Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 01, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | NSIT | |
Entity Registrant Name | INSIGHT ENTERPRISES, INC. | |
Entity Central Index Key | 0000932696 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 35,050,629 | |
Entity File Number | 0-25092 | |
Entity Tax Identification Number | 86-0766246 | |
Entity Address, Address Line One | 6820 South Harl Avenue | |
Entity Address, City or Town | Tempe | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85283 | |
City Area Code | 480 | |
Local Phone Number | 333-3000 | |
Entity Incorporation, State or Country Code | DE | |
Title of 12(b) Security | Common stock, par value $0.01 | |
Security Exchange Name | NASDAQ | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets (un
Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 62,660 | $ 114,668 |
Accounts receivable, net of allowance for doubtful accounts of $12,610 and $10,762, respectively | 2,464,377 | 2,511,383 |
Inventories | 236,414 | 190,833 |
Other current assets | 202,706 | 231,148 |
Total current assets | 2,966,157 | 3,048,032 |
Property and equipment, net of accumulated depreciation and amortization of $238,766 and $236,330, respectively | 128,689 | 130,907 |
Goodwill | 413,665 | 415,149 |
Intangible assets, net of accumulated amortization of $83,187 and $73,492, respectively | 271,533 | 278,584 |
Other assets | 276,974 | 305,507 |
Total assets | 4,057,018 | 4,178,179 |
Current liabilities: | ||
Accounts payable—trade | 1,283,801 | 1,275,957 |
Accounts payable—inventory financing facilities | 252,912 | 253,676 |
Accrued expenses and other current liabilities | 358,182 | 352,204 |
Current portion of long-term debt | 1,700 | 1,691 |
Total current liabilities | 1,896,595 | 1,883,528 |
Long-term debt | 749,547 | 857,673 |
Deferred income taxes | 44,489 | 44,633 |
Other liabilities | 215,818 | 232,027 |
Total liabilities | 2,906,449 | 3,017,861 |
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; 35,049 shares at March 31, 2020 and 35,263 shares at December 31, 2019 issued and outstanding | 350 | 353 |
Additional paid-in capital | 351,648 | 357,032 |
Retained earnings | 854,566 | 841,097 |
Accumulated other comprehensive loss – foreign currency translation adjustments | (55,995) | (38,164) |
Total stockholders’ equity | 1,150,569 | 1,160,318 |
Total liabilities and stockholders' equity | $ 4,057,018 | $ 4,178,179 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 12,610 | $ 10,762 |
Accumulated depreciation and amortization of property and equipment | 238,766 | 236,330 |
Accumulated amortization of intangible assets | $ 83,187 | $ 73,492 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 3,000,000 | 3,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 35,049,000 | 35,263,000 |
Common stock, shares outstanding | 35,049,000 | 35,263,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net sales: | ||
Total net sales | $ 2,144,051 | $ 1,685,466 |
Costs of goods sold: | ||
Total costs of goods sold | 1,818,715 | 1,436,994 |
Gross profit | 325,336 | 248,472 |
Operating expenses: | ||
Selling and administrative expenses | 268,863 | 191,063 |
Severance and restructuring expenses, net | 2,144 | 370 |
Acquisition and integration related expenses | 1,466 | |
Earnings from operations | 52,863 | 57,039 |
Non-operating (income) expense: | ||
Interest expense, net | 11,826 | 4,552 |
Other (income) expense, net | (1,563) | 1,050 |
Earnings before income taxes | 42,600 | 51,437 |
Income tax expense | 8,639 | 12,110 |
Net earnings | $ 33,961 | $ 39,327 |
Net earnings per share: | ||
Basic | $ 0.96 | $ 1.10 |
Diluted | $ 0.95 | $ 1.09 |
Shares used in per share calculations: | ||
Basic | 35,233 | 35,609 |
Diluted | 35,646 | 36,103 |
Products [Member] | ||
Net sales: | ||
Total net sales | $ 1,848,316 | $ 1,466,672 |
Costs of goods sold: | ||
Total costs of goods sold | 1,670,238 | 1,337,308 |
Services [Member] | ||
Net sales: | ||
Total net sales | 295,735 | 218,794 |
Costs of goods sold: | ||
Total costs of goods sold | $ 148,477 | $ 99,686 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net earnings | $ 33,961 | $ 39,327 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments | (17,831) | 1,915 |
Total comprehensive income | $ 16,130 | $ 41,242 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] |
Beginning Balance at Dec. 31, 2018 | $ 986,989 | $ 355 | $ 323,622 | $ (41,653) | $ 704,665 | |
Beginning Balance, Shares at Dec. 31, 2018 | 35,482 | |||||
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes, Value | (6,128) | $ 3 | (6,131) | |||
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes, Shares | 279 | |||||
Stock-based compensation expense | 4,115 | 4,115 | ||||
Foreign currency translation adjustments, net of tax | 1,915 | 1,915 | ||||
Net earnings | 39,327 | 39,327 | ||||
Ending Balance at Mar. 31, 2019 | 1,026,218 | $ 358 | 321,606 | (39,738) | 743,992 | |
Ending Balance, Shares at Mar. 31, 2019 | 35,761 | |||||
Beginning Balance at Dec. 31, 2019 | 1,160,318 | $ 353 | 357,032 | (38,164) | 841,097 | |
Beginning Balance, Shares at Dec. 31, 2019 | 35,263 | |||||
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes, Value | (5,288) | $ 2 | (5,289) | (1) | ||
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes, Shares | (231) | |||||
Stock-based compensation expense | 4,409 | 4,409 | ||||
Repurchase of treasury stock | (25,000) | $ (25,000) | ||||
Repurchase of treasury stock, Shares | (445) | |||||
Retirement of treasury stock, Amount | $ (5) | $ 25,000 | (4,504) | (20,491) | ||
Retirement of treasury stock, Shares | (445) | 445 | ||||
Foreign currency translation adjustments, net of tax | (17,831) | (17,831) | ||||
Net earnings | 33,961 | 33,961 | ||||
Ending Balance at Mar. 31, 2020 | $ 1,150,569 | $ 350 | $ 351,648 | $ (55,995) | $ 854,566 | |
Ending Balance, Shares at Mar. 31, 2020 | 35,049 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net earnings | $ 33,961 | $ 39,327 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 17,397 | 8,867 |
Provision for losses on accounts receivable | 3,136 | 1,413 |
Non-cash stock-based compensation | 4,409 | 4,115 |
Deferred income taxes | (509) | 547 |
Other adjustments | 5,262 | 1,408 |
Changes in assets and liabilities: | ||
Decrease in accounts receivable | 22,648 | 210,691 |
Increase in inventories | (48,332) | (39,658) |
Decrease (increase) in other assets | 57,241 | (107,314) |
Increase (decrease) in accounts payable | 23,277 | (82,246) |
(Decrease) increase in accrued expenses and other liabilities | (25,364) | 84,763 |
Net cash provided by operating activities | 93,126 | 121,913 |
Cash flows from investing activities: | ||
Proceeds from sale of assets held for sale | 14,218 | |
Purchases of property and equipment | (7,382) | (5,352) |
Acquisitions, net of cash and cash equivalents acquired | (6,406) | (762) |
Net cash provided by (used in) investing activities | 430 | (6,114) |
Cash flows from financing activities: | ||
Borrowings on senior revolving credit facility | 49,936 | |
Repayments on senior revolving credit facility | (49,936) | |
Borrowings on accounts receivable securitization financing facility | 1,010,500 | |
Repayments on accounts receivable securitization financing facility | (1,092,500) | |
Net repayments under inventory financing facilities | (764) | (43,970) |
Repurchases of common stock | (25,000) | |
Other payments | (5,756) | (6,670) |
Net cash used in financing activities | (141,766) | (132,640) |
Foreign currency exchange effect on cash, cash equivalents and restricted cash balances | (3,615) | (986) |
Decrease in cash, cash equivalents and restricted cash | (51,825) | (17,827) |
Cash, cash equivalents and restricted cash at beginning of period | 116,297 | 144,293 |
Cash, cash equivalents and restricted cash at end of period | 64,472 | $ 126,466 |
ABL Facility [Member] | ||
Cash flows from financing activities: | ||
Borrowings on senior revolving credit facility | 678,197 | |
Repayments on senior revolving credit facility | $ (788,443) |
Basis of Presentation and Recen
Basis of Presentation and Recently Issued Accounting Standards | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation and Recently Issued Accounting Standards | 1. Basis of Presentation and Rece ntly Issued Accounting Standards We empower organizations of all sizes with Intelligent Technology Solutions TM Operating Segment Geography North America United States and Canada EMEA Europe, Middle East and Africa APAC Asia-Pacific Our offerings in North America and certain countries in EMEA and APAC include hardware, software and services. Our offerings in the remainder of our EMEA and APAC segments consist of largely software and certain 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 March 31, 2020 and our results of operations for the three months ended March 31, 2020 and 2019 and cash flows for the three months ended March 31, 2020 and 2019. The consolidated balance sheet as of December 31, 2019 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 SEC 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, 2019. Our results of operations include the results of PCM, Inc. (“PCM”) from its acquisition date of August 30, 2019 and vNext from its acquisition date of February 28, 2020. 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. 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, litigation-related obligations, valuation allowances for deferred tax assets and impairment of long-lived assets, including purchased intangibles and goodwill, if indicators of potential impairment exist. Recently Issued Accounting Standards In December 2019, the Financial Accounting Standards Board’s (“FASB”) issued Accounting Standard Update (“ASU”) No. 2019-12, “Simplifying the Accounting for Income Taxes.” The new standard is intended to simplify various aspects of accounting for income taxes by removing specific exceptions and amending certain requirements. The new standard is effective for interim and annual periods beginning after December 15, 2020, and early adoption is permitted. We do not expect this new standard to have a material effect on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses.” The new standard is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held at each reporting date. The new standard is effective for interim and annual periods beginning after December 15, 2019, and early adoption is permitted. We adopted the new standard as of January 1, 2020. The adoption of this new standard did not have a material effect on our consolidated financial statements. In November 2019, the FASB issued ASU No. 2019-11, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses.” The new standard provides amendments to the reporting of expected recoveries. The new standard is effective with the adoption of ASU No. 2016-13. We adopted the new standard as of January 1, 2020. The adoption of this new standard did not have a material effect on our consolidated financial statements. In April 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.” The new standard provides changes for how a company considers expected recoveries and contractual extensions or renewal options when estimating expected credit losses. The new standard is effective with the adoption of ASU No. 2016-13. We adopted the new standard as of January 1, 2020. The adoption of this new standard did not have a material effect on our consolidated financial statements. There have been no other material changes in or additions to the recently issued accounting standards 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, 2019 that affect or may affect our current financial statements. |
Sales Recognition
