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, 2020

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 3, 2020 was 35,071,429.

INSIGHT ENTERPRISES, INC.

QUARTERLY REPORT ON FORM 10-Q

Three Months Ended June 30, 2020

TABLE OF CONTENTS

		Page
PART I -	Financial Information
Item 1 –	Financial Statements:
	Consolidated Balance Sheets (unaudited) – June 30, 2020 and December 31, 2019	1
	Consolidated Statements of Operations (unaudited) – Three and Six Months Ended June 30, 2020 and 2019	2
	Consolidated Statements of Comprehensive Income (unaudited) – Three and Six Months Ended June 30, 2020 and 2019	3
	Consolidated Statements of Stockholders’ Equity (unaudited) – Three and Six Months Ended June 30, 2020 and 2019	4
	Consolidated Statements of Cash Flows (unaudited) – Six Months Ended June 30, 2020 and 2019	5
	Notes to Consolidated Financial Statements (unaudited)	6
Item 2 –	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3 –	Quantitative and Qualitative Disclosures About Market Risk	41
Item 4 –	Controls and Procedures	41
PART II -	Other Information	42
Item 1 –	Legal Proceedings	42
Item 1A –	Risk Factors	42
Item 2 –	Unregistered Sales of Equity Securities and Use of Proceeds	43
Item 3 –	Defaults Upon Senior Securities	44
Item 4 –	Mine Safety Disclosures	44
Item 5 –	Other Information	44
Item 6 –	Exhibits	45
Signatures		46

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: projections of, and matters that affect, 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; our future responses to and the potential impact of coronavirus strain COVID-19 (“COVID-19”) on our Company; the expected effects of seasonality on our business; expectations of further consolidation and trends in the Information Technology (“IT”) industry; our business strategy and our strategic initiatives, including our efforts to grow our core business, including due to COVID-19, develop and grow our global cloud business and build scalable solutions; expectations regarding partner incentives; our expectations about future benefits of our acquisitions and our plans related thereto, including potential expansion into wider regions; our expectations regarding completion of the PCM integration; the increasing demand for big data solutions; the availability of competitive sources of products for our purchase and resale; our intentions concerning the payment of dividends; our acquisition strategy; our ability to offset the effects of inflation and manage any increase in interest rates; projections of capital expenditures; our plans to continue to evolve our IT systems, including migration of EMEA’s current system; the sufficiency of our capital resources, the availability of financing and our needs or plans relating thereto; the effects of new accounting principles and expected dates of adoption; the effect of indemnification obligations; projections about the outcome of ongoing tax audits; our expectations regarding future tax rates; adequate provisions for and our positions and strategies with respect to ongoing and threatened litigation and expected outcomes; our ability to expand our client relationships; our expectations that pricing pressures in the IT industry will continue; our plans to use cash flow from operations for working capital, to pay down debt, repurchase shares of our common stock, make capital expenditures, and fund acquisitions; our belief that our office facilities are adequate and that we will be able to extend our current leases or locate substitute facilities on satisfactory terms; our belief that we have adequate provisions for losses; our expectation that we will not incur interest payments under our inventory financing facilities; our expectations that future income will be sufficient to fully recover deferred tax assets; 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, 2019 and in “Risk Factors” in Part II, Item 1A of this report:

• the duration and severity of the COVID-19 pandemic and its effects on our business, results of operations and financial condition, as well as the widespread outbreak of any other illnesses or communicable diseases;

• 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 in the requirements year over year;

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

INSIGHT ENTERPRISES, INC.

• risks associated with the integration and operation of acquired businesses, including PCM and the achievement of expected synergies and benefits;

• possible significant fluctuations in our future operating results as well as seasonality and variability in customer demands;

• the risks associated with our international operations;

• general economic conditions, economic uncertainties and changes in geopolitical conditions;

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

• cyberattacks or breaches of data privacy and security regulations;

• 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, including PCM related litigation, 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;

• 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;

• our substantial amount of indebtedness;

• the conditional conversion feature of the convertible notes, which if triggered, may adversely affect the Company’s financial condition and operating results;

• the accounting method for convertible debt securities that may be settled in cash, such as the convertible notes, could have a material effect on the Company’s reported financial results;

• future sales of the Company’s common stock or equity-linked securities in the public market could lower the market price for our common stock;

• the Company is subject to counterparty risk with respect to the convertible note hedge transactions; and

• risks associated with the discontinuation of LIBOR as a benchmark rate.

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 (the “SEC”).  Any forward-looking statements in this report are made as of the date of this filing and 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, 2020			December 31, 2019
ASSETS
Current assets:
Cash and cash equivalents	$	153,866		$	114,668
Accounts receivable, net of allowance for doubtful accounts    of $13,017 and $10,762, respectively		2,677,564			2,511,383
Inventories		212,980			190,833
Other current assets		220,080			231,148
Total current assets		3,264,490			3,048,032
Property and equipment, net of accumulated depreciation and    amortization of $241,826 and $236,330, respectively		127,490			130,907
Goodwill		415,897			415,149
Intangible assets, net of accumulated amortization of    $93,462 and $73,492, respectively		261,254			278,584
Other assets		272,347			305,507
	$	4,341,478		$	4,178,179
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable—trade	$	1,796,918		$	1,275,957
Accounts payable—inventory financing facilities		261,133			253,676
Accrued expenses and other current liabilities		371,401			352,204
Current portion of long-term debt		1,509			1,691
Total current liabilities		2,430,961			1,883,528
Long-term debt		435,955			857,673
Deferred income taxes		43,880			44,633
Other liabilities		223,326			232,027
		3,134,122			3,017,861
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value, 3,000 shares authorized;    no shares issued		—			—
Common stock, $0.01 par value, 100,000 shares authorized;    35,070 shares at June 30, 2020 and 35,263 shares at    December 31, 2019 issued and outstanding		351			353
Additional paid-in capital		354,431			357,032
Retained earnings		900,950			841,097
Accumulated other comprehensive loss – foreign currency    translation adjustments		(48,376	)		(38,164	)
Total stockholders’ equity		1,207,356			1,160,318
	$	4,341,478		$	4,178,179

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,
	2020		2019		2020			2019
Net sales:
Products	$	1,672,933	$	1,594,335	$	3,521,249		$	3,061,007
Services		295,802		241,686		591,537			460,480
Total net sales		1,968,735		1,836,021		4,112,786			3,521,487
Costs of goods sold:
Products		1,517,947		1,458,916		3,188,185			2,796,224
Services		126,399		101,656		274,876			201,342
Total costs of goods sold		1,644,346		1,560,572		3,463,061			2,997,566
Gross profit		324,389		275,449		649,725			523,921
Operating expenses:
Selling and administrative expenses		242,580		199,489		511,443			390,552
Severance and restructuring expenses		7,010		680		9,154			1,050
Acquisition and integration related expenses		611		3,163		2,077			3,163
Earnings from operations		74,188		72,117		127,051			129,156
Non-operating (income) expense:
Interest expense, net		10,219		4,335		22,045			8,887
Other (income) expense, net		1,098		346		(465	)		1,396
Earnings before income taxes		62,871		67,436		105,471			118,873
Income tax expense		16,486		17,438		25,125			29,548
Net earnings	$	46,385	$	49,998	$	80,346		$	89,325
Net earnings per share:
Basic	$	1.32	$	1.40	$	2.29		$	2.50
Diluted	$	1.32	$	1.38	$	2.27		$	2.47
Shares used in per share calculations:
Basic		35,060		35,772		35,147			35,691
Diluted		35,260		36,111		35,453			36,107

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,
	2020		2019			2020			2019
Net earnings	$	46,385	$	49,998		$	80,346		$	89,325
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		7,619		(290	)		(10,212	)		1,625
Total comprehensive income	$	54,004	$	49,708		$	70,134		$	90,950

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, 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 March 31, 2020		35,049	$	350		—	$	—	$	351,648		$	(55,995	)	$	854,566		$	1,150,569
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes		21		1		—		—		(49	)		—			(1	)		(49	)
Stock-based compensation expense		—		—		—		—		2,832			—			—			2,832
Foreign currency translation adjustments, net of tax		—		—		—		—		—			7,619			—			7,619
Net earnings		—		—		—		—		—			—			46,385			46,385
Balances at June 30, 2020		35,070	$	351		—	$	—	$	354,431		$	(48,376	)	$	900,950		$	1,207,356

	Common Stock						Treasury Stock						Additional Paid-in			Accumulated Other Comprehensive			Retained			Total Stockholders'
	Shares			Par Value			Shares			Amount			Capital			Loss			Earnings			Equity
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
Balances at December 31, 2019		35,263		$	353			—		$	—		$	357,032		$	(38,164	)	$	841,097		$	1,160,318
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes		252			3			—			—			(5,339	)		—			(1	)		(5,337	)
Stock-based compensation expense		—			—			—			—			7,241			—			—			7,241
Repurchase of treasury stock		—			—			(445	)		(25,000	)		—			—			—			(25,000	)
Retirement of treasury stock		(445	)		(5	)		445			25,000			(4,503	)		—			(20,492	)		-
Foreign currency translation adjustments, net of tax		—			—			—			—			—			(10,212	)		—			(10,212	)
Net earnings		—			—			—			—			—			—			80,346			80,346
Balances at June 30, 2020		35,070		$	351			—		$	—		$	354,431		$	(48,376	)	$	900,950		$	1,207,356

See accompanying notes to consolidated financial statements.

4

INSIGHT ENTERPRISES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

	Six Months Ended June 30,
	2020			2019
Cash flows from operating activities:
Net earnings	$	80,346		$	89,325
Adjustments to reconcile net earnings to net cash provided by    operating activities:
Depreciation and amortization		34,623			17,626
Provision for losses on accounts receivable		6,570			2,346
Non-cash stock-based compensation		7,241			7,797
Deferred income taxes		(1,464	)		1,180
Amortization of debt discount		8,002			-
Other adjustments		2,829			2,350
Changes in assets and liabilities:
Increase in accounts receivable		(182,511	)		(354,717	)
Increase in inventories		(26,647	)		(33,359	)
Decrease (increase) in other assets		46,088			(93,714	)
Increase in accounts payable		529,742			448,682
(Decrease) increase in accrued expenses and other liabilities		(7,290	)		95,022
Net cash provided by operating activities		497,529			182,538
Cash flows from investing activities:
Proceeds from sale of assets held for sale		14,218			—
Purchases of property and equipment		(14,494	)		(10,584	)
Acquisitions, net of cash and cash equivalents acquired		(6,406	)		(3,362	)
Net cash used in investing activities		(6,682	)		(13,946	)
Cash flows from financing activities:
Borrowings on senior revolving credit facility		—			89,936
Repayments on senior revolving credit facility		—			(89,936	)
Borrowings on ABL revolving credit facility, net of initial lender fees		1,381,179			—
Repayments on ABL revolving credit facility		(1,807,421	)		—
Borrowings on accounts receivable securitization financing facility	—				1,919,500
Repayments on accounts receivable securitization financing facility	—				(2,068,500	)
Net borrowings (repayments) under inventory financing facilities		7,457			(43,240	)
Repurchases of common stock		(25,000	)		—
Other payments		(6,791	)		(6,757	)
Net cash used in financing activities		(450,576	)		(198,997	)
Foreign currency exchange effect on cash, cash equivalents and    restricted cash balances		(814	)		(183	)
Increase (decrease) in cash, cash equivalents and restricted cash		39,457			(30,588	)
Cash, cash equivalents and restricted cash at beginning of period		116,297			144,293
Cash, cash equivalents and restricted cash at end of period	$	155,754		$	113,705

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 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 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, 2020 and our results of operations for the three and six months ended June 30, 2020 and 2019 and cash flows for the six months ended June 30, 2020 and 2019.  The consolidated balance sheet as of December 31, 2019 was derived from the audited consolidated balance sheet at such date.  The accompanying unaudited consolidated financial statements and notes have been prepared in accordance with the rules and regulations promulgated by the SEC and consequently do not include all of the disclosures normally required by United States generally accepted accounting principles (“GAAP”).  

The results of operations for interim periods are not necessarily indicative of results for the full year, due in part to the seasonal nature of our business.  These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including the related notes thereto, in our Annual Report on Form 10-K for the year ended December 31, 2019.  Our results of operations include the results of PCM, Inc. (“PCM”) from its acquisition date of August 30, 2019 and vNext from its acquisition date of February 28, 2020.  

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

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

6

INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Recently Issued Accounting Standards

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2019-12, “Simplifying the Accounting for Income Taxes.”  The new standard is intended to simplify various aspects of accounting for income taxes by removing specific exceptions and amending certain requirements.  The new standard is effective for interim and annual periods beginning after December 15, 2020, and early adoption is permitted.  We do not expect this new standard to have a material effect on our consolidated financial statements.    

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses.”  The new standard is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held at each reporting date. 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 update provides changes for how a company considers expected recoveries and contractual extensions or renewal options when estimating expected credit losses.  In November 2019, the FASB issued ASU No. 2019-11, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses.”  The new standard update provides amendments to the reporting of expected recoveries.  We adopted these new standards as of January 1, 2020. The adoption of these new standards did not have a material effect on our consolidated financial statements.

There have been no other material changes in or additions to the recently issued accounting standards as previously reported in Note 1 to our Consolidated Financial Statements in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2019 that affect or may affect our current financial statements.

2. 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, 2020 and 2019 (in thousands):

	Three Months Ended June 30, 2020
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	1,023,970	$	153,255	$	6,834	$	1,184,059
Software		286,202		186,781		15,891		488,874
Services		228,975		51,981		14,846		295,802
	$	1,539,147	$	392,017	$	37,571	$	1,968,735
Major Client Groups
Large Enterprise / Corporate	$	1,023,562	$	273,147	$	16,102	$	1,312,811
Small and Medium-Sized Businesses		332,384		13,178		15,562		361,124
Public Sector		183,201		105,692		5,907		294,800
	$	1,539,147	$	392,017	$	37,571	$	1,968,735
Revenue Recognition based on acting as    Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	1,451,922	$	359,206	$	31,063	$	1,842,191
Net revenue recognition (Agent)		87,225		32,811		6,508		126,544
	$	1,539,147	$	392,017	$	37,571	$	1,968,735

7

INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

	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
Small and Medium-Sized Businesses		177,515		19,818		19,459		216,792
Public Sector		156,381		78,343		15,096		249,820
	$	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

	Six Months Ended June 30, 2020
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	2,152,456	$	328,224	$	14,580	$	2,495,260
Software		591,365		387,863		46,761		1,025,989
Services		469,707		94,816		27,014		591,537
	$	3,213,528	$	810,903	$	88,355	$	4,112,786
Major Client Groups
Large Enterprise / Corporate	$	2,184,310	$	565,435	$	29,127	$	2,778,872
Small and Medium-Sized Businesses		718,460		30,920		29,216		778,596
Public Sector		310,758		214,548		30,012		555,318
	$	3,213,528	$	810,903	$	88,355	$	4,112,786
Revenue Recognition based on acting as    Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	3,052,436	$	751,465	$	76,817	$	3,880,718
Net revenue recognition (Agent)		161,092		59,438		11,538		232,068
	$	3,213,528	$	810,903	$	88,355	$	4,112,786

8

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
Small and Medium-Sized Businesses		345,998		40,320		32,848		419,166
Public Sector		253,498		187,409		41,250		482,157
	$	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

The following table provides information about receivables and contract liabilities as of June 30, 2020 and December 31, 2019 (in thousands):

	June 30,		December 31,
	2020		2019
Current receivables, which are included in “Accounts    receivable, net”	$	2,677,564	$	2,511,383
Non-current receivables, which are included in “Other assets”		107,386		154,417
Contract liabilities, which are included in “Accrued expenses    and other current liabilities” and “Other liabilities”		91,483		84,814

Changes in the contract liabilities balances during the six months ended June 30, 2020 are as follows (in thousands):

	Increase (Decrease)
	Contract
	Liabilities
Balances at December 31, 2019	$	84,814
Reclassification of the beginning contract liabilities    to revenue, as the result of performance obligations satisfied		(32,682	)
Cash received in advance and not recognized as revenue		39,351
Balances at June 30, 2020	$	91,483

The following table includes estimated net sales related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2020 that are expected to be recognized in the future (in thousands):

	Services
Remainder of 2020	$	81,917
2021		50,477
2022		22,765
2023 and thereafter		14,398
Total remaining performance obligations	$	169,557

9

INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

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 eight months.  Additionally, for our time and material services contracts, whereby we have the right to consideration from a client in an amount that corresponds directly with the value to the client of our performance completed to date, we recognized revenue in the amount to which we have a right to invoice as of June 30, 2020 and do not disclose information about related remaining performance obligations in the table above.  Our time and material contracts have an average expected duration of 20 months.

The majority of our backlog historically has been and continues to be open 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.

3. Assets Held for Sale

During 2019, we completed the purchase of real estate in Chandler, Arizona that we intend to use as our global corporate headquarters.  During the fourth quarter of 2019, properties in Tempe, Arizona, El Segundo and Santa Monica, California and Woodbridge, Illinois were classified as held for sale, for approximately $68,916,000, which is included in other current assets in the accompanying consolidated balance sheet as of June 30, 2020, as we look to sell current properties in preparation for our move to Chandler.  During the first quarter of 2020, we completed the sale of our property in Irvine, California for approximately $14,218,000.    

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,
	2020		2019		2020		2019
Numerator:
Net earnings	$	46,385	$	49,998	$	80,346	$	89,325
Denominator:
Weighted average shares used to    compute basic EPS		35,060		35,772		35,147		35,691
Dilutive potential common shares due to    dilutive RSUs, net of tax effect		200		339		306		416
Weighted average shares used to compute    diluted EPS		35,260		36,111		35,453		36,107
Net earnings per share:
Basic	$	1.32	$	1.40	$	2.29	$	2.50
Diluted	$	1.32	$	1.38	$	2.27	$	2.47

For the three and six months ended June 30, 2020, 400,000 and 243,000, 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 1,000 and 83,000 anti-dilutive RSUs for the three and six months ended June 30, 2019, respectively.  

10

INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

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

Debt

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

	June 30, 2020			December 31, 2019
ABL revolving credit facility	$	144,000		$	570,706
Convertible senior notes due 2025		290,551			284,836
Finance leases and other financing obligations		2,913			3,822
Total		437,464			859,364
Less: current portion of long-term debt		(1,509	)		(1,691	)
Long-term debt	$	435,955		$	857,673

On August 30, 2019, we entered into a credit agreement (the “credit agreement”) providing for a senior secured revolving credit facility (the “ABL facility”), which has an aggregate U.S. dollar equivalent maximum borrowing amount of $1,200,000,000, including a maximum borrowing capacity that could be used for borrowing in certain foreign currencies of $150,000,000.  While the ABL facility has a stated maximum amount, the actual availability under the ABL facility is limited by specified percentages of eligible accounts receivable and certain eligible inventory, in each case as set forth in the credit agreement.  From time to time and at our option, we may request to increase the aggregate amount available for borrowing under the ABL facility by up to an aggregate of the U.S. dollar equivalent of $500,000,000, subject to customary conditions, including receipt of commitments from lenders.  The ABL facility is guaranteed by certain of our material subsidiaries and is secured by a lien on certain of our assets and certain of each other borrower’s and each guarantor’s assets.  The interest rates applicable to borrowings under the ABL facility are based on the average aggregate excess availability under the ABL facility as set forth on a pricing grid in the credit agreement.  The ABL facility matures on August 30, 2024.  As of June 30, 2020, eligible accounts receivable and inventory were sufficient to permit access to the full $1,200,000,000 facility amount, of which $144,000,000 was outstanding.  

The ABL facility contains customary affirmative and negative covenants and events of default.  If a default occurs (subject to customary grace periods and materiality thresholds) under the credit agreement, certain actions may be taken, including, but not limited to, possible termination of commitments and required payment of all outstanding principal amounts plus accrued interest and fees payable under the credit agreement.  

Convertible Senior Notes due 2025

On August 15, 2019, we issued $300,000,000 aggregate principal amount of convertible senior notes (the “notes”) that mature on February 15, 2025. On August 23, 2019, we issued an additional $50,000,000 aggregate principal amount of the notes pursuant to the exercise in full by the initial purchasers of the notes of their option to purchase additional notes.  The notes bear interest at an annual rate of 0.75% payable semiannually, in arrears, on February 15^th and August 15^th of each year. The notes are general unsecured obligations of Insight and are guaranteed on a senior unsecured basis by Insight Direct USA, Inc., a wholly owned subsidiary of Insight.  

Holders of the notes may convert their notes at their option at any time prior to the close of business on the business day immediately preceding June 15, 2024, under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on December 31, 2019 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30

11

INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price of our common stock per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day; (3) if we call any or all of the notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events. On or after June 15, 2024 until the close of business on the second scheduled trading day immediately preceding the maturity date, the holders may convert their notes at any time, regardless of the foregoing circumstances.

Upon conversion, we will pay or deliver cash, shares of our common stock or a combination of the two, at our discretion. The conversion rate will initially be 14.6376 shares of common stock per $1,000 principal amount of notes (equivalent to an initial conversion price of approximately $68.32 per share of common stock). The conversion rate is subject to change in certain circumstances and will not be adjusted for any accrued and unpaid interest. In addition, following certain events that occur prior to the maturity date or following our issuance of a notice of redemption, the conversion rate is subject to an increase for a holder who elects to convert their notes in connection with those events or during the related redemption period in certain circumstances.

If we undergo a fundamental change, the holders may require us to repurchase for cash all or any portion of their notes at a fundamental change repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. As of June 30, 2020, none of the criteria for a fundamental change or a conversion rate adjustment had been met.

The maximum number of shares issuable upon conversion, including the effect of a fundamental change and subject to other conversion rate adjustments, would be 6,788,208.

We may redeem for cash all or any portion of the notes, at our option, on or after August 20, 2022 if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption at a redemption price equal to 100% of the then outstanding principal amount of the notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the notes.  

The notes are subject to certain customary events of default and acceleration clauses.  As of June 30, 2020, no such events have occurred.

The notes consist of the following balances reported within the consolidated balance sheet as of June 30, 2020 (in thousands):

Liability:
Principal	$	350,000
Less: debt discount and issuance costs, net of accumulated accretion		(59,449	)
Net carrying amount	$	290,551
Equity, net of deferred tax	$	44,731

12

INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

The remaining life of the debt discount and issuance cost accretion is approximately 4.625 years.  The effective interest rate on the liability component of the notes is 4.325%.

Interest expense resulting from the notes reported within the consolidated statement of operations for the three and six months ended June 30, 2020 is made up of contractual coupon interest, amortization of debt discount and amortization of debt issuance costs.

Convertible Note Hedge and Warrant Transaction

In connection with the issuance of the notes, we entered into certain convertible note hedge and warrant transactions (the “Call Spread Transactions”) with respect to the Company’s common stock.

The convertible note hedge consists of an option to purchase up to 5,123,160 common stock shares at a price of $68.32 per share. The hedge expires on February 15, 2025 and can only be concurrently executed upon the conversion of the notes. We paid approximately $66,325,000 for the convertible note hedge transaction.

Additionally, we sold warrants to purchase 5,123,160 shares of common stock at a price of $103.12 per share. The warrants expire on May 15, 2025 and can only be exercised at maturity.  The Company received aggregate proceeds of approximately $34,440,000 for the sale of the warrants.

The Call Spread Transactions have no effect on the terms of the notes and reduce potential dilution by effectively increasing the initial conversion price of the notes to $103.12 per share of the Company’s common stock.

Inventory Financing Facilities

During the first quarter of 2020, we increased our maximum availability for vendor purchases under our unsecured inventory financing facility with MUFG Bank Ltd (“MUFG”) from $200,000,000 to $240,000,000.  We also have an unsecured inventory financing facility with Wells Fargo Capital Finance, LLC (“Wells Fargo”) with an aggregate availability for vendor purchases under the facility of $250,000,000.  As of June 30, 2020, our combined inventory financing facilities had a total maximum capacity of $490,000,000, of which $261,133,000 was outstanding.  The inventory financing facilities will remain in effect until they are terminated by any of the parties.  If balances are not paid within stated vendor terms, they will accrue interest at prime plus 2.00% or prime plus 1.25% with respect to the MUFG facility and Wells Fargo facility, respectively.  Amounts outstanding under these facilities are classified separately as accounts payable – inventory financing facilities in the accompanying consolidated balance sheets and within cash flows from financing activities in the accompanying consolidated statements of cash flows.  On July 6, 2020, we entered into a new unsecured inventory financing facility with a subsidiary of PNC Bank, N.A. (“PNC”), which replaced the Wells Fargo facility.  See Note 13 for additional information regarding our PNC facility.

