PC Connection (CNXN) 10-Q 4 Aug 22 2022 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2022	Jul. 29, 2022
Document And Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2022
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		26,273,602
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001050377
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current Assets:
Cash and cash equivalents	$ 94,896	$ 108,310
Accounts receivable, net	643,953	607,532
Inventories, net	223,158	206,555
Prepaid expenses and other current assets	13,368	10,016
Total current assets	975,375	932,413
Property and equipment, net	60,248	61,011
Right-of-use assets	8,267	9,579
Goodwill	73,602	73,602
Intangible, net	5,258	5,868
Other assets	883	910
Total Assets	1,123,633	1,083,383
Current Liabilities:
Accounts payable	278,446	281,836
Accrued payroll	31,357	30,966
Accrued expenses and other liabilities	57,080	61,830
Total current liabilities	366,883	374,632
Deferred income taxes	19,278	19,278
Noncurrent operating lease liabilities	5,242	6,789
Other liabilities	231	211
Total Liabilities	391,634	400,910
Stockholders' Equity:
Common stock	290	290
Additional paid-in capital	124,690	122,354
Retained earnings	652,956	605,766
Treasury stock, at cost	(45,937)	(45,937)
Total Stockholders' Equity	731,999	682,473
Total Liabilities and Stockholders' Equity	$ 1,123,633	$ 1,083,383

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Consolidated Statements of Income
Net sales	$ 828,509	$ 704,161	$ 1,616,853	$ 1,341,053
Cost of sales	691,608	587,834	1,351,646	1,124,206
Gross profit	136,901	116,327	265,207	216,847
Selling, general and administrative expenses	102,131	92,563	200,302	178,963
Income from operations	34,770	23,764	64,905	37,884
Other income, net	15	14	11	7
Income before taxes	34,785	23,778	64,916	37,891
Income tax provision	(9,387)	(6,486)	(17,726)	(10,415)
Net income	$ 25,398	$ 17,292	$ 47,190	$ 27,476
Earnings per common share:
Basic	$ 0.97	$ 0.66	$ 1.80	$ 1.05
Diluted	$ 0.96	$ 0.66	$ 1.79	$ 1.04
Shares used in computation of earnings per common share:
Basic	26,268	26,187	26,262	26,180
Diluted	26,429	26,359	26,417	26,361

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, 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		2,092			2,092
Restricted stock units vested (in shares)	17
Shares withheld for taxes paid on stock awards		(324)			(324)
Net income			27,476		27,476
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)
Balance at Mar. 31, 2021	$ 289	120,875	572,268	$ (45,937)	647,495
Balance (in shares) at Mar. 31, 2021	28,948			(2,773)
Stock-based compensation expense		1,026			1,026
Restricted stock units vested (in shares)	12
Shares withheld for taxes paid on stock awards		(242)			(242)
Net income			17,292		17,292
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)
Balance at Dec. 31, 2021	$ 290	122,354	605,766	$ (45,937)	682,473
Balance (in shares) at Dec. 31, 2021	29,025			(2,773)
Stock-based compensation expense		2,790			2,790
Restricted stock units vested (in shares)	20
Shares withheld for taxes paid on stock awards		(454)			(454)
Net income			47,190		47,190
Balance at Jun. 30, 2022	$ 290	124,690	652,956	$ (45,937)	731,999
Balance (in shares) at Jun. 30, 2022	29,045			(2,773)
Balance at Mar. 31, 2022	$ 290	123,571	627,558	$ (45,937)	705,482
Balance (in shares) at Mar. 31, 2022	29,034			(2,773)
Stock-based compensation expense		1,408			1,408
Restricted stock units vested (in shares)	11
Shares withheld for taxes paid on stock awards		(289)			(289)
Net income			25,398		25,398
Balance at Jun. 30, 2022	$ 290	$ 124,690	$ 652,956	$ (45,937)	$ 731,999
Balance (in shares) at Jun. 30, 2022	29,045			(2,773)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash Flows provided by Operating Activities:
Net income	$ 47,190	$ 27,476
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	5,980	6,218
Adjustments to credit losses reserve	1,642	1,059
Stock-based compensation expense	2,790	2,092
Loss on disposal of fixed assets	13
Changes in assets and liabilities:
Accounts receivable	(38,063)	26,806
Inventories	(16,603)	(26,212)
Prepaid expenses and other current assets	(3,352)	(2,151)
Other non-current assets	27	317
Accounts payable	(3,445)	(9,134)
Accrued expenses and other liabilities	(4,574)	5,349
Net cash (used in) provided by operating activities	(8,395)	31,820
Cash Flows used in Investing Activities:
Purchases of equipment and capitalized software	(4,565)	(4,611)
Proceeds from life insurance		1,500
Net cash used in investing activities	(4,565)	(3,111)
Cash Flows used in Financing Activities:
Proceeds from short-term borrowings	26,054
Repayment of short-term borrowings	(26,054)
Dividend payments		(8,375)
Payments of payroll taxes on stock-based compensation through shares withheld	(454)	(324)
Net cash used in financing activities	(454)	(8,699)
(Decrease) increase in cash and cash equivalents	(13,414)	20,010
Cash and cash equivalents, beginning of year	108,310	95,655
Cash and cash equivalents, end of period	94,896	115,665
Non-cash Investing and Financing Activities:
Accrued capital expenditures	390	609
Supplemental Cash Flow Information:
Income taxes paid	21,509	$ 13,141
Interest paid	$ 3

