SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2022

Segment Information

Segment Information

Note 5–Segment Information

The internal reporting structure used by the Company’s chief operating decision maker (“CODM”) to assess performance and allocate resources determines the basis for the Company’s reportable operating segments. The Company’s CODM is its Chief Executive Officer, and he evaluates operations and allocates resources based on a measure of operating income.

The Company’s operations are organized under three reportable segments—the Business Solutions segment, which serves primarily small- and medium-sized businesses; the Enterprise Solutions segment, which serves primarily medium-to-large corporations; and the Public Sector Solutions segment, which serves primarily federal, state, and local governmental and educational institutions. In addition, the Headquarters/Other group provides services in areas such as finance, human resources, information technology, marketing, and product management. Most of the operating costs associated with the Headquarters/Other group functions are charged to the operating segments based on their estimated usage of the underlying functions. The Company reports these charges to the operating segments as “Allocations.” Certain headquarters costs relating to executive oversight and other fiduciary functions that are not allocated to the operating segments are included under the heading of Headquarters/Other in the tables below.

Segment information applicable to the Company’s reportable operating segments for the three and six months ended June 30, 2022 and 2021 is shown below:

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

The assets of the Company’s three operating segments presented above consist primarily of accounts receivable, net intercompany receivable, goodwill, and other intangibles. Assets reported under the Headquarters/Other group are managed by corporate headquarters, including cash and cash equivalents, inventories, property and equipment, ROU assets, and intercompany balance, net. As of June 30, 2022 and 2021, total assets for the Headquarters/Other group were presented net of intercompany balance eliminations of $41,439, and $37,457, respectively. The Company’s capital expenditures consist largely of IT hardware and software purchased to maintain or upgrade our management information systems. These information systems serve all of the Company’s segments, to varying degrees, and accordingly, the CODM does not evaluate capital expenditures on a segment-by-segment basis.