Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 02, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | NSIT | |
Entity Registrant Name | INSIGHT ENTERPRISES INC | |
Entity Central Index Key | 0000932696 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 35,787,600 | |
Entity File Number | 0-25092 | |
Entity Tax Identification Number | 860766246 | |
Entity Address, Address Line One | 6820 South Harl Avenue | |
Entity Address, City or Town | Tempe | |
Entity Address, State or Province | Arizona | |
Entity Address, Postal Zip Code | 85283 | |
City Area Code | 480 | |
Local Phone Number | 333-3000 |
Consolidated Balance Sheets (un
Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 112,077 | $ 142,655 |
Accounts receivable, net of allowance for doubtful accounts of $10,414 and $10,462, respectively | 2,284,922 | 1,931,736 |
Inventories | 179,577 | 148,503 |
Other current assets | 110,850 | 115,683 |
Total current assets | 2,687,426 | 2,338,577 |
Property and equipment, net of accumulated depreciation and amortization of $252,691 and $331,700, respectively | 73,766 | 72,954 |
Goodwill | 166,392 | 166,841 |
Intangible assets, net of accumulated amortization of $60,233 and $52,942, respectively | 104,859 | 112,179 |
Deferred income taxes | 6,638 | 7,967 |
Other assets | 246,916 | 77,429 |
Total assets | 3,285,997 | 2,775,947 |
Current liabilities: | ||
Accounts payable—trade | 1,426,158 | 978,104 |
Accounts payable—inventory financing facility | 260,890 | 304,130 |
Accrued expenses and other current liabilities | 190,474 | 190,733 |
Current portion of long-term debt | 1,421 | 1,395 |
Deferred revenue | 70,019 | 62,300 |
Total current liabilities | 1,948,962 | 1,536,662 |
Long-term debt | 45,930 | 195,525 |
Deferred income taxes | 524 | 683 |
Other liabilities | 210,998 | 56,088 |
Total liabilities | 2,206,414 | 1,788,958 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value, 3,000 shares authorized; no shares issued | ||
Common stock, $0.01 par value, 100,000 shares authorized; 35,781 shares at June 30, 2019 and 35,482 shares at December 31, 2018 issued and outstanding | 358 | 355 |
Additional paid-in capital | 325,263 | 323,622 |
Retained earnings | 793,990 | 704,665 |
Accumulated other comprehensive loss – foreign currency translation adjustments | (40,028) | (41,653) |
Total stockholders’ equity | 1,079,583 | 986,989 |
Total liabilities and stockholders' equity | $ 3,285,997 | $ 2,775,947 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 10,414 | $ 10,462 |
Accumulated depreciation and amortization of property and equipment | 252,691 | 331,700 |
Accumulated amortization of intangible assets | $ 60,233 | $ 52,942 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 3,000,000 | 3,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 35,781,000 | 35,482,000 |
Common stock, shares outstanding | 35,781,000 | 35,482,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net sales: | ||||
Total net sales | $ 1,836,021 | $ 1,840,870 | $ 3,521,487 | $ 3,583,364 |
Costs of goods sold: | ||||
Total costs of goods sold | 1,560,572 | 1,576,493 | 2,997,566 | 3,078,724 |
Gross profit | 275,449 | 264,377 | 523,921 | 504,640 |
Operating expenses: | ||||
Selling and administrative expenses | 199,489 | 189,464 | 390,552 | 377,644 |
Severance and restructuring expenses | 680 | 382 | 1,050 | 2,026 |
Acquisition related expenses | 3,163 | 94 | 3,163 | 94 |
Earnings from operations | 72,117 | 74,437 | 129,156 | 124,876 |
Non-operating (income) expense: | ||||
Interest income | (266) | (170) | (537) | (323) |
Interest expense | 4,601 | 5,102 | 9,424 | 11,117 |
Net foreign currency exchange (gain) loss | (330) | (275) | 381 | (520) |
Other expense, net | 676 | 324 | 1,015 | 626 |
Earnings before income taxes | 67,436 | 69,456 | 118,873 | 113,976 |
Income tax expense | 17,438 | 17,977 | 29,548 | 29,494 |
Net earnings | $ 49,998 | $ 51,479 | $ 89,325 | $ 84,482 |
Net earnings per share: | ||||
Basic | $ 1.40 | $ 1.45 | $ 2.50 | $ 2.37 |
Diluted | $ 1.38 | $ 1.44 | $ 2.47 | $ 2.34 |
Shares used in per share calculations: | ||||
Basic | 35,772 | 35,483 | 35,691 | 35,698 |
Diluted | 36,111 | 35,815 | 36,107 | 36,039 |
Products [Member] | ||||
Net sales: | ||||
Total net sales | $ 1,594,335 | $ 1,618,823 | $ 3,061,007 | $ 3,176,615 |
Costs of goods sold: | ||||
Total costs of goods sold | 1,458,916 | 1,488,387 | 2,796,224 | 2,903,373 |
Services [Member] | ||||
Net sales: | ||||
Total net sales | 241,686 | 222,047 | 460,480 | 406,749 |
Costs of goods sold: | ||||
Total costs of goods sold | $ 101,656 | $ 88,106 | $ 201,342 | $ 175,351 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net earnings | $ 49,998 | $ 51,479 | $ 89,325 | $ 84,482 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (290) | (15,022) | 1,625 | (10,431) |
Total comprehensive income | $ 49,708 | $ 36,457 | $ 90,950 | $ 74,051 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] |
Beginning Balance at Dec. 31, 2017 | $ 843,469 | $ 358 | $ 317,155 | $ (24,264) | $ 550,220 | |
Beginning Balance, Shares at Dec. 31, 2017 | 35,829 | |||||
Cumulative effect of accounting change | 7,176 | 7,176 | ||||
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes, Value | (2,925) | $ 3 | (2,928) | |||
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes, Shares | 271 | |||||
Stock-based compensation expense | 7,047 | 7,047 | ||||
Repurchase of treasury stock, Amount | (22,069) | $ (22,069) | ||||
Repurchase of treasury stock, Shares | (641) | |||||
Retirement of treasury stock, Amount | $ (6) | $ 22,069 | (5,655) | (16,408) | ||
Retirement of treasury stock, Shares | (641) | 641 | ||||
Foreign currency translation adjustments, net of tax | (10,431) | (10,431) | ||||
Net earnings | 84,482 | 84,482 | ||||
Ending Balance at Jun. 30, 2018 | 906,749 | $ 355 | 315,619 | (34,695) | 625,470 | |
Ending Balance, Shares at Jun. 30, 2018 | 35,459 | |||||
