Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 26, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 0-25092 | |
Entity Registrant Name | INSIGHT ENTERPRISES, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 86-0766246 | |
Entity Address, Address Line One | 2701 E. Insight Way | |
Entity Address, City or Town | Chandler | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85286 | |
City Area Code | 480 | |
Local Phone Number | 333-3000 | |
Title of 12(b) Security | Common stock, par value $0.01 | |
Trading Symbol | NSIT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 32,586,228 | |
Entity Central Index Key | 0000932696 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 256,307 | $ 268,730 |
Accounts receivable, net of allowance for doubtful accounts of $28,397 and $12,623, respectively | 4,143,400 | 3,568,290 |
Inventories | 145,456 | 184,605 |
Contract assets, net | 89,179 | 120,518 |
Other current assets | 265,141 | 189,158 |
Total current assets | 4,899,483 | 4,331,301 |
Long-term contract assets, net | 119,332 | 132,780 |
Property and equipment, net of accumulated depreciation and amortization of $220,600 and $219,591, respectively | 211,852 | 210,061 |
Goodwill | 872,785 | 684,345 |
Intangible assets, net of accumulated amortization of $207,112 and $175,463, respectively | 460,809 | 369,687 |
Long-term accounts receivable | 648,162 | 412,666 |
Other assets | 140,390 | 145,510 |
Total assets | 7,352,813 | 6,286,350 |
Current liabilities: | ||
Accounts payable—trade | 2,973,317 | 2,255,183 |
Accounts payable—inventory financing facilities | 218,553 | 231,850 |
Accrued expenses and other current liabilities | 487,556 | 538,346 |
Current portion of long-term debt | 331,997 | 348,004 |
Total current liabilities | 4,011,423 | 3,373,383 |
Long-term debt | 663,075 | 592,517 |
Deferred income taxes | 52,357 | 27,588 |
Long-term accounts payable | 608,298 | 353,794 |
Other liabilities | 170,115 | 203,335 |
Total liabilities | 5,505,268 | 4,550,617 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value, 3,000 shares authorized; no shares issued | 0 | 0 |
Common stock, $0.01 par value, 100,000 shares authorized; 32,584 shares at June 30, 2024 and $32,590 shares at December 31, 2023 issued and outstanding | 326 | 326 |
Additional paid-in capital | 334,573 | 328,607 |
Retained earnings | 1,569,774 | 1,448,412 |
Accumulated other comprehensive loss – foreign currency translation adjustments | (57,128) | (41,612) |
Total stockholders’ equity | 1,847,545 | 1,735,733 |
Total liabilities and stockholders' equity | $ 7,352,813 | $ 6,286,350 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 28,397 | $ 12,623 |
Accumulated depreciation and amortization of property and equipment | 220,600 | 219,591 |
Accumulated amortization of intangible assets | $ 207,112 | $ 175,463 |
Preferred stock, par value ( in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 3,000,000 | 3,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 32,584,000 | 32,590,000 |
Common stock, shares outstanding (in shares) | 32,584,000 | 32,590,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Net sales: | ||||
Total net sales | $ 2,161,662 | $ 2,349,596 | $ 4,541,147 | $ 4,673,543 |
Costs of goods sold: | ||||
Total costs of goods sold | 1,708,297 | 1,916,406 | 3,646,854 | 3,849,038 |
Gross profit | 453,365 | 433,190 | 894,293 | 824,505 |
Operating expenses: | ||||
Selling and administrative expenses | 317,234 | 318,243 | 654,668 | 628,244 |
Severance and restructuring expenses, net | 4,868 | (3,770) | 7,095 | 32 |
Acquisition and integration related expenses | 190 | 106 | 1,471 | 157 |
Earnings from operations | 131,073 | 118,611 | 231,059 | 196,072 |
Non-operating expense (income): | ||||
Interest expense, net | 14,190 | 9,405 | 26,747 | 19,753 |
Other (income) expense, net | (469) | (60) | (1,232) | 692 |
Earnings before income taxes | 117,352 | 109,266 | 205,544 | 175,627 |
Income tax expense | 29,908 | 28,784 | 51,073 | 45,173 |
Net earnings | $ 87,444 | $ 80,482 | $ 154,471 | $ 130,454 |
Net earnings per share: | ||||
Basic (in usd per share) | $ 2.69 | $ 2.43 | $ 4.74 | $ 3.91 |
Diluted (in usd per share) | $ 2.27 | $ 2.17 | $ 4.01 | $ 3.51 |
Shares used in per share calculations: | ||||
Basic (in shares) | 32,565 | 33,101 | 32,580 | 33,403 |
Diluted (in shares) | 38,567 | 37,039 | 38,501 | 37,123 |
Products | ||||
Net sales: | ||||
Total net sales | $ 1,726,435 | $ 1,945,609 | $ 3,690,390 | $ 3,913,254 |
Costs of goods sold: | ||||
Total costs of goods sold | 1,536,270 | 1,749,448 | 3,307,854 | 3,522,177 |
Gross profit | 190,165 | 196,161 | 382,536 | 391,077 |
Services | ||||
Net sales: | ||||
Total net sales | 435,227 | 403,987 | 850,757 | 760,289 |
Costs of goods sold: | ||||
Total costs of goods sold | 172,027 | 166,958 | 339,000 | 326,861 |
Gross profit | $ 263,200 | $ 237,029 | $ 511,757 | $ 433,428 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 87,444 | $ 80,482 | $ 154,471 | $ 130,454 |
Other comprehensive (loss) gain, net of tax: | ||||
Foreign currency translation adjustments | (3,425) | 7,189 | (15,516) | 11,795 |
Total comprehensive income | $ 84,019 | $ 87,671 | $ 138,955 | $ 142,249 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings |
Common stock, beginning balance (in shares) at Dec. 31, 2022 | 34,009 | |||||
Treasury stock, beginning balance (in shares) at Dec. 31, 2022 | 0 | |||||
Beginning balance at Dec. 31, 2022 | $ 1,638,068 | $ 340 | $ 0 | $ 327,872 | $ (58,802) | $ 1,368,658 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes (in shares) | 193 | |||||
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes | (9,005) | $ 2 | (9,007) | |||
Stock-based compensation expense | 16,663 | 16,663 | ||||
Repurchase of treasury stock (in shares) | (1,634) | |||||
Repurchase of treasury stock | (217,108) | $ (217,108) | ||||
Retirement of treasury stock (in shares) | (1,634) | 1,634 | ||||
Retirement of treasury stock | (1) | $ (16) | $ 217,108 | (15,537) | (201,554) | |
Excise tax on stock repurchases | (1,913) | (1,913) | ||||
Foreign currency translation adjustments, net of tax | 11,795 | 11,795 | ||||
Net earnings | 130,454 | 130,454 | ||||
Common stock, ending balance (in shares) at Jun. 30, 2023 | 32,568 | |||||
Treasury stock, ending balance (in shares) at Jun. 30, 2023 | 0 | |||||
Ending balance at Jun. 30, 2023 | 1,568,955 | $ 326 | $ 0 | 318,078 | (47,007) | 1,297,558 |
Common stock, beginning balance (in shares) at Mar. 31, 2023 | 33,261 | |||||
Treasury stock, beginning balance (in shares) at Mar. 31, 2023 | 0 | |||||
Beginning balance at Mar. 31, 2023 | 1,573,598 | $ 333 | $ 0 | 317,283 | (54,196) | 1,310,178 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes (in shares) | 27 | |||||
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes | (1,083) | (1,083) | ||||
Stock-based compensation expense | 9,767 | 9,767 | ||||
Repurchase of treasury stock (in shares) | (720) | |||||
Repurchase of treasury stock | (99,980) | $ (99,980) | ||||
Retirement of treasury stock (in shares) | (720) | 720 | ||||
Retirement of treasury stock | (1) | $ (7) | $ 99,980 | (6,870) | (93,102) | |
Excise tax on stock repurchases | (1,019) | (1,019) | ||||
Foreign currency translation adjustments, net of tax | 7,189 | 7,189 | ||||
Net earnings | 80,482 | 80,482 | ||||
Common stock, ending balance (in shares) at Jun. 30, 2023 | 32,568 | |||||
Treasury stock, ending balance (in shares) at Jun. 30, 2023 | 0 | |||||
Ending balance at Jun. 30, 2023 | $ 1,568,955 | $ 326 | $ 0 | 318,078 | (47,007) | 1,297,558 |
Common stock, beginning balance (in shares) at Dec. 31, 2023 | 32,590 | 32,590 | ||||
Treasury stock, beginning balance (in shares) at Dec. 31, 2023 | 0 | |||||
Beginning balance at Dec. 31, 2023 | $ 1,735,733 | $ 326 | $ 0 | 328,607 | (41,612) | 1,448,412 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes (in shares) | 170 | |||||
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes | (11,010) | $ 2 | (11,012) | |||
Stock-based compensation expense | 16,900 | 16,900 | ||||
Employee stock purchase plan issuances (in shares) | 11 | |||||
Employee stock purchase plan issuances | 2,000 | 2,000 | ||||
Shares issued upon conversion of Convertible Notes (in shares) | 141 | |||||
Shares issued upon conversion of Convertible Notes | 0 | $ 1 | (1) | |||
Shares received from convertible note hedge upon conversion of Notes (in shares) | (141) | |||||
Shares received from convertible note hedge upon conversion of Convertible Notes | 0 | $ (1) | 1 | |||
Repurchase of treasury stock (in shares) | (187) | |||||
Repurchase of treasury stock | (35,000) | $ (35,000) | ||||
Retirement of treasury stock (in shares) | (187) | 187 | ||||
Retirement of treasury stock | 0 | $ (2) | $ 35,000 | (1,889) | (33,109) | |
Excise tax on stock repurchases | (33) | (33) | ||||
Foreign currency translation adjustments, net of tax | (15,516) | (15,516) | ||||
Net earnings | $ 154,471 | 154,471 | ||||
Common stock, ending balance (in shares) at Jun. 30, 2024 | 32,584 | 32,584 | ||||
Treasury stock, ending balance (in shares) at Jun. 30, 2024 | 0 | |||||
Ending balance at Jun. 30, 2024 | $ 1,847,545 | $ 326 | $ 0 | 334,573 | (57,128) | 1,569,774 |
Common stock, beginning balance (in shares) at Mar. 31, 2024 | 32,548 | |||||
Treasury stock, beginning balance (in shares) at Mar. 31, 2024 | 0 | |||||
Beginning balance at Mar. 31, 2024 | 1,755,491 | $ 325 | $ 0 | 326,539 | (53,703) | 1,482,330 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes (in shares) | 30 | |||||
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes | (1,970) | $ 1 | (1,971) | |||
Stock-based compensation expense | 8,857 | 8,857 | ||||
Employee stock purchase plan issuances (in shares) | 6 | |||||
Employee stock purchase plan issuances | 1,088 | 1,088 | ||||
Excise tax on stock repurchases | 60 | 60 | ||||
Foreign currency translation adjustments, net of tax | (3,425) | (3,425) | ||||
Net earnings | $ 87,444 | 87,444 | ||||
Common stock, ending balance (in shares) at Jun. 30, 2024 | 32,584 | 32,584 | ||||
Treasury stock, ending balance (in shares) at Jun. 30, 2024 | 0 | |||||
Ending balance at Jun. 30, 2024 | $ 1,847,545 | $ 326 | $ 0 | $ 334,573 | $ (57,128) | $ 1,569,774 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net earnings | $ 154,471 | $ 130,454 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 46,451 | 29,148 |
Provision for losses on accounts receivable | 5,196 | 2,585 |
Provision for losses on contract assets | 3,038 | 0 |
Non-cash stock-based compensation | 16,900 | 16,663 |
Deferred income taxes | (3,535) | (1,231) |
Amortization of debt issuance costs | 2,590 | 2,430 |
Gain on revaluation of earnout liabilities | (24,207) | 0 |
Other adjustments | (289) | (2,801) |
Changes in assets and liabilities: | ||
Increase in accounts receivable | (598,219) | (368,612) |
Decrease in inventories | 34,366 | 14,596 |
Decrease in contract assets | 42,911 | 1,570 |
(Increase) decrease in long-term accounts receivable | (235,690) | 12,704 |
Increase in other assets | (52,087) | (49,151) |
Increase in accounts payable | 734,222 | 420,349 |
Increase (decrease) in long-term accounts payable | 237,652 | (10,251) |
Decrease in accrued expenses and other liabilities | (70,806) | (10,493) |
Net cash provided by operating activities: | 292,964 | 187,960 |
Cash flows from investing activities: | ||
Proceeds from sale of assets | 3,970 | 15,515 |
Purchases of property and equipment | (18,644) | (13,202) |
Acquisitions, net of cash and cash equivalents acquired | (264,374) | 0 |
Net cash (used in) provided by investing activities: | (279,048) | 2,313 |
Cash flows from financing activities: | ||
Net (repayments) borrowings under inventory financing facilities | (12,987) | 30,848 |
