10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: June 30, 2019

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to            

Commission File Number:  0-25092

INSIGHT ENTERPRISES, INC.

(Exact name of registrant as specified in its charter)

Delaware	86-0766246
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

6820 South Harl Avenue, Tempe, Arizona 85283

(Address of principal executive offices) (Zip Code)

(480) 333-3000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common stock, par value $0.01	NSIT	The NASDAQ Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes   ☒   No   ☐  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes   ☒   No   ☐  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes   ☐   No   ☒  

The number of shares outstanding of the issuer’s common stock as of August 2, 2019 was 35,787,600.

INSIGHT ENTERPRISES, INC.

QUARTERLY REPORT ON FORM 10-Q

Three Months Ended June 30, 2019

TABLE OF CONTENTS

		Page
PART I -	Financial Information
Item 1 –	Financial Statements:
	Consolidated Balance Sheets (unaudited) – June 30, 2019 and December 31, 2018	1
	Consolidated Statements of Operations (unaudited) – Three and Six Months Ended June 30, 2019 and 2018	2
	Consolidated Statements of Comprehensive Income (unaudited) – Three and Six Months Ended June 30, 2019 and 2018	3
	Consolidated Statements of Stockholders’ Equity (unaudited) – Three and Six Months Ended June 30, 2019 and 2018	4
	Consolidated Statements of Cash Flows (unaudited) – Six Months Ended June 30, 2019 and 2018	5
	Notes to Consolidated Financial Statements (unaudited)	6
Item 2 –	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3 –	Quantitative and Qualitative Disclosures About Market Risk	37
Item 4 –	Controls and Procedures	37
PART II -	Other Information
Item 1 –	Legal Proceedings	38
Item 1A –	Risk Factors	38
Item 2 –	Unregistered Sales of Equity Securities and Use of Proceeds	38
Item 3 –	Defaults Upon Senior Securities	38
Item 4 –	Mine Safety Disclosures	38
Item 5 –	Other Information	38
Item 6 –	Exhibits	39
Signatures		40

INSIGHT ENTERPRISES, INC.

Forward-Looking Information

References to “the Company,” “Insight,” “we,” “us,” “our” and other similar words refer to Insight Enterprises, Inc. and its consolidated subsidiaries, unless the context suggests otherwise.  Certain statements in this Quarterly Report on Form 10-Q, including statements in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part I, Item 2 of this report, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements may include: expectations regarding net sales, gross profit, gross margin, operating expenses, earnings from operations, non-operating income and expenses, net earnings or cash flows, cash needs and the payment of accrued expenses and liabilities; expectations about future benefits and timing relating to the PCM, Inc. (“PCM”) acquisition; the expected effects of seasonality on our business; expectations of further consolidation in the Information Technology (“IT”) industry; our intentions concerning the payment of dividends; our acquisition strategy; projections of capital expenditures; the sufficiency of our capital resources, the availability of financing and our needs and plans relating thereto; the estimated effect of new accounting principles and expected dates of adoption; the effect of indemnification obligations; projections about the outcome of ongoing tax audits; expectations regarding future employee termination benefits; estimates regarding future asset-retirement activities; adequate provisions for and our positions and strategies with respect to ongoing and threatened litigation; our expectations regarding the use of cash flow from operations for working capital, to pay down debt, repurchase shares of our common stock, make capital expenditures and fund acquisitions; our expectations regarding stock-based compensation and future income tax expense; our compliance with leverage ratio requirements; our exposure to off-balance sheet arrangements; statements of belief; and statements of assumptions underlying any of the foregoing.  Forward-looking statements are identified by such words as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,” “project,” “will,” “may” and variations of such words and similar expressions and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified.  Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements.  There can be no assurances that results described in forward-looking statements will be achieved, and actual results could differ materially from those suggested by the forward-looking statements.  Some of the important factors that could cause our actual results to differ materially from those projected in any forward-looking statements include, but are not limited to, the following, which are discussed in “Risk Factors” in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 and in “Cautionary Note Regarding Forward-looking Statements” in the Company’s Current Report on Form 8-K filed on June 24, 2019:

• actions of our competitors, including manufacturers and publishers of products we sell;

• our reliance on our partners for product availability, competitive products to sell and marketing funds and purchasing incentives, which can change significantly in the amounts made available and the requirements year over year;

• changes in the IT industry and/or rapid changes in technology;

• risks associated with the integration and operation of acquired businesses;

• possible significant fluctuations in our future operating results;

• the risks associated with our international operations;

• general economic conditions;

• increased debt and interest expense and decreased availability of funds under our financing facilities;

• the security of our electronic and other confidential information;

• disruptions in our IT systems and voice and data networks;

• failure to comply with the terms and conditions of our commercial and public sector contracts;

• legal proceedings client audits and failure to comply with laws and regulations;

• accounts receivable risks, including increased credit loss experience or extended payment terms with our clients;

INSIGHT ENTERPRISES, INC.

• our reliance on independent shipping companies;

• our dependence on certain key personnel;

• natural disasters or other adverse occurrences;

• exposure to changes in, interpretations of, or enforcement trends related to tax rules and regulations;

• intellectual property infringement claims and challenges to our registered trademarks and trade names;

• the Company’s failure to obtain the financing anticipated to consummate the pending merger with PCM;

• the Company’s failure to consummate or delays in the consummation of the pending merger with PCM for other reasons;

• timing to consummate the PCM merger;

• risk that a condition to the PCM merger, including the receipt of any required regulatory approvals, may not be satisfied or waived;

• failure of PCM’s stockholders to approve the merger;

• unexpected costs or liabilities in connection with the consummation of the merger;

• the Company’s inability to achieve expected synergies and operating efficiencies as a result of the merger with PCM, whether within the expected time frames, without undue difficulty, cost or expense, or at all;

• the Company’s ability to successfully integrate PCM’s operations into its own, whether within expected time frames, without undue difficulty, cost or expense, or at all;

• the level of revenues following the transaction, which may be lower than expected;

• operating costs, customer loss and business disruptions arising from the PCM merger and the pendency or consummation thereof (including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers), which may be greater than expected;

• uncertainties surrounding the transaction;

• the outcome of any legal proceedings related to the transaction;

• other adverse economic, business, and/or competitive factors;

• risks that the pending merger with PCM distracts management of the Company or PCM or disrupts current plans and operations;

• the Company’s ability to retain key PCM and Company employees; and

• other risks to consummation of the transaction, including circumstances that could give rise to the termination of the merger agreement and the risk that the transaction will not be consummated within the expected time period, without undue delay, cost or expense, or at all.

Additionally, there may be other risks that are otherwise described from time to time in the reports that we file with the Securities and Exchange Commission.  Any forward-looking statements in this report should be considered in light of various important factors, including the risks and uncertainties listed above, as well as others.  We assume no obligation to update, and, except as may be required by law, do not intend to update, any forward-looking statements.  We do not endorse any projections regarding future performance that may be made by third parties.

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

INSIGHT ENTERPRISES, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

(unaudited)

	June 30, 2019			December 31, 2018
ASSETS
Current assets:
Cash and cash equivalents	$	112,077		$	142,655
Accounts receivable, net of allowance for doubtful accounts    of $10,414 and $10,462, respectively		2,284,922			1,931,736
Inventories		179,577			148,503
Other current assets		110,850			115,683
Total current assets		2,687,426			2,338,577
Property and equipment, net of accumulated depreciation and    amortization of $252,691 and $331,700, respectively		73,766			72,954
Goodwill		166,392			166,841
Intangible assets, net of accumulated amortization of    $60,233 and $52,942, respectively		104,859			112,179
Deferred income taxes		6,638			7,967
Other assets		246,916			77,429
	$	3,285,997		$	2,775,947
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable—trade	$	1,426,158		$	978,104
Accounts payable—inventory financing facility		260,890			304,130
Accrued expenses and other current liabilities		190,474			190,733
Current portion of long-term debt		1,421			1,395
Deferred revenue		70,019			62,300
Total current liabilities		1,948,962			1,536,662
Long-term debt		45,930			195,525
Deferred income taxes		524			683
Other liabilities		210,998			56,088
		2,206,414			1,788,958
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value, 3,000 shares authorized;    no shares issued		—			—
Common stock, $0.01 par value, 100,000 shares authorized;    35,781 shares at June 30, 2019 and 35,482 shares at    December 31, 2018 issued and outstanding		358			355
Additional paid-in capital		325,263			323,622
Retained earnings		793,990			704,665
Accumulated other comprehensive loss – foreign currency    translation adjustments		(40,028	)		(41,653	)
Total stockholders’ equity		1,079,583			986,989
	$	3,285,997		$	2,775,947

See accompanying notes to consolidated financial statements.

1

INSIGHT ENTERPRISES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Net sales:
Products	$	1,594,335		$	1,618,823		$	3,061,007		$	3,176,615
Services		241,686			222,047			460,480			406,749
Total net sales		1,836,021			1,840,870			3,521,487			3,583,364
Costs of goods sold:
Products		1,458,916			1,488,387			2,796,224			2,903,373
Services		101,656			88,106			201,342			175,351
Total costs of goods sold		1,560,572			1,576,493			2,997,566			3,078,724
Gross profit		275,449			264,377			523,921			504,640
Operating expenses:
Selling and administrative expenses		199,489			189,464			390,552			377,644
Severance and restructuring expenses		680			382			1,050			2,026
Acquisition related expenses		3,163			94			3,163			94
Earnings from operations		72,117			74,437			129,156			124,876
Non-operating (income) expense:
Interest income		(266	)		(170	)		(537	)		(323	)
Interest expense		4,601			5,102			9,424			11,117
Net foreign currency exchange (gain) loss		(330	)		(275	)		381			(520	)
Other expense, net		676			324			1,015			626
Earnings before income taxes		67,436			69,456			118,873			113,976
Income tax expense		17,438			17,977			29,548			29,494
Net earnings	$	49,998		$	51,479		$	89,325		$	84,482
Net earnings per share:
Basic	$	1.40		$	1.45		$	2.50		$	2.37
Diluted	$	1.38		$	1.44		$	2.47		$	2.34
Shares used in per share calculations:
Basic		35,772			35,483			35,691			35,698
Diluted		36,111			35,815			36,107			36,039

See accompanying notes to consolidated financial statements.

2

INSIGHT ENTERPRISES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

(unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019		2018
Net earnings	$	49,998		$	51,479		$	89,325	$	84,482
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		(290	)		(15,022	)		1,625		(10,431	)
Total comprehensive income	$	49,708		$	36,457		$	90,950	$	74,051

See accompanying notes to consolidated financial statements.

3

INSIGHT ENTERPRISES, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands)

(unaudited)

	Common Stock						Treasury Stock						Additional Paid-in			Accumulated Other Comprehensive			Retained			Total Stockholders'
	Shares			Par Value			Shares			Amount			Capital			Loss			Earnings			Equity
Balances at March 31, 2018		35,848		$	358			—		$	—		$	315,493		$	(19,673	)	$	584,681		$	880,859
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes		31			1			—			—			(41	)		—			—			(40	)
Stock-based compensation expense		—			—			—			—			3,863			—			—			3,863
Repurchase of treasury stock		—			—			(420	)		(14,390	)		—			—			—			(14,390	)
Retirement of treasury stock		(420	)		(4	)		420			14,390			(3,696	)		—			(10,690	)		—
Foreign currency translation adjustments, net of tax		—			—			—			—			—			(15,022	)		—			(15,022	)
Net earnings		—			—			—			—			—			—			51,479			51,479
Balances at June 30, 2018		35,459		$	355			—		$	—		$	315,619		$	(34,695	)	$	625,470		$	906,749
Balances at March 31, 2019		35,761		$	358			—		$	—		$	321,606		$	(39,738	)	$	743,992		$	1,026,218
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes		20			—			—			—			(25	)		—			—			(25	)
Stock-based compensation expense		—			—			—			—			3,682			—			—			3,682
Foreign currency translation adjustments, net of tax		—			—			—			—			—			(290	)		—			(290	)
Net earnings		—			—			—			—			—			—			49,998			49,998
Balances at June 30, 2019		35,781		$	358			—		$	—		$	325,263		$	(40,028	)	$	793,990		$	1,079,583
Balances at December 31, 2017		35,829		$	358			—		$	—		$	317,155		$	(24,264	)	$	550,220		$	843,469
Cumulative effect of accounting change		—			—			—			—			—			—			7,176			7,176
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes		271			3			—			—			(2,928	)		—			—			(2,925	)
Stock-based compensation expense		—			—			—			—			7,047			—			—			7,047
Repurchase of treasury stock		—			—			(641	)		(22,069	)		—			—			—			(22,069	)
Retirement of treasury stock		(641	)		(6	)		641			22,069			(5,655	)		—			(16,408	)		-
Foreign currency translation adjustments, net of tax		—			—			—			—			—			(10,431	)		—			(10,431	)
Net earnings		—			—			—			—			—			—			84,482			84,482
Balances at June 30, 2018		35,459			355			—			—			315,619			(34,695	)		625,470			906,749
Balances at December 31, 2018		35,482		$	355			—		$	—		$	323,622		$	(41,653	)	$	704,665		$	986,989
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes		299			3			—			—			(6,156	)		—			—			(6,153	)
Stock-based compensation expense		—			—			—			—			7,797			—			—			7,797
Foreign currency translation adjustments, net of tax		—			—			—			—			—			1,625			—			1,625
Net earnings		—			—			—			—			—			—			89,325			89,325
Balances at June 30, 2019		35,781		$	358			—		$	—		$	325,263		$	(40,028	)	$	793,990		$	1,079,583

See accompanying notes to consolidated financial statements.

4

INSIGHT ENTERPRISES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

	Six Months Ended June 30,
	2019			2018
Cash flows from operating activities:
Net earnings	$	89,325		$	84,482
Adjustments to reconcile net earnings to net cash provided by    operating activities:
Depreciation and amortization of property and equipment		9,982			10,712
Amortization of intangible assets		7,644			7,214
Provision for losses on accounts receivable		2,346			1,336
Write-downs of inventories		2,350			1,396
Write-off of property and equipment		—			309
Non-cash stock-based compensation		7,797			7,047
Deferred income taxes		1,180			2,020
Changes in assets and liabilities:
Increase in accounts receivable		(354,717	)		(287,191	)
(Increase) decrease in inventories		(33,359	)		18,281
(Increase) decrease in other assets		(93,714	)		16,717
Increase in accounts payable		448,682			450,471
Increase in deferred revenue		8,153			13,733
Increase in accrued expenses and other liabilities		86,869			24,428
Net cash provided by operating activities		182,538			350,955
Cash flows from investing activities:
Purchases of property and equipment		(10,584	)		(10,644	)
Acquisitions, net of cash and cash equivalents acquired		(3,362	)		—
Net cash used in investing activities		(13,946	)		(10,644	)
Cash flows from financing activities:
Borrowings on senior revolving credit facility		89,936			280,184
Repayments on senior revolving credit facility		(89,936	)		(397,684	)
Borrowings on accounts receivable securitization financing facility		1,919,500			1,696,500
Repayments on accounts receivable securitization financing facility		(2,068,500	)		(1,721,500	)
Repayments under Term Loan A		—			(6,563	)
Repayments under other financing agreements		—			(1,835	)
Payments on finance lease obligations		(603	)		(580	)
Net repayments under inventory financing facility		(43,240	)		(15,766	)
Payment of debt issuance costs		—			(270	)
Payment of payroll taxes on stock-based compensation    through shares withheld		(6,154	)		(2,925	)
Repurchases of common stock		—			(22,069	)
Net cash used in financing activities		(198,997	)		(192,508	)
Foreign currency exchange effect on cash, cash equivalents and    restricted cash balances		(183	)		(5,541	)
(Decrease) increase in cash, cash equivalents and restricted cash		(30,588	)		142,262
Cash, cash equivalents and restricted cash at beginning of period		144,293			107,445
Cash, cash equivalents and restricted cash at end of period	$	113,705		$	249,707

See accompanying notes to consolidated financial statements.

5

INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1. Basis of Presentation and Recently Issued Accounting Standards

We empower organizations of all sizes with Insight Intelligent Technology Solutions^TM to maximize the business value of IT in North America; Europe, the Middle East and Africa (“EMEA”); and Asia-Pacific (“APAC”).  As a Fortune 500-ranked global provider of digital innovation, cloud/data center transformation, connected workforce, and supply chain optimization solutions and services, we help clients innovate and optimize their operations to run smarter.  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.  Our offerings in the remainder of our EMEA and APAC segments consist of largely software and certain software-related services.  

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly our financial position as of June 30, 2019 and our results of operations for the three and six months ended June 30, 2019 and 2018 and cash flows for the six months ended June 30, 2019 and 2018.  The consolidated balance sheet as of December 31, 2018 was derived from the audited consolidated balance sheet at such date.  The accompanying unaudited consolidated financial statements and notes have been prepared in accordance with the rules and regulations promulgated by the Securities and Exchange Commission and consequently do not include all of the disclosures normally required by United States generally accepted accounting principles (“GAAP”).  

The results of operations for interim periods are not necessarily indicative of results for the full year, due in part to the seasonal nature of our business.  These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including the related notes thereto, in our Annual Report on Form 10-K for the year ended December 31, 2018.  Our results of operations include the results of Cardinal Solutions Group, Inc. (“Cardinal”) from its acquisition date of August 1, 2018.  

The consolidated financial statements include the accounts of Insight Enterprises, Inc. and its wholly owned subsidiaries.  All significant intercompany balances and transactions have been eliminated in consolidation.  

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements.  Additionally, these estimates and assumptions affect the reported amounts of net sales and expenses during the reporting period.  Actual results could differ from those estimates.  On an ongoing basis, we evaluate our estimates, including those related to sales recognition, anticipated achievement levels under partner funding programs, assumptions related to stock-based compensation valuation, allowances for doubtful accounts, valuation of inventories, litigation-related obligations, valuation allowances for deferred tax assets and impairment of long-lived assets, including purchased intangibles and goodwill, if indicators of potential impairment exist.

6

INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Recently Issued Accounting Standards

In June 2016, the Financial Accounting Standards Board’s (“FASB”) issued Accounting Standard Update (“ASU”) No. 2016-13, “Financial Instruments – Credit Losses.”  The new standard is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held at each reporting date.  The new standard is effective for interim and annual periods beginning after December 15, 2019, and early adoption is permitted.  We will adopt the new standard as of January 1, 2020 and do not expect the adoption to have a material effect on our consolidated financial statements.

In April 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.”  The new standard provides changes for how a company considers expected recoveries and contractual extensions or renewal options when estimating expected credit losses.  The new standard is effective with the adoption of  ASU No. 2016-13.  We will adopt the new standard as of January 1, 2020 and do not expect the adoption to have a material effect on our consolidated financial statements.    

Effective January 1, 2019, we adopted the FASB ASU No. 2016-02—Leases (Topic 842) using the effective date transition method. This approach provides a method for recording existing leases at adoption without restating comparative periods. We elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification.  In addition, we made an accounting policy election not to separate non-lease components from lease components for all existing classes of underlying assets with the exception of land and buildings.  We also made an accounting policy election to not record right of use (“ROU”) assets and lease liabilities for leases with an initial term of twelve months or less on our consolidated balance sheet.

Adoption of the new standard resulted in the recording of additional net operating lease ROU assets and lease liabilities of $65,922,000 and $70,512,000, respectively, as of January 1, 2019. The difference between the additional lease assets and lease liabilities reflected existing accrued and prepaid rent balances that were reclassified to the operating lease ROU asset at January 1, 2019. The standard did not materially impact our consolidated net earnings and had no impact on cash flows.  

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, 2018 that affect or may affect our current financial statements.

2. Leases

We lease office space, distribution centers, land, vehicles and equipment. Lease agreements with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term.   

Certain lease agreements include one or more options to renew, with renewal terms that can extend the lease term from one to five years or more. The exercise of lease renewal options is at our sole discretion. Some agreements also include options to purchase the leased property. The estimated life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.  

7

INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Certain of our lease agreements include rental payments adjusted periodically for inflation.  Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Significant Accounting Policy

We determine if a contract or arrangement is, or contains, a lease at inception.  Balances related to operating leases are included in other assets, other current liabilities, and other liabilities in our consolidated balance sheet.  Balances related to financing leases are included in property and equipment, current portion of long-term debt, and long-term debt in our consolidated balance sheet.  ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease.  

Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term.  As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.  We use the implicit rate when readily determinable.  The operating lease ROU asset includes any prepaid lease payments and additional direct costs and excludes lease incentives.  Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option.  

The following table provides information about the financial statement classification of our lease balances reported within the consolidated balances sheets as of June 30, 2019 and January 1, 2019 (in thousands):

Leases	Classification	June 30, 2019		January 1, 2019
Assets
Operating lease assets	Other assets	$	60,286	$	65,922
Finance lease assets	Property and equipment(a)		1,350		1,693
Total lease assets		$	61,636	$	67,615
Liabilities
Current
Operating lease liabilities	Accrued expenses and other current liabilities	$	15,096	$	15,788
Finance lease liabilities	Current portion of long-term debt		1,421		1,399
Non-current
Operating lease liabilities	Other liabilities		50,252		54,724
Finance lease liabilities	Long-term debt		930		1,521
Total lease liabilities		$	67,699	$	73,432

(a) Recorded net of accumulated amortization of $344,000 as of June 30, 2019 and there is no accumulated amortization as of January 1, 2019.

8

INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

The following table provides information about the financial statement classification of our lease expenses reported within the consolidated statement of operations for the three and six months ended June 30, 2019 (in thousands):

Lease cost	Classification	Three months ended June 30, 2019		Six months ended June 30, 2019
Operating lease cost (a) (b)	Selling and administrative expenses	$	4,850	$	9,768
Finance lease cost
Amortization of leased      assets	Selling and administrative expenses		173		344
Interest on lease liabilities	Interest expense, net		23		50
Total lease cost		$	5,046	$	10,162

(a) Includes immaterial amounts recorded to cost of goods sold.

(b) Excludes short-term and variable lease costs, which are immaterial.

