ​ 619 ​ 3,165 ​ (4,250) ​ (1,964) ​ Headquarters/Other ​ (5,216) ​ (5,758) ​ (12,300) ​ (12,533) ​ Total operating income ​ 27,328 ​ 21,077 ​ 65,212 ​ 52,315 ​ Other (expenses) income, net ​ — ​ (17) ​ 7 ​ 80 ​ Income before taxes ​ $ 27,328 ​ $ 21,060 ​ $ 65,219 ​ $ 52,395 ​ Selected operating expense: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Business Solutions ​ $ 169 ​ $ 159 ​ $ 487 ​ $ 477 ​ Enterprise Solutions ​ 560 ​ 697 ​ 1,888 ​ 2,057 ​ Public Sector Solutions ​ 19 ​ 15 ​ 43 ​ 45 ​ Headquarters/Other ​ 2,199 ​ 2,962 ​ 6,747 ​ 7,756 ​ Total depreciation and amortization ​ $ 2,947 ​ $ 3,833 ​ $ 9,165 ​ $ 10,335 ​ Total assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Business Solutions ​ ​ ​ ​ ​ ​ ​ $ 375,557 ​ $ 343,010 ​ Enterprise Solutions ​ ​ ​ ​ ​ ​ ​ 603,173 ​ 551,914 ​ Public Sector Solutions ​ ​ ​ ​ ​ ​ ​ 91,227 ​ 123,520 ​ Headquarters/Other ​ ​ ​ ​ ​ ​ ​ (56,031) ​ (15,110) ​ Total assets ​ ​ ​ ​ ​ ​ ​ $ 1,013,926 ​ $ 1,003,334 ​ ​ The assets of our three operating segments presented above consist primarily of accounts receivable, net intercompany receivable, goodwill, and other intangibles. Assets reported under the Headquarters/Other group are managed by corporate headquarters, including cash, inventory, property and equipment, right-of-use assets, and intercompany balance, net. As of September 30, 2021 and 2020, total assets for the Headquarters/Other group were presented net of intercompany balance eliminations of $39,209 and $60,802 , 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	9 Months Ended
	Sep. 30, 2021
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. 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	9 Months Ended
	Sep. 30, 2021
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 LIBOR (0.08% at September 30, 2021), plus a spread based on our funded debt ratio, or in the absence of LIBOR, the prime rate (3.25% at September 30, 2021). 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 for a given quarter to our consolidated 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 September 30, 2021 or 2020, and accordingly, the entire $50,000 facility was available for borrowings under the credit facility. As of September 30, 2021, the Company was in compliance with all financial covenants contained in the agreement governing the credit facility. ​

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2021
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 (the “SEC”) regarding interim financial reporting and in accordance with accounting principles generally accepted in the United States of America (U.S.GAAP). 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, 2020, filed with 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 nine months ended September 30, 2021 may not be indicative of the results expected for any succeeding quarter or the entire year ending December 31, 2021. ​
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 U.S.GAAP 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. Management bases its estimates and judgments on the information available at the time and various other assumptions believed to be reasonable under the circumstances. By nature, estimates are subject to an inherent degree of uncertainty, including uncertainty in the current economic environment due to the coronavirus pandemic (“COVID-19 pandemic”). Actual results could differ from those estimates and assumptions, including the impact of the COVID-19 pandemic.
Recently Issued Financial Accounting Standards	Recently Issued Financial Accounting Standards ​ In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting

REVENUE (Tables)