Proceeds from issuance of senior unsecured notes | 500,000 | 0 |
Payment of debt issuance costs | (7,854) | 0 |
Repurchases of common stock | (35,000) | (217,108) |
Repayment of principal on the Convertible Notes | (16,895) | 0 |
Earnout and acquisition related payments | (18,296) | (10,748) |
Other payments | (9,147) | (9,161) |
Net cash used in financing activities: | (20,623) | (161,059) |
Foreign currency exchange effect on cash, cash equivalents and restricted cash balances | (5,728) | 3,050 |
(Decrease) increase in cash, cash equivalents and restricted cash | (12,435) | 32,264 |
Cash, cash equivalents and restricted cash at beginning of period | 270,785 | 165,718 |
Cash, cash equivalents and restricted cash at end of period | 258,350 | 197,982 |
ABL revolving credit facility | ||
Cash flows from financing activities: | ||
Borrowings on ABL revolving credit facility | 2,451,966 | 2,259,356 |
Repayments on ABL revolving credit facility | $ (2,872,410) | $ (2,214,246) |
Basis of Presentation and Recen
Basis of Presentation and Recently Issued Accounting Standards | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Recently Issued Accounting Standards | Basis of Presentation and Recently Issued Accounting Standards We help our clients accelerate their digital journey to modernize their businesses and maximize the value of technology. We serve these clients in North America; Europe, the Middle East and Africa (“EMEA”); and Asia-Pacific (“APAC”). As a Fortune 500-ranked solutions integrator, we enable secure, end-to-end digital transformation and meet the needs of our clients through a comprehensive portfolio of solutions, far-reaching partnerships and 36 years of broad IT expertise. We amplify our solutions and services with global scale, local expertise and our e-commerce experience, enabling our clients to realize their digital ambitions in multiple ways. Our company is organized in the following three operating segments, which are primarily defined by their related geographies: Operating Segment Geography North America United States and Canada EMEA Europe, Middle East and Africa APAC Asia-Pacific Our offerings in North America and certain countries in EMEA and APAC include hardware, software and services, including cloud solutions. Our offerings in the remainder of our EMEA and APAC segments consist largely of software and certain software-related services and cloud solutions. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly our financial position as of June 30, 2024 and our results of operations for the three and six months ended June 30, 2024 and 2023 and cash flows for the six months ended June 30, 2024 and 2023. The consolidated balance sheet as of December 31, 2023 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, 2023. 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, valuation of acquired assets and assumed liabilities, including intangible assets and goodwill and impairment of long-lived assets, including purchased intangibles and goodwill, if indicators of potential impairment exist. Recently Issued Accounting Standards In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures", which requires public entities to disclose information about their reportable segments' significant expenses on an interim and annual basis. The amendments aim to improve interim disclosure requirements, clarify situations where an entity can reveal multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and include other disclosure requirements. The main objective of the amendments is to assist investors in understanding the entity's overall performance and evaluate potential future cash flows. The guidance is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024 with early adoption being permitted. We did not early adopt this guidance. The updated guidance is not expected to have a material effect on the Company's consolidated financial statements or disclosures. 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, 2023 that affect or may affect our current financial statements. |
Receivables, Contract Liabiliti
Receivables, Contract Liabilities and Performance Obligations | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Receivables, Contract Liabilities and Performance Obligations | Receivables, Contract Liabilities and Performance Obligations Contract Balances The following table provides information about receivables and contract liabilities as of June 30, 2024 and December 31, 2023 (in thousands): June 30, December 31, Current receivables, which are included in “Accounts receivable, net” $ 4,143,400 $ 3,568,290 Contract assets, net 89,179 120,518 Long-term accounts receivable 648,162 412,666 Long-term contract assets, net 119,332 132,780 Contract liabilities, which are included in “Accrued expenses and other current liabilities” and “Other liabilities” 113,507 107,217 Significant changes in the gross contract assets balances during the six months ended June 30, 2024 are as follows (in thousands): Contract Balances at December 31, 2023 $ 272,287 Reclassification of beginning contract assets to receivables, as a result of rights to consideration becoming unconditional (59,355) Contract assets recognized, net of reclassification to receivables 16,893 Measurement period adjustments to acquired contract assets (4,839) Balances at June 30, 2024 $ 224,986 Contract assets consist of amounts the Company is entitled to for the resale of third-party consumption-based services, prior to payment becoming unconditional. In these transactions, the Company invoices clients for the gross amount of consideration it is responsible to collect, including amounts ultimately passed on to the third-party service providers. As of June 30, 2024, contract assets, net of allowances, were $208,511,000. Gross contract assets by our internal risk ratings as of June 30, 2024 are summarized as follows (in thousands): Contract assets Low risk $ 36,506 Moderate risk 53,713 High risk 134,767 Total contract assets $ 224,986 Changes in the contract liabilities balances during the six months ended June 30, 2024 are as follows (in thousands): Contract Balances at December 31, 2023 $ 107,217 Reclassification of the beginning contract liabilities to revenue, as the result of performance obligations satisfied (55,476) Cash received in advance and not recognized as revenue 61,766 Balances at June 30, 2024 $ 113,507 During the six months ended June 30, 2023, the Company recognized revenue of $43,949,000 related to its contract liabilities. Transaction price allocated to the remaining performance obligations The following table includes estimated net sales related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2024 that are expected to be recognized in the future (in thousands): Services Remainder of 2024 $ 67,423 2025 60,114 2026 28,754 2027 and thereafter 39,863 Total remaining performance obligations $ 196,154 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, the 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 eight months. Additionally, for our time and material services contracts, whereby we have the right to consideration from a client in an amount that corresponds directly with the value to the client of our performance completed to date, we recognized revenue in the amount to which we have a right to invoice as of June 30, 2024 and do not disclose information about related remaining performance obligations in the table above. Our time and material contracts have an average expected duration of 20 months. The majority of our backlog historically has been, and continues to be, open cancellable 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 cancellable purchase orders, which do not qualify for revenue recognition, in the table above. |
Net Earnings Per Share
Net Earnings Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Net Earnings Per Share | Net Earnings Per Share Basic earnings per share ("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”) and certain shares underlying the Convertible Notes and the warrants relating to the Call Spread Transactions, as applicable. A reconciliation of the denominators of the basic and diluted EPS calculations follows (in thousands, except per share data): Three Months Ended Six Months Ended 2024 2023 2024 2023 Numerator: Net earnings $ 87,444 $ 80,482 $ 154,471 $ 130,454 Denominator: Weighted average shares used to compute basic EPS 32,565 33,101 32,580 33,403 Dilutive potential common shares due to dilutive RSUs, net of tax effect 275 234 312 275 Dilutive potential common shares due to the Convertible Notes 3,322 2,516 3,275 2,413 Dilutive potential common shares due to the Warrants 2,405 1,188 2,334 1,032 Weighted average shares used to compute diluted EPS 38,567 37,039 38,501 37,123 Net earnings per share: Basic $ 2.69 $ 2.43 $ 4.74 $ 3.91 Diluted $ 2.27 $ 2.17 $ 4.01 $ 3.51 For the three and six months ended June 30, 2024, 4,182 and 14,672, respectively, of our RSUs were excluded from the diluted EPS calculations because their inclusion would have been anti-dilutive. For the three and six months ended June 30, 2023, 67,000 and 76,000, respectively, |
Debt, Inventory Financing Facil
Debt, Inventory Financing Facilities, Finance Leases and Other Financing Obligations | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt, Inventory Financing Facilities, Finance Leases and Other Financing Obligations | Debt, Inventory Financing Facilities, Finance Leases and Other Financing Obligations Debt Our long-term debt consists of the following (in thousands): June 30, December 31, ABL revolving credit facility $ 171,283 $ 591,500 Senior unsecured notes due 2032 491,781 — Convertible senior notes due 2025 331,987 347,988 Finance leases and other financing obligations 21 1,033 Total 995,072 940,521 Less: current portion of long-term debt (331,997) (348,004) Long-term debt $ 663,075 $ 592,517 On May 14, 2024, we entered into a Fourth Amendment to the Credit Agreement (as amended, the "credit agreement") to modify our senior secured revolving credit facility (the “ABL facility”). The amendment, among other things, releases certain immaterial guarantors from their obligations under the credit agreement. Our maximum borrowing amount under the ABL facility is $1,800,000,000, including a maximum borrowing capacity that could be used for borrowing in certain foreign currencies of $350,000,000 and extending the maturity date. 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 $750,000,000, 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 ABL facility provides for an uncommitted first-in, last-out revolving facility in an aggregate amount of up to $100,000,000 . 