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2022
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, 2021, 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 for the year ended December 31, 2021. ​ 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, 2022 may not be indicative of the results expected for any succeeding quarter or the entire year ending December 31, 2022. ​ 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. Actual results could differ from those estimates and assumptions. ​ 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	6 Months Ended
	Jun. 30, 2022
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, 2022 and 2021, along with the reportable segment for each category. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, 2022 ​ Business Solutions Enterprise Solutions Public Sector Solutions Total Notebooks/Mobility ​ $ 123,176 ​ $ 117,407 ​ $ 67,211 ​ $ 307,794 Desktops ​ ​ 23,749 ​ ​ 52,632 ​ ​ 13,267 ​ ​ 89,648 Software ​ ​ 39,567 ​ ​ 21,572 ​ ​ 10,508 ​ ​ 71,647 Servers/Storage ​ ​ 29,698 ​ ​ 11,857 ​ ​ 9,598 ​ ​ 51,153 Net/Com Products ​ ​ 24,430 ​ ​ 24,244 ​ ​ 6,640 ​ ​ 55,314 Displays and Sound ​ 30,969 ​ 37,732 ​ 19,207 ​ 87,908 Accessories ​ 35,656 ​ 57,728 ​ 15,683 ​ 109,067 Other Hardware/Services ​ 21,106 ​ 25,782 ​ 9,090 ​ 55,978 Total net sales ​ $ 328,351 ​ $ 348,954 ​ $ 151,204 ​ $ 828,509 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, 2021 ​ Business Solutions Enterprise Solutions Public Sector Solutions Total Notebooks/Mobility ​ $ 97,401 ​ $ 94,472 ​ $ 62,501 ​ $ 254,374 Desktops ​ ​ 20,607 ​ ​ 38,916 ​ ​ 8,527 ​ ​ 68,050 Software ​ ​ 33,102 ​ ​ 26,162 ​ ​ 11,858 ​ ​ 71,122 Servers/Storage ​ ​ 21,086 ​ ​ 27,106 ​ ​ 7,635 ​ ​ 55,827 Net/Com Products ​ ​ 22,360 ​ ​ 20,691 ​ ​ 7,211 ​ ​ 50,262 Displays and Sound ​ 25,825 ​ 29,343 ​ 12,743 ​ 67,911 Accessories ​ 27,480 ​ 44,311 ​ 9,109 ​ 80,900 Other Hardware/Services ​ 19,397 ​ 26,160 ​ 10,158 ​ 55,715 Total net sales ​ $ 267,258 ​ $ 307,161 ​ $ 129,742 ​ $ 704,161 ​ ​ The following table represents a disaggregation of revenue from arrangements with customers for the six months ended June 30, 2022 and 2021, along with the reportable segment for each category. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, 2022 ​ ​ Business Solutions Enterprise Solutions Public Sector Solutions Total ​ Notebooks/Mobility ​ $ 253,609 ​ $ 238,747 ​ $ 124,061 ​ $ 616,417 ​ ​ Desktops ​ ​ 47,308 ​ ​ 97,496 ​ ​ 31,255 ​ ​ 176,059 ​ ​ Software ​ ​ 74,475 ​ ​ 42,582 ​ ​ 15,777 ​ ​ 132,834 ​ ​ Servers/Storage ​ ​ 51,862 ​ ​ 27,228 ​ ​ 19,228 ​ ​ 98,318 ​ ​ Net/Com Products ​ 47,057 ​ ​ 46,435 ​ ​ 14,667 ​ 108,159 ​ ​ Displays and Sound ​ ​ 63,793 ​ 74,811 ​ 32,630 ​ ​ 171,234 ​ ​ Accessories ​ 67,897 ​ 105,735 ​ 28,615 ​ 202,247 ​ ​ Other Hardware/Services ​ 42,793 ​ 51,317 ​ 17,475 ​ 111,585 ​ ​ Total net sales ​ $ 648,794 ​ $ 684,351 ​ $ 283,708 ​ $ 1,616,853 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, 2021 ​ ​ ​ Business Solutions Enterprise Solutions Public Sector Solutions Total ​ ​ Notebooks/Mobility ​ $ 191,836 ​ $ 176,663 ​ $ 119,475 ​ $ 487,974 ​ ​ Desktops ​ ​ 41,766 ​ ​ 69,267 ​ ​ 16,377 ​ ​ 127,410 ​ ​ Software ​ ​ 60,264 ​ ​ 48,667 ​ ​ 19,067 ​ ​ 127,998 ​ ​ Servers/Storage ​ 41,659 ​ ​ 44,262 ​ ​ 14,282 ​ 100,203 ​ ​ Net/Com Products ​ 40,764 ​ ​ 40,517 ​ ​ 17,572 ​ 98,853 ​ ​ Displays and Sound ​ ​ 45,599 ​ 52,748 ​ 26,736 ​ ​ 125,083 ​ ​ Accessories ​ ​ 53,327 ​ 88,187 ​ 19,930 ​ ​ 161,444 ​ ​ Other Hardware/Services ​ 38,377 ​ 52,135 ​ 21,576 ​ 112,088 ​ ​ Total net sales ​ $ 513,592 ​ $ 572,446 ​ $ 255,015 ​ $ 1,341,053 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contract Balances ​ The following table provides information about contract liabilities from arrangements with customers as of June 30, 2022 and December 31, 2021. ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 December 31, 2021 Contract liabilities, which are included in "Accrued expenses and other liabilities" ​ $ 6,037 ​ $ 8,628 ​ Changes in the contract liability balances during the six months ended June 30, 2022 and 2021 are as follows: ​ ​ ​ ​ ​ 2022 Balance at December 31, 2021 ​ $ 8,628 Cash received in advance and not recognized as revenue ​ 16,316 Amounts recognized as revenue as performance obligations satisfied ​ (18,907) Balance at June 30, 2022 ​ $ 6,037 ​ ​ ​ ​ ​ ​ 2021 Balance at December 31, 2020 ​ $ 3,509 Cash received in advance and not recognized as revenue ​ 6,969 Amounts recognized as revenue as performance obligations satisfied ​ (5,566) Balance at June 30, 2021 ​ $ 4,912 ​