Future minimum lease payments under non-cancelable leases as of June 30, 2019 are as follows (in thousands):

	Operating leases			Finance leases			Total
Remainder of 2019	$	9,416		$	869		$	10,285
2020		14,985			1,150			16,135
2021		12,470			432			12,902
2022		9,663			—			9,663
2023		6,557			—			6,557
After 2023		21,339			—			21,339
Total lease payments		74,430			2,451			76,881
Less:  Interest		(9,082	)		(100	)		(9,182	)
Present value of lease liabilities	$	65,348		$	2,351		$	67,699

Operating lease payments include $13.4 million related to options to extend lease terms that are reasonably certain of being exercised.

The following table provides information about the remaining lease terms and discount rates applied as of June 30, 2019:

	June 30, 2019
Weighted average remaining lease term (years)
Operating leases		6.56
Finance leases		1.94
Weighted average discount rate (%)
Operating leases		3.86
Finance leases		4.84

9

INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

The following table provides other information related to leases for the six months ended June 30, 2019 (in thousands):

	Six months ended June 30, 2019
Cash paid for amounts included in the measurement of lease    liabilities:
Operating cash flows from operating leases	$	9,269
Leased assets obtained in exchange for new operating lease liabilities		2,872

Operating Leases pre-Topic 842 adoption:

We have non-cancelable operating leases with third parties, primarily for administrative and distribution center space and computer equipment.  Our facilities leases generally provide for periodic rent increases and many contain escalation clauses and renewal options.  We recognize rent expense on a straight-line basis over the lease term.  Rental expense for these third-party operating leases was $20,114,000, $19,126,000 and $14,444,000 in 2018, 2017 and 2016, respectively, and is included in selling and administrative expenses.

Future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) as of December 31, 2018 are as follows (in thousands):

Years Ending December 31,
2019	$	21,499
2020		15,580
2021		12,121
2022		9,150
2023		6,296
Thereafter		7,238
Total minimum lease payments	$	71,884

Amounts in the table above exclude approximately $1.6 million in 2019 in non-cancellable rental income.

10

INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

3. Sales Recognition

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, 2019 and 2018 (in thousands):

	Three Months Ended June 30, 2019
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	935,792	$	142,951	$	9,979	$	1,088,722
Software		289,874		190,086		25,653		505,613
Services		179,841		46,137		15,708		241,686
	$	1,405,507	$	379,174	$	51,340	$	1,836,021
Major Client Groups
Large Enterprise / Corporate	$	1,071,611	$	281,013	$	16,785	$	1,369,409
Public Sector		156,381		78,343		15,096		249,820
Small and Medium-Sized Businesses		177,515		19,818		19,459		216,792
	$	1,405,507	$	379,174	$	51,340	$	1,836,021
Revenue Recognition based on acting as    Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	1,338,948	$	347,336	$	43,284	$	1,729,568
Net revenue recognition (Agent)		66,559		31,838		8,056		106,453
	$	1,405,507	$	379,174	$	51,340	$	1,836,021

	Three Months Ended June 30, 2018
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	898,143	$	171,336	$	9,318	$	1,078,797
Software		307,570		193,116		39,340		540,026
Services		163,053		45,084		13,910		222,047
	$	1,368,766	$	409,536	$	62,568	$	1,840,870
Major Client Groups
Large Enterprise / Corporate	$	1,006,406	$	298,796	$	14,089	$	1,319,291
Public Sector		135,709		94,487		29,503		259,699
Small and Medium-Sized Businesses		226,651		16,253		18,976		261,880
	$	1,368,766	$	409,536	$	62,568	$	1,840,870
Revenue Recognition based on acting as    Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	1,304,301	$	378,098	$	55,079	$	1,737,478
Net revenue recognition (Agent)		64,465		31,438		7,489		103,392
	$	1,368,766	$	409,536	$	62,568	$	1,840,870

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INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

	Six Months Ended June 30, 2019
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	1,684,129	$	314,476	$	16,497	$	2,015,102
Software		611,953		373,234		60,718		1,045,905
Services		351,866		81,639		26,975		460,480
	$	2,647,948	$	769,349	$	104,190	$	3,521,487
Major Client Groups
Large Enterprise / Corporate	$	2,048,452	$	541,620	$	30,092	$	2,620,164
Public Sector		253,498		187,409		41,250		482,157
Small and Medium-Sized Businesses		345,998		40,320		32,848		419,166
	$	2,647,948	$	769,349	$	104,190	$	3,521,487
Revenue Recognition based on acting as    Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	2,521,026	$	714,501	$	91,150	$	3,326,677
Net revenue recognition (Agent)		126,922		54,848		13,040		194,810
	$	2,647,948	$	769,349	$	104,190	$	3,521,487

	Six Months Ended June 30, 2018
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	1,771,485	$	358,346	$	16,478	$	2,146,309
Software		568,629		383,318		78,359		1,030,306
Services		307,032		75,006		24,711		406,749
	$	2,647,146	$	816,670	$	119,548	$	3,583,364
Major Client Groups
Large Enterprise / Corporate	$	1,959,215	$	571,435	$	27,055	$	2,557,705
Public Sector		246,214		211,101		60,879		518,194
Small and Medium-Sized Businesses		441,717		34,134		31,614		507,465
	$	2,647,146	$	816,670	$	119,548	$	3,583,364
Revenue Recognition based on acting as    Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	2,534,713	$	766,435	$	106,904	$	3,408,052
Net revenue recognition (Agent)		112,433		50,235		12,644		175,312
	$	2,647,146	$	816,670	$	119,548	$	3,583,364

The following table provides information about receivables, contract assets and contract liabilities as of June 30, 2019 and December 31, 2018 (in thousands):

	June 30,		December 31,
	2019		2018
Current receivables, which are included in “Accounts    receivable, net”	$	2,284,922	$	1,931,736
Non-current receivables, which are included in “Other assets”		142,890		38,157
Contract assets, which are included in “Other current assets”		958		892
Contract liabilities, which are included in “Deferred revenue”    and “Other liabilities”		89,737		82,117

12

INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Significant changes in the contract assets and the contract liabilities balances during the six months ended June 30, 2019 are as follows (in thousands):

	Increase (Decrease)
	Contract			Contract
	Assets			Liabilities
Balances at December 31, 2018	$	892		$	82,117
Reclassification of the beginning contract liabilities    to revenue, as the result of performance obligations satisfied		—			(36,525	)
Cash received in advance and not recognized as revenue		—			44,145
Reclassification of the beginning contract assets to receivables, as    the result of rights to consideration becoming unconditional		(251	)		—
Contract assets recognized, net of reclassification to receivables		317			—
Balances at June 30, 2019	$	958		$	89,737

The following table includes estimated net sales related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2019 that are expected to be recognized in the future (in thousands):

	Products		Services		Total
Remainder of 2019	$	6	$	57,666	$	57,672
2020		6		40,410		40,416
2021		—		16,058		16,058
2022		—		6,414		6,414
2023 and thereafter		—		3,403		3,403
Total remaining performance obligations	$	12	$	123,951	$	123,963

With the exception of remaining performance obligations associated with our OneCall Support Services contracts which are included in the table above regardless of original duration, remaining performance obligations that have original expected durations of one year or less are not included in the table above.  Amounts not included in the table above have an average original expected duration of nine months.  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, 2019 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 14 months.

The majority of our backlog historically has been and continues to be open cancelable purchase orders.  We do not believe that backlog as of any particular date is predictive of future results, therefore we do not include performance obligations under open cancelable purchase orders, which do not qualify for revenue recognition, in the table above.

13

INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

4. Net Earnings Per Share (“EPS”)

Basic EPS is computed by dividing net earnings available to common stockholders by the weighted average number of common shares outstanding during each period.  Diluted EPS is computed on the basis of the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method.  Dilutive potential common shares include outstanding restricted stock units (“RSUs”).  A reconciliation of the denominators of the basic and diluted EPS calculations follows (in thousands, except per share data):

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Numerator:
Net earnings	$	49,998	$	51,479	$	89,325	$	84,482
Denominator:
Weighted average shares used to    compute basic EPS		35,772		35,483		35,691		35,698
Dilutive potential common shares due to    dilutive RSUs, net of tax effect		339		332		416		341
Weighted average shares used to compute    diluted EPS		36,111		35,815		36,107		36,039
Net earnings per share:
Basic	$	1.40	$	1.45	$	2.50	$	2.37
Diluted	$	1.38	$	1.44	$	2.47	$	2.34

For the three and six months ended June 30, 2019, 1,000 and 83,000, respectively, of our RSUs were not included in the diluted EPS calculations because their inclusion would have been anti-dilutive.  These share-based awards could be dilutive in the future.  There were 13,000 and 17,000 anti-dilutive RSUs for the three and six months ended June 30, 2018, respectively.  

5. Debt, Inventory Financing Facility, Finance Leases and Other Financing Obligations

Debt

Our long-term debt consists of the following (in thousands):

	June 30, 2019			December 31, 2018
Senior revolving credit facility	$	—		$	—
Accounts receivable securitization financing facility		45,000			194,000
Finance leases and other financing obligations		2,351			2,920
Total		47,351			196,920
Less: current portion of long-term debt		(1,421	)		(1,395	)
Long-term debt	$	45,930		$	195,525

Our senior revolving credit facility (“revolving facility”) has an aggregate U.S. dollar equivalent maximum borrowing amount of $350,000,000, including a maximum borrowing capacity that may be used for borrowing in certain foreign currencies of $50,000,000, and matures on June 23, 2021.

Our accounts receivable securitization financing facility (the “ABS facility”) has a maximum aggregate borrowing availability of $250,000,000, and matures on June 23, 2021.  While the ABS facility has a stated maximum amount, the actual availability under the ABS facility is limited by

14

INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

the quantity and quality of the underlying accounts receivable.  As of June 30, 2019, qualified receivables were sufficient to permit access to the full $250,000,000 facility amount, of which $45,000,000 was outstanding.

Our consolidated debt balance that can be outstanding at the end of any fiscal quarter under our revolving facility and our ABS facility is limited by certain financial covenants, particularly a maximum leverage ratio.  The maximum leverage ratio is calculated as aggregate debt outstanding divided by the sum of our trailing twelve month net earnings (loss) plus (i) interest expense, excluding non-cash imputed interest on our inventory financing facility, (ii) income tax expense (benefit), (iii) depreciation and amortization, (iv) non-cash stock-based compensation, (v) extraordinary or non-recurring non-cash losses or expenses and (vi) certain cash restructuring and acquisition-related charges and synergies, not to exceed a specified cap (“adjusted earnings”).  The maximum leverage ratio permitted under the facilities is currently 3.0 times our trailing twelve-month adjusted earnings.  A significant drop in our adjusted earnings would limit the amount of indebtedness that could be outstanding at the end of any fiscal quarter to a level that would be below our consolidated maximum facility amount.  Based on our maximum leverage ratio as of June 30, 2019, our aggregate debt balance that could have been outstanding under our revolving facility and our ABS facility was the full amount of the maximum borrowing capacity of $600,000,000.

Inventory Financing Facility

As of June 30, 2019, our inventory financing facility had a maximum borrowing capacity of $400,000,000, of which $260,890,000 was outstanding at June 30, 2019.  The inventory financing facility matures on June 23, 2021.  If balances are not paid within stated vendor terms, they will accrue interest at prime plus 1.25%.  Amounts outstanding under this facility are classified separately as accounts payable – inventory financing facility in the accompanying consolidated balance sheets.  Further, see Note 13 for additional information.

Finance Lease and Other Financing Obligations

Our finance lease obligations totaled $2,351,000 and $2,920,000 as of June 30, 2019 and December 31, 2018, respectively.     

The current and long-term portions of our finance leases are included in the current and long-term portions of long-term debt in the table above and in our consolidated balance sheets as of June 30, 2019 and December 31, 2018.  Further, see Note 2 for additional information.    

6. Restricted Cash

Amounts included in restricted cash represent those required to be set aside by a contractual agreement with a lessor related to certain leased office space in foreign jurisdictions.  The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the balance sheets that sum to the total of the same such amounts shown in the statements of cash flows for the six months ended June 30, 2019 and 2018 (in thousands):

	June 30, 2019		December 31, 2018
Cash and cash equivalents	$	112,077	$	142,655
Restricted cash included in other current assets		—		8
Restricted cash included in other non-current assets		1,628		1,630
Total cash, cash equivalents and restricted cash shown in    the statement of cash flows	$	113,705	$	144,293

15

INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

	June 30, 2018		December 31, 2017
Cash and cash equivalents	$	248,122	$	105,831
Restricted cash included in other current assets		9		46
Restricted cash included in other non-current assets		1,576		1,568
Total cash, cash equivalents and restricted cash shown in    the statement of cash flows	$	249,707	$	107,445

7.Stock-Based Compensation

We recorded the following pre-tax amounts in selling and administrative expenses for stock-based compensation, by operating segment, in the accompanying consolidated financial statements (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
North America	$	2,740	$	2,945	$	5,863	$	5,335
EMEA		814		790		1,684		1,480
APAC		128		128		250		232
Total Consolidated	$	3,682	$	3,863	$	7,797	$	7,047

As of June 30, 2019, total compensation cost related to nonvested RSUs not yet recognized is $31,485,000, which is expected to be recognized over the next 1.65 years on a weighted-average basis.  

The following table summarizes our RSU activity during the six months ended June 30, 2019:

	Number			Weighted Average Grant Date Fair Value		Fair Value
Nonvested at January 1, 2019		1,020,930		$	36.10
Granted(a)		350,987			57.33
Vested, including shares withheld to cover taxes		(407,961	)		34.08	$	13,903,311	(b)
Forfeited		(47,051	)		41.33
Nonvested at June 30, 2019(a)		916,905			44.86	$	53,363,871	(c)

^(a) Includes 84,602 RSUs subject to remaining performance conditions.  The number of RSUs subject to performance conditions are based on the Company achieving 97% of its 2019 targeted financial results.  The number of RSUs ultimately awarded under the performance-based RSUs varies based on actual achieved financial results for 2019.  

^(b) The aggregate fair value of vested RSUs represents the total pre-tax fair value, based on the closing stock price on the day of vesting, which would have been received by holders of RSUs had all such holders sold their underlying shares on that date.  

^(c) The aggregate fair value of the nonvested RSUs and the RSUs expected to vest represents the total pre-tax fair value, based on our closing stock price of $58.20 as of June 28, 2019 (the last trading day of the quarter), which would have been received by holders of RSUs had all such holders sold their underlying shares on that date.

16

INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

8. Income Taxes

Our effective tax rate for the three and six months ended June 30, 2019 was 25.9% and 24.9%, respectively.  For the three months ended June 30, 2019, our effective tax rate was higher than the United States federal statutory rate of 21.0% due primarily to state income taxes, net of federal benefit, higher taxes on earnings in foreign jurisdictions, and the effect of non-deductible acquisition-related expenses partially offset by the recognition of tax benefits related to research and development activities.  For the six months ended June 30, 2019, our effective tax rate was higher than the United States federal statutory rate of 21.0% due primarily to state income taxes, net of federal benefit, and higher taxes on earnings in foreign jurisdictions partially offset by tax benefits on the settlement of employee share-based awards and the recognition of tax benefits related to research and development activities.  

Our effective tax rate for both the three and six months ended June 30, 2018 was 25.9%.  For the three and six months ended June 30, 2018, our effective tax rate was higher than the United States federal statutory rate of 21.0% due primarily to state income taxes net of federal benefit.

As of June 30, 2019, and December 31, 2018, we had approximately $8,337,000 and $6,849,000, respectively, of unrecognized tax benefits.  Of these amounts, approximately $440,000 and $313,000, respectively, related to accrued interest.  In the future, if recognized, the liability associated with uncertain tax positions would affect our effective tax rate.  We do not believe there will be any changes over the next 12 months that would have a material effect on our effective tax rate.  

Several of our subsidiaries are currently under audit for tax years 2012 through 2017.  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.  

9. Share Repurchase Program

On February 13, 2018, our Board of Directors authorized the repurchase of up to $50,000,000 of our common stock.  Our share repurchases will be made on the open market, subject to Rule 10b-18 or in privately negotiated transactions, through block trades, through 10b5-1 plans or otherwise, at management’s discretion.  The amount of shares purchased and the timing of the purchases will be based on market conditions, working capital requirements, general business conditions and other factors.  We intend to retire the repurchased shares.  

During the six months ended June 30, 2019, we did not repurchase any shares of our common stock.  During the comparative six months ended June 30, 2018, we repurchased 641,211 shares of our common stock on the open market at a total cost of approximately $22,069,000 (an average price of $34.42 per share).  All shares repurchased were retired.      

10. Commitments and Contingencies

Contractual

In the ordinary course of business, we issue performance bonds to secure our performance under certain contracts or state tax requirements.  As of June 30, 2019, we had approximately $3,939,000 of performance bonds outstanding.  These bonds are issued on our behalf by a surety company on an unsecured basis; however, if the surety company is ever required to pay out under the bonds, we have contractually agreed to reimburse the surety company.

17

INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Management believes that payments, if any, related to these performance bonds are not probable at June 30, 2019.  Accordingly, we have not accrued any liabilities related to such performance bonds in our consolidated financial statements.

Employment Contracts and Severance Plans

We have employment contracts with, and severance plans covering, certain officers and management teammates under which severance payments would become payable in the event of specified terminations without cause or terminations under certain circumstances after a change in control.  In addition, vesting of outstanding nonvested RSUs would accelerate following a change in control.  If severance payments under the current employment agreements or plan payments were to become payable, the severance payments would generally range from three to twenty-four months of salary.

Indemnifications

From time to time, in the ordinary course of business, we enter into contractual arrangements under which we agree to indemnify either our clients or third-party service providers from certain losses incurred relating to services performed on our behalf or for losses arising from defined events, which may include litigation or claims relating to past performance.  These arrangements include, but are not limited to, the indemnification of our clients for certain claims arising out of our performance under our sales contracts, the indemnification of our landlords for certain claims arising from our use of leased facilities and the indemnification of the lenders that provide our credit facilities for certain claims arising from their extension of credit to us.  Such indemnification obligations may not be subject to maximum loss clauses.

Management believes that payments, if any, related to these indemnifications are not probable at June 30, 2019.  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 arising in the ordinary course of business, including preference payment claims asserted in client bankruptcy proceedings, indemnification claims, claims of alleged infringement of patents, trademarks, copyrights and other intellectual property rights, claims of alleged non-compliance with contract provisions and claims

18

INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

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 appropriate.  If accruals are not appropriate, we further evaluate each legal proceeding to assess whether an estimate of possible loss or range of possible loss can be made for disclosure.  Although litigation is inherently unpredictable, we believe that we have adequate provisions for any probable and estimable losses.  It is possible, nevertheless, that our consolidated financial position, results of operations or liquidity could be materially and adversely affected in any particular period by the resolution of a legal proceeding.  Legal expenses related to defense, negotiations, settlements, rulings and advice of outside legal counsel are expensed as incurred.

The Company is not involved in any pending or threatened legal proceedings that it believes would reasonably be expected to have a material adverse effect on its business, financial condition or results of operations.

11.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.  Our offerings in the remainder of our EMEA and APAC segments are largely software and certain software-related services.

The following table summarizes net sales by offering for North America, EMEA and APAC for the three and six months ended June 30, 2019 and 2018 (in thousands):

	North America				EMEA				APAC
	Three Months Ended June 30,				Three Months Ended June 30,				Three Months Ended June 30,
Sales Mix	2019		2018		2019		2018		2019		2018
Hardware	$	935,792	$	898,143	$	142,951	$	171,336	$	9,979	$	9,318
Software		289,874		307,570		190,086		193,116		25,653		39,340
Services		179,841		163,053		46,137		45,084		15,708		13,910
	$	1,405,507	$	1,368,766	$	379,174	$	409,536	$	51,340	$	62,568
	North America				EMEA				APAC
	Six Months Ended June 30,				Six Months Ended June 30,				Six Months Ended June 30,
Sales Mix	2019		2018		2019		2018		2019		2018
Hardware	$	1,684,129	$	1,771,485	$	314,476	$	358,346	$	16,497	$	16,478
Software		611,953		568,629		373,234		383,318		60,718		78,359
Services		351,866		307,032		81,639		75,006		26,975		24,711
	$	2,647,948	$	2,647,146	$	769,349	$	816,670	$	104,190	$	119,548

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 or six months ended June 30, 2019 or 2018.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

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 considered 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, 2019
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	1,225,666	$	333,037	$	35,632	$	1,594,335
Services		179,841		46,137		15,708		241,686
Total net sales		1,405,507		379,174		51,340		1,836,021
Costs of goods sold:
Products		1,120,834		304,885		33,197		1,458,916
Services		85,614		9,839		6,203		101,656
Total costs of goods sold		1,206,448		314,724		39,400		1,560,572
Gross profit		199,059		64,450		11,940		275,449
Operating expenses:
Selling and administrative expenses		144,498		47,652		7,339		199,489
Severance and restructuring expenses		480		200		—		680
Acquisition-related expenses		3,163		—		—		3,163
Earnings from operations	$	50,918	$	16,598	$	4,601	$	72,117

	Three Months Ended June 30, 2018
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	1,205,713	$	364,452	$	48,658	$	1,618,823
Services		163,053		45,084		13,910		222,047
Total net sales		1,368,766		409,536		62,568		1,840,870
Costs of goods sold:
Products		1,105,275		338,142		44,970		1,488,387
Services		72,974		9,430		5,702		88,106
Total costs of goods sold		1,178,249		347,572		50,672		1,576,493
Gross profit		190,517		61,964		11,896		264,377
Operating expenses:
Selling and administrative expenses		135,206		46,894		7,364		189,464
Severance and restructuring expenses		338		41		3		382
Acquisition-related expenses		94		—		—		94
Earnings from operations	$	54,879	$	15,029	$	4,529	$	74,437

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

	Six Months Ended June 30, 2019
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	2,296,082	$	687,710	$	77,215	$	3,061,007
Services		351,866		81,639		26,975		460,480
Total net sales		2,647,948		769,349		104,190		3,521,487
Costs of goods sold:
Products		2,095,535		628,923		71,766		2,796,224
Services		170,747		18,993		11,602		201,342
Total costs of goods sold		2,266,282		647,916		83,368		2,997,566
Gross profit		381,666		121,433		20,822		523,921
Operating expenses:
Selling and administrative expenses		281,448		94,797		14,307		390,552
Severance and restructuring expenses		811		115		124		1,050
Acquisition-related expenses		3,163		—		—		3,163
Earnings from operations	$	96,244	$	26,521	$	6,391	$	129,156

	Six Months Ended June 30, 2018
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	2,340,114	$	741,664	$	94,837	$	3,176,615
Services		307,032		75,006		24,711		406,749
Total net sales		2,647,146		816,670		119,548		3,583,364
Costs of goods sold:
Products		2,134,245		681,161		87,967		2,903,373
Services		147,013		17,495		10,843		175,351
Total costs of goods sold		2,281,258		698,656		98,810		3,078,724
Gross profit		365,888		118,014		20,738		504,640
Operating expenses:
Selling and administrative expenses		267,846		95,177		14,621		377,644
Severance and restructuring expenses		781		1,115		130		2,026
Acquisition-related expenses		94		—		—		94
Earnings from operations	$	97,167	$	21,722	$	5,987	$	124,876

The following is a summary of our total assets by reportable operating segment (in thousands):

	June 30, 2019			December 31, 2018
North America	$	3,009,462		$	2,660,886
EMEA		747,769			611,338
APAC		165,963			98,959
Corporate assets and intercompany eliminations, net		(637,197	)		(595,236	)
Total assets	$	3,285,997		$	2,775,947

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

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 June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Depreciation and amortization of property and    equipment:
North America	$	3,786	$	4,158	$	7,743	$	8,456
EMEA		1,012		998		1,967		2,001
APAC		140		123		272		255
		4,938		5,279		9,982		10,712
Amortization of intangible assets:
North America		3,636		3,361		7,272		6,721
EMEA		69		71		138		145
APAC		116		171		234		348
		3,821		3,603		7,644		7,214
Total	$	8,759	$	8,882	$	17,626	$	17,926

12.Acquisition

Cardinal

Effective August 1, 2018, we acquired 100 percent of the issued and outstanding shares of Cardinal, a digital solutions provider based in Cincinnati, Ohio, with offices across the Midwest and Southeast United States, for a cash purchase price, net of cash acquired, of approximately $78,400,000, including final working capital and tax gross up adjustments.  Cardinal provides technology solutions to digitally transform organizations through their expertise in mobile applications development, Internet of Things and cloud enabled business intelligence.  We believe that this acquisition strengthens our services capabilities and will bring value to our clients within our digital innovation services solution offering.