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 July 22, 2027. As of June 30, 2024, eligible accounts receivable and inventory permitted availability to the full $1,800,000,000 facility amount, of which $171,283,000 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. Senior Unsecured Notes due 2032 On May 20, 2024, we issued $500,000,000 aggregate principal amount of 6.625% Senior Notes due 2032 (the "Senior Notes") that mature on May 15, 2032. The Senior Notes are senior unsecured obligations of the Company and guaranteed by each of the Company's existing and future direct and indirect U.S. subsidiaries that is or becomes a guarantor or borrower under the ABL facility, subject to certain exceptions. The net proceeds from the offering were used to repay a portion of the outstanding borrowings under the ABL facility. The Senior Notes were issued pursuant to an indenture (the "Senior Notes Indenture") containing certain covenants that limit the Company's ability to, subject to certain exceptions, create, incur, or assume liens to secure debt, among other things. The Senior Notes bear interest at an annual rate of 6.625% payable semiannually, in arrears, on May 15 th and November 15 th of each year beginning on November 15, 2024. The Company may redeem the Senior Notes prior to May 15, 2027, with an amount equal to the net cash proceeds received by the Company from certain equity offerings at a redemption price equal to 106.625% of the principal amount of such notes, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, in an aggregate principal amount for all such redemptions not to exceed 40% of the aggregate principal amount of the Senior Notes. The Senior Notes are subject to redemption at specified prices on or after May 15, 2027 plus accrued and unpaid interest, if any, on such notes redeemed, to, but excluding, the applicable redemption date. In addition, at any time prior to May 15, 2027, the Company may, on one or more occasions, redeem the Senior Notes in whole or in part, at its option, upon notice, at a redemption price equal to 100% of the principal amount of such notes plus a “make-whole” premium as specified in the Senior Notes Indenture and accrued and unpaid interest, if any, to, but excluding, the redemption date. If the Company experiences certain change of control events, together with a ratings decline, as described in the Senior Notes Indenture, the Company will be required to make an offer to repurchase some or all of the Senior Notes at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date. The Senior Notes are subject to certain customary events of default and acceleration clauses. As of June 30, 2024, no such events have occurred. Convertible Senior Notes due 2025 In August 2019, we issued $350,000,000 aggregate principal amount of Convertible Notes (the "Convertible Notes") that mature on February 15, 2025. The Convertible Notes bear interest at an annual rate of 0.75% payable semiannually, in arrears, on February 15 th and August 15 th of each year. The Convertible Notes are general unsecured obligations of Insight and are guaranteed on a senior unsecured basis by Insight Direct USA, Inc., a wholly owned subsidiary of Insight. Prior to the close of business on the business day immediately preceding June 15, 2024, holders of the Convertible Notes could have converted their notes at their option at any time under certain circumstances. Beginning June 15, 2024 until the close of business on the second scheduled trading day immediately preceding the maturity date, the holders may convert their Convertible Notes at any time, regardless of such circumstances. The Convertible Notes mature on February 15, 2025, and as such, the Convertible Notes balance net of unamortized debt issuance costs is classified as a current liability. Upon conversion, we will pay cash equal to the principal amount of the Convertible Notes, plus shares of our common stock for any additional amounts due. The conversion rate will initially be 14.6376 shares of common stock per $1,000 principal amount of the Convertible 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 Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. As of June 30, 2024, 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. In September 2023, an individual Convertible Note holder exercised their option to convert their Convertible Notes in the aggregate principal amount of $16,895,000, which was settled in January 2024. As a result, the principal amount of the Convertible Notes was settled in cash with additional amounts due being settled in shares of our common stock. The Convertible Notes are subject to certain customary events of default and acceleration clauses. As of June 30, 2024, no such events have occurred. The Convertible Notes consist of the following balances reported within the consolidated balance sheets (in thousands): June 30, December 31, Liability: Principal $ 333,105 $ 350,000 Less: debt issuance costs, net of accumulated amortization (1,118) (2,012) Net carrying amount $ 331,987 $ 347,988 In January 2022, we filed an irrevocable settlement election notice with the note holders to inform them of our election to settle the principal amount of the Convertible Notes in cash. The remaining life of the debt issuance cost accretion is approximately 0.62 years. The effective interest rate on the principal of the Convertible Notes is 0.75%. Interest expense resulting from the Convertible Notes reported within the consolidated statement of operations for the three and six months ended June 30, 2024 and 2023 is made up of contractual coupon interest and amortization of debt issuance costs. Convertible Note Hedge and Warrant Transaction In connection and concurrent with the issuance of the Convertible Notes, we entered into 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 Convertible 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 Convertible Notes and reduce potential dilution by effectively increasing the initial conversion price of the Convertible Notes to $103.12 per share of the Company’s common stock. Inventory Financing Facilities We have an unsecured inventory financing facility with MUFG Bank Ltd (“MUFG”) for $280,000,000. We have maximum availability under our unsecured inventory financing facility with PNC Bank, N.A. (“PNC”) of $375,000,000, including a $25,000,000 facility in Canada (the "Canada facility"). We also have an unsecured inventory financing facility with Wells Fargo in EMEA (the "EMEA facility") of $50,000,000. The inventory financing facilities will remain in effect until they are terminated by any of the parties. In the second quarter of 2023, the Company transitioned the reference rate for invoices issued in U.S. Dollars under the PNC facility from LIBOR to the Term Secured Overnight Financing Rate ("Term SOFR") benchmark provisions. If balances are not paid within stated vendor terms (typically 60 days), they will accrue interest at prime plus 2.00% on the MUFG facility, Canadian Overnight Repo Rate Average plus 4.50% on the Canada facility and Term SOFR, EURIBOR, or SONIA, as applicable, plus 4.50% and 0.25% on the PNC (other than the Canada facility) and EMEA facilities, respectively. Amounts outstanding under these facilities are classified separately as accounts payable – inventory financing facilities in the accompanying consolidated balance sheets and within cash flows from financing activities in the accompanying consolidated statements of cash flows. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective tax rates for the three and six months ended June 30, 2024 were 25.5% and 24.8%, respectively. Our effective tax rate was higher than the United States federal statutory rate of 21.0% due primarily to state income taxes and higher taxes on earnings in foreign jurisdictions, partially offset by excess tax benefits on the settlement of employee share-based compensation, tax benefits related to research and development activities, and tax benefits related to the revaluation of certain acquisition earnout liabilities. Our effective tax rates for the three and six months ended June 30, 2023 were 26.3% and 25.7%, respectively. Our effective tax rates were higher than the United States federal statutory rate of 21.0% due primarily to state income taxes 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 June 30, 2024 and December 31, 2023, we had approximately $11,720,000 and $13,947,000, respectively, of unrecognized tax benefits. Of these amounts, approximately $1,458,000 and $1,767,000, respectively, related to accrued interest. In the future, if recognized, the remaining liability associated with uncertain tax positions could affect our effective tax rate. We do not believe there will be any changes to our unrecognized tax benefits over the next 12 months that would have a material effect on our effective tax rate. We are currently under audit in various jurisdictions for tax years 2017 through 2022. 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 | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Share Repurchase Program | Share Repurchase Program On May 18, 2023, we announced that our Board of Directors authorized the repurchase of up to $300,000,000 of our common stock, including $100,000,000 that remained available from prior authorizations. As of June 30, 2024, approximately $165,020,476 remained available for repurchases under our share repurchase plan. 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 number 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 June 30, 2023, we repurchased 720,175 shares of our common stock on the open market at a total cost of $99,980,000 (an average price of $138.83 per share). During the three months ended June 30, 2024, we did not repurchase any shares of our common stock. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contractual In the ordinary course of business, we issue performance bonds to secure our performance under certain contracts or state tax requirements. As of June 30, 2024, we had approximately $29,526,731 of performance bonds outstanding. These bonds are issued on our behalf by a surety company on an unsecured basis; however, if the surety company is ever required to pay out under the bonds, we have contractually agreed to reimburse the surety company. Management believes that payments, if any, related to these performance bonds are not probable at June 30, 2024. Accordingly, we have not accrued any liabilities related to such performance bonds in our consolidated financial statements. The Company has a minimum required purchase commitment of approximately $100,467,000 pursuant to an agreement primarily related to cloud services. The total purchase commitment is required to be met or exceeded during a 5-year period, starting October 1, 2023 through September 30, 2028. At June 30, 2024 we had a remaining purchase commitment of $88,295,000. If total purchases do not meet the required commitment by September 30, 2028, the shortfall must be prepaid by the Company and can be used for further purchases through September 30, 2029. The Company has a minimum required purchase commitment of approximately $40,000,000 pursuant to an agreement primarily related to software as a service. The total purchase commitment is required to be met during a 4-year period, starting November 30, 2022 through November 29, 2026. At June 30, 2024 we had a remaining purchase commitment of $26,123,000. The Company has recorded a contingent liability of approximately $21,236,000 payable to a partner to settle various contractual commitments to resell a minimum amount of cloud services to clients. 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 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 June 30, 2024. 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 related to services provided, interruptions, or outages, 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. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We operate in three reportable geographic operating segments: North America; EMEA; and APAC. Our offerings in North America and certain countries in EMEA and APAC include IT hardware, software and services, including cloud solutions. Our offerings in the remainder of our EMEA and APAC segments consist largely of software and certain software-related services and cloud solutions. In the following table, revenue is disaggregated by our reportable operating segments, which are primarily defined by their related geographies, as well as by major product offering, by major client group and by recognition on either a gross basis as a principal in the arrangement, or on a net basis as an agent, for the three and six months ended June 30, 2024 and 2023 (in thousands): Three Months Ended June 30, 2024 North America EMEA APAC Consolidated Major Offerings Hardware $ 1,037,523 $ 125,074 $ 10,044 $ 1,172,641 Software 365,209 167,182 21,403 553,794 Services 329,625 76,617 28,985 435,227 $ 1,732,357 $ 368,873 $ 60,432 $ 2,161,662 Major Client Groups Large Enterprise / Corporate $ 1,189,407 $ 271,772 $ 23,867 $ 1,485,046 Commercial 359,940 7,788 17,347 385,075 Public Sector 183,010 89,313 19,218 291,541 $ 1,732,357 $ 368,873 $ 60,432 $ 2,161,662 Revenue Recognition based on acting as Principal or Agent in the Transaction Gross revenue recognition (Principal) $ 1,586,437 $ 329,126 $ 48,301 $ 1,963,864 Net revenue recognition (Agent) 145,920 39,747 12,131 197,798 $ 1,732,357 $ 368,873 $ 60,432 $ 2,161,662 Three Months Ended June 30, 2023 North America EMEA APAC Consolidated Major Offerings Hardware $ 1,165,127 $ 132,220 $ 12,926 $ 1,310,273 Software 417,327 196,060 21,949 635,336 Services 314,712 63,446 25,829 403,987 $ 1,897,166 $ 391,726 $ 60,704 $ 2,349,596 Major Client Groups Large Enterprise / Corporate $ 1,321,876 $ 289,519 $ 26,849 $ 1,638,244 Commercial 359,750 3,609 18,138 381,497 Public Sector 215,540 98,598 15,717 329,855 $ 1,897,166 $ 391,726 $ 60,704 $ 2,349,596 Revenue Recognition based on acting as Principal or Agent in the Transaction Gross revenue recognition (Principal) $ 1,767,933 $ 352,085 $ 50,630 $ 2,170,648 Net revenue recognition (Agent) 129,233 39,641 10,074 178,948 $ 1,897,166 $ 391,726 $ 60,704 $ 2,349,596 Six Months Ended June 30, 2024 North America EMEA APAC Consolidated Major Offerings Hardware $ 2,028,589 $ 261,388 $ 17,391 $ 2,307,368 Software 960,449 370,434 52,139 1,383,022 Services 648,141 149,892 52,724 850,757 $ 3,637,179 $ 781,714 $ 122,254 $ 4,541,147 Major Client Groups Large Enterprise / Corporate $ 2,556,710 $ 580,070 $ 46,035 $ 3,182,815 Commercial 717,229 16,701 32,410 766,340 Public Sector 363,240 184,943 43,809 591,992 $ 3,637,179 $ 781,714 $ 122,254 $ 4,541,147 Revenue Recognition based on acting as Principal or Agent in the Transaction Gross revenue recognition (Principal) $ 3,348,682 $ 710,208 $ 100,825 $ 4,159,715 Net revenue recognition (Agent) 288,497 71,506 21,429 381,432 $ 3,637,179 $ 781,714 $ 122,254 $ 4,541,147 Six Months Ended June 30, 2023 North America EMEA APAC Consolidated Major Offerings Hardware $ 2,320,766 $ 295,110 $ 23,242 $ 2,639,118 Software 812,124 410,621 51,391 1,274,136 Services 598,240 112,999 49,050 760,289 $ 3,731,130 $ 818,730 $ 123,683 $ 4,673,543 Major Client Groups Large Enterprise / Corporate $ 2,615,409 $ 598,582 $ 48,251 $ 3,262,242 Commercial 731,775 8,399 35,163 775,337 Public Sector 383,946 211,749 40,269 635,964 $ 3,731,130 $ 818,730 $ 123,683 $ 4,673,543 Revenue Recognition based on acting as Principal or Agent in the Transaction Gross revenue recognition (Principal) $ 3,493,110 $ 753,428 $ 104,514 $ 4,351,052 Net revenue recognition (Agent) 238,020 65,302 19,169 322,491 $ 3,731,130 $ 818,730 $ 123,683 $ 4,673,543 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 and six months ended June 30, 2024 or 2023. 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 June 30, 2024 North America EMEA APAC Consolidated Net sales: Products $ 1,402,732 $ 292,256 $ 31,447 $ 1,726,435 Services 329,625 76,617 28,985 435,227 Total net sales 1,732,357 368,873 60,432 2,161,662 Costs of goods sold: Products 1,245,586 262,262 28,422 1,536,270 Services 132,664 27,469 11,894 172,027 Total costs of goods sold 1,378,250 289,731 40,316 1,708,297 Gross profit 354,107 79,142 20,116 453,365 Operating expenses: Selling and administrative expenses 248,192 57,264 11,778 317,234 Severance and restructuring expenses 3,922 861 85 4,868 Acquisition and integration related expenses 180 10 — 190 Earnings from operations $ 101,813 $ 21,007 $ 8,253 $ 131,073 Three Months Ended June 30, 2023 North America EMEA APAC Consolidated Net sales: Products $ 1,582,454 $ 328,280 $ 34,875 $ 1,945,609 Services 314,712 63,446 25,829 403,987 Total net sales 1,897,166 391,726 60,704 2,349,596 Costs of goods sold: Products 1,416,637 301,240 31,571 1,749,448 Services 137,387 18,439 11,132 166,958 Total costs of goods sold 1,554,024 319,679 42,703 1,916,406 Gross profit 343,142 72,047 18,001 433,190 Operating expenses: Selling and administrative expenses 252,285 54,913 11,045 318,243 Severance and restructuring expenses, net (4,685) 867 48 (3,770) Acquisition and integration related expenses 106 — — 106 Earnings from operations $ 95,436 $ 16,267 $ 6,908 $ 118,611 Six Months Ended June 30, 2024 North America EMEA APAC Consolidated Net sales: Products $ 2,989,038 $ 631,822 $ 69,530 $ 3,690,390 Services 648,141 149,892 52,724 850,757 Total net sales 3,637,179 781,714 122,254 4,541,147 Costs of goods sold: Products 2,672,259 572,334 63,261 3,307,854 Services 260,970 55,205 22,825 339,000 Total costs of goods sold 2,933,229 627,539 86,086 3,646,854 Gross profit 703,950 154,175 36,168 894,293 Operating expenses: Selling and administrative expenses 511,112 120,569 22,987 654,668 Severance and restructuring expenses 5,541 1,399 155 7,095 Acquisition and integration related expenses 1,461 10 — 1,471 Earnings from operations $ 185,836 $ 32,197 $ 13,026 $ 231,059 Six Months Ended June 30, 2023 North America EMEA APAC Consolidated Net sales: Products $ 3,132,890 $ 705,731 $ 74,633 $ 3,913,254 Services 598,240 112,999 49,050 760,289 Total net sales 3,731,130 818,730 123,683 4,673,543 Costs of goods sold: Products 2,804,599 648,873 68,705 3,522,177 Services 268,245 36,922 21,694 326,861 Total costs of goods sold 3,072,844 685,795 90,399 3,849,038 Gross profit 658,286 132,935 33,284 824,505 Operating expenses: Selling and administrative expenses 501,105 104,818 22,321 628,244 Severance and restructuring expenses, net (1,598) 1,569 61 32 Acquisition and integration related expenses 157 — — 157 Earnings from operations $ 158,622 $ 26,548 $ 10,902 $ 196,072 The following is a summary of our total assets by reportable operating segment (in thousands): June 30, December 31, North America $ 6,356,884 $ 6,521,591 EMEA 1,497,936 1,058,734 APAC 246,249 171,820 Corporate assets and intercompany eliminations, net (748,256) (1,465,795) Total assets $ 7,352,813 $ 6,286,350 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 Six Months Ended 2024 2023 2024 2023 Depreciation and amortization of property and equipment: North America $ 6,170 $ 5,495 $ 12,243 $ 11,143 EMEA 900 603 1,657 1,199 APAC 138 102 269 211 7,208 6,200 14,169 12,553 Amortization of intangible assets: North America 15,588 7,766 28,734 15,551 EMEA 1,660 408 3,330 820 APAC 109 111 218 224 17,357 8,285 32,282 16,595 Total $ 24,565 $ 14,485 $ 46,451 $ 29,148 |
Acquisition
Acquisition | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Acquisition | Acquisition Infocenter Effective May 1, 2024, we acquired 100 percent of the issued and outstanding shares of Infocenter.io Corporation ("Infocenter") for a cash purchase price of $265,000,000, net of cash and cash equivalents acquired of $5,103,000, which is comprised of the initial purchase price of $269,477,000 paid in cash upon the acquisition and contractual adjustments to the purchase price of $626,000 paid in July 2024. The purchase price was partially reduced by an indemnification receivable of approximately $2,299,000 to cover a sales tax liability. The purchase price also includes the estimated fair value of earn out payments of approximately $24,200,000, which provide an incentive opportunity for the sellers of up to $106,250,000, based on Infocenter achieving certain EBITDA performance through April 2026. Infocenter is a pure-play ServiceNow Elite Partner dedicated to automating business processes on the Now Platform®. We believe this acquisition enhances our Solutions Integrator offering framework to drive better business outcomes for our clients by enabling them to scale their multicloud environments with modern infrastructure, applications, and unified data and AI platforms. The preliminary fair value of net assets acquired was approximately $95,173,000, including approximately $123,900,000 of identifiable intangible assets, consisting primarily of customer relationships that will be amortized using the straight-line method over the estimated economic life of ten years. As these intangible assets are not tax deductible, we recognized a related deferred tax liability of approximately $31,832,000. The preliminary purchase price was allocated using the information currently available. Further information obtained upon the finalization of the fair value assumptions for identifiable intangible assets acquired and various accrued expense balance assessments could lead to an adjustment of the purchase price allocation. Goodwill acquired approximated $191,728,000, which was recorded in our North America operating segment. We consolidated the results of operations for Infocenter within our North America operating segment since its acquisition on May 1, 2024. Our historical results would not have been materially affected by the acquisition of Infocenter and, accordingly, we have not presented pro forma information as if the acquisition had been completed at the beginning of each period presented in our consolidated statement of operations. SADA Effective December 1, 2023, we acquired 100 percent of the issued and outstanding shares of SADA Systems, LLC (successor to SADA Systems, Inc. via conversion) ("SADA") for a cash purchase price of $399,762,000, excluding cash and cash equivalents acquired of $24,701,000. SADA is a leading cloud consultancy and technical services provider and six-time Google Cloud Partner of the Year, including cloud licensing and professional services to small, mid-sized and corporate/enterprise commercial clients, state and federal governments and educational institutions across North America, Europe and Asia. Based in Los Angeles, California, SADA has three office locations in North America, India and Armenia with more than 800 teammates. We believe that this acquisition advances our strategy and further strengthens our unique position as a leading Solutions Integrator offering market-leading multicloud solutions at scale. We further believe SADA's partnership with Google Cloud will enhance our ability to serve clients who operate across multiple clouds and accelerate adoption of widely sought-after technologies like GenAI. SADA is being reported as a part of our North America operating segment. The total purchase price of $424,870,000, which is net of cash and cash equivalents acquired of $24,701,000, is comprised of the initial purchase price of $423,290,000 paid in cash upon the SADA acquisition, contractual adjustments to the purchase price of $1,173,000 paid in March 2024 and a seller retention fund of $5,000,000 payable post-closing, and was partially reduced by an indemnification receivable of $1,180,000 to cover a gross receipts tax liability identified after acquisition. The purchase price also includes the estimated fair value of earnout payments of approximately $21,288,000, which provides an incentive opportunity for the sellers of up to $390,000,000, based on the SADA business achieving EBITDA and revenue growth performance through 2026. A portion of the purchase price was used to settle SADA’s stock-based compensation liabilities of $68,335,000 and pay SADA’s transaction costs of approximately $16,852,000 at acquisition and after contractual adjustments in accordance with the purchase agreement. The following table summarizes the preliminary purchase price and the estimated fair value of the assets acquired and liabilities assumed at the date of acquisition (in thousands): Total purchase price, net of cash and cash equivalents acquired $ 424,870 Fair value of net assets acquired: Current assets $ 346,885 