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2022
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, ​ ​ 2022 2021 2022 2021 Numerator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 25,398 ​ $ 17,292 ​ $ 47,190 ​ $ 27,476 ​ Denominator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator for basic earnings per share ​ 26,268 ​ 26,187 ​ 26,262 ​ 26,180 ​ Dilutive effect of employee stock awards ​ 161 ​ 172 ​ 155 ​ 181 ​ Denominator for diluted earnings per share ​ 26,429 ​ 26,359 ​ 26,417 ​ 26,361 ​ Earnings per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 0.97 ​ $ 0.66 ​ $ 1.80 ​ $ 1.05 ​ Diluted ​ $ 0.96 ​ $ 0.66 ​ $ 1.79 ​ $ 1.04 ​ ​ For the three and six months ended June 30, 2022 and 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	6 Months Ended
	Jun. 30, 2022
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 June 30, 2022 was $1,730 and a corresponding lease liability of $1,730 associated with related party leases. ​ As of June 30, 2022, 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, 2022 and 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 ​ Related Parties ​ Others ​ Total Related Parties ​ Others ​ Total Lease Cost ​ ​ ​ ​ ​ ​ Capitalized operating lease cost $ 313 ​ $ 711 ​ $ 1,024 ​ $ 627 ​ $ 1,419 ​ $ 2,046 ​ Short-term lease cost 107 ​ 21 ​ 128 ​ 214 ​ 42 ​ 256 ​ Total lease cost $ 420 ​ $ 732 ​ $ 1,152 ​ $ 841 ​ $ 1,461 ​ $ 2,302 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Information ​ ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating cash flows $ 313 ​ $ 747 ​ $ 1,060 ​ $ 627 ​ $ 1,434 ​ $ 2,061 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average remaining lease term (in years): ​ ​ ​ ​ ​ ​ Capitalized operating leases ​ 1.42 ​ ​ 4.10 ​ ​ 3.58 ​ ​ 1.42 ​ ​ 4.10 ​ ​ 3.58 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average discount rate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized operating leases ​ 3.92% ​ ​ 3.91% ​ ​ 3.92% ​ ​ 3.92% ​ ​ 3.91% ​ ​ 3.92% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 ​ ​ Related Parties ​ Others ​ Total Related Parties ​ Others ​ Total ​ Lease Cost ​ ​ ​ ​ ​ ​ Capitalized operating lease cost $ 313 ​ $ 775 ​ $ 1,088 ​ $ 627 ​ $ 1,552 ​ $ 2,179 ​ Short-term lease cost 107 ​ 21 ​ 128 ​ 213 ​ 42 ​ 255 ​ Total lease cost $ 420 ​ $ 796 ​ $ 1,216 ​ $ 840 ​ $ 1,594 ​ $ 2,434 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Information ​ ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating cash flows $ 313 ​ $ 830 ​ $ 1,143 ​ $ 627 ​ $ 1,599 ​ $ 2,226 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average remaining lease term (in years): ​ ​ ​ ​ ​ ​ Capitalized operating leases ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2.42 ​ ​ 4.90 ​ ​ 4.30 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average discount rate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized operating leases ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 3.92% ​ ​ 3.92% ​ ​ 3.92% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of June 30, 2022, ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years Ended December 31, ​ Related Parties ​ Others ​ Total 2022, excluding the six months ended June 30, 2022 ​ $ 627 ​ $ 1,411 ​ $ 2,038 2023 ​ 1,149 ​ 2,136 ​ 3,285 2024 ​ — ​ 1,644 ​ 1,644 2025 ​ — ​ 1,577 ​ 1,577 2026 ​ ​ — ​ ​ 888 ​ ​ 888 Thereafter ​ ​ — ​ ​ 1 ​ ​ 1 ​ ​ $ 1,776 ​ $ 7,657 ​ $ 9,433 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Imputed interest ​ ​ ​ ​ ​ ​ ​ ​ (550) Lease liability balance at June 30, 2022 ​ ​ ​ ​ ​ ​ ​ $ 8,883 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of June 30, 2022, the ROU asset had a balance of $8,267. The long-term lease liability was $5,242 and the short-term lease liability, which is included in accrued expenses and other liabilities in the consolidated balance sheets, was $3,641. As of June 30, 2021, the ROU asset had a balance of $11,174. The long-term lease liability was $8,124 and the short-term lease liability, which is included in accrued expenses and other liabilities in the consolidated balance sheets, was $3,742.