The fair value of net assets acquired was approximately $42,360,000, including $27,540,000 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 currently available.  We finalized the fair value assumptions for identifiable intangible assets acquired in the fourth quarter of 2018.  Goodwill acquired approximated $36,040,000 which was recorded in our North America operating segment.  The goodwill is tax deductible.  The working capital adjustment in the amount of $762,000 was finalized in the fourth quarter of 2018 and paid in January 2019.  Additionally, we finalized the purchase price allocation when the tax gross up adjustment of $2,600,000 was agreed upon in April 2019.  This resulted in a reduction of the previously recorded purchase price of $400,000.

13. Subsequent Event

On July 10, 2019, we entered into an unsecured inventory financing facility with a maximum borrowing capacity of $200,000,000.  This agreement will stay in effect until it is terminated by any of the parties.  If balances are not paid within stated vendor terms, they will accrue interest at prime plus 2.00%.  Amounts outstanding under this facility will be classified as accounts payable – inventory financing facility in the accompanying balance sheets.  

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion should be read in conjunction with the consolidated financial statements and the related notes that appear elsewhere in this Quarterly Report on Form 10-Q.  We refer to our customers as “clients,” our suppliers as “partners” and our employees as “teammates.”

Quarterly Overview

Today, every business is a technology business.  We empower organizations of all sizes with Intelligent Technology Solutions^TM and services to maximize the business value of information technology (“IT”) in North America; Europe, the Middle East and Africa (“EMEA”); and Asia-Pacific (“APAC”).  As a Fortune 500-ranked global provider of digital innovation, cloud/data center transformation, connected workforce, and supply chain optimization solutions, we help clients innovate and optimize their operations to run smarter. Our offerings in North America and certain countries in EMEA and APAC include hardware, software and services.  Our offerings in the remainder of our EMEA and APAC segments are largely software and certain software-related services.

On a consolidated basis, for the three months ended June 30, 2019:

• Net sales of $1.84 billion remained flat compared to the three months ended June 30, 2018.  This reflects a decrease in software net sales offset by growth in our hardware and services net sales.  Excluding the effects of fluctuating foreign currency exchange rates, net sales increased 1% compared to the second quarter of 2018.

• Gross profit of $275.5 million increased 4% compared to the three months ended June 30, 2018, up 6% year over year excluding the effects of fluctuating foreign currency exchange rates.

• Gross margin improved approximately 60 basis points to 15.0% of net sales in the three months ended June 30, 2019.  This increase reflects a change in sales mix towards higher margin net sales categories, including cloud solutions and services provided by Cardinal compared to the same period in the prior year.

• Earnings from operations decreased 3% year to year to $72.1 million in the second quarter of 2019 compared to $74.4 million in the second quarter of 2018.  Excluding the effects of fluctuating foreign currency exchange rates, consolidated earnings from operations decreased 2% year to year.

• Net earnings and diluted earnings per share were $50.0 million and $1.38, respectively, for the second quarter of 2019.  This compares to net earnings of $51.5 million and diluted earnings per share of $1.44 for the second quarter of 2018.

Recent Developments

On June 23, 2019, we entered into an agreement and plan of merger (the “Merger Agreement”) with PCM, Inc. a Delaware corporation (“PCM”), and TROJAN Acquisition Corp., a Delaware corporation and wholly owned subsidiary (“Merger Sub”) of Insight. Pursuant to, and on the terms and subject to the conditions of, the Merger Agreement, Merger Sub will be merged with and into PCM (the “Merger”), with PCM continuing as the surviving corporation in the Merger.

On the terms and subject to the conditions of the Merger Agreement, at the effective time of the Merger, each share of common stock, par value $0.001, of PCM issued and outstanding (with certain exceptions) immediately prior to the effective time will be converted into the right to

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (continued)

receive $35.00 in cash, without interest.  We will fund the Merger through cash on hand and borrowings under a new asset based loan revolving credit facility.

PCM is a provider of multi-vendor technology offerings, including hardware, software and services to small, mid-sized and corporate/enterprise commercial clients, state, local and federal governments and educational institutions across the United States, Canada and the United Kingdom.  Based in El Segundo, California, PCM has 40 office locations globally and more than 4,000 teammates.  We believe that this acquisition allows us to help existing PCM clients in positioning their businesses for future growth, transforming and securing their data platforms, creating modern and mobile experiences for their workforce and optimizing the procurement of technology.  The addition of PCM complements our Supply Chain Optimization solution offering, adding scale and clients in the mid-market and corporate space in North America.

The transaction is still subject to certain customary closing conditions, including regulatory approvals and approval by PCM’s shareholders, and is expected to close by the end of the third quarter of 2019.

Throughout the “Quarterly Overview” and “Results of Operations” sections of this “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” we refer to changes in net sales, gross profit, selling and administrative expenses and earnings from operations on a consolidated basis and in North America, EMEA and APAC excluding the effects of fluctuating foreign currency exchange rates.  In computing the changes in amounts and percentages, we compare the current period amount as translated into U.S. dollars under the applicable accounting standards to the prior period amount in local currency translated into U.S. dollars utilizing the weighted average translation rate for the current period.

Details about segment results of operations can be found in Note 11 to the Consolidated Financial Statements in Part I, Item 1 of this report.

Our discussion and analysis of financial condition and results of operations is intended to assist in the understanding of our consolidated financial statements, including the changes in certain key items in those consolidated financial statements from period to period and the primary factors that contributed to those changes, as well as how certain critical accounting estimates affect our consolidated financial statements.

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AND RESULTS OF OPERATIONS (continued)

Critical Accounting Estimates

Our consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”).  For a summary of significant accounting policies, see Note 1 to the Consolidated Financial Statements in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2018.  The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, net sales and expenses.  We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.  Actual results, however, may differ from estimates we have made.  Members of our senior management have discussed the critical accounting estimates and related disclosures with the Audit Committee of our Board of Directors.  

There have been no changes to the items disclosed as critical accounting estimates in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2018.  

Results of Operations

The following table sets forth certain financial data as a percentage of net sales for the three months ended June 30, 2019 and 2018:

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Net sales		100.0	%		100.0	%		100.0	%		100.0	%
Costs of goods sold		85.0			85.6			85.1			85.9
Gross profit		15.0			14.4			14.9			14.1
Selling and administrative expenses		10.9			10.3			11.1			10.5
Severance and restructuring expenses and acquisition-related expenses		0.2			—			0.1			0.1
Earnings from operations		3.9			4.1			3.7			3.5
Non-operating expense, net		0.3			0.3			0.3			0.3
Earnings before income taxes		3.6			3.8			3.4			3.2
Income tax expense		0.9			1.0			0.8			0.8
Net earnings		2.7	%		2.8	%		2.6	%		2.4	%

We experience some seasonal trends in our sales of IT hardware, software and services.  Software sales are typically seasonally higher in our second quarter.  Business clients, particularly larger enterprise businesses in the United States, tend to spend more in our fourth quarter and less in our first quarter.  Sales to the federal government in the United States are often stronger in our third quarter, while sales in the state and local government and education markets are stronger in our second quarter.  Sales to public sector clients in the United Kingdom are often stronger in our first quarter.  These trends create overall seasonality in our consolidated results such that net sales and profitability are expected to be higher in the second and fourth quarters of the year.

Our gross profit across the business is, and will continue to be, impacted by partner incentives, which can change significantly in the amounts made available and the related product or services sales being incentivized by the partner.  Incentives from our largest partners are

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AND RESULTS OF OPERATIONS (continued)

significant and changes in the incentives could impact our results of operations to the extent we are unable to adapt our sales strategies to optimize performance under the revised programs.   

Net Sales.  Net sales for the three months ended June 30, 2019 remained flat year to year at $1.84 billion compared to the three months ended June 30, 2018.  Net sales for the six months ended June 30, 2019 decreased 2% year to year to $3.52 billion compared to the six months ended June 30, 2018.  Our net sales by operating segment were as follows for the three and six months ended June 30, 2019 and 2018 (dollars in thousands):

	Three Months Ended June 30,				%			Six Months Ended June 30,				%
	2019		2018		Change			2019		2018		Change
North America	$	1,405,507	$	1,368,766		3	%	$	2,647,948	$	2,647,146		—	%
EMEA		379,174		409,536		(7	%)		769,349		816,670		(6	%)
APAC		51,340		62,568		(18	%)		104,190		119,548		(13	%)
Consolidated	$	1,836,021	$	1,840,870		—	%	$	3,521,487	$	3,583,364		(2	%)

Our net sales by offering category for North America for the three and six months ended June 30, 2019 and 2018 were as follows (dollars in thousands):

	Three Months Ended June 30,				%			Six Months Ended June 30,				%
Sales Mix	2019		2018		Change			2019		2018		Change
Hardware	$	935,792	$	898,143		4	%	$	1,684,129	$	1,771,485		(5	%)
Software		289,874		307,570		(6	%)		611,953		568,629		8	%
Services		179,841		163,053		10	%		351,866		307,032		15	%
	$	1,405,507	$	1,368,766		3	%	$	2,647,948	$	2,647,146		—	%

  Net sales in North America increased 3%, or $36.7 million, for the three months ended June 30, 2019 compared to the three months ended June 30, 2018, primarily driven by growth in hardware net sales.  Net sales of hardware and services were up 4% and 10%, respectively, year over year, while net sales of software declined 6% year to year.  The net changes for the three months ended June 30, 2019 were the result of the following:

• The increase in hardware net sales was due primarily to higher sales of client devices, storage and networking solutions to large enterprise clients.

• The decrease in software net sales was due to continued client migration of software applications to cloud solutions which are recorded net in services net sales.

• The increase in services net sales was due to higher sales of cloud solutions and an increase in Insight delivered services, attributable to our acquisition of Cardinal.

Net sales in North America increased less than 1%, or $802,000, for the six months ended June 30, 2019 compared to the six months ended June 30, 2018, primarily driven by increases in software and services net sales offset by declines in hardware net sales.  Net sales of software and services were up 8% and 15%, respectively, year over year, while net sales of hardware declined 5% year to year.  The net changes for the first half of 2019 were the result of the following:

• The decrease in hardware net sales was due primarily to lower sales of client devices, storage and networking solutions to large enterprise clients.

• The increase in software net sales was primarily the result of a significant transaction during the first quarter of 2019 with a large enterprise client with no comparable transaction in the same quarter in prior year.  The increase was partially

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AND RESULTS OF OPERATIONS (continued)

offset by continued client migration of software applications to cloud solutions which are recorded net in services net sales.

• The increase in services net sales was due to higher sales of cloud solutions, increase in vendor rebates and an increase in Insight delivered services, attributable to our acquisition of Cardinal.  

Our net sales by offering category for EMEA for the three and six months ended June 30, 2019 and 2018 were as follows (dollars in thousands):  

	Three Months Ended June 30,				%			Six Months Ended June 30,				%
Sales Mix	2019		2018		Change			2019		2018		Change
Hardware	$	142,951	$	171,336		(17	%)	$	314,476	$	358,346		(12	%)
Software		190,086		193,116		(2	%)		373,234		383,318		(3	%)
Services		46,137		45,084		2	%		81,639		75,006		9	%
	$	379,174	$	409,536		(7	%)	$	769,349	$	816,670		(6	%)

Net sales in EMEA decreased 7%, or $30.4 million, in the three months ended June 30, 2019 compared to the three months ended June 30, 2018.  Excluding the effects of fluctuating foreign currency exchange rates, net sales in EMEA decreased 3%, year to year.  Net sales of hardware and software declined 17% and 2%, respectively, year to year, while net sales of services increased 2% year over year.  The net changes for the three months ended June 30, 2019 were the result of the following:

• The decrease in hardware net sales was due primarily to lower volume sales of networking solutions to public sector clients.

• The decrease in software net sales was due to continued client migration of software applications to cloud solutions which are recorded net in services net sales.

• The increase in services net sales was due primarily to higher sales of cloud solutions and higher volume of Insight delivered services.

Net sales in EMEA decreased 6%, or $47.3 million, in the first half of 2019 compared to the first half of 2018.  Excluding the effects of fluctuating foreign currency exchange rates, net sales in EMEA decreased less than 1%, year to year.  Net sales of hardware and software declined 12% and 3%, respectively, year to year, while net sales of services increased 9% year over year.  The net changes for the first half of 2019 were the result of the following:

• The decrease in hardware net sales was due primarily to lower volume sales of networking solutions to public sector clients.

• The decrease in software net sales was due to continued client migration of software applications to cloud solutions which are recorded net in services net sales.

• The increase in services net sales was due primarily to higher sales of cloud solutions and higher volume of Insight delivered services.  

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AND RESULTS OF OPERATIONS (continued)

Our net sales by offering category for APAC for the three and six months ended June 30, 2019 and 2018 were as follows (dollars in thousands):

	Three Months Ended June 30,				%			Six Months Ended June 30,				%
Sales Mix	2019		2018		Change			2019		2018		Change
Hardware	$	9,979	$	9,318		7	%	$	16,497	$	16,478		—	%
Software		25,653		39,340		(35	%)		60,718		78,359		(23	%)
Services		15,708		13,910		13	%		26,975		24,711		9	%
	$	51,340	$	62,568		(18	%)	$	104,190	$	119,548		(13	%)

Net sales in APAC decreased 18%, or $11.2 million, in the second quarter of 2019 compared to the second quarter of 2018.  Excluding the effects of fluctuating foreign currency exchange rates, net sales in APAC decreased 12%, year to year.  Net sales of software declined 35% year to year, partially offset by an increase in hardware and services net sales of 7% and 13%, respectively, year over year.  The net changes for the three months ended June 30, 2019 were the result of the following:

• The increase in hardware net sales was primarily due to higher volume of sales with enterprise clients.

• The decrease in software net sales was due primarily to lower volume of sales to enterprise and public sector clients.

• The increase in services net sales was due to higher volume of referral fees and vendor reimbursements and an increase in Insight delivered services.  

Net sales in APAC decreased 13%, or $15.4 million, in the first half of 2019 compared to the first half of 2018.  Excluding the effects of fluctuating foreign currency exchange rates, net sales in APAC decreased 6%, year to year.  Net sales of software declined 23%, year to year, partially offset by an increase in services net sales of 9%, year over year.  The net changes for the first half of 2019 were the result of the following:

• The decrease in software net sales was due primarily to lower volume with public sector clients.

• The increase in services net sales was due to higher volume of referral fees, higher volume of sales of cloud solutions and an increase in Insight delivered services.

The percentage of net sales by category for North America, EMEA and APAC were as follows for the three and six months ended June 30, 2019 and June 30, 2018:

	North America						EMEA						APAC
	Three Months Ended June 30,						Three Months Ended June 30,						Three Months Ended June 30,
Sales Mix	2019			2018			2019			2018			2019			2018
Hardware		67	%		66	%		38	%		42	%		19	%		15	%
Software		20	%		22	%		50	%		47	%		50	%		63	%
Services		13	%		12	%		12	%		11	%		31	%		22	%
		100	%		100	%		100	%		100	%		100	%		100	%

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (continued)

	North America						EMEA						APAC
	Six Months Ended June 30,						Six Months Ended June 30,						Six Months Ended June 30,
Sales Mix	2019			2018			2019			2018			2019			2018
Hardware		64	%		68	%		41	%		46	%		16	%		13	%
Software		23	%		21	%		48	%		47	%		58	%		68	%
Services		13	%		11	%		11	%		7	%		26	%		19	%
		100	%		100	%		100	%		100	%		100	%		100	%

Gross Profit.  Gross profit increased 4%, or $11.1 million, in the three months ended June 30, 2019, compared to the three months ended June 30, 2018, with gross margin increasing approximately 60 basis points to 15.0% for the three months ended June 30, 2019 compared to 14.4% for the three months ended June 30, 2018.  Gross profit increased 4%, or $19.3 million, in the six months ended June 30, 2019 compared to the six months ended June 30, 2018, with gross margin increasing approximately 80 basis points to 14.9% for the first half of 2019 compared to 14.1% for the first half of 2018.  Our gross profit and gross profit as a percentage of net sales by operating segment were as follows for the three and six months ended June 30, 2019 and 2018 (dollars in thousands):

	Three Months Ended June 30,										Six Months Ended June 30,
	2019		% of Net Sales			2018		% of Net Sales			2019		% of Net Sales			2018		% of Net Sales
North America	$	199,059		14.2	%	$	190,517		13.9	%	$	381,666		14.4	%	$	365,888		13.8	%
EMEA		64,450		17.0	%		61,964		15.1	%		121,433		15.8	%		118,014		14.5	%
APAC		11,940		23.3	%		11,896		19.0	%		20,822		20.0	%		20,738		17.3	%
Consolidated	$	275,449		15.0	%	$	264,377		14.4	%	$	523,921		14.9	%	$	504,640		14.1	%

North America’s gross profit for the three months ended June 30, 2019 increased $8.5 million, or 4%, compared to the three months ended June 30, 2018.  As a percentage of net sales, gross margin increased approximately 30 basis points to 14.2% for the second quarter of 2019.  The year over year improvement in gross margin was primarily attributable to the following:

• An increase in services net sales, typically transacted at higher margins than product net sales, which contributed 12 basis points of the margin expansion combined with an increase in product margin, which includes partner funding and freight, of 12 basis points.

• The increase in margin from services net sales during the current quarter resulted from a higher volume of Insight delivered services and a higher volume of cloud solutions that are recorded net.

• The increase in product margin is primarily the result of sales of hardware at higher margins than in the same period in the prior year.    

North America’s gross profit for the six months ended June 30, 2019 increased $15.8 million, or 4%, compared to the six months ended June 30, 2018.  As a percentage of net sales, gross margin increased approximately 60 basis points to 14.4% for the first half of 2019.  The year over year improvement in gross margin was primarily attributable to the following:

• An increase in services net sales, which contributed 80 basis points of the margin expansion, partially offset by a net decrease in product margin, which includes partner funding and freight, of 20 basis points.

• The increase in margin from services net sales during the first six months of 2019 resulted from a higher volume of Insight delivered services, a higher volume of cloud solutions that are recorded net and higher services vendor reimbursement fees.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (continued)

• The decrease in product margin is primarily the result of a reduction in partner funding due to lower hardware sales in the current quarter compared to the same period in the prior year.    

EMEA’s gross profit for the three months ended June 30, 2019 increased $2.5 million, or 4% (9% excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended June 30, 2018.  As a percentage of net sales, gross margin increased approximately 190 basis points, year over year.  The year over year improvement in gross margin was primarily attributable to an increase in higher margin services net sales, which contributed 87 basis points of the margin expansion, together with a net increase in product margin, which includes partner funding and freight, of 100 basis points.

EMEA’s gross profit for the six months ended June 30, 2019 increased $3.4 million, or 3% (9% excluding the effects of fluctuating foreign currency exchange rates), compared to the first half of 2018.  As a percentage of net sales, gross margin increased approximately 130 basis points, year over year.  The year over year improvement in gross margin was primarily attributable to an increase in higher margin services net sales, which contributed 110 basis points of the margin expansion, together with a net increase in product margin, which includes partner funding and freight, of 23 basis points.                    

APAC’s gross profit for the three months ended June 30, 2019 remained flat compared to the three months ended June 30, 2018 (increasing 7% excluding fluctuating foreign currency exchange rates).  As a percentage of net sales, gross margin increased approximately 430 basis points, year over year.  The increase in gross margin in the second quarter of 2019 compared to the second quarter of 2018 was primarily due to an increase in mix of cloud solutions recorded net, higher vendor reimbursement fees and higher gross profits from Insight delivered services, partially offset by lower margins on software net sales.