Sales Recognition | 3 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Sales Recognition | 2 . Sales Recognition In the following table, revenue is disaggregated by our reportable operating segments, which are primarily defined by Three Months Ended March 31, 2020 North America EMEA APAC Consolidated Major Offerings Hardware $ 1,128,486 $ 174,969 $ 7,746 $ 1,311,201 Software 305,163 201,082 30,870 537,115 Services 240,732 42,835 12,168 295,735 $ 1,674,381 $ 418,886 $ 50,784 $ 2,144,051 Major Client Groups Large Enterprise / Corporate $ 1,160,748 $ 292,288 $ 13,025 $ 1,466,061 Small and Medium-Sized Businesses 386,076 17,742 13,654 417,472 Public Sector 127,557 108,856 24,105 260,518 $ 1,674,381 $ 418,886 $ 50,784 $ 2,144,051 Revenue Recognition based on acting as Principal or Agent in the Transaction Gross revenue recognition (Principal) $ 1,600,514 $ 392,259 $ 45,754 $ 2,038,527 Net revenue recognition (Agent) 73,867 26,627 5,030 105,524 $ 1,674,381 $ 418,886 $ 50,784 $ 2,144,051 Three Months Ended March 31, 2019 North America EMEA APAC Consolidated Major Offerings Hardware $ 748,337 $ 171,525 $ 6,518 $ 926,380 Software 322,079 183,148 35,065 540,292 Services 172,025 35,502 11,267 218,794 $ 1,242,441 $ 390,175 $ 52,850 $ 1,685,466 Major Client Groups Large Enterprise / Corporate $ 976,841 $ 260,607 $ 13,307 $ 1,250,755 Small and Medium-Sized Businesses 168,483 20,502 13,389 202,374 Public Sector 97,117 109,066 26,154 232,337 $ 1,242,441 $ 390,175 $ 52,850 $ 1,685,466 Revenue Recognition based on acting as Principal or Agent in the Transaction Gross revenue recognition (Principal) $ 1,182,078 $ 367,165 $ 47,866 $ 1,597,109 Net revenue recognition (Agent) 60,363 23,010 4,984 88,357 $ 1,242,441 $ 390,175 $ 52,850 $ 1,685,466 The following table provides information about receivables and contract liabilities as of March 31, 2020 and December 31, 2019 (in thousands): March 31, December 31, 2020 2019 Current receivables, which are included in “Accounts receivable, net” $ 2,464,377 $ 2,511,383 Non-current receivables, which are included in “Other assets” 110,861 154,417 Contract liabilities, which are included in “Accrued expenses and other current liabilities” and “Other liabilities” 94,243 84,814 C hanges in the contract liabilities balances during the three months ended March 31, 2020 are as follows (in thousands): Increase (Decrease) Contract Liabilities Balances at December 31, 2019 $ 84,814 Reclassification of the beginning contract liabilities to revenue, as the result of performance obligations satisfied (18,864 ) Cash received in advance and not recognized as revenue 28,293 Balances at March 31, 2020 $ 94,243 The following table includes estimated net sales related to performance obligations that are unsatisfied (or partially unsatisfied) as of March 31, 2020 that are expected to be recognized in the future (in thousands): Services Remainder of 2020 $ 83,311 2021 33,744 2022 19,039 2023 and thereafter 11,548 Total remaining performance obligations $ 147,642 With the exception of remaining performance obligations associated with our OneCall Support Services contracts which are included in the table above regardless of original duration, r emaining performance obligations that have original expected durations of one year or less are not included in the table above. Amounts not included in the table above have an average original expected duration of nine months. The majority of our backlog historically has been and continues to be open cancelable purchase orders. We do not believe that backlog as of any particular date is predictive of future results, therefore we do not include performance obligations under open cancelable purchase orders, which do not qualify for revenue recognition, in the table above. |
Assets Held for Sale
Assets Held for Sale | 3 Months Ended |
Mar. 31, 2020 | |
Property Plant And Equipment Assets Held For Sale Disclosure [Abstract] | |
Assets Held For Sale | 3. Assets Held for Sale During 2019, we completed the purchase of real estate in Chandler, Arizona that we intend to use as our global corporate headquarters. During the fourth quarter of 2019, properties in Tempe, Arizona, El Segundo and Santa Monica, California and Woodbridge, Illinois were classified as held for sale, for approximately $68,916,000, which is included in other current assets in the accompanying consolidated balance sheet as of March 31, 2020, as we look to sell current properties in preparation for our move to Chandler. During the first quarter of 2020, we completed the sale of our property in Irvine, California for approximately $14,218,000 |
Net Earnings Per Share ("EPS")
Net Earnings Per Share ("EPS") | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Earnings Per Share ("EPS") | 4 . 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 restricted stock units (“RSUs”). A reconciliation of the denominators of the basic and diluted EPS calculations follows (in thousands, except per share data): Three Months Ended March 31, 2020 2019 Numerator: Net earnings $ 33,961 $ 39,327 Denominator: Weighted average shares used to compute basic EPS 35,233 35,609 Dilutive potential common shares due to dilutive RSUs, net of tax effect 413 494 Weighted average shares used to compute diluted EPS 35,646 36,103 Net earnings per share: Basic $ 0.96 $ 1.10 Diluted $ 0.95 $ 1.09 For the three months ended March 31, 2020, 86,000 of our RSUs were not included in the diluted EPS calculations because their inclusion would have been anti-dilutive. These share-based awards could be dilutive in the future. There were 164,000 anti-dilutive RSUs for the three months ended March 31, 2019. |
Debt, Inventory Financing Facil
Debt, Inventory Financing Facility, Finance Leases and Other Financing Obligations | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt, Inventory Financing Facilities, Finance Leases and Other Financing Obligations | 5 . Debt, Inventory Financing Facilities, Finance Leases and Other Financing Obligations Debt Our long-term debt consists of the following (in thousands): March 31, 2020 December 31, 2019 ABL revolving credit facility $ 460,141 $ 570,706 Convertible senior notes due 2025 287,670 284,836 Finance leases and other financing obligations 3,436 3,822 Total 751,247 859,364 Less: current portion of long-term debt (1,700 ) (1,691 ) Long-term debt $ 749,547 $ 857,673 On August 30, 2019, we entered into a credit agreement (the “credit agreement”) providing for a senior secured revolving credit facility (the “ABL facility”), which has an aggregate U.S. dollar equivalent maximum borrowing amount of $1,200,000,000, including a maximum borrowing capacity that could be used for borrowing in certain foreign currencies of $150,000,000. While the ABL facility has a stated maximum amount, the actual availability under the ABL facility is limited by specified percentages of eligible accounts receivable and certain eligible inventory, in each case as set forth in the credit agreement. From time to time and at our option, we may request to increase the aggregate amount available for borrowing under the ABL facility by up to an aggregate of the U.S. dollar equivalent of $ 500,000,000 , subject to customary conditions , including receipt of commitments from lenders . The ABL facility is guaranteed by certain of our material subsidiaries and is secured by a lien on certain of our assets and certain of each other borrower’s and each guarantor’s assets. The interest rates applicable to borrowings under the ABL facility are based on the average aggregate excess availability under the ABL facility as set forth on a pricing grid in the credit agreement. The ABL facility matures on August 30, 2024 . As of March 3 1 , 20 20 , eligible accounts receivable and inventory were sufficient to permit access to the full $ 1,200,000,000 facility amount, of which $ was outstanding. The ABL facility contains customary affirmative and negative covenants and events of default. If a default occurs (subject to customary grace periods and materiality thresholds) under the credit agreement, certain actions may be taken, including, but not limited to, possible termination of commitments and required payment of all outstanding principal amounts plus accrued interest and fees payable under the credit agreement. Convertible Senior Notes due 2025 On August 15, 2019, we issued $300,000,000 aggregate principal amount of convertible senior notes (the “notes”) that mature on February 15, 2025. On August 23, 2019, we issued an additional $50,000,000 aggregate principal amount of the notes pursuant to the exercise in full by the initial purchasers of the notes of their option to purchase additional notes. The notes bear interest at an annual rate of 0.75% payable semiannually, in arrears, on February 15 th th Holders of the notes may convert their notes at their option at any time prior to the close of business on the business day immediately preceding June 15, 2024, under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on December 31, 2019 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price of our common stock per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day; (3) if we call any or all of the notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events. On or after June 15, 2024 until the close of business on the second scheduled trading day immediately preceding the maturity date, the holders may convert their notes at any time, regardless of the foregoing circumstances. Upon conversion, we will pay or deliver cash, shares of our common stock or a combination of the two, at our discretion. The conversion rate will initially be 14.6376 shares of common stock per $1,000 principal amount of notes (equivalent to an initial conversion price of approximately $68.32 per share of common stock). The conversion rate is subject to change in certain circumstances and will not be adjusted for any accrued and unpaid interest. In addition, following certain events that occur prior to the maturity date or following our issuance of a notice of redemption, the conversion rate is subject to an increase for a holder who elects to convert their notes in connection with those events or during the related redemption period in certain circumstances. If we undergo a fundamental change, the holders may require us to repurchase for cash all or any portion of their notes at a fundamental change repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. As of March 31, 2020, none of the criteria for a fundamental change or a conversion rate adjustment had been met. The maximum number of shares issuable upon conversion, including the effect of a fundamental change and subject to other conversion rate adjustments, would be 6,788,208. We may redeem for cash all or any portion of the notes, at our option, on or after August 20, 2022 if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the notes. The notes are subject to certain customary events of default and acceleration clauses. As of March 31, 2020, no such events have occurred. The notes consist of the following balances reported within the consolidated balance sheet as of March 31, 2020 (in thousands): Liability: Principal $ 350,000 Less: debt discount and issuance costs, net of accumulated accretion (62,330 ) Net carrying amount $ 287,670 Equity, net of deferred tax $ 44,731 The remaining life of the debt discount and issuance cost accretion is approximately 4.875 years. The effective interest rate on the liability component of the notes is 4.325%. I nterest expense resulting from the notes reported within the consolidated statement of operations for the three months ended March 31, 2020 is made up of contractual coupon interest, amortization of debt discount and amortization of debt issuance costs. Convertible Note Hedge and Warrant Transaction In connection with the issuance of the notes, we entered into certain convertible note hedge and warrant transactions (the “Call Spread Transactions”) with respect to the Company’s common stock. The convertible note hedge consists of an option to purchase up to 5,123,160 common stock shares at a price of $68.32 per share. The hedge expires on February 15, 2025 and can only be concurrently executed upon the conversion of the notes. We paid approximately $66,325,000 for the convertible note hedge transaction. Additionally, we sold warrants to purchase 5,123,160 shares of common stock at a price of $103.12 per share. The warrants expire on May 15, 2025 and can only be exercised at maturity. The Company received aggregate proceeds of approximately $34,440,000 for the sale of the warrants. The Call Spread Transactions have no effect on the terms of the notes and reduce potential dilution by effectively increasing the initial conversion price of the notes to $103.12 per share of the Company’s common stock. Inventory Financing Facilities During the first quarter of 2020, we increased our maximum availability for vendor purchases under our unsecured inventory financing facility with MUFG Bank Ltd (“MUFG”) from $200,000,000 to $240,000,000. We also have an unsecured inventory financing facility with Wells Fargo Capital Finance, LLC (“Wells Fargo”) with an aggregate availability for vendor purchases under the facility of $250,000,000. Finance Lease and Other Financing From time to time, we enter into finance leases and other financing agreements with financial intermediaries to facilitate the purchase of products from certain vendors The current and long-term portions of our finance leases and other financing obligations are included in the current and long-term portions of long-term debt in the table above and in our consolidated balance sheets as of March 31, 2020 and December 31, 2019. See Note 6 for additional information. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | 6 . Leases We lease office space, distribution centers, land, vehicles and equipment. Lease agreements with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. Certain lease agreements include one or more options to renew, with renewal terms that can extend the lease term from one to five years The exercise of lease renewal options is at our sole discretion. Certain of our lease agreements include rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The following table provides information about the financial statement classification of our lease balances reported within the consolidated balance sheets as of March 31, 2020 and December 31, 2019 (in thousands): Leases Classification March 31, 2020 December 31, 2019 Assets Operating lease assets Other assets $ 89,869 $ 74,684 Finance lease assets Property and equipment (a) 2,973 3,297 Total lease assets $ 92,842 $ 77,981 Liabilities Current Operating lease liabilities Accrued expenses and other current liabilities $ 21,000 $ 19,648 Finance lease liabilities Current portion of long-term debt 1,700 1,691 Non-current Operating lease liabilities Other liabilities 74,114 60,285 Finance lease liabilities Long-term debt 1,736 2,131 Total lease liabilities $ 98,550 $ 83,755 (a) Recorded net of accumulated amortization of $1,185,000 and $861,000 as of March 31, 2020 and December 31, 2019, respectively. The following table provides information about the financial statement classification of our lease expenses reported within the consolidated statement of operations for the three months ended March 31, 2020 and 2019 (in thousands): Lease cost Classification Three months ended March 31, 2020 Three months ended March 31, 2019 Operating lease cost (a) (b) Selling and administrative expenses $ 6,514 $ 4,918 Finance lease cost Amortization of leased assets Selling and administrative expenses 324 171 Interest on lease liabilities Interest expense, net 32 27 Total lease cost $ 6,870 $ 5,116 (a) Includes immaterial amounts recorded to cost of goods sold. (b) Excludes short-term and variable lease costs, which are immaterial. Future minimum lease payments under non-cancelable leases as of March 31, 2020 are as follows (in thousands): Operating leases Finance leases Total Remainder of 2020 $ 18,308 $ 1,368 $ 19,676 2021 21,199 1,077 22,276 2022 18,287 645 18,932 2023 12,742 449 13,191 2024 7,917 45 7,962 After 2024 27,991 — 27,991 Total lease payments 106,444 3,584 110,028 Less: Interest (11,330 ) (148 ) (11,478 ) Present value of lease liabilities $ 95,114 $ 3,436 $ 98,550 Operating lease payments include $13.4 million related to options to extend lease terms that are reasonably certain of being exercised. The following table provides information about the remaining lease terms and discount rates applied as of March 31, 2020: March 31, 2020 March 31, 2019 Weighted average remaining lease term (years) Operating leases 6.29 6.58 Finance leases 2.74 2.19 Weighted average discount rate (%) Operating leases 3.49 3.86 Finance leases 3.61 4.84 The following table provides other information related to leases for the three months ended March 31, 2020 and 2019 (in thousands): Three months ended March 31, 2020 Three months ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,582 $ 4,457 Leased assets obtained in exchange for new operating lease liabilities $ 21,294 $ 1,768 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 7. Stock-Based Compensation We recorded the following pre-tax amounts in selling and administrative expenses for stock-based compensation, by operating segment, in the accompanying consolidated financial statements (in thousands): Three Months Ended March 31, 2020 2019 North America $ 3,390 $ 3,123 EMEA 878 870 APAC 141 122 Total Consolidated $ 4,409 $ 4,115 As of March 31, 2020, total compensation cost related to nonvested RSUs not yet recognized is $37,650,000, which is expected to be recognized over the next 1.44 years on a weighted-average basis. The following table summarizes our RSU activity during the three months ended March 31, 2020: Number Weighted Average Grant Date Fair Value Fair Value Nonvested at January 1, 2020 923,400 $ 45.58 Granted (a) 291,648 58.58 Vested, including shares withheld to cover taxes (320,623 ) 41.49 $ 13,302,648 (b) Forfeited (5,777 ) 46.50 Nonvested at March 31, 2020 (a) 888,648 51.32 $ 37,438,740 (c) (a) Includes 92,315 RSUs subject to remaining performance conditions. The number of RSUs subject to performance conditions are based on the Company achieving 100% of its 2020 targeted financial results. These RSUs will be awarded at 100% this annual period due to the completion of a significant acquisition in the period. ( b ) The aggregate 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 of the nonvested RSUs and the RSUs expected to vest represents the total pre-tax fair value, based on our closing stock price of $42.13 as of March 31, 2020, which would have been received by holders of RSUs had all such holders sold their underlying shares on that date. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8 . Income Taxes On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law in the U.S. to provide certain relief as a result of the coronavirus (“COVID-19”) pandemic, which includes, among other things, provisions relating to net operating loss carrybacks and other tax-related matters. In addition, governments around the world have enacted or implemented various forms of tax relief measures in response to the economic conditions in the wake of COVID-19. As of March 31, 2020, we had recorded a discrete tax benefit of approximately $1,712,000 related to the CARES Act. Our effective tax rate for the three months ended March 31, 2020 was 20.3%. For the three months ended March 31, 2020, our effective tax rate was lower than the United States federal statutory rate of 21.0% due primarily to the remeasurement of acquired net operating losses to be carried back to higher tax rate years under the CARES Act, excess tax benefits on the settlement of share-based compensation and tax benefits related to research and development activities. These benefits were partially offset by state income taxes, net of federal benefit and higher taxes on earnings in foreign jurisdictions . Our effective tax rate for the three months ended March 31, 2019 was 23.5%. For the three months ended March 31, 2019, our effective tax rate was higher than the United States federal statutory rate of 21.0% due primarily to state income taxes, net of federal benefit and higher taxes on earnings in foreign jurisdictions partially offset by excess tax benefits on the settlement of employee share-based compensation and tax benefits related to research and development activities As of March 31, 2020 and December 31, 2019, we had approximately $10,180,000 and $9,736,000, respectively, of unrecognized tax benefits. Of these amounts, approximately $515,000 and $442,000, respectively, related to accrued interest. In the future, if recognized, the liability associated with uncertain tax positions would affect our effective tax rate. We do not believe there will be any changes over the next 12 months that would have a material effect on our effective tax rate. Several of our subsidiaries are currently under audit for tax years 2013 through 2018. Although the timing of the resolutions and/or closures of audits is highly uncertain, it is reasonably possible that the examination phase of these audits may be concluded within the next 12 months, which could increase or decrease the balance of our gross unrecognized tax benefits. 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, but the estimated effect on our income tax expense and net earnings is not expected to be significant. |
Share Repurchase Program
Share Repurchase Program | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Share Repurchase Program | 9 . Share Repurchase Program On February 26, 2020, our Board of Directors authorized the repurchase of up to $50,000,000 of our common stock. Our share repurchases may be made on the open market, subject to Rule 10b-18 or in privately negotiated transactions, through block trades, through 10b5-1 plans or otherwise, at management’s discretion. The amount of shares purchased and the timing of the purchases will be based on market conditions, working capital requirements, general business conditions and other factors. We intend to retire the repurchased shares. During the three months ended March 31, 2020, we repurchased 444,813 shares of our common stock on the open market at a total cost of approximately $24,999,996 (an average price of $56.20 per share). All shares repurchased were retired. . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
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. 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 the surety company. Management believes that payments, if any, related to these performance bonds are not probable at March 31, 2020. Accordingly, we have not accrued any liabilities related to such performance bonds in our consolidated financial statements. Employment Contracts and Severance Plans We have employment contracts with, and severance 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 outstanding nonvested RSUs would accelerate following a change in control. 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 March 31, 2020. Accordingly, we have not accrued any liabilities related to such indemnifications in our consolidated financial statements. We have entered into separate indemnification agreements with certain of 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 partner 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 From time to time, we are party to various legal proceedings incidental to the 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, employment claims, claims of alleged non-compliance with contract provisions and claims related to alleged violations of laws and regulations. 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 required. If accruals are not required, we further evaluate each legal proceeding to assess whether an estimate of possible loss or range of possible loss can be made. 