Beginning Balance at Mar. 31, 2018 | 880,859 | $ 358 | 315,493 | (19,673) | 584,681 | |
Beginning Balance, Shares at Mar. 31, 2018 | 35,848 | |||||
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes, Value | (40) | $ 1 | (41) | |||
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes, Shares | 31 | |||||
Stock-based compensation expense | 3,863 | 3,863 | ||||
Repurchase of treasury stock, Amount | (14,390) | $ (14,390) | ||||
Repurchase of treasury stock, Shares | (420) | |||||
Retirement of treasury stock, Amount | $ (4) | $ 14,390 | (3,696) | (10,690) | ||
Retirement of treasury stock, Shares | (420) | 420 | ||||
Foreign currency translation adjustments, net of tax | (15,022) | (15,022) | ||||
Net earnings | 51,479 | 51,479 | ||||
Ending Balance at Jun. 30, 2018 | 906,749 | $ 355 | 315,619 | (34,695) | 625,470 | |
Ending Balance, Shares at Jun. 30, 2018 | 35,459 | |||||
Beginning Balance at Dec. 31, 2018 | 986,989 | $ 355 | 323,622 | (41,653) | 704,665 | |
Beginning Balance, Shares at Dec. 31, 2018 | 35,482 | |||||
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes, Value | (6,153) | $ 3 | (6,156) | |||
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes, Shares | 299 | |||||
Stock-based compensation expense | 7,797 | 7,797 | ||||
Foreign currency translation adjustments, net of tax | 1,625 | 1,625 | ||||
Net earnings | 89,325 | 89,325 | ||||
Ending Balance at Jun. 30, 2019 | 1,079,583 | $ 358 | 325,263 | (40,028) | 793,990 | |
Ending Balance, Shares at Jun. 30, 2019 | 35,781 | |||||
Beginning Balance at Mar. 31, 2019 | 1,026,218 | $ 358 | 321,606 | (39,738) | 743,992 | |
Beginning Balance, Shares at Mar. 31, 2019 | 35,761 | |||||
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes, Value | (25) | (25) | ||||
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes, Shares | 20 | |||||
Stock-based compensation expense | 3,682 | 3,682 | ||||
Foreign currency translation adjustments, net of tax | (290) | (290) | ||||
Net earnings | 49,998 | 49,998 | ||||
Ending Balance at Jun. 30, 2019 | $ 1,079,583 | $ 358 | $ 325,263 | $ (40,028) | $ 793,990 | |
Ending Balance, Shares at Jun. 30, 2019 | 35,781 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net earnings | $ 89,325 | $ 84,482 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization of property and equipment | 9,982 | 10,712 |
Amortization of intangible assets | 7,644 | 7,214 |
Provision for losses on accounts receivable | 2,346 | 1,336 |
Write-downs of inventories | 2,350 | 1,396 |
Write-off of property and equipment | 309 | |
Non-cash stock-based compensation | 7,797 | 7,047 |
Deferred income taxes | 1,180 | 2,020 |
Changes in assets and liabilities: | ||
Increase in accounts receivable | (354,717) | (287,191) |
(Increase) decrease in inventories | (33,359) | 18,281 |
(Increase) decrease in other assets | (93,714) | 16,717 |
Increase in accounts payable | 448,682 | 450,471 |
Increase in deferred revenue | 8,153 | 13,733 |
Increase in accrued expenses and other liabilities | 86,869 | 24,428 |
Net cash provided by operating activities | 182,538 | 350,955 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (10,584) | (10,644) |
Acquisitions, net of cash and cash equivalents acquired | (3,362) | |
Net cash used in investing activities | (13,946) | (10,644) |
Cash flows from financing activities: | ||
Borrowings on senior revolving credit facility | 89,936 | 280,184 |
Repayments on senior revolving credit facility | (89,936) | (397,684) |
Borrowings on accounts receivable securitization financing facility | 1,919,500 | 1,696,500 |
Repayments on accounts receivable securitization financing facility | (2,068,500) | (1,721,500) |
Repayments under Term Loan A | (6,563) | |
Repayments under other financing agreements | (1,835) | |
Payments on finance lease obligations | (603) | (580) |
Net repayments under inventory financing facility | (43,240) | (15,766) |
Payment of debt issuance costs | (270) | |
Payment of payroll taxes on stock-based compensation through shares withheld | (6,154) | (2,925) |
Repurchases of common stock | (22,069) | |
Net cash used in financing activities | (198,997) | (192,508) |
Foreign currency exchange effect on cash, cash equivalents and restricted cash balances | (183) | (5,541) |
(Decrease) increase in cash, cash equivalents and restricted cash | (30,588) | 142,262 |
Cash, cash equivalents and restricted cash at beginning of period | 144,293 | 107,445 |
Cash, cash equivalents and restricted cash at end of period | $ 113,705 | $ 249,707 |
Basis of Presentation and Recen
Basis of Presentation and Recently Issued Accounting Standards | 6 Months Ended |
Jun. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation and Recently Issued Accounting Standards | 1. Basis of Presentation and Recently Issued Accounting Standards We empower organizations of all sizes with Insight Intelligent Technology Solutions TM Operating Segment Geography North America United States and Canada EMEA Europe, Middle East and Africa APAC Asia-Pacific Our offerings in North America and certain countries in EMEA and APAC include hardware, software and services. Our offerings in the remainder of our EMEA and APAC segments consist of largely software and certain software-related services. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly our financial position as of June 30, 2019 and our results of operations for the three and six months ended June 30, 2019 and 2018 and cash flows for the six months ended June 30, 2019 and 2018. The consolidated balance sheet as of December 31, 2018 was derived from the audited consolidated balance sheet at such date. The accompanying unaudited consolidated financial statements and notes have been prepared in accordance with the rules and regulations promulgated by the Securities and Exchange Commission and consequently do not include all of the disclosures normally required by United States generally accepted accounting principles (“GAAP”). The results of operations for interim periods are not necessarily indicative of results for the full year, due in part to the seasonal nature of our business. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including the related notes thereto, in our Annual Report on Form 10-K for the year ended December 31, 2018. Our results of operations include the results of Cardinal Solutions Group, Inc. (“Cardinal”) from its acquisition date of August 1, 2018. The consolidated financial statements include the accounts of Insight Enterprises, Inc. and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Additionally, these estimates and assumptions affect the reported amounts of net sales and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, we evaluate our estimates, including those related to sales recognition, anticipated achievement levels under partner funding programs, assumptions related to stock-based compensation valuation, allowances for doubtful accounts, valuation of inventories, litigation-related obligations, valuation allowances for deferred tax assets and impairment of long-lived assets, including purchased intangibles and goodwill, if indicators of potential impairment exist. Recently Issued Accounting Standards In June 2016, the Financial Accounting Standards Board’s (“FASB”) issued Accounting Standard Update (“ASU”) No. 2016-13, “Financial Instruments – Credit Losses.” The new standard is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held at each reporting date. The new standard is effective for interim and annual periods beginning after December 15, 2019, and early adoption is permitted. We will adopt the new standard as of January 1, 2020 and do not expect the adoption to have a material effect on our consolidated financial statements. In April 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.” The new standard provides changes for how a company considers expected recoveries and contractual extensions or renewal options when estimating expected credit losses. The new standard is effective with the adoption of ASU No. 2016-13. We will adopt the new standard as of January 1, 2020 and do not expect the adoption to have a material effect on our consolidated financial statements. Effective January 1, 2019, we adopted the FASB ASU No. 2016-02— Leases (Topic 842) Adoption of the new standard resulted in the recording of additional net operating lease ROU assets and lease liabilities of $65,922,000 and $70,512,000, respectively, as of January 1, 2019. The difference between the additional lease assets and lease liabilities reflected existing accrued and prepaid rent balances that were reclassified to the operating lease ROU asset at January 1, 2019. The standard did not materially impact our consolidated net earnings and had no impact on cash flows. There have been no other material changes in or additions to the recently issued accounting standards as previously reported in Note 1 to our Consolidated Financial Statements in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2018 that affect or may affect our current financial statements. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | 2. Leases We lease office space, distribution centers, land, vehicles and equipment. Lease agreements with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. Certain lease agreements include one or more options to renew, with renewal terms that can extend the lease term from one to five years The exercise of lease renewal options is at our sole discretion. Certain of our lease agreements include rental payments adjus ted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Significant Accounting Policy We determine if a contract or arrangement is, or contains, a lease at inception. Balances related to operating leases are included in other assets, other current liabilities, and other liabilities in our consolidated balance sheet. Balances related to financing leases are included in property and equipment, current portion of long-term debt, and long-term debt in our consolidated balance sheet. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU asset includes any prepaid lease payments and additional direct costs and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. The following table provides information about the financial statement classification of our lease balances reported within the consolidated balances sheets as of June 30, 2019 and January 1, 2019 (in thousands): Leases Classification June 30, 2019 January 1, 2019 Assets Operating lease assets Other assets $ 60,286 $ 65,922 Finance lease assets Property and equipment (a) 1,350 1,693 Total lease assets $ 61,636 $ 67,615 Liabilities Current Operating lease liabilities Accrued expenses and other current liabilities $ 15,096 $ 15,788 Finance lease liabilities Current portion of long-term debt 1,421 1,399 Non-current Operating lease liabilities Other liabilities 50,252 54,724 Finance lease liabilities Long-term debt 930 1,521 Total lease liabilities $ 67,699 $ 73,432 (a) Recorded net of accumulated amortization of $344,000 as of June 30, 2019 and there is no accumulated amortization as of January 1, 2019. The following table provides information about the financial statement classification of our lease expenses reported within the consolidated statement of operations for the three and six months ended June 30, 2019 (in thousands): Lease cost Classification Three months ended June 30, 2019 Six months ended June 30, 2019 Operating lease cost (a) (b) Selling and administrative expenses $ 4,850 $ 9,768 Finance lease cost Amortization of leased assets Selling and administrative expenses 173 344 Interest on lease liabilities Interest expense, net 23 50 Total lease cost $ 5,046 $ 10,162 (a) Includes immaterial amounts recorded to cost of goods