Finance Lease and Other Financing Obligations

From time to time, we enter into finance leases and other financing agreements with financial intermediaries to facilitate the purchase of products from certain vendors.     

The current and long-term portions of our finance leases and other financing obligations are included in the current and long-term portions of long-term debt in the table above and in our consolidated balance sheets as of June 30, 2020 and December 31, 2019.  See Note 6 for additional information.    

13

INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

6. Leases

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

Certain lease agreements include one or more options to renew, with renewal terms that can extend the lease term from one to five years 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.

The following table provides information about the financial statement classification of our lease balances reported within the consolidated balance sheets as of June 30, 2020 and December 31, 2019 (in thousands):

Leases	Classification	June 30, 2020		December 31, 2019
Assets
Operating lease assets	Other assets	$	85,718	$	74,684
Finance lease assets	Property and equipment(a)		2,649		3,297
Total lease assets		$	88,367	$	77,981
Liabilities
Current
Operating lease liabilities	Accrued expenses and other current liabilities	$	20,685	$	19,648
Finance lease liabilities	Current portion of long-term debt		1,509		1,691
Non-current
Operating lease liabilities	Other liabilities		71,159		60,285
Finance lease liabilities	Long-term debt		1,404		2,131
Total lease liabilities		$	94,757	$	83,755

(a) Recorded net of accumulated amortization of $1,509,000 and $861,000 as of June 30, 2020 and December 31, 2019, respectively.

The following table provides information about the financial statement classification of our lease expenses reported within the consolidated statement of operations for the three and six months ended June 30, 2020 (in thousands):

Lease cost	Classification	Three Months Ended June 30, 2020		Six Months Ended June 30, 2020
Operating lease cost (a) (b)	Selling and administrative expenses	$	6,438	$	12,952
Finance lease cost
Amortization of leased      assets	Selling and administrative expenses		324		648
Interest on lease liabilities	Interest expense, net		28		60
Total lease cost		$	6,790	$	13,660

14

INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

(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, 2020 are as follows (in thousands):

	Operating leases			Finance leases			Total
Remainder of 2020	$	12,058		$	827		$	12,885
2021		21,736			1,077			22,813
2022		18,802			645			19,447
2023		13,209			449			13,658
2024		8,270			45			8,315
After 2024		28,769			—			28,769
Total lease payments		102,844			3,043			105,887
Less:  Interest		(11,000	)		(130	)		(11,130	)
Present value of lease liabilities	$	91,844		$	2,913		$	94,757

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, 2020:

	June 30, 2020		June 30, 2019
Weighted average remaining lease term (years)
Operating leases		6.23		6.56
Finance leases		2.58		1.94
Weighted average discount rate (%)
Operating leases		3.45		3.86
Finance leases		3.54		4.84

The following table provides other information related to leases for the three and six months ended June 30, 2020 (in thousands):

	Three Months Ended June 30, 2020		Six Months Ended June 30, 2020
Cash paid for amounts included in the measurement of lease    liabilities:
Operating cash flows from operating leases	$	6,502	$	13,084
Leased assets obtained in exchange for new operating lease liabilities	$	1,307	$	22,601

15

INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

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,
	2020		2019		2020		2019
North America	$	1,995	$	2,740	$	5,385	$	5,863
EMEA	$	704		814		1,582		1,684
APAC	$	133		128		274		250
Total Consolidated	$	2,832	$	3,682	$	7,241	$	7,797

As of June 30, 2020, total compensation cost related to nonvested RSUs not yet recognized is $28,105,491, which is expected to be recognized over the next 1.43 years on a weighted-average basis.  

The following table summarizes our RSU activity during the six months ended June 30, 2020:

	Number			Weighted Average Grant Date Fair Value		Fair Value
Nonvested at January 1, 2020		923,400		$	45.58
Granted(a)		321,550			57.78
Vested, including shares withheld to cover taxes		(342,202	)		41.85	$	14,321,154	(b)
Forfeited		(68,561	)		57.74
Nonvested at June 30, 2020 (a)		834,187			51.31	$	41,042,000	(c)

^(a) Includes 92,315 RSUs subject to remaining performance conditions.  The number of RSUs subject to performance conditions are based on the Company achieving 100% of its 2020 targeted financial results.  We currently estimate that these RSUs will be awarded at 0% this annual period based on not meeting the 2020 performance targets.  

^(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 $49.20 as of June 30, 2020, which would have been received by holders of RSUs had all such holders sold their underlying shares on that date.

8. Income Taxes

Our effective tax rate for the three and six months ended June 30, 2020 was 26.2% and 23.8%, respectively.  For the three months ended June 30, 2020, 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 the recognition of tax benefits related to research and development activities.  For the six months ended June 30, 2020, 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 the remeasurement of acquired net operating losses under the CARES Act and the recognition of tax benefits related to research and development activities.

16

INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

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 excess tax benefits on the settlement of employee share-based compensation and 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.

As of June 30, 2020, and December 31, 2019, we had approximately $10,682,000 and $9,736,000, respectively, of unrecognized tax benefits.  Of these amounts, approximately $601,000 and $442,000, respectively, related to accrued interest.  In the future, if recognized, the liability associated with uncertain tax positions would affect our effective tax rate.  We do not believe there will be any changes over the next 12 months that would have a material effect on our effective tax rate.  

Several of our subsidiaries are currently under audit for tax years 2013 through 2018.  Although the timing of the resolutions and/or closures of audits is highly uncertain, it is reasonably possible that the examination phase of these audits may be concluded within the next 12 months, which could increase or decrease the balance of our gross unrecognized tax benefits.  However, based on the status of the various examinations in multiple jurisdictions, an estimate of the range of reasonably possible outcomes cannot be made at this time, but the estimated effect on our income tax expense and net earnings is not expected to be significant.  

9. Share Repurchase Program

On February 26, 2020, our Board of Directors authorized the repurchase of up to $50,000,000 of our common stock.  Our share repurchases may be made on the open market, subject to Rule 10b-18 or in privately negotiated transactions, through block trades, through 10b5-1 plans or otherwise, at management’s discretion.  The amount of shares purchased and the timing of the purchases will be based on market conditions, working capital requirements, general business conditions and other factors.  We intend to retire the repurchased shares. 

During the six months ended June 30, 2020, we repurchased 444,813 shares of our common stock on the open market at a total cost of approximately $24,999,996 (an average price of $56.20 per share).  All shares repurchased were retired.  During the comparative six months ended June 30, 2019, we did not repurchase any shares of our common stock.        

10. Commitments and Contingencies

Contractual

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

Management believes that payments, if any, related to these performance bonds are not probable at June 30, 2020.  Accordingly, we have not accrued any liabilities related to such performance bonds in our consolidated financial statements.

17

INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

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, 2020.  Accordingly, we have not accrued any liabilities related to such indemnifications in our consolidated financial statements.

We have entered into separate indemnification agreements with certain of our executive officers and with each of our directors.  These agreements require us, among other requirements, to indemnify such officers and directors against expenses (including attorneys’ fees), judgments and settlements incurred by such individual in connection with any action arising out of such individual’s status or service as our executive officer or director (subject to exceptions such as where the individual failed to act in good faith or in a manner the individual reasonably believed to be in, or not opposed to, the best interests of the Company) and to advance expenses incurred by such individual with respect to which such individual may be entitled to indemnification by us.  There are no pending legal proceedings that involve the indemnification of any of the Company’s directors or officers.

Contingencies Related to Third-Party Review

From time to time, we are subject to potential claims and assessments from third parties.  We are also subject to various governmental, client and partner audits.  We continually assess whether or not such claims have merit and warrant accrual.  Where appropriate, we accrue estimates of anticipated liabilities in the consolidated financial statements.  Such estimates are subject to change and may affect our results of operations and our cash flows.

Legal Proceedings

From time to time, we are party to various legal proceedings incidental to the business, including preference payment claims asserted in client bankruptcy proceedings, indemnification claims, claims of alleged infringement of patents, trademarks, copyrights and other intellectual property rights, employment claims, claims of alleged non-compliance with contract provisions and claims related to alleged violations of laws and regulations.  We regularly evaluate the status of the legal proceedings in which we are involved to assess whether a loss is probable or there is a

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

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

In connection with the acquisition of PCM, the Company has effectively assumed responsibility for PCM litigation matters, including various disputes related to PCM’s acquisition of certain assets of En Pointe Technologies in 2015.  The seller of En Pointe Technologies and related entities providing various post-closing support functions to PCM have asserted claims regarding the sufficiency of earnout payments paid by PCM under the asset purchase agreement and the unwinding of the support functions post-closing.  PCM has rejected and vigorously responded to those claims and is pursuing various counterclaims.  The disputes are being heard by multiple courts and arbitrators in several different jurisdictions including California, Delaware and Pakistan.  The Company cannot determine with certainty the costs or outcome of these matters.  However, the Company is not involved in any pending or threatened legal proceedings, including the PCM litigation matters, that it believes would reasonably be expected to have a material adverse effect on its business, financial condition or results of operations.

11.Segment Information

We operate in three reportable geographic operating segments: North America; EMEA; and APAC with PCM being included in our North America and EMEA segments for the three and six months ended June 30, 2020.  Our offerings in North America and certain countries in EMEA and APAC include IT hardware, software and services.  Our offerings in the remainder of our EMEA and APAC segments are largely software and certain software-related services.

The following table summarizes net sales by offering for North America, EMEA and APAC for the three and six months ended June 30, 2020 and 2019 (in thousands):

	North America				EMEA				APAC
	Three Months Ended June 30,				Three Months Ended June 30,				Three Months Ended June 30,
Sales Mix	2020		2019		2020		2019		2020		2019
Hardware	$	1,023,970	$	935,792	$	153,255	$	142,951	$	6,834	$	9,979
Software		286,202		289,874		186,781		190,086		15,891		25,653
Services		228,975		179,841		51,981		46,137		14,846		15,708
	$	1,539,147	$	1,405,507	$	392,017	$	379,174	$	37,571	$	51,340
	North America				EMEA				APAC
	Six Months Ended June 30,				Six Months Ended June 30,				Six Months Ended June 30,
Sales Mix	2020		2019		2020		2019		2020		2019
Hardware	$	2,152,456	$	1,684,129	$	328,224	$	314,476	$	14,580	$	16,497
Software		591,365		611,953		387,863		373,234		46,761		60,718
Services		469,707		351,866		94,816		81,639		27,014		26,975
	$	3,213,528	$	2,647,948	$	810,903	$	769,349	$	88,355	$	104,190

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

All significant intercompany transactions are eliminated upon consolidation, and there are no differences between the accounting policies used to measure profit and loss for our segments or on a consolidated basis.  Net sales are defined as net sales to external clients.  None of our clients exceeded ten percent of consolidated net sales for the three and six months ended June 30, 2020 or 2019.

A portion of our operating segments’ selling and administrative expenses arise from shared services and infrastructure that we have historically provided to them in order to realize economies of scale and to use resources efficiently.  These expenses, collectively identified as corporate charges, include senior management expenses, internal audit, legal, tax, insurance services, treasury and other corporate infrastructure expenses.  Charges are allocated to our operating segments, and the allocations have been determined on a basis that we consider to be a reasonable reflection of the utilization of services provided to or benefits received by the operating segments.  

The following tables present our results of operations by reportable operating segment for the periods indicated (in thousands):

	Three Months Ended June 30, 2020
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	1,310,172	$	340,036	$	22,725	$	1,672,933
Services		228,975		51,981		14,846		295,802
Total net sales		1,539,147		392,017		37,571		1,968,735
Costs of goods sold:
Products		1,187,178		310,279		20,490		1,517,947
Services		107,073		13,558		5,768		126,399
Total costs of goods sold		1,294,251		323,837		26,258		1,644,346
Gross profit		244,896		68,180		11,313		324,389
Operating expenses:
Selling and administrative expenses		187,313		48,177		7,090		242,580
Severance and restructuring expenses		4,904		2,093		13		7,010
Acquisition and integration related expenses		611		-		—		611
Earnings from operations	$	52,068	$	17,910	$	4,210	$	74,188

	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 and integration related expenses		3,163		-		—		3,163
Earnings from operations	$	50,918	$	16,598	$	4,601	$	72,117

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

	Six Months Ended June 30, 2020
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	2,743,821	$	716,087	$	61,341	$	3,521,249
Services		469,707		94,816		27,014		591,537
Total net sales		3,213,528		810,903		88,355		4,112,786
Costs of goods sold:
Products		2,475,375		656,028		56,782		3,188,185
Services		236,329		27,921		10,626		274,876
Total costs of goods sold		2,711,704		683,949		67,408		3,463,061
Gross profit		501,824		126,954		20,947		649,725
Operating expenses:
Selling and administrative expenses		398,516		98,421		14,506		511,443
Severance and restructuring expenses		7,026		2,099		29		9,154
Acquisition and integration related expenses		1,873		204		—		2,077
Earnings from operations	$	94,409	$	26,230	$	6,412	$	127,051

	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

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

	June 30, 2020			December 31, 2019
North America	$	4,414,439		$	3,814,408
EMEA		911,796			699,856
APAC		158,428			123,349
Corporate assets and intercompany eliminations, net		(1,143,185	)		(459,434	)
Total assets	$	4,341,478		$	4,178,179

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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,
	2020		2019		2020		2019
Depreciation and amortization of property and    equipment:
North America	$	5,826	$	3,786	$	11,652	$	7,743
EMEA		1,249		1,012		2,577		1,967
APAC		137		140		272		272
		7,212		4,938		14,501		9,982
Amortization of intangible assets:
North America		9,371		3,636		18,864		7,272
EMEA		534		69		1,040		138
APAC		109		116		218		234
		10,014		3,821		20,122		7,644
Total	$	17,226	$	8,759	$	34,623	$	17,626

12.Acquisitions

PCM

On August 30, 2019, we completed our acquisition of PCM, acquiring 100 percent of the issued and outstanding shares of PCM for a cash purchase price of $745,562,000, which included cash and cash equivalents acquired of $84,637,000 and the payment of PCM’s outstanding debt. PCM is a provider of multi-vendor technology offerings, including hardware, software and services to small, mid-sized and corporate/enterprise commercial clients, state, local and federal governments and educational institutions across the United States, Canada and the United Kingdom.  Based in El Segundo, California, PCM had 40 office locations globally and more than 4,000 teammates.  We believe that this acquisition allows us to help existing PCM clients in positioning their businesses for future growth, transforming and securing their data platforms, creating modern and mobile experiences for their workforce and optimizing the procurement of technology.  The addition of PCM complements our supply chain optimization solution offering, adding scale and clients in the mid-market and corporate space primarily in North America.

The following table summarizes the purchase price and the estimated fair value of the assets acquired and liabilities assumed at the date of acquisition (in thousands):  

Purchase price net of cash and cash equivalents acquired				$	660,925
Fair value of net assets acquired:
Current assets	$	531,941
Identifiable intangible assets - see description below		191,370
Property and equipment		91,213
Other assets		32,699
Current liabilities		(367,712	)
Long-term liabilities, including deferred taxes		(64,915	)
Total fair value of net assets acquired					414,596
Excess purchase price over fair value of net assets acquired ("goodwill")				$	246,329

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Under the acquisition method of accounting, the total purchase price as shown in the table above was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values.  The excess of the purchase price over fair value of net assets acquired was recorded as goodwill.  In the fourth quarter of 2019, an adjustment of $56,700,000 was recorded to goodwill primarily due to a change in the customer relationships valuation based on updated information received for key inputs as well as an associated change in deferred taxes.  

The fair values of current assets and liabilities are based upon their historical costs on the date of acquisition due to their short-term nature.  The estimated fair values of the majority of property and equipment, excluding acquired real estate, are also based upon historical costs net of depreciation, as they approximated fair value.  Certain long-term assets, including PCM’s IT systems, were written down to the estimated fair value.  

The preliminary estimated fair value of net assets acquired was approximately $414,596,000, including $191,370,000 of identified intangible assets, consisting primarily of customer relationships of $178,900,000.  The fair value of the customer relationships were determined using the multiple-period excess earnings method.  The identifiable intangible assets resulting from the acquisition are amortized using the straight-line method over the following estimated useful lives: customer relationships – 10-12 years; trade names – 1 year; non-compete agreements – 2-3 years.

Goodwill of $246,329,000, which was recorded in our North America and EMEA operating segments, represents the excess of the purchase price over the estimated fair value assigned to tangible and identifiable intangible assets acquired and liabilities assumed from PCM.  The goodwill is not amortized and will be tested for impairment annually in the fourth quarter of our fiscal year.  The addition of the PCM technical employees to our team and the opportunity to grow our business are the primary factors making up the goodwill recognized as part of the transaction.  None of the goodwill is tax deductible.  

The purchase price allocation is preliminary and was allocated using information currently available.  Further information related to legal accruals, taxes and other statutory assessments may lead to an adjustment of the purchase price allocation.  

We have consolidated the results of operations for PCM since its acquisition on August 30, 2019.  

The following table reports pro forma information as if the acquisition of PCM had been completed at the beginning of the earliest period presented (in thousands, except per share amounts):

		Three Months Ended June 30,		Six Months Ended June 30,
		2019		2019
Net sales	As reported	$	1,836,021	$	3,521,487
	Pro forma	$	2,383,698	$	4,602,472
Net earnings	As reported	$	49,998	$	89,325
	Pro forma	$	55,349	$	92,406
Diluted earnings per share	As reported	$	1.38	$	2.47
	Pro forma	$	1.53	$	2.56

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Changes in Goodwill and Intangible Assets

Other than the goodwill and intangible assets recorded in conjunction with the acquisitions of vNext and PCM, the only other change in consolidated goodwill and intangible assets as of June 30, 2020 compared to the balance as of December 31, 2019 resulted from foreign currency translation adjustments associated with the balances in our North America, EMEA and APAC operating segments.

13.Subsequent Events

On July 6, 2020, we entered into an unsecured inventory financing facility with a maximum borrowing capacity of $250,000,000 with a subsidiary of PNC Bank, N.A.  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 LIBOR plus 4.50%.  Amounts outstanding under this facility will be classified as accounts payable – inventory financing facilities in the accompanying balance sheets.  This new facility replaced the unsecured inventory financing facility with Wells Fargo.

On July 31, 2020, we entered into the First Amendment to Credit Agreement (the “Amendment”) to the ABL facility.  The Amendment, among other things, amends the credit agreement to provide additional flexibility for certain asset sale transactions by the Company and its subsidiaries.

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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, 2020:

• Net sales of $1.97 billion increased 7% compared to the three months ended June 30, 2019, primarily due to the addition of PCM. Without the addition of PCM, net sales in the core business would have been down compared to the prior year quarter as a result of the negative impact of COVID-19.  The overall increase in net sales reflects an increase in hardware and services net sales, which was partially offset by a decrease in software net sales.  Excluding the effects of fluctuating foreign currency exchange rates, net sales increased 8% compared to the second quarter of 2019.

• Gross profit of $324.4 million increased 18% compared to the three months ended June 30, 2019, up 19% year over year, excluding the effects of fluctuating foreign currency exchange rates.

• Gross margin improved approximately 150 basis points to 16.5% of net sales in the three months ended June 30, 2020. This increase reflects an increase in the mix of higher margin services net sales and an increase in margins on hardware net sales compared to the same period in the prior year.

• Earnings from operations increased 3% year over year to $74.2 million in the second quarter of 2020 compared to $72.1 million in the second quarter of 2019, primarily due to increased gross profit; however, the increase was partially offset by increased personnel costs including teammate benefits and variable compensation due to increased headcount primarily as a result of PCM, increased amortization of intangible assets related to the PCM acquisition and increased severance and restructuring costs.  Excluding the effects of fluctuating foreign currency exchange rates, earnings from operations increased 4% year over year.

• Net earnings and diluted earnings per share were $46.4 million and $1.32, respectively, for the second quarter of 2020.  This compares to net earnings of $50.0 million and diluted earnings per share of $1.38 for the second quarter of 2019.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (continued)

Recent Developments – Impact of COVID-19 to our Business

In late 2019, there was an outbreak of a new strain of coronavirus (“COVID-19”), which has since spread globally.  On March 11, 2020, the World Health Organization declared COVID-19 a pandemic.  In an effort to protect the health and safety of our teammates, we took proactive action to adopt social distancing policies at our locations globally, including working from home where possible, limiting the number of teammates attending in-person meetings, reducing the number of people in our locations at any one time, and suspending teammate travel. Governments around the world have also enacted various measures, including orders to close all businesses not deemed “essential,” isolate residents to their homes or places of residence, and practice social distancing when engaging in essential activities.  These measures taken by the Company continued to be in place for the duration of the second quarter of 2020 and remain in place to date.

The COVID-19 pandemic has negatively impacted the global economy, disrupted global supply chains and workforce participation, and initially created significant volatility and disruption of financial markets.  We observed a pronounced impact of COVID-19 on our second quarter financial results when compared to internal budgets, and anticipate demand for our products and services will continue to be down in the third quarter as clients continue to evaluate the impact of COVID-19 on their businesses, their profitability and their liquidity. We continued to experience a decline in booking trends year over year in July 2020 and expect this to continue into the third quarter of 2020. In the short run, we have taken steps to accelerate our integration plans with PCM and to reduce discretionary operating expenditures, such as certain teammate benefits and variable compensation and travel related expenditures.  We have utilized various partner and government incentives available to us to help offset some of these business impacts.  We believe that we have a strong balance sheet and healthy liquidity position, including amounts available under our ABL facility with current capacity of up to $1.2 billion, of which approximately $144.0 million was outstanding at June 30, 2020.

The ultimate extent of the impact of the COVID-19 pandemic on our business operations, financial performance and results of operations, including our ability to execute our business strategies and initiatives in the expected time frame, is currently unknown and will depend on future developments, which are highly uncertain, continuously evolving and cannot be predicted.  This includes, but is not limited to, the duration and spread of the COVID-19 pandemic, its severity, the actions taken to contain the virus or treat its impact, such as restrictions on travel and transportation, and how quickly and to what extent normal economic and operating conditions can resume.

We will continue to actively monitor the situation and anticipate taking further actions as may be required by government authorities or that we determine are in the best interests of our teammates, clients and partners. It is not clear what the potential effects of any such alterations or modifications may have on our business, including the effects on our clients, teammates, and prospects, or on our financial results for the remainder of 2020.

Accordingly, our current results and financial condition discussed herein may not be indicative of future operating results and trends.  See “Risk Factors” in Part II, Item 1A of this report for additional risks we face due to the COVID-19 pandemic.

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

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (continued)

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.

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, 2019.  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, 2019.  

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (continued)

Results of Operations

The COVID-19 pandemic has negatively impacted the global economy and has disrupted global supply chains and workforce participation.  We observed a pronounced impact on our second quarter financial results and believe the ultimate extent of the impact of the COVID-19 pandemic on our future business operations, financial performance and results of operations, including our ability to execute our business strategies and initiatives in the expected time frame, is currently unknown and will depend on future developments, which are highly uncertain, continuously evolving and cannot be predicted.

The following table sets forth certain financial data as a percentage of net sales for the three months ended June 30, 2020 and 2019:

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Net sales		100.0	%		100.0	%		100.0	%		100.0	%
Costs of goods sold		83.5			85.0			84.2			85.1
Gross profit		16.5			15.0			15.8			14.9
Selling and administrative expenses		12.3			10.9			12.4			11.1
Severance and restructuring expenses and acquisition and integration related expenses		0.4			0.2			0.3			0.1
Earnings from operations		3.8			3.9			3.1			3.7
Non-operating expense, net		0.6			0.3			0.5			0.3
Earnings before income taxes		3.2			3.6			2.6			3.4
Income tax expense		0.8			0.9			0.6			0.8
Net earnings		2.4	%		2.7	%		2.0	%		2.6	%

We generally 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 in the related product or services sales being incentivized by the partner.  Incentives from our largest partners are 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.   