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 work required pursuant to any legal proceedings or the resolution of any legal proceedings during such period. Legal expenses related to defense of any legal proceeding or the negotiations, settlements, rulings and advice of outside legal counsel in connection with any legal proceedings are expensed as incurred . In connection with the acquisition of PCM, the Company has effectively assumed responsibility for PCM litigation matters, including various disputes related to PCM’s acquisition of certain assets of En Pointe Technologies in 2015. The seller of En Pointe Technologies and related entities providing various post-closing support functions to PCM have asserted claims regarding the sufficiency of earnout payments paid by PCM under the asset purchase agreement and the unwinding of the support functions post-closing. PCM has rejected and vigorously responded to those claims and is pursuing various counterclaims. The disputes are being heard by multiple courts and arbitrators in several different jurisdictions including California, Delaware and Pakistan. The Company cannot determine with certainty the costs or outcome of these matters. However, the Company is not involved in any pending or threatened legal proceedings, including the PCM litigation matters, that it believes would reasonably be expected to have a material adverse effect on its business, financial condition or results of operations. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | 11. Segment Information We operate in three reportable geographic operating segments: North America; EMEA; and APAC with PCM being included in our North America and EMEA segments for the three months ended March 31, 2020. Our offerings in North America and certain countries in EMEA and APAC include IT hardware, software and services. Our offerings in the remainder of our EMEA and APAC segments are largely software and certain software-related services. The following table summarizes net sales by offering for North America, EMEA and APAC for the three months ended March 31, 2020 and 2019 (in thousands): North America EMEA APAC Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31, Sales Mix 2020 2019 2020 2019 2020 2019 Hardware $ 1,128,486 $ 748,337 $ 174,969 $ 171,525 $ 7,746 $ 6,518 Software 305,163 322,079 201,082 183,148 30,870 35,065 Services 240,732 172,025 42,835 35,502 12,168 11,267 $ 1,674,381 $ 1,242,441 $ 418,886 $ 390,175 $ 50,784 $ 52,850 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 or on a consolidated basis. Net sales are defined as net sales to external clients. None of our clients exceeded ten percent of consolidated net sales for the three months ended March 31, 2020 or 2019. A portion of our operating segments’ selling and administrative expenses arise from shared services and infrastructure that we have historically provided to them in order to realize economies of scale and to use resources efficiently. 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 consider to be a reasonable reflection of the utilization of services provided to or benefits received by the operating segments. The following tables present our results of operations by reportable operating segment for the periods indicated (in thousands): Three Months Ended March 31, 2020 North America EMEA APAC Consolidated Net sales: Products $ 1,433,649 $ 376,051 $ 38,616 $ 1,848,316 Services 240,732 42,835 12,168 295,735 Total net sales 1,674,381 418,886 50,784 2,144,051 Costs of goods sold: Products 1,288,197 345,749 36,292 1,670,238 Services 129,256 14,363 4,858 148,477 Total costs of goods sold 1,417,453 360,112 41,150 1,818,715 Gross profit 256,928 58,774 9,634 325,336 Operating expenses: Selling and administrative expenses 211,203 50,244 7,416 268,863 Severance and restructuring expenses 2,122 6 16 2,144 Acquisition and integration related expenses 1,262 204 — 1,466 Earnings from operations $ 42,341 $ 8,320 $ 2,202 $ 52,863 Three Months Ended March 31, 2019 North America EMEA APAC Consolidated Net sales: Products $ 1,070,416 $ 354,673 $ 41,583 $ 1,466,672 Services 172,025 35,502 11,267 218,794 Total net sales 1,242,441 390,175 52,850 1,685,466 Costs of goods sold: Products 974,701 324,038 38,569 1,337,308 Services 85,133 9,154 5,399 99,686 Total costs of goods sold 1,059,834 333,192 43,968 1,436,994 Gross profit 182,607 56,983 8,882 248,472 Operating expenses: Selling and administrative expenses 136,950 47,145 6,968 191,063 Severance and restructuring expenses 331 (85 ) 124 370 Earnings from operations $ 45,326 $ 9,923 $ 1,790 $ 57,039 The following is a summary of our total assets by reportable operating segment (in thousands): March 31, 2020 December 31, 2019 North America $ 3,977,876 $ 3,814,408 EMEA 781,651 699,856 APAC 159,268 123,349 Corporate assets and intercompany eliminations, net (861,777 ) (459,434 ) Total assets $ 4,057,018 $ 4,178,179 We recorded the following pre-tax amounts, by reportable operating segment, for depreciation and amortization in the accompanying consolidated financial statements (in thousands): Three Months Ended March 31, 2020 2019 Depreciation and amortization of property and equipment: North America $ 5,826 $ 3,957 EMEA 1,328 955 APAC 135 132 7,289 5,044 Amortization of intangible assets: North America 9,493 3,636 EMEA 506 69 APAC 109 118 10,108 3,823 Total $ 17,397 $ 8,867 |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | 12. PCM On August 30, 2019, we completed our acquisition of PCM, acquiring 100 percent of the issued and outstanding shares of PCM for a cash purchase price of $745,562,000, which included cash and cash equivalents acquired of $84,637,000 and the payment of PCM’s outstanding debt. PCM is a provider of multi-vendor technology offerings, including hardware, software and services to small, mid-sized and corporate/enterprise commercial clients, state, local and federal governments and educational institutions across the United States, Canada and the United Kingdom. Based in El Segundo, California, PCM has 40 office locations globally and more than 4,000 teammates. We believe that this acquisition allows us to help existing PCM clients in positioning their businesses for future growth, transforming and securing their data platforms, creating modern and mobile experiences for their workforce and optimizing the procurement of technology. The addition of PCM complements our supply chain optimization solution offering, adding scale and clients in the mid-market and corporate space primarily in North America. The following table summarizes the purchase price and the estimated fair value of the assets acquired and liabilities assumed at the date of acquisition (in thousands): Purchase price net of cash and cash equivalents acquired $ 660,925 Fair value of net assets acquired: Current assets $ 532,433 Identifiable intangible assets - see description below 191,370 Property and equipment 91,213 Other assets 32,699 Current liabilities (368,647 ) Long-term liabilities, including deferred taxes (63,623 ) Total fair value of net assets acquired 415,445 Excess purchase price over fair value of net assets acquired ("goodwill") $ 245,480 Under the acquisition method of accounting, the total purchase price as shown in the table above was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase price over fair value of net assets acquired was recorded as goodwill. In the fourth quarter of 2019, an adjustment of $56,700,000 was recorded to goodwill primarily due to a change in the customer relationships valuation based on updated information received for key inputs as well as an associated change in deferred taxes. The fair values of current assets and liabilities are based upon their historical costs on the date of acquisition due to their short-term nature. The estimated fair values of the majority of property and equipment, excluding acquired real estate, are also based upon historical costs net of depreciation, as they approximated fair value. Certain long-term assets, including PCM’s IT systems, were written down to the estimated fair value. The preliminary estimated fair value of net assets acquired was approximately $415,445,000, including $191,370,000 of identified intangible assets, consisting primarily of customer relationships of $178,900,000. The fair value of the customer relationships were determined using the multiple-period excess earnings method. The identifiable intangible assets resulting from the acquisition are amortized using the straight-line method over the following estimated useful lives: customer relationships – 10-12 years; trade names – 1 year; non-compete agreements – 2-3 years. Goodwill of $245,480,000, which was recorded in our North America and EMEA operating segments, represents the excess of the purchase price over the estimated fair value assigned to tangible and identifiable intangible assets acquired and liabilities assumed from PCM. The goodwill is not amortized and will be tested for impairment annually in the fourth quarter of our fiscal year. The addition of the PCM technical employees to our team and the opportunity to grow our business are the primary factors making up the goodwill recognized as part of the transaction. None of the goodwill is tax deductible. The purchase price allocation is preliminary and was allocated using information currently available. Further information related to legal accruals, taxes and other statutory assessments may lead to an adjustment of the purchase price allocation. We have consolidated the results of operations for PCM since its acquisition on August 30, 2019. The following table reports pro forma information as if the acquisition of PCM had been completed at the beginning of the earliest period presented (in thousands, except per share amounts): Three Months Ended March 31, 2019 Net sales As reported $ 1,685,466 Pro forma $ 2,218,774 Net earnings As reported $ 39,327 Pro forma $ 37,057 Diluted earnings per share As reported $ 1.09 Pro forma $ 1.03 Changes in Goodwill and Intangible Assets Other than the goodwill and intangible assets recorded in conjunction with the acquisitions of vNext and PCM, the only other change in consolidated goodwill and intangible assets as of March 31, 2020 compared to the balance as of December 31, 2019 resulted from foreign currency translation adjustments associated with the balances in our North America, EMEA and APAC operating segments. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | 13. Subsequent Event On April 23, 2020 we entered into an agreement for the group sale of our properties in Tempe, Arizona, and El Segundo and Santa Monica, California |
Basis of Presentation and Rec_2
Basis of Presentation and Recently Issued Accounting Standards (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In December 2019, the Financial Accounting Standards Board’s (“FASB”) issued Accounting Standard Update (“ASU”) No. 2019-12, “Simplifying the Accounting for Income Taxes.” The new standard is intended to simplify various aspects of accounting for income taxes by removing specific exceptions and amending certain requirements. The new standard is effective for interim and annual periods beginning after December 15, 2020, and early adoption is permitted. We do not expect this new standard to have a material effect on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses.” The new standard is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held at each reporting date. The new standard is effective for interim and annual periods beginning after December 15, 2019, and early adoption is permitted. We adopted the new standard as of January 1, 2020. The adoption of this new standard did not have a material effect on our consolidated financial statements. In November 2019, the FASB issued ASU No. 2019-11, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses.” The new standard provides amendments to the reporting of expected recoveries. The new standard is effective with the adoption of ASU No. 2016-13. We adopted the new standard as of January 1, 2020. The adoption of this new standard did not have a material effect on our consolidated financial statements. In April 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.” The new standard provides changes for how a company considers expected recoveries and contractual extensions or renewal options when estimating expected credit losses. The new standard is effective with the adoption of ASU No. 2016-13. We adopted the new standard as of January 1, 2020. The adoption of this new standard did not have a material effect on our consolidated financial statements. There have been no other material changes in or additions to the recently issued accounting standards 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, 2019 that affect or may affect our current financial statements. |