Identifiable intangible assets - see description below 158,100 Property and equipment 2,266 Other assets 246,158 Current liabilities (330,051) Long-term liabilities, including long-term accounts payable (115,171) Total fair value of net assets acquired 308,187 Excess purchase price over fair value of net assets acquired ("goodwill") $ 116,683 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. During the six months ended June 30, 2024, a net adjustment of $339,000 was recorded to reduce goodwill, primarily due to certain measurement period adjustments to accounts receivable, contract assets, net, accounts payable and accrued expenses. The estimated fair values of the majority of the current assets and liabilities are based upon their historical costs on the date of acquisition due to their short-term nature, with the exception of contract assets. The estimated fair value of the property and equipment are also based upon historical costs as they approximate fair value. The contract assets are an exception to the fair value model and are evaluated under relevant revenue recognition guidance including an allowance for credit losses using the current expected credit loss (“CECL”) model. The preliminary estimated fair value of net assets acquired was approximately $308,187,000, including $158,100,000 of identifiable intangible assets, consisting primarily of customer relationships of $124,700,000 and non-compete agreements of $26,200,000. The fair values were determined using the multiple-period excess earnings method and the lost income method, respectively. The identifiable intangibles resulting from the acquisition are amortized using the straight-line method over the following estimated useful lives: Intangible Assets Estimated Economic Life Customer relationships 10 Years Trade name 3 Years Non-compete agreements 3-5 Years Goodwill of $116,683,000, which was recorded in our North America operating segment, represents the excess of the purchase price over the estimated fair value assigned to tangible and identifiable intangible assets acquired and liabilities assumed from SADA. The goodwill is not amortized and will be tested for impairment annually in the fourth quarter of our fiscal year. The addition of the SADA 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. The intangible assets and goodwill are tax deductible as the transaction is a deemed asset acquisition for U.S. federal income tax purposes after the Seller Parties undertook an internal restructuring pursuant to Section 368(a)(1)(F). The purchase price allocation is preliminary and was allocated using information currently available. Further information related to accounts receivable, contract assets, accounts payable, goodwill and various accrued expense balance assessments may lead to an adjustment of the purchase price allocation. We have consolidated the results of operations for SADA since its acquisition on December 1, 2023. Our historical results would not have been materially affected by the acquisition of SADA and, accordingly, we have not presented pro forma information as if the acquisition had been completed at the beginning of each period presented in our consolidated statement of operations. We recognized net gains within selling and administrative expenses of $20,684,000 and $20,219,000 due to the net decrease in the estimated fair value of the earnout payments for the three and six months ended June 30, 2024, respectively. Amdaris Effective August 17, 2023, we acquired 100 percent of the issued and outstanding shares of Amdaris Group Limited (“Amdaris”) for a preliminary cash purchase price, net of cash and cash equivalents acquired, of approximately $82,875,000, excluding the estimated fair value of an earnout, reported in other liabilities, with a range of payouts through 2026 of $0 to $54,391,000. We paid the earnout of $14,348,000 for Amdaris' 2023 performance in March 2024. Amdaris, an award-winning software development and digital services specialist, provides innovative software development, application support, managed services and consultancy services to the customers in the United Kingdom with service delivery centers located in several eastern European countries. Amdaris has been recognized as a Microsoft Gold Certified Partner. We believe this acquisition expands our global Modern Apps and Data & AI areas of solutions expertise as a leading solutions integrator and enhances our technological capabilities and scale to deliver an even broader range of customized services and solutions to clients in EMEA. The preliminary fair value of net assets acquired was approximately $34,060,000, including $41,291,000 of identifiable intangible assets, consisting primarily of customer relationships that will be amortized using the straight line method over the estimated economic life of ten years. The preliminary purchase price was allocated using the information available. During the first quarter of 2024, we finalized the fair value assumptions for identifiable intangible assets with no changes being made to amounts previously recorded. Goodwill acquired approximated $71,698,000, which was recorded in our EMEA operating segment. We consolidated the results of operations for Amdaris within our EMEA operating segment beginning on August 17, 2023, the effective date of the acquisition. Our historical results would not have been materially affected by the acquisition of Amdaris and, accordingly, we have not presented pro forma information as if the acquisition had been completed at the beginning of each period presented in our consolidated statement of operations. We recognized net gains within selling and administrative expenses of $4,464,000 and $3,988,000 due to the net decrease in the estimated fair value of the earnout payments for the three and six months ended June 30, 2024, respectively. |
Assets Held for Sale
Assets Held for Sale | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment Assets Held-for-Sale Disclosure [Abstract] | |
Assets Held for Sale | Assets Held for Sale During the six months ended June 30, 2023, we completed the sale of our properties in Montreal, Canada and Sheffield, United Kingdom for total net proceeds of approximately $15,476,000. We recognized a net gain on sale of approximately $7,623,000, reported in severance and restructuring expenses, net. During the six months ended June 30, 2024, we did not sell any assets held for sale. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net earnings | $ 87,444 | $ 80,482 | $ 154,471 | $ 130,454 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Rec_2
Basis of Presentation and Recently Issued Accounting Standards (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures", which requires public entities to disclose information about their reportable segments' significant expenses on an interim and annual basis. The amendments aim to improve interim disclosure requirements, clarify situations where an entity can reveal multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and include other disclosure requirements. The main objective of the amendments is to assist investors in understanding the entity's overall performance and evaluate potential future cash flows. The guidance is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024 with early adoption being permitted. We did not early adopt this guidance. The updated guidance is not expected to have a material effect on the Company's consolidated financial statements or disclosures. 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, 2023 that affect or may affect our current financial statements. |
Basis of Presentation and Rec_3
Basis of Presentation and Recently Issued Accounting Standards (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule Of Operating Segments By Geographic Location | Our company is organized in the following three operating segments, which are primarily defined by their related geographies: Operating Segment Geography North America United States and Canada EMEA Europe, Middle East and Africa APAC Asia-Pacific |
Receivables, Contract Liabili_2
Receivables, Contract Liabilities and Performance Obligations (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Information about Receivables and Contract Liabilities | The following table provides information about receivables and contract liabilities as of June 30, 2024 and December 31, 2023 (in thousands): June 30, December 31, Current receivables, which are included in “Accounts receivable, net” $ 4,143,400 $ 3,568,290 Contract assets, net 89,179 120,518 Long-term accounts receivable 648,162 412,666 Long-term contract assets, net 119,332 132,780 Contract liabilities, which are included in “Accrued expenses and other current liabilities” and “Other liabilities” 113,507 107,217 |
Summary of Changes in Gross Contract Liabilities from Contract with Customers | Significant changes in the gross contract assets balances during the six months ended June 30, 2024 are as follows (in thousands): Contract Balances at December 31, 2023 $ 272,287 Reclassification of beginning contract assets to receivables, as a result of rights to consideration becoming unconditional (59,355) Contract assets recognized, net of reclassification to receivables 16,893 Measurement period adjustments to acquired contract assets (4,839) Balances at June 30, 2024 $ 224,986 Contract assets consist of amounts the Company is entitled to for the resale of third-party consumption-based services, prior to payment becoming unconditional. In these transactions, the Company invoices clients for the gross amount of consideration it is responsible to collect, including amounts ultimately passed on to the third-party service providers. As of June 30, 2024, contract assets, net of allowances, were $208,511,000. Gross contract assets by our internal risk ratings as of June 30, 2024 are summarized as follows (in thousands): Contract assets Low risk $ 36,506 Moderate risk 53,713 High risk 134,767 Total contract assets $ 224,986 Changes in the contract liabilities balances during the six months ended June 30, 2024 are as follows (in thousands): Contract Balances at December 31, 2023 $ 107,217 Reclassification of the beginning contract liabilities to revenue, as the result of performance obligations satisfied (55,476) Cash received in advance and not recognized as revenue 61,766 Balances at June 30, 2024 $ 113,507 |
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 June 30, 2024 that are expected to be recognized in the future (in thousands): Services Remainder of 2024 $ 67,423 2025 60,114 2026 28,754 2027 and thereafter 39,863 Total remaining performance obligations $ 196,154 |
Net Earnings Per Share (Tables)
Net Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Summary of 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 Six Months Ended 2024 2023 2024 2023 Numerator: Net earnings $ 87,444 $ 80,482 $ 154,471 $ 130,454 Denominator: Weighted average shares used to compute basic EPS 32,565 33,101 32,580 33,403 Dilutive potential common shares due to dilutive RSUs, net of tax effect 275 234 312 275 Dilutive potential common shares due to the Convertible Notes 3,322 2,516 3,275 2,413 Dilutive potential common shares due to the Warrants 2,405 1,188 2,334 1,032 Weighted average shares used to compute diluted EPS 38,567 37,039 38,501 37,123 Net earnings per share: Basic $ 2.69 $ 2.43 $ 4.74 $ 3.91 Diluted $ 2.27 $ 2.17 $ 4.01 $ 3.51 |
Debt, Inventory Financing Fac_2
