Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 25, 2013 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 30-Sep-13 | |
Document Fiscal Year Focus | 2013 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | INSIGHT ENTERPRISES INC | |
Entity Central Index Key | 932696 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 42,338,200 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $135,032 | $152,119 |
Accounts receivable, net of allowance for doubtful accounts of $20,654 and $18,905, respectively | 992,733 | 1,371,356 |
Inventories | 114,706 | 100,896 |
Inventories not available for sale | 30,627 | 31,249 |
Deferred income taxes | 15,959 | 16,387 |
Other current assets | 50,031 | 29,543 |
Total current assets | 1,339,088 | 1,701,550 |
Property and equipment, net of accumulated depreciation of $243,050 and $226,684, respectively | 135,306 | 143,513 |
Goodwill | 26,257 | 26,257 |
Intangible assets, net of accumulated amortization of $75,959 and $67,092, respectively | 38,615 | 47,405 |
Deferred income taxes | 58,639 | 64,013 |
Other assets | 21,791 | 18,765 |
Total assets | 1,619,696 | 2,001,503 |
Current liabilities: | ||
Accounts payable | 625,981 | 982,611 |
Accrued expenses and other current liabilities | 117,756 | 158,621 |
Current portion of long-term debt | 216 | 602 |
Deferred revenue | 45,976 | 40,287 |
Total current liabilities | 789,929 | 1,182,121 |
Long-term debt | 88,503 | 80,000 |
Deferred income taxes | 1,174 | 2,312 |
Other liabilities | 35,730 | 31,779 |
Total liabilities | 915,336 | 1,296,212 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 3,000 shares authorized; no shares issued | ||
Common stock, $0.01 par value, 100,000 shares authorized; 42,337 shares at September 30, 2013 and 44,594 shares at December 31, 2012 issued and outstanding | 423 | 446 |
Additional paid-in capital | 350,295 | 369,300 |
Retained earnings | 338,295 | 315,888 |
Accumulated other comprehensive income - foreign currency translation adjustments | 15,347 | 19,657 |
Total stockholders' equity | 704,360 | 705,291 |
Total liabilities and stockholders' equity | $1,619,696 | $2,001,503 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $20,654 | $18,905 |
Accumulated depreciation of property and equipment | 243,050 | 226,684 |
Accumulated amortization of intangible assets | $75,959 | $67,092 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 3,000 | 3,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 100,000 | 100,000 |
Common stock, shares issued | 42,337 | 44,594 |
Common stock, shares outstanding | 42,337 | 44,594 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Statement [Abstract] | ||||
Net sales | $1,151,020 | $1,181,409 | $3,749,189 | $3,954,766 |
Costs of goods sold | 982,352 | 1,013,784 | 3,231,457 | 3,415,483 |
Gross profit | 168,668 | 167,625 | 517,732 | 539,283 |
Operating expenses: | ||||
Selling and administrative expenses | 139,965 | 136,259 | 424,111 | 423,254 |
Severance and restructuring expenses | 2,424 | 705 | 8,327 | 4,456 |
Earnings from operations | 26,279 | 30,661 | 85,294 | 111,573 |
Non-operating (income) expense: | ||||
Interest income | -322 | -489 | -971 | -1,128 |
Interest expense | 1,603 | 1,702 | 4,777 | 4,750 |
Gain on bargain purchase | -2,022 | |||
Net foreign currency exchange loss (gain) | 474 | 426 | -251 | -872 |
Other expense, net | 364 | 319 | 1,080 | 952 |
Earnings before income taxes | 24,160 | 28,703 | 80,659 | 109,893 |
Income tax expense | 9,135 | 9,349 | 30,045 | 37,897 |
Net earnings | $15,025 | $19,354 | $50,614 | $71,996 |
Net earnings per share: | ||||
Basic | $0.35 | $0.43 | $1.17 | $1.62 |
Diluted | $0.35 | $0.43 | $1.16 | $1.61 |
Shares used in per share calculations: | ||||
Basic | 42,334 | 44,510 | 43,289 | 44,360 |
Diluted | 42,577 | 44,869 | 43,555 | 44,777 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net earnings | $15,025 | $19,354 | $50,614 | $71,996 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | 9,712 | 6,056 | -4,310 | 5,627 |
Total comprehensive income | $24,737 | $25,410 | $46,304 | $77,623 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ||
Net earnings | $50,614 | $71,996 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 31,337 | 30,635 |
Provision for losses on accounts receivable | 4,118 | 2,826 |
Write-downs of inventories | 3,120 | 2,240 |
Write-off of property and equipment | 338 | 36 |
Non-cash stock-based compensation | 4,911 | 6,467 |
Gain on bargain purchase | -2,022 | |
Excess tax benefit from employee gains on stock-based compensation | -763 | -1,942 |
Deferred income taxes | 4,676 | 5,913 |
Changes in assets and liabilities: | ||
Decrease in accounts receivable | 367,799 | 268,880 |
(Increase) decrease in inventories | -16,270 | 22,687 |
Increase in other current assets | -20,702 | -9,673 |
(Increase) decrease in other assets | -2,998 | 6,082 |
Decrease in accounts payable | -329,428 | -309,447 |
Increase (decrease) in deferred revenue | 3,583 | -11,896 |
Decrease in accrued expenses and other liabilities | -33,759 | -52,690 |
Net cash provided by operating activities | 66,576 | 30,092 |
Cash flows from investing activities: | ||
Acquisition, net of cash acquired | -3,831 | |
Purchases of property and equipment | -14,145 | -22,454 |
Net cash used in investing activities | -14,145 | -26,285 |
Cash flows from financing activities: | ||
Borrowings on senior revolving credit facility | 778,828 | 713,953 |
Repayments on senior revolving credit facility | -801,828 | -826,953 |
Borrowings on accounts receivable securitization financing facility | 637,000 | 450,000 |
Repayments on accounts receivable securitization financing facility | -606,000 | -340,000 |
Payments on capital lease obligation | -617 | -761 |
Net (repayments) borrowings under inventory financing facility | -19,946 | 9,290 |
Payment of deferred financing fees | -2,554 | |
Proceeds from sales of common stock under employee stock plans | 2,641 | |
Excess tax benefit from employee gains on stock-based compensation | 763 | 1,942 |
Payment of payroll taxes on stock-based compensation through shares withheld | -2,756 | -3,046 |
Repurchases of common stock | -50,000 | |
Net cash (used in) provided by financing activities | -64,556 | 4,512 |
Foreign currency exchange effect on cash balances | -4,962 | 4,020 |
(Decrease) increase in cash and cash equivalents | -17,087 | 12,339 |
Cash and cash equivalents at beginning of period | 152,119 | 128,336 |
Cash and cash equivalents at end of period | $135,032 | $140,675 |
Basis_of_Presentation_and_Rece
Basis of Presentation and Recently Issued Accounting Pronouncements | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Accounting Policies [Abstract] | |||||
Basis of Presentation and Recently Issued Accounting Pronouncements | 1. Basis of Presentation and Recently Issued Accounting Pronouncements | ||||
We are a leading provider of information technology (“IT”) solutions to businesses and public sector clients in North America, Europe, the Middle East, Africa and Asia-Pacific. The Company is organized in the following three operating segments, which are primarily defined by their related geographies: | |||||
Operating Segment | Geography | ||||
North America | United States and Canada | ||||
EMEA | Europe, Middle East and Africa | ||||
APAC | Asia-Pacific | ||||
Currently, our offerings in North America and select countries in EMEA include IT hardware, software and services. Our offerings in the remainder of our EMEA segment and in APAC are almost entirely software and select software-related services. | |||||
In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly our financial position as of September 30, 2013, our results of operations for the three and nine months ended September 30, 2013 and 2012 and our cash flows for the nine months ended September 30, 2013 and 2012. The consolidated balance sheet as of December 31, 2012 was derived from the audited consolidated balance sheet at such date. The accompanying unaudited consolidated financial statements and notes have been prepared in accordance with the rules and regulations promulgated by the Securities and Exchange Commission and consequently do not include all of the disclosures normally required by United States generally accepted accounting principles (“GAAP”). | |||||
The results of operations for interim periods are not necessarily indicative of results for the full year, due in part to the seasonal nature of our business. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including the related notes thereto, in our Annual Report on Form 10-K for the year ended December 31, 2012. | |||||
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Additionally, these estimates and assumptions affect the reported amounts of net sales and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, we evaluate our estimates, including those related to sales recognition, anticipated achievement levels under partner funding programs, assumptions related to stock-based compensation valuation, allowances for doubtful accounts, valuation of inventories, loss contingencies, valuation allowances for deferred tax assets and impairment of long-lived assets, including purchased intangibles and goodwill, if indicators of potential impairment exist. | |||||
The consolidated financial statements include the accounts of Insight Enterprises, Inc. and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. References to “the Company,” “Insight,” “we,” “us,” “our” and other similar words refer to Insight Enterprises, Inc. and its consolidated subsidiaries, unless the context suggests otherwise. | |||||
Recently Issued Accounting Pronouncements | |||||
There have been no material changes or additions to the recently issued accounting pronouncements as previously reported in Note 1 to our Consolidated Financial Statements in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2012 that affect or may affect our financial statements. |
Net_Earnings_Per_Share_EPS
Net Earnings Per Share ("EPS") | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Net Earnings Per Share ("EPS") | 2 | Net Earnings Per Share (“EPS”) | |||||||||||||||