REVENUE (Tables)	9 Months Ended
	Sep. 30, 2021
Revenue
Schedule of disaggregation of revenue from contracts with customers	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2021 ​ Business Enterprise Public Sector Total Notebooks/Mobility ​ $ 109,910 ​ $ 117,017 ​ $ 77,192 ​ $ 304,119 Desktops ​ ​ 22,329 ​ ​ 34,473 ​ ​ 11,319 ​ ​ 68,121 Software ​ ​ 28,761 ​ ​ 22,829 ​ ​ 9,678 ​ ​ 61,268 Servers/Storage ​ ​ 25,775 ​ ​ 12,560 ​ ​ 13,407 ​ ​ 51,742 Net/Com Products ​ ​ 21,091 ​ ​ 23,887 ​ ​ 8,259 ​ ​ 53,237 Displays and Sound ​ 26,321 ​ 33,490 ​ 15,287 ​ 75,098 Accessories ​ 28,865 ​ 43,207 ​ 14,320 ​ 86,392 Other Hardware/Services ​ 18,373 ​ 22,259 ​ 10,759 ​ 51,391 Total net sales ​ $ 281,425 ​ $ 309,722 ​ $ 160,221 ​ $ 751,368 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2020 ​ Business Enterprise Public Sector Total Notebooks/Mobility ​ $ 72,694 ​ $ 63,093 ​ $ 66,761 ​ $ 202,548 Desktops ​ ​ 20,097 ​ ​ 33,451 ​ ​ 9,861 ​ ​ 63,409 Software ​ ​ 33,061 ​ ​ 26,336 ​ ​ 17,698 ​ ​ 77,095 Servers/Storage ​ ​ 20,209 ​ 23,832 ​ 12,292 ​ ​ 56,333 Net/Com Products ​ ​ 19,140 ​ ​ 27,941 ​ ​ 15,420 ​ ​ 62,501 Displays and Sound ​ 21,161 ​ 16,511 ​ 17,304 ​ 54,976 Accessories ​ 27,855 ​ 40,538 ​ 14,842 ​ 83,235 Other Hardware/Services ​ 16,768 ​ ​ 28,065 ​ ​ 7,822 ​ 52,655 Total net sales ​ $ 230,985 ​ $ 259,767 ​ $ 162,000 ​ $ 652,752 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, 2021 ​ Business Enterprise Public Sector Total Notebooks/Mobility ​ $ 301,746 ​ $ 293,680 ​ $ 196,667 ​ $ 792,093 ​ Desktops ​ ​ 64,095 ​ ​ 103,740 ​ ​ 27,696 ​ ​ 195,531 ​ Software ​ ​ 89,025 ​ ​ 71,496 ​ ​ 28,745 ​ ​ 189,266 ​ Servers/Storage ​ ​ 67,434 ​ ​ 56,822 ​ ​ 27,689 ​ ​ 151,945 ​ Net/Com Products ​ 61,855 ​ ​ 64,404 ​ ​ 25,831 ​ 152,090 ​ Displays and Sound ​ ​ 71,920 ​ 86,238 ​ 42,023 ​ ​ 200,181 ​ Accessories ​ 82,192 ​ 131,394 ​ 34,250 ​ 247,836 ​ Other Hardware/Services ​ 56,750 ​ 74,394 ​ 32,335 ​ 163,479 ​ Total net sales ​ $ 795,017 ​ $ 882,168 ​ $ 415,236 ​ $ 2,092,421 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, 2020 ​ ​ Business Enterprise Public Sector Total ​ Notebooks/Mobility ​ $ 226,959 ​ $ 222,139 ​ $ 146,035 ​ $ 595,133 ​ Desktops ​ ​ 67,891 ​ ​ 94,674 ​ ​ 29,440 ​ ​ 192,005 ​ Software ​ ​ 93,710 ​ ​ 77,394 ​ ​ 33,340 ​ ​ 204,444 ​ Servers/Storage ​ 69,685 ​ 63,042 ​ 32,058 ​ 164,785 ​ Net/Com Products ​ 54,916 ​ ​ 72,172 ​ ​ 32,674 ​ 159,762 ​ Displays and Sound ​ ​ 64,338 ​ 58,603 ​ 38,433 ​ ​ 161,374 ​ Accessories ​ ​ 75,362 ​ 164,185 ​ 36,273 ​ ​ 275,820 ​ Other Hardware/Services ​ 47,998 ​ ​ 87,734 ​ ​ 25,548 ​ 161,280 ​ Total net sales ​ $ 700,859 ​ $ 839,943 ​ $ 373,801 ​ $ 1,914,603 ​
Schedule of changes in contract liability balances	​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2021 December 31, 2020 Contract liabilities, which are included in "Accrued expenses and other liabilities" ​ $ 7,823 ​ $ 3,509 ​ Changes in the contract liability balances during the nine months ended September 30, 2021 and 2020 are as follows: ​ ​ ​ ​ ​ 2021 Balances at December 31, 2020 ​ $ 3,509 Cash received in advance and not recognized as revenue ​ (15,524) Amounts recognized as revenue as performance obligations satisfied ​ 19,838 Balances at September 30, 2021 ​ $ 7,823 ​ ​ ​ ​ ​ ​ 2020 Balances at December 31, 2019 ​ $ 5,942 Cash received in advance and not recognized as revenue ​ 7,978 Amounts recognized as revenue as performance obligations satisfied ​ (12,380) Balances at September 30, 2020 ​ $ 1,540