Debt, Inventory Financing Facilities, Finance Leases and Other Financing Obligations (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Our long-term debt consists of the following (in thousands): June 30, December 31, ABL revolving credit facility $ 171,283 $ 591,500 Senior unsecured notes due 2032 491,781 — Convertible senior notes due 2025 331,987 347,988 Finance leases and other financing obligations 21 1,033 Total 995,072 940,521 Less: current portion of long-term debt (331,997) (348,004) Long-term debt $ 663,075 $ 592,517 |
Summary of Convertible Senior Notes Balances | The Convertible Notes consist of the following balances reported within the consolidated balance sheets (in thousands): June 30, December 31, Liability: Principal $ 333,105 $ 350,000 Less: debt issuance costs, net of accumulated amortization (1,118) (2,012) Net carrying amount $ 331,987 $ 347,988 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [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 their related geographies, as well as by major product offering, by major client group and by recognition on either a gross basis as a principal in the arrangement, or on a net basis as an agent, for the three and six months ended June 30, 2024 and 2023 (in thousands): Three Months Ended June 30, 2024 North America EMEA APAC Consolidated Major Offerings Hardware $ 1,037,523 $ 125,074 $ 10,044 $ 1,172,641 Software 365,209 167,182 21,403 553,794 Services 329,625 76,617 28,985 435,227 $ 1,732,357 $ 368,873 $ 60,432 $ 2,161,662 Major Client Groups Large Enterprise / Corporate $ 1,189,407 $ 271,772 $ 23,867 $ 1,485,046 Commercial 359,940 7,788 17,347 385,075 Public Sector 183,010 89,313 19,218 291,541 $ 1,732,357 $ 368,873 $ 60,432 $ 2,161,662 Revenue Recognition based on acting as Principal or Agent in the Transaction Gross revenue recognition (Principal) $ 1,586,437 $ 329,126 $ 48,301 $ 1,963,864 Net revenue recognition (Agent) 145,920 39,747 12,131 197,798 $ 1,732,357 $ 368,873 $ 60,432 $ 2,161,662 Three Months Ended June 30, 2023 North America EMEA APAC Consolidated Major Offerings Hardware $ 1,165,127 $ 132,220 $ 12,926 $ 1,310,273 Software 417,327 196,060 21,949 635,336 Services 314,712 63,446 25,829 403,987 $ 1,897,166 $ 391,726 $ 60,704 $ 2,349,596 Major Client Groups Large Enterprise / Corporate $ 1,321,876 $ 289,519 $ 26,849 $ 1,638,244 Commercial 359,750 3,609 18,138 381,497 Public Sector 215,540 98,598 15,717 329,855 $ 1,897,166 $ 391,726 $ 60,704 $ 2,349,596 Revenue Recognition based on acting as Principal or Agent in the Transaction Gross revenue recognition (Principal) $ 1,767,933 $ 352,085 $ 50,630 $ 2,170,648 Net revenue recognition (Agent) 129,233 39,641 10,074 178,948 $ 1,897,166 $ 391,726 $ 60,704 $ 2,349,596 Six Months Ended June 30, 2024 North America EMEA APAC Consolidated Major Offerings Hardware $ 2,028,589 $ 261,388 $ 17,391 $ 2,307,368 Software 960,449 370,434 52,139 1,383,022 Services 648,141 149,892 52,724 850,757 $ 3,637,179 $ 781,714 $ 122,254 $ 4,541,147 Major Client Groups Large Enterprise / Corporate $ 2,556,710 $ 580,070 $ 46,035 $ 3,182,815 Commercial 717,229 16,701 32,410 766,340 Public Sector 363,240 184,943 43,809 591,992 $ 3,637,179 $ 781,714 $ 122,254 $ 4,541,147 Revenue Recognition based on acting as Principal or Agent in the Transaction Gross revenue recognition (Principal) $ 3,348,682 $ 710,208 $ 100,825 $ 4,159,715 Net revenue recognition (Agent) 288,497 71,506 21,429 381,432 $ 3,637,179 $ 781,714 $ 122,254 $ 4,541,147 Six Months Ended June 30, 2023 North America EMEA APAC Consolidated Major Offerings Hardware $ 2,320,766 $ 295,110 $ 23,242 $ 2,639,118 Software 812,124 410,621 51,391 1,274,136 Services 598,240 112,999 49,050 760,289 $ 3,731,130 $ 818,730 $ 123,683 $ 4,673,543 Major Client Groups Large Enterprise / Corporate $ 2,615,409 $ 598,582 $ 48,251 $ 3,262,242 Commercial 731,775 8,399 35,163 775,337 Public Sector 383,946 211,749 40,269 635,964 $ 3,731,130 $ 818,730 $ 123,683 $ 4,673,543 Revenue Recognition based on acting as Principal or Agent in the Transaction Gross revenue recognition (Principal) $ 3,493,110 $ 753,428 $ 104,514 $ 4,351,052 Net revenue recognition (Agent) 238,020 65,302 19,169 322,491 $ 3,731,130 $ 818,730 $ 123,683 $ 4,673,543 |
Summary of 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 June 30, 2024 North America EMEA APAC Consolidated Net sales: Products $ 1,402,732 $ 292,256 $ 31,447 $ 1,726,435 Services 329,625 76,617 28,985 435,227 Total net sales 1,732,357 368,873 60,432 2,161,662 Costs of goods sold: Products 1,245,586 262,262 28,422 1,536,270 Services 132,664 27,469 11,894 172,027 Total costs of goods sold 1,378,250 289,731 40,316 1,708,297 Gross profit 354,107 79,142 20,116 453,365 Operating expenses: Selling and administrative expenses 248,192 57,264 11,778 317,234 Severance and restructuring expenses 3,922 861 85 4,868 Acquisition and integration related expenses 180 10 — 190 Earnings from operations $ 101,813 $ 21,007 $ 8,253 $ 131,073 Three Months Ended June 30, 2023 North America EMEA APAC Consolidated Net sales: Products $ 1,582,454 $ 328,280 $ 34,875 $ 1,945,609 Services 314,712 63,446 25,829 403,987 Total net sales 1,897,166 391,726 60,704 2,349,596 Costs of goods sold: Products 1,416,637 301,240 31,571 1,749,448 Services 137,387 18,439 11,132 166,958 Total costs of goods sold 1,554,024 319,679 42,703 1,916,406 Gross profit 343,142 72,047 18,001 433,190 Operating expenses: Selling and administrative expenses 252,285 54,913 11,045 318,243 Severance and restructuring expenses, net (4,685) 867 48 (3,770) Acquisition and integration related expenses 106 — — 106 Earnings from operations $ 95,436 $ 16,267 $ 6,908 $ 118,611 |
Summary of Total Assets by Reportable Operating Segment | The following is a summary of our total assets by reportable operating segment (in thousands): June 30, December 31, North America $ 6,356,884 $ 6,521,591 EMEA 1,497,936 1,058,734 APAC 246,249 171,820 Corporate assets and intercompany eliminations, net (748,256) (1,465,795) Total assets $ 7,352,813 $ 6,286,350 |
Summary of 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 Six Months Ended 2024 2023 2024 2023 Depreciation and amortization of property and equipment: North America $ 6,170 $ 5,495 $ 12,243 $ 11,143 EMEA 900 603 1,657 1,199 APAC 138 102 269 211 7,208 6,200 14,169 12,553 Amortization of intangible assets: North America 15,588 7,766 28,734 15,551 EMEA 1,660 408 3,330 820 APAC 109 111 218 224 17,357 8,285 32,282 16,595 Total $ 24,565 $ 14,485 $ 46,451 $ 29,148 |
Acquisition (Tables)
Acquisition (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Summary of Purchase Price and Estimated Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary purchase price and the estimated fair value of the assets acquired and liabilities assumed at the date of acquisition (in thousands): Total purchase price, net of cash and cash equivalents acquired $ 424,870 Fair value of net assets acquired: Current assets $ 346,885 Identifiable intangible assets - see description below 158,100 Property and equipment 2,266 Other assets 246,158 Current liabilities (330,051) Long-term liabilities, including long-term accounts payable (115,171) Total fair value of net assets acquired 308,187 Excess purchase price over fair value of net assets acquired ("goodwill") $ 116,683 |
Summary of Intangible Assets Acquired as Part of Business Combination | The identifiable intangibles resulting from the acquisition are amortized using the straight-line method over the following estimated useful lives: Intangible Assets Estimated Economic Life Customer relationships 10 Years Trade name 3 Years Non-compete agreements 3-5 Years |
Basis of Presentation and Rec_4
Basis of Presentation and Recently Issued Accounting Standards - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2024 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 3 |
Receivables, Contract Liabili_3
Receivables, Contract Liabilities and Performance Obligations - Summary of Information about Receivables and Contract Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Disaggregation of Revenue [Line Items] | ||
Current receivables, which are included in “Accounts receivable, net” | $ 4,143,400 | $ 3,568,290 |
Contract assets, net | 89,179 | 120,518 |
Long-term accounts receivable | 648,162 | 412,666 |
Long-term contract assets, net | 119,332 | 132,780 |
Contract liabilities, which are included in “Accrued expenses and other current liabilities” and “Other liabilities” | 113,507 | 107,217 |
Accounts Receivable, Net | ||
Disaggregation of Revenue [Line Items] | ||
Current receivables, which are included in “Accounts receivable, net” | 4,143,400 | 3,568,290 |
Accrued Expenses and Other Current Liabilities and Other Liabilities | ||
Disaggregation of Revenue [Line Items] | ||
Contract liabilities, which are included in “Accrued expenses and other current liabilities” and “Other liabilities” | $ 113,507 | $ 107,217 |
Receivables, Contract Liabili_4
Receivables, Contract Liabilities and Performance Obligations - Summary of Changes in Gross Contract Liabilities from Contract with Customers (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Changes in Contract Assets [Roll Forward] | |
Beginning balance, contract assets | $ 272,287 |
Reclassification of beginning contract assets to receivables, as a result of rights to consideration becoming unconditional | (59,355) |
Contract assets recognized, net of reclassification to receivables | 16,893 |
Contract assets acquired through business combination | (4,839) |
Ending balance, contract assets | 224,986 |
Changes in Contract Liabilities [Roll Forward] | |
Beginning balance, contract liabilities | 107,217 |
Reclassification of the beginning contract liabilities to revenue, as the result of performance obligations satisfied | (55,476) |
Cash received in advance and not recognized as revenue | 61,766 |
Ending balance, contract liabilities | $ 113,507 |
Receivables, Contract Liabili_5
Receivables, Contract Liabilities and Performance Obligations - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 208,511 | |
Contract with customer, liability, revenue recognized | $ 43,949,000 | |
Time and material contracts expected duration | 20 months |
Receivables, Contract Liabili_6
Receivables, Contract Liabilities and Performance Obligations - Gross Contract Assets by Internal Risk Ratings (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Disaggregation of Revenue [Line Items] | ||
Contract assets, net of allowances | $ 224,986 | $ 272,287 |
Low risk | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets, net of allowances | 36,506 | |
Moderate risk | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets, net of allowances | 53,713 | |
High risk | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets, net of allowances | $ 134,767 |
Receivables, Contract Liabili_7
Receivables, Contract Liabilities and Performance Obligations - Summary of Estimated Net Sales Related to Performance Obligation (Detail) - Services $ in Thousands | Jun. 30, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligations | $ 196,154 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligations | $ 67,423 |
Remaining performance obligation, expected timing of satisfaction period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligations | $ 60,114 |
Remaining performance obligation, expected timing of satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligations | $ 28,754 |
Remaining performance obligation, expected timing of satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligations | $ 39,863 |
Remaining performance obligation, expected timing of satisfaction period | 1 year |
Net Earnings Per Share - Reconc
Net Earnings Per Share - Reconciliation of Denominators of Basic and Diluted EPS Calculations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Numerator: | ||||
Net earnings | $ 87,444 | $ 80,482 | $ 154,471 | $ 130,454 |
Denominator: | ||||