Sales Recognition (Tables)
Sales Recognition (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Revenue Disaggregated by Reportable Operating Segments | In the following table, revenue is disaggregated by our reportable operating segments, which are primarily defined by Three Months Ended March 31, 2020 North America EMEA APAC Consolidated Major Offerings Hardware $ 1,128,486 $ 174,969 $ 7,746 $ 1,311,201 Software 305,163 201,082 30,870 537,115 Services 240,732 42,835 12,168 295,735 $ 1,674,381 $ 418,886 $ 50,784 $ 2,144,051 Major Client Groups Large Enterprise / Corporate $ 1,160,748 $ 292,288 $ 13,025 $ 1,466,061 Small and Medium-Sized Businesses 386,076 17,742 13,654 417,472 Public Sector 127,557 108,856 24,105 260,518 $ 1,674,381 $ 418,886 $ 50,784 $ 2,144,051 Revenue Recognition based on acting as Principal or Agent in the Transaction Gross revenue recognition (Principal) $ 1,600,514 $ 392,259 $ 45,754 $ 2,038,527 Net revenue recognition (Agent) 73,867 26,627 5,030 105,524 $ 1,674,381 $ 418,886 $ 50,784 $ 2,144,051 Three Months Ended March 31, 2019 North America EMEA APAC Consolidated Major Offerings Hardware $ 748,337 $ 171,525 $ 6,518 $ 926,380 Software 322,079 183,148 35,065 540,292 Services 172,025 35,502 11,267 218,794 $ 1,242,441 $ 390,175 $ 52,850 $ 1,685,466 Major Client Groups Large Enterprise / Corporate $ 976,841 $ 260,607 $ 13,307 $ 1,250,755 Small and Medium-Sized Businesses 168,483 20,502 13,389 202,374 Public Sector 97,117 109,066 26,154 232,337 $ 1,242,441 $ 390,175 $ 52,850 $ 1,685,466 Revenue Recognition based on acting as Principal or Agent in the Transaction Gross revenue recognition (Principal) $ 1,182,078 $ 367,165 $ 47,866 $ 1,597,109 Net revenue recognition (Agent) 60,363 23,010 4,984 88,357 $ 1,242,441 $ 390,175 $ 52,850 $ 1,685,466 |
Summary of Information about Receivables and Contract Liabilities | The following table provides information about receivables and contract liabilities as of March 31, 2020 and December 31, 2019 (in thousands): March 31, December 31, 2020 2019 Current receivables, which are included in “Accounts receivable, net” $ 2,464,377 $ 2,511,383 Non-current receivables, which are included in “Other assets” 110,861 154,417 Contract liabilities, which are included in “Accrued expenses and other current liabilities” and “Other liabilities” 94,243 84,814 |
Summary of Changes in Contract Liabilities from Contract with Customers | C hanges in the contract liabilities balances during the three months ended March 31, 2020 are as follows (in thousands): Increase (Decrease) Contract Liabilities Balances at December 31, 2019 $ 84,814 Reclassification of the beginning contract liabilities to revenue, as the result of performance obligations satisfied (18,864 ) Cash received in advance and not recognized as revenue 28,293 Balances at March 31, 2020 $ 94,243 |
Summary of Estimated Net Sales Related to Performance Obligation | The following table includes estimated net sales related to performance obligations that are unsatisfied (or partially unsatisfied) as of March 31, 2020 that are expected to be recognized in the future (in thousands): Services Remainder of 2020 $ 83,311 2021 33,744 2022 19,039 2023 and thereafter 11,548 Total remaining performance obligations $ 147,642 |
Net Earnings Per Share ("EPS")
Net Earnings Per Share ("EPS") (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of Denominators of Basic and Diluted EPS Calculations | A reconciliation of the denominators of the basic and diluted EPS calculations follows (in thousands, except per share data): Three Months Ended March 31, 2020 2019 Numerator: Net earnings $ 33,961 $ 39,327 Denominator: Weighted average shares used to compute basic EPS 35,233 35,609 Dilutive potential common shares due to dilutive RSUs, net of tax effect 413 494 Weighted average shares used to compute diluted EPS 35,646 36,103 Net earnings per share: Basic $ 0.96 $ 1.10 Diluted $ 0.95 $ 1.09 |
Debt, Inventory Financing Fac_2
Debt, Inventory Financing Facilities, Finance Leases and Other Financing Obligations (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Our long-term debt consists of the following (in thousands): March 31, 2020 December 31, 2019 ABL revolving credit facility $ 460,141 $ 570,706 Convertible senior notes due 2025 287,670 284,836 Finance leases and other financing obligations 3,436 3,822 Total 751,247 859,364 Less: current portion of long-term debt (1,700 ) (1,691 ) Long-term debt $ 749,547 $ 857,673 |
Schedule of Convertible Senior Notes Balances | The notes consist of the following balances reported within the consolidated balance sheet as of March 31, 2020 (in thousands): Liability: Principal $ 350,000 Less: debt discount and issuance costs, net of accumulated accretion (62,330 ) Net carrying amount $ 287,670 Equity, net of deferred tax $ 44,731 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Schedule of Financial Statement Classification of Lease Balances With Consolidated Balance Sheet | The following table provides information about the financial statement classification of our lease balances reported within the consolidated balance sheets as of March 31, 2020 and December 31, 2019 (in thousands): Leases Classification March 31, 2020 December 31, 2019 Assets Operating lease assets Other assets $ 89,869 $ 74,684 Finance lease assets Property and equipment (a) 2,973 3,297 Total lease assets $ 92,842 $ 77,981 Liabilities Current Operating lease liabilities Accrued expenses and other current liabilities $ 21,000 $ 19,648 Finance lease liabilities Current portion of long-term debt 1,700 1,691 Non-current Operating lease liabilities Other liabilities 74,114 60,285 Finance lease liabilities Long-term debt 1,736 2,131 Total lease liabilities $ 98,550 $ 83,755 (a) Recorded net of accumulated amortization of $1,185,000 and $861,000 as of March 31, 2020 and December 31, 2019, respectively. |
Schedule of Financial Statement Classification of Lease Balances With Consolidated Statement of Operations | The following table provides information about the financial statement classification of our lease expenses reported within the consolidated statement of operations for the three months ended March 31, 2020 and 2019 (in thousands): Lease cost Classification Three months ended March 31, 2020 Three months ended March 31, 2019 Operating lease cost (a) (b) Selling and administrative expenses $ 6,514 $ 4,918 Finance lease cost Amortization of leased assets Selling and administrative expenses 324 171 Interest on lease liabilities Interest expense, net 32 27 Total lease cost $ 6,870 $ 5,116 (a) Includes immaterial amounts recorded to cost of goods sold. (b) Excludes short-term and variable lease costs, which are immaterial. |
Schedule of Future Minimum Lease Payments Under Non-cancelable Leases | Future minimum lease payments under non-cancelable leases as of March 31, 2020 are as follows (in thousands): Operating leases Finance leases Total Remainder of 2020 $ 18,308 $ 1,368 $ 19,676 2021 21,199 1,077 22,276 2022 18,287 645 18,932 2023 12,742 449 13,191 2024 7,917 45 7,962 After 2024 27,991 — 27,991 Total lease payments 106,444 3,584 110,028 Less: Interest (11,330 ) (148 ) (11,478 ) Present value of lease liabilities $ 95,114 $ 3,436 $ 98,550 Operating lease payments include $13.4 million related to options to extend lease terms that are reasonably certain of being exercised. |
Schedule of Weighted Average Remaining Term and Discount Rates | The following table provides information about the remaining lease terms and discount rates applied as of March 31, 2020: March 31, 2020 March 31, 2019 Weighted average remaining lease term (years) Operating leases 6.29 6.58 Finance leases 2.74 2.19 Weighted average discount rate (%) Operating leases 3.49 3.86 Finance leases 3.61 4.84 |
Schedule of Other Information Related to Leases | The following table provides other information related to leases for the three months ended March 31, 2020 and 2019 (in thousands): Three months ended March 31, 2020 Three months ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,582 $ 4,457 Leased assets obtained in exchange for new operating lease liabilities $ 21,294 $ 1,768 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Pre-tax Amounts by Operating Segment for Stock-Based Compensation | We recorded the following pre-tax amounts in selling and administrative expenses for stock-based compensation, by operating segment, in the accompanying consolidated financial statements (in thousands): Three Months Ended March 31, 2020 2019 North America $ 3,390 $ 3,123 EMEA 878 870 APAC 141 122 Total Consolidated $ 4,409 $ 4,115 |
Summary of Restricted Stock Units Activity | The following table summarizes our RSU activity during the three months ended March 31, 2020: Number Weighted Average Grant Date Fair Value Fair Value Nonvested at January 1, 2020 923,400 $ 45.58 Granted (a) 291,648 58.58 Vested, including shares withheld to cover taxes (320,623 ) 41.49 $ 13,302,648 (b) Forfeited (5,777 ) 46.50 Nonvested at March 31, 2020 (a) 888,648 51.32 $ 37,438,740 (c) (a) Includes 92,315 RSUs subject to remaining performance conditions. The number of RSUs subject to performance conditions are based on the Company achieving 100% of its 2020 targeted financial results. These RSUs will be awarded at 100% this annual period due to the completion of a significant acquisition in the period. ( b ) The aggregate 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 of the nonvested RSUs and the RSUs expected to vest represents the total pre-tax fair value, based on our closing stock price of $42.13 as of March 31, 2020, which would have been received by holders of RSUs had all such holders sold their underlying shares on that date. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Net Sales by Offering for North America, EMEA and APAC | The following table summarizes net sales by offering for North America, EMEA and APAC for the three months ended March 31, 2020 and 2019 (in thousands): North America EMEA APAC Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31, Sales Mix 2020 2019 2020 2019 2020 2019 Hardware $ 1,128,486 $ 748,337 $ 174,969 $ 171,525 $ 7,746 $ 6,518 Software 305,163 322,079 201,082 183,148 30,870 35,065 Services 240,732 172,025 42,835 35,502 12,168 11,267 $ 1,674,381 $ 1,242,441 $ 418,886 $ 390,175 $ 50,784 $ 52,850 |
Financial Information about Reportable Operating Segments | The following tables present our results of operations by reportable operating segment for the periods indicated (in thousands): Three Months Ended March 31, 2020 North America EMEA APAC Consolidated Net sales: Products $ 1,433,649 $ 376,051 $ 38,616 $ 1,848,316 Services 240,732 42,835 12,168 295,735 Total net sales 1,674,381 418,886 50,784 2,144,051 Costs of goods sold: Products 1,288,197 345,749 36,292 1,670,238 Services 129,256 14,363 4,858 148,477 Total costs of goods sold 1,417,453 360,112 41,150 1,818,715 Gross profit 256,928 58,774 9,634 325,336 Operating expenses: Selling and administrative expenses 211,203 50,244 7,416 268,863 Severance and restructuring expenses 2,122 6 16 2,144 Acquisition and integration related expenses 1,262 204 — 1,466 Earnings from operations $ 42,341 $ 8,320 $ 2,202 $ 52,863 Three Months Ended March 31, 2019 North America EMEA APAC Consolidated Net sales: Products $ 1,070,416 $ 354,673 $ 41,583 $ 1,466,672 Services 172,025 35,502 11,267 218,794 Total net sales 1,242,441 390,175 52,850 1,685,466 Costs of goods sold: Products 974,701 324,038 38,569 1,337,308 Services 85,133 9,154 5,399 99,686 Total costs of goods sold 1,059,834 333,192 43,968 1,436,994 Gross profit 182,607 56,983 8,882 248,472 Operating expenses: Selling and administrative expenses 136,950 47,145 6,968 191,063 Severance and restructuring expenses 331 (85 ) 124 370 Earnings from operations $ 45,326 $ 9,923 $ 1,790 $ 57,039 |