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (continued)

Net Sales.  Net sales for the three months ended June 30, 2020 increased 7% year over year to $1.97 billion compared to the three months ended June 30, 2019.  Without the addition of PCM to our core business, net sales for the second quarter of 2020 would have been down as a result of the negative impact of COVID-19.  We expect this negative trend in net sales will continue into the third quarter of 2020, when compared to prior year.  Net sales for the six months ended June 30, 2020 increased 17% year over year to $4.11 billion compared to the six months ended June 30, 2019.  Our net sales by operating segment were as follows for the three and six months ended June 30, 2020 and 2019 (dollars in thousands):

	Three Months Ended June 30,				%			Six Months Ended June 30,				%
	2020		2019		Change			2020		2019		Change
North America	$	1,539,147	$	1,405,507		10	%	$	3,213,528	$	2,647,948		21	%
EMEA		392,017		379,174		3	%		810,903		769,349		5	%
APAC		37,571		51,340		(27	%)		88,355		104,190		(15	%)
Consolidated	$	1,968,735	$	1,836,021		7	%	$	4,112,786	$	3,521,487		17	%

Our net sales by offering category for North America for the three and six months ended June 30, 2020 and 2019 were as follows (dollars in thousands):

	Three Months Ended June 30,				%			Six Months Ended June 30,				%
Sales Mix	2020		2019		Change			2020		2019		Change
Hardware	$	1,023,970	$	935,792		9	%	$	2,152,456	$	1,684,129		28	%
Software		286,202		289,874		(1	%)		591,365		611,953		(3	%)
Services		228,975		179,841		27	%		469,707		351,866		33	%
	$	1,539,147	$	1,405,507		10	%	$	3,213,528	$	2,647,948		21	%

Net sales in North America increased 10%, or $133.6 million, for the three months ended June 30, 2020 compared to the three months ended June 30, 2019, primarily driven by the addition of PCM, partially offset by the negative impact of COVID-19 on demand for hardware and certain services. Net sales of hardware and services increased 9% and 27%, respectively, year over year, partially offset by a decrease of 1% in software net sales, year to year.  The net changes for the three months ended June 30, 2020 were the result of the following:

• The increase in hardware net sales was due to the addition of PCM, which was partially offset by lower volume of sales to large enterprise and corporate clients.  The decrease in volume of sales was largely due to decreased demand associated with client responses to COVID-19.

• The decrease in software net sales was primarily due to continued migration of software to the cloud, reported net in services net sales, which was partially offset by the addition of PCM.

• The increase in services net sales was primarily due to higher sales of Insight delivered services, the addition of PCM and an increase in net sales associated with cloud solution offerings.  These increases were partially offset by decreases in demand for certain services due to the impact of COVID-19.

Net sales in North America increased 21%, or $565.6 million, for the six months ended June 30, 2020 compared to the six months ended June 30, 2019, primarily driven by the addition of PCM, partially offset by the negative impact of COVID-19 on demand for hardware and certain services.  Net sales of hardware and services increased 28% and 33%, respectively, year over year, partially offset by a decrease of 3% in software net sales, year to year.  The net changes for the first half of 2020 were the result of the following:

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• The increase in hardware net sales was due to the addition of PCM and higher volume of sales to large enterprise and corporate clients.  The net increase in volume of sales was largely due to increases in the first quarter of 2020 due to increased demand for work-from-home and collaboration solutions as companies responded to shelter in place mandates offset by decreases in volume of sales in the second quarter associated with client responses to COVID-19.

• The decrease in software net sales was due to a significant transaction in the prior year with no comparable activity in the current year and continued migration of software to the cloud, which was partially offset by the addition of PCM.

• The increase in services net sales was primarily due to higher sales of Insight delivered services, the addition of PCM and an increase in net sales associated with cloud solution offerings.  These increases were partially offset by decreases in demand for certain services due to the impact of COVID-19.

Our net sales by offering category for EMEA for the three and six months ended June 30, 2020 and 2019 were as follows (dollars in thousands):  

	Three Months Ended June 30,				%			Six Months Ended June 30,				%
Sales Mix	2020		2019		Change			2020		2019		Change
Hardware	$	153,255	$	142,951		7	%	$	328,224	$	314,476		4	%
Software		186,781		190,086		(2	%)		387,863		373,234		4	%
Services		51,981		46,137		13	%		94,816		81,639		16	%
	$	392,017	$	379,174		3	%	$	810,903	$	769,349		5	%

Net sales in EMEA increased 3%, or $12.8 million, in the three months ended June 30, 2020 compared to the three months ended June 30, 2019.  Excluding the effects of fluctuating foreign currency exchange rates, net sales in EMEA increased 6%, year over year.  Net sales of hardware and services increased 7% and 13%, respectively, year over year.  Net sales of software declined 2% year to year.  The net changes for the three months ended June 30, 2020 were the result of the following:

• The increase in hardware net sales was due primarily to higher volume sales of devices to public sector clients.

• The decrease in software net sales was due to lower volume of sales to large enterprise clients and migration of software to the cloud.

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

Net sales in EMEA increased 5%, or $41.6 million, in the first half of 2020 compared to the first half of 2019. Excluding the effects of fluctuating foreign currency exchange rates, net sales in EMEA increased 8%, year over year. Net sales of hardware, software and services increased 4%, 4% and 16% year over year, respectively.  The net changes for the first half of 2020 were the result of the following:

• The increase in hardware net sales was due primarily to higher volume sales of devices to corporate and public sector clients.

• The increase in software net sales was due to higher volume of sales to large enterprise, corporate and public sector clients, partially offset by migration of software to the cloud.

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

Our net sales by offering category for APAC for the three and six months ended June 30, 2020 and 2019 were as follows (dollars in thousands):

	Three Months Ended June 30,				%			Six Months Ended June 30,				%
Sales Mix	2020		2019		Change			2020		2019		Change
Hardware	$	6,834	$	9,979		(32	%)	$	14,580	$	16,497		(12	%)
Software		15,891		25,653		(38	%)		46,761		60,718		(23	%)
Services		14,846		15,708		(5	%)		27,014		26,975		—
	$	37,571	$	51,340		(27	%)	$	88,355	$	104,190		(15	%)

Net sales in APAC decreased 27%, or $13.8 million, in the three months ended June 30, 2020 compared to the three months ended June 30, 2019. Excluding the effects of fluctuating foreign currency exchange rates, net sales in APAC decreased 23%, year to year. Net sales of hardware, software and services decreased by 32%, 38% and 5%, respectively, year to year.  The net changes for the three months ended June 30, 2020 were the result of the following:

• The decrease in hardware net sales was primarily the result of lower volume of sales due to decreased demand associated with client responses to COVID-19.

• The decrease in software net sales was primarily due to the loss of a significant public sector client and lower volume sales to large enterprise clients.

• The decrease in services net sales was primarily due to lower sales of Insight delivered services.  

Net sales in APAC decreased 15%, or $15.8 million, in the first half of 2020 compared to the first half of 2019. Excluding the effects of fluctuating foreign currency exchange rates, net sales in APAC decreased 10%, year over year.  Net sales of hardware and software decreased by 12% and 23%, respectively, year to year.  The net changes for the first half of 2020 were the result of the following:

• The decrease in hardware net sales was primarily the result of lower volume of sales due to decreased demand associated with client responses to COVID-19.

• The decrease in software net sales was primarily due to the loss of a significant public sector client and lower volume sales to large enterprise clients.

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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, 2020 and 2019:

	North America						EMEA						APAC
	Three Months Ended June 30,						Three Months Ended June 30,						Three Months Ended June 30,
Sales Mix	2020			2019			2020			2019			2020			2019
Hardware		66	%		67	%		39	%		38	%		18	%		19	%
Software		19	%		20	%		48	%		50	%		42	%		50	%
Services		15	%		13	%		13	%		12	%		40	%		31	%
		100	%		100	%		100	%		100	%		100	%		100	%
	North America						EMEA						APAC
	Six Months Ended June 30,						Six Months Ended June 30,						Six Months Ended June 30,
Sales Mix	2020			2019			2020			2019			2020			2019
Hardware		67	%		64	%		40	%		41	%		16	%		16	%
Software		18	%		23	%		48	%		48	%		53	%		58	%
Services		15	%		13	%		12	%		11	%		31	%		26	%
		100	%		100	%		100	%		100	%		100	%		100	%

Gross Profit.  Gross profit increased 18%, or $48.9 million, in the three months ended June 30, 2020, compared to the three months ended June 30, 2019, with gross margin increasing approximately 150 basis points to 16.5% for the three months ended June 30, 2020 compared to 15.0% for the three months ended June 30, 2019.  Gross profit increased 24%, or $125.8 million, in the six months ended June 30, 2020 compared to the six months ended June 30, 2019, with gross margin increasing approximately 90 basis points to 15.8% for the first half of 2020 compared to 14.9% for the first half of 2019.  

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, 2020 and 2019 (dollars in thousands):

	Three Months Ended June 30,										Six Months Ended June 30,
	2020		% of Net Sales			2019		% of Net Sales			2020		% of Net Sales			2019		% of Net Sales
North America	$	244,896		15.9	%	$	199,059		14.2	%	$	501,824		15.6	%	$	381,666		14.4	%
EMEA		68,180		17.4	%		64,450		17.0	%		126,954		15.7	%		121,433		15.8	%
APAC		11,313		30.1	%		11,940		23.3	%		20,947		23.7	%		20,822		20.0	%
Consolidated	$	324,389		16.5	%	$	275,449		15.0	%	$	649,725		15.8	%	$	523,921		14.9	%

North America’s gross profit for the three months ended June 30, 2020 increased $45.8 million, or 23%, compared to the three months ended June 30, 2019.  As a percentage of net sales, gross margin increased approximately 170 basis points to 15.9% for the second quarter of 2020.  The year over year improvement in gross margin was primarily attributable to the following:

• A net increase in product margin, which includes partner funding and freight, of 53 basis points and an increase in margin from services net sales of 122 basis points compared to the same period in the prior year.  

• The increase in margin from services net sales during the current quarter reflects an expansion in margin from agency sales including cloud solutions that are recorded net and from a higher volume of Insight delivered services at higher margins.

• The increase in product margin is primarily the result of a higher volume of hardware sales from the addition of PCM and sales of hardware for the core North America

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business at higher margins than in the same period in the prior year.  This increase was partially offset by a contraction in margin on software net sales.

North America’s gross profit for the six months ended June 30, 2020 increased $120.2 million, or 31%, compared to the six months ended June 30, 2019.  As a percentage of net sales, gross margin increased approximately 120 basis points to 15.6% for the first half of 2020.  The year over year improvement in gross margin was primarily attributable to the following:

• A net increase in product margin, which includes partner funding and freight, of 78 basis points and an increase in margin from services net sales, which contributed 42 basis points of the margin expansion.

• The increase in product margin is primarily the result of higher volume of hardware sales from the addition of PCM and sales of hardware for the core North America business at higher margins than in the same period in the prior year.  This increase was partially offset by a contraction in margin on software net sales.

• The increase in margin from services net sales during the first six months of 2020 resulted from a higher volume of Insight delivered services at higher margins and a higher volume of cloud solutions that are recorded net.

EMEA’s gross profit for the three months ended June 30, 2020 increased $3.7 million, or 6%, year over year (increasing 8% excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended June 30, 2019.  As a percentage of net sales, gross margin increased approximately 40 basis points, year over year.  The year over year net improvement in gross margin was primarily attributable to an increase in higher margin services net sales, which contributed 23 basis points of the margin expansion, together with a net increase in product margin, which includes partner funding and freight, of 17 basis points.

EMEA’s gross profit for the six months ended June 30, 2020 increased $5.5 million, or 5% (7% excluding the effects of fluctuating foreign currency exchange rates), compared to the first half of 2019.  As a percentage of net sales, gross margin decreased approximately 10 basis points, year to year.  The year to year decline in gross margin was primarily attributable to a net decrease in product margin, which includes partner funding and freight, of 23 basis points, partially offset by a net increase in services margin of 11 basis points.

APAC’s gross profit for the three months ended June 30, 2020 decreased $0.6 million, or 5%, compared to the three months ended June 30, 2019 (remaining flat when excluding fluctuating foreign currency exchange rates).  As a percentage of net sales, gross margin increased approximately 680 basis points, year over year.  The increase in gross margin in the second quarter of 2020 compared to the second quarter of 2019 was due to an increase in gross margin on services net sales, including cloud solutions and Insight delivered services, of 564 basis points and an increase in product margin, which includes partner funding and freight, of 120 basis points.

APAC’s gross profit for the first half of 2020 increased less than 1% compared to the first half of 2019 (increasing 6% excluding fluctuating foreign currency exchange rates).  As a percentage of net sales, gross margin increased approximately 370 basis points, year over year.  The increase in gross margin in the first six months of 2020 compared to the first six months of 2019 was primarily due to an increase in mix of cloud solutions recorded net and higher gross profits from Insight delivered services, partially offset by lower margins on software net sales.

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Operating Expenses.

Selling and Administrative Expenses. Selling and administrative expenses increased $43.1 million, or 22%, for the three months ended June 30, 2020 compared to the three months ended June 30, 2019.  Selling and administration expenses increased $120.9 million, or 31%, for the six months ended June 30, 2020 compared to the six months ended June 30, 2019.  Our selling and administrative expenses by major expense type for the three and six months ended June 30, 2020 and 2019 were as follows (dollars in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Personnel costs, including teammate benefits	$	184,644	$	157,926	$	386,459	$	308,417
Depreciation and amortization		16,519		8,759		33,916		17,626
Facility expenses		9,413		6,519		20,391		13,182
Travel and entertainment		1,343		6,600		8,508		12,846
Legal and professional fees		6,008		3,892		11,833		7,834
Marketing		2,621		2,957		6,082		5,279
Other		22,032		12,836		44,254		25,368
Total	$	242,580	$	199,489	$	511,443	$	390,552

Selling and administrative expenses increased approximately 140 basis points as a percentage of net sales in the second quarter of 2020 compared to the second quarter of 2019.  The overall net increase in selling and administrative expenses reflects a $26.7 million net increase in personnel costs, including teammate benefits expenses primarily due to increased headcount, reflecting the acquisition of PCM in August 2019.  There was also an increase in depreciation and amortization, facility and other expenses of $7.8 million, $2.9 million and $9.2 million, respectively, primarily as a result of PCM.  These increased costs were partially offset by decreases in travel and entertainment costs of $5.3 million reflecting cost control measures taken in response to COVID-19.

Selling and administrative expenses increased approximately 130 basis points as a percentage of net sales in the first half of 2020 compared to the first half of 2019.  The overall net increase in selling and administrative expenses reflects a $78.0 million increase in personnel costs, including teammate benefits expenses primarily due to increased headcount, including the acquisition of PCM.  There was also an increase in depreciation and amortization, facility, legal and professional and other expenses of $16.3 million, $7.2 million, $4.0 million and $18.9 million, respectively, primarily as a result of PCM.  These increased costs were partially offset by decreases in travel and entertainment costs of $4.3 million reflecting cost control measures taken in response to COVID-19.

Severance and Restructuring Expenses.  During the three months ended June 30, 2020, we recorded severance expense, net of adjustments, of approximately $7.0 million.  During the six months ended June 30, 2020, we recorded severance expense, net of adjustments, of approximately $9.2 million.  The charges in all three operating segments primarily related to a realignment of certain roles and responsibilities and for North America and EMEA, the acquisition of PCM.  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, 2019, we recorded severance expense, net of adjustments, of approximately $680,000.  For the six months ended June 30, 2019, we recorded severance expense, net of adjustments, of approximately $1.1 million.

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Earnings from Operations.  Earnings from operations increased 3%, or $2.1 million, in the three months ended June 30, 2020, compared to the three months ended June 30, 2019.  Earnings from operations decreased 2%, or $2.1 million, in the six months ended June 30, 2020, compared to the six months ended June 30, 2019.  

Our earnings from operations and earnings from operations as a percentage of net sales by operating segment were as follows for the three and six months ended June 30, 2020 and 2019 (dollars in thousands):

	Three Months Ended June 30,										Six Months Ended June 30,
	2020		% of Net Sales			2019		% of Net Sales			2020		% of Net Sales			2019		% of Net Sales
North America	$	52,068		3.4	%	$	50,918		3.6	%	$	94,409		2.9	%	$	96,244		3.6	%
EMEA		17,910		4.6	%		16,598		4.4	%		26,230		3.2	%		26,521		3.4	%
APAC		4,210		11.2	%		4,601		9.0	%		6,412		7.3	%		6,391		6.1	%
Consolidated	$	74,188		3.8	%	$	72,117		3.9	%	$	127,051		3.1	%	$	129,156		3.7	%

North America’s earnings from operations for the three months ended June 30, 2020 increased $1.2 million, or 2%, compared to the three months ended June 30, 2019.  As a percentage of net sales, earnings from operations decreased by approximately 20 basis points to 3.4%.  The increase in earnings from operations was primarily driven by an increase in gross profit and decrease in acquisition and integration related expenses partially offset by increases in selling and administrative expenses and severance and restructuring expenses when compared to the three months ended June 30, 2019.

North America’s earnings from operations for the six months ended June 30, 2020 decreased $1.8 million, or 2%, compared to the six months ended June 30, 2019.  As a percentage of net sales, earnings from operations decreased by approximately 70 basis points to 2.9%. The decrease in earnings from operations was primarily driven by increases in selling and administrative expenses and severance and restructuring expenses in excess of the increase in gross profits when compared to the six months ended June 30, 2019.

EMEA’s earnings from operations for the three months ended June 30, 2020 increased $1.3 million, or 8%, compared to the three months ended June 30, 2019.  As a percentage of net sales, earnings from operations increased by approximately 20 basis points to 4.6%.  The increase in earnings from operations was primarily driven by an increase in gross profit partially offset by the increase in severance and restructuring expenses compared to the three months ended June 30, 2019.

EMEA’s earnings from operations for the six months ended June 30, 2020 decreased $291,000, or 1%, compared to the six months ended June 30, 2019.  As a percentage of net sales, earnings from operations decreased by approximately 20 basis points to 3.2%.  The decrease in earnings from operations was primarily driven by increases in selling and administrative expenses and severance and restructuring expenses marginally in excess of the increase in gross profit compared to the six months ended June 30, 2019.

APAC’s earnings from operations for the three months ended June 30, 2020 decreased $391,000, or 8%, compared to the three months ended June 30, 2019.  As a percentage of net sales, earnings from operations increased by approximately 220 basis points to 11.2%.  The decrease in earnings from operations was primarily driven by a decrease in gross profit partially offset by a decrease in selling and administrative expenses when compared to the three months ended June 30, 2019

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APAC’s earnings from operations for the six months ended June 30, 2020 remained flat compared to the six months ended June 30, 2019.  As a percentage of net sales, earnings from operations increased by approximately 120 basis points to 7.3%.  Earnings from operations reflects an increase in gross profit and reduction in severance and restructuring expenses offset by an increase in selling and administrative expenses when compared to the six months ended June 30, 2019.

Non-Operating (Income) Expense.

Interest Expense, Net.  Interest expense, net primarily relates to borrowings under our financing facilities and imputed interest under our inventory financing facilities and our convertible senior notes, partially offset by interest income generated from interest earned on cash and cash equivalent bank balances.  Interest expense for the three months ended June 30, 2020 increased more than 100%, or $5.9 million, compared to the three months ended June 30, 2019.  Interest expense for the six months ended June 30, 2020 increased more than 100%, or $13.2 million, compared to the six months ended June 30, 2019. The increase was due primarily to higher average daily balances under our ABL facility in comparison to our facilities in the prior year and imputed interest under our convertible senior notes. The higher average daily balances under our ABL are largely the result of the PCM acquisition. Imputed interest under our convertible senior notes, which were issued in August 2019, was $2.5 million and $5.0 million for the three and six months ended June 30, 2020, respectively. Imputed interest under our inventory financing facility was $2.8 million and $5.6 million for the three and six months ended June 30, 2020, respectively, compared to $2.9 million and $5.9 million for the three and six months ended June 30, 2019, respectively.  The decreases were a result of a lower average incremental borrowing rate used to compute the imputed interest amounts during the 2020 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.

Income Tax Expense. Our effective tax rate of 26.2% for the three months ended June 30, 2020 was higher than our effective tax rate of 25.9% for the three months ended June 30, 2019.  Our effective tax rate of 23.8% for the six months ended June 30, 2020 was lower than our effective tax rate of 24.9% for the six months ended June 30, 2019.  The decrease in our effective tax rate for the first half of 2020 compared to the first half of 2019 was due primarily to the remeasurement of acquired net operating losses to be carried back to higher tax rate years under the CARES Act.

Liquidity and Capital Resources

The following table sets forth certain consolidated cash flow information for the six months ended June 30, 2020 and 2019 (in thousands):

	Six Months Ended June 30,
	2020			2019
Net cash provided by operating activities	$	497,529		$	182,538
Net cash used in investing activities		(6,682	)		(13,946	)
Net cash used in financing activities		(450,576	)		(198,997	)
Foreign currency exchange effect on cash, cash equivalent    and restricted cash balances		(814	)		(183	)
Increase (decrease) in cash, cash equivalents and restricted cash		39,457			(30,588	)
Cash, cash equivalents and restricted cash at beginning of period		116,297			144,293
Cash, cash equivalents and restricted cash at end of period	$	155,754		$	113,705

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Cash and Cash Flow

• Our primary uses of cash during the six months ended June 30, 2020 were to pay down our debt balances and to fund our working capital requirements.  

• Operating activities provided $497.5 million in cash during the six months ended June 30, 2020, compared to $182.5 million during the six months ended June 30, 2019 driven by several non-recurring items in the second quarter of 2020. We expect our cash flows from operating activities to normalize in the second half of 2020.

• We had net borrowings under our inventory financing facilities of $7.5 million during the six months ended June 30, 2020, compared to net repayments of $43.2 million during the six months ended June 30, 2019.  

• Net repayments under our ABL revolving credit facility during the six months ended June 30, 2020 were $426.2 million.  Net repayments under our prior senior revolving credit facility and ABS facility combined during the six months ended June 30, 2019 were $149.0 million.  

• Capital expenditures were $14.5 million and $10.6 million in the six months ended June 30, 2020 and June 30, 2019, respectively.

• We acquired vNext for $6.4 million and received proceeds from the sale of a property held for sale of $14.2 million in the first half of 2020.

• During the six months ended June 30, 2020, we repurchased an aggregate of $25.0 million of our common stock, pursuant to a repurchase program approved in February 2020 with no comparable repurchases during the six months ended June 30, 2019.  

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. We believe that we have a strong balance sheet and healthy liquidity position, including amounts available under our ABL facility with current capacity of up to $1.2 billion, of which approximately $144.0 million in loans were outstanding at June 30, 2020. For the remainder of 2020, we plan to be prudent in our use of cash, deferring discretionary capital investments and using available cash to pay down debt as our priority.   

Net cash provided by operating activities  

• Cash flow from operating activities in the first half of 2020 was $497.5 million compared to $182.5 million in the first half of 2019.  

• The increase in cash flow from operating activities was primarily driven by several non-recurring items in the second quarter of 2020.  Specifically, a public sector customer paid approximately $150.0 million in the second quarter of 2020, prior to the due date, with the associated payment to the vendor not being due, and which will not be paid, until the third quarter of 2020.  In addition, a payment of $96.0 million that was due to a partner in the second quarter of 2020 was deferred in response to COVID-19 and will not be paid until the third quarter of 2020.

• The significant decreases in both other assets and accrued expenses and other liabilities for the three months ended June 30, 2020 resulted from a single significant transaction in 2019 with no comparable activity in the current year.

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Our consolidated cash flow operating metrics were as follows:

	Three Months Ended June 30,
	2020			2019
Days sales outstanding in ending accounts receivable (“DSOs”) (a)		124			113
Days inventory outstanding (“DIOs”) (b)		12			11
Days purchases outstanding in ending accounts payable (“DPOs”) (c)		(114	)		(98	)
Cash conversion cycle (days) (d)		22			26

(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 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 facilities 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 22 days in the second quarter of 2020, down 4 days from the second quarter of 2019.  

• The net changes were a result of an 11 day increase in DSOs and a 1 day increase in DIOs offset by a 16 day increase in DPOs. Excluding the impacts of software netting the increase in DSOs was due to an increase in amounts unbilled at June 30, 2020 compared to June 30, 2019, a deterioration in aged receivables associated with COVID-19 and also due to timing of transactions during the quarter.  Excluding the impacts of software netting the increase in DPOs was due to timing of transactions during the respective quarters, including deferral of payments to certain partners in response to COVID-19.