Basic EPS is computed by dividing net earnings available to common stockholders by the weighted average number of common shares outstanding during each period. Diluted EPS is computed on the basis of the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and restricted stock units. A reconciliation of the denominators of the basic and diluted EPS calculations follows (in thousands, except per share data): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator: | |||||||||||||||||
Net earnings | $ | 15,025 | $ | 19,354 | $ | 50,614 | $ | 71,996 | |||||||||
Denominator: | |||||||||||||||||
Weighted average shares used to compute basic EPS | 42,334 | 44,510 | 43,289 | 44,360 | |||||||||||||
Dilutive potential common shares due to dilutive options and restricted stock units, net of tax effect | 243 | 359 | 266 | 417 | |||||||||||||
Weighted average shares used to compute diluted EPS | 42,577 | 44,869 | 43,555 | 44,777 | |||||||||||||
Net earnings per share: | |||||||||||||||||
Basic | $ | 0.35 | $ | 0.43 | $ | 1.17 | $ | 1.62 | |||||||||
Diluted | $ | 0.35 | $ | 0.43 | $ | 1.16 | $ | 1.61 | |||||||||
For the three months ended September 30, 2013 and 2012 2,000 and 355,000, respectively, of our restricted stock units were not included in the diluted EPS calculations because their inclusion would have been anti-dilutive. For the nine months ended September 30, 2013 and 2012, the excluded restricted stock units were 235,000 and 325,000, respectively. For the three and nine months ended September 30, 2012, 0 and 50,000, respectively, of weighted average outstanding stock options were also not included in the diluted EPS calculation because the exercise prices of these options were greater than the average market price of our common stock during the respective periods. No options were outstanding during the 2013 periods. |
Debt_Capital_Lease_Obligation_
Debt, Capital Lease Obligation and Inventory Financing Facility | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Debt, Capital Lease Obligation and Inventory Financing Facility | 3. Debt, Capital Lease Obligation and Inventory Financing Facility | ||||||||
Debt | |||||||||
Our long-term debt consists of the following (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Senior revolving credit facility | $ | 10,000 | $ | 33,000 | |||||
Accounts receivable securitization financing facility | 78,000 | 47,000 | |||||||
Capital lease obligation | 719 | 602 | |||||||
Total | 88,719 | 80,602 | |||||||
Less: current portion of obligation under capital lease | (216 | ) | (602 | ) | |||||
Less: current portion of revolving credit facilities | — | — | |||||||
Long-term debt | $ | 88,503 | $ | 80,000 | |||||
Our senior revolving credit facility has a maximum borrowing capacity of $350,000,000. The senior revolving credit facility matures April 26, 2017, is guaranteed by the Company’s material domestic subsidiaries and is secured by a lien on substantially all of the Company’s and each guarantor’s assets. The balance of $10,000,000 outstanding at September 30, 2013 was borrowed under the prime rate option at 3.25% per annum. As of September 30, 2013, $340,000,000 was available under the senior revolving credit facility. | |||||||||
Our accounts receivable securitization financing facility (the “ABS facility”) has a maximum borrowing capacity of $200,000,000 and matures on April 24, 2015. While the ABS facility has a stated maximum amount, the actual availability under the ABS facility is limited by the quantity and quality of the underlying accounts receivable. Under the ABS facility, the floating interest rate applicable at September 30, 2013 was 1.09% per annum. As of September 30, 2013, qualified receivables were sufficient to permit access to the full $200,000,000 facility amount, of which $78,000,000 was outstanding. | |||||||||
Our senior revolving credit facility and ABS facility contain various covenants customary for transactions of this type, including limitations on the payment of dividends and the requirement that we comply with minimum fixed charge and minimum asset coverage ratio levels. If we fail to comply with these covenants, the lenders would be able to demand payment within a specified period of time. At September 30, 2013, we were in compliance with all such covenants. | |||||||||
Our consolidated debt balance that can be outstanding at the end of any fiscal quarter under our senior revolving credit facility and our ABS facility is limited by certain financial covenants, particularly a maximum leverage ratio. The maximum leverage ratio is calculated as aggregate debt outstanding divided by the sum of the Company’s trailing twelve month net earnings (loss) plus (i) interest expense, excluding non-cash imputed interest on our inventory financing facility, (ii) income tax expense (benefit), (iii) depreciation and amortization and (iv) non-cash stock-based compensation (“adjusted earnings”). The maximum leverage ratio permitted under the amended agreements is 2.75 times trailing twelve-month adjusted earnings. A significant drop in the Company’s adjusted earnings would limit the amount of indebtedness that could be outstanding at the end of any fiscal quarter to a level that would be below the Company’s consolidated maximum facility amounts. Based on the Company’s maximum leverage ratio as of September 30, 2013, the Company’s consolidated debt balance that could have been outstanding under our senior revolving credit facility and our ABS facility was reduced from the maximum borrowing capacity of $550,000,000 to $462,439,000, of which $88,000,000 was outstanding at September 30, 2013. | |||||||||
Capital Lease Obligation | |||||||||
In July 2013, the lease term for our previous capitalized lease for certain IT equipment ended, with the equipment being returned to the lessor under the original lease terms. A new capitalized lease with a 42-month term beginning July 1, 2013 was entered into for replacement equipment. The obligation under the capitalized lease is included in long-term debt in our Consolidated Balance Sheet as of September 30, 2013. The current and long-term portions of the obligation are included in the table above. The capital lease was a non-cash transaction and, accordingly, has been excluded from our Consolidated Statement of Cash Flows for the nine months ended September 30, 2013. | |||||||||
The value of the equipment held under the capitalized lease, $735,000, is included in property and equipment. These capital lease assets are amortized on a straight-line basis over the lease term. The related amortization expense is included in selling and administrative expenses in our Consolidated Statement of Operations for the three and nine months ended September 30, 2013. As of September 30, 2013, accumulated amortization on the capital lease assets was $53,000. | |||||||||
Inventory Financing Facility | |||||||||
Our inventory financing facility has a maximum borrowing capacity of $200,000,000 and matures on April 26, 2017. As of September 30, 2013 and December 31, 2012, $96,887,000 and $116,833,000, respectively, was included in accounts payable within our consolidated balance sheets related to our inventory financing facility. | |||||||||
Severance_and_Restructuring_Ac
Severance and Restructuring Activities | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Restructuring And Related Activities [Abstract] | |||||||||||||
Severance and Restructuring Activities | 4. Severance and Restructuring Activities | ||||||||||||
Severance Costs Expensed for 2013 Resource Actions | |||||||||||||
During the three months ended September 30, 2013, North America and EMEA recorded severance expense totaling $530,000 and $1,894,000, respectively, and during the nine months ended September 30, 2013, North America and EMEA recorded severance expense totaling $2,615,000 and $5,964,000, respectively, related to 2013 resource actions. The charges were associated with severance for the elimination of certain positions based on a re-alignment of roles and responsibilities. | |||||||||||||
The following table details the 2013 activity and the outstanding obligations related to the 2013 resource actions as of September 30, 2013 (in thousands): | |||||||||||||
North America | EMEA | Consolidated | |||||||||||
Severance costs | $ | 2,615 | $ | 5,964 | $ | 8,579 | |||||||
Foreign currency translation adjustments | — | 139 | 139 | ||||||||||
Cash payments | (1,817 | ) | (3,158 | ) | (4,975 | ) | |||||||
Balance at September 30, 2013 | $ | 798 | $ | 2,945 | $ | 3,743 | |||||||
The remaining outstanding obligations are expected to be paid during the next 12 months and are therefore included in accrued expenses and other current liabilities. | |||||||||||||
Severance Costs Expensed for 2012 Resource Actions | |||||||||||||
During the year ended December 31, 2012, North America and EMEA recorded severance expense totaling $3,022,000 and $3,973,000, respectively, relating to 2012 restructuring actions. The charges were associated with severance for the elimination of certain positions based on a re-alignment of roles and responsibilities. | |||||||||||||
The following table details the 2013 activity and the outstanding obligations related to the 2012 resource actions as of September 30, 2013 (in thousands): | |||||||||||||
North America | EMEA | Consolidated | |||||||||||
Balance at December 31, 2012 | $ | 1,249 | $ | 1,391 | $ | 2,640 | |||||||
Foreign currency translation adjustments | — | 10 | 10 | ||||||||||
Adjustments | (61 | ) | (191 | ) | (252 | ) | |||||||
Cash payments | (653 | ) | (668 | ) | (1,321 | ) | |||||||
Balance at September 30, 2013 | $ | 535 | $ | 542 | $ | 1,077 | |||||||
In North America and EMEA, adjustments were recorded as decreases to severance and restructuring expense and the related severance accrual during the nine months ended September 30, 2013 due to changes in estimates as cash payments were made. The remaining outstanding obligations are expected to be paid during the next 12 months and are therefore included in accrued expenses and other current liabilities. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||||||||||||||
Stock-Based Compensation | 5 | Stock-Based Compensation | |||||||||||||||