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Jun. 30, 2022
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 the Company’s 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 the Company’s reportable operating segments for the three and six months ended June 30, 2022 and 2021 is shown below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ ​ June 30, ​ June 30, ​ June 30, ​ June 30, ​ ​ 2022 2021 2022 2021 Net sales: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Business Solutions ​ $ 328,351 ​ $ 267,258 ​ $ 648,794 ​ $ 513,592 ​ Enterprise Solutions ​ 348,954 ​ 307,161 ​ 684,351 ​ 572,446 ​ Public Sector Solutions ​ 151,204 ​ 129,742 ​ 283,708 ​ 255,015 ​ Total net sales ​ $ 828,509 ​ $ 704,161 ​ $ 1,616,853 ​ $ 1,341,053 ​ Operating income (loss): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Business Solutions ​ $ 22,279 ​ $ 8,365 ​ $ 42,952 ​ $ 16,785 ​ Enterprise Solutions ​ 15,389 ​ 20,509 ​ 29,703 ​ 33,052 ​ Public Sector Solutions ​ 1,071 ​ (2,116) ​ (55) ​ (4,869) ​ Headquarters/Other ​ (3,969) ​ (2,994) ​ (7,695) ​ (7,084) ​ Total operating income ​ 34,770 ​ 23,764 ​ 64,905 ​ 37,884 ​ Other expenses, net ​ 15 ​ 14 ​ 11 ​ 7 ​ Income before taxes ​ $ 34,785 ​ $ 23,778 ​ $ 64,916 ​ $ 37,891 ​ Selected operating expense: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Business Solutions ​ $ 168 ​ $ 159 ​ $ 335 ​ $ 318 ​ Enterprise Solutions ​ 501 ​ 612 ​ 1,035 ​ 1,328 ​ Public Sector Solutions ​ 20 ​ 10 ​ 39 ​ 24 ​ Headquarters/Other ​ 2,300 ​ 2,272 ​ 4,571 ​ 4,548 ​ Total depreciation and amortization ​ $ 2,989 ​ $ 3,053 ​ $ 5,980 ​ $ 6,218 ​ Total assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Business Solutions ​ ​ ​ ​ ​ ​ ​ $ 430,763 ​ $ 370,608 ​ Enterprise Solutions ​ ​ ​ ​ ​ ​ ​ 663,837 ​ 603,960 ​ Public Sector Solutions ​ ​ ​ ​ ​ ​ ​ 86,743 ​ 84,301 ​ Headquarters/Other ​ ​ ​ ​ ​ ​ ​ (57,710) ​ (27,597) ​ Total assets ​ ​ ​ ​ ​ ​ ​ $ 1,123,633 ​ $ 1,031,272 ​ ​ The assets of the Company’s 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 and cash equivalents, inventories, property and equipment, ROU assets, and intercompany balance, net. As of June 30, 2022 and 2021, total assets for the Headquarters/Other group were presented net of intercompany balance eliminations of $41,439 , and $37,457 , respectively. The Company’s capital expenditures consist largely of IT hardware and software purchased to maintain or upgrade our management information systems. These information systems serve all of the Company’s segments, to varying degrees, and accordingly, the CODM does not evaluate capital expenditures on a segment-by-segment basis.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2022
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 the Company’s 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 the Company’s financial position, results of operations, and/or cash flows.

BANK BORROWINGS

BANK BORROWINGS	6 Months Ended
	Jun. 30, 2022
Bank Borrowings
Bank Borrowings	Note 7–Bank Borrowings ​ The Company has a $50,000 credit facility collateralized by its account receivables that expires March 31, 2025. This facility can be increased, at the Company’s option, to $80,000 for permitted acquisitions or other uses authorized by the lender on substantially the same terms. Amounts outstanding under this facility bear interest at the one-month LIBOR, plus a spread based on our funded debt ratio, or in the absence of LIBOR, the prime rate (4.75% at June 30, 2022). 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 consolidated trailing twelve months Adjusted Earnings Before Interest Expense, Taxes, Depreciation, Amortization, and Special Charges (Adjusted EBITDA). The maximum allowable funded debt ratio under the agreement is 2.0 to 1.0. Decreases in the Company’s consolidated trailing twelve months Adjusted EBITDA could limit its potential borrowing capacity under the credit facility. As of June 30, 2022, the Company was in compliance with all financial covenants contained in the agreement governing the credit facility. ​ During the first half of 2022, the Company borrowed $26,054 under the credit facility, which was fully repaid prior to the quarter ended June 30, 2022. The Company had no outstanding borrowings under the credit facility as of June 30, 2022 or 2021, and accordingly, the entire $50,000 credit facility was available for borrowings on such date. ​