sold. (b) Excludes short-term and variable lease costs, which are immaterial. Future minimum lease payments under non-cancelable leases as of June 30, 2019 are as follows (in thousands): Operating leases Finance leases Total Remainder of 2019 $ 9,416 $ 869 $ 10,285 2020 14,985 1,150 16,135 2021 12,470 432 12,902 2022 9,663 — 9,663 2023 6,557 — 6,557 After 2023 21,339 — 21,339 Total lease payments 74,430 2,451 76,881 Less: Interest (9,082 ) (100 ) (9,182 ) Present value of lease liabilities $ 65,348 $ 2,351 $ 67,699 Operating lease payments include $13.4 The following table provides information about the remaining lease terms and discount rates applied as of June 30, 2019: June 30, 2019 Weighted average remaining lease term (years) Operating leases 6.56 Finance leases 1.94 Weighted average discount rate (%) Operating leases 3.86 Finance leases 4.84 The following table provides other information related to leases for the six months ended June 30, 2019 (in thousands): Six months ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 9,269 Leased assets obtained in exchange for new operating lease liabilities 2,872 Operating Leases pre-Topic 842 adoption We have non-cancelable operating leases with third parties, primarily for administrative and distribution center space and computer equipment. Our facilities leases generally provide for periodic rent increases and many contain escalation clauses and renewal options. We recognize rent expense on a straight-line basis over the lease term. Rental expense for these third-party operating leases was $20,114,000, $19,126,000 and $14,444,000 in 2018, 2017 and 2016, respectively, and is included in selling and administrative expenses. Future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) as of December 31, 2018 are as follows (in thousands): Years Ending December 31, 2019 $ 21,499 2020 15,580 2021 12,121 2022 9,150 2023 6,296 Thereafter 7,238 Total minimum lease payments $ 71,884 Amounts in the table above exclude approximately $1.6 million in 2019 in non-cancellable rental income. |
Sales Recognition
Sales Recognition | 6 Months Ended |
Jun. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Sales Recognition | 3 . Sales Recognition In the following table, revenue is disaggregated by our reportable operating segments, which are primarily defined by Three Months Ended June 30, 2019 North America EMEA APAC Consolidated Major Offerings Hardware $ 935,792 $ 142,951 $ 9,979 $ 1,088,722 Software 289,874 190,086 25,653 505,613 Services 179,841 46,137 15,708 241,686 $ 1,405,507 $ 379,174 $ 51,340 $ 1,836,021 Major Client Groups Large Enterprise / Corporate $ 1,071,611 $ 281,013 $ 16,785 $ 1,369,409 Public Sector 156,381 78,343 15,096 249,820 Small and Medium-Sized Businesses 177,515 19,818 19,459 216,792 $ 1,405,507 $ 379,174 $ 51,340 $ 1,836,021 Revenue Recognition based on acting as Principal or Agent in the Transaction Gross revenue recognition (Principal) $ 1,338,948 $ 347,336 $ 43,284 $ 1,729,568 Net revenue recognition (Agent) 66,559 31,838 8,056 106,453 $ 1,405,507 $ 379,174 $ 51,340 $ 1,836,021 Three Months Ended June 30, 2018 North America EMEA APAC Consolidated Major Offerings Hardware $ 898,143 $ 171,336 $ 9,318 $ 1,078,797 Software 307,570 193,116 39,340 540,026 Services 163,053 45,084 13,910 222,047 $ 1,368,766 $ 409,536 $ 62,568 $ 1,840,870 Major Client Groups Large Enterprise / Corporate $ 1,006,406 $ 298,796 $ 14,089 $ 1,319,291 Public Sector 135,709 94,487 29,503 259,699 Small and Medium-Sized Businesses 226,651 16,253 18,976 261,880 $ 1,368,766 $ 409,536 $ 62,568 $ 1,840,870 Revenue Recognition based on acting as Principal or Agent in the Transaction Gross revenue recognition (Principal) $ 1,304,301 $ 378,098 $ 55,079 $ 1,737,478 Net revenue recognition (Agent) 64,465 31,438 7,489 103,392 $ 1,368,766 $ 409,536 $ 62,568 $ 1,840,870 Six Months Ended June 30, 2019 North America EMEA APAC Consolidated Major Offerings Hardware $ 1,684,129 $ 314,476 $ 16,497 $ 2,015,102 Software 611,953 373,234 60,718 1,045,905 Services 351,866 81,639 26,975 460,480 $ 2,647,948 $ 769,349 $ 104,190 $ 3,521,487 Major Client Groups Large Enterprise / Corporate $ 2,048,452 $ 541,620 $ 30,092 $ 2,620,164 Public Sector 253,498 187,409 41,250 482,157 Small and Medium-Sized Businesses 345,998 40,320 32,848 419,166 $ 2,647,948 $ 769,349 $ 104,190 $ 3,521,487 Revenue Recognition based on acting as Principal or Agent in the Transaction Gross revenue recognition (Principal) $ 2,521,026 $ 714,501 $ 91,150 $ 3,326,677 Net revenue recognition (Agent) 126,922 54,848 13,040 194,810 $ 2,647,948 $ 769,349 $ 104,190 $ 3,521,487 Six Months Ended June 30, 2018 North America EMEA APAC Consolidated Major Offerings Hardware $ 1,771,485 $ 358,346 $ 16,478 $ 2,146,309 Software 568,629 383,318 78,359 1,030,306 Services 307,032 75,006 24,711 406,749 $ 2,647,146 $ 816,670 $ 119,548 $ 3,583,364 Major Client Groups Large Enterprise / Corporate $ 1,959,215 $ 571,435 $ 27,055 $ 2,557,705 Public Sector 246,214 211,101 60,879 518,194 Small and Medium-Sized Businesses 441,717 34,134 31,614 507,465 $ 2,647,146 $ 816,670 $ 119,548 $ 3,583,364 Revenue Recognition based on acting as Principal or Agent in the Transaction Gross revenue recognition (Principal) $ 2,534,713 $ 766,435 $ 106,904 $ 3,408,052 Net revenue recognition (Agent) 112,433 50,235 12,644 175,312 $ 2,647,146 $ 816,670 $ 119,548 $ 3,583,364 The following table provides information about receivables, contract assets and contract liabilities as of June 30, 2019 and December 31, 2018 (in thousands): June 30, December 31, 2019 2018 Current receivables, which are included in “Accounts receivable, net” $ 2,284,922 $ 1,931,736 Non-current receivables, which are included in “Other assets” 142,890 38,157 Contract assets, which are included in “Other current assets” 958 892 Contract liabilities, which are included in “Deferred revenue” and “Other liabilities” 89,737 82,117 Significant changes in the contract assets and the contract liabilities balances during the six months ended June 30, 2019 are as follows (in thousands): Increase (Decrease) Contract Contract Assets Liabilities Balances at December 31, 2018 $ 892 $ 82,117 Reclassification of the beginning contract liabilities to revenue, as the result of performance obligations satisfied — (36,525 ) Cash received in advance and not recognized as revenue — 44,145 Reclassification of the beginning contract assets to receivables, as the result of rights to consideration becoming unconditional (251 ) — Contract assets recognized, net of reclassification to receivables 317 — Balances at June 30, 2019 $ 958 $ 89,737 The following table includes estimated net sales related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2019 that are expected to be recognized in the future (in thousands): Products Services Total Remainder of 2019 $ 6 $ 57,666 $ 57,672 2020 6 40,410 40,416 2021 — 16,058 16,058 2022 — 6,414 6,414 2023 and thereafter — 3,403 3,403 Total remaining performance obligations $ 12 $ 123,951 $ 123,963 With the exception of remaining performance obligations associated with our OneCall Support Services contracts which are included in the table above regardless of original duration, r emaining performance obligations that have original expected durations of one year or less are not included in the table above. Amounts not included in the table above have an average original expected duration of nine months. The majority of our backlog historically has been and continues to be open cancelable purchase orders. We do not believe that backlog as of any particular date is predictive of future results, therefore we do not include performance obligations under open cancelable purchase orders, which do not qualify for revenue recognition, in the table above. |
Net Earnings Per Share ("EPS")
Net Earnings Per Share ("EPS") | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Earnings Per Share ("EPS") | 4 . Net Earnings Per Share (“EPS”) Basic EPS is computed by dividing net earnings available to common stockholders by the weighted average number of common shares outstanding during each period. Diluted EPS is computed on the basis of the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding restricted stock units (“RSUs”). A reconciliation of the denominators of the basic and diluted EPS calculations follows (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Numerator: Net earnings $ 49,998 $ 51,479 $ 89,325 $ 84,482 Denominator: Weighted average shares used to compute basic EPS 35,772 35,483 35,691 35,698 Dilutive potential common shares due to dilutive RSUs, net of tax effect 339 332 416 341 Weighted average shares used to compute diluted EPS 36,111 35,815 36,107 36,039 Net earnings per share: Basic $ 1.40 $ 1.45 $ 2.50 $ 2.37 Diluted $ 1.38 $ 1.44 $ 2.47 $ 2.34 For the three and six months ended June 30, 2019, 1,000 and 83,000, respectively, of our RSUs were not included in the diluted EPS calculations because their inclusion would have been anti-dilutive. These share-based awards could be dilutive in the future. There were 13,000 and 17,000 anti-dilutive RSUs for the three and six months ended June 30, 2018, respectively. |
Debt, Inventory Financing Facil
Debt, Inventory Financing Facility, Finance Leases and Other Financing Obligations | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt, Inventory Financing Facility, Finance Leases and Other Financing Obligations | 5 . Debt, Inventory Financing Facility, Finance Leases and Other Financing Obligations Debt Our long-term debt consists of the following (in thousands): June 30, 2019 December 31, 2018 Senior revolving credit facility $ — $ — Accounts receivable securitization financing facility 45,000 194,000 Finance leases and other financing obligations 2,351 2,920 Total 47,351 196,920 Less: current portion of long-term debt (1,421 ) (1,395 ) Long-term debt $ 45,930 $ 195,525 Our senior revolving credit facility (“revolving facility”) has an aggregate U.S. dollar equivalent maximum borrowing amount of $350,000,000, including a maximum borrowing capacity that may be used for borrowing in certain foreign currencies of $50,000,000, and matures on June 23, 2021. Our accounts receivable securitization financing facility (the “ABS facility”) has a maximum aggregate borrowing availability of $250,000,000, and matures on June 23, 2021. While the ABS facility has a stated maximum amount, the actual availability under the ABS facility is limited by the quantity and quality of the underlying accounts receivable. As of June 30, 2019 , qualified receivables were sufficient to permit access to the full $ facility amount , of which $ was outstanding . Our consolidated debt balance that can be outstanding at the end of any fiscal quarter under our revolving facility and our ABS facility is limited by certain financial covenants, particularly a maximum leverage ratio. The maximum leverage ratio is calculated as aggregate debt outstanding divided by the sum of our trailing twelve month net earnings (loss) plus (i) interest expense, excluding non-cash imputed interest on our inventory financing facility, (ii) income tax expense (benefit), (iii) depreciation and amortization, (iv) non-cash stock-based compensation, (v) extraordinary or non-recurring non-cash losses or expenses and (vi) certain cash restructuring and acquisition-related charges and synergies, not to exceed a specified cap (“adjusted earnings”). The maximum leverage ratio permitted under the facilities is currently 3.0 Inventory Financing Facility As of June 30, 2019, our inventory financing facility had a maximum borrowing capacity of $400,000,000, of which $260,890,000 was outstanding at June 30, 2019. The inventory financing facility matures on June 23, 2021. If balances are not paid within stated vendor terms, they will accrue interest at prime plus 1.25%. Amounts outstanding under this facility are classified separately as accounts payable – inventory financing facility in the accompanying consolidated balance sheets. Further, see Note 13 for additional information. Finance Lease and Other Financing Our finance lease obligations totaled $ 2,351,000 The current and long-term portions of our finance leases are included in the current and long-term portions of long-term debt in the table above and in our consolidated balance sheets as of June 30, 2019 and December 31, 2018. Further, see Note 2 for additional information. |