Summary of Total Assets by Reportable Operating Segment | The following is a summary of our total assets by reportable operating segment (in thousands): March 31, 2020 December 31, 2019 North America $ 3,977,876 $ 3,814,408 EMEA 781,651 699,856 APAC 159,268 123,349 Corporate assets and intercompany eliminations, net (861,777 ) (459,434 ) Total assets $ 4,057,018 $ 4,178,179 |
Pre-Tax Depreciation and Amortization by Operating Segment | We recorded the following pre-tax amounts, by reportable operating segment, for depreciation and amortization in the accompanying consolidated financial statements (in thousands): Three Months Ended March 31, 2020 2019 Depreciation and amortization of property and equipment: North America $ 5,826 $ 3,957 EMEA 1,328 955 APAC 135 132 7,289 5,044 Amortization of intangible assets: North America 9,493 3,636 EMEA 506 69 APAC 109 118 10,108 3,823 Total $ 17,397 $ 8,867 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Summary of Purchase Price and Estimated Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the purchase price and the estimated fair value of the assets acquired and liabilities assumed at the date of acquisition (in thousands): Purchase price net of cash and cash equivalents acquired $ 660,925 Fair value of net assets acquired: Current assets $ 532,433 Identifiable intangible assets - see description below 191,370 Property and equipment 91,213 Other assets 32,699 Current liabilities (368,647 ) Long-term liabilities, including deferred taxes (63,623 ) Total fair value of net assets acquired 415,445 Excess purchase price over fair value of net assets acquired ("goodwill") $ 245,480 |
Summary of Pro Forma Information | The following table reports pro forma information as if the acquisition of PCM had been completed at the beginning of the earliest period presented (in thousands, except per share amounts): Three Months Ended March 31, 2019 Net sales As reported $ 1,685,466 Pro forma $ 2,218,774 Net earnings As reported $ 39,327 Pro forma $ 37,057 Diluted earnings per share As reported $ 1.09 Pro forma $ 1.03 |
Basis of Presentation and Rec_3
Basis of Presentation and Recently Issued Accounting Standards - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2020Segment | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Number of operating segments | 3 |
VNext [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Business acquisition, effective date of acquisition | Feb. 28, 2020 |
PCM [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Business acquisition, effective date of acquisition | Aug. 30, 2019 |
Sales Recognition - Summary of
Sales Recognition - Summary of Revenue Disaggregated by Reportable Operating Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | $ 2,144,051 | $ 1,685,466 |
Gross Revenue Recognition (Principal) [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 2,038,527 | 1,597,109 |
Net Revenue Recognition (Agent) [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 105,524 | 88,357 |
Large Enterprise / Corporate [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 1,466,061 | 1,250,755 |
Public Sector [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 260,518 | 232,337 |
Small and Medium-Sized Businesses [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 417,472 | 202,374 |
North America Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 1,674,381 | 1,242,441 |
North America Segment [Member] | Gross Revenue Recognition (Principal) [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 1,600,514 | 1,182,078 |
North America Segment [Member] | Net Revenue Recognition (Agent) [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 73,867 | 60,363 |
North America Segment [Member] | Large Enterprise / Corporate [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 1,160,748 | 976,841 |
North America Segment [Member] | Public Sector [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 127,557 | 97,117 |
North America Segment [Member] | Small and Medium-Sized Businesses [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 386,076 | 168,483 |
EMEA Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 418,886 | 390,175 |
EMEA Segment [Member] | Gross Revenue Recognition (Principal) [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 392,259 | 367,165 |
EMEA Segment [Member] | Net Revenue Recognition (Agent) [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 26,627 | 23,010 |
EMEA Segment [Member] | Large Enterprise / Corporate [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 292,288 | 260,607 |
EMEA Segment [Member] | Public Sector [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 108,856 | 109,066 |
EMEA Segment [Member] | Small and Medium-Sized Businesses [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 17,742 | 20,502 |
APAC Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 50,784 | 52,850 |
APAC Segment [Member] | Gross Revenue Recognition (Principal) [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 45,754 | 47,866 |
APAC Segment [Member] | Net Revenue Recognition (Agent) [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 5,030 | 4,984 |
APAC Segment [Member] | Large Enterprise / Corporate [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 13,025 | 13,307 |
APAC Segment [Member] | Public Sector [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 24,105 | 26,154 |
APAC Segment [Member] | Small and Medium-Sized Businesses [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 13,654 | 13,389 |
Hardware Net Sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 1,311,201 | 926,380 |
Hardware Net Sales [Member] | North America Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 1,128,486 | 748,337 |
Hardware Net Sales [Member] | EMEA Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 174,969 | 171,525 |
Hardware Net Sales [Member] | APAC Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 7,746 | 6,518 |
Software Net Sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 537,115 | 540,292 |
Software Net Sales [Member] | North America Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 305,163 | 322,079 |
Software Net Sales [Member] | EMEA Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 201,082 | 183,148 |
Software Net Sales [Member] | APAC Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 30,870 | 35,065 |
Services Net Sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 295,735 | 218,794 |
Services Net Sales [Member] | North America Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 240,732 | 172,025 |
Services Net Sales [Member] | EMEA Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | 42,835 | 35,502 |
Services Net Sales [Member] | APAC Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue | $ 12,168 | $ 11,267 |
Sales Recognition - Summary o_2
Sales Recognition - Summary of Information about Receivables and Contract Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Disaggregation of Revenue [Line Items] | ||
Current receivables, which are included in “Accounts receivable, net” | $ 2,464,377 | $ 2,511,383 |
Contract liabilities, which are included in “Accrued expenses and other current liabilities” and “Other liabilities” | 94,243 | 84,814 |
Accounts Receivable, Net [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Current receivables, which are included in “Accounts receivable, net” | 2,464,377 | 2,511,383 |
Other Assets [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Non-current receivables, which are included in “Other assets” | 110,861 | 154,417 |
Accrued Expenses and Other Current Liabilities and Other Liabilities [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Contract liabilities, which are included in “Accrued expenses and other current liabilities” and “Other liabilities” | $ 94,243 | $ 84,814 |
Sales Recognition - Summary o_3
Sales Recognition - Summary of Changes in Contract Liabilities from Contract with Customers (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Revenue From Contract With Customer [Abstract] | |
Beginning balance, Contract Liabilities | $ 84,814 |
Reclassification of the beginning contract liabilities to revenue, as the result of performance obligations satisfied, Contract Liabilities | (18,864) |
Cash received in advance and not recognized as revenue, Contract Liabilities | 28,293 |
Ending balance, Contract Liabilities | $ 94,243 |
Sales Recognition - Summary o_4
Sales Recognition - Summary of Estimated Net Sales Related to Performance Obligation (Detail) - Services [Member] $ in Thousands | Mar. 31, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligations | $ 147,642 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligations | $ 83,311 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligations | $ 33,744 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligations | $ 19,039 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligations | $ 11,548 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Sales Recognition - Summary o_5
Sales Recognition - Summary of Estimated Net Sales Related to Performance Obligation (Detail 1) $ in Thousands | Mar. 31, 2020USD ($) |
Services [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligations | $ 147,642 |
Sales Recognition - Additional
Sales Recognition - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2020 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Description of expected duration | With the exception of remaining performance obligations associated with our OneCall Support Services contracts which are included in the table above regardless of original duration, remaining performance obligations that have original expected durations of one year or less are not included in the table above. Amounts not included in the table above have an average original expected duration of nine months. |
Time and material contracts expected duration | 15 months |
Assets Held for Sale - Addition
Assets Held for Sale - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Long Lived Assets Held For Sale [Line Items] | |
Proceeds from sale of property | $ 14,218,000 |
Irvine, California Property [Member] | |
Long Lived Assets Held For Sale [Line Items] | |
Proceeds from sale of property | 14,218,000 |
Other Current Assets [Member] | |
Long Lived Assets Held For Sale [Line Items] | |
Properties held for sale | $ 68,916,000 |
Net Earnings Per Share ("EPS"_2
Net Earnings Per Share ("EPS") - Reconciliation of Denominators of Basic and Diluted EPS Calculations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator: | ||
Net earnings | $ 33,961 | $ 39,327 |
Denominator: | ||
Weighted average shares used to compute basic EPS | 35,233 | 35,609 |
Dilutive potential common shares due to dilutive RSUs, net of tax effect | 413 | 494 |
Weighted average shares used to compute diluted EPS | 35,646 | 36,103 |
Net earnings per share: | ||
Basic | $ 0.96 | $ 1.10 |
Diluted | $ 0.95 | $ 1.09 |
Net Earnings Per Share ("EPS"_3
Net Earnings Per Share ("EPS") - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restricted Stock Units (RSUs) [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
RSUs excluded from the diluted EPS calculations | 86,000 | 164,000 |
Debt, Inventory Financing Fac_3
Debt, Inventory Financing Facilities, Finance Leases and Other Financing Obligations - Long-Term Debt (Detail) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Long-term debt | ||
Finance leases and other financing obligations | $ 3,436,000 | $ 3,822,000 |
Total | 751,247,000 | 859,364,000 |
Less: current portion of long-term debt | (1,700,000) | (1,691,000) |
Long-term debt | 749,547,000 | 857,673,000 |
ABL Facility [Member] | ||
Long-term debt | ||
Revolving credit facility | 460,141,000 | 570,706,000 |
Convertible Senior Notes due 2025 [Member] | ||
Long-term debt | ||
Convertible senior notes due 2025 | $ 287,670,000 | $ 284,836,000 |
Debt, Inventory Financing Fac_4
Debt, Inventory Financing Facilities, Finance Leases and Other Financing Obligations - Additional Information (Detail) | Aug. 30, 2019USD ($) | Aug. 15, 2019USD ($) | Mar. 31, 2020USD ($)sharesd$ / shares | Dec. 31, 2019USD ($) | Aug. 23, 2019USD ($) |
Debt Instrument [Line Items] | |||||
Accounts payable-inventory financing facility | $ 252,912,000 | $ 253,676,000 | |||