By operating segment, we recorded the following pre-tax amounts for stock-based compensation, net of estimated forfeitures, related to restricted stock units (“RSUs”) in selling and administrative expenses in our consolidated financial statements (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
North America | $ | 1,287 | $ | 1,475 | $ | 3,862 | $ | 4,739 | |||||||||
EMEA | (34 | ) | 480 | 864 | 1,537 | ||||||||||||
APAC | 63 | 63 | 185 | 191 | |||||||||||||
Total Consolidated | $ | 1,316 | $ | 2,018 | $ | 4,911 | $ | 6,467 | |||||||||
Stock-based compensation expense in EMEA for the three months ended September 30, 2013 was negative due to the reversal of previously recognized compensation cost on RSUs forfeited by the former president of EMEA upon his separation from the Company effective September 1, 2013, prior to the completion of the requisite service period. As of September 30, 2013, total compensation cost not yet recognized related to nonvested RSUs is $12,461,000, which is expected to be recognized over the next 1.40 years on a weighted-average basis. | |||||||||||||||||
The following table summarizes our RSU activity during the nine months ended September 30, 2013: | |||||||||||||||||
Number | Weighted Average | Fair Value | |||||||||||||||
Grant Date Fair Value | |||||||||||||||||
Nonvested at January 1, 2013 | 1,162,231 | $ | 17.66 | ||||||||||||||
Granted(a) | 542,780 | 20.37 | |||||||||||||||
Vested, including shares withheld to cover taxes | (526,951 | ) | 16.14 | $ | 10,594,529 | (b) | |||||||||||
Forfeited | (148,904 | ) | 19.13 | ||||||||||||||
Nonvested at September 30, 2013(d) | 1,029,156 | 19.65 | $ | 19,461,340 | (c) | ||||||||||||
Expected to vest | 789,156 | $ | 14,922,940 | (c) | |||||||||||||
(a) | Includes 158,942 RSUs subject to remaining performance conditions. The number of RSUs ultimately awarded under the performance-based RSUs varies based on whether we achieve certain financial results for 2013. | ||||||||||||||||
(b) | The fair value of vested RSUs represents the total pre-tax fair value, based on the closing stock price on the day of vesting, which would have been received by holders of RSUs had all such holders sold their underlying shares on that date. | ||||||||||||||||
(c) | The aggregate fair value represents the total pre-tax fair value, based on our closing stock price of $18.91 as of September 30, 2013, which would have been received by holders of RSUs had all such holders sold their underlying shares on that date. | ||||||||||||||||
(d) | Includes 139,439 nonvested RSUs subject to remaining performance conditions. During the nine months ended September 30, 2013, 19,503 RSUs subject to performance conditions were forfeited prior to the satisfaction of the performance condition and the completion of the related requisite service period. | ||||||||||||||||
During the nine months ended September 30, 2013 and 2012, the RSUs that vested for teammates in the United States were net-share settled such that we withheld shares with value equivalent to the teammates’ minimum statutory United States tax obligations for the applicable income and other employment taxes and remitted the corresponding cash amount to the appropriate taxing authorities. The total shares withheld during the nine months ended September 30, 2013 and 2012 of 136,709 and 143,421, respectively, were based on the value of the RSUs on their vesting date as determined by our closing stock price on such vesting date. For the nine months ended September 30, 2013 and 2012, total payments for the employees’ tax obligations to the taxing authorities were $2,756,000 and $3,046,000, respectively, and are reflected as a financing activity within the consolidated statements of cash flows. These net-share settlements had the economic effect of repurchases of common stock as they reduced the number of shares that would have otherwise been issued as a result of the vesting and did not represent a repurchase of shares or an expense to us. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes |
Our effective tax rate for the three and nine months ended September 30, 2013 was 37.8% and 37.2%, respectively. For the three and nine months ended September 30, 2013, our effective tax rate was higher than the United States federal statutory rate of 35.0% due primarily to an increase in the valuation allowance for deferred tax assets related to certain foreign operating losses and foreign tax credits and to state income taxes, net of federal benefit. These increases in the effective rate were partially offset by the effect of lower taxes on earnings in foreign jurisdictions. The nine month rate was slightly lower than the rate for the third quarter due to the recognition of certain tax benefits related to the re-measurement or settlement of specific uncertain tax positions during the first quarter of 2013. | |
Our effective tax rate for the three and nine months ended September 30, 2012 was 32.6% and 34.5%, respectively. For the three months ended September 30, 2012, our effective tax rate was lower than the United States federal statutory rate of 35.0% due primarily to the recognition of foreign tax credits and lower taxes on earnings in foreign jurisdictions, partially offset by increases in reserves for unrecognized tax benefits and by state income taxes, net of federal income tax benefit. For the nine months ended September 30, 2012, our effective tax rate was slightly lower than the United States federal statutory rate of 35.0% due primarily to lower taxes on earnings in foreign jurisdictions, the recognition of foreign tax credits, tax benefits related to the resolution of an audit in the United Kingdom and changes in estimates for certain U.S. deferred tax items, offset by increases in reserves for unrecognized tax benefits and by state income taxes, net of federal income tax benefit. | |
As of September 30, 2013 and December 31, 2012, we had approximately $5,093,000 and $7,201,000, respectively, of unrecognized tax benefits. Of these amounts, approximately $485,000 and $488,000, respectively, related to accrued interest. | |
Several of our subsidiaries are currently under audit for tax years 2006 through 2011. It is reasonably possible that the examination phase of these audits may conclude in the next 12 months and that the related unrecognized tax benefits for uncertain tax positions may change, potentially having a material effect on our effective tax rate. However, based on the status of the various examinations in multiple jurisdictions, an estimate of the range of reasonably possible outcomes cannot be made at this time. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |||||||||||||||||||
Derivative Financial Instruments | 7 | Derivative Financial Instruments | |||||||||||||||||
We use derivatives to partially offset our exposure to fluctuations in certain foreign currencies. We do not enter into derivatives for speculative or trading purposes. Derivatives are recorded at fair value on the balance sheet, and gains or losses resulting from changes in fair value of the derivative are recorded currently in income. We do not designate our foreign currency derivatives as hedges for hedge accounting, and our foreign currency derivative instruments are not subject to any master netting arrangements with our counterparties. | |||||||||||||||||||
The following table summarizes our derivative financial instruments as of September 30, 2013 and December 31, 2012 (in thousands): | |||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||
Balance Sheet Location | Asset | Liability | Asset | Liability | |||||||||||||||
Derivatives | Derivatives | Derivatives | Derivatives | ||||||||||||||||
Fair Value | Fair Value | Fair Value | Fair Value | ||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
Foreign exchange forward contracts | Other current assets | $ | — | $ | — | $ | 8 | $ | — | ||||||||||
Foreign exchange forward contracts | Accrued expenses and other | — | 8 | — | 25 | ||||||||||||||
current liabilities | |||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | — | $ | 8 | $ | 8 | $ | 25 | |||||||||||
The following table summarizes the effect of our derivative financial instruments on our results of operations during the three and nine months ended September 30, 2013 and 2012 (in thousands): | |||||||||||||||||||
Derivatives Not Designated as | Location of Loss (Gain) Recognized in | Amount of Loss (Gain) Recognized in | |||||||||||||||||
Hedging Instruments | Earnings on Derivatives | Earnings on Derivatives | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Foreign exchange forward contracts | Net foreign currency exchange loss (gain) | $ | 30 | $ | 188 | $ | (230 | ) | $ | 640 | |||||||||
Total | $ | 30 | $ | 188 | $ | (230 | ) | $ | 640 | ||||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Fair Value Measurements | 8 | Fair Value Measurements | |||||||||||||||||||
The following table summarizes the valuation of our financial instruments by the following three categories as of September 30, 2013 and December 31, 2012 (in thousands): | |||||||||||||||||||||
Level 1: Quoted market prices in active markets for identical assets or liabilities. | |||||||||||||||||||||
Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. | |||||||||||||||||||||
Level 3: Unobservable inputs that are not corroborated by market data. | |||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||
Balance Sheet Classification | Foreign | Non-qualified | Foreign | Non-qualified | |||||||||||||||||
Exchange | Deferred | Exchange | Deferred | ||||||||||||||||||
Derivatives | Compensation | Derivatives | Compensation | ||||||||||||||||||
Plan | Plan | ||||||||||||||||||||
Investments | Investments | ||||||||||||||||||||
Other current assets | Level 1 | $ | — | $ | — | $ | — | $ | 1,240 | ||||||||||||
Level 2 | — | — | 8 | — | |||||||||||||||||
Level 3 | — | — | — | — | |||||||||||||||||
$ | — | $ | — | $ | 8 | $ | 1,240 | ||||||||||||||
Accrued expenses and other current liabilities | Level 1 | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Level 2 | 8 | — | 25 | — | |||||||||||||||||
Level 3 | — | — | — | — | |||||||||||||||||
$ | 8 | $ | — | $ | 25 | $ | — | ||||||||||||||
Share_Repurchase_Program
Share Repurchase Program | 9 Months Ended | |