APAC’s gross profit for the first half of 2019 remained flat compared to the first half of 2018 (increasing 8% excluding fluctuating foreign currency exchange rates).  As a percentage of net sales, gross margin increased approximately 270 basis points, year over year.  The increase in gross margin in the first six months of 2019 compared to the first six months of 2018 was primarily due to an increase in mix of cloud solutions recorded net, higher vendor reimbursement fees and higher gross profits from Insight delivered services, partially offset by lower margins on software net sales.

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INSIGHT ENTERPRISES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (continued)

Operating Expenses.

Selling and Administrative Expenses. Selling and administrative expenses increased $10.0 million, or 5%, for the three months ended June 30, 2019 compared to the three months ended June 30, 2018.  Selling and administrative expenses increased $12.9 million, or 3%, for the six months ended June 30, 2019 compared to the six months ended June 30, 2018.  Our selling and administrative expenses by major expense type for the three and six months ended June 30, 2019 and 2018 were as follows (dollars in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Personnel costs, including teammate benefits	$	157,926	$	149,482	$	308,417	$	297,318
Depreciation and amortization		8,759		8,882		17,626		17,926
Facility expenses		6,519		6,531		13,182		13,122
Travel and entertainment		6,600		6,664		12,846		12,792
Legal and professional fees		3,892		3,485		7,834		7,518
Marketing		2,957		2,709		5,279		5,353
Other		12,836		11,711		25,368		23,615
Total	$	199,489	$	189,464	$	390,552	$	377,644

Selling and administrative expenses increased approximately 60 basis points as a percentage of net sales in the second quarter of 2019 compared to the second quarter of 2018.  The overall net increase in selling and administrative expenses reflects an $8.4 million increase in personnel costs, including teammate benefits expenses primarily due to increased headcount, including the acquisition of Cardinal, and increased variable compensation resulting from increased gross profit in the second quarter of 2019 compared to the second quarter of 2018.

Selling and administrative expenses increased approximately 60 basis points as a percentage of net sales in the first half of 2019 compared to the first half of 2018.  The overall net increase in selling and administrative expenses reflects an $11.1 million increase in personnel costs, including teammate benefits expenses primarily due to increased headcount, including the acquisition of Cardinal, and increased variable compensation resulting from increased gross profit in the first half of 2019 compared to the first half of 2018.  

Severance and Restructuring Expenses.  During the three months ended June 30, 2019, we recorded severance expense, net of adjustments, of approximately $680,000.  During the six months ended June 30, 2019, we recorded severance expense, net of adjustments, of approximately $1.1 million.  The charges in all three operating segments primarily related to a realignment of certain roles and responsibilities.  Current period charges were partially offset by adjustments for changes in estimates of previous accruals as cash payments were made.  Comparatively, during the three months ended June 30, 2018, we recorded severance expense, net of adjustments, of approximately $382,000.  For the six months ended June 30, 2018, we recorded severance expense, net of adjustments, of approximately $2.0 million.  

Acquisition-related Expenses.  During both the three and six months ended June 30, 2019, we incurred $3.2 million in direct third-party transaction costs related to the pending acquisition of PCM.  Comparatively, during both the three and six months ended June 30, 2018, we incurred $94,000 in direct third-party transaction costs related to the acquisition of Cardinal in 2018.  

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INSIGHT ENTERPRISES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (continued)

Non-Operating (Income) Expense.

Interest Income.  Interest income for the three and six months ended June 30, 2019 and 2018 was generated from interest earned on cash and cash equivalent bank balances.  The increase in interest income year over year was primarily due to higher average interest-bearing cash and cash equivalent balances and to higher interest rates during the three and six months ended June 30, 2019 compared to the three and six months ended June 30, 2018.    

Interest Expense.  Interest expense primarily relates to borrowings under our financing facilities and imputed interest under our inventory financing facility.  Interest expense for the three months ended June 30, 2019 decreased 10%, or $501,000, compared to the three months ended June 30, 2018.  Interest expense for the six months ended June 30, 2019 decreased 15%, or $1.7 million, compared to the six months ended June 30, 2018.  These decreases were due primarily to lower average daily balances on our debt facilities, partially offset by higher interest rates.  Imputed interest under our inventory financing facility was $2.9 million and $5.9 million for the three and six months ended June 30, 2019, respectively, compared to $2.4 million and $4.9 million for the three and six months ended June 30, 2018, respectively.  The increases were a result of a higher average incremental borrowing rate used to compute the imputed interest amounts during the 2019 periods.  For a description of our various financing facilities, see Note 5 to our Consolidated Financial Statements in Part I, Item 1 of this report.

Net Foreign Currency Exchange Gains/Losses.  These gains/losses result from foreign currency transactions, including foreign currency derivative contracts and intercompany balances that are not considered long-term in nature.  The change in net foreign currency exchange gains/losses is due primarily to the underlying changes in the applicable exchange rates, partially mitigated by our use of foreign exchange forward contracts to offset the effects of fluctuations in foreign currencies on certain of our non-functional currency assets and liabilities.

Income Tax Expense.  Our effective tax rate of 25.9% for the three months ended June 30, 2019 was unchanged from the three months ended June 30, 2018. Our effective tax rate of 24.9% for the six months ended June 30, 2019 was lower than our effective tax rate of 25.9% for the six months ended June 30, 2018.  The decrease in our effective tax rate for the first half of 2019 compared to the first half of 2018 was due primarily to the recognition of tax benefits related to research and development activities during the first quarter of 2019 compared to the first quarter of 2018.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (continued)

Liquidity and Capital Resources

The following table sets forth certain consolidated cash flow information for the six months ended June 30, 2019 and 2018 (in thousands):

	Six Months Ended June 30,
	2019			2018
Net cash provided by operating activities	$	182,538		$	350,955
Net cash used in investing activities		(13,946	)		(10,644	)
Net cash used in financing activities		(198,997	)		(192,508	)
Foreign currency exchange effect on cash, cash equivalent    and restricted cash balances		(183	)		(5,541	)
Increase in cash, cash equivalents and restricted cash		(30,588	)		142,262
Cash, cash equivalents and restricted cash at beginning of period		144,293			107,445
Cash, cash equivalents and restricted cash at end of period	$	113,705		$	249,707

Cash and Cash Flow

• Our primary uses of cash during the six months ended June 30, 2019 were to pay down our debt balances and for capital expenditures, as well as funding our working capital requirements.  

• Operating activities provided $182.5 million in cash during the six months ended June 30, 2019, compared to $351.0 million during the six months ended June 30, 2018.

• We had net repayments under our inventory financing facility of $43.2 million during the six months ended June 30, 2019, compared to net repayments of $15.8 million during the six months ended June 30, 2018.  

• We had combined net repayments under our revolving facility and ABS facility, during the six months ended June 30, 2019 and 2018, that decreased our outstanding long-term debt by $149.0 million and $149.1 million, respectively.  

• Capital expenditures were $10.6 million in both the six months ended June 30, 2019 and June 30, 2018.  

• Cash, cash equivalents and restricted cash balances in the six months ended June 30, 2019 and 2018 were negatively affected by $183,000 and $5.5 million, respectively, as a result of foreign currency exchange rates.

We expect that cash flows from operations, together with the funds available under our financing facilities, will be adequate to support our presently anticipated cash and working capital requirements for operations over the next 12 months.      

Net cash provided by operating activities  

• Cash flow from operating activities in the first half of 2019 was $182.5 million compared to $351.0 million in the first half of 2018.  

• The anticipated increases in accounts receivable and accounts payable reflects the seasonal increase in net sales from the fourth quarter to the second quarter, which results in higher accounts receivable and accounts payable balances as of June 30, compared to December 31.  

• The significant increases in both other assets and accrued expenses and other liabilities for the six months ended June 30, 2019 resulted from a single significant transaction in 2019 with no comparable activity in the prior year.  

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INSIGHT ENTERPRISES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (continued)

Our consolidated cash flow operating metrics were as follows:

	Three Months Ended June 30,
	2019			2018
Days sales outstanding in ending accounts receivable (“DSOs”) (a)		113			107
Days inventory outstanding (“DIOs”) (b)		11			11
Days purchases outstanding in ending accounts payable (“DPOs”) (c)		(98	)		(98	)
Cash conversion cycle (days) (d)		26			20

(a) Calculated as the balance of current accounts receivable, net at the end of the quarter divided by daily net sales.  Daily net sales is calculated as net sales for the quarter divided by 91 days.

(b) Calculated as average inventories (excluding inventories not available for sale) divided by daily costs of goods sold.  Average inventories is calculated as the sum of the balances of inventories at the beginning of the quarter plus inventories at the end of the quarter divided by two.  Daily costs of goods sold is calculated as costs of goods sold for the quarter divided by 91 days.

(c) Calculated as the sum of the balances of accounts payable – trade and accounts payable – inventory financing facility at the end of the quarter divided by daily costs of goods sold.  Daily costs of goods sold is calculated as costs of goods sold for the quarter divided by 91 days.

(d) Calculated as DSOs plus DIOs, less DPOs.

Our cash conversion cycle was 26 days in the second quarter of 2019, up six days from the second quarter of 2018.  The net changes were a result of a six day increase in DSOs primarily due to the relative timing of sales during the respective quarters and other sales related timing differences.

We expect that cash flow from operations will be used, at least partially, to fund working capital as we typically pay our partners on average terms that are shorter than the average terms we grant to our clients to take advantage of supplier discounts.  We intend to use cash generated in the remainder of 2019 in excess of working capital needs to partially fund our acquisition of PCM, to pay down our debt balances, to repurchase shares of our common stock and to support our capital expenditures for the year.  We also may use cash to fund potential acquisitions to add select capabilities within our current geographic operating segments.

Net cash used in investing activities  

• Capital expenditures were $10.6 million for both the six months ended June 30, 2019 and 2018.  

• We expect capital expenditures for the full year 2019 to be between $20.0 million and $25.0 million, primarily for technology-related upgrade projects.    

Net cash used in financing activities  

• During the six months ended June 30, 2019, we had net combined repayments under our revolving facility and our ABS facility that decreased our outstanding long-term debt balance by $149.0 million.  Comparatively, during the six months ended June 30, 2018, we had net combined repayments under our revolving credit facility and our ABS facility that decreased our outstanding long-term debt balance by $149.1 million, including scheduled amortization payments under our TLA.  

• We had net repayments under our inventory financing facility of $43.2 million during the six months ended June 30, 2019 compared to $15.8 million during the six months ended June 30, 2018.  

• During the six months ended June 30, 2019 we did not repurchase any shares of our common stock.  We repurchased an aggregate of $22.1 million of our common stock

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INSIGHT ENTERPRISES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (continued)

under a previously announced repurchase program during the six months ended June 30, 2018.  

Financing Facilities

Our consolidated debt balance that can be outstanding at the end of any fiscal quarter under our revolving facility and our ABS facility is limited by certain financial covenants, particularly a maximum leverage ratio.  

• The maximum leverage ratio is calculated as aggregate debt outstanding divided by the sum of the Company’s trailing twelve month net earnings (loss) plus (i) interest expense, excluding non-cash imputed interest on our inventory financing facility, (ii) income tax expense (benefit), (iii) depreciation and amortization, (iv) non-cash stock-based compensation, (v) extraordinary or non-recurring non-cash losses or expenses and (vi) certain cash restructuring and acquisition-related charges and synergies, not to exceed a specified cap (“adjusted earnings”).  

• The maximum leverage ratio permitted under the facilities is currently 3.0 times our trailing twelve-month adjusted earnings.  

• A significant drop in the Company’s adjusted earnings would limit the amount of indebtedness that could be outstanding at the end of any fiscal quarter to a level that would be below the Company’s consolidated maximum facility amount.  We anticipate that we will be in compliance with our maximum leverage ratio requirements over the next four quarters.  

• Based on the maximum permitted leverage ratio as of June 30, 2019, the Company’s debt balance that could have been outstanding under our revolving facility and ABS facility was the full amount of the maximum borrowing capacity of $600.0 million, of which $45.0 million was outstanding under the ABS facility and no amount was outstanding under our revolving facility at June 30, 2019.  

• While our ABS facility has a stated maximum amount, the actual availability under the ABS facility is limited by the quantity and quality of the underlying accounts receivable.  As of June 30, 2019, qualified receivables were sufficient to permit access to the full $250.0 million under the ABS facility.   

Our debt balance as of June 30, 2019 was $47.4 million, including our finance lease obligations for certain IT equipment and other financing obligations.  

• Our objective is to pay our debt balances down while retaining adequate cash balances to meet overall business objectives.

• Our revolving facility and our ABS facility contain various covenants customary for transactions of this type, including limitations on the payment of dividends and the requirement that we comply with maximum leverage and minimum fixed charge ratio requirements, comply with a minimum receivable requirement and meet monthly, quarterly and annual reporting requirements.  

• If we fail to comply with these covenants, the lenders would be able to demand payment within a specified time period.  At June 30, 2019, we were in compliance with all such covenants.  

• The terms of the ABS facility identify various circumstances that would result in an “amortization event” under the facility.  At June 30, 2019, no such “amortization event” had occurred.  

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INSIGHT ENTERPRISES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (continued)

We also have an agreement with a financial intermediary to facilitate the purchase of inventory from various suppliers under certain terms and conditions.  

• These amounts are classified separately as accounts payable – inventory financing facility in our consolidated balance sheets.  

• Our inventory financing facility has an aggregate availability for vendor purchases of $400.0 million, of which $260.9 million was outstanding at June 30, 2019.  

• The inventory financing facility matures on June 23, 2021 and may be renewed under certain circumstances described in the agreement for successive 12-month periods.  

In connection with the Merger Agreement with PCM, and the new asset based loan revolving credit facility that will be used to help fund the acquisition, we may use the debt proceeds from the facility to refinance certain existing indebtedness.

Undistributed Foreign Earnings

Cash and cash equivalents held by foreign subsidiaries are generally subject to U.S. income taxation upon repatriation to the United States.  As of June 30, 2019, we had approximately $87.7 million in cash and cash equivalents in certain of our foreign subsidiaries, primarily residing in the Netherlands, Canada and Australia.  Certain of these cash balances will be remitted to the United States by paying down intercompany payables generated in the ordinary course of business or through actual dividend distributions.

Off-Balance Sheet Arrangements

We have entered into off-balance sheet arrangements, which include indemnifications.  The indemnifications are discussed in Note 10 to the Consolidated Financial Statements in Part I, Item 1 of this report and such discussion is incorporated by reference herein.  We believe that none of our off-balance sheet arrangements have, or are reasonably likely to have, a material current or future effect on our business, financial condition or results of operations.

Recently Issued Accounting Standards

The information contained in Notes 1 and 2 to the Consolidated Financial Statements in Part I, Item 1 of this report concerning a description of recently issued accounting standards which affect or may affect our financial statements, including our expected dates of adoption and the estimated effects on our results of operations and financial condition, is incorporated by reference herein.

Contractual Obligations

There have been no material changes in our reported contractual obligations, as described under “Contractual Obligations” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2018.

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INSIGHT ENTERPRISES, INC.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk.

There have been no material changes in our reported market risks, as described in “Quantitative and Qualitative Disclosures About Market Risk” in Part II, Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2018.

Item 4. Controls and Procedures.  

Evaluation of Disclosure Controls and Procedures

Our Chief Executive Officer and Chief Financial Officer, as of the end of the period covered by this report, evaluated the effectiveness of our disclosure controls and procedures (as such term is defined under Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) and determined that as of June 30, 2019 our disclosure controls and procedures were effective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

Change in Internal Control over Financial Reporting

There was no change in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) in the most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

Inherent Limitations of Internal Control Over Financial Reporting

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.  Projections of any evaluation of effectiveness to future periods are subject to risks that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

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INSIGHT ENTERPRISES, INC.

Part II – OTHER INFORMATION

Item 1.   Legal Proceedings.

For a discussion of legal proceedings, see “– Legal Proceedings” in Note 10 to the Consolidated Financial Statements in Part I, Item 1 of this report, which section is incorporated by reference herein.   

Item 1A.  Risk Factors.

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, Item 1A, “Risk Factors”, in our Annual Report on Form 10-K for the year ended December 31, 2018 and those set forth in our Current Report on Form 8-K filed on June 24, 2019 relating to the PCM acquisition, which could materially affect our business, financial condition or future results.  The risks described in our Annual Report on Form 10-K are not the only risks facing the Company.  Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially adversely affect our business, financial condition or operating results.  

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds.

There were no unregistered sales of equity securities during the three months ended June 30, 2019.

We have never paid a cash dividend on our common stock, and we currently do not intend to pay any cash dividends in the foreseeable future.  Our revolving facility, our ABS facility and our inventory financing facility contain restrictions on the payment of cash dividends.

Issuer Purchases of Equity Securities

We did not repurchase shares of our common stock during the quarter ended June 30, 2019.

Item 3.  Defaults Upon Senior Securities.

Not applicable.

Item 4.  Mine Safety Disclosures.

Not applicable.

Item 5.  Other Information.

Not applicable.

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INSIGHT ENTERPRISES, INC.

Item 6.  Exhibits.

		Incorporated by Reference
Exhibit Number	Exhibit Description	Form	File No.	Exhibit Number	Filing Date	Filed/Furnished Herewith
2.1	Agreement and Plan of Merger, dated as of June 23, 2019, by and among Insight Enterprises, Inc., Trojan Acquisition Corp. and PCM*	8-K	000-25092	2.1	June 24, 2019
3.1	Amended and Restated Certificate of Incorporation of Insight Enterprises, Inc.	10-K	000-25092	3.1	February 17, 2006
3.2	Certificate of Amendment of Amended and Restated Certificate of Incorporation of Insight Enterprises, Inc.	8-K	000-25092	3.1	May 21, 2015
3.3	Amended and Restated Bylaws of Insight Enterprises, Inc.	8-K	000-25092	3.2	May 21, 2015
4.1	Specimen Common Stock Certificate (P)	S-1	33-86142	4.1	January 20, 1995
10.1	Commitment Letter, dated as of June 23, 2019, by and between Insight Enterprises, Inc. and JPMorgan Chase Bank, N.A.	8-K	000-25092	10.1	June 24, 2019
31.1	Certification of Chief Executive Officer Pursuant to Securities Exchange Act Rule 13a-14					X
31.2	Certification of Chief Financial Officer Pursuant to Securities Exchange Act Rule 13a-14					X
32.1	Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002					X
101.INS	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document					X
101.SCH	Inline XBRL Taxonomy Extension Schema Document					X
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document					X
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document					X
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document					X
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document					X
104	Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101)					X

(P) Paper exhibit.

* Certain schedules (or similar attachments) have been omitted pursuant to Item 601(b)(2) of Regulation S-K.  The Company agrees to furnish copies of any such schedules (or similar attachments) to the Securities and Exchange Commission upon request.

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INSIGHT ENTERPRISES, INC.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date:	August 6, 2019	INSIGHT ENTERPRISES, INC.
		By:	/s/ Kenneth T. Lamneck
			Kenneth T. Lamneck
			President and Chief Executive Officer
			(Duly Authorized Officer)

By:	/s/ Glynis A. Bryan
	Glynis A. Bryan
	Chief Financial Officer
	(Principal Financial Officer)

By:	/s/ Rachael A. Bertrandt
	Rachael A. Bertrandt
	Global Corporate Controller
	(Principal Accounting Officer)

40

EX-31.1

INSIGHT ENTERPRISES, INC.

Exhibit 31.1

CERTIFICATION

I, Kenneth T. Lamneck, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Insight Enterprises, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 6, 2019
By:	/s/ Kenneth T. Lamneck
	Kenneth T. Lamneck
	Chief Executive Officer

EX-31.2

INSIGHT ENTERPRISES, INC.

Exhibit 31.2

CERTIFICATION

I, Glynis A. Bryan, certify that:  

1. I have reviewed this Quarterly Report on Form 10-Q of Insight Enterprises, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 6, 2019
By:	/s/ Glynis A. Bryan
	Glynis A. Bryan
	Chief Financial Officer

EX-32.1

INSIGHT ENTERPRISES, INC.