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2021
Earnings Per Share
Computation of basic and diluted earnings per share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ ​ 2021 2020 2021 2020 Numerator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 20,045 ​ $ 16,930 ​ $ 47,521 ​ $ 39,469 ​ Denominator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator for basic earnings per share ​ 26,197 ​ 26,130 ​ 26,186 ​ 26,158 ​ Dilutive effect of employee stock awards ​ 171 ​ 181 ​ 176 ​ 179 ​ Denominator for diluted earnings per share ​ 26,368 ​ 26,311 ​ 26,362 ​ 26,337 ​ Earnings per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 0.77 ​ $ 0.65 ​ $ 1.81 ​ $ 1.51 ​ Diluted ​ $ 0.76 ​ $ 0.64 ​ $ 1.80 ​ $ 1.50 ​

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Sep. 30, 2021
Leases
Schedule of lease cost	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 ​ Related Parties ​ Others ​ Total Related Parties ​ Others ​ Total Lease Cost ​ ​ ​ ​ ​ Capitalized operating lease cost $ 313 ​ $ 753 ​ $ 1,066 ​ $ 940 ​ $ 2,304 ​ $ 3,244 Short-term lease cost 107 ​ 21 ​ 128 ​ 320 ​ 63 ​ 383 Total lease cost $ 420 ​ $ 774 ​ $ 1,194 ​ $ 1,260 ​ $ 2,367 ​ $ 3,627 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Information ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating cash flows $ 313 ​ $ 807 ​ $ 1,120 ​ $ 940 ​ $ 2,404 ​ $ 3,344 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average remaining lease term (in years): ​ ​ ​ ​ ​ Capitalized operating leases ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2.17 ​ ​ 4.66 ​ ​ 4.06 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average discount rate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized operating leases ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 3.92% ​ ​ 3.92% ​ ​ 3.92% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 ​ Related Parties ​ Others ​ Total Related Parties ​ Others ​ Total Lease Cost ​ ​ ​ ​ ​ Capitalized operating lease cost $ 313 ​ $ 798 ​ $ 1,111 ​ $ 1,071 ​ $ 2,379 ​ $ 3,450 Short-term lease cost 107 ​ 2 ​ 109 ​ 188 ​ 6 ​ 194 Total lease cost $ 420 ​ $ 800 ​ $ 1,220 ​ $ 1,259 ​ $ 2,385 ​ $ 3,644 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Information ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating cash flows $ 313 ​ $ 832 ​ $ 1,145 ​ $ 1,071 ​ $ 2,439 ​ $ 3,510 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average remaining lease term (in years): ​ ​ ​ ​ ​ Capitalized operating leases ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 3.17 ​ ​ 5.81 ​ ​ 5.13 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 2021, excluding the nine months ended September 30, 2021 ​ $ 313 ​ $ 774 ​ $ 1,087 2022 ​ 1,253 ​ 2,268 ​ 3,521 2023 ​ 1,149 ​ 1,727 ​ 2,876 2024 ​ — ​ 1,699 ​ 1,699 2025 ​ ​ — ​ ​ 1,594 ​ ​ 1,594 Thereafter ​ ​ — ​ ​ 888 ​ ​ 888 ​ ​ $ 2,715 ​ $ 8,950 ​ $ 11,665 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Imputed interest ​ ​ ​ ​ ​ ​ ​ ​ (810) Lease liability balance at September 30, 2021 ​ ​ ​ ​ ​ ​ ​ $ 10,855 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2021
Segment and Related Disclosures
Segment information applicable to reportable operating segments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ September 30, ​ September 30, ​ September 30, ​ September 30, ​ ​ 2021 2020 2021 2020 Net sales: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Business Solutions ​ $ 281,425 ​ $ 230,985 ​ $ 795,017 ​ $ 700,859 ​ Enterprise Solutions ​ 309,722 ​ 259,767 ​ 882,168 ​ 839,943 ​ Public Sector Solutions ​ 160,221 ​ 162,000 ​ 415,236 ​ 373,801 ​ Total net sales ​ $ 751,368 ​ $ 652,752 ​ $ 2,092,421 ​ $ 1,914,603 ​ Operating income (loss): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Business Solutions ​ $ 12,774 ​ $ 8,827 ​ $ 29,559 ​ $ 21,579 ​ Enterprise Solutions ​ 19,151 ​ 14,843 ​ 52,203 ​ 45,233 ​ Public Sector Solutions ​ 619 ​ 3,165 ​ (4,250) ​ (1,964) ​ Headquarters/Other ​ (5,216) ​ (5,758) ​ (12,300) ​ (12,533) ​ Total operating income ​ 27,328 ​ 21,077 ​ 65,212 ​ 52,315 ​ Other (expenses) income, net ​ — ​ (17) ​ 7 ​ 80 ​ Income before taxes ​ $ 27,328 ​ $ 21,060 ​ $ 65,219 ​ $ 52,395 ​ Selected operating expense: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Business Solutions ​ $ 169 ​ $ 159 ​ $ 487 ​ $ 477 ​ Enterprise Solutions ​ 560 ​ 697 ​ 1,888 ​ 2,057 ​ Public Sector Solutions ​ 19 ​ 15 ​ 43 ​ 45 ​ Headquarters/Other ​ 2,199 ​ 2,962 ​ 6,747 ​ 7,756 ​ Total depreciation and amortization ​ $ 2,947 ​ $ 3,833 ​ $ 9,165 ​ $ 10,335 ​ Total assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Business Solutions ​ ​ ​ ​ ​ ​ ​ $ 375,557 ​ $ 343,010 ​ Enterprise Solutions ​ ​ ​ ​ ​ ​ ​ 603,173 ​ 551,914 ​ Public Sector Solutions ​ ​ ​ ​ ​ ​ ​ 91,227 ​ 123,520 ​ Headquarters/Other ​ ​ ​ ​ ​ ​ ​ (56,031) ​ (15,110) ​ Total assets ​ ​ ​ ​ ​ ​ ​ $ 1,013,926 ​ $ 1,003,334 ​