Weighted average shares used to compute basic EPS (in shares) | 32,565 | 33,101 | 32,580 | 33,403 |
Dilutive potential common shares due to dilutive RSUs, net of tax effect (in shares) | 275 | 234 | 312 | 275 |
Dilutive potential common shares due to the Warrants (in shares) | 2,405 | 1,188 | 2,334 | 1,032 |
Weighted average shares used to compute diluted EPS (in shares) | 38,567 | 37,039 | 38,501 | 37,123 |
Net earnings per share: | ||||
Basic (in usd per share) | $ 2.69 | $ 2.43 | $ 4.74 | $ 3.91 |
Diluted (in usd per share) | $ 2.27 | $ 2.17 | $ 4.01 | $ 3.51 |
Notes | ||||
Denominator: | ||||
Dilutive potential common shares due to the Convertible Notes (in shares) | 3,322 | 2,516 | 3,275 | 2,413 |
Net Earnings Per Share - Additi
Net Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Restricted Stock Units (RSUs) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
RSUs excluded from the diluted EPS calculations (in shares) | 4,182 | 67,000 | 14,672 | 76,000 |
Debt, Inventory Financing Fac_3
Debt, Inventory Financing Facilities, Finance Leases and Other Financing Obligations - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Finance leases and other financing obligations | $ 21 | $ 1,033 |
Total | 995,072 | 940,521 |
Less: current portion of long-term debt | (331,997) | (348,004) |
Long-term debt | 663,075 | 592,517 |
Senior unsecured notes due 2032 | ||
Debt Instrument [Line Items] | ||
Convertible senior notes due 2025 | 491,781 | 0 |
Convertible senior notes due 2025 | ||
Debt Instrument [Line Items] | ||
Convertible senior notes due 2025 | 331,987 | 347,988 |
ABL revolving credit facility | ||
Debt Instrument [Line Items] | ||
ABL revolving credit facility | $ 171,283 | $ 591,500 |
Debt, Inventory Financing Fac_4
Debt, Inventory Financing Facilities, Finance Leases and Other Financing Obligations - Additional Information (Detail) - USD ($) | 1 Months Ended | 6 Months Ended | |||||
May 15, 2024 | Sep. 30, 2023 | Jun. 30, 2024 | May 20, 2024 | Dec. 31, 2023 | Jul. 22, 2022 | Aug. 31, 2019 | |
Debt Instrument [Line Items] | |||||||
Accounts payable—inventory financing facilities | $ 218,553,000 | $ 231,850,000 | |||||
Senior unsecured notes due 2032 | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount of notes, issued amount | $ 500,000,000 | ||||||
Notes, interest rate (as a percent) | 6.625% | ||||||
Repurchase price as percentage of principal amount | 106.625% | ||||||
Percentage of last reported sale price to conversion price on each applicable trading day | 40% | ||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 100% | ||||||
Senior unsecured notes due 2032 | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Repurchase price as percentage of principal amount | 101% | ||||||
Convertible senior notes due 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount of notes, issued amount | $ 333,105,000 | 350,000,000 | $ 350,000,000 | ||||
Notes, interest rate (as a percent) | 0.75% | ||||||
Repurchase price as percentage of principal amount | 100% | ||||||
Debt conversion, initial conversion rate (in shares) | 14.6376 | ||||||
Principal amount per note used in conversion rate | $ 1,000 | ||||||
Conversion price per share (in usd per share) | $ 68.32 | ||||||
Shares issuable upon conversion of debt (in shares) | 6,788,208 | ||||||
Debt conversion amount | $ 16,895,000 | ||||||
Notes, remaining accretion period of debt discount and issuance cost | 7 months 13 days | ||||||
Notes, effective interest rate | 0.75% | ||||||
Conversion price per share (in usd per share) | $ 68.32 | ||||||
Payments to convertible note hedge transaction | $ 66,325,000 | ||||||
Warrants sold to purchase of additional common stock (in shares) | 5,123,160 | ||||||
Warrant price per share to purchase additional common stock (in usd per share) | $ 103.12 | ||||||
Proceeds from sale of warrants | $ 34,440,000 | ||||||
Convertible senior notes due 2025 | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Option to purchase common stock (in shares) | 5,123,160 | ||||||
ABL revolving credit facility | |||||||
Debt Instrument [Line Items] | |||||||
ABL revolving credit facility | $ 171,283,000 | $ 591,500,000 | |||||
ABL revolving credit facility | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, increase in amount available for borrowing | 750,000,000 | ||||||
ABL revolving credit facility | Third Amendment to Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, borrowing capacity | 1,800,000,000 | $ 1,800,000,000 | |||||
ABL revolving credit facility | Foreign Currency Borrowings | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, borrowing capacity | $ 350,000,000 | ||||||
ABL revolving credit facility | First-In, Last-Out Revolving Facility | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, borrowing capacity | 100,000,000 | ||||||
Unsecured Inventory Financing Facility | MUFG Bank Ltd | |||||||
Debt Instrument [Line Items] | |||||||
Inventory financing facility maximum borrowing capacity | $ 280,000,000,000 | ||||||
Inventory financing facility rate if vendor terms not met equal prime plus | 2% | ||||||
Unsecured Inventory Financing Facility | PNC Facility | |||||||
Debt Instrument [Line Items] | |||||||
Inventory financing facility maximum borrowing capacity | $ 375,000,000 | ||||||
Inventory financing facility rate if vendor terms not met equal LIBOR plus | 0.25% | ||||||
Unsecured Inventory Financing Facility | Canada Facility | |||||||
Debt Instrument [Line Items] | |||||||
Inventory financing facility maximum borrowing capacity | $ 25,000,000 | ||||||
Inventory financing facility rate if vendor terms not met equal LIBOR plus | 4.50% | ||||||
Unsecured Inventory Financing Facility | EMEA Facilities | |||||||
Debt Instrument [Line Items] | |||||||
Inventory financing facility maximum borrowing capacity | $ 50,000,000 | ||||||
Inventory Financing Facility | |||||||
Debt Instrument [Line Items] | |||||||
Inventory financing facility maximum borrowing capacity | 705,000,000 | ||||||
Accounts payable—inventory financing facilities | $ 218,553,000 |
Debt, Inventory Financing Fac_5
Debt, Inventory Financing Facilities, Finance Leases and Other Financing Obligations - Summary of Convertible Senior Notes Balances (Detail) - Convertible senior notes due 2025 - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 | Aug. 31, 2019 |
Liability: | |||
Principal | $ 333,105,000 | $ 350,000,000 | $ 350,000,000 |
Less: debt issuance costs, net of accumulated amortization | (1,118,000) | (2,012,000) | |
Net carrying amount | $ 331,987,000 | $ 347,988,000 |
Income Taxes (Detail)
Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |||||
Effective tax rate | 25.50% | 26.30% | 24.80% | 25.70% | |
Unrecognized tax benefits | $ 11,720 | $ 11,720 | $ 13,947 | ||
Unrecognized tax benefits, interest on income taxes accrued | $ 1,458 | $ 1,458 | $ 1,767 |
Share Repurchase Program (Detai
Share Repurchase Program (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | May 18, 2023 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Common stock repurchase program, authorized remaining amount | $ 165,020,476 | |||
Common stock repurchase program, number of shares repurchased (in shares) | 720,175 | 187,357 | 1,633,620 | |
Repurchase program, approximate dollar value of shares purchased | $ 99,980,000 | $ 35,000,000 | $ 217,108,000 | |
Repurchase program, average price paid per share (in usd per share) | $ 138.83 | $ 186.81 | $ 132.90 | |
May 18 2023 Stock Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Common stock repurchase program, authorized amount | $ 300,000,000 | |||
September 19, 2022 Stock Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Common stock repurchase program, authorized remaining amount | $ 100,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Commitments And Contingencies [Line Items] | |
Minimum required purchase commitment amount | $ 100,467,000 |
Purchase commitment term | 5 years |
Remaining amount | $ 88,295,000 |
Minimum | |
Commitments And Contingencies [Line Items] | |
Number of months of salary paid as severance | 3 months |
Maximum | |
Commitments And Contingencies [Line Items] | |
Number of months of salary paid as severance | 24 months |
Software as a Service | |
Commitments And Contingencies [Line Items] | |
Minimum required purchase commitment amount | $ 40,000,000 |
Purchase commitment term | 4 years |
Remaining amount | $ 26,123,000 |
Contingent liability | 21,236,000 |
Surety Bond | |
Commitments And Contingencies [Line Items] | |
Performance bonds outstanding | $ 29,526,731 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2024 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Segment Information - Summary o
Segment Information - Summary of Revenue Disaggregated by Reportable Operating Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Total net sales | $ 2,161,662 | $ 2,349,596 | $ 4,541,147 | $ 4,673,543 |
Gross revenue recognition (Principal) | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 1,963,864 | 2,170,648 | 4,159,715 | 4,351,052 |
Net revenue recognition (Agent) | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 197,798 | 178,948 | 381,432 | 322,491 |
North America | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 1,732,357 | 1,897,166 | 3,637,179 | 3,731,130 |
North America | Gross revenue recognition (Principal) | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 1,586,437 | 1,767,933 | 3,348,682 | 3,493,110 |
North America | Net revenue recognition (Agent) | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 145,920 | 129,233 | 288,497 | 238,020 |
EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 368,873 | 391,726 | 781,714 | 818,730 |
EMEA | Gross revenue recognition (Principal) | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 329,126 | 352,085 | 710,208 | 753,428 |
EMEA | Net revenue recognition (Agent) | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 39,747 | 39,641 | 71,506 | 65,302 |
APAC | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 60,432 | 60,704 | 122,254 | 123,683 |
APAC | Gross revenue recognition (Principal) | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 48,301 | 50,630 | 100,825 | 104,514 |
APAC | Net revenue recognition (Agent) | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 12,131 | 10,074 | 21,429 | 19,169 |
Large Enterprise / Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 1,485,046 | 1,638,244 | 3,182,815 | 3,262,242 |
Large Enterprise / Corporate | North America | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 1,189,407 | 1,321,876 | 2,556,710 | 2,615,409 |
Large Enterprise / Corporate | EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 271,772 | 289,519 | 580,070 | 598,582 |
Large Enterprise / Corporate | APAC | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 23,867 | 26,849 | 46,035 | 48,251 |
Commercial | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 385,075 | 381,497 | 766,340 | 775,337 |
Commercial | North America | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 359,940 | 359,750 | 717,229 | 731,775 |
Commercial | EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 7,788 | 3,609 | 16,701 | 8,399 |
Commercial | APAC | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 17,347 | 18,138 | 32,410 | 35,163 |
Public Sector | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 291,541 | 329,855 | 591,992 | 635,964 |
Public Sector | North America | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 183,010 | 215,540 | 363,240 | 383,946 |
Public Sector | EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 89,313 | 98,598 | 184,943 | 211,749 |
Public Sector | APAC | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 19,218 | 15,717 | 43,809 | 40,269 |
Hardware | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 1,172,641 | 1,310,273 | 2,307,368 | 2,639,118 |