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Insight Enterprises, Inc. (the “Company”) for the quarter ended June 30, 2019 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), we, Kenneth T. Lamneck, Chief Executive Officer of the Company, and Glynis A. Bryan, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that to the best of our knowledge:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/ Kenneth T. Lamneck
	Kenneth T. Lamneck
	Chief Executive Officer
	August 6, 2019

By:	/s/ Glynis A. Bryan
	Glynis A. Bryan
	Chief Financial Officer
	August 6, 2019

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Aug. 02, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Trading Symbol	NSIT
Entity Registrant Name	INSIGHT ENTERPRISES INC
Entity Central Index Key	0000932696
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		35,787,600
Entity File Number	0-25092
Entity Tax Identification Number	860766246
Entity Address, Address Line One	6820 South Harl Avenue
Entity Address, City or Town	Tempe
Entity Address, State or Province	Arizona
Entity Address, Postal Zip Code	85283
City Area Code	480
Local Phone Number	333-3000

XML

Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 112,077	$ 142,655
Accounts receivable, net of allowance for doubtful accounts of $10,414 and $10,462, respectively	2,284,922	1,931,736
Inventories	179,577	148,503
Other current assets	110,850	115,683
Total current assets	2,687,426	2,338,577
Property and equipment, net of accumulated depreciation and amortization of $252,691 and $331,700, respectively	73,766	72,954
Goodwill	166,392	166,841
Intangible assets, net of accumulated amortization of $60,233 and $52,942, respectively	104,859	112,179
Deferred income taxes	6,638	7,967
Other assets	246,916	77,429
Total assets	3,285,997	2,775,947
Current liabilities:
Accounts payable—trade	1,426,158	978,104
Accounts payable—inventory financing facility	260,890	304,130
Accrued expenses and other current liabilities	190,474	190,733
Current portion of long-term debt	1,421	1,395
Deferred revenue	70,019	62,300
Total current liabilities	1,948,962	1,536,662
Long-term debt	45,930	195,525
Deferred income taxes	524	683
Other liabilities	210,998	56,088
Total liabilities	2,206,414	1,788,958
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value, 3,000 shares authorized; no shares issued
Common stock, $0.01 par value, 100,000 shares authorized; 35,781 shares at June 30, 2019 and 35,482 shares at December 31, 2018 issued and outstanding	358	355
Additional paid-in capital	325,263	323,622
Retained earnings	793,990	704,665
Accumulated other comprehensive loss – foreign currency translation adjustments	(40,028)	(41,653)
Total stockholders’ equity	1,079,583	986,989
Total liabilities and stockholders' equity	$ 3,285,997	$ 2,775,947

XML

Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Statement Of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 10,414	$ 10,462
Accumulated depreciation and amortization of property and equipment	252,691	331,700
Accumulated amortization of intangible assets	$ 60,233	$ 52,942
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	3,000,000	3,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	35,781,000	35,482,000
Common stock, shares outstanding	35,781,000	35,482,000

XML

Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Net sales:
Total net sales	$ 1,836,021	$ 1,840,870	$ 3,521,487	$ 3,583,364
Costs of goods sold:
Total costs of goods sold	1,560,572	1,576,493	2,997,566	3,078,724
Gross profit	275,449	264,377	523,921	504,640
Operating expenses:
Selling and administrative expenses	199,489	189,464	390,552	377,644
Severance and restructuring expenses	680	382	1,050	2,026
Acquisition related expenses	3,163	94	3,163	94
Earnings from operations	72,117	74,437	129,156	124,876
Non-operating (income) expense:
Interest income	(266)	(170)	(537)	(323)
Interest expense	4,601	5,102	9,424	11,117
Net foreign currency exchange (gain) loss	(330)	(275)	381	(520)
Other expense, net	676	324	1,015	626
Earnings before income taxes	67,436	69,456	118,873	113,976
Income tax expense	17,438	17,977	29,548	29,494
Net earnings	$ 49,998	$ 51,479	$ 89,325	$ 84,482
Net earnings per share:
Basic	$ 1.40	$ 1.45	$ 2.50	$ 2.37
Diluted	$ 1.38	$ 1.44	$ 2.47	$ 2.34
Shares used in per share calculations:
Basic	35,772	35,483	35,691	35,698
Diluted	36,111	35,815	36,107	36,039
Products [Member]
Net sales:
Total net sales	$ 1,594,335	$ 1,618,823	$ 3,061,007	$ 3,176,615
Costs of goods sold:
Total costs of goods sold	1,458,916	1,488,387	2,796,224	2,903,373
Services [Member]
Net sales:
Total net sales	241,686	222,047	460,480	406,749
Costs of goods sold:
Total costs of goods sold	$ 101,656	$ 88,106	$ 201,342	$ 175,351

XML

Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement Of Income And Comprehensive Income [Abstract]
Net earnings	$ 49,998	$ 51,479	$ 89,325	$ 84,482
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(290)	(15,022)	1,625	(10,431)
Total comprehensive income	$ 49,708	$ 36,457	$ 90,950	$ 74,051

XML

Consolidated Statements of Stockholders' Equity (unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Treasury Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Loss [Member]	Retained Earnings [Member]
Beginning Balance at Dec. 31, 2017	$ 843,469	$ 358		$ 317,155	$ (24,264)	$ 550,220
Beginning Balance, Shares at Dec. 31, 2017		35,829
Cumulative effect of accounting change	7,176					7,176
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes, Value	(2,925)	$ 3		(2,928)
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes, Shares		271
Stock-based compensation expense	7,047			7,047
Repurchase of treasury stock, Amount	(22,069)		$ (22,069)
Repurchase of treasury stock, Shares			(641)
Retirement of treasury stock, Amount		$ (6)	$ 22,069	(5,655)		(16,408)
Retirement of treasury stock, Shares		(641)	641
Foreign currency translation adjustments, net of tax	(10,431)				(10,431)
Net earnings	84,482					84,482
Ending Balance at Jun. 30, 2018	906,749	$ 355		315,619	(34,695)	625,470
Ending Balance, Shares at Jun. 30, 2018		35,459
Beginning Balance at Mar. 31, 2018	880,859	$ 358		315,493	(19,673)	584,681
Beginning Balance, Shares at Mar. 31, 2018		35,848
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes, Value	(40)	$ 1		(41)
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes, Shares		31
Stock-based compensation expense	3,863			3,863
Repurchase of treasury stock, Amount	(14,390)		$ (14,390)
Repurchase of treasury stock, Shares			(420)
Retirement of treasury stock, Amount		$ (4)	$ 14,390	(3,696)		(10,690)
Retirement of treasury stock, Shares		(420)	420
Foreign currency translation adjustments, net of tax	(15,022)				(15,022)
Net earnings	51,479					51,479
Ending Balance at Jun. 30, 2018	906,749	$ 355		315,619	(34,695)	625,470
Ending Balance, Shares at Jun. 30, 2018		35,459
Beginning Balance at Dec. 31, 2018	986,989	$ 355		323,622	(41,653)	704,665
Beginning Balance, Shares at Dec. 31, 2018		35,482
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes, Value	(6,153)	$ 3		(6,156)
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes, Shares		299
Stock-based compensation expense	7,797			7,797
Foreign currency translation adjustments, net of tax	1,625				1,625
Net earnings	89,325					89,325
Ending Balance at Jun. 30, 2019	1,079,583	$ 358		325,263	(40,028)	793,990
Ending Balance, Shares at Jun. 30, 2019		35,781
Beginning Balance at Mar. 31, 2019	1,026,218	$ 358		321,606	(39,738)	743,992
Beginning Balance, Shares at Mar. 31, 2019		35,761
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes, Value	(25)			(25)
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes, Shares		20
Stock-based compensation expense	3,682			3,682
Foreign currency translation adjustments, net of tax	(290)				(290)
Net earnings	49,998					49,998
Ending Balance at Jun. 30, 2019	$ 1,079,583	$ 358		$ 325,263	$ (40,028)	$ 793,990
Ending Balance, Shares at Jun. 30, 2019		35,781

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Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net earnings	$ 89,325	$ 84,482
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization of property and equipment	9,982	10,712
Amortization of intangible assets	7,644	7,214
Provision for losses on accounts receivable	2,346	1,336
Write-downs of inventories	2,350	1,396
Write-off of property and equipment		309
Non-cash stock-based compensation	7,797	7,047
Deferred income taxes	1,180	2,020
Changes in assets and liabilities:
Increase in accounts receivable	(354,717)	(287,191)
(Increase) decrease in inventories	(33,359)	18,281
(Increase) decrease in other assets	(93,714)	16,717
Increase in accounts payable	448,682	450,471
Increase in deferred revenue	8,153	13,733
Increase in accrued expenses and other liabilities	86,869	24,428
Net cash provided by operating activities	182,538	350,955
Cash flows from investing activities:
Purchases of property and equipment	(10,584)	(10,644)
Acquisitions, net of cash and cash equivalents acquired	(3,362)
Net cash used in investing activities	(13,946)	(10,644)
Cash flows from financing activities:
Borrowings on senior revolving credit facility	89,936	280,184
Repayments on senior revolving credit facility	(89,936)	(397,684)
Borrowings on accounts receivable securitization financing facility	1,919,500	1,696,500
Repayments on accounts receivable securitization financing facility	(2,068,500)	(1,721,500)
Repayments under Term Loan A		(6,563)
Repayments under other financing agreements		(1,835)
Payments on finance lease obligations	(603)	(580)
Net repayments under inventory financing facility	(43,240)	(15,766)
Payment of debt issuance costs		(270)
Payment of payroll taxes on stock-based compensation through shares withheld	(6,154)	(2,925)
Repurchases of common stock		(22,069)
Net cash used in financing activities	(198,997)	(192,508)
Foreign currency exchange effect on cash, cash equivalents and restricted cash balances	(183)	(5,541)
(Decrease) increase in cash, cash equivalents and restricted cash	(30,588)	142,262
Cash, cash equivalents and restricted cash at beginning of period	144,293	107,445
Cash, cash equivalents and restricted cash at end of period	$ 113,705	$ 249,707

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Basis of Presentation and Recently Issued Accounting Standards

6 Months Ended

Jun. 30, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Basis of Presentation and Recently Issued Accounting Standards

1. Basis of Presentation and Recently Issued Accounting Standards

We empower organizations of all sizes with Insight Intelligent Technology Solutions^TM to maximize the business value of IT in North America; Europe, the Middle East and Africa (“EMEA”); and Asia-Pacific (“APAC”).  As a Fortune 500-ranked global provider of digital innovation, cloud/data center transformation, connected workforce, and supply chain optimization solutions and services, we help clients innovate and optimize their operations to run smarter.  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.  Our offerings in the remainder of our EMEA and APAC segments consist of largely software and certain software-related services.  

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly our financial position as of June 30, 2019 and our results of operations for the three and six months ended June 30, 2019 and 2018 and cash flows for the six months ended June 30, 2019 and 2018.  The consolidated balance sheet as of December 31, 2018 was derived from the audited consolidated balance sheet at such date.  The accompanying unaudited consolidated financial statements and notes have been prepared in accordance with the rules and regulations promulgated by the Securities and Exchange Commission and consequently do not include all of the disclosures normally required by United States generally accepted accounting principles (“GAAP”).  

The results of operations for interim periods are not necessarily indicative of results for the full year, due in part to the seasonal nature of our business.  These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including the related notes thereto, in our Annual Report on Form 10-K for the year ended December 31, 2018.  Our results of operations include the results of Cardinal Solutions Group, Inc. (“Cardinal”) from its acquisition date of August 1, 2018.  

The consolidated financial statements include the accounts of Insight Enterprises, Inc. and its wholly owned subsidiaries.  All significant intercompany balances and transactions have been eliminated in consolidation.  

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements.  Additionally, these estimates and assumptions affect the reported amounts of net sales and expenses during the reporting period.  Actual results could differ from those estimates.  On an ongoing basis, we evaluate our estimates, including those related to sales recognition, anticipated achievement levels under partner funding programs, assumptions related to stock-based compensation valuation, allowances for doubtful accounts, valuation of inventories, litigation-related obligations, valuation allowances for deferred tax assets and impairment of long-lived assets, including purchased intangibles and goodwill, if indicators of potential impairment exist.

Recently Issued Accounting Standards

In June 2016, the Financial Accounting Standards Board’s (“FASB”) issued Accounting Standard Update (“ASU”) No. 2016-13, “Financial Instruments – Credit Losses.”  The new standard is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held at each reporting date.  The new standard is effective for interim and annual periods beginning after December 15, 2019, and early adoption is permitted.  We will adopt the new standard as of January 1, 2020 and do not expect the adoption to have a material effect on our consolidated financial statements.

In April 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.”  The new standard provides changes for how a company considers expected recoveries and contractual extensions or renewal options when estimating expected credit losses.  The new standard is effective with the adoption of  ASU No. 2016-13.  We will adopt the new standard as of January 1, 2020 and do not expect the adoption to have a material effect on our consolidated financial statements.    

Effective January 1, 2019, we adopted the FASB ASU No. 2016-02—Leases (Topic 842) using the effective date transition method. This approach provides a method for recording existing leases at adoption without restating comparative periods. We elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification.  In addition, we made an accounting policy election not to separate non-lease components from lease components for all existing classes of underlying assets with the exception of land and buildings.  We also made an accounting policy election to not record right of use (“ROU”) assets and lease liabilities for leases with an initial term of twelve months or less on our consolidated balance sheet.

Adoption of the new standard resulted in the recording of additional net operating lease ROU assets and lease liabilities of $65,922,000 and $70,512,000, respectively, as of January 1, 2019. The difference between the additional lease assets and lease liabilities reflected existing accrued and prepaid rent balances that were reclassified to the operating lease ROU asset at January 1, 2019. The standard did not materially impact our consolidated net earnings and had no impact on cash flows.  

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, 2018 that affect or may affect our current financial statements.

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Leases

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Leases

2. Leases

We lease office space, distribution centers, land, vehicles and equipment. Lease agreements with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term.   

Certain lease agreements include one or more options to renew, with renewal terms that can extend the lease term from one to five years or more. The exercise of lease renewal options is at our sole discretion. Some agreements also include options to purchase the leased property. The estimated life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.  

Certain of our lease agreements include rental payments adjusted periodically for inflation.  Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Significant Accounting Policy

We determine if a contract or arrangement is, or contains, a lease at inception.  Balances related to operating leases are included in other assets, other current liabilities, and other liabilities in our consolidated balance sheet.  Balances related to financing leases are included in property and equipment, current portion of long-term debt, and long-term debt in our consolidated balance sheet.  ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease.  

Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term.  As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.  We use the implicit rate when readily determinable.  The operating lease ROU asset includes any prepaid lease payments and additional direct costs and excludes lease incentives.  Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option.  

The following table provides information about the financial statement classification of our lease balances reported within the consolidated balances sheets as of June 30, 2019 and January 1, 2019 (in thousands):

Leases	Classification	June 30, 2019		January 1, 2019
Assets
Operating lease assets	Other assets	$	60,286	$	65,922
Finance lease assets	Property and equipment(a)		1,350		1,693
Total lease assets		$	61,636	$	67,615
Liabilities
Current
Operating lease liabilities	Accrued expenses and other current liabilities	$	15,096	$	15,788
Finance lease liabilities	Current portion of long-term debt		1,421		1,399
Non-current
Operating lease liabilities	Other liabilities		50,252		54,724
Finance lease liabilities	Long-term debt		930		1,521
Total lease liabilities		$	67,699	$	73,432

(a) Recorded net of accumulated amortization of $344,000 as of June 30, 2019 and there is no accumulated amortization as of January 1, 2019.

The following table provides information about the financial statement classification of our lease expenses reported within the consolidated statement of operations for the three and six months ended June 30, 2019 (in thousands):

Lease cost	Classification	Three months ended June 30, 2019		Six months ended June 30, 2019
Operating lease cost (a) (b)	Selling and administrative expenses	$	4,850	$	9,768
Finance lease cost
Amortization of leased      assets	Selling and administrative expenses		173		344
Interest on lease liabilities	Interest expense, net		23		50
Total lease cost		$	5,046	$	10,162

(a) Includes immaterial amounts recorded to cost of goods sold.

(b) Excludes short-term and variable lease costs, which are immaterial.

Future minimum lease payments under non-cancelable leases as of June 30, 2019 are as follows (in thousands):

	Operating leases			Finance leases			Total
Remainder of 2019	$	9,416		$	869		$	10,285
2020		14,985			1,150			16,135
2021		12,470			432			12,902
2022		9,663			—			9,663
2023		6,557			—			6,557
After 2023		21,339			—			21,339
Total lease payments		74,430			2,451			76,881
Less:  Interest		(9,082	)		(100	)		(9,182	)
Present value of lease liabilities	$	65,348		$	2,351		$	67,699

Operating lease payments include $13.4 million related to options to extend lease terms that are reasonably certain of being exercised.

The following table provides information about the remaining lease terms and discount rates applied as of June 30, 2019:

	June 30, 2019
Weighted average remaining lease term (years)
Operating leases		6.56
Finance leases		1.94
Weighted average discount rate (%)
Operating leases		3.86
Finance leases		4.84

The following table provides other information related to leases for the six months ended June 30, 2019 (in thousands):

	Six months ended June 30, 2019
Cash paid for amounts included in the measurement of lease    liabilities:
Operating cash flows from operating leases	$	9,269
Leased assets obtained in exchange for new operating lease liabilities		2,872

Operating Leases pre-Topic 842 adoption:

We have non-cancelable operating leases with third parties, primarily for administrative and distribution center space and computer equipment.  Our facilities leases generally provide for periodic rent increases and many contain escalation clauses and renewal options.  We recognize rent expense on a straight-line basis over the lease term.  Rental expense for these third-party operating leases was $20,114,000, $19,126,000 and $14,444,000 in 2018, 2017 and 2016, respectively, and is included in selling and administrative expenses.

Future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) as of December 31, 2018 are as follows (in thousands):

Years Ending December 31,
2019	$	21,499
2020		15,580
2021		12,121
2022		9,150
2023		6,296
Thereafter		7,238
Total minimum lease payments	$	71,884

Amounts in the table above exclude approximately $1.6 million in 2019 in non-cancellable rental income.

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Sales Recognition

6 Months Ended

Jun. 30, 2019

Revenue From Contract With Customer [Abstract]

Sales Recognition

3. Sales Recognition

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, 2019 and 2018 (in thousands):

	Three Months Ended June 30, 2019
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	935,792	$	142,951	$	9,979	$	1,088,722
Software		289,874		190,086		25,653		505,613
Services		179,841		46,137		15,708		241,686
	$	1,405,507	$	379,174	$	51,340	$	1,836,021
Major Client Groups
Large Enterprise / Corporate	$	1,071,611	$	281,013	$	16,785	$	1,369,409
Public Sector		156,381		78,343		15,096		249,820
Small and Medium-Sized Businesses		177,515		19,818		19,459		216,792
	$	1,405,507	$	379,174	$	51,340	$	1,836,021
Revenue Recognition based on acting as    Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	1,338,948	$	347,336	$	43,284	$	1,729,568
Net revenue recognition (Agent)		66,559		31,838		8,056		106,453
	$	1,405,507	$	379,174	$	51,340	$	1,836,021

	Three Months Ended June 30, 2018
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	898,143	$	171,336	$	9,318	$	1,078,797
Software		307,570		193,116		39,340		540,026
Services		163,053		45,084		13,910		222,047
	$	1,368,766	$	409,536	$	62,568	$	1,840,870
Major Client Groups
Large Enterprise / Corporate	$	1,006,406	$	298,796	$	14,089	$	1,319,291
Public Sector		135,709		94,487		29,503		259,699
Small and Medium-Sized Businesses		226,651		16,253		18,976		261,880
	$	1,368,766	$	409,536	$	62,568	$	1,840,870
Revenue Recognition based on acting as    Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	1,304,301	$	378,098	$	55,079	$	1,737,478
Net revenue recognition (Agent)		64,465		31,438		7,489		103,392
	$	1,368,766	$	409,536	$	62,568	$	1,840,870

	Six Months Ended June 30, 2019
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	1,684,129	$	314,476	$	16,497	$	2,015,102
Software		611,953		373,234		60,718		1,045,905
Services		351,866		81,639		26,975		460,480
	$	2,647,948	$	769,349	$	104,190	$	3,521,487
Major Client Groups
Large Enterprise / Corporate	$	2,048,452	$	541,620	$	30,092	$	2,620,164
Public Sector		253,498		187,409		41,250		482,157
Small and Medium-Sized Businesses		345,998		40,320		32,848		419,166
	$	2,647,948	$	769,349	$	104,190	$	3,521,487
Revenue Recognition based on acting as    Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	2,521,026	$	714,501	$	91,150	$	3,326,677
Net revenue recognition (Agent)		126,922		54,848		13,040		194,810
	$	2,647,948	$	769,349	$	104,190	$	3,521,487

	Six Months Ended June 30, 2018
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	1,771,485	$	358,346	$	16,478	$	2,146,309
Software		568,629		383,318		78,359		1,030,306
Services		307,032		75,006		24,711		406,749
	$	2,647,146	$	816,670	$	119,548	$	3,583,364
Major Client Groups
Large Enterprise / Corporate	$	1,959,215	$	571,435	$	27,055	$	2,557,705
Public Sector		246,214		211,101		60,879		518,194
Small and Medium-Sized Businesses		441,717		34,134		31,614		507,465
	$	2,647,146	$	816,670	$	119,548	$	3,583,364
Revenue Recognition based on acting as    Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	2,534,713	$	766,435	$	106,904	$	3,408,052
Net revenue recognition (Agent)		112,433		50,235		12,644		175,312
	$	2,647,146	$	816,670	$	119,548	$	3,583,364

The following table provides information about receivables, contract assets and contract liabilities as of June 30, 2019 and December 31, 2018 (in thousands):

	June 30,		December 31,
	2019		2018
Current receivables, which are included in “Accounts    receivable, net”	$	2,284,922	$	1,931,736
Non-current receivables, which are included in “Other assets”		142,890		38,157
Contract assets, which are included in “Other current assets”		958		892
Contract liabilities, which are included in “Deferred revenue”    and “Other liabilities”		89,737		82,117

Significant changes in the contract assets and the contract liabilities balances during the six months ended June 30, 2019 are as follows (in thousands):

	Increase (Decrease)
	Contract			Contract
	Assets			Liabilities
Balances at December 31, 2018	$	892		$	82,117
Reclassification of the beginning contract liabilities    to revenue, as the result of performance obligations satisfied		—			(36,525	)
Cash received in advance and not recognized as revenue		—			44,145
Reclassification of the beginning contract assets to receivables, as    the result of rights to consideration becoming unconditional		(251	)		—
Contract assets recognized, net of reclassification to receivables		317			—
Balances at June 30, 2019	$	958		$	89,737

The following table includes estimated net sales related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2019 that are expected to be recognized in the future (in thousands):

	Products		Services		Total
Remainder of 2019	$	6	$	57,666	$	57,672
2020		6		40,410		40,416
2021		—		16,058		16,058
2022		—		6,414		6,414
2023 and thereafter		—		3,403		3,403
Total remaining performance obligations	$	12	$	123,951	$	123,963

With the exception of remaining performance obligations associated with our OneCall Support Services contracts which are included in the table above regardless of original duration, remaining performance obligations that have original expected durations of one year or less are not included in the table above.  Amounts not included in the table above have an average original expected duration of nine months.  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, 2019 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 14 months.

The majority of our backlog historically has been and continues to be open cancelable purchase orders.  We do not believe that backlog as of any particular date is predictive of future results, therefore we do not include performance obligations under open cancelable purchase orders, which do not qualify for revenue recognition, in the table above.