• 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 2020 in excess of working capital needs, given current market conditions, to be focused on paying down our debt balances.  

Net cash used in investing activities  

• Capital expenditures were $14.5 million and $10.6 million for the six months ended June 30, 2020 and 2019, respectively.

• We acquired vNext for $6.4 million and received proceeds from the sale of a property held for sale of $14.2 million in the first quarter of 2020.

• We expect capital expenditures for the full year 2020 to be between $20.0 million and $25.0 million, of which approximately $1.0 million will be used to ready our global corporate headquarters, and the remaining amount will be used for technology-related upgrade projects and the integration of prior acquisitions.

• We have decided to defer the buildout of our new corporate headquarters until early 2021.   

Net cash used in financing activities  

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (continued)

• During the six months ended June 30, 2020, we had net repayments under our ABL facility that decreased our outstanding long-term debt balance by $426.2 million.  

• During the six months ended June 30, 2019, we had net combined repayments under our prior senior revolving credit facility and our ABS facility that decreased our outstanding long-term debt balance by $149.0 million.  

• We had net borrowings under our inventory financing facilities of $7.5 million during the six months ended June 30, 2020 compared to net repayments of $43.2 million during the six months ended June 30, 2019.  

• During the six months ended June 30, 2020, we repurchased an aggregate of $25.0 million of our common stock, pursuant to a repurchase program approved in February 2020, with no comparable repurchases during the six months ended June 30, 2019.  

Financing Facilities

Our debt balance as of June 30, 2020 was $437.5 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 convertible senior notes are subject to certain events of default and certain acceleration clauses.  As of June 30, 2020, no such events have occurred.

• Our ABL revolving credit facility contains various covenants customary for transactions of this type, including complying with a minimum receivable and inventory requirement and meeting monthly, quarterly and annual reporting requirements.  The credit agreement contains customary affirmative and negative covenants and events of default.  At June 30, 2020, we were in compliance with all such covenants.

We also have agreements with financial intermediaries to facilitate the purchase of inventory from various suppliers under certain terms and conditions.  

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

• Our inventory financing facilities have an aggregate availability for vendor purchases of $490.0 million, of which $261.1 million was outstanding at June 30, 2020.  

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, 2020, we had approximately $120.4 million in cash and cash equivalents in certain of our foreign subsidiaries, primarily residing in Canada and the Netherlands.  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.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (continued)

Recently Issued Accounting Standards

The information contained in Note 1 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, 2019.

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Item 3.  Quantitative and Qualitative Disclosures About Market Risk.

Except as described below, 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, 2019.

Although our convertible senior notes are based on a fixed rate, changes in interest rates could impact the fair market value of such notes. As of June 30, 2020, the fair market value of our convertible senior notes was $379.2 million. For additional information about our convertible senior notes, see Note 5 to our Consolidated Financial Statements in Part I, Item 1 of this report.

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, 2020 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.  We completed the acquisition of PCM on August 30, 2019. As permitted under U.S. Securities and Exchange Commission guidance, management’s assessment as of June 30, 2020 did not include an assessment of controls and procedures of PCM, which is included in the consolidated financial statements as of June 30, 2020.  PCM constituted approximately 16% of our total assets as of June 30, 2020 and approximately 13% of our total net sales for the six months ended June 30, 2020.

Change in Internal Control over Financial Reporting

Except as described below, 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.

As noted above, on August 30, 2019 we completed the acquisition of PCM.  We are currently integrating PCM into our control environment.  In executing this integration, we are analyzing, evaluating, and where necessary, making changes in controls and procedures related to the PCM business, which is expected to be completed in the year ending December 31, 2020.    

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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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, 2019 (the “Annual Report”) and the risks relating to the impact of the COVID-19 pandemic described below.  The risks described in our Annual Report and below 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. 

The recent novel coronavirus (“COVID-19”) global pandemic has adversely affected, and is expected to continue to adversely affect, our business, results of operations and financial condition.  The widespread outbreak of any other illnesses or communicable diseases could also adversely affect our business, results of operations and financial condition.

We could be negatively impacted by the widespread outbreak of an illness, any other communicable disease or any other public health crisis that results in economic and trade disruptions, including the disruption of global supply chains.  To date, the COVID-19 pandemic has adversely affected, and is expected to continue to adversely affect, our business, results of operations and financial condition.  

In late 2019, there was an outbreak of a new strain of coronavirus, COVID-19, which has since spread globally.  On March 11, 2020, the World Health Organization declared COVID-19 a pandemic.  In an effort to protect the health and safety of our teammates, we took proactive action to adopt social distancing policies at our locations globally, including working from home where possible, limiting the number of teammates attending in-person meetings, reducing the number of people in our locations at any one time, and suspending teammate travel.

The COVID-19 pandemic has negatively impacted the global economy, disrupted global supply chains and workforce participation, and initially created significant volatility and disruption of financial markets.  As a result of the COVID-19 pandemic and the related responses from government authorities, our business operations, financial performance and results of operations have been, and continue to be, adversely impacted. For example, we observed a pronounced impact of COVID-19 on our second quarter financial results when compared to internal budgets, and anticipate demand for our products and services will continue to be down in the third quarter as clients continue to evaluate the impact of COVID-19 on their businesses, their profitability and liquidity.  We continued to experience a decrease in booking trends year over year in July 2020 and expect this to continue in the third quarter of 2020. In the short run we have taken steps to accelerate our integration plans with PCM and to reduce discretionary operating expenditures, such as certain teammate benefits and variable compensation, and travel related expenditures.  

Additionally, our business operations, financial performance and results of operations have been and could be further adversely impacted in a number of ways, which may include, but is not limited to, the following:

• disruptions to our operations, including any closures of our offices and facilities; restrictions on our operations and sales, marketing and distribution efforts; and interruptions to our other important business activities;

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INSIGHT ENTERPRISES, INC.

• further reduced demand for our products and services due to disruptions to the businesses and operations of our clients;

• interruptions, availability or delays in global shipping to transport our products;

• a slowdown or stoppage in the supply chain for our products;

• limitations on employee resources and availability, including due to sickness, government restrictions, the desire of employees to avoid contact with large groups of people or mass transit disruptions;

• the ability of our clients to pay for our products, services and solutions;

• the willingness of clients in the travel, hospitality, retail and other industries significantly impacted by the pandemic to continue with current and expected projects;

• a fluctuation in foreign currency exchange rates or interest rates could result from market uncertainties;

• an increase in the cost or the difficulty to obtain debt or equity financing could affect our financial condition or our ability to fund operations or future investment opportunities;

• changes to the carrying value of our goodwill and intangible assets; and

• an increase in regulatory restrictions or continued market volatility could hinder our ability to execute strategic business activities, including acquisitions, as well as negatively impact our stock price.

The spread of COVID-19 has caused us to modify our business practices (including teammate travel, teammate work locations, and cancellation of physical participation in most meetings, events and conferences), and we anticipate taking further actions as may be required by government authorities or that we determine are in the best interests of our clients, partners and teammates. There is no certainty that such measures will be sufficient to mitigate the risks posed by the virus, and our ability to perform critical functions could be harmed. Further, should any key teammates become ill from COVID-19 and unable to work, the attention of the management team could be diverted.

The potential effects of the COVID-19 pandemic may also impact our other risk factors discussed in in Part I, Item 1A, “Risk Factors”, in our Annual Report.  The ultimate extent of the impact of the COVID-19 pandemic on our business operations, financial performance and results of operation, including our ability to execute our business strategies and initiatives in the expected time frame, will depend on future developments, which are highly uncertain, continuously evolving and cannot be predicted.  This includes, but is not limited to, the duration and spread of the COVID-19 pandemic, its severity, the actions taken to contain the virus or treat its impact, such as restrictions on travel and transportation, and how quickly and to what extent normal economic and operating conditions can resume.

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, 2020.

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 ABL facility contains certain covenants that, if not met, restrict the payment of cash dividends.

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Issuer Purchases of Equity Securities

Period	(a) Total Number of Shares Purchased		(b) Average Price Paid per Share		(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		(d) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
April 1, 2020 through April 30, 2020		—	$	—		—	$	25,000,004
May 1, 2020 through May 31, 2020		—		—		—		25,000,004
June 1, 2020 through June 30, 2020		—		—		—		25,000,004
Total		—	$	—		—

On February 14, 2018, we announced that our Board of Directors had authorized the repurchase of up to $50 million of our common stock. There was no stated expiration date for this share repurchase plan.  As of January 1, 2020, $32,000 remained available for repurchases under this share repurchase plan (none of which remain available as of June 30, 2020).

On February 26, 2020, we announced that our Board of Directors had authorized the repurchase of up to $50 million of our common stock. There is no stated expiration date for this share repurchase plan.  As of June 30, 2020, $25 million remained available for repurchases under this share repurchase plan.  

In accordance with the share repurchase plans, share repurchases may be made on the open market, subject to Rule 10b-18 or in privately negotiated transactions, through block trades, through 10b5-1 plans or otherwise, at management’s discretion.  The amount of shares purchased and the timing of the purchases will be based on market conditions, working capital requirements, general business conditions and other factors.  We intend to retire the repurchased shares.  

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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Item 6.  Exhibits.

		Incorporated by Reference
Exhibit Number	Exhibit Description	Form	File No.	Exhibit Number	Filing Date	Filed/Furnished Herewith
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	Insight Enterprises, Inc. 2020 Omnibus Plan	S-8	333-238543	99.1	May 20, 2020
10.2	JPM Insight First Amendment to Credit Agreement 2020					X
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.

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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, 2020	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)

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EX-10.2

Exhibit 10.2

EXECUTION VERSION

FIRST AMENDMENT TO CREDIT AGREEMENT

This FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), dated as of July 31, 2020, is entered into by and among (a) INSIGHT ENTERPRISES, INC., a Delaware corporation, INSIGHT NORTH AMERICA, INC., an Arizona corporation, INSIGHT DIRECT USA, INC., an Illinois corporation, INSIGHT PUBLIC SECTOR, INC., an Illinois corporation, INSIGHT RECEIVABLES, LLC, an Illinois limited liability company, INSIGHT PHYSICAL SECURITY SOLUTIONS, LLC (FORMERLY KNOWN AS CALENCE PHYSICAL SECURITY SOLUTIONS LLC), an Arizona limited liability company, PCM, INC., a Delaware corporation, PCM LOGISTICS, LLC, a Delaware limited liability company, PCM SALES, LLC (FORMERLY KNOWN AS PCM SALES, INC.), a California limited liability company, PCMG, INC., a Delaware corporation, ABREON LLC (FORMERLY KNOWN AS ABREON, INC.), a Delaware limited liability company, M2 MARKETPLACE, INC., a Delaware corporation, EN POINTE TECHNOLOGIES SALES, LLC, a Delaware limited liability company, PCM BPO, LLC, a Delaware limited liability company, and ONSALE HOLDINGS, INC., an Illinois corporation, (collectively, the “U.S. Borrowers”), (b) INSIGHT DIRECT (UK) LTD, a company incorporated under the laws of England with registration number 02579852, INSIGHT NETWORKING SOLUTIONS LIMITED, a company incorporated under the laws of England with registration number 04482870, STACK TECHNOLOGY HOLDINGS LTD, a company incorporated under the laws of England with registration number 07170448, STACK DATA SOLUTIONS LTD, a company incorporated under the laws of England with registration number 01865047, STACK TELECOMMUNICATIONS SOLUTIONS LTD, a company incorporated under the laws of England with registration number 07423212, INTERCONNECT NETWORK SYSTEMS LIMITED, a company incorporated under the laws of England with registration number 03645464, PCM TECHNOLOGY SOLUTIONS UK, LTD, a company incorporated under the laws of England with registration number 10326566 (collectively, the “U.K. Borrowers”, (c) INSIGHT ENTERPRISES NETHERLANDS B.V., a besloten vennotschap met beperkte aansprakelijkheid, incorporated under the laws of The Netherlands, having its official seat in Apeldoorn, The Netherlands and registered with the Dutch trade register under number 08074503, INSIGHT ENTERPRISES B.V., a besloten vennotschap met beperkte aansprakelijkheid, incorporated under the laws of The Netherlands, having its official seat in The Hague, The Netherlands and registered with the Dutch trade register under number 27148512 (collectively, the “Dutch Borrowers” and, together with the U.S. Borrowers and U.K. Borrowers, the “Borrowers”), (d) the other Loan Parties (as defined in the Credit Agreement referred to below) signatory hereto, (e) the Lenders (as defined in the Credit Agreement) signatory hereto, and (f) JPMORGAN CHASE BANK, N.A., as Administrative Agent (as defined in the Credit Agreement).

RECITALS

A.The Borrowers, the Loan Parties, the Lenders and the Administrative Agent have previously entered into that certain Credit Agreement, dated as of August 30, 2019 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), pursuant to which the Lenders have made certain loans and financial accommodations available to the Borrowers.  Terms used herein without definition shall have the meanings ascribed to them in the Credit Agreement.

B.The Borrowers have requested that the Administrative Agent and the Lenders (1) amend the Credit Agreement, and (2) consent to (a) the name change of Calence Physical Security Solutions, LLC, an Arizona limited liability company, to Insight Physical Security Solutions, LLC, an Arizona limited liability company (the “Calence Name Change”), and (b) conversion of Abreon, Inc., a Delaware corporation to Abreon LLC, a Delaware limited liability company, and PCM Sales, Inc. to PCM Sales, LLC (collectively, the “LLC Conversions” and together with the Calence Name Change, the “Corporate Restructuring Request”), in each case on the terms and conditions set forth herein.  

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C.The Administrative Agent and the Required Lendersare willing to (1) amend the Credit Agreementand (2) consent to the Corporate Restructuring Request, in each case on the terms and conditions set forth herein.

D.Each Borrower and each other Loan Party is entering into this Amendment with the understanding and agreement that, except as specifically provided herein, none of the Administrative Agent’s or any Lender’s rights or remedies as set forth in the Credit Agreement and the other Loan Documents are being waived or modified by the terms of this Amendment.

AGREEMENT

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

1.Amendments to Credit Agreement.  Subject to the satisfaction in full of the conditions precedent set forth in Section 2 hereof, effective as of the Effective Date (as defined below), the Credit Agreement is hereby amended as set forth below:

(a)Clauses (a) and (b) of Section 2.03 of the Credit Agreement are hereby amended and restated in their entirety to read as follows:

“(a) in the case of a Eurocurrency Borrowing, 3:00 p.m., Local Time, three (3) Business Days before the date of the proposed Borrowing,”

“(b) in the case of an CBFR Borrowing, 1:00 p.m., Local Time, on the date of the proposed Borrowing, and”

(b)Clause (c) of Section 6.05 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

“(c)(i) Dispositions of Accounts in connection with the compromise, settlement or collection thereof and (ii) Dispositions of Accounts originated in connection with transactions consummated by a Loan Party or Restricted Subsidiary in the ordinary course of such Loan Party’s or such Restricted Subsidiary’s business consistent with past practices in which the applicable Loan Party or Restricted Subsidiary purchases hardware, software or services (as the case may be) from its vendors and subsequently sells or leases (as the case may be) such hardware, software or services to its customers, and then Disposes of the contracts for such transactions (including all Accounts arising from such transactions) to unaffiliated third-party financial institutions or other finance companies within fifteen (15) days (or such later date as agreed to by the Administrative Agent in its sole discretion) after such Accounts have been originated in connection with such transactions (it being understood and agreed that all Accounts owing by customers of a Loan Party or Restricted Subsidiary originated pursuant to such purchase and sale/lease transactions with such customers and so sold to any such unaffiliated third-party financial institutions or other finance companies shall not constitute Eligible Accounts but any Accounts owing to a Loan Party by any such unaffiliated third-party financial institutions or other finance companies in connection with the Disposition of such contracts to any such unaffiliated third-party financial institutions or other finance companies

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shall constitute Eligible Accounts to the extent such Accounts so qualify pursuant to the definition of Eligible Accounts);”

(c)Clause (d) of Section 6.05 of the Credit Agreement is hereby amended by deleting the amount “$75,000,000” and substituting the amount “$200,000,000” in lieu thereof.

2.Conditions Precedent to Effectiveness of this Amendment.  This Amendment shall become effective as of the date on which each of the following conditions precedent has been satisfied in full (the “Effective Date”):

(a)Amendment.  Each of the Borrowers, the other Loan Parties, the Administrative Agent and the Required Lenders shall have duly executed and delivered this Amendment and the Administrative Agent shall have received a fully executed counterpart hereof.

(b)Representations and Warranties. The representations and warranties of the Borrowers and the other Loan Parties set forth herein and in the other Loan Documents shall be true and correct in all material respects with the same effect as though made on and as of the Effective Date (it being understood and agreed that any representation or warranty which by its terms is made as of a specified date shall be required to be true and correct in all material respects only as of such specified date, and that any representation or warranty which is subject to any materiality qualifier shall be required to be true and correct in all respects).

3.Representations and Warranties.  Each Borrower and each other Loan Party represents and warrants to the Administrative Agent and the Lenders as follows:

(a)Authorization; Powers.  The execution, delivery and performance by each Loan Party of this Amendment, and the performance by each Loan Party of its obligations under the Loan Documents, as amended by this Amendment, in each case are within such Loan Party’s corporate or other organizational powers and have been duly authorized by all necessary corporate or other organizational actions on the part of such Loan Party and, if required, actions by such Loan Party’s equity holders, including, with respect to each Dutch Loan Party, to the extent applicable, an unconditional, positive, written advice from any works council in relation to the transactions contemplated by this Amendment and any other document required for compliance with the Dutch Works Council Act (Wet op de Ondernemingsraden).  

(b)Enforceability. This Amendment has been duly executed and delivered by such Loan Party and constitutes a legal, valid and binding obligation of such Loan Party, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.  The choice of governing law provisions contained in this Amendment are enforceable in the jurisdictions where any European Loan Party is organized or incorporated or any Collateral of such European Loan Party is located.  Any judgment obtained in connection with this Amendment or any other Loan Document in the jurisdiction of the governing law this Amendment or such other Loan Document will be recognized and be enforceable in the jurisdictions where such European Loan Party is organized or any Collateral of such European Loan Party is located, except as such enforceability may be limited by any applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and subject to (i) general principles of equity, regardless of whether considered in a proceeding at equity or at law, and (ii) the matters which are set out as qualifications or reservations as to matters of law of general applicability in the legal opinions provided to the Administrative Agent in accordance with Section 4.01(a) of the Credit Agreement.

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(c)Governmental Approvals; No Conflicts.  The execution, delivery and performance by each Loan Party of this Amendment, and the performance by the Borrowers of their obligations under the Credit Agreement, as amended by this Amendment, (i)do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except (A) such as have been obtained or made and are in full force and effect, (B) for filings necessary to perfect Liens created pursuant to the Loan Documents, and (C) those consents, approvals, registrations, filings or actions, the failure of which to obtain or make would not reasonably be expected to have a Material Adverse Effect, (ii) will not violate any charter, articles or certificate of organization or formation, bylaws, operating agreements, constitution or other organizational or governing documents of any Loan Party, (iii) will not violate any Requirement of Law applicable to any Loan Party or any Restricted Subsidiary in a manner which would reasonably be expected to have a Material Adverse Effect, (iv) will not violate or result in a default under any indenture, agreement or other instrument binding upon any Loan Party or any Restricted Subsidiary or the assets of any Loan Party or any Restricted Subsidiary in a manner which would reasonably be expected to have a Material Adverse Effect, or give rise to a right thereunder (other than any Loan Document) to require any payment to be made by any Loan Party or any Restricted Subsidiary in a manner which would reasonably be expected to have a Material Adverse Effect, and (v) will not result in the creation or imposition of, or the requirement to create, any Lien on any asset of any Loan Party or any Restricted Subsidiary, except Liens permitted under Section 6.02 of the Credit Agreement, as amended by this Amendment.

(d)Representations and Warranties in Loan Documents.  The representations and warranties of the Borrowers and the other Loan Parties set forth in the Loan Documents, including this Amendment, are true and correct in all material respects with the same effect as though made on and as of the date hereof (it being understood and agreed that any representation or warranty which by its terms is made as of a specified date shall be required to be true and correct in all material respects only as of such specified date, and that any representation or warranty which is subject to any materiality qualifier shall be required to be true and correct in all respects).

(e)No Default.  No event has occurred and is continuing that constitutes a Default or Event of Default.

4.Limited Consent.  Subject to the satisfaction of each of the conditions to effectiveness set forth in Section 2 of this Amendment, notwithstanding anything to the contrary set forth in the Credit Agreement or any other Loan Document, the Administrative Agent and the Required Lenders hereby consent to the Corporate Restructuring Request.

5.Choice of Law.  This Amendment shall be governed by and construed in accordance with the laws of the State of New York.

6.Counterparts.  This Amendment may be executed in any number of counterparts and by different parties and separate counterparts, each of which when so executed and delivered, shall be deemed an original, and all of which, when taken together, shall constitute one and the same instrument.  Delivery of an executed counterpart of a signature page to this Amendment by telecopy, emailed pdf. or other electronic means that complies with the federal Electronic Signatures in Global and National Commerce Act, state enactments of the Uniform Electronic Transactions Act, or any other relevant and applicable electronic signatures law shall be effective as delivery of a manually executed counterpart of this Amendment.  Each party agrees that this Amendment and any other documents to be delivered in connection herewith may be electronically signed, and that any electronic signatures appearing on this Amendment or such other documents are the same as handwritten signatures for the purposes of validity, enforceability, and admissibility.  As used herein, “electronic signatures” mean any electronic sound,

4

DB2/ 38338983.9

 

symbol, or process attached to or logically associated with a record and executed and adopted by a party with the intent to sign such record.  Notwithstanding the foregoing, Borrowers and the other Loan Parties hereby agree to provide the Administrative Agent with original counterparts of their respective signature pages hereto.

7.Reference to and Effect on the Loan Documents.

(a)Upon and after the Effective Date, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to “the Credit Agreement”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement as modified and amended hereby.

(b)Except as specifically set forth in this Amendment, the Credit Agreement and all other Loan Documents are and shall continue to be in full force and effect and are hereby in all respects ratified and confirmed and shall constitute the legal, valid, binding, and enforceable obligations of the Borrowers and the other Loan Parties to the Administrative Agent and the Lenders without defense, offset, claim, or contribution.

(c)The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power, or remedy of the Administrative Agent or any Lender under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents.

8.Ratification.  Each Borrower and each other Loan Party hereby restates, ratifies and reaffirms each and every term and condition set forth in the Credit Agreement, as amended hereby, and the other Loan Documents effective as of the date hereof.

9.Integration.  This Amendment, together with the other Loan Documents and any separate letter agreements with respect to fees payable to the Administrative Agent, constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.

10.Severability.  Any provision of this Amendment or any other Loan Document held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions thereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

[Remainder of Page Intentionally Left Blank; Signature Pages Follow.]

5

DB2/ 38338983.9

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their duly authorized officers as of the day and year first above written.