Convertible Senior Notes due 2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount of convertible senior notes, issued amount | $ 300,000,000 | $ 350,000,000 | |||
Convertible senior notes, maturity date | Feb. 15, 2025 | ||||
Additional aggregate principal amount of notes issued | $ 50,000,000 | ||||
Convertible senior notes, interest rate | 0.75% | ||||
Convertible senior notes, payable term | payable semiannually, in arrears, on February 15th and August 15th of each year. | ||||
Number of trading days | d | 20 | ||||
Number of consecutive trading days | d | 30 | ||||
Percentage of last reported sale price to conversion price on each applicable trading day | 130.00% | ||||
Principal amount per note used in conversion rate | $ 1,000 | ||||
Debt Conversion, initial conversion rate | shares | 14.6376 | ||||
Conversion price per share | $ / shares | $ 68.32 | ||||
Repurchase price as percentage of principal amount | 100.00% | ||||
Shares issuable upon conversion of debt | shares | 6,788,208 | ||||
Debt instrument, redemption price, percentage of principal amount redeemed | 100.00% | ||||
Convertible senior notes, remaining accretion period of debt discount and issuance cost | 4 years 10 months 15 days | ||||
Convertible senior notes, effective interest rate | 4.325% | ||||
Conversion price per share | $ / shares | $ 68.32 | ||||
Convertible note hedge expiration date | Feb. 15, 2025 | ||||
Payments to convertible note hedge transaction | $ 66,325,000 | ||||
Warrants sold to purchase of additional common stock | shares | 5,123,160 | ||||
Warrant price per share to purchase additional common stock | $ / shares | $ 103.12 | ||||
Warrants expiration date | May 15, 2025 | ||||
Proceeds from sale of warrants | $ 34,440,000 | ||||
Convertible Senior Notes due 2025 [Member] | Scenario One [Member] | |||||
Debt Instrument [Line Items] | |||||
Number of trading days | d | 20 | ||||
Number of consecutive trading days | d | 30 | ||||
Percentage of last reported sale price to conversion price on each applicable trading day | 130.00% | ||||
Convertible Senior Notes due 2025 [Member] | Scenario Two [Member] | |||||
Debt Instrument [Line Items] | |||||
Number of consecutive trading days | d | 5 | ||||
Percentage of last reported sale price to conversion price on each applicable trading day | 98.00% | ||||
Measurement period | 5 days | ||||
Convertible Senior Notes due 2025 [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Option to purchase common stock, shares | shares | 5,123,160 | ||||
ABL Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, borrowing capacity | $ 1,200,000,000 | ||||
Line of credit maturity date | Aug. 30, 2024 | ||||
Amount of facility permitted by qualified receivables | $ 1,200,000,000 | ||||
Line of credit outstanding amount | 460,141,000 | $ 570,706,000 | |||
ABL Facility [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, increase in amount available for borrowing | $ 500,000,000 | ||||
ABL Facility [Member] | Foreign Currency Borrowings [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, borrowing capacity | $ 150,000,000 | ||||
Inventory Financing Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Inventory financing facility maximum borrowing capacity | 490,000,000 | ||||
Accounts payable-inventory financing facility | $ 252,912,000 | ||||
Inventory Financing Facility [Member] | Wells Fargo [Member] | |||||
Debt Instrument [Line Items] | |||||
Inventory financing facility interest rate if balances are not paid within stated vendor terms | prime plus 1.25% | ||||
Inventory financing facility rate if vendor terms not met equal prime plus | 1.25% | ||||
Unsecured Inventory Financing Facility [Member] | Wells Fargo [Member] | |||||
Debt Instrument [Line Items] | |||||
Inventory financing facility maximum borrowing capacity | $ 250,000,000 | ||||
Unsecured Inventory Financing Facility [Member] | MUFG Bank Ltd [Member] | |||||
Debt Instrument [Line Items] | |||||
Inventory financing facility interest rate if balances are not paid within stated vendor terms | prime plus 2.00% | ||||
Inventory financing facility rate if vendor terms not met equal prime plus | 2.00% | ||||
Unsecured Inventory Financing Facility [Member] | Maximum [Member] | MUFG Bank Ltd [Member] | |||||
Debt Instrument [Line Items] | |||||
Accounts payable-inventory financing facility | $ 240,000,000 | ||||
Unsecured Inventory Financing Facility [Member] | Minimum [Member] | MUFG Bank Ltd [Member] | |||||
Debt Instrument [Line Items] | |||||
Accounts payable-inventory financing facility | $ 200,000,000 |
Debt, Inventory Financing Fac_5
Debt, Inventory Financing Facilities, Finance Leases and Other Financing Obligations - Schedule of Convertible Senior Notes Balances (Detail) - Convertible Senior Notes due 2025 [Member] - USD ($) | Mar. 31, 2020 | Aug. 15, 2019 |
Liability: | ||
Principal | $ 350,000,000 | $ 300,000,000 |
Less: debt discount and issuance costs, net of accumulated accretion | (62,330,000) | |
Net carrying amount | 287,670,000 | |
Equity, net of deferred tax | $ 44,731,000 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Lessee Lease Description [Line Items] | |
Operating lease, existence of option to extend | true |
Operating lease, option to extend lease terms, description | Operating lease payments include $13.4 million related to options to extend lease terms that are reasonably certain of being exercised |
Operating lease payments | $ 106,444 |
Options to Extend Lease Terms [Member] | |
Lessee Lease Description [Line Items] | |
Operating lease payments | $ 13,400 |
Minimum [Member] | |
Lessee Lease Description [Line Items] | |
Operating lease renewal term | 1 year |
Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Operating lease renewal term | 5 years |
Leases - Schedule of Financial
Leases - Schedule of Financial Statement Classification of Lease Balances With Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Lessee Lease Description [Line Items] | ||
Total lease assets | $ 92,842 | $ 77,981 |
Total lease liabilities | 98,550 | 83,755 |
Other Assets [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating lease assets | 89,869 | 74,684 |
Property and equipment [Member] | ||
Lessee Lease Description [Line Items] | ||
Finance lease assets | 2,973 | 3,297 |
Accrued expenses and other current liabilities [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating lease liabilities | 21,000 | 19,648 |
Current portion of long-term debt [Member] | ||
Lessee Lease Description [Line Items] | ||
Finance lease liabilities | 1,700 | 1,691 |
Other liabilities [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating lease liabilities | 74,114 | 60,285 |
Long-term debt [Member] | ||
Lessee Lease Description [Line Items] | ||
Finance lease liabilities | $ 1,736 | $ 2,131 |
Leases - Schedule of Financia_2
Leases - Schedule of Financial Statement Classification of Lease Balances With Consolidated Balance Sheet (Parenthetical) (Detail) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Property and equipment [Member] | ||
Lessee Lease Description [Line Items] | ||
Finance lease assets, accumulated amortization | $ 1,185,000 | $ 861,000 |
Leases - Schedule of Financia_3
Leases - Schedule of Financial Statement Classification of Lease Balances With Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Lessee Lease Description [Line Items] | ||
Total lease cost | $ 6,870 | $ 5,116 |
Selling and Administrative Expenses [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating lease cost | 6,514 | 4,918 |
Amortization of leased assets | 324 | 171 |
Interest Expense, Net [Member] | ||
Lessee Lease Description [Line Items] | ||
Interest on lease liabilities | $ 32 | $ 27 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments Under Non-cancelable Leases (Detail) $ in Thousands | Mar. 31, 2020USD ($) |
Operating Lease | |
Remainder of 2020 | $ 18,308 |
2021 | 21,199 |
2022 | 18,287 |
2023 | 12,742 |
2024 | 7,917 |
After 2024 | 27,991 |
Total lease payments | 106,444 |
Less: Interest | (11,330) |
Present value of lease liabilities | 95,114 |
Finance Lease | |
Remainder of 2020 | 1,368 |
2021 | 1,077 |
2022 | 645 |
2023 | 449 |
2024 | 45 |
Total lease payments | 3,584 |
Less: Interest | (148) |
Present value of lease liabilities | 3,436 |
Total | |
Remainder of 2020 | 19,676 |
2021 | 22,276 |
2022 | 18,932 |
2023 | 13,191 |
2024 | 7,962 |
After 2024 | 27,991 |
Total lease payments | 110,028 |
Less: Interest | (11,478) |
Present value of lease liabilities | $ 98,550 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Remaining Term and Discount Rates (Detail) | Mar. 31, 2020 | Mar. 31, 2019 |
Leases [Abstract] | ||
Operating leases, Weighted average remaining lease term (years) | 6 years 3 months 14 days | 6 years 6 months 29 days |
Finance leases, Weighted average remaining lease term (years) | 2 years 8 months 26 days | 2 years 2 months 8 days |
Operating leases, Weighted average discount rate | 3.49% | 3.86% |
Finance leases, Weighted average discount rate | 3.61% | 4.84% |
Leases - Schedule of Cash Flows
Leases - Schedule of Cash Flows Associated With the Company's Leasing Activities (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 6,582 | $ 4,457 |
Leased assets obtained in exchange for new operating lease liabilities | $ 21,294 | $ 1,768 |
Stock-Based Compensation - Pre-
Stock-Based Compensation - Pre-tax Amounts by Operating Segment for Stock-Based Compensation (Detail) - Restricted Stock Units (RSUs) [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense related to restricted stock units (RSUs) | $ 4,409 | $ 4,115 |
Selling and Administrative Expenses [Member] | North America Segment [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense related to restricted stock units (RSUs) | 3,390 | 3,123 |
Selling and Administrative Expenses [Member] | EMEA Segment [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense related to restricted stock units (RSUs) | 878 | 870 |
Selling and Administrative Expenses [Member] | APAC Segment [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense related to restricted stock units (RSUs) | $ 141 | $ 122 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - Restricted Stock Units (RSUs) [Member] | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total compensation cost related to RSU's not yet recognized | $ 37,650,000 |
Weighted average number of years for recognition of outstanding nonvested RSUs | 1 year 5 months 8 days |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Restricted Stock Units Activity (Detail) - Restricted Stock Units (RSUs) [Member] | 3 Months Ended |
Mar. 31, 2020USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested Number, Beginning balance | shares | 923,400 |
Number, Granted | shares | 291,648 |
Number, Vested, including shares withheld to cover taxes | shares | (320,623) |
Number, Forfeited | shares | (5,777) |
Nonvested Number, Ending balance | shares | 888,648 |
Nonvested Weighted Average Grant Date Fair Value, Beginning balance | $ / shares | $ 45.58 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 58.58 |
Weighted Average Grant Date Fair Value, Vested, including shares withheld to cover taxes | $ / shares | 41.49 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 46.50 |
Nonvested Weighted Average Grant Date Fair Value, Ending balance | $ / shares | $ 51.32 |
Fair Value, Vested, including shares withheld to cover taxes | $ | $ 13,302,648 |
Fair Value, Nonvested at end of period | $ | $ 37,438,740 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Restricted Stock Units Activity (Parenthetical) (Detail) | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Closing stock price | $ / shares | $ 42.13 |
Percentage of award vested upon completion of acquisition | 100.00% |
Performance Based Restricted Stock Unit [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total RSUs | shares | 92,315 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Income Tax [Line Items] | |||
Effective tax rate | 20.30% | 23.50% | |
United States federal statutory income tax rate | 21.00% | 21.00% | |
Unrecognized tax benefits | $ 10,180,000 | $ 9,736,000 | |