REVENUE - Disaggregation of Rev

REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of revenue
Net sales	$ 751,368	$ 652,752	$ 2,092,421	$ 1,914,603
Notebooks/Mobility
Disaggregation of revenue
Net sales	304,119	202,548	792,093	595,133
Desktops
Disaggregation of revenue
Net sales	68,121	63,409	195,531	192,005
Software
Disaggregation of revenue
Net sales	61,268	77,095	189,266	204,444
Servers/Storage
Disaggregation of revenue
Net sales	51,742	56,333	151,945	164,785
Net/Com Products
Disaggregation of revenue
Net sales	53,237	62,501	152,090	159,762
Displays and Sound
Disaggregation of revenue
Net sales	75,098	54,976	200,181	161,374
Accessories
Disaggregation of revenue
Net sales	86,392	83,235	247,836	275,820
Other Hardware/Services
Disaggregation of revenue
Net sales	51,391	52,655	163,479	161,280
Small and Medium Sized Businesses segment
Disaggregation of revenue
Net sales	281,425	230,985	795,017	700,859
Small and Medium Sized Businesses segment | Notebooks/Mobility
Disaggregation of revenue
Net sales	109,910	72,694	301,746	226,959
Small and Medium Sized Businesses segment | Desktops
Disaggregation of revenue
Net sales	22,329	20,097	64,095	67,891
Small and Medium Sized Businesses segment | Software
Disaggregation of revenue
Net sales	28,761	33,061	89,025	93,710
Small and Medium Sized Businesses segment | Servers/Storage
Disaggregation of revenue
Net sales	25,775	20,209	67,434	69,685
Small and Medium Sized Businesses segment | Net/Com Products
Disaggregation of revenue
Net sales	21,091	19,140	61,855	54,916
Small and Medium Sized Businesses segment | Displays and Sound
Disaggregation of revenue
Net sales	26,321	21,161	71,920	64,338
Small and Medium Sized Businesses segment | Accessories
Disaggregation of revenue
Net sales	28,865	27,855	82,192	75,362
Small and Medium Sized Businesses segment | Other Hardware/Services
Disaggregation of revenue
Net sales	18,373	16,768	56,750	47,998
Large Account Segment
Disaggregation of revenue
Net sales	309,722	259,767	882,168	839,943
Large Account Segment | Notebooks/Mobility
Disaggregation of revenue
Net sales	117,017	63,093	293,680	222,139
Large Account Segment | Desktops
Disaggregation of revenue
Net sales	34,473	33,451	103,740	94,674
Large Account Segment | Software
Disaggregation of revenue
Net sales	22,829	26,336	71,496	77,394
Large Account Segment | Servers/Storage
Disaggregation of revenue
Net sales	12,560	23,832	56,822	63,042
Large Account Segment | Net/Com Products
Disaggregation of revenue
Net sales	23,887	27,941	64,404	72,172
Large Account Segment | Displays and Sound
Disaggregation of revenue
Net sales	33,490	16,511	86,238	58,603
Large Account Segment | Accessories
Disaggregation of revenue
Net sales	43,207	40,538	131,394	164,185
Large Account Segment | Other Hardware/Services
Disaggregation of revenue
Net sales	22,259	28,065	74,394	87,734
Public Sector
Disaggregation of revenue
Net sales	160,221	162,000	415,236	373,801
Public Sector | Notebooks/Mobility
Disaggregation of revenue
Net sales	77,192	66,761	196,667	146,035
Public Sector | Desktops
Disaggregation of revenue
Net sales	11,319	9,861	27,696	29,440
Public Sector | Software
Disaggregation of revenue
Net sales	9,678	17,698	28,745	33,340
Public Sector | Servers/Storage
Disaggregation of revenue
Net sales	13,407	12,292	27,689	32,058
Public Sector | Net/Com Products
Disaggregation of revenue
Net sales	8,259	15,420	25,831	32,674
Public Sector | Displays and Sound
Disaggregation of revenue
Net sales	15,287	17,304	42,023	38,433
Public Sector | Accessories
Disaggregation of revenue
Net sales	14,320	14,842	34,250	36,273
Public Sector | Other Hardware/Services
Disaggregation of revenue
Net sales	$ 10,759	$ 7,822	$ 32,335	$ 25,548