BORROWERS:

INSIGHT ENTERPRISES, INC.,

a Delaware corporation, as a U.S. Borrower and a European Borrower

INSIGHT NORTH AMERICA, INC.,

an Arizona corporation, as a U.S. Borrower and a European Borrower

INSIGHT DIRECT USA, INC.,

an Illinois corporation, as a U.S. Borrower and a European Borrower

INSIGHT PUBLIC SECTOR, INC.,

an Illinois corporation, as a U.S. Borrower and a European Borrower

INSIGHT RECEIVABLES, LLC,

a Delaware limited liability company, as a U.S. Borrower and a European Borrower

By: /s/ Lynn Willden

Name:Lynn Willden

Title:Treasurer

[Insight – Signature Page to First Amendment to Credit Agreement]

BORROWERS (CONT’D):

INSIGHT PHYSICAL SECURITY SOLUTIONS, LLC (FORMERLY KNOWN AS CALENCE PHYSICAL SECURITY SOLUTIONS, LLC), an Arizona limited liability company, as a U.S. Borrower and a European Borrower

By:/s/ John Brooks

Name: John Brooks

Title: President

[Insight – Signature Page to First Amendment to Credit Agreement]

BORROWERS (CONT’D):

PCM, INC.,

a Delaware corporation, as a U.S. Borrower and a European Borrower

PCM LOGISTICS, LLC,

a Delaware limited liability company, as a U.S. Borrower and a European Borrower

PCM SALES LLC (FORMERLY KNOWN AS PCM SALES, INC.), a California limited liability company, as a U.S. Borrower and a European Borrower

ABREON LLC (FORMERLY KNOWN AS ABREON, INC.), a Delaware limited liability company, as a U.S. Borrower and a European Borrower

M2 MARKETPLACE, INC.,

a Delaware corporation, as a U.S. Borrower and a European Borrower

EN POINTE TECHNOLOGIES SALES, LLC,

a Delaware limited liability company, as a U.S. Borrower and a European Borrower

PCM BPO, LLC,

a Delaware limited liability company, as a U.S. Borrower and a European Borrower

ONSALE HOLDINGS, INC.,

an Illinois corporation, as a U.S. Borrower and a European Borrower

By: /s/ Lynn Willden

Name:Lynn Willden

Title:Treasurer

[Insight – Signature Page to First Amendment to Credit Agreement]

BORROWERS (CONT’D):

PCMG, INC.,

a Delaware corporation, as a U.S. Borrower and a European Borrower

By: /s/ Sharon O. Ennis

Name:Sharon O. Ennis

Title:Secretary

[Insight – Signature Page to First Amendment to Credit Agreement]

BORROWERS (CONT’D):

SIGNED for and on behalf of INSIGHT DIRECT (UK) LTD, a company incorporated under the laws of England with registration number 02579852, as a U.K. Borrower and a European Borrower

By: /s/ Glynis A. Bryan

Name:Glynis A. Bryan

Title:Director

SIGNED for and on behalf of INSIGHT NETWORKING SOLUTIONS LIMITED, a company incorporated under the laws of England with registration number 04482870, as a U.K. Borrower and a European Borrower

By: /s/ Russell Leighton

Name:Russell Leighton

Title:Director

[Insight – Signature Page to First Amendment to Credit Agreement]

BORROWERS (CONT’D):

SIGNED for and on behalf of STACK TECHNOLOGY HOLDINGS LTD, a company incorporated under the laws of England with registration number 07170448, as a U.K. Borrower and a European Borrower

By: /s/ Glynis A. Bryan

Name:Glynis A. Bryan

Title:Director

SIGNED for and on behalf of STACK DATA SOLUTIONS LTD, a company incorporated under the laws of England with registration number 01865047, as a U.K. Borrower and a European Borrower

By: /s/ Glynis A. Bryan

Name:Glynis A. Bryan

Title:Director

SIGNED for and on behalf of STACK TELECOMMUNICATIONS SOLUTIONS LTD, a company incorporated under the laws of England with registration number 07423212, as a U.K. Borrower and a European Borrower

By: /s/ Glynis A. Bryan

Name:Glynis A. Bryan

Title:Director

[Insight – Signature Page to First Amendment to Credit Agreement]

DB2/ 38338983.9

 

BORROWERS (CONT’D):

SIGNED for and on behalf of INTERCONNECT NETWORK SYSTEMS LIMITED, a company incorporated under the laws of England with registration number 03645464, as a U.K. Borrower and a European Borrower

By: /s/ Glynis A. Bryan

Name:Glynis A. Bryan

Title:Director

SIGNED for and on behalf of PCM TECHNOLOGY SOLUTIONS UK, LTD, a company incorporated under the laws of England with registration number 10326566, as a U.K. Borrower and a European Borrower

By: /s/ Glynis A. Bryan

Name:Glynis A. Bryan

Title:Director

[Insight – Signature Page to First Amendment to Credit Agreement]

DB2/ 38338983.9

 

BORROWERS (CONT’D):

INSIGHT ENTERPRISES NETHERLANDS B.V.,

a besloten vennotschap met beperkte aansprakelijkheid, incorporated under the laws of The Netherlands, having its official seat in Apeldoorn, The Netherlands and registered with the Dutch trade register under number 08074503, as a Dutch Borrower and a European Borrower

By: /s/ Russell Leighton

Name:Russell Leighton

Title:Director

INSIGHT ENTERPRISES B.V.,

a besloten vennotschap met beperkte aansprakelijkheid, incorporated under the laws of The Netherlands, having its official seat in The Hague, The Netherlands and registered with the Dutch trade register under number 27148512, as a Dutch Borrower and a European Borrower

By: /s/Russell Leighton

Name:Russell Leighton

Title:Director

[Insight – Signature Page to First Amendment to Credit Agreement]

DB2/ 38338983.9

 

OTHER LOAN PARTIES:

INSIGHT DIRECT WORLDWIDE, INC.,

an Arizona corporation, as a Loan Guarantor

INSIGHT CANADA HOLDINGS, INC.,

an Arizona corporation, as a Loan Guarantor

INSIGHT TECHNOLOGY SOLUTIONS, INC.,

a Delaware corporation, as a Loan Guarantor

INSIGHT RECEIVABLES HOLDING, LLC,

an Illinois limited liability company, as a Loan Guarantor

CALENCE, LLC,

a Delaware limited liability company, as a Loan Guarantor

By: /s/ Lynn Willden

Name:Lynn Willden

Title:Treasurer

[Insight – Signature Page to First Amendment to Credit Agreement]

DB2/ 38338983.9

 

OTHER LOAN PARTIES (CONT’D):

3683371 CANADA INC.,

a Canadian corporation, as a Loan Guarantor

By: /s/ Michael L. Walker

Name:Michael L. Walker

Title:Assistant Secretary

INSIGHT CANADA INC.,

an Ontario corporation, as a Loan Guarantor

By: /s/ Michael L. Walker

Name:Michael L. Walker

Title:Assistant Secretary

INSIGHT DIRECT CANADA, INC.,

a Canadian corporation, as a Loan Guarantor

By: /s/ Michael L. Walker

Name:Michael L. Walker

Title:Assistant Secretary

PCM VENTES CANADA, INC. / PCM SALES CANADA, INC.,

a Quebec corporation, as a Loan Guarantor

By: /s/ Michael L. Walker

Name:Michael L. Walker

Title:Assistant Secretary

[Insight – Signature Page to First Amendment to Credit Agreement]

DB2/ 38338983.9

 

OTHER LOAN PARTIES (CONT’D):

SIGNED for and on behalf of INSIGHT ENTERPRISES UK LIMITED, a company incorporated under the laws of England with registration number 4051772, as a Loan Guarantor

By: /s/ Glynis A. Bryan

Name:Glynis A. Bryan

Title:Director

INSIGHT ENTERPRISES C.V.,

a limited partnership (commanditaire vennootschap), incorporated under the laws of The Netherlands and registered with the Dutch trade register under number 24410231, as a Loan Guarantor

By:  INSIGHT DIRECT USA, INC., as general partner

By: /s/ Lynn Willden

Name:Lynn Willden

Title:Treasurer

INSIGHT ENTERPRISES HOLDINGS B.V.,

a besloten vennootschap met beperkte aansprakelijkheid, incorporated under the laws of The Netherlands, having its official seat in Den Haag, The Netherlands and registered with the Dutch trade register under number 08154117, as a Loan Guarantor

By: /s/ Russell Leighton

Name:Russell Leighton

Title:Director

[Insight – Signature Page to First Amendment to Credit Agreement]

DB2/ 38338983.9

 

ADMINISTRATIVE AGENT, LENDERS AND ISSUING BANKS:

JPMORGAN CHASE BANK, N.A., individually and as the Administrative Agent, a Lender and a Issuing Bank

By: /s/ Kevin Podwika

Name: Kevin Podwika

Title: Authorized Officer

[Insight – Signature Page to First Amendment to Credit Agreement]

DB2/ 38338983.9

 

LENDERS (CONT’D):

JPMORGAN CHASE BANK, N.A., LONDON BRANCH, as a Lender

By: /s/ Kennedy A. Capin

Name: Kennedy A. Capin
Title: Authorized Officer

[Insight – Signature Page to First Amendment to Credit Agreement]

LENDERS (CONT’D):

BANK OF THE WEST, as a Lender

By: /s/Scott Bruni

Name: Scott Bruni
Title:   Director

[Insight – Signature Page to First Amendment to Credit Agreement]

LENDERS (CONT’D):

ZIONS BANCORPORATION, N.A. DBA NATIONAL BANK OF ARIZONA, as a Lender

By: /s/Jeff Byers

Name: Jeff Byers
Title: Senior Vice President

[Insight – Signature Page to First Amendment to Credit Agreement]

LENDERS (CONT’D):

WELLS FARGO BANK, NATIONAL ASSOCIATION, LONDON BRANCH, as a Lender

By: /s/Matt Harbour

Name: Matt Harbour
Title: Authorized Signatory

WELLS FARGO BANK, NATIONAL ASSOCIATION, LONDON BRANCH, as a Lender

By: /s/Patricia Del Busto

Name: Patricia Del Busto
Title: Authorized Signatory

[Insight – Signature Page to First Amendment to Credit Agreement]

LENDERS (CONT’D):

HSBC BANK USA, N.A., as a Lender

By: /s/Andrew Hietala

Name: Andrew Hietala
Title: Sr Corporate Relationship Manager

[Insight – Signature Page to First Amendment to Credit Agreement]

LENDERS (CONT’D):

MUFG BANK, LTD., as a Lender

By: /s/Adrian Avalos

Name: Adrian Avalos
Title: Director

[Insight – Signature Page to First Amendment to Credit Agreement]

LENDERS (CONT’D):

BOKF, NA DBA BOK FINANCIAL, as a Lender

By: /s/Christine A. Nowaczk

Name: Christine A. Nowaczyk
Title: Senior Vice President

[Insight – Signature Page to First Amendment to Credit Agreement]

LENDERS (CONT’D):

U.S. BANK NATIONAL ASSOCIATION, as a Lender

By: /s/Aaron Sceva

Name: Aaron Sceva
Title: Vice President

[Insight – Signature Page to First Amendment to Credit Agreement]

LENDERS (CONT’D):

TRUIST BANK (FORMERLY KNOWN AS BRANCH BANKING AND TRUST COMPANY), as a Lender

By: /s/Mark Bohntinsky

Name: Mark Bohntinsky
Title: Managing Director

[Insight – Signature Page to First Amendment to Credit Agreement]

LENDERS (CONT’D):

COMERICA BANK, as a Lender

By: /s/Liz V Hulley

Name: Liz V Hulley
Title: Vice President

[Insight – Signature Page to First Amendment to Credit Agreement]

LENDERS (CONT’D):

BANK OF AMERICA, N.A., as a Lender

By: /s/Carlos Gil

Name: Carlos Gil
Title: Senior Vice President

BANK OF AMERICA, N.A. (ACTING THROUGH ITS LONDON BRANCH), as a Lender

By: /s/Carlos Gil

Name: Carlos Gil
Title: Senior Vice President

[Insight – Signature Page to First Amendment to Credit Agreement]

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, 2020
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, 2020
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, 2020 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, 2020

By:	/s/ Glynis A. Bryan
	Glynis A. Bryan
	Chief Financial Officer
	August 6, 2020

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2020	Aug. 03, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Trading Symbol	NSIT
Entity Registrant Name	INSIGHT ENTERPRISES, INC.
Entity Central Index Key	0000932696
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		35,071,429
Entity File Number	0-25092
Entity Tax Identification Number	86-0766246
Entity Address, Address Line One	6820 South Harl Avenue
Entity Address, City or Town	Tempe
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85283
City Area Code	480
Local Phone Number	333-3000
Entity Incorporation, State or Country Code	DE
Title of 12(b) Security	Common stock, par value $0.01
Security Exchange Name	NASDAQ
Document Quarterly Report	true
Document Transition Report	false

XML

Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 153,866	$ 114,668
Accounts receivable, net of allowance for doubtful accounts of $13,017 and $10,762, respectively	2,677,564	2,511,383
Inventories	212,980	190,833
Other current assets	220,080	231,148
Total current assets	3,264,490	3,048,032
Property and equipment, net of accumulated depreciation and amortization of $241,826 and $236,330, respectively	127,490	130,907
Goodwill	415,897	415,149
Intangible assets, net of accumulated amortization of $93,462 and $73,492, respectively	261,254	278,584
Other assets	272,347	305,507
Total assets	4,341,478	4,178,179
Current liabilities:
Accounts payable—trade	1,796,918	1,275,957
Accounts payable—inventory financing facilities	261,133	253,676
Accrued expenses and other current liabilities	371,401	352,204
Current portion of long-term debt	1,509	1,691
Total current liabilities	2,430,961	1,883,528
Long-term debt	435,955	857,673
Deferred income taxes	43,880	44,633
Other liabilities	223,326	232,027
Total liabilities	3,134,122	3,017,861
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value, 3,000 shares authorized; no shares issued
Common stock, $0.01 par value, 100,000 shares authorized; 35,070 shares at June 30, 2020 and 35,263 shares at December 31, 2019 issued and outstanding	351	353
Additional paid-in capital	354,431	357,032
Retained earnings	900,950	841,097
Accumulated other comprehensive loss – foreign currency translation adjustments	(48,376)	(38,164)
Total stockholders’ equity	1,207,356	1,160,318
Total liabilities and stockholders' equity	$ 4,341,478	$ 4,178,179

XML

Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Statement Of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 13,017	$ 10,762
Accumulated depreciation and amortization of property and equipment	241,826	236,330
Accumulated amortization of intangible assets	$ 93,462	$ 73,492
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	3,000,000	3,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	35,070,000	35,263,000
Common stock, shares outstanding	35,070,000	35,263,000

XML

Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Net sales:
Total net sales	$ 1,968,735	$ 1,836,021	$ 4,112,786	$ 3,521,487
Costs of goods sold:
Total costs of goods sold	1,644,346	1,560,572	3,463,061	2,997,566
Gross profit	324,389	275,449	649,725	523,921
Operating expenses:
Selling and administrative expenses	242,580	199,489	511,443	390,552
Severance and restructuring expenses	7,010	680	9,154	1,050
Acquisition and integration related expenses	611	3,163	2,077	3,163
Earnings from operations	74,188	72,117	127,051	129,156
Non-operating (income) expense:
Interest expense, net	10,219	4,335	22,045	8,887
Other (income) expense, net	1,098	346	(465)	1,396
Earnings before income taxes	62,871	67,436	105,471	118,873
Income tax expense	16,486	17,438	25,125	29,548
Net earnings	$ 46,385	$ 49,998	$ 80,346	$ 89,325
Net earnings per share:
Basic	$ 1.32	$ 1.40	$ 2.29	$ 2.50
Diluted	$ 1.32	$ 1.38	$ 2.27	$ 2.47
Shares used in per share calculations:
Basic	35,060	35,772	35,147	35,691
Diluted	35,260	36,111	35,453	36,107
Products [Member]
Net sales:
Total net sales	$ 1,672,933	$ 1,594,335	$ 3,521,249	$ 3,061,007
Costs of goods sold:
Total costs of goods sold	1,517,947	1,458,916	3,188,185	2,796,224
Services [Member]
Net sales:
Total net sales	295,802	241,686	591,537	460,480
Costs of goods sold:
Total costs of goods sold	$ 126,399	$ 101,656	$ 274,876	$ 201,342

XML

Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement Of Income And Comprehensive Income [Abstract]
Net earnings	$ 46,385	$ 49,998	$ 80,346	$ 89,325
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	7,619	(290)	(10,212)	1,625
Total comprehensive income	$ 54,004	$ 49,708	$ 70,134	$ 90,950

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, 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
Beginning Balance at Dec. 31, 2019	1,160,318	$ 353		357,032	(38,164)	841,097
Beginning Balance, Shares at Dec. 31, 2019		35,263
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes, Value	(5,337)	$ 3		(5,339)		(1)
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes, Shares		252
Stock-based compensation expense	7,241			7,241
Repurchase of treasury stock	(25,000)		$ (25,000)
Repurchase of treasury stock, Shares			(445)
Retirement of treasury stock, Amount		$ (5)	$ 25,000	(4,503)		(20,492)
Retirement of treasury stock, Shares		(445)	445
Foreign currency translation adjustments, net of tax	(10,212)				(10,212)
Net earnings	80,346					80,346
Ending Balance at Jun. 30, 2020	1,207,356	$ 351		354,431	(48,376)	900,950
Ending Balance, Shares at Jun. 30, 2020		35,070
Beginning Balance at Mar. 31, 2020	1,150,569	$ 350		351,648	(55,995)	854,566
Beginning Balance, Shares at Mar. 31, 2020		35,049
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes, Value	(49)	$ 1		(49)		(1)
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes, Shares		21
Stock-based compensation expense	2,832			2,832
Foreign currency translation adjustments, net of tax	7,619				7,619
Net earnings	46,385					46,385
Ending Balance at Jun. 30, 2020	$ 1,207,356	$ 351		$ 354,431	$ (48,376)	$ 900,950
Ending Balance, Shares at Jun. 30, 2020		35,070

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Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities:
Net earnings	$ 80,346	$ 89,325
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	34,623	17,626
Provision for losses on accounts receivable	6,570	2,346
Non-cash stock-based compensation	7,241	7,797
Deferred income taxes	(1,464)	1,180
Amortization of debt discount	8,002
Other adjustments	2,829	2,350
Changes in assets and liabilities:
Increase in accounts receivable	(182,511)	(354,717)
Increase in inventories	(26,647)	(33,359)
Decrease (increase) in other assets	46,088	(93,714)
Increase in accounts payable	529,742	448,682
(Decrease) increase in accrued expenses and other liabilities	(7,290)	95,022
Net cash provided by operating activities	497,529	182,538
Cash flows from investing activities:
Proceeds from sale of assets held for sale	14,218
Purchases of property and equipment	(14,494)	(10,584)
Acquisitions, net of cash and cash equivalents acquired	(6,406)	(3,362)
Net cash used in investing activities	(6,682)	(13,946)
Cash flows from financing activities:
Borrowings on senior revolving credit facility		89,936
Repayments on senior revolving credit facility		(89,936)
Borrowings on accounts receivable securitization financing facility		1,919,500
Repayments on accounts receivable securitization financing facility		(2,068,500)
Net borrowings (repayments) under inventory financing facilities	7,457	(43,240)
Repurchases of common stock	(25,000)
Other payments	(6,791)	(6,757)
Net cash used in financing activities	(450,576)	(198,997)
Foreign currency exchange effect on cash, cash equivalents and restricted cash balances	(814)	(183)
Increase (decrease) in cash, cash equivalents and restricted cash	39,457	(30,588)
Cash, cash equivalents and restricted cash at beginning of period	116,297	144,293
Cash, cash equivalents and restricted cash at end of period	155,754	$ 113,705
ABL Facility [Member]
Cash flows from financing activities:
Borrowings on senior revolving credit facility	1,381,179
Repayments on senior revolving credit facility	$ (1,807,421)

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Basis of Presentation and Recently Issued Accounting Standards

6 Months Ended

Jun. 30, 2020

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 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 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, 2020 and our results of operations for the three and six months ended June 30, 2020 and 2019 and cash flows for the six months ended June 30, 2020 and 2019.  The consolidated balance sheet as of December 31, 2019 was derived from the audited consolidated balance sheet at such date.  The accompanying unaudited consolidated financial statements and notes have been prepared in accordance with the rules and regulations promulgated by the SEC and consequently do not include all of the disclosures normally required by United States generally accepted accounting principles (“GAAP”).  

The results of operations for interim periods are not necessarily indicative of results for the full year, due in part to the seasonal nature of our business.  These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including the related notes thereto, in our Annual Report on Form 10-K for the year ended December 31, 2019.  Our results of operations include the results of PCM, Inc. (“PCM”) from its acquisition date of August 30, 2019 and vNext from its acquisition date of February 28, 2020.  

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

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

Recently Issued Accounting Standards

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2019-12, “Simplifying the Accounting for Income Taxes.”  The new standard is intended to simplify various aspects of accounting for income taxes by removing specific exceptions and amending certain requirements.  The new standard is effective for interim and annual periods beginning after December 15, 2020, and early adoption is permitted.  We do not expect this new standard to have a material effect on our consolidated financial statements.    

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses.”  The new standard is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held at each reporting date. 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 update provides changes for how a company considers expected recoveries and contractual extensions or renewal options when estimating expected credit losses.  In November 2019, the FASB issued ASU No. 2019-11, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses.”  The new standard update provides amendments to the reporting of expected recoveries.  We adopted these new standards as of January 1, 2020. The adoption of these new standards did not have a material effect on our consolidated financial statements.

There have been no other material changes in or additions to the recently issued accounting standards as previously reported in Note 1 to our Consolidated Financial Statements in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2019 that affect or may affect our current financial statements.

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Sales Recognition

6 Months Ended

Jun. 30, 2020

Revenue From Contract With Customer [Abstract]

Sales Recognition

2. Sales Recognition

In the following table, revenue is disaggregated by our reportable operating segments, which are primarily defined by 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, 2020 and 2019 (in thousands):

	Three Months Ended June 30, 2020
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	1,023,970	$	153,255	$	6,834	$	1,184,059
Software		286,202		186,781		15,891		488,874
Services		228,975		51,981		14,846		295,802
	$	1,539,147	$	392,017	$	37,571	$	1,968,735
Major Client Groups
Large Enterprise / Corporate	$	1,023,562	$	273,147	$	16,102	$	1,312,811
Small and Medium-Sized Businesses		332,384		13,178		15,562		361,124
Public Sector		183,201		105,692		5,907		294,800
	$	1,539,147	$	392,017	$	37,571	$	1,968,735
Revenue Recognition based on acting as    Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	1,451,922	$	359,206	$	31,063	$	1,842,191
Net revenue recognition (Agent)		87,225		32,811		6,508		126,544
	$	1,539,147	$	392,017	$	37,571	$	1,968,735

	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
Small and Medium-Sized Businesses		177,515		19,818		19,459		216,792
Public Sector		156,381		78,343		15,096		249,820
	$	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

	Six Months Ended June 30, 2020
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	2,152,456	$	328,224	$	14,580	$	2,495,260
Software		591,365		387,863		46,761		1,025,989
Services		469,707		94,816		27,014		591,537
	$	3,213,528	$	810,903	$	88,355	$	4,112,786
Major Client Groups
Large Enterprise / Corporate	$	2,184,310	$	565,435	$	29,127	$	2,778,872
Small and Medium-Sized Businesses		718,460		30,920		29,216		778,596
Public Sector		310,758		214,548		30,012		555,318
	$	3,213,528	$	810,903	$	88,355	$	4,112,786
Revenue Recognition based on acting as    Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	3,052,436	$	751,465	$	76,817	$	3,880,718
Net revenue recognition (Agent)		161,092		59,438		11,538		232,068
	$	3,213,528	$	810,903	$	88,355	$	4,112,786

	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
Small and Medium-Sized Businesses		345,998		40,320		32,848		419,166
Public Sector		253,498		187,409		41,250		482,157
	$	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

The following table provides information about receivables and contract liabilities as of June 30, 2020 and December 31, 2019 (in thousands):

	June 30,		December 31,
	2020		2019
Current receivables, which are included in “Accounts    receivable, net”	$	2,677,564	$	2,511,383
Non-current receivables, which are included in “Other assets”		107,386		154,417
Contract liabilities, which are included in “Accrued expenses    and other current liabilities” and “Other liabilities”		91,483		84,814

Changes in the contract liabilities balances during the six months ended June 30, 2020 are as follows (in thousands):

	Increase (Decrease)
	Contract
	Liabilities
Balances at December 31, 2019	$	84,814
Reclassification of the beginning contract liabilities    to revenue, as the result of performance obligations satisfied		(32,682	)
Cash received in advance and not recognized as revenue		39,351
Balances at June 30, 2020	$	91,483

The following table includes estimated net sales related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2020 that are expected to be recognized in the future (in thousands):

	Services
Remainder of 2020	$	81,917
2021		50,477
2022		22,765
2023 and thereafter		14,398
Total remaining performance obligations	$	169,557

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 eight months.  Additionally, for our time and material services contracts, whereby we have the right to consideration from a client in an amount that corresponds directly with the value to the client of our performance completed to date, we recognized revenue in the amount to which we have a right to invoice as of June 30, 2020 and do not disclose information about related remaining performance obligations in the table above.  Our time and material contracts have an average expected duration of 20 months.