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2022
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, 2021, 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 for the year ended December 31, 2021. ​ 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, 2022 may not be indicative of the results expected for any succeeding quarter or the entire year ending December 31, 2022. ​
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. Actual results could differ from those estimates and assumptions.
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)	6 Months Ended
	Jun. 30, 2022
Revenue
Schedule of disaggregation of revenue from contracts with customers	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, 2022 ​ Business Solutions Enterprise Solutions Public Sector Solutions Total Notebooks/Mobility ​ $ 123,176 ​ $ 117,407 ​ $ 67,211 ​ $ 307,794 Desktops ​ ​ 23,749 ​ ​ 52,632 ​ ​ 13,267 ​ ​ 89,648 Software ​ ​ 39,567 ​ ​ 21,572 ​ ​ 10,508 ​ ​ 71,647 Servers/Storage ​ ​ 29,698 ​ ​ 11,857 ​ ​ 9,598 ​ ​ 51,153 Net/Com Products ​ ​ 24,430 ​ ​ 24,244 ​ ​ 6,640 ​ ​ 55,314 Displays and Sound ​ 30,969 ​ 37,732 ​ 19,207 ​ 87,908 Accessories ​ 35,656 ​ 57,728 ​ 15,683 ​ 109,067 Other Hardware/Services ​ 21,106 ​ 25,782 ​ 9,090 ​ 55,978 Total net sales ​ $ 328,351 ​ $ 348,954 ​ $ 151,204 ​ $ 828,509 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, 2021 ​ Business Solutions Enterprise Solutions Public Sector Solutions Total Notebooks/Mobility ​ $ 97,401 ​ $ 94,472 ​ $ 62,501 ​ $ 254,374 Desktops ​ ​ 20,607 ​ ​ 38,916 ​ ​ 8,527 ​ ​ 68,050 Software ​ ​ 33,102 ​ ​ 26,162 ​ ​ 11,858 ​ ​ 71,122 Servers/Storage ​ ​ 21,086 ​ ​ 27,106 ​ ​ 7,635 ​ ​ 55,827 Net/Com Products ​ ​ 22,360 ​ ​ 20,691 ​ ​ 7,211 ​ ​ 50,262 Displays and Sound ​ 25,825 ​ 29,343 ​ 12,743 ​ 67,911 Accessories ​ 27,480 ​ 44,311 ​ 9,109 ​ 80,900 Other Hardware/Services ​ 19,397 ​ 26,160 ​ 10,158 ​ 55,715 Total net sales ​ $ 267,258 ​ $ 307,161 ​ $ 129,742 ​ $ 704,161 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, 2022 ​ ​ Business Solutions Enterprise Solutions Public Sector Solutions Total ​ Notebooks/Mobility ​ $ 253,609 ​ $ 238,747 ​ $ 124,061 ​ $ 616,417 ​ ​ Desktops ​ ​ 47,308 ​ ​ 97,496 ​ ​ 31,255 ​ ​ 176,059 ​ ​ Software ​ ​ 74,475 ​ ​ 42,582 ​ ​ 15,777 ​ ​ 132,834 ​ ​ Servers/Storage ​ ​ 51,862 ​ ​ 27,228 ​ ​ 19,228 ​ ​ 98,318 ​ ​ Net/Com Products ​ 47,057 ​ ​ 46,435 ​ ​ 14,667 ​ 108,159 ​ ​ Displays and Sound ​ ​ 63,793 ​ 74,811 ​ 32,630 ​ ​ 171,234 ​ ​ Accessories ​ 67,897 ​ 105,735 ​ 28,615 ​ 202,247 ​ ​ Other Hardware/Services ​ 42,793 ​ 51,317 ​ 17,475 ​ 111,585 ​ ​ Total net sales ​ $ 648,794 ​ $ 684,351 ​ $ 283,708 ​ $ 1,616,853 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, 2021 ​ ​ ​ Business Solutions Enterprise Solutions Public Sector Solutions Total ​ ​ Notebooks/Mobility ​ $ 191,836 ​ $ 176,663 ​ $ 119,475 ​ $ 487,974 ​ ​ Desktops ​ ​ 41,766 ​ ​ 69,267 ​ ​ 16,377 ​ ​ 127,410 ​ ​ Software ​ ​ 60,264 ​ ​ 48,667 ​ ​ 19,067 ​ ​ 127,998 ​ ​ Servers/Storage ​ 41,659 ​ ​ 44,262 ​ ​ 14,282 ​ 100,203 ​ ​ Net/Com Products ​ 40,764 ​ ​ 40,517 ​ ​ 17,572 ​ 98,853 ​ ​ Displays and Sound ​ ​ 45,599 ​ 52,748 ​ 26,736 ​ ​ 125,083 ​ ​ Accessories ​ ​ 53,327 ​ 88,187 ​ 19,930 ​ ​ 161,444 ​ ​ Other Hardware/Services ​ 38,377 ​ 52,135 ​ 21,576 ​ 112,088 ​ ​ Total net sales ​ $ 513,592 ​ $ 572,446 ​ $ 255,015 ​ $ 1,341,053 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of changes in contract liability balances	​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 December 31, 2021 Contract liabilities, which are included in "Accrued expenses and other liabilities" ​ $ 6,037 ​ $ 8,628 ​ Changes in the contract liability balances during the six months ended June 30, 2022 and 2021 are as follows: ​ ​ ​ ​ ​ 2022 Balance at December 31, 2021 ​ $ 8,628 Cash received in advance and not recognized as revenue ​ 16,316 Amounts recognized as revenue as performance obligations satisfied ​ (18,907) Balance at June 30, 2022 ​ $ 6,037 ​ ​ ​ ​ ​ ​ 2021 Balance at December 31, 2020 ​ $ 3,509 Cash received in advance and not recognized as revenue ​ 6,969 Amounts recognized as revenue as performance obligations satisfied ​ (5,566) Balance at June 30, 2021 ​ $ 4,912

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2022
Earnings Per Share
Computation of basic and diluted earnings per share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, ​ ​ 2022 2021 2022 2021 Numerator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 25,398 ​ $ 17,292 ​ $ 47,190 ​ $ 27,476 ​ Denominator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator for basic earnings per share ​ 26,268 ​ 26,187 ​ 26,262 ​ 26,180 ​ Dilutive effect of employee stock awards ​ 161 ​ 172 ​ 155 ​ 181 ​ Denominator for diluted earnings per share ​ 26,429 ​ 26,359 ​ 26,417 ​ 26,361 ​ Earnings per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 0.97 ​ $ 0.66 ​ $ 1.80 ​ $ 1.05 ​ Diluted ​ $ 0.96 ​ $ 0.66 ​ $ 1.79 ​ $ 1.04 ​