Restricted Cash
Restricted Cash | 6 Months Ended |
Jun. 30, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Restricted Cash | 6 . Restricted Cash Amounts included in restricted cash represent those required to be set aside by a contractual agreement with a lessor related to certain leased office space in foreign jurisdictions. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the balance sheets that sum to the total of the same such amounts shown in the statements of cash flows for the six months ended June 30, 2019 and 2018 (in thousands): June 30, 2019 December 31, 2018 Cash and cash equivalents $ 112,077 $ 142,655 Restricted cash included in other current assets — 8 Restricted cash included in other non-current assets 1,628 1,630 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 113,705 $ 144,293 June 30, 2018 December 31, 2017 Cash and cash equivalents $ 248,122 $ 105,831 Restricted cash included in other current assets 9 46 Restricted cash included in other non-current assets 1,576 1,568 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 249,707 $ 107,445 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 7. Stock-Based Compensation We recorded the following pre-tax amounts in selling and administrative expenses for stock-based compensation, by operating segment, in the accompanying consolidated financial statements (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 North America $ 2,740 $ 2,945 $ 5,863 $ 5,335 EMEA 814 790 1,684 1,480 APAC 128 128 250 232 Total Consolidated $ 3,682 $ 3,863 $ 7,797 $ 7,047 As of June 30, 2019, total compensation cost related to nonvested RSUs not yet recognized is $31,485,000, which is expected to be recognized over the next 1.65 years on a weighted-average basis. The following table summarizes our RSU activity during the six months ended June 30, 2019: Number Weighted Average Grant Date Fair Value Fair Value Nonvested at January 1, 2019 1,020,930 $ 36.10 Granted (a) 350,987 57.33 Vested, including shares withheld to cover taxes (407,961 ) 34.08 $ 13,903,311 (b) Forfeited (47,051 ) 41.33 Nonvested at June 30, 2019(a) 916,905 44.86 $ 53,363,871 (c) (a) Includes 84,602 RSUs subject to remaining performance conditions. The number of RSUs subject to performance conditions are based on the Company achieving 97% of its 2019 targeted financial results. The number of RSUs ultimately awarded under the performance-based RSUs varies based on actual achieved financial results for 2019. ( b ) The aggregate fair value of vested RSUs represents the total pre-tax fair value, based on the closing stock price on the day of vesting, which would have been received by holders of RSUs had all such holders sold their underlying shares on that date. ( c ) The aggregate fair value of the nonvested RSUs and the RSUs expected to vest represents the total pre-tax fair value, based on our closing stock price of $58.20 as of June 28, 2019 (the last trading day of the quarter), which would have been received by holders of RSUs had all such holders sold their underlying shares on that date. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8 . Income Taxes Our effective tax rate for the three and six months ended June 30, 2019 was 25.9% and 24.9%, respectively. For the three months ended June 30, 2019, our effective tax rate was higher than the United States federal statutory rate of 21.0% due primarily to state income taxes, net of federal benefit, higher taxes on earnings in foreign jurisdictions, and the effect of non-deductible acquisition-related expenses partially offset by the recognition of tax benefits related to research and development activities. For the six months ended June 30, 2019, our effective tax rate was higher than the United States federal statutory rate of 21.0% due primarily to state income taxes, net of federal benefit, and higher taxes on earnings in foreign jurisdictions partially offset by tax benefits on the settlement of employee share-based awards and the recognition of tax benefits related to research and development activities. Our effective tax rate for both the three and six months ended June 30, 2018 was 25.9%. For the three and six months ended June 30, 2018, our effective tax rate was higher than the United States federal statutory rate of 21.0% due primarily to state income taxes net of federal benefit. As of June 30, 2019, and December 31, 2018, we had approximately $8,337,000 and $6,849,000, respectively, of unrecognized tax benefits. Of these amounts, approximately $440,000 and $313,000, respectively, related to accrued interest. In the future, if recognized, the liability associated with uncertain tax positions would affect our effective tax rate. We do not believe there will be any changes over the next 12 months that would have a material effect on our effective tax rate. Several of our subsidiaries are currently under audit for tax years 2012 through 2017. Although the timing of the resolutions and/or closures of audits is highly uncertain, it is reasonably possible that the examination phase of these audits may be concluded within the next 12 months, which could increase or decrease the balance of our gross unrecognized tax benefits. However, based on the status of the various examinations in multiple jurisdictions, an estimate of the range of reasonably possible outcomes cannot be made at this time, but the estimated effect on our income tax expense and net earnings is not expected to be significant. |