The majority of our backlog historically has been and continues to be open 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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Assets Held for Sale

6 Months Ended

Jun. 30, 2020

Property Plant And Equipment Assets Held For Sale Disclosure [Abstract]

Assets Held For Sale

3. Assets Held for Sale

During 2019, we completed the purchase of real estate in Chandler, Arizona that we intend to use as our global corporate headquarters.  During the fourth quarter of 2019, properties in Tempe, Arizona, El Segundo and Santa Monica, California and Woodbridge, Illinois were classified as held for sale, for approximately $68,916,000, which is included in other current assets in the accompanying consolidated balance sheet as of June 30, 2020, as we look to sell current properties in preparation for our move to Chandler.  During the first quarter of 2020, we completed the sale of our property in Irvine, California for approximately $14,218,000.    

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Net Earnings Per Share ("EPS")

6 Months Ended

Jun. 30, 2020

Earnings Per Share [Abstract]

Net Earnings Per Share ("EPS")

4. Net Earnings Per Share (“EPS”)

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Numerator:
Net earnings	$	46,385	$	49,998	$	80,346	$	89,325
Denominator:
Weighted average shares used to    compute basic EPS		35,060		35,772		35,147		35,691
Dilutive potential common shares due to    dilutive RSUs, net of tax effect		200		339		306		416
Weighted average shares used to compute    diluted EPS		35,260		36,111		35,453		36,107
Net earnings per share:
Basic	$	1.32	$	1.40	$	2.29	$	2.50
Diluted	$	1.32	$	1.38	$	2.27	$	2.47

For the three and six months ended June 30, 2020, 400,000 and 243,000, 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 1,000 and 83,000 anti-dilutive RSUs for the three and six months ended June 30, 2019, respectively.  

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

6 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

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

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

Debt

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

	June 30, 2020			December 31, 2019
ABL revolving credit facility	$	144,000		$	570,706
Convertible senior notes due 2025		290,551			284,836
Finance leases and other financing obligations		2,913			3,822
Total		437,464			859,364
Less: current portion of long-term debt		(1,509	)		(1,691	)
Long-term debt	$	435,955		$	857,673

On August 30, 2019, we entered into a credit agreement (the “credit agreement”) providing for a senior secured revolving credit facility (the “ABL facility”), which has an aggregate U.S. dollar equivalent maximum borrowing amount of $1,200,000,000, including a maximum borrowing capacity that could be used for borrowing in certain foreign currencies of $150,000,000.  While the ABL facility has a stated maximum amount, the actual availability under the ABL facility is limited by specified percentages of eligible accounts receivable and certain eligible inventory, in each case as set forth in the credit agreement.  From time to time and at our option, we may request to increase the aggregate amount available for borrowing under the ABL facility by up to an aggregate of the U.S. dollar equivalent of $500,000,000, subject to customary conditions, including receipt of commitments from lenders.  The ABL facility is guaranteed by certain of our material subsidiaries and is secured by a lien on certain of our assets and certain of each other borrower’s and each guarantor’s assets.  The interest rates applicable to borrowings under the ABL facility are based on the average aggregate excess availability under the ABL facility as set forth on a pricing grid in the credit agreement.  The ABL facility matures on August 30, 2024.  As of June 30, 2020, eligible accounts receivable and inventory were sufficient to permit access to the full $1,200,000,000 facility amount, of which $144,000,000 was outstanding.  

The ABL facility contains customary affirmative and negative covenants and events of default.  If a default occurs (subject to customary grace periods and materiality thresholds) under the credit agreement, certain actions may be taken, including, but not limited to, possible termination of commitments and required payment of all outstanding principal amounts plus accrued interest and fees payable under the credit agreement.  

Convertible Senior Notes due 2025

On August 15, 2019, we issued $300,000,000 aggregate principal amount of convertible senior notes (the “notes”) that mature on February 15, 2025. On August 23, 2019, we issued an additional $50,000,000 aggregate principal amount of the notes pursuant to the exercise in full by the initial purchasers of the notes of their option to purchase additional notes.  The notes bear interest at an annual rate of 0.75% payable semiannually, in arrears, on February 15^th and August 15^th of each year. The notes are general unsecured obligations of Insight and are guaranteed on a senior unsecured basis by Insight Direct USA, Inc., a wholly owned subsidiary of Insight.  

Holders of the notes may convert their notes at their option at any time prior to the close of business on the business day immediately preceding June 15, 2024, under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on December 31, 2019 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30

consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price of our common stock per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day; (3) if we call any or all of the notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events. On or after June 15, 2024 until the close of business on the second scheduled trading day immediately preceding the maturity date, the holders may convert their notes at any time, regardless of the foregoing circumstances.

Upon conversion, we will pay or deliver cash, shares of our common stock or a combination of the two, at our discretion. The conversion rate will initially be 14.6376 shares of common stock per $1,000 principal amount of notes (equivalent to an initial conversion price of approximately $68.32 per share of common stock). The conversion rate is subject to change in certain circumstances and will not be adjusted for any accrued and unpaid interest. In addition, following certain events that occur prior to the maturity date or following our issuance of a notice of redemption, the conversion rate is subject to an increase for a holder who elects to convert their notes in connection with those events or during the related redemption period in certain circumstances.

If we undergo a fundamental change, the holders may require us to repurchase for cash all or any portion of their notes at a fundamental change repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. As of June 30, 2020, none of the criteria for a fundamental change or a conversion rate adjustment had been met.

The maximum number of shares issuable upon conversion, including the effect of a fundamental change and subject to other conversion rate adjustments, would be 6,788,208.

We may redeem for cash all or any portion of the notes, at our option, on or after August 20, 2022 if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption at a redemption price equal to 100% of the then outstanding principal amount of the notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the notes.  

The notes are subject to certain customary events of default and acceleration clauses.  As of June 30, 2020, no such events have occurred.

The notes consist of the following balances reported within the consolidated balance sheet as of June 30, 2020 (in thousands):

Liability:
Principal	$	350,000
Less: debt discount and issuance costs, net of accumulated accretion		(59,449	)
Net carrying amount	$	290,551
Equity, net of deferred tax	$	44,731

The remaining life of the debt discount and issuance cost accretion is approximately 4.625 years.  The effective interest rate on the liability component of the notes is 4.325%.

Interest expense resulting from the notes reported within the consolidated statement of operations for the three and six months ended June 30, 2020 is made up of contractual coupon interest, amortization of debt discount and amortization of debt issuance costs.

Convertible Note Hedge and Warrant Transaction

In connection with the issuance of the notes, we entered into certain convertible note hedge and warrant transactions (the “Call Spread Transactions”) with respect to the Company’s common stock.

The convertible note hedge consists of an option to purchase up to 5,123,160 common stock shares at a price of $68.32 per share. The hedge expires on February 15, 2025 and can only be concurrently executed upon the conversion of the notes. We paid approximately $66,325,000 for the convertible note hedge transaction.

Additionally, we sold warrants to purchase 5,123,160 shares of common stock at a price of $103.12 per share. The warrants expire on May 15, 2025 and can only be exercised at maturity.  The Company received aggregate proceeds of approximately $34,440,000 for the sale of the warrants.

The Call Spread Transactions have no effect on the terms of the notes and reduce potential dilution by effectively increasing the initial conversion price of the notes to $103.12 per share of the Company’s common stock.

Inventory Financing Facilities

During the first quarter of 2020, we increased our maximum availability for vendor purchases under our unsecured inventory financing facility with MUFG Bank Ltd (“MUFG”) from $200,000,000 to $240,000,000.  We also have an unsecured inventory financing facility with Wells Fargo Capital Finance, LLC (“Wells Fargo”) with an aggregate availability for vendor purchases under the facility of $250,000,000.  As of June 30, 2020, our combined inventory financing facilities had a total maximum capacity of $490,000,000, of which $261,133,000 was outstanding.  The inventory financing facilities will remain in effect until they are terminated by any of the parties.  If balances are not paid within stated vendor terms, they will accrue interest at prime plus 2.00% or prime plus 1.25% with respect to the MUFG facility and Wells Fargo facility, respectively.  Amounts outstanding under these facilities are classified separately as accounts payable – inventory financing facilities in the accompanying consolidated balance sheets and within cash flows from financing activities in the accompanying consolidated statements of cash flows.  On July 6, 2020, we entered into a new unsecured inventory financing facility with a subsidiary of PNC Bank, N.A. (“PNC”), which replaced the Wells Fargo facility.  See Note 13 for additional information regarding our PNC facility.

Finance Lease and Other Financing Obligations

From time to time, we enter into finance leases and other financing agreements with financial intermediaries to facilitate the purchase of products from certain vendors.     

The current and long-term portions of our finance leases and other financing obligations are included in the current and long-term portions of long-term debt in the table above and in our consolidated balance sheets as of June 30, 2020 and December 31, 2019.  See Note 6 for additional information.    

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Leases

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Leases

6. Leases

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

Certain lease agreements include one or more options to renew, with renewal terms that can extend the lease term from one to five years 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.

The following table provides information about the financial statement classification of our lease balances reported within the consolidated balance sheets as of June 30, 2020 and December 31, 2019 (in thousands):

Leases	Classification	June 30, 2020		December 31, 2019
Assets
Operating lease assets	Other assets	$	85,718	$	74,684
Finance lease assets	Property and equipment(a)		2,649		3,297
Total lease assets		$	88,367	$	77,981
Liabilities
Current
Operating lease liabilities	Accrued expenses and other current liabilities	$	20,685	$	19,648
Finance lease liabilities	Current portion of long-term debt		1,509		1,691
Non-current
Operating lease liabilities	Other liabilities		71,159		60,285
Finance lease liabilities	Long-term debt		1,404		2,131
Total lease liabilities		$	94,757	$	83,755

(a) Recorded net of accumulated amortization of $1,509,000 and $861,000 as of June 30, 2020 and December 31, 2019, respectively.

The following table provides information about the financial statement classification of our lease expenses reported within the consolidated statement of operations for the three and six months ended June 30, 2020 (in thousands):

Lease cost	Classification	Three Months Ended June 30, 2020		Six Months Ended June 30, 2020
Operating lease cost (a) (b)	Selling and administrative expenses	$	6,438	$	12,952
Finance lease cost
Amortization of leased      assets	Selling and administrative expenses		324		648
Interest on lease liabilities	Interest expense, net		28		60
Total lease cost		$	6,790	$	13,660

(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, 2020 are as follows (in thousands):

	Operating leases			Finance leases			Total
Remainder of 2020	$	12,058		$	827		$	12,885
2021		21,736			1,077			22,813
2022		18,802			645			19,447
2023		13,209			449			13,658
2024		8,270			45			8,315
After 2024		28,769			—			28,769
Total lease payments		102,844			3,043			105,887
Less:  Interest		(11,000	)		(130	)		(11,130	)
Present value of lease liabilities	$	91,844		$	2,913		$	94,757

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, 2020:

	June 30, 2020		June 30, 2019
Weighted average remaining lease term (years)
Operating leases		6.23		6.56
Finance leases		2.58		1.94
Weighted average discount rate (%)
Operating leases		3.45		3.86
Finance leases		3.54		4.84

The following table provides other information related to leases for the three and six months ended June 30, 2020 (in thousands):

	Three Months Ended June 30, 2020		Six Months Ended June 30, 2020
Cash paid for amounts included in the measurement of lease    liabilities:
Operating cash flows from operating leases	$	6,502	$	13,084
Leased assets obtained in exchange for new operating lease liabilities	$	1,307	$	22,601

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

7.Stock-Based Compensation

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
North America	$	1,995	$	2,740	$	5,385	$	5,863
EMEA	$	704		814		1,582		1,684
APAC	$	133		128		274		250
Total Consolidated	$	2,832	$	3,682	$	7,241	$	7,797

As of June 30, 2020, total compensation cost related to nonvested RSUs not yet recognized is $28,105,491, which is expected to be recognized over the next 1.43 years on a weighted-average basis.  

The following table summarizes our RSU activity during the six months ended June 30, 2020:

	Number			Weighted Average Grant Date Fair Value		Fair Value
Nonvested at January 1, 2020		923,400		$	45.58
Granted(a)		321,550			57.78
Vested, including shares withheld to cover taxes		(342,202	)		41.85	$	14,321,154	(b)
Forfeited		(68,561	)		57.74
Nonvested at June 30, 2020 (a)		834,187			51.31	$	41,042,000	(c)

^(a) Includes 92,315 RSUs subject to remaining performance conditions.  The number of RSUs subject to performance conditions are based on the Company achieving 100% of its 2020 targeted financial results.  We currently estimate that these RSUs will be awarded at 0% this annual period based on not meeting the 2020 performance targets.  

^(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 $49.20 as of June 30, 2020, 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, 2020

Income Tax Disclosure [Abstract]

Income Taxes

8. Income Taxes

Our effective tax rate for the three and six months ended June 30, 2020 was 26.2% and 23.8%, respectively.  For the three months ended June 30, 2020, 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 the recognition of tax benefits related to research and development activities.  For the six months ended June 30, 2020, 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 the remeasurement of acquired net operating losses under the CARES Act and the recognition of tax benefits related to research and development activities.

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 excess tax benefits on the settlement of employee share-based compensation and 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.

As of June 30, 2020, and December 31, 2019, we had approximately $10,682,000 and $9,736,000, respectively, of unrecognized tax benefits.  Of these amounts, approximately $601,000 and $442,000, respectively, related to accrued interest.  In the future, if recognized, the liability associated with uncertain tax positions would affect our effective tax rate.  We do not believe there will be any changes over the next 12 months that would have a material effect on our effective tax rate.  

Several of our subsidiaries are currently under audit for tax years 2013 through 2018.  Although the timing of the resolutions and/or closures of audits is highly uncertain, it is reasonably possible that the examination phase of these audits may be concluded within the next 12 months, which could increase or decrease the balance of our gross unrecognized tax benefits.  However, based on the status of the various examinations in multiple jurisdictions, an estimate of the range of reasonably possible outcomes cannot be made at this time, but the estimated effect on our income tax expense and net earnings is not expected to be significant.  

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Share Repurchase Program

6 Months Ended

Jun. 30, 2020

Equity [Abstract]

Share Repurchase Program

9. Share Repurchase Program

On February 26, 2020, our Board of Directors authorized the repurchase of up to $50,000,000 of our common stock.  Our share repurchases may be made on the open market, subject to Rule 10b-18 or in privately negotiated transactions, through block trades, through 10b5-1 plans or otherwise, at management’s discretion.  The amount of shares purchased and the timing of the purchases will be based on market conditions, working capital requirements, general business conditions and other factors.  We intend to retire the repurchased shares. 

During the six months ended June 30, 2020, we repurchased 444,813 shares of our common stock on the open market at a total cost of approximately $24,999,996 (an average price of $56.20 per share).  All shares repurchased were retired.  During the comparative six months ended June 30, 2019, we did not repurchase any shares of our common stock.        

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2020

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

10. Commitments and Contingencies

Contractual

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

Management believes that payments, if any, related to these performance bonds are not probable at June 30, 2020.  Accordingly, we have not accrued any liabilities related to such performance bonds in our consolidated financial statements.

Employment Contracts and Severance Plans

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

Indemnifications

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

Management believes that payments, if any, related to these indemnifications are not probable at June 30, 2020.  Accordingly, we have not accrued any liabilities related to such indemnifications in our consolidated financial statements.

We have entered into separate indemnification agreements with certain of our executive officers and with each of our directors.  These agreements require us, among other requirements, to indemnify such officers and directors against expenses (including attorneys’ fees), judgments and settlements incurred by such individual in connection with any action arising out of such individual’s status or service as our executive officer or director (subject to exceptions such as where the individual failed to act in good faith or in a manner the individual reasonably believed to be in, or not opposed to, the best interests of the Company) and to advance expenses incurred by such individual with respect to which such individual may be entitled to indemnification by us.  There are no pending legal proceedings that involve the indemnification of any of the Company’s directors or officers.

Contingencies Related to Third-Party Review

From time to time, we are subject to potential claims and assessments from third parties.  We are also subject to various governmental, client and partner audits.  We continually assess whether or not such claims have merit and warrant accrual.  Where appropriate, we accrue estimates of anticipated liabilities in the consolidated financial statements.  Such estimates are subject to change and may affect our results of operations and our cash flows.

Legal Proceedings

From time to time, we are party to various legal proceedings incidental to the business, including preference payment claims asserted in client bankruptcy proceedings, indemnification claims, claims of alleged infringement of patents, trademarks, copyrights and other intellectual property rights, employment claims, claims of alleged non-compliance with contract provisions and claims related to alleged violations of laws and regulations.  We regularly evaluate the status of the legal proceedings in which we are involved to assess whether a loss is probable or there is a

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

In connection with the acquisition of PCM, the Company has effectively assumed responsibility for PCM litigation matters, including various disputes related to PCM’s acquisition of certain assets of En Pointe Technologies in 2015.  The seller of En Pointe Technologies and related entities providing various post-closing support functions to PCM have asserted claims regarding the sufficiency of earnout payments paid by PCM under the asset purchase agreement and the unwinding of the support functions post-closing.  PCM has rejected and vigorously responded to those claims and is pursuing various counterclaims.  The disputes are being heard by multiple courts and arbitrators in several different jurisdictions including California, Delaware and Pakistan.  The Company cannot determine with certainty the costs or outcome of these matters.  However, the Company is not involved in any pending or threatened legal proceedings, including the PCM litigation matters, that it believes would reasonably be expected to have a material adverse effect on its business, financial condition or results of operations.

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Segment Information

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Information

11.Segment Information

We operate in three reportable geographic operating segments: North America; EMEA; and APAC with PCM being included in our North America and EMEA segments for the three and six months ended June 30, 2020.  Our offerings in North America and certain countries in EMEA and APAC include IT hardware, software and services.  Our offerings in the remainder of our EMEA and APAC segments are largely software and certain software-related services.

The following table summarizes net sales by offering for North America, EMEA and APAC for the three and six months ended June 30, 2020 and 2019 (in thousands):

	North America				EMEA				APAC
	Three Months Ended June 30,				Three Months Ended June 30,				Three Months Ended June 30,
Sales Mix	2020		2019		2020		2019		2020		2019
Hardware	$	1,023,970	$	935,792	$	153,255	$	142,951	$	6,834	$	9,979
Software		286,202		289,874		186,781		190,086		15,891		25,653
Services		228,975		179,841		51,981		46,137		14,846		15,708
	$	1,539,147	$	1,405,507	$	392,017	$	379,174	$	37,571	$	51,340
	North America				EMEA				APAC
	Six Months Ended June 30,				Six Months Ended June 30,				Six Months Ended June 30,
Sales Mix	2020		2019		2020		2019		2020		2019
Hardware	$	2,152,456	$	1,684,129	$	328,224	$	314,476	$	14,580	$	16,497
Software		591,365		611,953		387,863		373,234		46,761		60,718
Services		469,707		351,866		94,816		81,639		27,014		26,975
	$	3,213,528	$	2,647,948	$	810,903	$	769,349	$	88,355	$	104,190

All significant intercompany transactions are eliminated upon consolidation, and there are no differences between the accounting policies used to measure profit and loss for our segments or on a consolidated basis.  Net sales are defined as net sales to external clients.  None of our clients exceeded ten percent of consolidated net sales for the three and six months ended June 30, 2020 or 2019.

A portion of our operating segments’ selling and administrative expenses arise from shared services and infrastructure that we have historically provided to them in order to realize economies of scale and to use resources efficiently.  These expenses, collectively identified as corporate charges, include senior management expenses, internal audit, legal, tax, insurance services, treasury and other corporate infrastructure expenses.  Charges are allocated to our operating segments, and the allocations have been determined on a basis that we consider to be a reasonable reflection of the utilization of services provided to or benefits received by the operating segments.  

The following tables present our results of operations by reportable operating segment for the periods indicated (in thousands):

	Three Months Ended June 30, 2020
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	1,310,172	$	340,036	$	22,725	$	1,672,933
Services		228,975		51,981		14,846		295,802
Total net sales		1,539,147		392,017		37,571		1,968,735
Costs of goods sold:
Products		1,187,178		310,279		20,490		1,517,947
Services		107,073		13,558		5,768		126,399
Total costs of goods sold		1,294,251		323,837		26,258		1,644,346
Gross profit		244,896		68,180		11,313		324,389
Operating expenses:
Selling and administrative expenses		187,313		48,177		7,090		242,580
Severance and restructuring expenses		4,904		2,093		13		7,010
Acquisition and integration related expenses		611		-		—		611
Earnings from operations	$	52,068	$	17,910	$	4,210	$	74,188

	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 and integration related expenses		3,163		-		—		3,163
Earnings from operations	$	50,918	$	16,598	$	4,601	$	72,117

	Six Months Ended June 30, 2020
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	2,743,821	$	716,087	$	61,341	$	3,521,249
Services		469,707		94,816		27,014		591,537
Total net sales		3,213,528		810,903		88,355		4,112,786
Costs of goods sold:
Products		2,475,375		656,028		56,782		3,188,185
Services		236,329		27,921		10,626		274,876
Total costs of goods sold		2,711,704		683,949		67,408		3,463,061
Gross profit		501,824		126,954		20,947		649,725
Operating expenses:
Selling and administrative expenses		398,516		98,421		14,506		511,443
Severance and restructuring expenses		7,026		2,099		29		9,154
Acquisition and integration related expenses		1,873		204		—		2,077
Earnings from operations	$	94,409	$	26,230	$	6,412	$	127,051

	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

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

	June 30, 2020			December 31, 2019
North America	$	4,414,439		$	3,814,408
EMEA		911,796			699,856
APAC		158,428			123,349
Corporate assets and intercompany eliminations, net		(1,143,185	)		(459,434	)
Total assets	$	4,341,478		$	4,178,179

We recorded the following pre-tax amounts, by reportable operating segment, for depreciation and amortization in the accompanying consolidated financial statements (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Depreciation and amortization of property and    equipment:
North America	$	5,826	$	3,786	$	11,652	$	7,743
EMEA		1,249		1,012		2,577		1,967
APAC		137		140		272		272
		7,212		4,938		14,501		9,982
Amortization of intangible assets:
North America		9,371		3,636		18,864		7,272
EMEA		534		69		1,040		138
APAC		109		116		218		234
		10,014		3,821		20,122		7,644
Total	$	17,226	$	8,759	$	34,623	$	17,626

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Acquisitions

6 Months Ended

Jun. 30, 2020

Business Combinations [Abstract]

Acquisitions

12.Acquisitions

PCM

On August 30, 2019, we completed our acquisition of PCM, acquiring 100 percent of the issued and outstanding shares of PCM for a cash purchase price of $745,562,000, which included cash and cash equivalents acquired of $84,637,000 and the payment of PCM’s outstanding debt. PCM is a provider of multi-vendor technology offerings, including hardware, software and services to small, mid-sized and corporate/enterprise commercial clients, state, local and federal governments and educational institutions across the United States, Canada and the United Kingdom.  Based in El Segundo, California, PCM had 40 office locations globally and more than 4,000 teammates.  We believe that this acquisition allows us to help existing PCM clients in positioning their businesses for future growth, transforming and securing their data platforms, creating modern and mobile experiences for their workforce and optimizing the procurement of technology.  The addition of PCM complements our supply chain optimization solution offering, adding scale and clients in the mid-market and corporate space primarily in North America.

The following table summarizes the purchase price and the estimated fair value of the assets acquired and liabilities assumed at the date of acquisition (in thousands):  

Purchase price net of cash and cash equivalents acquired				$	660,925
Fair value of net assets acquired:
Current assets	$	531,941
Identifiable intangible assets - see description below		191,370
Property and equipment		91,213
Other assets		32,699
Current liabilities		(367,712	)
Long-term liabilities, including deferred taxes		(64,915	)
Total fair value of net assets acquired					414,596
Excess purchase price over fair value of net assets acquired ("goodwill")				$	246,329

Under the acquisition method of accounting, the total purchase price as shown in the table above was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values.  The excess of the purchase price over fair value of net assets acquired was recorded as goodwill.  In the fourth quarter of 2019, an adjustment of $56,700,000 was recorded to goodwill primarily due to a change in the customer relationships valuation based on updated information received for key inputs as well as an associated change in deferred taxes.  