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jun. 30, 2022
Leases
Schedule of lease cost	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 ​ Related Parties ​ Others ​ Total Related Parties ​ Others ​ Total Lease Cost ​ ​ ​ ​ ​ ​ Capitalized operating lease cost $ 313 ​ $ 711 ​ $ 1,024 ​ $ 627 ​ $ 1,419 ​ $ 2,046 ​ Short-term lease cost 107 ​ 21 ​ 128 ​ 214 ​ 42 ​ 256 ​ Total lease cost $ 420 ​ $ 732 ​ $ 1,152 ​ $ 841 ​ $ 1,461 ​ $ 2,302 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Information ​ ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating cash flows $ 313 ​ $ 747 ​ $ 1,060 ​ $ 627 ​ $ 1,434 ​ $ 2,061 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average remaining lease term (in years): ​ ​ ​ ​ ​ ​ Capitalized operating leases ​ 1.42 ​ ​ 4.10 ​ ​ 3.58 ​ ​ 1.42 ​ ​ 4.10 ​ ​ 3.58 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average discount rate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized operating leases ​ 3.92% ​ ​ 3.91% ​ ​ 3.92% ​ ​ 3.92% ​ ​ 3.91% ​ ​ 3.92% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 ​ ​ Related Parties ​ Others ​ Total Related Parties ​ Others ​ Total ​ Lease Cost ​ ​ ​ ​ ​ ​ Capitalized operating lease cost $ 313 ​ $ 775 ​ $ 1,088 ​ $ 627 ​ $ 1,552 ​ $ 2,179 ​ Short-term lease cost 107 ​ 21 ​ 128 ​ 213 ​ 42 ​ 255 ​ Total lease cost $ 420 ​ $ 796 ​ $ 1,216 ​ $ 840 ​ $ 1,594 ​ $ 2,434 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Information ​ ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating cash flows $ 313 ​ $ 830 ​ $ 1,143 ​ $ 627 ​ $ 1,599 ​ $ 2,226 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average remaining lease term (in years): ​ ​ ​ ​ ​ ​ Capitalized operating leases ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2.42 ​ ​ 4.90 ​ ​ 4.30 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 2022, excluding the six months ended June 30, 2022 ​ $ 627 ​ $ 1,411 ​ $ 2,038 2023 ​ 1,149 ​ 2,136 ​ 3,285 2024 ​ — ​ 1,644 ​ 1,644 2025 ​ — ​ 1,577 ​ 1,577 2026 ​ ​ — ​ ​ 888 ​ ​ 888 Thereafter ​ ​ — ​ ​ 1 ​ ​ 1 ​ ​ $ 1,776 ​ $ 7,657 ​ $ 9,433 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Imputed interest ​ ​ ​ ​ ​ ​ ​ ​ (550) Lease liability balance at June 30, 2022 ​ ​ ​ ​ ​ ​ ​ $ 8,883 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2022
Segment Information
Segment information applicable to reportable operating segments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ ​ June 30, ​ June 30, ​ June 30, ​ June 30, ​ ​ 2022 2021 2022 2021 Net sales: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Business Solutions ​ $ 328,351 ​ $ 267,258 ​ $ 648,794 ​ $ 513,592 ​ Enterprise Solutions ​ 348,954 ​ 307,161 ​ 684,351 ​ 572,446 ​ Public Sector Solutions ​ 151,204 ​ 129,742 ​ 283,708 ​ 255,015 ​ Total net sales ​ $ 828,509 ​ $ 704,161 ​ $ 1,616,853 ​ $ 1,341,053 ​ Operating income (loss): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Business Solutions ​ $ 22,279 ​ $ 8,365 ​ $ 42,952 ​ $ 16,785 ​ Enterprise Solutions ​ 15,389 ​ 20,509 ​ 29,703 ​ 33,052 ​ Public Sector Solutions ​ 1,071 ​ (2,116) ​ (55) ​ (4,869) ​ Headquarters/Other ​ (3,969) ​ (2,994) ​ (7,695) ​ (7,084) ​ Total operating income ​ 34,770 ​ 23,764 ​ 64,905 ​ 37,884 ​ Other expenses, net ​ 15 ​ 14 ​ 11 ​ 7 ​ Income before taxes ​ $ 34,785 ​ $ 23,778 ​ $ 64,916 ​ $ 37,891 ​ Selected operating expense: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Business Solutions ​ $ 168 ​ $ 159 ​ $ 335 ​ $ 318 ​ Enterprise Solutions ​ 501 ​ 612 ​ 1,035 ​ 1,328 ​ Public Sector Solutions ​ 20 ​ 10 ​ 39 ​ 24 ​ Headquarters/Other ​ 2,300 ​ 2,272 ​ 4,571 ​ 4,548 ​ Total depreciation and amortization ​ $ 2,989 ​ $ 3,053 ​ $ 5,980 ​ $ 6,218 ​ Total assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Business Solutions ​ ​ ​ ​ ​ ​ ​ $ 430,763 ​ $ 370,608 ​ Enterprise Solutions ​ ​ ​ ​ ​ ​ ​ 663,837 ​ 603,960 ​ Public Sector Solutions ​ ​ ​ ​ ​ ​ ​ 86,743 ​ 84,301 ​ Headquarters/Other ​ ​ ​ ​ ​ ​ ​ (57,710) ​ (27,597) ​ Total assets ​ ​ ​ ​ ​ ​ ​ $ 1,123,633 ​ $ 1,031,272 ​