Sep. 30, 2013 | ||
Equity [Abstract] | ||
Share Repurchase Program | 9 | Share Repurchase Program |
On February 14, 2013, we announced that our Board of Directors had authorized the repurchase of up to $50,000,000 of our common stock. Prior to July 1, 2013, we purchased 2,646,722 shares of our common stock in open market transactions at an average price of $18.89 per share, which represented the full amount authorized under the repurchase program. All shares repurchased were retired. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies |
Contractual | |
In the ordinary course of business, we issue performance bonds to secure our performance under certain contracts or state tax requirements. As of September 30, 2013, we had approximately $3,090,000 of performance bonds outstanding. These bonds are issued on our behalf by a surety company on an unsecured basis; however, if the surety company is ever required to pay out under the bonds, we have contractually agreed to reimburse them. | |
Employment Contracts and Severance Plans | |
We have employment contracts with, and plans covering, certain officers and management teammates under which severance payments would become payable in the event of specified terminations without cause or terminations under certain circumstances after a change in control. In addition, vesting of stock-based compensation would accelerate following a change in control of the Company (as defined in the contracts and plans). If severance payments under the current employment agreements or plan payments were to become payable, the severance payments would generally range from three to twenty-four months of salary. | |
Indemnifications | |
From time to time, in the ordinary course of business, we enter into contractual arrangements under which we agree to indemnify either our clients or third-party service providers from certain losses incurred relating to services performed on our behalf or for losses arising from defined events, which may include litigation or claims relating to past performance. These arrangements include, but are not limited to, the indemnification of our clients for certain claims arising out of our performance under our sales contracts, the indemnification of our landlords for certain claims arising from our use of leased facilities and the indemnification of the lenders that provide our credit facilities for certain claims arising from their extension of credit to us. Such indemnification obligations may not be subject to maximum loss clauses. | |
Management believes that payments, if any, related to these indemnifications are not probable at September 30, 2013. Accordingly, we have not accrued any liabilities related to such indemnifications in our consolidated financial statements. | |
We have entered into separate indemnification agreements with our executive officers and with each of our directors. These agreements require us, among other requirements, to indemnify such officers and directors against expenses (including attorneys’ fees), judgments and settlements incurred by such individual in connection with any action arising out of such individual’s status or service as our executive officer or director (subject to exceptions such as where the individual failed to act in good faith or in a manner the individual reasonably believed to be in, or not opposed to, the best interests of the Company) and to advance expenses incurred by such individual with respect to which such individual may be entitled to indemnification by us. There are no pending legal proceedings that involve the indemnification of any of the Company’s directors or officers. | |
Contingencies Related to Third-Party Review | |
From time to time, we are subject to potential claims and assessments from third parties. We are also subject to various governmental, client and vendor audits. We continually assess whether or not such claims have merit and warrant accrual. Where appropriate, we accrue estimates of anticipated liabilities in the consolidated financial statements. Such estimates are subject to change and may affect our results of operations and our cash flows. | |
Legal Proceedings | |
We are party to various legal proceedings arising in the ordinary course of business, including preference payment claims asserted in client bankruptcy proceedings, indemnification claims, claims of alleged infringement of patents, trademarks, copyrights and other intellectual property rights, claims of alleged non-compliance with contract provisions and claims related to alleged violations of laws and regulations. Many of these proceeding are at preliminary stages, and many of these proceedings seek an indeterminate amount of damages. We regularly evaluate the status of the legal proceedings in which we are involved to assess whether a loss is probable or there is a reasonable possibility that a loss, or an additional loss, may have been incurred and determine if accruals are appropriate. If accruals are not appropriate, we further evaluate each legal proceeding to assess whether an estimate of possible loss or range of possible loss can be made for disclosure. Although litigation is inherently unpredictable, we believe that we have adequate provisions for any probable and estimable losses. It is possible, nevertheless, that our consolidated financial position, results of operations or liquidity could be materially and adversely affected in any particular period by the resolution of a legal proceeding. Legal expenses related to defense, negotiations, settlements, rulings and advice of outside legal counsel are expensed as incurred. | |
In August 2010, in connection with an investigation being conducted by the United States Department of Justice (the “DOJ”), our subsidiary, Calence, LLC, received a subpoena from the Office of the Inspector General of the Federal Communications Commission requesting documents and information related to the expenditure of funds under the E-Rate program, which provides schools and libraries with discounts to obtain affordable telecommunications and internet access and related hardware and software. We have completed our response to the subpoena. The basis of the investigation is a qui tam lawsuit filed in the United States District Court for the Southern District of Texas by a contractor who provided services to the former owners of Calence. The lawsuit, designated United States ex rel. Shupe v. Cisco Systems, Inc., Avnet, Inc. and Calence, LLC, was first filed in January 2010 and was unsealed in June 2012, and an amended complaint was filed and served in September 2012. The amended complaint alleged violations of the False Claims Act and sought various remedies including treble damages and civil penalties. In connection with the unsealing of the complaint, the DOJ filed a notice with the court declining to intervene in the qui tam action. However, that filing should not be viewed as a final assessment by the DOJ of the merits of this qui tam action. In November 2012, the Company filed a motion to dismiss the amended complaint, and that motion was granted in an order from the District Court in May 2013; however, motions to dismiss filed by the other defendants were denied in the May 2013 order. The Court gave the plaintiff leave to amend, and the plaintiff filed a second amended complaint in May 2013. In June 2013, the defendants filed a petition with the United States Court of Appeals for the Fifth Circuit for review of the May 2013 order, in July 2013 the Fifth Circuit granted the defendants’ petition to file an appeal, and the proceedings in the District Court are now stayed pending the resolution of the appeal. The claims in the second amended complaint are similar to the claims in the dismissed complaint. The Company disputes the claims and intends to defend the lawsuit vigorously. Based on the limited information currently available, the Company is not able to estimate what the possible loss or range of loss might be, if any. The Company is pursuing its rights under the Calence acquisition agreements to indemnification for losses that may arise out of or result from this matter, including our fees and expenses for responding to the subpoena and defending the lawsuit. We have recovered a substantial portion of our fees to date and continue to pursue our indemnification claims. | |
Aside from the matter discussed above, the Company is not involved in any pending or threatened legal proceedings that it believes could reasonably be expected to have a material adverse effect on its financial condition, results of operations or liquidity. |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||
Segment Information | 11. Segment Information | ||||||||||||||||||||||||
We operate in three reportable geographic operating segments: North America; EMEA; and APAC. Currently, our offerings in North America and select countries in EMEA include IT hardware, software and services. Our offerings in the remainder of our EMEA segment and in APAC are almost entirely software and select software-related services. Net sales by product or service type for North America, EMEA and APAC were as follows for the three and nine months ended September 30, 2013 and 2012 (in thousands): | |||||||||||||||||||||||||
North America | EMEA | APAC | |||||||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||||||||
Sales Mix | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Hardware | $ | 546,192 | $ | 574,538 | $ | 120,404 | $ | 125,890 | $ | 1,304 | $ | 880 | |||||||||||||
Software | 259,862 | 239,476 | 135,651 | 145,103 | 26,881 | 33,197 | |||||||||||||||||||
Services | 51,881 | 54,751 | 7,496 | 5,628 | 1,349 | 1,946 | |||||||||||||||||||
$ | 857,935 | $ | 868,765 | $ | 263,551 | $ | 276,621 | $ | 29,534 | $ | 36,023 | ||||||||||||||
North America | EMEA | APAC | |||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||||||||
Sales Mix | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Hardware | $ | 1,548,326 | $ | 1,697,229 | $ | 370,906 | $ | 410,961 | $ | 4,133 | $ | 3,567 | |||||||||||||
Software | 819,266 | 857,271 | 674,513 | 654,943 | 140,553 | 142,838 | |||||||||||||||||||