The fair values of current assets and liabilities are based upon their historical costs on the date of acquisition due to their short-term nature.  The estimated fair values of the majority of property and equipment, excluding acquired real estate, are also based upon historical costs net of depreciation, as they approximated fair value.  Certain long-term assets, including PCM’s IT systems, were written down to the estimated fair value.  

The preliminary estimated fair value of net assets acquired was approximately $414,596,000, including $191,370,000 of identified intangible assets, consisting primarily of customer relationships of $178,900,000.  The fair value of the customer relationships were determined using the multiple-period excess earnings method.  The identifiable intangible assets resulting from the acquisition are amortized using the straight-line method over the following estimated useful lives: customer relationships – 10-12 years; trade names – 1 year; non-compete agreements – 2-3 years.

Goodwill of $246,329,000, which was recorded in our North America and EMEA operating segments, represents the excess of the purchase price over the estimated fair value assigned to tangible and identifiable intangible assets acquired and liabilities assumed from PCM.  The goodwill is not amortized and will be tested for impairment annually in the fourth quarter of our fiscal year.  The addition of the PCM technical employees to our team and the opportunity to grow our business are the primary factors making up the goodwill recognized as part of the transaction.  None of the goodwill is tax deductible.  

The purchase price allocation is preliminary and was allocated using information currently available.  Further information related to legal accruals, taxes and other statutory assessments may lead to an adjustment of the purchase price allocation.  

We have consolidated the results of operations for PCM since its acquisition on August 30, 2019.  

The following table reports pro forma information as if the acquisition of PCM had been completed at the beginning of the earliest period presented (in thousands, except per share amounts):

		Three Months Ended June 30,		Six Months Ended June 30,
		2019		2019
Net sales	As reported	$	1,836,021	$	3,521,487
	Pro forma	$	2,383,698	$	4,602,472
Net earnings	As reported	$	49,998	$	89,325
	Pro forma	$	55,349	$	92,406
Diluted earnings per share	As reported	$	1.38	$	2.47
	Pro forma	$	1.53	$	2.56

Changes in Goodwill and Intangible Assets

Other than the goodwill and intangible assets recorded in conjunction with the acquisitions of vNext and PCM, the only other change in consolidated goodwill and intangible assets as of June 30, 2020 compared to the balance as of December 31, 2019 resulted from foreign currency translation adjustments associated with the balances in our North America, EMEA and APAC operating segments.

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Subsequent Events

6 Months Ended

Jun. 30, 2020

Subsequent Events [Abstract]

Subsequent Events

13.Subsequent Events

On July 6, 2020, we entered into an unsecured inventory financing facility with a maximum borrowing capacity of $250,000,000 with a subsidiary of PNC Bank, N.A.  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 LIBOR plus 4.50%.  Amounts outstanding under this facility will be classified as accounts payable – inventory financing facilities in the accompanying balance sheets.  This new facility replaced the unsecured inventory financing facility with Wells Fargo.

On July 31, 2020, we entered into the First Amendment to Credit Agreement (the “Amendment”) to the ABL facility.  The Amendment, among other things, amends the credit agreement to provide additional flexibility for certain asset sale transactions by the Company and its subsidiaries.

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Basis of Presentation and Recently Issued Accounting Standards (Policies)

6 Months Ended

Jun. 30, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Recently Issued Accounting Standards

Recently Issued Accounting Standards

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2019-12, “Simplifying the Accounting for Income Taxes.”  The new standard is intended to simplify various aspects of accounting for income taxes by removing specific exceptions and amending certain requirements.  The new standard is effective for interim and annual periods beginning after December 15, 2020, and early adoption is permitted.  We do not expect this new standard to have a material effect on our consolidated financial statements.    

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses.”  The new standard is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held at each reporting date. 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 update provides changes for how a company considers expected recoveries and contractual extensions or renewal options when estimating expected credit losses.  In November 2019, the FASB issued ASU No. 2019-11, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses.”  The new standard update provides amendments to the reporting of expected recoveries.  We adopted these new standards as of January 1, 2020. The adoption of these new standards did not have a material effect on our consolidated financial statements.

There have been no other material changes in or additions to the recently issued accounting standards as previously reported in Note 1 to our Consolidated Financial Statements in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2019 that affect or may affect our current financial statements.

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Sales Recognition (Tables)

6 Months Ended

Jun. 30, 2020

Revenue From Contract With Customer [Abstract]

Summary of Revenue Disaggregated by Reportable Operating Segments

In the following table, revenue is disaggregated by our reportable operating segments, which are primarily defined by 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, 2020 and 2019 (in thousands):

	Three Months Ended June 30, 2020
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	1,023,970	$	153,255	$	6,834	$	1,184,059
Software		286,202		186,781		15,891		488,874
Services		228,975		51,981		14,846		295,802
	$	1,539,147	$	392,017	$	37,571	$	1,968,735
Major Client Groups
Large Enterprise / Corporate	$	1,023,562	$	273,147	$	16,102	$	1,312,811
Small and Medium-Sized Businesses		332,384		13,178		15,562		361,124
Public Sector		183,201		105,692		5,907		294,800
	$	1,539,147	$	392,017	$	37,571	$	1,968,735
Revenue Recognition based on acting as    Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	1,451,922	$	359,206	$	31,063	$	1,842,191
Net revenue recognition (Agent)		87,225		32,811		6,508		126,544
	$	1,539,147	$	392,017	$	37,571	$	1,968,735

	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
Small and Medium-Sized Businesses		177,515		19,818		19,459		216,792
Public Sector		156,381		78,343		15,096		249,820
	$	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

	Six Months Ended June 30, 2020
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	2,152,456	$	328,224	$	14,580	$	2,495,260
Software		591,365		387,863		46,761		1,025,989
Services		469,707		94,816		27,014		591,537
	$	3,213,528	$	810,903	$	88,355	$	4,112,786
Major Client Groups
Large Enterprise / Corporate	$	2,184,310	$	565,435	$	29,127	$	2,778,872
Small and Medium-Sized Businesses		718,460		30,920		29,216		778,596
Public Sector		310,758		214,548		30,012		555,318
	$	3,213,528	$	810,903	$	88,355	$	4,112,786
Revenue Recognition based on acting as    Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	3,052,436	$	751,465	$	76,817	$	3,880,718
Net revenue recognition (Agent)		161,092		59,438		11,538		232,068
	$	3,213,528	$	810,903	$	88,355	$	4,112,786

	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
Small and Medium-Sized Businesses		345,998		40,320		32,848		419,166
Public Sector		253,498		187,409		41,250		482,157
	$	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

Summary of Information about Receivables and Contract Liabilities

The following table provides information about receivables and contract liabilities as of June 30, 2020 and December 31, 2019 (in thousands):

	June 30,		December 31,
	2020		2019
Current receivables, which are included in “Accounts    receivable, net”	$	2,677,564	$	2,511,383
Non-current receivables, which are included in “Other assets”		107,386		154,417
Contract liabilities, which are included in “Accrued expenses    and other current liabilities” and “Other liabilities”		91,483		84,814

Summary of Changes in Contract Liabilities from Contract with Customers

Changes in the contract liabilities balances during the six months ended June 30, 2020 are as follows (in thousands):

	Increase (Decrease)
	Contract
	Liabilities
Balances at December 31, 2019	$	84,814
Reclassification of the beginning contract liabilities    to revenue, as the result of performance obligations satisfied		(32,682	)
Cash received in advance and not recognized as revenue		39,351
Balances at June 30, 2020	$	91,483

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, 2020 that are expected to be recognized in the future (in thousands):

	Services
Remainder of 2020	$	81,917
2021		50,477
2022		22,765
2023 and thereafter		14,398
Total remaining performance obligations	$	169,557

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

6 Months Ended

Jun. 30, 2020

Earnings Per Share [Abstract]

Reconciliation of Denominators of Basic and Diluted EPS Calculations

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Numerator:
Net earnings	$	46,385	$	49,998	$	80,346	$	89,325
Denominator:
Weighted average shares used to    compute basic EPS		35,060		35,772		35,147		35,691
Dilutive potential common shares due to    dilutive RSUs, net of tax effect		200		339		306		416
Weighted average shares used to compute    diluted EPS		35,260		36,111		35,453		36,107
Net earnings per share:
Basic	$	1.32	$	1.40	$	2.29	$	2.50
Diluted	$	1.32	$	1.38	$	2.27	$	2.47

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

6 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

Long-Term Debt

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

	June 30, 2020			December 31, 2019
ABL revolving credit facility	$	144,000		$	570,706
Convertible senior notes due 2025		290,551			284,836
Finance leases and other financing obligations		2,913			3,822
Total		437,464			859,364
Less: current portion of long-term debt		(1,509	)		(1,691	)
Long-term debt	$	435,955		$	857,673

Schedule of Convertible Senior Notes Balances

The notes consist of the following balances reported within the consolidated balance sheet as of June 30, 2020 (in thousands):

Liability:
Principal	$	350,000
Less: debt discount and issuance costs, net of accumulated accretion		(59,449	)
Net carrying amount	$	290,551
Equity, net of deferred tax	$	44,731

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Leases (Tables)

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

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

The following table provides information about the financial statement classification of our lease balances reported within the consolidated balance sheets as of June 30, 2020 and December 31, 2019 (in thousands):

Leases	Classification	June 30, 2020		December 31, 2019
Assets
Operating lease assets	Other assets	$	85,718	$	74,684
Finance lease assets	Property and equipment(a)		2,649		3,297
Total lease assets		$	88,367	$	77,981
Liabilities
Current
Operating lease liabilities	Accrued expenses and other current liabilities	$	20,685	$	19,648
Finance lease liabilities	Current portion of long-term debt		1,509		1,691
Non-current
Operating lease liabilities	Other liabilities		71,159		60,285
Finance lease liabilities	Long-term debt		1,404		2,131
Total lease liabilities		$	94,757	$	83,755

(a) Recorded net of accumulated amortization of $1,509,000 and $861,000 as of June 30, 2020 and December 31, 2019, respectively.

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

The following table provides information about the financial statement classification of our lease expenses reported within the consolidated statement of operations for the three and six months ended June 30, 2020 (in thousands):

Lease cost	Classification	Three Months Ended June 30, 2020		Six Months Ended June 30, 2020
Operating lease cost (a) (b)	Selling and administrative expenses	$	6,438	$	12,952
Finance lease cost
Amortization of leased      assets	Selling and administrative expenses		324		648
Interest on lease liabilities	Interest expense, net		28		60
Total lease cost		$	6,790	$	13,660

(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, 2020 are as follows (in thousands):

	Operating leases			Finance leases			Total
Remainder of 2020	$	12,058		$	827		$	12,885
2021		21,736			1,077			22,813
2022		18,802			645			19,447
2023		13,209			449			13,658
2024		8,270			45			8,315
After 2024		28,769			—			28,769
Total lease payments		102,844			3,043			105,887
Less:  Interest		(11,000	)		(130	)		(11,130	)
Present value of lease liabilities	$	91,844		$	2,913		$	94,757

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, 2020:

	June 30, 2020		June 30, 2019
Weighted average remaining lease term (years)
Operating leases		6.23		6.56
Finance leases		2.58		1.94
Weighted average discount rate (%)
Operating leases		3.45		3.86
Finance leases		3.54		4.84

Schedule of Other Information Related to Leases

The following table provides other information related to leases for the three and six months ended June 30, 2020 (in thousands):

	Three Months Ended June 30, 2020		Six Months Ended June 30, 2020
Cash paid for amounts included in the measurement of lease    liabilities:
Operating cash flows from operating leases	$	6,502	$	13,084
Leased assets obtained in exchange for new operating lease liabilities	$	1,307	$	22,601

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

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

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
North America	$	1,995	$	2,740	$	5,385	$	5,863
EMEA	$	704		814		1,582		1,684
APAC	$	133		128		274		250
Total Consolidated	$	2,832	$	3,682	$	7,241	$	7,797

Summary of Restricted Stock Units Activity

The following table summarizes our RSU activity during the six months ended June 30, 2020:

	Number			Weighted Average Grant Date Fair Value		Fair Value
Nonvested at January 1, 2020		923,400		$	45.58
Granted(a)		321,550			57.78
Vested, including shares withheld to cover taxes		(342,202	)		41.85	$	14,321,154	(b)
Forfeited		(68,561	)		57.74
Nonvested at June 30, 2020 (a)		834,187			51.31	$	41,042,000	(c)

^(a) Includes 92,315 RSUs subject to remaining performance conditions.  The number of RSUs subject to performance conditions are based on the Company achieving 100% of its 2020 targeted financial results.  We currently estimate that these RSUs will be awarded at 0% this annual period based on not meeting the 2020 performance targets.  

^(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 $49.20 as of June 30, 2020, 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, 2020

Segment Reporting [Abstract]

Net Sales by Offering for North America, EMEA and APAC

The following table summarizes net sales by offering for North America, EMEA and APAC for the three and six months ended June 30, 2020 and 2019 (in thousands):

	North America				EMEA				APAC
	Three Months Ended June 30,				Three Months Ended June 30,				Three Months Ended June 30,
Sales Mix	2020		2019		2020		2019		2020		2019
Hardware	$	1,023,970	$	935,792	$	153,255	$	142,951	$	6,834	$	9,979
Software		286,202		289,874		186,781		190,086		15,891		25,653
Services		228,975		179,841		51,981		46,137		14,846		15,708
	$	1,539,147	$	1,405,507	$	392,017	$	379,174	$	37,571	$	51,340
	North America				EMEA				APAC
	Six Months Ended June 30,				Six Months Ended June 30,				Six Months Ended June 30,
Sales Mix	2020		2019		2020		2019		2020		2019
Hardware	$	2,152,456	$	1,684,129	$	328,224	$	314,476	$	14,580	$	16,497
Software		591,365		611,953		387,863		373,234		46,761		60,718
Services		469,707		351,866		94,816		81,639		27,014		26,975
	$	3,213,528	$	2,647,948	$	810,903	$	769,349	$	88,355	$	104,190

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, 2020
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	1,310,172	$	340,036	$	22,725	$	1,672,933
Services		228,975		51,981		14,846		295,802
Total net sales		1,539,147		392,017		37,571		1,968,735
Costs of goods sold:
Products		1,187,178		310,279		20,490		1,517,947
Services		107,073		13,558		5,768		126,399
Total costs of goods sold		1,294,251		323,837		26,258		1,644,346
Gross profit		244,896		68,180		11,313		324,389
Operating expenses:
Selling and administrative expenses		187,313		48,177		7,090		242,580
Severance and restructuring expenses		4,904		2,093		13		7,010
Acquisition and integration related expenses		611		-		—		611
Earnings from operations	$	52,068	$	17,910	$	4,210	$	74,188

	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 and integration related expenses		3,163		-		—		3,163
Earnings from operations	$	50,918	$	16,598	$	4,601	$	72,117

	Six Months Ended June 30, 2020
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	2,743,821	$	716,087	$	61,341	$	3,521,249
Services		469,707		94,816		27,014		591,537
Total net sales		3,213,528		810,903		88,355		4,112,786
Costs of goods sold:
Products		2,475,375		656,028		56,782		3,188,185
Services		236,329		27,921		10,626		274,876
Total costs of goods sold		2,711,704		683,949		67,408		3,463,061
Gross profit		501,824		126,954		20,947		649,725
Operating expenses:
Selling and administrative expenses		398,516		98,421		14,506		511,443
Severance and restructuring expenses		7,026		2,099		29		9,154
Acquisition and integration related expenses		1,873		204		—		2,077
Earnings from operations	$	94,409	$	26,230	$	6,412	$	127,051

	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

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, 2020			December 31, 2019
North America	$	4,414,439		$	3,814,408
EMEA		911,796			699,856
APAC		158,428			123,349
Corporate assets and intercompany eliminations, net		(1,143,185	)		(459,434	)
Total assets	$	4,341,478		$	4,178,179

Pre-Tax Depreciation and Amortization by Operating Segment

We recorded the following pre-tax amounts, by reportable operating segment, for depreciation and amortization in the accompanying consolidated financial statements (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Depreciation and amortization of property and    equipment:
North America	$	5,826	$	3,786	$	11,652	$	7,743
EMEA		1,249		1,012		2,577		1,967
APAC		137		140		272		272
		7,212		4,938		14,501		9,982
Amortization of intangible assets:
North America		9,371		3,636		18,864		7,272
EMEA		534		69		1,040		138
APAC		109		116		218		234
		10,014		3,821		20,122		7,644
Total	$	17,226	$	8,759	$	34,623	$	17,626

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Acquisitions (Tables)

6 Months Ended

Jun. 30, 2020

Business Combinations [Abstract]

Summary of Purchase Price and Estimated Fair Value of Assets Acquired and Liabilities Assumed

The following table summarizes the purchase price and the estimated fair value of the assets acquired and liabilities assumed at the date of acquisition (in thousands):  

Purchase price net of cash and cash equivalents acquired				$	660,925
Fair value of net assets acquired:
Current assets	$	531,941
Identifiable intangible assets - see description below		191,370
Property and equipment		91,213
Other assets		32,699
Current liabilities		(367,712	)
Long-term liabilities, including deferred taxes		(64,915	)
Total fair value of net assets acquired					414,596
Excess purchase price over fair value of net assets acquired ("goodwill")				$	246,329

Summary of Pro Forma Information

The following table reports pro forma information as if the acquisition of PCM had been completed at the beginning of the earliest period presented (in thousands, except per share amounts):

		Three Months Ended June 30,		Six Months Ended June 30,
		2019		2019
Net sales	As reported	$	1,836,021	$	3,521,487
	Pro forma	$	2,383,698	$	4,602,472
Net earnings	As reported	$	49,998	$	89,325
	Pro forma	$	55,349	$	92,406
Diluted earnings per share	As reported	$	1.38	$	2.47
	Pro forma	$	1.53	$	2.56

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Basis of Presentation and Recently Issued Accounting Standards - Additional Information (Detail) - Segment	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Number of operating segments	3	3
VNext [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Business acquisition, effective date of acquisition		Feb. 28, 2020
PCM [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Business acquisition, effective date of acquisition		Aug. 30, 2019

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Sales Recognition - Summary of Revenue Disaggregated by Reportable Operating Segments (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	$ 1,968,735	$ 1,836,021	$ 4,112,786	$ 3,521,487
Gross Revenue Recognition (Principal) [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	1,842,191	1,729,568	3,880,718	3,326,677
Net Revenue Recognition (Agent) [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	126,544	106,453	232,068	194,810
Large Enterprise / Corporate [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	1,312,811	1,369,409	2,778,872	2,620,164
Public Sector [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	294,800	249,820	555,318	482,157
Small and Medium-Sized Businesses [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	361,124	216,792	778,596	419,166
North America Segment [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	1,539,147	1,405,507	3,213,528	2,647,948
North America Segment [Member] | Gross Revenue Recognition (Principal) [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	1,451,922	1,338,948	3,052,436	2,521,026
North America Segment [Member] | Net Revenue Recognition (Agent) [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	87,225	66,559	161,092	126,922
North America Segment [Member] | Large Enterprise / Corporate [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	1,023,562	1,071,611	2,184,310	2,048,452
North America Segment [Member] | Public Sector [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	183,201	156,381	310,758	253,498
North America Segment [Member] | Small and Medium-Sized Businesses [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	332,384	177,515	718,460	345,998
EMEA Segment [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	392,017	379,174	810,903	769,349
EMEA Segment [Member] | Gross Revenue Recognition (Principal) [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	359,206	347,336	751,465	714,501
EMEA Segment [Member] | Net Revenue Recognition (Agent) [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	32,811	31,838	59,438	54,848
EMEA Segment [Member] | Large Enterprise / Corporate [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	273,147	281,013	565,435	541,620
EMEA Segment [Member] | Public Sector [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	105,692	78,343	214,548	187,409
EMEA Segment [Member] | Small and Medium-Sized Businesses [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	13,178	19,818	30,920	40,320
APAC Segment [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	37,571	51,340	88,355	104,190
APAC Segment [Member] | Gross Revenue Recognition (Principal) [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	31,063	43,284	76,817	91,150
APAC Segment [Member] | Net Revenue Recognition (Agent) [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	6,508	8,056	11,538	13,040
APAC Segment [Member] | Large Enterprise / Corporate [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	16,102	16,785	29,127	30,092
APAC Segment [Member] | Public Sector [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	5,907	15,096	30,012	41,250
APAC Segment [Member] | Small and Medium-Sized Businesses [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	15,562	19,459	29,216	32,848
Hardware Net Sales [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	1,184,059	1,088,722	2,495,260	2,015,102
Hardware Net Sales [Member] | North America Segment [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	1,023,970	935,792	2,152,456	1,684,129
Hardware Net Sales [Member] | EMEA Segment [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	153,255	142,951	328,224	314,476
Hardware Net Sales [Member] | APAC Segment [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	6,834	9,979	14,580	16,497
Software Net Sales [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	488,874	505,613	1,025,989	1,045,905
Software Net Sales [Member] | North America Segment [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	286,202	289,874	591,365	611,953
Software Net Sales [Member] | EMEA Segment [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	186,781	190,086	387,863	373,234
Software Net Sales [Member] | APAC Segment [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	15,891	25,653	46,761	60,718
Services Net Sales [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	295,802	241,686	591,537	460,480
Services Net Sales [Member] | North America Segment [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	228,975	179,841	469,707	351,866
Services Net Sales [Member] | EMEA Segment [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	51,981	46,137	94,816	81,639
Services Net Sales [Member] | APAC Segment [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of Revenue	$ 14,846	$ 15,708	$ 27,014	$ 26,975

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Sales Recognition - Summary of Information about Receivables and Contract Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Disaggregation of Revenue [Line Items]
Current receivables, which are included in “Accounts receivable, net”	$ 2,677,564	$ 2,511,383
Contract liabilities, which are included in “Accrued expenses and other current liabilities” and “Other liabilities”	91,483	84,814
Accounts Receivable, Net [Member]
Disaggregation of Revenue [Line Items]
Current receivables, which are included in “Accounts receivable, net”	2,677,564	2,511,383
Other Assets [Member]
Disaggregation of Revenue [Line Items]
Non-current receivables, which are included in “Other assets”	107,386	154,417
Accrued Expenses and Other Current Liabilities and Other Liabilities [Member]
Disaggregation of Revenue [Line Items]
Contract liabilities, which are included in “Accrued expenses and other current liabilities” and “Other liabilities”	$ 91,483	$ 84,814

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Sales Recognition - Summary of Changes in Contract Liabilities from Contract with Customers (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2020 USD ($)
Revenue From Contract With Customer [Abstract]
Beginning balance, Contract Liabilities	$ 84,814
Reclassification of the beginning contract liabilities to revenue, as the result of performance obligations satisfied, Contract Liabilities	(32,682)
Cash received in advance and not recognized as revenue, Contract Liabilities	39,351
Ending balance, Contract Liabilities	$ 91,483

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Sales Recognition - Summary of Estimated Net Sales Related to Performance Obligation (Detail) - Services [Member] $ in Thousands	Jun. 30, 2020 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligations	$ 169,557
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligations	$ 81,917
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligations	$ 50,477
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	$ 22,765
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	$ 14,398
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year

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Sales Recognition - Summary of Estimated Net Sales Related to Performance Obligation (Detail 1) $ in Thousands	Jun. 30, 2020 USD ($)
Services [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligations	$ 169,557

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Sales Recognition - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2020
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]
Description of expected duration	With the exception of remaining performance obligations associated with our OneCall Support Services contracts which are included in the table above regardless of original duration, remaining performance obligations that have original expected durations of one year or less are not included in the table above.  Amounts not included in the table above have an average original expected duration of eight months.
Time and material contracts expected duration	20 months

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Assets Held for Sale - Additional Information (Detail) - USD ($)	3 Months Ended	6 Months Ended
	Mar. 31, 2020	Jun. 30, 2020
Long Lived Assets Held For Sale [Line Items]
Proceeds from sale of property		$ 14,218,000
Irvine, California Property [Member]
Long Lived Assets Held For Sale [Line Items]
Proceeds from sale of property	$ 14,218,000
Other Current Assets [Member]
Long Lived Assets Held For Sale [Line Items]
Properties held for sale		$ 68,916,000

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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, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Numerator:
Net earnings	$ 46,385	$ 49,998	$ 80,346	$ 89,325
Denominator:
Weighted average shares used to compute basic EPS	35,060	35,772	35,147	35,691
Dilutive potential common shares due to dilutive RSUs, net of tax effect	200	339	306	416
Weighted average shares used to compute diluted EPS	35,260	36,111	35,453	36,107
Net earnings per share:
Basic	$ 1.32	$ 1.40	$ 2.29	$ 2.50
Diluted	$ 1.32	$ 1.38	$ 2.27	$ 2.47