REVENUE - Disaggregation of Rev

REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of revenue
Net sales	$ 828,509	$ 704,161	$ 1,616,853	$ 1,341,053
Notebooks/Mobility
Disaggregation of revenue
Net sales	307,794	254,374	616,417	487,974
Desktops
Disaggregation of revenue
Net sales	89,648	68,050	176,059	127,410
Software
Disaggregation of revenue
Net sales	71,647	71,122	132,834	127,998
Servers/Storage
Disaggregation of revenue
Net sales	51,153	55,827	98,318	100,203
Net/Com Products
Disaggregation of revenue
Net sales	55,314	50,262	108,159	98,853
Displays and Sound
Disaggregation of revenue
Net sales	87,908	67,911	171,234	125,083
Accessories
Disaggregation of revenue
Net sales	109,067	80,900	202,247	161,444
Other Hardware/Services
Disaggregation of revenue
Net sales	55,978	55,715	111,585	112,088
Business Solutions
Disaggregation of revenue
Net sales	328,351	267,258	648,794	513,592
Business Solutions | Notebooks/Mobility
Disaggregation of revenue
Net sales	123,176	97,401	253,609	191,836
Business Solutions | Desktops
Disaggregation of revenue
Net sales	23,749	20,607	47,308	41,766
Business Solutions | Software
Disaggregation of revenue
Net sales	39,567	33,102	74,475	60,264
Business Solutions | Servers/Storage
Disaggregation of revenue
Net sales	29,698	21,086	51,862	41,659
Business Solutions | Net/Com Products
Disaggregation of revenue
Net sales	24,430	22,360	47,057	40,764
Business Solutions | Displays and Sound
Disaggregation of revenue
Net sales	30,969	25,825	63,793	45,599
Business Solutions | Accessories
Disaggregation of revenue
Net sales	35,656	27,480	67,897	53,327
Business Solutions | Other Hardware/Services
Disaggregation of revenue
Net sales	21,106	19,397	42,793	38,377
Enterprise Solutions
Disaggregation of revenue
Net sales	348,954	307,161	684,351	572,446
Enterprise Solutions | Notebooks/Mobility
Disaggregation of revenue
Net sales	117,407	94,472	238,747	176,663
Enterprise Solutions | Desktops
Disaggregation of revenue
Net sales	52,632	38,916	97,496	69,267
Enterprise Solutions | Software
Disaggregation of revenue
Net sales	21,572	26,162	42,582	48,667
Enterprise Solutions | Servers/Storage
Disaggregation of revenue
Net sales	11,857	27,106	27,228	44,262
Enterprise Solutions | Net/Com Products
Disaggregation of revenue
Net sales	24,244	20,691	46,435	40,517
Enterprise Solutions | Displays and Sound
Disaggregation of revenue
Net sales	37,732	29,343	74,811	52,748
Enterprise Solutions | Accessories
Disaggregation of revenue
Net sales	57,728	44,311	105,735	88,187
Enterprise Solutions | Other Hardware/Services
Disaggregation of revenue
Net sales	25,782	26,160	51,317	52,135
Public Sector Solutions
Disaggregation of revenue
Net sales	151,204	129,742	283,708	255,015
Public Sector Solutions | Notebooks/Mobility
Disaggregation of revenue
Net sales	67,211	62,501	124,061	119,475
Public Sector Solutions | Desktops
Disaggregation of revenue
Net sales	13,267	8,527	31,255	16,377
Public Sector Solutions | Software
Disaggregation of revenue
Net sales	10,508	11,858	15,777	19,067
Public Sector Solutions | Servers/Storage
Disaggregation of revenue
Net sales	9,598	7,635	19,228	14,282
Public Sector Solutions | Net/Com Products
Disaggregation of revenue
Net sales	6,640	7,211	14,667	17,572
Public Sector Solutions | Displays and Sound
Disaggregation of revenue
Net sales	19,207	12,743	32,630	26,736
Public Sector Solutions | Accessories
Disaggregation of revenue
Net sales	15,683	9,109	28,615	19,930
Public Sector Solutions | Other Hardware/Services
Disaggregation of revenue
Net sales	$ 9,090	$ 10,158	$ 17,475	$ 21,576

REVENUE - Contract Balances (De

REVENUE - Contract Balances (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Change in contract liability
Beginning balance - Contract liability	$ 8,628	$ 3,509
Cash received in advance and not recognized as revenue	16,316	6,969
Amounts recognized as revenue as performance obligations satisfied	(18,907)	(5,566)
Ending balance - Contract liability	6,037	$ 4,912
Accrued expenses and other liabilities
Contract liabilities
Contract liabilities	$ 6,037		$ 8,628

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, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Numerator:
Net income	$ 25,398	$ 17,292	$ 47,190	$ 27,476
Denominator:
Denominator for basic earnings per share	26,268	26,187	26,262	26,180
Dilutive effect of unvested employee stock awards	161	172	155	181
Denominator for diluted earnings per share	26,429	26,359	26,417	26,361
Earnings per share:
Basic	$ 0.97	$ 0.66	$ 1.80	$ 1.05
Diluted	$ 0.96	$ 0.66	$ 1.79	$ 1.04
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, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) lease	Jun. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Leases
Right-of-use assets	$ 8,267	$ 11,174	$ 8,267	$ 11,174	$ 9,579
Lease liability	8,883		$ 8,883
Number of additional operating or financing leases not yet commenced | lease			0
Lease Cost
Capitalized operating lease cost	1,024	1,088	$ 2,046	2,179
Short-term lease cost	128	128	256	255
Total lease cost	1,152	1,216	2,302	2,434
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$ 1,060	$ 1,143	$ 2,061	$ 2,226
Weighted-average remaining lease term - Capitalized operating leases (in years)	3 years 6 months 29 days	4 years 3 months 18 days	3 years 6 months 29 days	4 years 3 months 18 days
Weighted-average discount rate - Capitalized operating leases	3.92%	3.92%	3.92%	3.92%
Related Parties
Leases
Right-of-use assets	$ 1,730		$ 1,730
Lease liability	1,730		1,730
Lease Cost
Capitalized operating lease cost	313	$ 313	627	$ 627
Short-term lease cost	107	107	214	213
Total lease cost	420	420	841	840
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$ 313	$ 313	$ 627	$ 627
Weighted-average remaining lease term - Capitalized operating leases (in years)	1 year 5 months 1 day	2 years 5 months 1 day	1 year 5 months 1 day	2 years 5 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	$ 711	$ 775	$ 1,419	$ 1,552
Short-term lease cost	21	21	42	42
Total lease cost	732	796	1,461	1,594
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$ 747	$ 830	$ 1,434	$ 1,599
Weighted-average remaining lease term - Capitalized operating leases (in years)	4 years 1 month 6 days	4 years 10 months 24 days	4 years 1 month 6 days	4 years 10 months 24 days
Weighted-average discount rate - Capitalized operating leases	3.91%	3.92%	3.91%	3.92%