REVENUE - Contract Balances (De

REVENUE - Contract Balances (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Change in contract liability
Beginning balance - Contract liability	$ 3,509	$ 5,942
Cash received in advance and not recognized as revenue	(15,524)	7,978
Amounts recognized as revenue as performance obligations satisfied	19,838	(12,380)
Ending balance - Contract liability	7,823	$ 1,540
Accrued expenses and other liabilities
Contract liabilities
Contract liabilities	$ 7,823		$ 3,509

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Numerator:
Net income	$ 20,045	$ 16,930	$ 47,521	$ 39,469
Denominator:
Denominator for basic earnings per share	26,197	26,130	26,186	26,158
Dilutive effect of unvested employee stock awards	171	181	176	179
Denominator for diluted earnings per share	26,368	26,311	26,362	26,337
Earnings per share:
Basic	$ 0.77	$ 0.65	$ 1.81	$ 1.51
Diluted	$ 0.76	$ 0.64	$ 1.80	$ 1.50
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		9 Months Ended
	Sep. 30, 2021USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2021USD ($)lease	Sep. 30, 2020USD ($)	Dec. 31, 2020USD ($)
Leases
Right-of-use assets	$ 10,218	$ 13,768	$ 10,218	$ 13,768	$ 12,821
Lease liability	10,855		$ 10,855
Number of additional operating or financing leases not yet commenced | lease			0
Lease Cost
Capitalized operating lease cost	1,066	1,111	$ 3,244	3,450
Short-term lease cost	128	109	383	194
Total lease cost	1,194	1,220	3,627	3,644
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$ 1,120	$ 1,145	$ 3,344	$ 3,510
Weighted-average remaining lease term - Capitalized operating leases (in years)	4 years 21 days	5 years 1 month 17 days	4 years 21 days	5 years 1 month 17 days
Weighted-average discount rate - Capitalized operating leases	3.92%	3.92%	3.92%	3.92%
Related Parties
Leases
Right-of-use assets	$ 2,608		$ 2,608
Lease liability	2,608		2,608
Lease Cost
Capitalized operating lease cost	313	$ 313	940	$ 1,071
Short-term lease cost	107	107	320	188
Total lease cost	420	420	1,260	1,259
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$ 313	$ 313	$ 940	$ 1,071
Weighted-average remaining lease term - Capitalized operating leases (in years)	2 years 2 months 1 day	3 years 2 months 1 day	2 years 2 months 1 day	3 years 2 months 1 day
Weighted-average discount rate - Capitalized operating leases	3.92%	3.92%	3.92%	3.92%
Others
Lease Cost
Capitalized operating lease cost	$ 753	$ 798	$ 2,304	$ 2,379
Short-term lease cost	21	2	63	6
Total lease cost	774	800	2,367	2,385
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$ 807	$ 832	$ 2,404	$ 2,439
Weighted-average remaining lease term - Capitalized operating leases (in years)	4 years 7 months 28 days	5 years 9 months 21 days	4 years 7 months 28 days	5 years 9 months 21 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	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Future lease payments over the remaining term of capitalized operating leases
2021, excluding the nine months ended September 30, 2021	$ 1,087
2022	3,521
2023	2,876
2024	1,699
2025	1,594
Thereafter	888
Total	11,665
Imputed interest	(810)
Lease liability balance	10,855
Right-of-use assets	10,218	$ 12,821	$ 13,768
Long-term lease liability	7,353	$ 9,631	10,579
Short-term lease liability	$ 3,502		$ 3,989
Current operating lease liability, Statement of Financial Position	Accrued expenses and other liabilities		Accrued expenses and other liabilities
Related Parties
Future lease payments over the remaining term of capitalized operating leases
2021, excluding the nine months ended September 30, 2021	$ 313
2022	1,253
2023	1,149
Total	2,715
Lease liability balance	2,608
Right-of-use assets	2,608
Others
Future lease payments over the remaining term of capitalized operating leases
2021, excluding the nine months ended September 30, 2021	774
2022	2,268
2023	1,727
2024	1,699
2025	1,594
Thereafter	888
Total	$ 8,950