Services | 160,410 | 163,562 | 26,159 | 19,265 | 4,923 | 5,130 | |||||||||||||||||||
$ | 2,528,002 | $ | 2,718,062 | $ | 1,071,578 | $ | 1,085,169 | $ | 149,609 | $ | 151,535 | ||||||||||||||
All significant intercompany transactions are eliminated upon consolidation, and there are no differences between the accounting policies used to measure profit and loss for our segments and on a consolidated basis. Net sales are defined as net sales to external clients. None of our clients exceeded 10% of consolidated net sales for the three or nine months ended September 30, 2013. | |||||||||||||||||||||||||
A portion of our operating segments’ selling and administrative expenses arise from shared services and infrastructure that we provide to them in order to realize economies of scale. These expenses, collectively identified as corporate charges, include senior management expenses, internal audit, legal, tax, insurance services, treasury and other corporate infrastructure expenses. Charges are allocated to our operating segments, and the allocations have been determined on a basis that we considered to be a reasonable reflection of the utilization of services provided to or benefits received by the operating segments. | |||||||||||||||||||||||||
The tables below present information about our reportable operating segments as of and for the three months ended September 30, 2013 and 2012 (in thousands): | |||||||||||||||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||||||||
North America | EMEA | APAC | Consolidated | ||||||||||||||||||||||
Net sales | $ | 857,935 | $ | 263,551 | $ | 29,534 | $ | 1,151,020 | |||||||||||||||||
Costs of goods sold | 734,991 | 224,208 | 23,153 | 982,352 | |||||||||||||||||||||
Gross profit | 122,944 | 39,343 | 6,381 | 168,668 | |||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||
Selling and administrative expenses | 93,082 | 41,232 | 5,651 | 139,965 | |||||||||||||||||||||
Severance and restructuring expenses | 530 | 1,894 | — | 2,424 | |||||||||||||||||||||
Earnings (loss) from operations | $ | 29,332 | $ | (3,783 | ) | $ | 730 | $ | 26,279 | ||||||||||||||||
Total assets at period end | $ | 1,640,205 | $ | 391,531 | $ | 72,384 | $ | 2,104,120 | * | ||||||||||||||||
* | Consolidated total assets do not reflect the net effect of corporate assets and intercompany eliminations of $484,424,000. | ||||||||||||||||||||||||
Three Months Ended September 30, 2012 | |||||||||||||||||||||||||
North America | EMEA | APAC | Consolidated | ||||||||||||||||||||||
Net sales | $ | 868,765 | $ | 276,621 | $ | 36,023 | $ | 1,181,409 | |||||||||||||||||
Costs of goods sold | 751,790 | 233,313 | 28,681 | 1,013,784 | |||||||||||||||||||||
Gross profit | 116,975 | 43,308 | 7,342 | 167,625 | |||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||
Selling and administrative expenses | 87,779 | 42,088 | 6,392 | 136,259 | |||||||||||||||||||||
Severance and restructuring expenses | 916 | (211 | ) | — | 705 | ||||||||||||||||||||
Earnings from operations | $ | 28,280 | $ | 1,431 | $ | 950 | $ | 30,661 | |||||||||||||||||
Total assets at period end | $ | 1,579,440 | $ | 394,330 | $ | 65,665 | $ | 2,039,435 | ** | ||||||||||||||||
** | Consolidated total assets do not reflect the net effect of corporate assets and intercompany eliminations of $447,588,000. | ||||||||||||||||||||||||
The tables below present information about our reportable operating segments as of and for the nine months ended September 30, 2013 and 2012 (in thousands): | |||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||
North America | EMEA | APAC | Consolidated | ||||||||||||||||||||||
Net sales | $ | 2,528,002 | $ | 1,071,578 | $ | 149,609 | $ | 3,749,189 | |||||||||||||||||
Costs of goods sold | 2,177,867 | 929,387 | 124,203 | 3,231,457 | |||||||||||||||||||||
Gross profit | 350,135 | 142,191 | 25,406 | 517,732 | |||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||
Selling and administrative expenses | 272,573 | 133,297 | 18,241 | 424,111 | |||||||||||||||||||||
Severance and restructuring expenses | 2,554 | 5,773 | — | 8,327 | |||||||||||||||||||||
Earnings from operations | $ | 75,008 | $ | 3,121 | $ | 7,165 | $ | 85,294 | |||||||||||||||||
Total assets at period end | $ | 1,640,205 | $ | 391,531 | $ | 72,384 | $ | 2,104,120 | * | ||||||||||||||||
* | Consolidated total assets do not reflect the net effect of corporate assets and intercompany eliminations of $484,424,000. | ||||||||||||||||||||||||
Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||
North America | EMEA | APAC | Consolidated | ||||||||||||||||||||||
Net sales | $ | 2,718,062 | $ | 1,085,169 | $ | 151,535 | $ | 3,954,766 | |||||||||||||||||
Costs of goods sold | 2,357,094 | 932,198 | 126,191 | 3,415,483 | |||||||||||||||||||||
Gross profit | 360,968 | 152,971 | 25,344 | 539,283 | |||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||
Selling and administrative expenses | 270,105 | 134,412 | 18,737 | 423,254 | |||||||||||||||||||||
Severance and restructuring expenses | 2,299 | 2,157 | — | 4,456 | |||||||||||||||||||||
Earnings from operations | $ | 88,564 | $ | 16,402 | $ | 6,607 | $ | 111,573 | |||||||||||||||||
Total assets at period end | $ | 1,579,440 | $ | 394,330 | $ | 65,665 | $ | 2,039,435 | ** | ||||||||||||||||
** | Consolidated total assets do not reflect the net effect of corporate assets and intercompany eliminations of $447,588,000. | ||||||||||||||||||||||||
We recorded the following pre-tax amounts, by operating segment, for depreciation and amortization, in the accompanying consolidated financial statements (in thousands): | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
North America | $ | 8,037 | $ | 7,944 | $ | 24,344 | $ | 24,201 | |||||||||||||||||
EMEA | 2,213 | 1,952 | 6,334 | 5,757 | |||||||||||||||||||||
APAC | 217 | 242 | 659 | 677 | |||||||||||||||||||||
Total | $ | 10,467 | $ | 10,138 | $ | 31,337 | $ | 30,635 | |||||||||||||||||
Acquisition
Acquisition | 9 Months Ended | |
Sep. 30, 2013 | ||
Business Combinations [Abstract] | ||
Acquisition | 12 | Acquisition |
Effective February 1, 2012, we acquired Inmac, a broad portfolio business-to-business hardware reseller based in Frankfurt, Germany and Amsterdam, Netherlands servicing clients in Western Europe, for a cash purchase price, net of cash acquired, of $3,831,000. Our EMEA operating segment recognized a non-operating gain on bargain purchase of $2,022,000 during the nine months ended September 30, 2012 as the fair value of the net assets acquired exceeded the purchase price. |
Basis_of_Presentation_and_Rece1
Basis of Presentation and Recently Issued Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements |
There have been no material changes or additions to the recently issued accounting pronouncements as previously reported in Note 1 to our Consolidated Financial Statements in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2012 that affect or may affect our financial statements. |
Net_Earnings_Per_Share_EPS_Tab
Net Earnings Per Share ("EPS") (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Reconciliation of Denominators of Basic and Diluted EPS Calculations | shares include outstanding stock options and restricted stock units. A reconciliation of the denominators of the basic and diluted EPS calculations follows (in thousands, except per share data): | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator: | |||||||||||||||||
Net earnings | $ | 15,025 | $ | 19,354 | $ | 50,614 | $ | 71,996 | |||||||||
Denominator: | |||||||||||||||||
Weighted average shares used to compute basic EPS | 42,334 | 44,510 | 43,289 | 44,360 | |||||||||||||
Dilutive potential common shares due to dilutive options and restricted stock units, net of tax effect | 243 | 359 | 266 | 417 | |||||||||||||
Weighted average shares used to compute diluted EPS | 42,577 | 44,869 | 43,555 | 44,777 | |||||||||||||
Net earnings per share: | |||||||||||||||||
Basic | $ | 0.35 | $ | 0.43 | $ | 1.17 | $ | 1.62 | |||||||||
Diluted | $ | 0.35 | $ | 0.43 | $ | 1.16 | $ | 1.61 | |||||||||
Debt_Capital_Lease_Obligation_1
Debt, Capital Lease Obligation and Inventory Financing Facility (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Long-Term Debt | Our long-term debt consists of the following (in thousands): | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Senior revolving credit facility | $ | 10,000 | $ | 33,000 | |||||
Accounts receivable securitization financing facility | 78,000 | 47,000 | |||||||
Capital lease obligation | 719 | 602 | |||||||
Total | 88,719 | 80,602 | |||||||
Less: current portion of obligation under capital lease | (216 | ) | (602 | ) | |||||
Less: current portion of revolving credit facilities | — | — | |||||||
Long-term debt | $ | 88,503 | $ | 80,000 | |||||
Severance_and_Restructuring_Ac1
Severance and Restructuring Activities (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
2013 Resource Actions [Member] | |||||||||||||
Activity and Outstanding Obligation Related to Resource Actions | The following table details the 2013 activity and the outstanding obligations related to the 2013 resource actions as of September 30, 2013 (in thousands): | ||||||||||||
North America | EMEA | Consolidated | |||||||||||
Severance costs | $ | 2,615 | $ | 5,964 | $ | 8,579 | |||||||
Foreign currency translation adjustments | — | 139 | 139 | ||||||||||
Cash payments | (1,817 | ) | (3,158 | ) | (4,975 | ) | |||||||
Balance at September 30, 2013 | $ | 798 | $ | 2,945 | $ | 3,743 | |||||||
2012 Resource Actions [Member] | |||||||||||||
Activity and Outstanding Obligation Related to Resource Actions | The following table details the 2013 activity and the outstanding obligations related to the 2012 resource actions as of September 30, 2013 (in thousands): | ||||||||||||
North America | EMEA | Consolidated | |||||||||||
Balance at December 31, 2012 | $ | 1,249 | $ | 1,391 | $ | 2,640 | |||||||
Foreign currency translation adjustments | — | 10 | 10 | ||||||||||
Adjustments | (61 | ) | (191 | ) | (252 | ) | |||||||
Cash payments | (653 | ) | (668 | ) | (1,321 | ) | |||||||
Balance at September 30, 2013 | $ | 535 | $ | 542 | $ | 1,077 | |||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||||||||||||||