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Net Earnings Per Share ("EPS")

6 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

Net Earnings Per Share ("EPS")

4. Net Earnings Per Share (“EPS”)

Basic EPS is computed by dividing net earnings available to common stockholders by the weighted average number of common shares outstanding during each period.  Diluted EPS is computed on the basis of the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method.  Dilutive potential common shares include outstanding restricted stock units (“RSUs”).  A reconciliation of the denominators of the basic and diluted EPS calculations follows (in thousands, except per share data):

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Numerator:
Net earnings	$	49,998	$	51,479	$	89,325	$	84,482
Denominator:
Weighted average shares used to    compute basic EPS		35,772		35,483		35,691		35,698
Dilutive potential common shares due to    dilutive RSUs, net of tax effect		339		332		416		341
Weighted average shares used to compute    diluted EPS		36,111		35,815		36,107		36,039
Net earnings per share:
Basic	$	1.40	$	1.45	$	2.50	$	2.37
Diluted	$	1.38	$	1.44	$	2.47	$	2.34

For the three and six months ended June 30, 2019, 1,000 and 83,000, respectively, of our RSUs were not included in the diluted EPS calculations because their inclusion would have been anti-dilutive.  These share-based awards could be dilutive in the future.  There were 13,000 and 17,000 anti-dilutive RSUs for the three and six months ended June 30, 2018, respectively.  

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Debt, Inventory Financing Facility, Finance Leases and Other Financing Obligations

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Debt, Inventory Financing Facility, Finance Leases and Other Financing Obligations

5. Debt, Inventory Financing Facility, Finance Leases and Other Financing Obligations

Debt

Our long-term debt consists of the following (in thousands):

	June 30, 2019			December 31, 2018
Senior revolving credit facility	$	—		$	—
Accounts receivable securitization financing facility		45,000			194,000
Finance leases and other financing obligations		2,351			2,920
Total		47,351			196,920
Less: current portion of long-term debt		(1,421	)		(1,395	)
Long-term debt	$	45,930		$	195,525

Our senior revolving credit facility (“revolving facility”) has an aggregate U.S. dollar equivalent maximum borrowing amount of $350,000,000, including a maximum borrowing capacity that may be used for borrowing in certain foreign currencies of $50,000,000, and matures on June 23, 2021.

Our accounts receivable securitization financing facility (the “ABS facility”) has a maximum aggregate borrowing availability of $250,000,000, and matures on June 23, 2021.  While the ABS facility has a stated maximum amount, the actual availability under the ABS facility is limited by

the quantity and quality of the underlying accounts receivable.  As of June 30, 2019, qualified receivables were sufficient to permit access to the full $250,000,000 facility amount, of which $45,000,000 was outstanding.

Our consolidated debt balance that can be outstanding at the end of any fiscal quarter under our revolving facility and our ABS facility is limited by certain financial covenants, particularly a maximum leverage ratio.  The maximum leverage ratio is calculated as aggregate debt outstanding divided by the sum of our trailing twelve month net earnings (loss) plus (i) interest expense, excluding non-cash imputed interest on our inventory financing facility, (ii) income tax expense (benefit), (iii) depreciation and amortization, (iv) non-cash stock-based compensation, (v) extraordinary or non-recurring non-cash losses or expenses and (vi) certain cash restructuring and acquisition-related charges and synergies, not to exceed a specified cap (“adjusted earnings”).  The maximum leverage ratio permitted under the facilities is currently 3.0 times our trailing twelve-month adjusted earnings.  A significant drop in our adjusted earnings would limit the amount of indebtedness that could be outstanding at the end of any fiscal quarter to a level that would be below our consolidated maximum facility amount.  Based on our maximum leverage ratio as of June 30, 2019, our aggregate debt balance that could have been outstanding under our revolving facility and our ABS facility was the full amount of the maximum borrowing capacity of $600,000,000.

Inventory Financing Facility

As of June 30, 2019, our inventory financing facility had a maximum borrowing capacity of $400,000,000, of which $260,890,000 was outstanding at June 30, 2019.  The inventory financing facility matures on June 23, 2021.  If balances are not paid within stated vendor terms, they will accrue interest at prime plus 1.25%.  Amounts outstanding under this facility are classified separately as accounts payable – inventory financing facility in the accompanying consolidated balance sheets.  Further, see Note 13 for additional information.

Finance Lease and Other Financing Obligations

Our finance lease obligations totaled $2,351,000 and $2,920,000 as of June 30, 2019 and December 31, 2018, respectively.     

The current and long-term portions of our finance leases are included in the current and long-term portions of long-term debt in the table above and in our consolidated balance sheets as of June 30, 2019 and December 31, 2018.  Further, see Note 2 for additional information.    

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Restricted Cash

6 Months Ended

Jun. 30, 2019

Cash And Cash Equivalents [Abstract]

Restricted Cash

6. Restricted Cash

Amounts included in restricted cash represent those required to be set aside by a contractual agreement with a lessor related to certain leased office space in foreign jurisdictions.  The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the balance sheets that sum to the total of the same such amounts shown in the statements of cash flows for the six months ended June 30, 2019 and 2018 (in thousands):

	June 30, 2019		December 31, 2018
Cash and cash equivalents	$	112,077	$	142,655
Restricted cash included in other current assets		—		8
Restricted cash included in other non-current assets		1,628		1,630
Total cash, cash equivalents and restricted cash shown in    the statement of cash flows	$	113,705	$	144,293

	June 30, 2018		December 31, 2017
Cash and cash equivalents	$	248,122	$	105,831
Restricted cash included in other current assets		9		46
Restricted cash included in other non-current assets		1,576		1,568
Total cash, cash equivalents and restricted cash shown in    the statement of cash flows	$	249,707	$	107,445

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

7.Stock-Based Compensation

We recorded the following pre-tax amounts in selling and administrative expenses for stock-based compensation, by operating segment, in the accompanying consolidated financial statements (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
North America	$	2,740	$	2,945	$	5,863	$	5,335
EMEA		814		790		1,684		1,480
APAC		128		128		250		232
Total Consolidated	$	3,682	$	3,863	$	7,797	$	7,047

As of June 30, 2019, total compensation cost related to nonvested RSUs not yet recognized is $31,485,000, which is expected to be recognized over the next 1.65 years on a weighted-average basis.  

The following table summarizes our RSU activity during the six months ended June 30, 2019:

	Number			Weighted Average Grant Date Fair Value		Fair Value
Nonvested at January 1, 2019		1,020,930		$	36.10
Granted(a)		350,987			57.33
Vested, including shares withheld to cover taxes		(407,961	)		34.08	$	13,903,311	(b)
Forfeited		(47,051	)		41.33
Nonvested at June 30, 2019(a)		916,905			44.86	$	53,363,871	(c)

^(a) Includes 84,602 RSUs subject to remaining performance conditions.  The number of RSUs subject to performance conditions are based on the Company achieving 97% of its 2019 targeted financial results.  The number of RSUs ultimately awarded under the performance-based RSUs varies based on actual achieved financial results for 2019.  

^(b) The aggregate fair value of vested RSUs represents the total pre-tax fair value, based on the closing stock price on the day of vesting, which would have been received by holders of RSUs had all such holders sold their underlying shares on that date.  

^(c) The aggregate fair value of the nonvested RSUs and the RSUs expected to vest represents the total pre-tax fair value, based on our closing stock price of $58.20 as of June 28, 2019 (the last trading day of the quarter), which would have been received by holders of RSUs had all such holders sold their underlying shares on that date.

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Income Taxes

6 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

8. Income Taxes

Our effective tax rate for the three and six months ended June 30, 2019 was 25.9% and 24.9%, respectively.  For the three months ended June 30, 2019, our effective tax rate was higher than the United States federal statutory rate of 21.0% due primarily to state income taxes, net of federal benefit, higher taxes on earnings in foreign jurisdictions, and the effect of non-deductible acquisition-related expenses partially offset by the recognition of tax benefits related to research and development activities.  For the six months ended June 30, 2019, our effective tax rate was higher than the United States federal statutory rate of 21.0% due primarily to state income taxes, net of federal benefit, and higher taxes on earnings in foreign jurisdictions partially offset by tax benefits on the settlement of employee share-based awards and the recognition of tax benefits related to research and development activities.  

Our effective tax rate for both the three and six months ended June 30, 2018 was 25.9%.  For the three and six months ended June 30, 2018, our effective tax rate was higher than the United States federal statutory rate of 21.0% due primarily to state income taxes net of federal benefit.

As of June 30, 2019, and December 31, 2018, we had approximately $8,337,000 and $6,849,000, respectively, of unrecognized tax benefits.  Of these amounts, approximately $440,000 and $313,000, respectively, related to accrued interest.  In the future, if recognized, the liability associated with uncertain tax positions would affect our effective tax rate.  We do not believe there will be any changes over the next 12 months that would have a material effect on our effective tax rate.  

Several of our subsidiaries are currently under audit for tax years 2012 through 2017.  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.  

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Share Repurchase Program

6 Months Ended

Jun. 30, 2019

Equity [Abstract]

Share Repurchase Program

9. Share Repurchase Program

On February 13, 2018, our Board of Directors authorized the repurchase of up to $50,000,000 of our common stock.  Our share repurchases will be made on the open market, subject to Rule 10b-18 or in privately negotiated transactions, through block trades, through 10b5-1 plans or otherwise, at management’s discretion.  The amount of shares purchased and the timing of the purchases will be based on market conditions, working capital requirements, general business conditions and other factors.  We intend to retire the repurchased shares.  

During the six months ended June 30, 2019, we did not repurchase any shares of our common stock.  During the comparative six months ended June 30, 2018, we repurchased 641,211 shares of our common stock on the open market at a total cost of approximately $22,069,000 (an average price of $34.42 per share).  All shares repurchased were retired.      

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2019

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

10. Commitments and Contingencies

Contractual

In the ordinary course of business, we issue performance bonds to secure our performance under certain contracts or state tax requirements.  As of June 30, 2019, we had approximately $3,939,000 of performance bonds outstanding.  These bonds are issued on our behalf by a surety company on an unsecured basis; however, if the surety company is ever required to pay out under the bonds, we have contractually agreed to reimburse the surety company.

Management believes that payments, if any, related to these performance bonds are not probable at June 30, 2019.  Accordingly, we have not accrued any liabilities related to such performance bonds in our consolidated financial statements.

Employment Contracts and Severance Plans

We have employment contracts with, and severance plans covering, certain officers and management teammates under which severance payments would become payable in the event of specified terminations without cause or terminations under certain circumstances after a change in control.  In addition, vesting of outstanding nonvested RSUs would accelerate following a change in control.  If severance payments under the current employment agreements or plan payments were to become payable, the severance payments would generally range from three to twenty-four months of salary.

Indemnifications

From time to time, in the ordinary course of business, we enter into contractual arrangements under which we agree to indemnify either our clients or third-party service providers from certain losses incurred relating to services performed on our behalf or for losses arising from defined events, which may include litigation or claims relating to past performance.  These arrangements include, but are not limited to, the indemnification of our clients for certain claims arising out of our performance under our sales contracts, the indemnification of our landlords for certain claims arising from our use of leased facilities and the indemnification of the lenders that provide our credit facilities for certain claims arising from their extension of credit to us.  Such indemnification obligations may not be subject to maximum loss clauses.

Management believes that payments, if any, related to these indemnifications are not probable at June 30, 2019.  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 arising in the ordinary course of business, including preference payment claims asserted in client bankruptcy proceedings, indemnification claims, claims of alleged infringement of patents, trademarks, copyrights and other intellectual property rights, claims of alleged non-compliance with contract provisions and claims

related to alleged violations of laws and regulations.  We regularly evaluate the status of the legal proceedings in which we are involved to assess whether a loss is probable or there is a reasonable possibility that a loss, or an additional loss, may have been incurred and determine if accruals are appropriate.  If accruals are not appropriate, we further evaluate each legal proceeding to assess whether an estimate of possible loss or range of possible loss can be made for disclosure.  Although litigation is inherently unpredictable, we believe that we have adequate provisions for any probable and estimable losses.  It is possible, nevertheless, that our consolidated financial position, results of operations or liquidity could be materially and adversely affected in any particular period by the resolution of a legal proceeding.  Legal expenses related to defense, negotiations, settlements, rulings and advice of outside legal counsel are expensed as incurred.

The Company is not involved in any pending or threatened legal proceedings that it believes would reasonably be expected to have a material adverse effect on its business, financial condition or results of operations.

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Segment Information

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Segment Information

11.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.  Our offerings in the remainder of our EMEA and APAC segments are largely software and certain software-related services.

The following table summarizes net sales by offering for North America, EMEA and APAC for the three and six months ended June 30, 2019 and 2018 (in thousands):

	North America				EMEA				APAC
	Three Months Ended June 30,				Three Months Ended June 30,				Three Months Ended June 30,
Sales Mix	2019		2018		2019		2018		2019		2018
Hardware	$	935,792	$	898,143	$	142,951	$	171,336	$	9,979	$	9,318
Software		289,874		307,570		190,086		193,116		25,653		39,340
Services		179,841		163,053		46,137		45,084		15,708		13,910
	$	1,405,507	$	1,368,766	$	379,174	$	409,536	$	51,340	$	62,568
	North America				EMEA				APAC
	Six Months Ended June 30,				Six Months Ended June 30,				Six Months Ended June 30,
Sales Mix	2019		2018		2019		2018		2019		2018
Hardware	$	1,684,129	$	1,771,485	$	314,476	$	358,346	$	16,497	$	16,478
Software		611,953		568,629		373,234		383,318		60,718		78,359
Services		351,866		307,032		81,639		75,006		26,975		24,711
	$	2,647,948	$	2,647,146	$	769,349	$	816,670	$	104,190	$	119,548

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 or six months ended June 30, 2019 or 2018.

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 considered 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, 2019
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	1,225,666	$	333,037	$	35,632	$	1,594,335
Services		179,841		46,137		15,708		241,686
Total net sales		1,405,507		379,174		51,340		1,836,021
Costs of goods sold:
Products		1,120,834		304,885		33,197		1,458,916
Services		85,614		9,839		6,203		101,656
Total costs of goods sold		1,206,448		314,724		39,400		1,560,572
Gross profit		199,059		64,450		11,940		275,449
Operating expenses:
Selling and administrative expenses		144,498		47,652		7,339		199,489
Severance and restructuring expenses		480		200		—		680
Acquisition-related expenses		3,163		—		—		3,163
Earnings from operations	$	50,918	$	16,598	$	4,601	$	72,117

	Three Months Ended June 30, 2018
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	1,205,713	$	364,452	$	48,658	$	1,618,823
Services		163,053		45,084		13,910		222,047
Total net sales		1,368,766		409,536		62,568		1,840,870
Costs of goods sold:
Products		1,105,275		338,142		44,970		1,488,387
Services		72,974		9,430		5,702		88,106
Total costs of goods sold		1,178,249		347,572		50,672		1,576,493
Gross profit		190,517		61,964		11,896		264,377
Operating expenses:
Selling and administrative expenses		135,206		46,894		7,364		189,464
Severance and restructuring expenses		338		41		3		382
Acquisition-related expenses		94		—		—		94
Earnings from operations	$	54,879	$	15,029	$	4,529	$	74,437

	Six Months Ended June 30, 2019
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	2,296,082	$	687,710	$	77,215	$	3,061,007
Services		351,866		81,639		26,975		460,480
Total net sales		2,647,948		769,349		104,190		3,521,487
Costs of goods sold:
Products		2,095,535		628,923		71,766		2,796,224
Services		170,747		18,993		11,602		201,342
Total costs of goods sold		2,266,282		647,916		83,368		2,997,566
Gross profit		381,666		121,433		20,822		523,921
Operating expenses:
Selling and administrative expenses		281,448		94,797		14,307		390,552
Severance and restructuring expenses		811		115		124		1,050
Acquisition-related expenses		3,163		—		—		3,163
Earnings from operations	$	96,244	$	26,521	$	6,391	$	129,156

	Six Months Ended June 30, 2018
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	2,340,114	$	741,664	$	94,837	$	3,176,615
Services		307,032		75,006		24,711		406,749
Total net sales		2,647,146		816,670		119,548		3,583,364
Costs of goods sold:
Products		2,134,245		681,161		87,967		2,903,373
Services		147,013		17,495		10,843		175,351
Total costs of goods sold		2,281,258		698,656		98,810		3,078,724
Gross profit		365,888		118,014		20,738		504,640
Operating expenses:
Selling and administrative expenses		267,846		95,177		14,621		377,644
Severance and restructuring expenses		781		1,115		130		2,026
Acquisition-related expenses		94		—		—		94
Earnings from operations	$	97,167	$	21,722	$	5,987	$	124,876

The following is a summary of our total assets by reportable operating segment (in thousands):

	June 30, 2019			December 31, 2018
North America	$	3,009,462		$	2,660,886
EMEA		747,769			611,338
APAC		165,963			98,959
Corporate assets and intercompany eliminations, net		(637,197	)		(595,236	)
Total assets	$	3,285,997		$	2,775,947

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 June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Depreciation and amortization of property and    equipment:
North America	$	3,786	$	4,158	$	7,743	$	8,456
EMEA		1,012		998		1,967		2,001
APAC		140		123		272		255
		4,938		5,279		9,982		10,712
Amortization of intangible assets:
North America		3,636		3,361		7,272		6,721
EMEA		69		71		138		145
APAC		116		171		234		348
		3,821		3,603		7,644		7,214
Total	$	8,759	$	8,882	$	17,626	$	17,926

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Acquisition

6 Months Ended

Jun. 30, 2019

Business Combinations [Abstract]

Acquisition

12.Acquisition

Cardinal

Effective August 1, 2018, we acquired 100 percent of the issued and outstanding shares of Cardinal, a digital solutions provider based in Cincinnati, Ohio, with offices across the Midwest and Southeast United States, for a cash purchase price, net of cash acquired, of approximately $78,400,000, including final working capital and tax gross up adjustments.  Cardinal provides technology solutions to digitally transform organizations through their expertise in mobile applications development, Internet of Things and cloud enabled business intelligence.  We believe that this acquisition strengthens our services capabilities and will bring value to our clients within our digital innovation services solution offering.

The fair value of net assets acquired was approximately $42,360,000, including $27,540,000 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 currently available.  We finalized the fair value assumptions for identifiable intangible assets acquired in the fourth quarter of 2018.  Goodwill acquired approximated $36,040,000 which was recorded in our North America operating segment.  The goodwill is tax deductible.  The working capital adjustment in the amount of $762,000 was finalized in the fourth quarter of 2018 and paid in January 2019.  Additionally, we finalized the purchase price allocation when the tax gross up adjustment of $2,600,000 was agreed upon in April 2019.  This resulted in a reduction of the previously recorded purchase price of $400,000.

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Subsequent Event

6 Months Ended

Jun. 30, 2019

Subsequent Events [Abstract]

Subsequent Event

13. Subsequent Event

On July 10, 2019, we entered into an unsecured inventory financing facility with a maximum borrowing capacity of $200,000,000.  This agreement will stay in effect until it is terminated by any of the parties.  If balances are not paid within stated vendor terms, they will accrue interest at prime plus 2.00%.  Amounts outstanding under this facility will be classified as accounts payable – inventory financing facility in the accompanying balance sheets.  

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Basis of Presentation and Recently Issued Accounting Standards (Policies)

6 Months Ended

Jun. 30, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Recently Issued Accounting Standards

Recently Issued Accounting Standards

In June 2016, the Financial Accounting Standards Board’s (“FASB”) issued Accounting Standard Update (“ASU”) No. 2016-13, “Financial Instruments – Credit Losses.”  The new standard is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held at each reporting date.  The new standard is effective for interim and annual periods beginning after December 15, 2019, and early adoption is permitted.  We will adopt the new standard as of January 1, 2020 and do not expect the adoption to have a material effect on our consolidated financial statements.

In April 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.”  The new standard provides changes for how a company considers expected recoveries and contractual extensions or renewal options when estimating expected credit losses.  The new standard is effective with the adoption of  ASU No. 2016-13.  We will adopt the new standard as of January 1, 2020 and do not expect the adoption to have a material effect on our consolidated financial statements.    

Effective January 1, 2019, we adopted the FASB ASU No. 2016-02—Leases (Topic 842) using the effective date transition method. This approach provides a method for recording existing leases at adoption without restating comparative periods. We elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification.  In addition, we made an accounting policy election not to separate non-lease components from lease components for all existing classes of underlying assets with the exception of land and buildings.  We also made an accounting policy election to not record right of use (“ROU”) assets and lease liabilities for leases with an initial term of twelve months or less on our consolidated balance sheet.

Adoption of the new standard resulted in the recording of additional net operating lease ROU assets and lease liabilities of $65,922,000 and $70,512,000, respectively, as of January 1, 2019. The difference between the additional lease assets and lease liabilities reflected existing accrued and prepaid rent balances that were reclassified to the operating lease ROU asset at January 1, 2019. The standard did not materially impact our consolidated net earnings and had no impact on cash flows.  

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, 2018 that affect or may affect our current financial statements.

Significant Accounting Policy - Leases

Significant Accounting Policy

We determine if a contract or arrangement is, or contains, a lease at inception.  Balances related to operating leases are included in other assets, other current liabilities, and other liabilities in our consolidated balance sheet.  Balances related to financing leases are included in property and equipment, current portion of long-term debt, and long-term debt in our consolidated balance sheet.  ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease.  

Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term.  As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.  We use the implicit rate when readily determinable.  The operating lease ROU asset includes any prepaid lease payments and additional direct costs and excludes lease incentives.  Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option.  

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Leases (Tables)

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Schedule of Financial Statement Classification of Lease Balances With Consolidated Balance Sheet

The following table provides information about the financial statement classification of our lease balances reported within the consolidated balances sheets as of June 30, 2019 and January 1, 2019 (in thousands):

Leases	Classification	June 30, 2019		January 1, 2019
Assets
Operating lease assets	Other assets	$	60,286	$	65,922
Finance lease assets	Property and equipment(a)		1,350		1,693
Total lease assets		$	61,636	$	67,615
Liabilities
Current
Operating lease liabilities	Accrued expenses and other current liabilities	$	15,096	$	15,788
Finance lease liabilities	Current portion of long-term debt		1,421		1,399
Non-current
Operating lease liabilities	Other liabilities		50,252		54,724
Finance lease liabilities	Long-term debt		930		1,521
Total lease liabilities		$	67,699	$	73,432

(a) Recorded net of accumulated amortization of $344,000 as of June 30, 2019 and there is no accumulated amortization as of January 1, 2019.