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Net Earnings Per Share ("EPS") - Additional Information (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
RSUs excluded from the diluted EPS calculations	400,000	1,000	243,000	83,000

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Debt, Inventory Financing Facilities, Finance Leases and Other Financing Obligations - Long-Term Debt (Detail) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Long-term debt
Finance leases and other financing obligations	$ 2,913,000	$ 3,822,000
Total	437,464,000	859,364,000
Less: current portion of long-term debt	(1,509,000)	(1,691,000)
Long-term debt	435,955,000	857,673,000
ABL Facility [Member]
Long-term debt
Revolving credit facility	144,000,000	570,706,000
Convertible Senior Notes due 2025 [Member]
Long-term debt
Convertible senior notes due 2025	$ 290,551,000	$ 284,836,000

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Debt, Inventory Financing Facilities, Finance Leases and Other Financing Obligations - Additional Information (Detail)			6 Months Ended
	Aug. 30, 2019 USD ($)	Aug. 15, 2019 USD ($)	Jun. 30, 2020 USD ($) shares d $ / shares	Dec. 31, 2019 USD ($)	Aug. 23, 2019 USD ($)
Debt Instrument [Line Items]
Accounts payable-inventory financing facility			$ 261,133,000	$ 253,676,000
Convertible Senior Notes due 2025 [Member]
Debt Instrument [Line Items]
Aggregate principal amount of convertible senior notes, issued amount		$ 300,000,000	$ 350,000,000
Convertible senior notes, maturity date		Feb. 15, 2025
Additional aggregate principal amount of notes issued					$ 50,000,000
Convertible senior notes, interest rate		0.75%
Convertible senior notes, payable term			payable semiannually, in arrears, on February 15th and August 15th of each year.
Number of trading days | d			20
Number of consecutive trading days | d			30
Percentage of last reported sale price to conversion price on each applicable trading day			130.00%
Principal amount per note used in conversion rate			$ 1,000
Debt Conversion, initial conversion rate | shares			14.6376
Conversion price per share | $ / shares			$ 68.32
Repurchase price as percentage of principal amount			100.00%
Shares issuable upon conversion of debt | shares			6,788,208
Debt instrument, redemption price, percentage of outstanding principal amount redeemed			100.00%
Convertible senior notes, remaining accretion period of debt discount and issuance cost			4 years 7 months 15 days
Convertible senior notes, effective interest rate			4.325%
Conversion price per share | $ / shares			$ 68.32
Convertible note hedge expiration date			Feb. 15, 2025
Payments to convertible note hedge transaction			$ 66,325,000
Warrants sold to purchase of additional common stock | shares			5,123,160
Warrant price per share to purchase additional common stock | $ / shares			$ 103.12
Warrants expiration date			May 15, 2025
Proceeds from sale of warrants			$ 34,440,000
Convertible Senior Notes due 2025 [Member] | Scenario One [Member]
Debt Instrument [Line Items]
Number of trading days | d			20
Number of consecutive trading days | d			30
Percentage of last reported sale price to conversion price on each applicable trading day			130.00%
Convertible Senior Notes due 2025 [Member] | Scenario Two [Member]
Debt Instrument [Line Items]
Number of consecutive trading days | d			5
Percentage of last reported sale price to conversion price on each applicable trading day			98.00%
Measurement period			5 days
Convertible Senior Notes due 2025 [Member] | Maximum [Member]
Debt Instrument [Line Items]
Option to purchase common stock, shares | shares			5,123,160
ABL Facility [Member]
Debt Instrument [Line Items]
Credit facility, borrowing capacity	$ 1,200,000,000
Line of credit maturity date	Aug. 30, 2024
Amount of facility permitted by qualified receivables			$ 1,200,000,000
Line of credit outstanding amount			144,000,000	$ 570,706,000
ABL Facility [Member] | Maximum [Member]
Debt Instrument [Line Items]
Credit facility, increase in amount available for borrowing	$ 500,000,000
ABL Facility [Member] | Foreign Currency Borrowings [Member]
Debt Instrument [Line Items]
Credit facility, borrowing capacity	$ 150,000,000
Inventory Financing Facility [Member]
Debt Instrument [Line Items]
Inventory financing facility maximum borrowing capacity			490,000,000
Accounts payable-inventory financing facility			$ 261,133,000
Inventory Financing Facility [Member] | Wells Fargo [Member]
Debt Instrument [Line Items]
Inventory financing facility interest rate if balances are not paid within stated vendor terms			prime plus 1.25%
Inventory financing facility rate if vendor terms not met equal prime plus			1.25%
Unsecured Inventory Financing Facility [Member] | Wells Fargo [Member]
Debt Instrument [Line Items]
Inventory financing facility maximum borrowing capacity			$ 250,000,000
Unsecured Inventory Financing Facility [Member] | MUFG Bank Ltd [Member]
Debt Instrument [Line Items]
Inventory financing facility interest rate if balances are not paid within stated vendor terms			prime plus 2.00%
Inventory financing facility rate if vendor terms not met equal prime plus			2.00%
Unsecured Inventory Financing Facility [Member] | Maximum [Member] | MUFG Bank Ltd [Member]
Debt Instrument [Line Items]
Accounts payable-inventory financing facility			$ 240,000,000
Unsecured Inventory Financing Facility [Member] | Minimum [Member] | MUFG Bank Ltd [Member]
Debt Instrument [Line Items]
Accounts payable-inventory financing facility			$ 200,000,000

XML

Debt, Inventory Financing Facilities, Finance Leases and Other Financing Obligations - Schedule of Convertible Senior Notes Balances (Detail) - Convertible Senior Notes due 2025 [Member] - USD ($)	Jun. 30, 2020	Aug. 15, 2019
Liability:
Principal	$ 350,000,000	$ 300,000,000
Less: debt discount and issuance costs, net of accumulated accretion	(59,449,000)
Net carrying amount	290,551,000
Equity, net of deferred tax	$ 44,731,000

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Leases - Additional Information (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2020 USD ($)
Lessee Lease Description [Line Items]
Operating lease, existence of option to extend	true
Operating lease, option to extend lease terms, description	Operating lease payments include $13.4 million related to options to extend lease terms that are reasonably certain of being exercised
Operating lease payments	$ 102,844
Options to Extend Lease Terms [Member]
Lessee Lease Description [Line Items]
Operating lease payments	$ 13,400
Minimum [Member]
Lessee Lease Description [Line Items]
Operating lease renewal term	1 year
Maximum [Member]
Lessee Lease Description [Line Items]
Operating lease renewal term	5 years

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Leases - Schedule of Financial Statement Classification of Lease Balances With Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Lessee Lease Description [Line Items]
Total lease assets	$ 88,367	$ 77,981
Total lease liabilities	94,757	83,755
Other Assets [Member]
Lessee Lease Description [Line Items]
Operating lease assets	85,718	74,684
Property and equipment [Member]
Lessee Lease Description [Line Items]
Finance lease assets	2,649	3,297
Accrued expenses and other current liabilities [Member]
Lessee Lease Description [Line Items]
Operating lease liabilities	20,685	19,648
Current portion of long-term debt [Member]
Lessee Lease Description [Line Items]
Finance lease liabilities	1,509	1,691
Other liabilities [Member]
Lessee Lease Description [Line Items]
Operating lease liabilities	71,159	60,285
Long-term debt [Member]
Lessee Lease Description [Line Items]
Finance lease liabilities	$ 1,404	$ 2,131

XML

Leases - Schedule of Financial Statement Classification of Lease Balances With Consolidated Balance Sheet (Parenthetical) (Detail) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Property and equipment [Member]
Lessee Lease Description [Line Items]
Finance lease assets, accumulated amortization	$ 1,509,000	$ 861,000

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, 2020	Jun. 30, 2020
Lessee Lease Description [Line Items]
Total lease cost	$ 6,790	$ 13,660
Selling and Administrative Expenses [Member]
Lessee Lease Description [Line Items]
Operating lease cost	6,438	12,952
Amortization of leased assets	324	648
Interest Expense, Net [Member]
Lessee Lease Description [Line Items]
Interest on lease liabilities	$ 28	$ 60

XML

Leases - Schedule of Future Minimum Lease Payments Under Non-cancelable Leases (Detail) $ in Thousands	Jun. 30, 2020 USD ($)
Operating Lease
Remainder of 2020	$ 12,058
2021	21,736
2022	18,802
2023	13,209
2024	8,270
After 2024	28,769
Total lease payments	102,844
Less: Interest	(11,000)
Present value of lease liabilities	91,844
Finance Lease
Remainder of 2020	827
2021	1,077
2022	645
2023	449
2024	45
Total lease payments	3,043
Less: Interest	(130)
Present value of lease liabilities	2,913
Total
Remainder of 2020	12,885
2021	22,813
2022	19,447
2023	13,658
2024	8,315
After 2024	28,769
Total lease payments	105,887
Less: Interest	(11,130)
Present value of lease liabilities	$ 94,757

XML

Leases - Schedule of Weighted Average Remaining Term and Discount Rates (Detail)	Jun. 30, 2020	Jun. 30, 2019
Leases [Abstract]
Operating leases, Weighted average remaining lease term (years)	6 years 2 months 23 days	6 years 6 months 21 days
Finance leases, Weighted average remaining lease term (years)	2 years 6 months 29 days	1 year 11 months 8 days
Operating leases, Weighted average discount rate	3.45%	3.86%
Finance leases, Weighted average discount rate	3.54%	4.84%

XML

Leases - Schedule of Cash Flows Associated With the Company's Leasing Activities (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 6,502	$ 13,084
Leased assets obtained in exchange for new operating lease liabilities	$ 1,307	$ 22,601

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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, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense related to restricted stock units (RSUs)	$ 2,832	$ 3,682	$ 7,241	$ 7,797
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)	1,995	2,740	5,385	5,863
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)	704	814	1,582	1,684
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)	$ 133	$ 128	$ 274	$ 250

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Stock-Based Compensation - Additional Information (Detail) - Restricted Stock Units (RSUs) [Member]	6 Months Ended
	Jun. 30, 2020 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation cost related to RSU's not yet recognized	$ 28,105,491
Weighted average number of years for recognition of outstanding nonvested RSUs	1 year 5 months 4 days

XML

Stock-Based Compensation - Summary of Restricted Stock Units Activity (Detail) - Restricted Stock Units (RSUs) [Member]	6 Months Ended
	Jun. 30, 2020 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested Number, Beginning balance | shares	923,400
Number, Granted | shares	321,550
Number, Vested, including shares withheld to cover taxes | shares	(342,202)
Number, Forfeited | shares	(68,561)
Nonvested Number, Ending balance | shares	834,187
Nonvested Weighted Average Grant Date Fair Value, Beginning balance | $ / shares	$ 45.58
Weighted Average Grant Date Fair Value, Granted | $ / shares	57.78
Weighted Average Grant Date Fair Value, Vested, including shares withheld to cover taxes | $ / shares	41.85
Weighted Average Grant Date Fair Value, Forfeited | $ / shares	57.74
Nonvested Weighted Average Grant Date Fair Value, Ending balance | $ / shares	$ 51.31
Fair Value, Vested, including shares withheld to cover taxes | $	$ 14,321,154
Fair Value, Nonvested at end of period | $	$ 41,042,000

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Stock-Based Compensation - Summary of Restricted Stock Units Activity (Parenthetical) (Detail)	6 Months Ended
	Jun. 30, 2020 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Closing stock price | $ / shares	$ 49.20
Percentage of award vested upon completion of acquisition	0.00%
Performance Based Restricted Stock Unit [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total RSUs | shares	92,315

XML

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Income Tax [Line Items]
Effective tax rate	26.20%	25.90%	23.80%	24.90%
United States federal statutory income tax rate	21.00%	21.00%	21.00%	21.00%
Unrecognized tax benefits	$ 10,682,000		$ 10,682,000		$ 9,736,000
Unrecognized tax benefits, interest on income taxes accrued	$ 601,000		$ 601,000		$ 442,000
Period during which examination phase of tax audits may conclude, description			Although the timing of the resolutions and/or closures of audits is highly uncertain, it is reasonably possible that the examination phase of these audits may be concluded within the next 12 months, which could increase or decrease the balance of our gross unrecognized tax benefits.
Earliest Tax Year [Member]
Income Tax [Line Items]
Open tax year			2013
Latest Tax Year [Member]
Income Tax [Line Items]
Open tax year			2018

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Share Repurchase Program - Additional Information (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Feb. 26, 2020
Equity [Abstract]
Common stock repurchase program, authorized amount			$ 50,000,000
Common stock repurchase program, number of shares repurchased	444,813	0
Repurchase program, approximate dollar value of shares purchased	$ 24,999,996
Repurchase program, average price paid per share	$ 56.20

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Commitments and Contingencies - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2020
Commitments And Contingencies Disclosure [Abstract]
Number of months of salary paid as severance	from three to twenty-four months

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Segment Information - Additional Information (Detail) - Segment	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020
Segment Reporting [Abstract]
Number of operating segments	3	3
Description of major customers net sales		None of our clients exceeded ten percent of consolidated net sales for the three and six months ended June 30, 2020 or 2019.

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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, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue from External Customer [Line Items]
Revenues from external customers	$ 1,968,735	$ 1,836,021	$ 4,112,786	$ 3,521,487
North America Segment [Member]
Revenue from External Customer [Line Items]
Revenues from external customers	1,539,147	1,405,507	3,213,528	2,647,948
EMEA Segment [Member]
Revenue from External Customer [Line Items]
Revenues from external customers	392,017	379,174	810,903	769,349
APAC Segment [Member]
Revenue from External Customer [Line Items]
Revenues from external customers	37,571	51,340	88,355	104,190
Hardware Net Sales [Member]
Revenue from External Customer [Line Items]
Revenues from external customers	1,184,059	1,088,722	2,495,260	2,015,102
Hardware Net Sales [Member] | North America Segment [Member]
Revenue from External Customer [Line Items]
Revenues from external customers	1,023,970	935,792	2,152,456	1,684,129
Hardware Net Sales [Member] | EMEA Segment [Member]
Revenue from External Customer [Line Items]
Revenues from external customers	153,255	142,951	328,224	314,476
Hardware Net Sales [Member] | APAC Segment [Member]
Revenue from External Customer [Line Items]
Revenues from external customers	6,834	9,979	14,580	16,497
Software Net Sales [Member]
Revenue from External Customer [Line Items]
Revenues from external customers	488,874	505,613	1,025,989	1,045,905
Software Net Sales [Member] | North America Segment [Member]
Revenue from External Customer [Line Items]
Revenues from external customers	286,202	289,874	591,365	611,953
Software Net Sales [Member] | EMEA Segment [Member]
Revenue from External Customer [Line Items]
Revenues from external customers	186,781	190,086	387,863	373,234
Software Net Sales [Member] | APAC Segment [Member]
Revenue from External Customer [Line Items]
Revenues from external customers	15,891	25,653	46,761	60,718
Services Net Sales [Member]
Revenue from External Customer [Line Items]
Revenues from external customers	295,802	241,686	591,537	460,480
Services Net Sales [Member] | North America Segment [Member]
Revenue from External Customer [Line Items]
Revenues from external customers	228,975	179,841	469,707	351,866
Services Net Sales [Member] | EMEA Segment [Member]
Revenue from External Customer [Line Items]
Revenues from external customers	51,981	46,137	94,816	81,639
Services Net Sales [Member] | APAC Segment [Member]
Revenue from External Customer [Line Items]
Revenues from external customers	$ 14,846	$ 15,708	$ 27,014	$ 26,975

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Segment Information - Financial Information about Reportable Operating Segments (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Segment Reporting Information [Line Items]
Total net sales	$ 1,968,735	$ 1,836,021	$ 4,112,786	$ 3,521,487
Total costs of goods sold	1,644,346	1,560,572	3,463,061	2,997,566
Gross profit	324,389	275,449	649,725	523,921
Operating expenses:
Selling and administrative expenses	242,580	199,489	511,443	390,552
Severance and restructuring expenses	7,010	680	9,154	1,050
Acquisition and integration related expenses	611	3,163	2,077	3,163
Earnings from operations	74,188	72,117	127,051	129,156
Products [Member]
Segment Reporting Information [Line Items]
Total net sales	1,672,933	1,594,335	3,521,249	3,061,007
Total costs of goods sold	1,517,947	1,458,916	3,188,185	2,796,224
Services [Member]
Segment Reporting Information [Line Items]
Total net sales	295,802	241,686	591,537	460,480
Total costs of goods sold	126,399	101,656	274,876	201,342
North America Segment [Member]
Segment Reporting Information [Line Items]
Total net sales	1,539,147	1,405,507	3,213,528	2,647,948
Total costs of goods sold	1,294,251	1,206,448	2,711,704	2,266,282
Gross profit	244,896	199,059	501,824	381,666
Operating expenses:
Selling and administrative expenses	187,313	144,498	398,516	281,448
Severance and restructuring expenses	4,904	480	7,026	811
Acquisition and integration related expenses	611	3,163	1,873	3,163
Earnings from operations	52,068	50,918	94,409	96,244
North America Segment [Member] | Products [Member]
Segment Reporting Information [Line Items]
Total net sales	1,310,172	1,225,666	2,743,821	2,296,082
Total costs of goods sold	1,187,178	1,120,834	2,475,375	2,095,535
North America Segment [Member] | Services [Member]
Segment Reporting Information [Line Items]
Total net sales	228,975	179,841	469,707	351,866
Total costs of goods sold	107,073	85,614	236,329	170,747
EMEA Segment [Member]
Segment Reporting Information [Line Items]
Total net sales	392,017	379,174	810,903	769,349
Total costs of goods sold	323,837	314,724	683,949	647,916
Gross profit	68,180	64,450	126,954	121,433
Operating expenses:
Selling and administrative expenses	48,177	47,652	98,421	94,797
Severance and restructuring expenses	2,093	200	2,099	115
Acquisition and integration related expenses			204
Earnings from operations	17,910	16,598	26,230	26,521
EMEA Segment [Member] | Products [Member]
Segment Reporting Information [Line Items]
Total net sales	340,036	333,037	716,087	687,710
Total costs of goods sold	310,279	304,885	656,028	628,923
EMEA Segment [Member] | Services [Member]
Segment Reporting Information [Line Items]
Total net sales	51,981	46,137	94,816	81,639
Total costs of goods sold	13,558	9,839	27,921	18,993
APAC Segment [Member]
Segment Reporting Information [Line Items]
Total net sales	37,571	51,340	88,355	104,190
Total costs of goods sold	26,258	39,400	67,408	83,368
Gross profit	11,313	11,940	20,947	20,822
Operating expenses:
Selling and administrative expenses	7,090	7,339	14,506	14,307
Severance and restructuring expenses	13		29	124
Earnings from operations	4,210	4,601	6,412	6,391
APAC Segment [Member] | Products [Member]
Segment Reporting Information [Line Items]
Total net sales	22,725	35,632	61,341	77,215
Total costs of goods sold	20,490	33,197	56,782	71,766
APAC Segment [Member] | Services [Member]
Segment Reporting Information [Line Items]
Total net sales	14,846	15,708	27,014	26,975
Total costs of goods sold	$ 5,768	$ 6,203	$ 10,626	$ 11,602

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Segment Information - Summary of Total Assets by Reportable Operating Segment (Detail) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 4,341,478	$ 4,178,179
Operating Segments [Member] | North America Segment [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	4,414,439	3,814,408
Operating Segments [Member] | EMEA Segment [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	911,796	699,856
Operating Segments [Member] | APAC Segment [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	158,428	123,349
Intersegment Eliminations [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ (1,143,185)	$ (459,434)

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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, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Segment Reporting Information [Line Items]
Depreciation and amortization of property and equipment	$ 7,212	$ 4,938	$ 14,501	$ 9,982
Amortization of intangible assets	10,014	3,821	20,122	7,644
Depreciation and amortization, total	17,226	8,759	34,623	17,626
North America Segment [Member]
Segment Reporting Information [Line Items]
Depreciation and amortization of property and equipment	5,826	3,786	11,652	7,743
Amortization of intangible assets	9,371	3,636	18,864	7,272
EMEA Segment [Member]
Segment Reporting Information [Line Items]
Depreciation and amortization of property and equipment	1,249	1,012	2,577	1,967
Amortization of intangible assets	534	69	1,040	138
APAC Segment [Member]
Segment Reporting Information [Line Items]
Depreciation and amortization of property and equipment	137	140	272	272
Amortization of intangible assets	$ 109	$ 116	$ 218	$ 234

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Acquisitions - Additional Information (Detail)		3 Months Ended
	Aug. 30, 2019 USD ($) Office Teammate	Dec. 31, 2019 USD ($)	Jun. 30, 2020 USD ($)
Business Acquisition [Line Items]
Goodwill		$ 415,149,000	$ 415,897,000
PCM [Member]
Business Acquisition [Line Items]
Cash purchase price	$ 745,562,000
Acquisition, percentage of issued and outstanding shares acquired	100.00%
Cash and cash equivalents acquired	$ 84,637,000
Number of office locations globally | Office	40
Estimated fair value of net assets acquired	$ 414,596,000
Identifiable intangible assets	191,370,000
Goodwill	246,329,000
Tax deductible goodwill	0
PCM [Member] | Customer Relationships
Business Acquisition [Line Items]
Goodwill balance due to adjustment in purchase price allocation		$ 56,700,000
Identifiable intangible assets	$ 178,900,000
PCM [Member] | Trade Name [Member]
Business Acquisition [Line Items]
Useful Life	1 year
PCM [Member] | Minimum [Member]
Business Acquisition [Line Items]
Number of teammates | Teammate	4,000
PCM [Member] | Minimum [Member] | Customer Relationships
Business Acquisition [Line Items]
Useful Life	10 years
PCM [Member] | Minimum [Member] | Non-compete Agreements [Member]
Business Acquisition [Line Items]
Useful Life	2 years
PCM [Member] | Maximum [Member] | Customer Relationships
Business Acquisition [Line Items]
Useful Life	12 years
PCM [Member] | Maximum [Member] | Non-compete Agreements [Member]
Business Acquisition [Line Items]
Useful Life	3 years

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Acquisitions - Summary of Purchase Price and Estimated Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($)		6 Months Ended
	Aug. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Business Acquisition [Line Items]
Purchase price net of cash and cash equivalents acquired		$ 6,406,000	$ 3,362,000
Fair value of net assets acquired:
Excess purchase price over fair value of net assets acquired ("goodwill")		$ 415,897,000		$ 415,149,000
PCM [Member]
Business Acquisition [Line Items]
Purchase price net of cash and cash equivalents acquired	$ 660,925,000
Fair value of net assets acquired:
Current assets	531,941,000
Identifiable intangible assets - see description below	191,370,000
Property and equipment	91,213,000
Other assets	32,699,000
Current liabilities	(367,712,000)
Long-term liabilities, including deferred taxes	(64,915,000)
Total fair value of net assets acquired	414,596,000
Excess purchase price over fair value of net assets acquired ("goodwill")	$ 246,329,000

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Acquisitions - Summary of Pro Forma Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Business Acquisition [Line Items]
Net sales, As reported	$ 1,968,735	$ 1,836,021	$ 4,112,786	$ 3,521,487
Net earnings, As reported	$ 46,385	$ 49,998	$ 80,346	$ 89,325
Diluted earnings per share, As reported	$ 1.32	$ 1.38	$ 2.27	$ 2.47
PCM [Member]
Business Acquisition [Line Items]
Net sales, As reported		$ 1,836,021		$ 3,521,487
Net sales, Pro forma		2,383,698		4,602,472
Net earnings, As reported		49,998		89,325
Net earnings, Pro forma		$ 55,349		$ 92,406
Diluted earnings per share, As reported		$ 1.38		$ 2.47
Diluted earnings per share, Pro forma		$ 1.53		$ 2.56

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Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] - Unsecured Inventory Financing Facility [Member] - PNC [Member]	Jul. 06, 2020 USD ($)
Subsequent Event [Line Items]
Credit facility, borrowing capacity	$ 250,000,000
Inventory financing facility rate if vendor terms not met equal LIBOR plus	4.50%