Pre-tax Amounts by Operating Segment for Stock-Based Compensation | By operating segment, we recorded the following pre-tax amounts for stock-based compensation, net of estimated forfeitures, related to restricted stock units (“RSUs”) in selling and administrative expenses in our consolidated financial statements (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
North America | $ | 1,287 | $ | 1,475 | $ | 3,862 | $ | 4,739 | |||||||||
EMEA | (34 | ) | 480 | 864 | 1,537 | ||||||||||||
APAC | 63 | 63 | 185 | 191 | |||||||||||||
Total Consolidated | $ | 1,316 | $ | 2,018 | $ | 4,911 | $ | 6,467 | |||||||||
Summary of Restricted Stock Units | The following table summarizes our RSU activity during the nine months ended September 30, 2013: | ||||||||||||||||
Number | Weighted Average | Fair Value | |||||||||||||||
Grant Date Fair Value | |||||||||||||||||
Nonvested at January 1, 2013 | 1,162,231 | $ | 17.66 | ||||||||||||||
Granted(a) | 542,780 | 20.37 | |||||||||||||||
Vested, including shares withheld to cover taxes | (526,951 | ) | 16.14 | $ | 10,594,529 | (b) | |||||||||||
Forfeited | (148,904 | ) | 19.13 | ||||||||||||||
Nonvested at September 30, 2013(d) | 1,029,156 | 19.65 | $ | 19,461,340 | (c) | ||||||||||||
Expected to vest | 789,156 | $ | 14,922,940 | (c) | |||||||||||||
(a) | Includes 158,942 RSUs subject to remaining performance conditions. The number of RSUs ultimately awarded under the performance-based RSUs varies based on whether we achieve certain financial results for 2013. | ||||||||||||||||
(b) | The fair value of vested RSUs represents the total pre-tax fair value, based on the closing stock price on the day of vesting, which would have been received by holders of RSUs had all such holders sold their underlying shares on that date. | ||||||||||||||||
(c) | The aggregate fair value represents the total pre-tax fair value, based on our closing stock price of $18.91 as of September 30, 2013, which would have been received by holders of RSUs had all such holders sold their underlying shares on that date. | ||||||||||||||||
(d) | Includes 139,439 nonvested RSUs subject to remaining performance conditions. During the nine months ended September 30, 2013, 19,503 RSUs subject to performance conditions were forfeited prior to the satisfaction of the performance condition and the completion of the related requisite service period. |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |||||||||||||||||||
Summary of Derivative Financial Instruments | The following table summarizes our derivative financial instruments as of September 30, 2013 and December 31, 2012 (in thousands): | ||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||
Balance Sheet Location | Asset | Liability | Asset | Liability | |||||||||||||||
Derivatives | Derivatives | Derivatives | Derivatives | ||||||||||||||||
Fair Value | Fair Value | Fair Value | Fair Value | ||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
Foreign exchange forward contracts | Other current assets | $ | — | $ | — | $ | 8 | $ | — | ||||||||||
Foreign exchange forward contracts | Accrued expenses and other | — | 8 | — | 25 | ||||||||||||||
current liabilities | |||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | — | $ | 8 | $ | 8 | $ | 25 | |||||||||||
Summary of Effect of Derivative Financial Instruments on Our Results of Operations | The following table summarizes the effect of our derivative financial instruments on our results of operations during the three and nine months ended September 30, 2013 and 2012 (in thousands): | ||||||||||||||||||
Derivatives Not Designated as | Location of Loss (Gain) Recognized in | Amount of Loss (Gain) Recognized in | |||||||||||||||||
Hedging Instruments | Earnings on Derivatives | Earnings on Derivatives | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Foreign exchange forward contracts | Net foreign currency exchange loss (gain) | $ | 30 | $ | 188 | $ | (230 | ) | $ | 640 | |||||||||
Total | $ | 30 | $ | 188 | $ | (230 | ) | $ | 640 | ||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Summary of Valuation of Financial Instruments | The following table summarizes the valuation of our financial instruments by the following three categories as of September 30, 2013 and December 31, 2012 (in thousands): | ||||||||||||||||||||
Level 1: Quoted market prices in active markets for identical assets or liabilities. | |||||||||||||||||||||
Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. | |||||||||||||||||||||
Level 3: Unobservable inputs that are not corroborated by market data. | |||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||
Balance Sheet Classification | Foreign | Non-qualified | Foreign | Non-qualified | |||||||||||||||||
Exchange | Deferred | Exchange | Deferred | ||||||||||||||||||
Derivatives | Compensation | Derivatives | Compensation | ||||||||||||||||||
Plan | Plan | ||||||||||||||||||||
Investments | Investments | ||||||||||||||||||||
Other current assets | Level 1 | $ | — | $ | — | $ | — | $ | 1,240 | ||||||||||||
Level 2 | — | — | 8 | — | |||||||||||||||||
Level 3 | — | — | — | — | |||||||||||||||||
$ | — | $ | — | $ | 8 | $ | 1,240 | ||||||||||||||
Accrued expenses and other current liabilities | Level 1 | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Level 2 | 8 | — | 25 | — | |||||||||||||||||
Level 3 | — | — | — | — | |||||||||||||||||
$ | 8 | $ | — | $ | 25 | $ | — | ||||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||
Net Sales by Product or Service Type for North America, EMEA and APAC | Net sales by product or service type for North America, EMEA and APAC were as follows for the three and nine months ended September 30, 2013 and 2012 (in thousands): | ||||||||||||||||||||||||
North America | EMEA | APAC | |||||||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||||||||
Sales Mix | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Hardware | $ | 546,192 | $ | 574,538 | $ | 120,404 | $ | 125,890 | $ | 1,304 | $ | 880 | |||||||||||||
Software | 259,862 | 239,476 | 135,651 | 145,103 | 26,881 | 33,197 | |||||||||||||||||||
Services | 51,881 | 54,751 | 7,496 | 5,628 | 1,349 | 1,946 | |||||||||||||||||||
$ | 857,935 | $ | 868,765 | $ | 263,551 | $ | 276,621 | $ | 29,534 | $ | 36,023 | ||||||||||||||
North America | EMEA | APAC | |||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||||||||
Sales Mix | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Hardware | $ | 1,548,326 | $ | 1,697,229 | $ | 370,906 | $ | 410,961 | $ | 4,133 | $ | 3,567 | |||||||||||||
Software | 819,266 | 857,271 | 674,513 | 654,943 | 140,553 | 142,838 | |||||||||||||||||||
Services | 160,410 | 163,562 | 26,159 | 19,265 | 4,923 | 5,130 | |||||||||||||||||||
$ | 2,528,002 | $ | 2,718,062 | $ | 1,071,578 | $ | 1,085,169 | $ | 149,609 | $ | 151,535 | ||||||||||||||
Financial Information about Reportable Operating Segments | The tables below present information about our reportable operating segments as of and for the three months ended September 30, 2013 and 2012 (in thousands): | ||||||||||||||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||||||||
North America | EMEA | APAC | Consolidated | ||||||||||||||||||||||
Net sales | $ | 857,935 | $ | 263,551 | $ | 29,534 | $ | 1,151,020 | |||||||||||||||||
Costs of goods sold | 734,991 | 224,208 | 23,153 | 982,352 | |||||||||||||||||||||
Gross profit | 122,944 | 39,343 | 6,381 | 168,668 | |||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||
Selling and administrative expenses | 93,082 | 41,232 | 5,651 | 139,965 | |||||||||||||||||||||
Severance and restructuring expenses | 530 | 1,894 | — | 2,424 | |||||||||||||||||||||
Earnings (loss) from operations | $ | 29,332 | $ | (3,783 | ) | $ | 730 | $ | 26,279 | ||||||||||||||||
Total assets at period end | $ | 1,640,205 | $ | 391,531 | $ | 72,384 | $ | 2,104,120 | * | ||||||||||||||||
* | Consolidated total assets do not reflect the net effect of corporate assets and intercompany eliminations of $484,424,000. | ||||||||||||||||||||||||
Three Months Ended September 30, 2012 | |||||||||||||||||||||||||
North America | EMEA | APAC | Consolidated | ||||||||||||||||||||||
Net sales | $ | 868,765 | $ | 276,621 | $ | 36,023 | $ | 1,181,409 | |||||||||||||||||
Costs of goods sold | 751,790 | 233,313 | 28,681 | 1,013,784 | |||||||||||||||||||||
Gross profit | 116,975 | 43,308 | 7,342 | 167,625 | |||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||
Selling and administrative expenses | 87,779 | 42,088 | 6,392 | 136,259 | |||||||||||||||||||||
Severance and restructuring expenses | 916 | (211 | ) | — | 705 | ||||||||||||||||||||
Earnings from operations | $ | 28,280 | $ | 1,431 | $ | 950 | $ | 30,661 | |||||||||||||||||
Total assets at period end | $ | 1,579,440 | $ | 394,330 | $ | 65,665 | $ | 2,039,435 | ** | ||||||||||||||||
** | Consolidated total assets do not reflect the net effect of corporate assets and intercompany eliminations of $447,588,000. | ||||||||||||||||||||||||
The tables below present information about our reportable operating segments as of and for the nine months ended September 30, 2013 and 2012 (in thousands): | |||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||
North America | EMEA | APAC | Consolidated | ||||||||||||||||||||||
Net sales | $ | 2,528,002 | $ | 1,071,578 | $ | 149,609 | $ | 3,749,189 | |||||||||||||||||
Costs of goods sold | 2,177,867 | 929,387 | 124,203 | 3,231,457 | |||||||||||||||||||||
Gross profit | 350,135 | 142,191 | 25,406 | 517,732 | |||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||
Selling and administrative expenses | 272,573 | 133,297 | 18,241 | 424,111 | |||||||||||||||||||||
Severance and restructuring expenses | 2,554 | 5,773 | — | 8,327 | |||||||||||||||||||||
Earnings from operations | $ | 75,008 | $ | 3,121 | $ | 7,165 | $ | 85,294 | |||||||||||||||||
Total assets at period end | $ | 1,640,205 | $ | 391,531 | $ | 72,384 | $ | 2,104,120 | * | ||||||||||||||||
* | Consolidated total assets do not reflect the net effect of corporate assets and intercompany eliminations of $484,424,000. | ||||||||||||||||||||||||
Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||
North America | EMEA | APAC | Consolidated | ||||||||||||||||||||||
Net sales | $ | 2,718,062 | $ | 1,085,169 | $ | 151,535 | $ | 3,954,766 | |||||||||||||||||