Schedule of Financial Statement Classification of Lease Balances With Consolidated Statement of Operations

The following table provides information about the financial statement classification of our lease expenses reported within the consolidated statement of operations for the three and six months ended June 30, 2019 (in thousands):

Lease cost	Classification	Three months ended June 30, 2019		Six months ended June 30, 2019
Operating lease cost (a) (b)	Selling and administrative expenses	$	4,850	$	9,768
Finance lease cost
Amortization of leased      assets	Selling and administrative expenses		173		344
Interest on lease liabilities	Interest expense, net		23		50
Total lease cost		$	5,046	$	10,162

(a) Includes immaterial amounts recorded to cost of goods sold.

(b) Excludes short-term and variable lease costs, which are immaterial.

Schedule of Future Minimum Lease Payments Under Non-cancelable Leases

Future minimum lease payments under non-cancelable leases as of June 30, 2019 are as follows (in thousands):

	Operating leases			Finance leases			Total
Remainder of 2019	$	9,416		$	869		$	10,285
2020		14,985			1,150			16,135
2021		12,470			432			12,902
2022		9,663			—			9,663
2023		6,557			—			6,557
After 2023		21,339			—			21,339
Total lease payments		74,430			2,451			76,881
Less:  Interest		(9,082	)		(100	)		(9,182	)
Present value of lease liabilities	$	65,348		$	2,351		$	67,699

Operating lease payments include $13.4 million related to options to extend lease terms that are reasonably certain of being exercised.

Schedule of Weighted Average Remaining Term and Discount Rates

The following table provides information about the remaining lease terms and discount rates applied as of June 30, 2019:

	June 30, 2019
Weighted average remaining lease term (years)
Operating leases		6.56
Finance leases		1.94
Weighted average discount rate (%)
Operating leases		3.86
Finance leases		4.84

Schedule of Other Information Related to Leases

The following table provides other information related to leases for the six months ended June 30, 2019 (in thousands):

	Six months ended June 30, 2019
Cash paid for amounts included in the measurement of lease    liabilities:
Operating cash flows from operating leases	$	9,269
Leased assets obtained in exchange for new operating lease liabilities		2,872

Future Minimum Lease Payments

Future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) as of December 31, 2018 are as follows (in thousands):

Years Ending December 31,
2019	$	21,499
2020		15,580
2021		12,121
2022		9,150
2023		6,296
Thereafter		7,238
Total minimum lease payments	$	71,884

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Sales Recognition (Tables)

6 Months Ended

Jun. 30, 2019

Revenue From Contract With Customer [Abstract]

Summary of Revenue Disaggregated by Reportable Operating Segments

In the following table, revenue is disaggregated by our reportable operating segments, which are primarily defined by 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, 2019 and 2018 (in thousands):

	Three Months Ended June 30, 2019
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	935,792	$	142,951	$	9,979	$	1,088,722
Software		289,874		190,086		25,653		505,613
Services		179,841		46,137		15,708		241,686
	$	1,405,507	$	379,174	$	51,340	$	1,836,021
Major Client Groups
Large Enterprise / Corporate	$	1,071,611	$	281,013	$	16,785	$	1,369,409
Public Sector		156,381		78,343		15,096		249,820
Small and Medium-Sized Businesses		177,515		19,818		19,459		216,792
	$	1,405,507	$	379,174	$	51,340	$	1,836,021
Revenue Recognition based on acting as    Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	1,338,948	$	347,336	$	43,284	$	1,729,568
Net revenue recognition (Agent)		66,559		31,838		8,056		106,453
	$	1,405,507	$	379,174	$	51,340	$	1,836,021

	Three Months Ended June 30, 2018
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	898,143	$	171,336	$	9,318	$	1,078,797
Software		307,570		193,116		39,340		540,026
Services		163,053		45,084		13,910		222,047
	$	1,368,766	$	409,536	$	62,568	$	1,840,870
Major Client Groups
Large Enterprise / Corporate	$	1,006,406	$	298,796	$	14,089	$	1,319,291
Public Sector		135,709		94,487		29,503		259,699
Small and Medium-Sized Businesses		226,651		16,253		18,976		261,880
	$	1,368,766	$	409,536	$	62,568	$	1,840,870
Revenue Recognition based on acting as    Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	1,304,301	$	378,098	$	55,079	$	1,737,478
Net revenue recognition (Agent)		64,465		31,438		7,489		103,392
	$	1,368,766	$	409,536	$	62,568	$	1,840,870

	Six Months Ended June 30, 2019
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	1,684,129	$	314,476	$	16,497	$	2,015,102
Software		611,953		373,234		60,718		1,045,905
Services		351,866		81,639		26,975		460,480
	$	2,647,948	$	769,349	$	104,190	$	3,521,487
Major Client Groups
Large Enterprise / Corporate	$	2,048,452	$	541,620	$	30,092	$	2,620,164
Public Sector		253,498		187,409		41,250		482,157
Small and Medium-Sized Businesses		345,998		40,320		32,848		419,166
	$	2,647,948	$	769,349	$	104,190	$	3,521,487
Revenue Recognition based on acting as    Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	2,521,026	$	714,501	$	91,150	$	3,326,677
Net revenue recognition (Agent)		126,922		54,848		13,040		194,810
	$	2,647,948	$	769,349	$	104,190	$	3,521,487

	Six Months Ended June 30, 2018
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	1,771,485	$	358,346	$	16,478	$	2,146,309
Software		568,629		383,318		78,359		1,030,306
Services		307,032		75,006		24,711		406,749
	$	2,647,146	$	816,670	$	119,548	$	3,583,364
Major Client Groups
Large Enterprise / Corporate	$	1,959,215	$	571,435	$	27,055	$	2,557,705
Public Sector		246,214		211,101		60,879		518,194
Small and Medium-Sized Businesses		441,717		34,134		31,614		507,465
	$	2,647,146	$	816,670	$	119,548	$	3,583,364
Revenue Recognition based on acting as    Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	2,534,713	$	766,435	$	106,904	$	3,408,052
Net revenue recognition (Agent)		112,433		50,235		12,644		175,312
	$	2,647,146	$	816,670	$	119,548	$	3,583,364

Summary of Information about Receivables, Contract Assets and Contract Liabilities

The following table provides information about receivables, contract assets and contract liabilities as of June 30, 2019 and December 31, 2018 (in thousands):

	June 30,		December 31,
	2019		2018
Current receivables, which are included in “Accounts    receivable, net”	$	2,284,922	$	1,931,736
Non-current receivables, which are included in “Other assets”		142,890		38,157
Contract assets, which are included in “Other current assets”		958		892
Contract liabilities, which are included in “Deferred revenue”    and “Other liabilities”		89,737		82,117

Summary of Changes in Contract Assets and Contract Liabilities from Contract with Customers

Significant changes in the contract assets and the contract liabilities balances during the six months ended June 30, 2019 are as follows (in thousands):

	Increase (Decrease)
	Contract			Contract
	Assets			Liabilities
Balances at December 31, 2018	$	892		$	82,117
Reclassification of the beginning contract liabilities    to revenue, as the result of performance obligations satisfied		—			(36,525	)
Cash received in advance and not recognized as revenue		—			44,145
Reclassification of the beginning contract assets to receivables, as    the result of rights to consideration becoming unconditional		(251	)		—
Contract assets recognized, net of reclassification to receivables		317			—
Balances at June 30, 2019	$	958		$	89,737

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, 2019 that are expected to be recognized in the future (in thousands):

	Products		Services		Total
Remainder of 2019	$	6	$	57,666	$	57,672
2020		6		40,410		40,416
2021		—		16,058		16,058
2022		—		6,414		6,414
2023 and thereafter		—		3,403		3,403
Total remaining performance obligations	$	12	$	123,951	$	123,963

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Net Earnings Per Share ("EPS") (Tables)

6 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

Reconciliation of Denominators of Basic and Diluted EPS Calculations

A reconciliation of the denominators of the basic and diluted EPS calculations follows (in thousands, except per share data):

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Numerator:
Net earnings	$	49,998	$	51,479	$	89,325	$	84,482
Denominator:
Weighted average shares used to    compute basic EPS		35,772		35,483		35,691		35,698
Dilutive potential common shares due to    dilutive RSUs, net of tax effect		339		332		416		341
Weighted average shares used to compute    diluted EPS		36,111		35,815		36,107		36,039
Net earnings per share:
Basic	$	1.40	$	1.45	$	2.50	$	2.37
Diluted	$	1.38	$	1.44	$	2.47	$	2.34

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Debt, Inventory Financing Facility, Finance Leases and Other Financing Obligations (Tables)

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Long-Term Debt

Our long-term debt consists of the following (in thousands):

	June 30, 2019			December 31, 2018
Senior revolving credit facility	$	—		$	—
Accounts receivable securitization financing facility		45,000			194,000
Finance leases and other financing obligations		2,351			2,920
Total		47,351			196,920
Less: current portion of long-term debt		(1,421	)		(1,395	)
Long-term debt	$	45,930		$	195,525

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Restricted Cash (Tables)

6 Months Ended

Jun. 30, 2019

Cash And Cash Equivalents [Abstract]

Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the balance sheets that sum to the total of the same such amounts shown in the statements of cash flows for the six months ended June 30, 2019 and 2018 (in thousands):

	June 30, 2019		December 31, 2018
Cash and cash equivalents	$	112,077	$	142,655
Restricted cash included in other current assets		—		8
Restricted cash included in other non-current assets		1,628		1,630
Total cash, cash equivalents and restricted cash shown in    the statement of cash flows	$	113,705	$	144,293

	June 30, 2018		December 31, 2017
Cash and cash equivalents	$	248,122	$	105,831
Restricted cash included in other current assets		9		46
Restricted cash included in other non-current assets		1,576		1,568
Total cash, cash equivalents and restricted cash shown in    the statement of cash flows	$	249,707	$	107,445

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Pre-tax Amounts by Operating Segment for Stock-Based Compensation

We recorded the following pre-tax amounts in selling and administrative expenses for stock-based compensation, by operating segment, in the accompanying consolidated financial statements (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
North America	$	2,740	$	2,945	$	5,863	$	5,335
EMEA		814		790		1,684		1,480
APAC		128		128		250		232
Total Consolidated	$	3,682	$	3,863	$	7,797	$	7,047

Summary of Restricted Stock Units Activity

The following table summarizes our RSU activity during the six months ended June 30, 2019:

	Number			Weighted Average Grant Date Fair Value		Fair Value
Nonvested at January 1, 2019		1,020,930		$	36.10
Granted(a)		350,987			57.33
Vested, including shares withheld to cover taxes		(407,961	)		34.08	$	13,903,311	(b)
Forfeited		(47,051	)		41.33
Nonvested at June 30, 2019(a)		916,905			44.86	$	53,363,871	(c)

^(a) Includes 84,602 RSUs subject to remaining performance conditions.  The number of RSUs subject to performance conditions are based on the Company achieving 97% of its 2019 targeted financial results.  The number of RSUs ultimately awarded under the performance-based RSUs varies based on actual achieved financial results for 2019.  

^(b) The aggregate fair value of vested RSUs represents the total pre-tax fair value, based on the closing stock price on the day of vesting, which would have been received by holders of RSUs had all such holders sold their underlying shares on that date.  

^(c) The aggregate fair value of the nonvested RSUs and the RSUs expected to vest represents the total pre-tax fair value, based on our closing stock price of $58.20 as of June 28, 2019 (the last trading day of the quarter), which would have been received by holders of RSUs had all such holders sold their underlying shares on that date.

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Net Sales by Offering for North America, EMEA and APAC

The following table summarizes net sales by offering for North America, EMEA and APAC for the three and six months ended June 30, 2019 and 2018 (in thousands):

	North America				EMEA				APAC
	Three Months Ended June 30,				Three Months Ended June 30,				Three Months Ended June 30,
Sales Mix	2019		2018		2019		2018		2019		2018
Hardware	$	935,792	$	898,143	$	142,951	$	171,336	$	9,979	$	9,318
Software		289,874		307,570		190,086		193,116		25,653		39,340
Services		179,841		163,053		46,137		45,084		15,708		13,910
	$	1,405,507	$	1,368,766	$	379,174	$	409,536	$	51,340	$	62,568
	North America				EMEA				APAC
	Six Months Ended June 30,				Six Months Ended June 30,				Six Months Ended June 30,
Sales Mix	2019		2018		2019		2018		2019		2018
Hardware	$	1,684,129	$	1,771,485	$	314,476	$	358,346	$	16,497	$	16,478
Software		611,953		568,629		373,234		383,318		60,718		78,359
Services		351,866		307,032		81,639		75,006		26,975		24,711
	$	2,647,948	$	2,647,146	$	769,349	$	816,670	$	104,190	$	119,548

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, 2019
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	1,225,666	$	333,037	$	35,632	$	1,594,335
Services		179,841		46,137		15,708		241,686
Total net sales		1,405,507		379,174		51,340		1,836,021
Costs of goods sold:
Products		1,120,834		304,885		33,197		1,458,916
Services		85,614		9,839		6,203		101,656
Total costs of goods sold		1,206,448		314,724		39,400		1,560,572
Gross profit		199,059		64,450		11,940		275,449
Operating expenses:
Selling and administrative expenses		144,498		47,652		7,339		199,489
Severance and restructuring expenses		480		200		—		680
Acquisition-related expenses		3,163		—		—		3,163
Earnings from operations	$	50,918	$	16,598	$	4,601	$	72,117

	Three Months Ended June 30, 2018
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	1,205,713	$	364,452	$	48,658	$	1,618,823
Services		163,053		45,084		13,910		222,047
Total net sales		1,368,766		409,536		62,568		1,840,870
Costs of goods sold:
Products		1,105,275		338,142		44,970		1,488,387
Services		72,974		9,430		5,702		88,106
Total costs of goods sold		1,178,249		347,572		50,672		1,576,493
Gross profit		190,517		61,964		11,896		264,377
Operating expenses:
Selling and administrative expenses		135,206		46,894		7,364		189,464
Severance and restructuring expenses		338		41		3		382
Acquisition-related expenses		94		—		—		94
Earnings from operations	$	54,879	$	15,029	$	4,529	$	74,437

	Six Months Ended June 30, 2019
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	2,296,082	$	687,710	$	77,215	$	3,061,007
Services		351,866		81,639		26,975		460,480
Total net sales		2,647,948		769,349		104,190		3,521,487
Costs of goods sold:
Products		2,095,535		628,923		71,766		2,796,224
Services		170,747		18,993		11,602		201,342
Total costs of goods sold		2,266,282		647,916		83,368		2,997,566
Gross profit		381,666		121,433		20,822		523,921
Operating expenses:
Selling and administrative expenses		281,448		94,797		14,307		390,552
Severance and restructuring expenses		811		115		124		1,050
Acquisition-related expenses		3,163		—		—		3,163
Earnings from operations	$	96,244	$	26,521	$	6,391	$	129,156

	Six Months Ended June 30, 2018
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	2,340,114	$	741,664	$	94,837	$	3,176,615
Services		307,032		75,006		24,711		406,749
Total net sales		2,647,146		816,670		119,548		3,583,364
Costs of goods sold:
Products		2,134,245		681,161		87,967		2,903,373
Services		147,013		17,495		10,843		175,351
Total costs of goods sold		2,281,258		698,656		98,810		3,078,724
Gross profit		365,888		118,014		20,738		504,640
Operating expenses:
Selling and administrative expenses		267,846		95,177		14,621		377,644
Severance and restructuring expenses		781		1,115		130		2,026
Acquisition-related expenses		94		—		—		94
Earnings from operations	$	97,167	$	21,722	$	5,987	$	124,876

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, 2019			December 31, 2018
North America	$	3,009,462		$	2,660,886
EMEA		747,769			611,338
APAC		165,963			98,959
Corporate assets and intercompany eliminations, net		(637,197	)		(595,236	)
Total assets	$	3,285,997		$	2,775,947

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 June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Depreciation and amortization of property and    equipment:
North America	$	3,786	$	4,158	$	7,743	$	8,456
EMEA		1,012		998		1,967		2,001
APAC		140		123		272		255
		4,938		5,279		9,982		10,712
Amortization of intangible assets:
North America		3,636		3,361		7,272		6,721
EMEA		69		71		138		145
APAC		116		171		234		348
		3,821		3,603		7,644		7,214
Total	$	8,759	$	8,882	$	17,626	$	17,926

XML

Basis of Presentation and Recently Issued Accounting Standards - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2019 USD ($) Segment	Jan. 01, 2019 USD ($)
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Number of operating segments | Segment	3
Additional lease liabilities	$ 65,348,000
ASU 2016-02 [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Additional ROU assets		$ 65,922,000
Additional lease liabilities		$ 70,512,000
Cardinal Solutions Group, Inc [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Business acquisition, effective date of acquisition	Aug. 01, 2018

XML

Leases - Additional Information (Detail) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Lessee Lease Description [Line Items]
Operating lease, existence of option to extend	true
Operating leases rental expense		$ 20,114,000	$ 19,126,000	$ 14,444,000
Non-cancellable rental income, 2019		$ 1,600,000
Minimum [Member]
Lessee Lease Description [Line Items]
Operating lease renewal term	1 year
Maximum [Member]
Lessee Lease Description [Line Items]
Operating lease renewal term	5 years

XML

Leases - Schedule of Financial Statement Classification of Lease Balances With Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Jan. 01, 2019
Lessee Lease Description [Line Items]
Total lease assets	$ 61,636	$ 67,615
Total lease liabilities	67,699	73,432
Other Assets [Member]
Lessee Lease Description [Line Items]
Operating lease assets	60,286	65,922
Property and equipment [Member]
Lessee Lease Description [Line Items]
Finance lease assets	1,350	1,693
Accrued expenses and other current liabilities [Member]
Lessee Lease Description [Line Items]
Operating lease liabilities	15,096	15,788
Current portion of long-term debt [Member]
Lessee Lease Description [Line Items]
Finance lease liabilities	1,421	1,399
Other liabilities [Member]
Lessee Lease Description [Line Items]
Operating lease liabilities	50,252	54,724
Long-term debt [Member]
Lessee Lease Description [Line Items]
Finance lease liabilities	$ 930	$ 1,521

XML

Leases - Schedule of Financial Statement Classification of Lease Balances With Consolidated Balance Sheet (Parenthetical) (Detail) - USD ($)	Jun. 30, 2019	Jan. 01, 2019
Leases [Abstract]
Finance lease assets, accumulated amortization	$ 344,000	$ 0

XML

Leases - Schedule of Financial Statement Classification of Lease Balances With Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Lessee Lease Description [Line Items]
Total lease cost	$ 5,046	$ 10,162
Selling and Administrative Expenses [Member]
Lessee Lease Description [Line Items]
Operating lease cost	4,850	9,768
Amortization of leased assets	173	344
Interest Expense, Net [Member]
Lessee Lease Description [Line Items]
Interest on lease liabilities	$ 23	$ 50

XML

Leases - Schedule of Future Minimum Lease Payments Under Non-cancelable Leases (Detail) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Operating Lease
Remainder of 2019	$ 9,416,000
2020	14,985,000
2021	12,470,000
2022	9,663,000
2023	6,557,000
After 2023	21,339,000
Total lease payments	74,430,000
Less: Interest	(9,082,000)
Present value of lease liabilities	65,348,000
Finance Lease
Remainder of 2019	869,000
2020	1,150,000
2021	432,000
Total lease payments	2,451,000
Less: Interest	(100,000)
Present value of lease liabilities	2,351,000	$ 2,920,000
Total
Remainder of 2019	10,285,000
2020	16,135,000
2021	12,902,000
2022	9,663,000
2023	6,557,000
After 2023	21,339,000
Total lease payments	76,881,000
Less: Interest	(9,182,000)
Present value of lease liabilities	$ 67,699,000

XML

Leases - Schedule of Future Minimum Lease Payments Under Non-cancelable Leases (Parenthetical) (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2019 USD ($)
Lessee Lease Description [Line Items]
Operating lease, option to extend lease terms, description	Operating lease payments include $13.4 million related to options to extend lease terms that are reasonably certain of being exercised
Operating lease payments	$ 74,430
Options to Eextend Lease Terms [Member]
Lessee Lease Description [Line Items]
Operating lease payments	$ 13,400

XML

Leases - Schedule of Weighted Average Remaining Term and Discount Rates (Detail)	Jun. 30, 2019
Leases [Abstract]
Operating leases, Weighted average remaining lease term (years)	6 years 6 months 21 days
Finance leases, Weighted average remaining lease term (years)	1 year 11 months 8 days
Operating leases, Weighted average discount rate	3.86%
Finance leases, Weighted average discount rate	4.84%

XML

Leases - Schedule of Cash Flows Associated With the Company's Leasing Activities (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2019 USD ($)
Leases [Abstract]
Operating cash flows from operating leases	$ 9,269
Leased assets obtained in exchange for new operating lease liabilities	$ 2,872

XML

Leases - Future Minimum Lease Payment (Detail) $ in Thousands	Dec. 31, 2018 USD ($)
Leases [Abstract]
2019	$ 21,499
2020	15,580
2021	12,121
2022	9,150
2023	6,296
Thereafter	7,238
Total minimum lease payments	$ 71,884