Hardware | North America | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 1,037,523 | 1,165,127 | 2,028,589 | 2,320,766 |
Hardware | EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 125,074 | 132,220 | 261,388 | 295,110 |
Hardware | APAC | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 10,044 | 12,926 | 17,391 | 23,242 |
Software | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 553,794 | 635,336 | 1,383,022 | 1,274,136 |
Software | North America | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 365,209 | 417,327 | 960,449 | 812,124 |
Software | EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 167,182 | 196,060 | 370,434 | 410,621 |
Software | APAC | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 21,403 | 21,949 | 52,139 | 51,391 |
Services | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 435,227 | 403,987 | 850,757 | 760,289 |
Services | North America | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 329,625 | 314,712 | 648,141 | 598,240 |
Services | EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 76,617 | 63,446 | 149,892 | 112,999 |
Services | APAC | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | $ 28,985 | $ 25,829 | $ 52,724 | $ 49,050 |
Segment Information - Financial
Segment Information - Financial Information about Reportable Operating Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Total net sales | $ 2,161,662 | $ 2,349,596 | $ 4,541,147 | $ 4,673,543 |
Total costs of goods sold | 1,708,297 | 1,916,406 | 3,646,854 | 3,849,038 |
Gross profit | 453,365 | 433,190 | 894,293 | 824,505 |
Operating expenses: | ||||
Selling and administrative expenses | 317,234 | 318,243 | 654,668 | 628,244 |
Severance and restructuring expenses, net | 4,868 | (3,770) | 7,095 | 32 |
Acquisition and integration related expenses | 190 | 106 | 1,471 | 157 |
Earnings from operations | 131,073 | 118,611 | 231,059 | 196,072 |
Products | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 1,726,435 | 1,945,609 | 3,690,390 | 3,913,254 |
Total costs of goods sold | 1,536,270 | 1,749,448 | 3,307,854 | 3,522,177 |
Gross profit | 190,165 | 196,161 | 382,536 | 391,077 |
Services | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 435,227 | 403,987 | 850,757 | 760,289 |
Total costs of goods sold | 172,027 | 166,958 | 339,000 | 326,861 |
Gross profit | 263,200 | 237,029 | 511,757 | 433,428 |
North America | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 1,732,357 | 1,897,166 | 3,637,179 | 3,731,130 |
Total costs of goods sold | 1,378,250 | 1,554,024 | 2,933,229 | 3,072,844 |
Gross profit | 354,107 | 343,142 | 703,950 | 658,286 |
Operating expenses: | ||||
Selling and administrative expenses | 248,192 | 252,285 | 511,112 | 501,105 |
Severance and restructuring expenses, net | 3,922 | (4,685) | 5,541 | (1,598) |
Acquisition and integration related expenses | 180 | 106 | 1,461 | 157 |
Earnings from operations | 101,813 | 95,436 | 185,836 | 158,622 |
North America | Products | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 1,402,732 | 1,582,454 | 2,989,038 | 3,132,890 |
Total costs of goods sold | 1,245,586 | 1,416,637 | 2,672,259 | 2,804,599 |
North America | Services | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 329,625 | 314,712 | 648,141 | 598,240 |
Total costs of goods sold | 132,664 | 137,387 | 260,970 | 268,245 |
EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 368,873 | 391,726 | 781,714 | 818,730 |
Total costs of goods sold | 289,731 | 319,679 | 627,539 | 685,795 |
Gross profit | 79,142 | 72,047 | 154,175 | 132,935 |
Operating expenses: | ||||
Selling and administrative expenses | 57,264 | 54,913 | 120,569 | 104,818 |
Severance and restructuring expenses, net | 861 | 867 | 1,399 | 1,569 |
Acquisition and integration related expenses | 10 | 0 | 10 | 0 |
Earnings from operations | 21,007 | 16,267 | 32,197 | 26,548 |
EMEA | Products | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 292,256 | 328,280 | 631,822 | 705,731 |
Total costs of goods sold | 262,262 | 301,240 | 572,334 | 648,873 |
EMEA | Services | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 76,617 | 63,446 | 149,892 | 112,999 |
Total costs of goods sold | 27,469 | 18,439 | 55,205 | 36,922 |
APAC | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 60,432 | 60,704 | 122,254 | 123,683 |
Total costs of goods sold | 40,316 | 42,703 | 86,086 | 90,399 |
Gross profit | 20,116 | 18,001 | 36,168 | 33,284 |
Operating expenses: | ||||
Selling and administrative expenses | 11,778 | 11,045 | 22,987 | 22,321 |
Severance and restructuring expenses, net | 85 | 48 | 155 | 61 |
Acquisition and integration related expenses | 0 | 0 | 0 | 0 |
Earnings from operations | 8,253 | 6,908 | 13,026 | 10,902 |
APAC | Products | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 31,447 | 34,875 | 69,530 | 74,633 |
Total costs of goods sold | 28,422 | 31,571 | 63,261 | 68,705 |
APAC | Services | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 28,985 | 25,829 | 52,724 | 49,050 |
Total costs of goods sold | $ 11,894 | $ 11,132 | $ 22,825 | $ 21,694 |
Segment Information - Summary_2
Segment Information - Summary of Total Assets by Reportable Operating Segment (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 7,352,813 | $ 6,286,350 |
Operating Segments | North America | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 6,356,884 | 6,521,591 |
Operating Segments | EMEA | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 1,497,936 | 1,058,734 |
Operating Segments | APAC | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 246,249 | 171,820 |
Intersegment Eliminations | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ (748,256) | $ (1,465,795) |
Segment Information - Pre-Tax D
Segment Information - Pre-Tax Depreciation and Amortization by Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization of property and equipment | $ 7,208 | $ 6,200 | $ 14,169 | $ 12,553 |
Amortization of intangible assets | 17,357 | 8,285 | 32,282 | 16,595 |
Depreciation and amortization, total | 24,565 | 14,485 | 46,451 | 29,148 |
North America | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization of property and equipment | 6,170 | 5,495 | 12,243 | 11,143 |
Amortization of intangible assets | 15,588 | 7,766 | 28,734 | 15,551 |
EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization of property and equipment | 900 | 603 | 1,657 | 1,199 |
Amortization of intangible assets | 1,660 | 408 | 3,330 | 820 |
APAC | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization of property and equipment | 138 | 102 | 269 | 211 |
Amortization of intangible assets | $ 109 | $ 111 | $ 218 | $ 224 |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
May 01, 2024 USD ($) | Dec. 01, 2023 USD ($) Office Teammate | Aug. 17, 2023 USD ($) | Mar. 31, 2024 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 872,785 | $ 872,785 | $ 684,345 | ||||
InfoCenter.io | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition, percentage of issued and outstanding shares acquired | 100% | ||||||
Cash paid to acquire business | $ 265,000 | ||||||
Cash and cash equivalents acquired from acquisition | 5,103 | ||||||
Cash purchase price | 269,477 | ||||||
Adjustment to consideration transferred | 626 | ||||||
Business combination, consideration transferred, liabilities incurred | 2,299 | ||||||
Business combination, contingent consideration, liability | 24,200 | ||||||
Seller incentive opportunity | 106,250 | ||||||
Estimated fair value of net assets acquired | 95,173 | ||||||
Identifiable intangible assets - see description below | $ 123,900 | ||||||
Economic life (in years) | 10 years | ||||||
Deferred tax liability | $ 31,832 | ||||||
Goodwill | $ 191,728 | ||||||
SADA Systems, LLC | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition, percentage of issued and outstanding shares acquired | 100% | ||||||
Cash paid to acquire business | $ 424,870 | ||||||
Cash and cash equivalents acquired from acquisition | 24,701 | ||||||
Cash purchase price | 423,290 | ||||||
Business combination, contingent consideration, liability | 21,288 | ||||||
Seller incentive opportunity | 390,000 | ||||||
Estimated fair value of net assets acquired | 308,187 | ||||||
Identifiable intangible assets - see description below | 158,100 | ||||||
Goodwill | 116,683 | ||||||
Business combination, consideration transferred | $ 399,762 | ||||||
Number of office | Office | 3 | ||||||
Contractual adjustments | $ 1,173 | ||||||
Seller retention fund | 5,000 | ||||||
Indemnification receivable | 1,180 | 1,180 | |||||
Stock-based compensation liabilities | 68,335 | ||||||
Transaction costs | 16,852 | ||||||
Goodwill adjustments | 339 | ||||||
Decrease in fair value of earnout payments | 20,684 | 20,219 | |||||
SADA Systems, LLC | Customer Relationships | |||||||
Business Acquisition [Line Items] | |||||||
Identifiable intangible assets - see description below | $ 124,700 | ||||||
Finite-lived intangible asset, useful life | 10 years | ||||||
SADA Systems, LLC | Noncompete Agreements | |||||||
Business Acquisition [Line Items] | |||||||
Identifiable intangible assets - see description below | $ 26,200 | ||||||
SADA Systems, LLC | Trade Names | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible asset, useful life | 3 years | ||||||
SADA Systems, LLC | Minimum | |||||||
Business Acquisition [Line Items] | |||||||
Number of teammates | Teammate | 800 | ||||||
SADA Systems, LLC | Minimum | Noncompete Agreements | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible asset, useful life | 3 years | ||||||
SADA Systems, LLC | Maximum | Noncompete Agreements | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible asset, useful life | 5 years | ||||||
Amdaris | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition, percentage of issued and outstanding shares acquired | 100% | ||||||
Cash paid to acquire business | $ 82,875 | ||||||
Estimated fair value of net assets acquired | 34,060 | ||||||
Goodwill | 71,698 | ||||||
Decrease in fair value of earnout payments | $ 4,464 | $ 3,988 | |||||
Earnout payment | $ 14,348 | ||||||
Intangible assets acquired | $ 41,291 | ||||||
Amdaris | Customer Relationships | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible asset, useful life | 10 years | ||||||
Amdaris | Minimum | |||||||
Business Acquisition [Line Items] | |||||||
Business combination, contingent consideration, liability | $ 0 | ||||||
Amdaris | Maximum | |||||||
Business Acquisition [Line Items] | |||||||
Business combination, contingent consideration, liability | $ 54,391 |
Acquisition - Summary of Purcha
Acquisition - Summary of Purchase Price and Estimated Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Dec. 01, 2023 | Jun. 30, 2024 | Dec. 31, 2023 |
Fair value of net assets acquired: | |||
Excess purchase price over fair value of net assets acquired ("goodwill") | $ 872,785 | $ 684,345 | |
SADA Systems, LLC | |||
Business Acquisition [Line Items] | |||
Cash paid to acquire business | $ 424,870 | ||
Fair value of net assets acquired: | |||
Current assets | 346,885 | ||
Identifiable intangible assets - see description below | 158,100 | ||
Property and equipment | 2,266 | ||
Other assets | 246,158 | ||
Current liabilities | (330,051) | ||
Long-term liabilities, including long-term accounts payable | (115,171) | ||
Total fair value of net assets acquired | 308,187 | ||
Excess purchase price over fair value of net assets acquired ("goodwill") | $ 116,683 |
Assets Held for Sale (Detail)
Assets Held for Sale (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Property, Plant and Equipment Assets Held-for-Sale Disclosure [Abstract] | |
Proceeds from sale of property held-for-sale | $ 15,476 |
Gain (loss) on sale of properties | $ 7,623 |