Costs of goods sold | 2,357,094 | 932,198 | 126,191 | 3,415,483 | |||||||||||||||||||||
Gross profit | 360,968 | 152,971 | 25,344 | 539,283 | |||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||
Selling and administrative expenses | 270,105 | 134,412 | 18,737 | 423,254 | |||||||||||||||||||||
Severance and restructuring expenses | 2,299 | 2,157 | — | 4,456 | |||||||||||||||||||||
Earnings from operations | $ | 88,564 | $ | 16,402 | $ | 6,607 | $ | 111,573 | |||||||||||||||||
Total assets at period end | $ | 1,579,440 | $ | 394,330 | $ | 65,665 | $ | 2,039,435 | ** | ||||||||||||||||
** | Consolidated total assets do not reflect the net effect of corporate assets and intercompany eliminations of $447,588,000. | ||||||||||||||||||||||||
Pre-Tax Depreciation and Amortization for Operating Segment | We recorded the following pre-tax amounts, by operating segment, for depreciation and amortization, in the accompanying consolidated financial statements (in thousands): | ||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
North America | $ | 8,037 | $ | 7,944 | $ | 24,344 | $ | 24,201 | |||||||||||||||||
EMEA | 2,213 | 1,952 | 6,334 | 5,757 | |||||||||||||||||||||
APAC | 217 | 242 | 659 | 677 | |||||||||||||||||||||
Total | $ | 10,467 | $ | 10,138 | $ | 31,337 | $ | 30,635 | |||||||||||||||||
Basis_of_Presentation_and_Rece2
Basis of Presentation and Recently Issued Accounting Pronouncements - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Segment | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of operating segments | 3 |
Net_Earnings_Per_Share_EPS_Rec
Net Earnings Per Share ("EPS") - Reconciliation of Denominators of Basic and Diluted EPS Calculations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Numerator: | ||||
Net earnings | $15,025 | $19,354 | $50,614 | $71,996 |
Denominator: | ||||
Weighted average shares used to compute basic EPS | 42,334 | 44,510 | 43,289 | 44,360 |
Dilutive potential common shares due to dilutive options and restricted stock units, net of tax effect | 243 | 359 | 266 | 417 |
Weighted average shares used to compute diluted EPS | 42,577 | 44,869 | 43,555 | 44,777 |
Net earnings per share: | ||||
Basic | $0.35 | $0.43 | $1.17 | $1.62 |
Diluted | $0.35 | $0.43 | $1.16 | $1.61 |
Net_Earnings_Per_Share_EPS_Add
Net Earnings Per Share ("EPS") - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options outstanding | 0 | 0 | ||
Restricted Stock Units (RSUs) [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted-average outstanding restricted stock units and stock options excluded in the diluted EPS calculations | 2,000 | 355,000 | 235,000 | 325,000 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted-average outstanding restricted stock units and stock options excluded in the diluted EPS calculations | 0 | 50,000 |
Debt_Capital_Lease_Obligation_2
Debt, Capital Lease Obligation and Inventory Financing Facility - Long-Term Debt (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
Senior revolving credit facility | $10,000 | $33,000 |
Accounts receivable securitization financing facility | 78,000 | 47,000 |
Capital lease obligation | 719 | 602 |
Total | 88,719 | 80,602 |
Less: current portion of obligation under capital lease | -216 | -602 |
Less: current portion of revolving credit facilities | ||
Long-term debt | $88,503 | $80,000 |
Debt_Capital_Lease_Obligation_3
Debt, Capital Lease Obligation and Inventory Financing Facility - Additional Information (Detail) (USD $) | 9 Months Ended | 9 Months Ended | 3 Months Ended | ||
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Capital Lease Obligation [Member] | ABS Facility [Member] | Senior Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $200,000,000 | $350,000,000 | |||
Outstanding borrowing | 10,000,000 | 33,000,000 | 10,000,000 | ||
Prime rate | 1.09% | 3.25% | |||
Borrowing capacity available | 340,000,000 | ||||
Maturity date | 24-Apr-15 | 26-Apr-17 | |||
Amount of facility permitted by qualified receivables | 200,000,000 | ||||
Accounts receivable securitization financing facility | 78,000,000 | 47,000,000 | 78,000,000 | ||
Covenants compliance | At September 30, 2013, we were in compliance with all such covenants. | ||||
Maximum leverage ratio time adjusted earnings | 2.75 | ||||
Maximum combined borrowing capacity under senior revolving credit facility and ABS facility, accessible | 462,439,000 | ||||
Maximum combined borrowing capacity under senior revolving credit facility and ABS facility | 550,000,000 | ||||
Long-term debt | 88,000,000 | ||||
Capitalized lease term | 42 months | ||||
Value of equipment subject to capital leases and included in property plant and equipment | 735,000 | ||||
Accumulated Depreciation on the Capital lease | 53,000 | ||||
Inventory financing facility maximum borrowing capacity | 200,000,000 | ||||
Inventory financing facility maturity date | 26-Apr-17 | ||||
Inventory financing facility | $96,887,000 | $116,833,000 |
Severance_and_Restructuring_Ac2
Severance and Restructuring Activities - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | |
2013 Resource Actions [Member] | North America [Member] | North America [Member] | North America [Member] | EMEA [Member] | EMEA [Member] | EMEA [Member] | |
2012 Resource Actions [Member] | 2013 Resource Actions [Member] | 2013 Resource Actions [Member] | 2012 Resource Actions [Member] | 2013 Resource Actions [Member] | 2013 Resource Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | |||||||
Severance expense | $8,579,000 | $3,022,000 | $530,000 | $2,615,000 | $3,973,000 | $1,894,000 | $5,964,000 |
Severance_and_Restructuring_Ac3
Severance and Restructuring Activities - 2013 Activity and Outstanding Obligation Related to Resource Actions (Detail) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
2013 Resource Actions [Member] | 2012 Resource Actions [Member] | North America [Member] | North America [Member] | North America [Member] | North America [Member] | EMEA [Member] | EMEA [Member] | EMEA [Member] | EMEA [Member] | |
2013 Resource Actions [Member] | 2013 Resource Actions [Member] | 2012 Resource Actions [Member] | 2012 Resource Actions [Member] | 2013 Resource Actions [Member] | 2013 Resource Actions [Member] | 2012 Resource Actions [Member] | 2012 Resource Actions [Member] | |||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Beginning Balance | $2,640,000 | $1,249,000 | $1,391,000 | |||||||
Severance costs | 8,579,000 | 530,000 | 2,615,000 | 3,022,000 | 1,894,000 | 5,964,000 | 3,973,000 | |||
Foreign currency translation adjustments | 139,000 | 10,000 | 139,000 | 10,000 | ||||||
Adjustments | -252,000 | -61,000 | -191,000 | |||||||
Cash payments | -4,975,000 | -1,321,000 | -1,817,000 | -653,000 | -3,158,000 | -668,000 | ||||
Ending Balance | $3,743,000 | $1,077,000 | $798,000 | $798,000 | $535,000 | $1,249,000 | $2,945,000 | $2,945,000 | $542,000 | $1,391,000 |
StockBased_Compensation_Pretax
Stock-Based Compensation - Pre-tax Amounts by Operating Segment for Stock-Based Compensation (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense related to restricted stock units (RSUs) | $1,316 | $2,018 | $4,911 | $6,467 |
North America [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense related to restricted stock units (RSUs) | 1,287 | 1,475 | 3,862 | 4,739 |
EMEA [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense related to restricted stock units (RSUs) | -34 | 480 | 864 | 1,537 |
APAC [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense related to restricted stock units (RSUs) | $63 | $63 | $185 | $191 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Payments for employees' tax obligations to taxing authorities | $2,756,000 | $3,046,000 |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total compensation cost related to RSU's not yet recognized | 12,461,000 | |
Weighted-average number of years for recognition of outstanding nonvested RSUs | 1 year 4 months 24 days | |
Shares withheld to cover taxes | 136,709 | 143,421 |
Payments for employees' tax obligations to taxing authorities | $2,756,000 | $3,046,000 |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of Restricted Stock Units (Detail) (Restricted Stock Units (RSUs) [Member], USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested Number, Beginning balance | 1,162,231 |
Number, Granted | 542,780 |
Number, Vested, including shares withheld to cover taxes | -526,951 |
Number, Forfeited | -148,904 |
Nonvested Number, Ending balance | 1,029,156 |
Number, Expected to vest | 789,156 |
Nonvested Weighted Average Grant Date Fair Value, Beginning balance | $17.66 |
Weighted Average Grant Date Fair Value, Granted | $20.37 |
Weighted Average Grant Date Fair Value, Vested, including shares withheld to cover taxes | $16.14 |
Weighted Average Grant Date Fair Value, Forfeited | $19.13 |
Nonvested Weighted Average Grant Date Fair Value, Ending balance | $19.65 |
Fair Value, Vested, including shares withheld to cover taxes | $10,594,529 |
Fair Value, Nonvested at the ending of period | 19,461,340 |
Fair Value, Expected to vest | $14,922,940 |
StockBased_Compensation_Summar1
Stock-Based Compensation - Summary of Restricted Stock Units (Parenthetical) (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total RSUs | 542,780 | |
Closing stock price | $18.91 | |
Nonvested RSU | 1,029,156 | 1,162,231 |
RSU forfeited | 148,904 | |
Performance Based Restricted Stock Unit [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total RSUs | 158,942 | |
Performance Conditions [Member] | Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Nonvested RSU | 139,439 | |
RSU forfeited | 19,503 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||||
Effective tax rate | 37.80% | 32.60% | 37.20% | 34.50% | |
United States federal statutory income tax rate | 35.00% | 35.00% | 35.00% | 35.00% | |
Unrecognized tax benefits | $5,093,000 | $5,093,000 | $7,201,000 | ||
Unrecognized tax benefits, interest on income taxes accrued | $485,000 | $485,000 | $488,000 | ||
Subsidiaries under audit for tax years | 2006 through 2011 | ||||
Period during which examination phase of tax audits may conclude | Next 12 months |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Summary of Derivative Financial Instruments (Detail) (Not Designated as Hedging Instruments [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | $8 | |