XML

Sales Recognition - Summary of Revenue Disaggregated by Reportable Operating Segments (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	$ 1,836,021	$ 1,840,870	$ 3,521,487	$ 3,583,364
Gross Revenue Recognition (Principal) [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	1,729,568	1,737,478	3,326,677	3,408,052
Net Revenue Recognition (Agent) [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	106,453	103,392	194,810	175,312
Large Enterprise / Corporate [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	1,369,409	1,319,291	2,620,164	2,557,705
Public Sector [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	249,820	259,699	482,157	518,194
Small and Medium-Sized Businesses [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	216,792	261,880	419,166	507,465
North America Segment [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	1,405,507	1,368,766	2,647,948	2,647,146
North America Segment [Member] | Gross Revenue Recognition (Principal) [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	1,338,948	1,304,301	2,521,026	2,534,713
North America Segment [Member] | Net Revenue Recognition (Agent) [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	66,559	64,465	126,922	112,433
North America Segment [Member] | Large Enterprise / Corporate [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	1,071,611	1,006,406	2,048,452	1,959,215
North America Segment [Member] | Public Sector [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	156,381	135,709	253,498	246,214
North America Segment [Member] | Small and Medium-Sized Businesses [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	177,515	226,651	345,998	441,717
EMEA Segment [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	379,174	409,536	769,349	816,670
EMEA Segment [Member] | Gross Revenue Recognition (Principal) [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	347,336	378,098	714,501	766,435
EMEA Segment [Member] | Net Revenue Recognition (Agent) [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	31,838	31,438	54,848	50,235
EMEA Segment [Member] | Large Enterprise / Corporate [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	281,013	298,796	541,620	571,435
EMEA Segment [Member] | Public Sector [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	78,343	94,487	187,409	211,101
EMEA Segment [Member] | Small and Medium-Sized Businesses [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	19,818	16,253	40,320	34,134
APAC Segment [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	51,340	62,568	104,190	119,548
APAC Segment [Member] | Gross Revenue Recognition (Principal) [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	43,284	55,079	91,150	106,904
APAC Segment [Member] | Net Revenue Recognition (Agent) [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	8,056	7,489	13,040	12,644
APAC Segment [Member] | Large Enterprise / Corporate [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	16,785	14,089	30,092	27,055
APAC Segment [Member] | Public Sector [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	15,096	29,503	41,250	60,879
APAC Segment [Member] | Small and Medium-Sized Businesses [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	19,459	18,976	32,848	31,614
Hardware Net Sales [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	1,088,722	1,078,797	2,015,102	2,146,309
Hardware Net Sales [Member] | North America Segment [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	935,792	898,143	1,684,129	1,771,485
Hardware Net Sales [Member] | EMEA Segment [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	142,951	171,336	314,476	358,346
Hardware Net Sales [Member] | APAC Segment [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	9,979	9,318	16,497	16,478
Software Net Sales [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	505,613	540,026	1,045,905	1,030,306
Software Net Sales [Member] | North America Segment [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	289,874	307,570	611,953	568,629
Software Net Sales [Member] | EMEA Segment [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	190,086	193,116	373,234	383,318
Software Net Sales [Member] | APAC Segment [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	25,653	39,340	60,718	78,359
Services Net Sales [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	241,686	222,047	460,480	406,749
Services Net Sales [Member] | North America Segment [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	179,841	163,053	351,866	307,032
Services Net Sales [Member] | EMEA Segment [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	46,137	45,084	81,639	75,006
Services Net Sales [Member] | APAC Segment [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	$ 15,708	$ 13,910	$ 26,975	$ 24,711

XML

Sales Recognition - Summary of Information about Receivables,Contract Assets and Contract Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Disaggregation of Revenue [Line Items]
Current receivables, which are included in “Accounts receivable, net”	$ 2,284,922	$ 1,931,736
Contract assets, which are included in “Other current assets”	958	892
Contract liabilities, which are included in “Deferred revenue” and “Other liabilities”	89,737	82,117
Accounts Receivable, Net [Member]
Disaggregation of Revenue [Line Items]
Current receivables, which are included in “Accounts receivable, net”	2,284,922	1,931,736
Other Assets [Member]
Disaggregation of Revenue [Line Items]
Non-current receivables, which are included in “Other assets”	142,890	38,157
Other Current Assets [Member]
Disaggregation of Revenue [Line Items]
Contract assets, which are included in “Other current assets”	958	892
Deferred Revenue and Other Liabilities [Member]
Disaggregation of Revenue [Line Items]
Contract liabilities, which are included in “Deferred revenue” and “Other liabilities”	$ 89,737	$ 82,117

XML

Sales Recognition - Summary of Changes in Contract Assets and Contract Liabilities from Contract with Customers (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2019 USD ($)
Revenue From Contract With Customer [Abstract]
Beginning balance, Contract Assets	$ 892
Reclassification of the beginning contract assets to receivables, as the result of rights to consideration becoming unconditional, Contract Assets	(251)
Contract assets recognized, net of reclassification to receivables, Contract Assets	317
Ending balance, Contract Assets	958
Beginning balance, Contract Liabilities	82,117
Reclassification of the beginning contract liabilities to revenue, as the result of performance obligations satisfied, Contract Liabilities	(36,525)
Cash received in advance and not recognized as revenue, Contract Liabilities	44,145
Ending balance, Contract Liabilities	$ 89,737

XML

Sales Recognition - Summary of Estimated Net Sales Related to Performance Obligation (Detail) $ in Thousands	Jun. 30, 2019 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligations	$ 123,963
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligations	$ 57,672
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	6 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligations	$ 40,416
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligations	$ 16,058
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligations	$ 6,414
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligations	$ 3,403
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period
Products [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligations	$ 12
Products [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligations	$ 6
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	6 years
Products [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligations	$ 6
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
Services [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligations	$ 123,951
Services [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligations	$ 57,666
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	6 years
Services [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligations	$ 40,410
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
Services [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligations	$ 16,058
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
Services [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligations	$ 6,414
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
Services [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligations	$ 3,403
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period

XML

Sales Recognition - Summary of Estimated Net Sales Related to Performance Obligation (Detail 1) $ in Thousands	Jun. 30, 2019 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligations	$ 123,963
Products [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligations	12
Services [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligations	$ 123,951

XML

Sales Recognition - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2019
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]
Description of expected duration	With the exception of remaining performance obligations associated with our OneCall Support Services contracts which are included in the table above regardless of original duration, remaining performance obligations that have original expected durations of one year or less are not included in the table above.  Amounts not included in the table above have an average original expected duration of nine months.
Time and material contracts expected duration	14 months

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Net Earnings Per Share ("EPS") - Reconciliation of Denominators of Basic and Diluted EPS Calculations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Numerator:
Net earnings	$ 49,998	$ 51,479	$ 89,325	$ 84,482
Denominator:
Weighted average shares used to compute basic EPS	35,772	35,483	35,691	35,698
Dilutive potential common shares due to dilutive RSUs, net of tax effect	339	332	416	341
Weighted average shares used to compute diluted EPS	36,111	35,815	36,107	36,039
Net earnings per share:
Basic	$ 1.40	$ 1.45	$ 2.50	$ 2.37
Diluted	$ 1.38	$ 1.44	$ 2.47	$ 2.34

XML

Net Earnings Per Share ("EPS") - Additional Information (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
RSUs excluded from the diluted EPS calculations	1,000	13,000	83,000	17,000

XML

Debt, Inventory Financing Facility, Finance Leases and Other Financing Obligations - Long-Term Debt (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Long-term debt
Accounts receivable securitization financing facility	$ 45,000	$ 194,000
Finance leases and other financing obligations	2,351	2,920
Total	47,351	196,920
Less: current portion of long-term debt	(1,421)	(1,395)
Long-term debt	$ 45,930	$ 195,525

XML

Debt, Inventory Financing Facility, Finance Leases and Other Financing Obligations - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)
Debt Instrument [Line Items]
Accounts receivable securitization financing facility	$ 45,000,000	$ 194,000,000
Accounts payable-inventory financing facility	260,890,000	304,130,000
Finance lease obligations	2,351,000	$ 2,920,000
Senior Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Credit facility, borrowing capacity	$ 350,000,000
Line of credit maturity date	Jun. 23, 2021
Senior Revolving Credit Facility [Member] | Foreign Currency Borrowings [Member]
Debt Instrument [Line Items]
Credit facility, borrowing capacity	$ 50,000,000
ABS Facility [Member]
Debt Instrument [Line Items]
Credit facility, borrowing capacity	$ 250,000,000
Line of credit maturity date	Jun. 23, 2021
Amount of facility permitted by qualified receivables	$ 250,000,000
Accounts receivable securitization financing facility	45,000,000
Senior Revolving Credit Facility Term Loan A and Asset Backed Securitization Facility [Member]
Debt Instrument [Line Items]
Credit facility, borrowing capacity	$ 600,000,000
Maximum leverage ratio times adjusted earnings	3.0
Inventory Financing Facility [Member]
Debt Instrument [Line Items]
Inventory financing facility maximum borrowing capacity	$ 400,000,000
Accounts payable-inventory financing facility	$ 260,890,000
Inventory financing facility maturity date	Jun. 23, 2021
Inventory financing facility interest rate if balances are not paid within stated vendor terms	Prime plus 1.25%
Inventory financing facility rate if vendor terms not met equal prime plus	1.25%

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Restricted Cash - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Cash And Cash Equivalents [Abstract]
Cash and cash equivalents	$ 112,077	$ 142,655	$ 248,122	$ 105,831
Restricted cash included in other current assets		$ 8	$ 9	$ 46
Restricted Cash, Current, Asset, Statement of Financial Position [Extensible List]	us-gaap:OtherAssetsCurrent	us-gaap:OtherAssetsCurrent	us-gaap:OtherAssetsCurrent	us-gaap:OtherAssetsCurrent
Restricted cash included in other non-current assets	$ 1,628	$ 1,630	$ 1,576	$ 1,568
Restricted Cash, Noncurrent, Asset, Statement of Financial Position [Extensible List]	us-gaap:OtherAssetsNoncurrent	us-gaap:OtherAssetsNoncurrent	us-gaap:OtherAssetsNoncurrent	us-gaap:OtherAssetsNoncurrent
Total cash, cash equivalents and restricted cash shown in the statement of cash flows	$ 113,705	$ 144,293	$ 249,707	$ 107,445

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Stock-Based Compensation - Pre-tax Amounts by Operating Segment for Stock-Based Compensation (Detail) - Restricted Stock Units (RSUs) [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense related to restricted stock units (RSUs)	$ 3,682	$ 3,863	$ 7,797	$ 7,047
Selling and Administrative Expenses [Member] | North America Segment [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense related to restricted stock units (RSUs)	2,740	2,945	5,863	5,335
Selling and Administrative Expenses [Member] | EMEA Segment [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense related to restricted stock units (RSUs)	814	790	1,684	1,480
Selling and Administrative Expenses [Member] | APAC Segment [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense related to restricted stock units (RSUs)	$ 128	$ 128	$ 250	$ 232

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Stock-Based Compensation - Additional Information (Detail) - Restricted Stock Units (RSUs) [Member]	6 Months Ended
	Jun. 30, 2019 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation cost related to RSU's not yet recognized	$ 31,485,000
Weighted average number of years for recognition of outstanding nonvested RSUs	1 year 7 months 24 days

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Stock-Based Compensation - Summary of Restricted Stock Units Activity (Detail) - Restricted Stock Units (RSUs) [Member]	6 Months Ended
	Jun. 30, 2019 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested Number, Beginning balance | shares	1,020,930
Number, Granted | shares	350,987
Number, Vested, including shares withheld to cover taxes | shares	(407,961)
Number, Forfeited | shares	(47,051)
Nonvested Number, Ending balance | shares	916,905
Nonvested Weighted Average Grant Date Fair Value, Beginning balance | $ / shares	$ 36.10
Weighted Average Grant Date Fair Value, Granted | $ / shares	57.33
Weighted Average Grant Date Fair Value, Vested, including shares withheld to cover taxes | $ / shares	34.08
Weighted Average Grant Date Fair Value, Forfeited | $ / shares	41.33
Nonvested Weighted Average Grant Date Fair Value, Ending balance | $ / shares	$ 44.86
Fair Value, Vested, including shares withheld to cover taxes | $	$ 13,903,311
Fair Value, Nonvested at end of period | $	$ 53,363,871

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Stock-Based Compensation - Summary of Restricted Stock Units Activity (Parenthetical) (Detail) - $ / shares	6 Months Ended
	Jun. 30, 2019	Jun. 28, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Closing stock price		$ 58.20
Performance Based Restricted Stock Unit [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total RSUs	84,602

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Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Income Tax [Line Items]
Effective tax rate	25.90%	25.90%	24.90%	25.90%
United States federal statutory income tax rate	21.00%	21.00%	21.00%	21.00%
Unrecognized tax benefits	$ 8,337,000		$ 8,337,000		$ 6,849,000
Unrecognized tax benefits, interest on income taxes accrued	$ 440,000		$ 440,000		$ 313,000
Period during which examination phase of tax audits may conclude, description			Although the timing of the resolutions and/or closures of audits is highly uncertain, it is reasonably possible that the examination phase of these audits may be concluded within the next 12 months, which could increase or decrease the balance of our gross unrecognized tax benefits.
Earliest Tax Year [Member]
Income Tax [Line Items]
Open tax year			2012
Latest Tax Year [Member]
Income Tax [Line Items]
Open tax year			2017

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Share Repurchase Program - Additional Information (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Feb. 13, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock repurchase program, authorized amount			$ 50,000,000
Common stock repurchase program, number of shares repurchased		641,211
Repurchase program, approximate dollar value of shares purchased		$ 22,069,000
Repurchase program, average price paid per share		$ 34.42
Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares repurchased	0

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Commitments and Contingencies - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2019 USD ($)
Commitments And Contingencies Disclosure [Abstract]
Other commitment, Performance bonds outstanding	$ 3,939,000
Number of months of salary paid as severance	From three to twenty-four months

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Segment Information - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2019 Segment
Segment Reporting [Abstract]
Number of operating segments	3
Description of major customers net sales	None of our clients exceeded ten percent of consolidated net sales for the three or six months ended June 30, 2019 or 2018.

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Segment Information - Net Sales by Offering for North America, EMEA and APAC (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue from External Customer [Line Items]
Revenues from external customers	$ 1,836,021	$ 1,840,870	$ 3,521,487	$ 3,583,364
North America Segment [Member]
Revenue from External Customer [Line Items]
Revenues from external customers	1,405,507	1,368,766	2,647,948	2,647,146
EMEA Segment [Member]
Revenue from External Customer [Line Items]
Revenues from external customers	379,174	409,536	769,349	816,670
APAC Segment [Member]
Revenue from External Customer [Line Items]
Revenues from external customers	51,340	62,568	104,190	119,548
Hardware Net Sales [Member]
Revenue from External Customer [Line Items]
Revenues from external customers	1,088,722	1,078,797	2,015,102	2,146,309
Hardware Net Sales [Member] | North America Segment [Member]
Revenue from External Customer [Line Items]
Revenues from external customers	935,792	898,143	1,684,129	1,771,485
Hardware Net Sales [Member] | EMEA Segment [Member]
Revenue from External Customer [Line Items]
Revenues from external customers	142,951	171,336	314,476	358,346
Hardware Net Sales [Member] | APAC Segment [Member]
Revenue from External Customer [Line Items]
Revenues from external customers	9,979	9,318	16,497	16,478
Software Net Sales [Member]
Revenue from External Customer [Line Items]
Revenues from external customers	505,613	540,026	1,045,905	1,030,306
Software Net Sales [Member] | North America Segment [Member]
Revenue from External Customer [Line Items]
Revenues from external customers	289,874	307,570	611,953	568,629
Software Net Sales [Member] | EMEA Segment [Member]
Revenue from External Customer [Line Items]
Revenues from external customers	190,086	193,116	373,234	383,318
Software Net Sales [Member] | APAC Segment [Member]
Revenue from External Customer [Line Items]
Revenues from external customers	25,653	39,340	60,718	78,359
Services Net Sales [Member]
Revenue from External Customer [Line Items]
Revenues from external customers	241,686	222,047	460,480	406,749
Services Net Sales [Member] | North America Segment [Member]
Revenue from External Customer [Line Items]
Revenues from external customers	179,841	163,053	351,866	307,032
Services Net Sales [Member] | EMEA Segment [Member]
Revenue from External Customer [Line Items]
Revenues from external customers	46,137	45,084	81,639	75,006
Services Net Sales [Member] | APAC Segment [Member]
Revenue from External Customer [Line Items]
Revenues from external customers	$ 15,708	$ 13,910	$ 26,975	$ 24,711

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Segment Information - Financial Information about Reportable Operating Segments (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Segment Reporting Information [Line Items]
Total net sales	$ 1,836,021	$ 1,840,870	$ 3,521,487	$ 3,583,364
Total costs of goods sold	1,560,572	1,576,493	2,997,566	3,078,724
Gross profit	275,449	264,377	523,921	504,640
Operating expenses:
Selling and administrative expenses	199,489	189,464	390,552	377,644
Severance and restructuring expenses	680	382	1,050	2,026
Acquisition-related expenses	3,163	94	3,163	94
Earnings from operations	72,117	74,437	129,156	124,876
Products [Member]
Segment Reporting Information [Line Items]
Total net sales	1,594,335	1,618,823	3,061,007	3,176,615
Total costs of goods sold	1,458,916	1,488,387	2,796,224	2,903,373
Services [Member]
Segment Reporting Information [Line Items]
Total net sales	241,686	222,047	460,480	406,749
Total costs of goods sold	101,656	88,106	201,342	175,351
North America Segment [Member]
Segment Reporting Information [Line Items]
Total net sales	1,405,507	1,368,766	2,647,948	2,647,146
Total costs of goods sold	1,206,448	1,178,249	2,266,282	2,281,258
Gross profit	199,059	190,517	381,666	365,888
Operating expenses:
Selling and administrative expenses	144,498	135,206	281,448	267,846
Severance and restructuring expenses	480	338	811	781
Acquisition-related expenses	3,163	94	3,163	94
Earnings from operations	50,918	54,879	96,244	97,167
North America Segment [Member] | Products [Member]
Segment Reporting Information [Line Items]
Total net sales	1,225,666	1,205,713	2,296,082	2,340,114
Total costs of goods sold	1,120,834	1,105,275	2,095,535	2,134,245
North America Segment [Member] | Services [Member]
Segment Reporting Information [Line Items]
Total net sales	179,841	163,053	351,866	307,032
Total costs of goods sold	85,614	72,974	170,747	147,013
EMEA Segment [Member]
Segment Reporting Information [Line Items]
Total net sales	379,174	409,536	769,349	816,670
Total costs of goods sold	314,724	347,572	647,916	698,656
Gross profit	64,450	61,964	121,433	118,014
Operating expenses:
Selling and administrative expenses	47,652	46,894	94,797	95,177
Severance and restructuring expenses	200	41	115	1,115
Earnings from operations	16,598	15,029	26,521	21,722
EMEA Segment [Member] | Products [Member]
Segment Reporting Information [Line Items]
Total net sales	333,037	364,452	687,710	741,664
Total costs of goods sold	304,885	338,142	628,923	681,161
EMEA Segment [Member] | Services [Member]
Segment Reporting Information [Line Items]
Total net sales	46,137	45,084	81,639	75,006
Total costs of goods sold	9,839	9,430	18,993	17,495
APAC Segment [Member]
Segment Reporting Information [Line Items]
Total net sales	51,340	62,568	104,190	119,548
Total costs of goods sold	39,400	50,672	83,368	98,810
Gross profit	11,940	11,896	20,822	20,738
Operating expenses:
Selling and administrative expenses	7,339	7,364	14,307	14,621
Severance and restructuring expenses		3	124	130
Earnings from operations	4,601	4,529	6,391	5,987
APAC Segment [Member] | Products [Member]
Segment Reporting Information [Line Items]
Total net sales	35,632	48,658	77,215	94,837
Total costs of goods sold	33,197	44,970	71,766	87,967
APAC Segment [Member] | Services [Member]
Segment Reporting Information [Line Items]
Total net sales	15,708	13,910	26,975	24,711
Total costs of goods sold	$ 6,203	$ 5,702	$ 11,602	$ 10,843

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Segment Information - Summary of Total Assets by Reportable Operating Segment (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 3,285,997	$ 2,775,947
Operating Segments [Member] | North America Segment [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	3,009,462	2,660,886
Operating Segments [Member] | EMEA Segment [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	747,769	611,338
Operating Segments [Member] | APAC Segment [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	165,963	98,959
Intersegment Eliminations [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ (637,197)	$ (595,236)

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Segment Information - Pre-Tax Depreciation and Amortization by Operating Segment (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Segment Reporting Information [Line Items]
Depreciation and amortization of property and equipment	$ 4,938	$ 5,279	$ 9,982	$ 10,712
Amortization of intangible assets	3,821	3,603	7,644	7,214
Depreciation and amortization, total	8,759	8,882	17,626	17,926
North America Segment [Member]
Segment Reporting Information [Line Items]
Depreciation and amortization of property and equipment	3,786	4,158	7,743	8,456
Amortization of intangible assets	3,636	3,361	7,272	6,721
EMEA Segment [Member]
Segment Reporting Information [Line Items]
Depreciation and amortization of property and equipment	1,012	998	1,967	2,001
Amortization of intangible assets	69	71	138	145
APAC Segment [Member]
Segment Reporting Information [Line Items]
Depreciation and amortization of property and equipment	140	123	272	255
Amortization of intangible assets	$ 116	$ 171	$ 234	$ 348

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Acquisition - Additional Information (Detail) - USD ($)				6 Months Ended
	Apr. 30, 2019	Jan. 31, 2019	Aug. 01, 2018	Jun. 30, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Acquisitions, net of cash and cash equivalents acquired				$ 3,362,000
Goodwill				$ 166,392,000	$ 166,841,000
Cardinal Solutions Group, Inc [Member]
Business Acquisition [Line Items]
Acquisition, percentage of issued and outstanding shares acquired			100.00%
Acquisitions, net of cash and cash equivalents acquired			$ 78,400,000
Cardinal Solutions Group, Inc [Member] | North America Segment [Member]
Business Acquisition [Line Items]
Net assets acquired			42,360,000
Identifiable intangible assets			27,540,000
Goodwill			36,040,000
Working capital adjustment in the amount paid		$ 762,000
Acquisition, estimated tax adjustments	$ 2,600,000
Reduction of the previously recorded purchase price			$ 400,000
Cardinal Solutions Group, Inc [Member] | North America Segment [Member] | Customer Relationships [Member]
Business Acquisition [Line Items]
Estimated useful life of acquired intangible assets			10 years

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Subsequent Event - Additional Information (Detail) - USD ($)	Jul. 10, 2019	Jun. 30, 2019	Dec. 31, 2018
Subsequent Event [Line Items]
Accounts payable—inventory financing facility		$ 260,890,000	$ 304,130,000
Unsecured Inventory Financing Facility [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Accounts payable—inventory financing facility	$ 200,000,000
Inventory financing facility interest rate if balances are not paid within stated vendor terms	Prime plus 2.00%.
Inventory financing facility rate if vendor terms not met equal prime plus	2.00%