Unrecognized tax benefits, interest on income taxes accrued | $ 515,000 | $ 442,000 | |
Period during which examination phase of tax audits may conclude, description | Although the timing of the resolutions and/or closures of audits is highly uncertain, it is reasonably possible that the examination phase of these audits may be concluded within the next 12 months, which could increase or decrease the balance of our gross unrecognized tax benefits. | ||
Earliest Tax Year [Member] | |||
Income Tax [Line Items] | |||
Open tax year | 2013 | ||
Latest Tax Year [Member] | |||
Income Tax [Line Items] | |||
Open tax year | 2018 | ||
COVID-19 [Member] | |||
Income Tax [Line Items] | |||
CARES Act, Provide relief of provision relating to net operating loss carrybacks record in discrete tax benefit | $ 1,712,000 |
Share Repurchase Program - Addi
Share Repurchase Program - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Feb. 26, 2020 | |
Equity [Abstract] | |||
Common stock repurchase program, authorized amount | $ 50,000,000 | ||
Common stock repurchase program, number of shares repurchased | 444,813 | 0 | |
Repurchase program, approximate dollar value of shares purchased | $ 24,999,996 | ||
Repurchase program, average price paid per share | $ 56.20 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Number of months of salary paid as severance | from three to twenty-four months |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2020Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Description of major customers net sales | None of our clients exceeded ten percent of consolidated net sales for the three months ended March 31, 2020 or 2019. |
Segment Information - Net Sales
Segment Information - Net Sales by Offering for North America, EMEA and APAC (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue from External Customer [Line Items] | ||
Revenues from external customers | $ 2,144,051 | $ 1,685,466 |
North America Segment [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenues from external customers | 1,674,381 | 1,242,441 |
EMEA Segment [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenues from external customers | 418,886 | 390,175 |
APAC Segment [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenues from external customers | 50,784 | 52,850 |
Hardware Net Sales [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenues from external customers | 1,311,201 | 926,380 |
Hardware Net Sales [Member] | North America Segment [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenues from external customers | 1,128,486 | 748,337 |
Hardware Net Sales [Member] | EMEA Segment [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenues from external customers | 174,969 | 171,525 |
Hardware Net Sales [Member] | APAC Segment [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenues from external customers | 7,746 | 6,518 |
Software Net Sales [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenues from external customers | 537,115 | 540,292 |
Software Net Sales [Member] | North America Segment [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenues from external customers | 305,163 | 322,079 |
Software Net Sales [Member] | EMEA Segment [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenues from external customers | 201,082 | 183,148 |
Software Net Sales [Member] | APAC Segment [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenues from external customers | 30,870 | 35,065 |
Services Net Sales [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenues from external customers | 295,735 | 218,794 |
Services Net Sales [Member] | North America Segment [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenues from external customers | 240,732 | 172,025 |
Services Net Sales [Member] | EMEA Segment [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenues from external customers | 42,835 | 35,502 |
Services Net Sales [Member] | APAC Segment [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenues from external customers | $ 12,168 | $ 11,267 |
Segment Information - Financial
Segment Information - Financial Information about Reportable Operating Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Total net sales | $ 2,144,051 | $ 1,685,466 |
Total costs of goods sold | 1,818,715 | 1,436,994 |
Gross profit | 325,336 | 248,472 |
Operating expenses: | ||
Selling and administrative expenses | 268,863 | 191,063 |
Severance and restructuring expenses | 2,144 | 370 |
Acquisition and integration related expenses | 1,466 | |
Earnings from operations | 52,863 | 57,039 |
Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 1,848,316 | 1,466,672 |
Total costs of goods sold | 1,670,238 | 1,337,308 |
Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 295,735 | 218,794 |
Total costs of goods sold | 148,477 | 99,686 |
North America Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 1,674,381 | 1,242,441 |
Total costs of goods sold | 1,417,453 | 1,059,834 |
Gross profit | 256,928 | 182,607 |
Operating expenses: | ||
Selling and administrative expenses | 211,203 | 136,950 |
Severance and restructuring expenses | 2,122 | 331 |
Acquisition and integration related expenses | 1,262 | |
Earnings from operations | 42,341 | 45,326 |
North America Segment [Member] | Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 1,433,649 | 1,070,416 |
Total costs of goods sold | 1,288,197 | 974,701 |
North America Segment [Member] | Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 240,732 | 172,025 |
Total costs of goods sold | 129,256 | 85,133 |
EMEA Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 418,886 | 390,175 |
Total costs of goods sold | 360,112 | 333,192 |
Gross profit | 58,774 | 56,983 |
Operating expenses: | ||
Selling and administrative expenses | 50,244 | 47,145 |
Severance and restructuring expenses | 6 | (85) |
Acquisition and integration related expenses | 204 | |
Earnings from operations | 8,320 | 9,923 |
EMEA Segment [Member] | Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 376,051 | 354,673 |
Total costs of goods sold | 345,749 | 324,038 |
EMEA Segment [Member] | Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 42,835 | 35,502 |
Total costs of goods sold | 14,363 | 9,154 |
APAC Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 50,784 | 52,850 |
Total costs of goods sold | 41,150 | 43,968 |
Gross profit | 9,634 | 8,882 |
Operating expenses: | ||
Selling and administrative expenses | 7,416 | 6,968 |
Severance and restructuring expenses | 16 | 124 |
Earnings from operations | 2,202 | 1,790 |
APAC Segment [Member] | Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 38,616 | 41,583 |
Total costs of goods sold | 36,292 | 38,569 |
APAC Segment [Member] | Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 12,168 | 11,267 |
Total costs of goods sold | $ 4,858 | $ 5,399 |
Segment Information - Summary o
Segment Information - Summary of Total Assets by Reportable Operating Segment (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 4,057,018 | $ 4,178,179 |
Operating Segments [Member] | North America Segment [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 3,977,876 | 3,814,408 |
Operating Segments [Member] | EMEA Segment [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 781,651 | 699,856 |
Operating Segments [Member] | APAC Segment [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 159,268 | 123,349 |
Intersegment Eliminations [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ (861,777) | $ (459,434) |
Segment Information - Pre-Tax D
Segment Information - Pre-Tax Depreciation and Amortization by Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Depreciation and amortization of property and equipment | $ 7,289 | $ 5,044 |
Amortization of intangible assets | 10,108 | 3,823 |
Depreciation and amortization, total | 17,397 | 8,867 |
North America Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Depreciation and amortization of property and equipment | 5,826 | 3,957 |
Amortization of intangible assets | 9,493 | 3,636 |
EMEA Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Depreciation and amortization of property and equipment | 1,328 | 955 |
Amortization of intangible assets | 506 | 69 |
APAC Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Depreciation and amortization of property and equipment | 135 | 132 |
Amortization of intangible assets | $ 109 | $ 118 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) | Aug. 30, 2019USD ($)OfficeTeammate | Dec. 31, 2019USD ($) | Mar. 31, 2020USD ($) |
Business Acquisition [Line Items] | |||
Goodwill | $ 415,149,000 | $ 413,665,000 | |
PCM [Member] | |||
Business Acquisition [Line Items] | |||
Cash purchase price | $ 745,562,000 | ||
Acquisition, percentage of issued and outstanding shares acquired | 100.00% | ||
Cash and cash equivalents acquired | $ 84,637,000 | ||
Number of office locations globally | Office | 40 | ||
Estimated fair value of net assets acquired | $ 415,445,000 | $ 415,445,000 | |
Identifiable intangible assets | 191,370,000 | ||
Goodwill | 245,480,000 | ||
Tax deductible goodwill | 0 | ||
PCM [Member] | Customer Relationships | |||
Business Acquisition [Line Items] | |||
Goodwill balance due to adjustment in purchase price allocation | $ 56,700,000 | ||
Identifiable intangible assets | $ 178,900,000 | ||
PCM [Member] | Trade Name [Member] | |||
Business Acquisition [Line Items] | |||
Useful Life | 1 year | ||
PCM [Member] | Minimum [Member] | |||
Business Acquisition [Line Items] | |||
Number of teammates | Teammate | 4,000 | ||
PCM [Member] | Minimum [Member] | Customer Relationships | |||
Business Acquisition [Line Items] | |||
Useful Life | 10 years | ||
PCM [Member] | Minimum [Member] | Non-compete Agreements [Member] | |||
Business Acquisition [Line Items] | |||
Useful Life | 2 years | ||
PCM [Member] | Maximum [Member] | Customer Relationships | |||
Business Acquisition [Line Items] | |||
Useful Life | 12 years | ||
PCM [Member] | Maximum [Member] | Non-compete Agreements [Member] | |||
Business Acquisition [Line Items] | |||
Useful Life | 3 years |
Acquisitions - Summary of Purch
Acquisitions - Summary of Purchase Price and Estimated Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) | Aug. 30, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Purchase price net of cash and cash equivalents acquired | $ 6,406,000 | $ 762,000 | ||
Fair value of net assets acquired: | ||||
Excess purchase price over fair value of net assets acquired ("goodwill") | 413,665,000 | $ 415,149,000 | ||
PCM [Member] | ||||
Business Acquisition [Line Items] | ||||
Purchase price net of cash and cash equivalents acquired | $ 660,925,000 | |||
Fair value of net assets acquired: | ||||
Current assets | 532,433,000 | |||
Identifiable intangible assets - see description below | 191,370,000 | |||
Property and equipment | 91,213,000 | |||
Other assets | 32,699,000 | |||
Current liabilities | (368,647,000) | |||
Long-term liabilities, including deferred taxes | (63,623,000) | |||
Total fair value of net assets acquired | 415,445,000 | $ 415,445,000 | ||
Excess purchase price over fair value of net assets acquired ("goodwill") | $ 245,480,000 |
Acquisitions - Summary of Pro F
Acquisitions - Summary of Pro Forma Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Business Acquisition [Line Items] | ||
Net sales, As reported | $ 2,144,051 | $ 1,685,466 |
Net earnings, As reported | $ 33,961 | $ 39,327 |
Diluted earnings per share, As reported | $ 0.95 | $ 1.09 |
PCM [Member] | ||
Business Acquisition [Line Items] | ||
Net sales, As reported | $ 1,685,466 | |
Net sales, Pro forma | 2,218,774 | |
Net earnings, As reported | 39,327 | |
Net earnings, Pro forma | $ 37,057 | |
Diluted earnings per share, As reported | $ 1.09 | |
Diluted earnings per share, Pro forma | $ 1.03 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - USD ($) | Apr. 23, 2020 | Mar. 31, 2020 |
Subsequent Event [Line Items] | ||
Proceeds from sale of property | $ 14,218,000 | |
Subsequent Event [Member] | Tempe, Arizona, and El Segundo and Santa Monica, California Properties [Member] | ||
Subsequent Event [Line Items] | ||
Proceeds from sale of property | $ 86,000,000 |