Liability Derivatives Fair Value | 8 | 25 |
Foreign Exchange Forward Contracts [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 8 | |
Liability Derivatives Fair Value | ||
Foreign Exchange Forward Contracts [Member] | Accrued Expenses and Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | ||
Liability Derivatives Fair Value | $8 | $25 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments - Summary of Effect of Derivative Financial Instruments on Our Results of Operations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Derivative Instruments, (Gain) Loss | ||||
Amount of (Gain) Loss Recognized in Earnings on Derivatives | $30 | $188 | ($230) | $640 |
Foreign Exchange Forward Contracts [Member] | ||||
Derivative Instruments, (Gain) Loss | ||||
Amount of (Gain) Loss Recognized in Earnings on Derivatives | $30 | $188 | ($230) | $640 |
Fair_Value_Measurements_Summar
Fair Value Measurements - Summary of Valuation of Financial Instruments (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Non-qualified Deferred Compensation Plan [Member] | Other Current Assets [Member] | ||
Fair Value [Line Items] | ||
Non-qualified deferred compensation plan investments | $1,240 | |
Non-qualified Deferred Compensation Plan [Member] | Other Current Assets [Member] | Level 1 [Member] | ||
Fair Value [Line Items] | ||
Non-qualified deferred compensation plan investments | 1,240 | |
Non-qualified Deferred Compensation Plan [Member] | Other Current Assets [Member] | Level 2 [Member] | ||
Fair Value [Line Items] | ||
Non-qualified deferred compensation plan investments | ||
Non-qualified Deferred Compensation Plan [Member] | Other Current Assets [Member] | Level 3 [Member] | ||
Fair Value [Line Items] | ||
Non-qualified deferred compensation plan investments | ||
Non-qualified Deferred Compensation Plan [Member] | Accrued Expenses and Other Current Liabilities [Member] | ||
Fair Value [Line Items] | ||
Non-qualified deferred compensation plan investments | ||
Non-qualified Deferred Compensation Plan [Member] | Accrued Expenses and Other Current Liabilities [Member] | Level 1 [Member] | ||
Fair Value [Line Items] | ||
Non-qualified deferred compensation plan investments | ||
Non-qualified Deferred Compensation Plan [Member] | Accrued Expenses and Other Current Liabilities [Member] | Level 2 [Member] | ||
Fair Value [Line Items] | ||
Non-qualified deferred compensation plan investments | ||
Non-qualified Deferred Compensation Plan [Member] | Accrued Expenses and Other Current Liabilities [Member] | Level 3 [Member] | ||
Fair Value [Line Items] | ||
Non-qualified deferred compensation plan investments | ||
Foreign Exchange Contract [Member] | Other Current Assets [Member] | ||
Fair Value [Line Items] | ||
Asset derivatives fair value | 8 | |
Foreign Exchange Contract [Member] | Other Current Assets [Member] | Level 1 [Member] | ||
Fair Value [Line Items] | ||
Asset derivatives fair value | ||
Foreign Exchange Contract [Member] | Other Current Assets [Member] | Level 2 [Member] | ||
Fair Value [Line Items] | ||
Asset derivatives fair value | 8 | |
Foreign Exchange Contract [Member] | Other Current Assets [Member] | Level 3 [Member] | ||
Fair Value [Line Items] | ||
Asset derivatives fair value | ||
Foreign Exchange Contract [Member] | Accrued Expenses and Other Current Liabilities [Member] | ||
Fair Value [Line Items] | ||
Liability derivatives fair value | 8 | 25 |
Foreign Exchange Contract [Member] | Accrued Expenses and Other Current Liabilities [Member] | Level 1 [Member] | ||
Fair Value [Line Items] | ||
Liability derivatives fair value | ||
Foreign Exchange Contract [Member] | Accrued Expenses and Other Current Liabilities [Member] | Level 2 [Member] | ||
Fair Value [Line Items] | ||
Liability derivatives fair value | 8 | 25 |
Foreign Exchange Contract [Member] | Accrued Expenses and Other Current Liabilities [Member] | Level 3 [Member] | ||
Fair Value [Line Items] | ||
Liability derivatives fair value |
Share_Repurchase_Program_Addit
Share Repurchase Program - Additional Information (Detail) (USD $) | 1 Months Ended | 9 Months Ended |
Feb. 14, 2013 | Sep. 30, 2013 | |
Equity [Abstract] | ||
Common stock repurchase program, authorized amount | $50,000,000 | |
Repurchased shares of common stock | 2,646,722 | |
Repurchase shares of common stock, average cost per share | $18.89 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | |
Outstanding performance bonds to secure performance under certain contracts or state tax requirements | $3,090,000 |
Minimum months of salary paid as severance | 3 months |
Maximum months of salary paid as severance | 24 months |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Segment_Information_Net_Sales_
Segment Information - Net Sales by Product or Service Type for North America, EMEA and APAC (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
North America [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues from external customers | $857,935 | $868,765 | $2,528,002 | $2,718,062 |
North America [Member] | Hardware Net Sales [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues from external customers | 546,192 | 574,538 | 1,548,326 | 1,697,229 |
North America [Member] | Software Net Sales [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues from external customers | 259,862 | 239,476 | 819,266 | 857,271 |
North America [Member] | Services Net Sales [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues from external customers | 51,881 | 54,751 | 160,410 | 163,562 |
EMEA [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues from external customers | 263,551 | 276,621 | 1,071,578 | 1,085,169 |
EMEA [Member] | Hardware Net Sales [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues from external customers | 120,404 | 125,890 | 370,906 | 410,961 |
EMEA [Member] | Software Net Sales [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues from external customers | 135,651 | 145,103 | 674,513 | 654,943 |
EMEA [Member] | Services Net Sales [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues from external customers | 7,496 | 5,628 | 26,159 | 19,265 |
APAC [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues from external customers | 29,534 | 36,023 | 149,609 | 151,535 |
APAC [Member] | Hardware Net Sales [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues from external customers | 1,304 | 880 | 4,133 | 3,567 |
APAC [Member] | Software Net Sales [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues from external customers | 26,881 | 33,197 | 140,553 | 142,838 |
APAC [Member] | Services Net Sales [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues from external customers | $1,349 | $1,946 | $4,923 | $5,130 |
Segment_Information_Financial_
Segment Information - Financial Information about Reportable Operating Segments (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ||||
Net sales | $1,151,020 | $1,181,409 | $3,749,189 | $3,954,766 |
Costs of goods sold | 982,352 | 1,013,784 | 3,231,457 | 3,415,483 |
Gross profit | 168,668 | 167,625 | 517,732 | 539,283 |
Operating expenses: | ||||
Selling and administrative expenses | 139,965 | 136,259 | 424,111 | 423,254 |
Severance and restructuring expenses | 2,424 | 705 | 8,327 | 4,456 |
Earnings (loss) from operations | 26,279 | 30,661 | 85,294 | 111,573 |
Total assets at period end | 2,104,120 | 2,039,435 | 2,104,120 | 2,039,435 |
North America [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 857,935 | 868,765 | 2,528,002 | 2,718,062 |
Costs of goods sold | 734,991 | 751,790 | 2,177,867 | 2,357,094 |
Gross profit | 122,944 | 116,975 | 350,135 | 360,968 |
Operating expenses: | ||||
Selling and administrative expenses | 93,082 | 87,779 | 272,573 | 270,105 |
Severance and restructuring expenses | 530 | 916 | 2,554 | 2,299 |
Earnings (loss) from operations | 29,332 | 28,280 | 75,008 | 88,564 |
Total assets at period end | 1,640,205 | 1,579,440 | 1,640,205 | 1,579,440 |
EMEA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 263,551 | 276,621 | 1,071,578 | 1,085,169 |
Costs of goods sold | 224,208 | 233,313 | 929,387 | 932,198 |
Gross profit | 39,343 | 43,308 | 142,191 | 152,971 |
Operating expenses: | ||||
Selling and administrative expenses | 41,232 | 42,088 | 133,297 | 134,412 |
Severance and restructuring expenses | 1,894 | -211 | 5,773 | 2,157 |
Earnings (loss) from operations | -3,783 | 1,431 | 3,121 | 16,402 |
Total assets at period end | 391,531 | 394,330 | 391,531 | 394,330 |
APAC [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 29,534 | 36,023 | 149,609 | 151,535 |
Costs of goods sold | 23,153 | 28,681 | 124,203 | 126,191 |
Gross profit | 6,381 | 7,342 | 25,406 | 25,344 |
Operating expenses: | ||||
Selling and administrative expenses | 5,651 | 6,392 | 18,241 | 18,737 |
Severance and restructuring expenses | ||||
Earnings (loss) from operations | 730 | 950 | 7,165 | 6,607 |
Total assets at period end | $72,384 | $65,665 | $72,384 | $65,665 |
Segment_Information_Financial_1
Segment Information - Financial Information about Reportable Operating Segments (Parenthetical) (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting [Abstract] | ||
Corporate assets and intercompany elimination amount | $484,424,000 | $447,588,000 |
Segment_Information_PreTax_Dep
Segment Information - Pre-Tax Depreciation and Amortization for Operating Segment (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | $10,467 | $10,138 | $31,337 | $30,635 |
North America [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 8,037 | 7,944 | 24,344 | 24,201 |
EMEA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 2,213 | 1,952 | 6,334 | 5,757 |
APAC [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | $217 | $242 | $659 | $677 |
Acquisition_Additional_Informa
Acquisition - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Business Acquisition [Line Items] | ||||
Acquisition, net of cash acquired | $3,831,000 | |||
Gain on bargain purchase | 2,022,000 | |||
Inmac [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition, net of cash acquired | 3,831,000 | |||
Gain on bargain purchase | $2,022,000 |