SEGMENT INFORMATION - Segment I

SEGMENT INFORMATION - Segment Information Applicable to Reportable Operating Segments (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2021USD ($)segment	Sep. 30, 2020USD ($)	Dec. 31, 2020USD ($)
Segment Reporting Information
Number of reportable segments | segment			3
Number of operating segments | segment			3
Net sales:
Net sales	$ 751,368	$ 652,752	$ 2,092,421	$ 1,914,603
Operating income (loss):
Operating income (loss)	27,328	21,077	65,212	52,315
Other (expenses) income, net		(17)	7	80
Income before taxes	27,328	21,060	65,219	52,395
Depreciation and amortization:
Depreciation and amortization	2,947	3,833	9,165	10,335
Total assets:
Total assets	1,013,926	1,003,334	1,013,926	1,003,334	$ 1,015,373
Goodwill	73,602		73,602		$ 73,602
Business Solutions
Net sales:
Net sales	281,425	230,985	795,017	700,859
Enterprise Solutions
Net sales:
Net sales	309,722	259,767	882,168	839,943
Public Sector Solutions
Net sales:
Net sales	160,221	162,000	415,236	373,801
Operating Segments | Business Solutions
Net sales:
Net sales	281,425	230,985	795,017	700,859
Operating income (loss):
Operating income (loss)	12,774	8,827	29,559	21,579
Depreciation and amortization:
Depreciation and amortization	169	159	487	477
Total assets:
Total assets	375,557	343,010	375,557	343,010
Operating Segments | Enterprise Solutions
Net sales:
Net sales	309,722	259,767	882,168	839,943
Operating income (loss):
Operating income (loss)	19,151	14,843	52,203	45,233
Depreciation and amortization:
Depreciation and amortization	560	697	1,888	2,057
Total assets:
Total assets	603,173	551,914	603,173	551,914
Operating Segments | Public Sector Solutions
Net sales:
Net sales	160,221	162,000	415,236	373,801
Operating income (loss):
Operating income (loss)	619	3,165	(4,250)	(1,964)
Depreciation and amortization:
Depreciation and amortization	19	15	43	45
Total assets:
Total assets	91,227	123,520	91,227	123,520
Headquarters/Other
Operating income (loss):
Operating income (loss)	(5,216)	(5,758)	(12,300)	(12,533)
Depreciation and amortization:
Depreciation and amortization	2,199	2,962	6,747	7,756
Total assets:
Assets net of intercompany balance eliminations	(56,031)	(15,110)	(56,031)	(15,110)
Intersegment Elimination
Total assets:
Total assets	$ (39,209)	$ (60,802)	$ (39,209)	$ (60,802)

BANK BORROWINGS (Details)

BANK BORROWINGS (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
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	0.08%