LEASES - Future Lease Payments

LEASES - Future Lease Payments (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021
Future lease payments over the remaining term of capitalized operating leases
2022, excluding the six months ended June 30, 2022	$ 2,038
2023	3,285
2024	1,644
2025	1,577
2026	888
Thereafter	1
Total	9,433
Imputed interest	(550)
Lease liability balance	8,883
Right-of-use assets	8,267	$ 9,579	$ 11,174
Long-term lease liability	5,242	$ 6,789	8,124
Short-term lease liability	$ 3,641		$ 3,742
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
2022, excluding the six months ended June 30, 2022	$ 627
2023	1,149
Total	1,776
Lease liability balance	1,730
Right-of-use assets	1,730
Others
Future lease payments over the remaining term of capitalized operating leases
2022, excluding the six months ended June 30, 2022	1,411
2023	2,136
2024	1,644
2025	1,577
2026	888
Thereafter	1
Total	$ 7,657

SEGMENT INFORMATION - Segment I

SEGMENT INFORMATION - Segment Information Applicable to Reportable Operating Segments (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($) segment	Jun. 30, 2021 USD ($) segment	Jun. 30, 2022 USD ($) segment	Jun. 30, 2021 USD ($) segment	Dec. 31, 2021 USD ($)
Segment Reporting Information
Number of reportable segments | segment	3	3	3	3
Number of operating segments | segment	3	3	3	3
Net sales:
Net sales	$ 828,509	$ 704,161	$ 1,616,853	$ 1,341,053
Operating income (loss):
Operating income (loss)	34,770	23,764	64,905	37,884
Other expenses, net	15	14	11	7
Income before taxes	34,785	23,778	64,916	37,891
Depreciation and amortization:
Depreciation and amortization	2,989	3,053	5,980	6,218
Total assets:
Total assets	1,123,633	1,031,272	1,123,633	1,031,272	$ 1,083,383
Business Solutions
Net sales:
Net sales	328,351	267,258	648,794	513,592
Enterprise Solutions
Net sales:
Net sales	348,954	307,161	684,351	572,446
Public Sector Solutions
Net sales:
Net sales	151,204	129,742	283,708	255,015
Operating Segments | Business Solutions
Net sales:
Net sales	328,351	267,258	648,794	513,592
Operating income (loss):
Operating income (loss)	22,279	8,365	42,952	16,785
Depreciation and amortization:
Depreciation and amortization	168	159	335	318
Total assets:
Total assets	430,763	370,608	430,763	370,608
Operating Segments | Enterprise Solutions
Net sales:
Net sales	348,954	307,161	684,351	572,446
Operating income (loss):
Operating income (loss)	15,389	20,509	29,703	33,052
Depreciation and amortization:
Depreciation and amortization	501	612	1,035	1,328
Total assets:
Total assets	663,837	603,960	663,837	603,960
Operating Segments | Public Sector Solutions
Net sales:
Net sales	151,204	129,742	283,708	255,015
Operating income (loss):
Operating income (loss)	1,071	(2,116)	(55)	(4,869)
Depreciation and amortization:
Depreciation and amortization	20	10	39	24
Total assets:
Total assets	86,743	84,301	86,743	84,301
Headquarters/Other
Operating income (loss):
Operating income (loss)	(3,969)	(2,994)	(7,695)	(7,084)
Depreciation and amortization:
Depreciation and amortization	2,300	2,272	4,571	4,548
Total assets:
Assets net of intercompany balance eliminations	(57,710)	(27,597)	(57,710)	(27,597)
Intersegment Elimination
Total assets:
Total assets	$ (41,439)	$ (37,457)	$ (41,439)	$ (37,457)

BANK BORROWINGS (Details)

BANK BORROWINGS (Details) - USD ($) $ in Thousands		6 Months Ended
	Feb. 03, 2022	Jun. 30, 2022	Jun. 30, 2021
Subordinated Borrowing
Line of credit, borrowing capacity		$ 50,000
Credit facility, expiration date		Mar. 31, 2025
Line of credit, maximum borrowing capacity		$ 80,000
Proceeds from short-term borrowings	$ 26,054	26,054
Line of credit, outstanding borrowing		0	$ 0
Line of credit, available for borrowing		$ 50,000	$ 50,000
Maximum
Subordinated Borrowing
Debt ratio		2
Prime Rate
Subordinated Borrowing
Debt instrument, interest rate		4.75%