Share Repurchase Program
Share Repurchase Program | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Share Repurchase Program | 9 . Share Repurchase Program On February 13, 2018, our Board of Directors authorized the repurchase of up to $50,000,000 of our common stock. Our share repurchases will be made on the open market, subject to Rule 10b-18 or in privately negotiated transactions, through block trades, through 10b5-1 plans or otherwise, at management’s discretion. The amount of shares purchased and the timing of the purchases will be based on market conditions, working capital requirements, general business conditions and other factors. We intend to retire the repurchased shares. During the six months ended June 30, 2019, we did no repurchased 641,211 shares of our common stock on the open market at a total cost of approximately $22,069,000 (an average price of $34.42 per share). All shares repurchased were retired. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10 . Commitments and Contingencies Contractual In the ordinary course of business, we issue performance bonds to secure our performance under certain contracts or state tax requirements. As of June 30, 2019, we had approximately $3,939,000 of performance bonds outstanding. These bonds are issued on our behalf by a surety company on an unsecured basis; however, if the surety company is ever required to pay out under the bonds, we have contractually agreed to reimburse the surety company. Management believes that payments, if any, related to these performance bonds are not probable at June 30, 2019 . Accordingly, we have not accrued any liabilities related to such performance bonds in our consolidated financial statements. Employment Contracts and Severance Plans We have employment contracts with, and severance plans covering, certain officers and management teammates under which severance payments would become payable in the event of specified terminations without cause or terminations under certain circumstances after a change in control. In addition, vesting of outstanding nonvested RSUs would accelerate following a change in control. If severance payments under the current employment agreements or plan payments were to become payable, the severance payments would generally range from three to twenty-four months of salary. Indemnifications From time to time, in the ordinary course of business, we enter into contractual arrangements under which we agree to indemnify either our clients or third-party service providers from certain losses incurred relating to services performed on our behalf or for losses arising from defined events, which may include litigation or claims relating to past performance. These arrangements include, but are not limited to, the indemnification of our clients for certain claims arising out of our performance under our sales contracts, the indemnification of our landlords for certain claims arising from our use of leased facilities and the indemnification of the lenders that provide our credit facilities for certain claims arising from their extension of credit to us. Such indemnification obligations may not be subject to maximum loss clauses. Management believes that payments, if any, related to these indemnifications are not probable at June 30, 2019. Accordingly, we have not accrued any liabilities related to such indemnifications in our consolidated financial statements. We have entered into separate indemnification agreements with certain of our executive officers and with each of our directors. These agreements require us, among other requirements, to indemnify such officers and directors against expenses (including attorneys’ fees), judgments and settlements incurred by such individual in connection with any action arising out of such individual’s status or service as our executive officer or director (subject to exceptions such as where the individual failed to act in good faith or in a manner the individual reasonably believed to be in, or not opposed to, the best interests of the Company) and to advance expenses incurred by such individual with respect to which such individual may be entitled to indemnification by us. There are no pending legal proceedings that involve the indemnification of any of the Company’s directors or officers. Contingencies Related to Third-Party Review From time to time, we are subject to potential claims and assessments from third parties. We are also subject to various governmental, client and partner audits. We continually assess whether or not such claims have merit and warrant accrual. Where appropriate, we accrue estimates of anticipated liabilities in the consolidated financial statements. Such estimates are subject to change and may affect our results of operations and our cash flows. Legal Proceedings From time to time, we are party to various legal proceedings arising in the ordinary course of business, including preference payment claims asserted in client bankruptcy proceedings, indemnification claims, claims of alleged infringement of patents, trademarks, copyrights and other intellectual property rights, claims of alleged non-compliance with contract provisions and claims related to alleged violations of laws and regulations. We regularly evaluate the status of the legal proceedings in which we are involved to assess whether a loss is probable or there is a reasonable possibility that a loss, or an additional loss, may have been incurred and determine if accruals are appropriate. If accruals are not appropriate, we further evaluate each legal proceeding to assess whether an estimate of possible loss or range of possible loss can be made for disclosure. Although litigation is inherently unpredictable, we believe that we have adequate provisions for any probable and estimable losses. It is possible, nevertheless, that our consolidated financial position, results of operations or liquidity could be materially and adversely affected in any particular period by the resolution of a legal proceeding. Legal expenses related to defense, negotiations, settlements, rulings and advice of outside legal counsel are expensed as incurred. The Company is not involved in any pending or threatened legal proceedings that it believes would reasonably be expected to have a material adverse effect on its business, financial condition or results of operations. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 11. Segment Information We operate in three reportable geographic operating segments: North America; EMEA; and APAC. Our offerings in North America and certain countries in EMEA and APAC include IT hardware, software and services. Our offerings in the remainder of our EMEA and APAC segments are largely software and certain software-related services. The following table summarizes net sales by offering for North America, EMEA and APAC for the three and six months ended June 30, 2019 and 2018 (in thousands): North America EMEA APAC Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, Sales Mix 2019 2018 2019 2018 2019 2018 Hardware $ 935,792 $ 898,143 $ 142,951 $ 171,336 $ 9,979 $ 9,318 Software 289,874 307,570 190,086 193,116 25,653 39,340 Services 179,841 163,053 46,137 45,084 15,708 13,910 $ 1,405,507 $ 1,368,766 $ 379,174 $ 409,536 $ 51,340 $ 62,568 North America EMEA APAC Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, Sales Mix 2019 2018 2019 2018 2019 2018 Hardware $ 1,684,129 $ 1,771,485 $ 314,476 $ 358,346 $ 16,497 $ 16,478 Software 611,953 568,629 373,234 383,318 60,718 78,359 Services 351,866 307,032 81,639 75,006 26,975 24,711 $ 2,647,948 $ 2,647,146 $ 769,349 $ 816,670 $ 104,190 $ 119,548 All significant intercompany transactions are eliminated upon consolidation, and there are no differences between the accounting policies used to measure profit and loss for our segments or on a consolidated basis. Net sales are defined as net sales to external clients. None of our clients exceeded ten percent of consolidated net sales for the three or six months ended June 30, 2019 or 2018. A portion of our operating segments’ selling and administrative expenses arise from shared services and infrastructure that we have historically provide d to them in order to realize economies of scale and to use resources efficiently . These expenses, collectively identified as corporate charges, include senior management expenses, internal audit, legal, tax, insurance services, treasury and other corporate infrastructure expenses. Charges are allocated to our operating segments, and the allocations have been determined on a basis that we considered to be a reasonable reflection of the utilization of services provided to or benefits received by the operating segments. The following tables present our results of operations by reportable operating segment for the periods indicated (in thousands): Three Months Ended June 30, 2019 North America EMEA APAC Consolidated Net sales: Products $ 1,225,666 $ 333,037 $ 35,632 $ 1,594,335 Services 179,841 46,137 15,708 241,686 Total net sales 1,405,507 379,174 51,340 1,836,021 Costs of goods sold: Products 1,120,834 304,885 33,197 1,458,916 Services 85,614 9,839 6,203 101,656 Total costs of goods sold 1,206,448 314,724 39,400 1,560,572 Gross profit 199,059 64,450 11,940 275,449 Operating expenses: Selling and administrative expenses 144,498 47,652 7,339 199,489 Severance and restructuring expenses 480 200 — 680 Acquisition-related expenses 3,163 — — 3,163 Earnings from operations $ 50,918 $ 16,598 $ 4,601 $ 72,117 Three Months Ended June 30, 2018 North America EMEA APAC Consolidated Net sales: Products $ 1,205,713 $ 364,452 $ 48,658 $ 1,618,823 Services 163,053 45,084 13,910 222,047 Total net sales 1,368,766 409,536 62,568 1,840,870 Costs of goods sold: Products 1,105,275 338,142 44,970 1,488,387 Services 72,974 9,430 5,702 88,106 Total costs of goods sold 1,178,249 347,572 50,672 1,576,493 Gross profit 190,517 61,964 11,896 264,377 Operating expenses: Selling and administrative expenses 135,206 46,894 7,364 189,464 Severance and restructuring expenses 338 41 3 382 Acquisition-related expenses 94 — — 94 Earnings from operations $ 54,879 $ 15,029 $ 4,529 $ 74,437 Six Months Ended June 30, 2019 North America EMEA APAC Consolidated Net sales: Products $ 2,296,082 $ 687,710 $ 77,215 $ 3,061,007 Services 351,866 81,639 26,975 460,480 Total net sales 2,647,948 769,349 104,190 3,521,487 Costs of goods sold: Products 2,095,535 628,923 71,766 2,796,224 Services 170,747 18,993 11,602 201,342 Total costs of goods sold 2,266,282 647,916 83,368 2,997,566 Gross profit 381,666 121,433 20,822 523,921 Operating expenses: Selling and administrative expenses 281,448 94,797 14,307 390,552 Severance and restructuring expenses 811 115 124 1,050 Acquisition-related expenses 3,163 — — 3,163 Earnings from operations $ 96,244 $ 26,521 $ 6,391 $ 129,156 Six Months Ended June 30, 2018 North America EMEA APAC Consolidated Net sales: Products $ 2,340,114 $ 741,664 $ 94,837 $ 3,176,615 Services 307,032 75,006 24,711 406,749 Total net sales 2,647,146 816,670 119,548 3,583,364 Costs of goods sold: Products 2,134,245 681,161 87,967 2,903,373 Services 147,013 17,495 10,843 175,351 Total costs of goods sold 2,281,258 698,656 98,810 3,078,724 Gross profit 365,888 118,014 20,738 504,640 Operating expenses: Selling and administrative expenses 267,846 95,177 14,621 377,644 Severance and restructuring expenses 781 1,115 130 2,026 Acquisition-related expenses 94 — — 94 Earnings from operations $ 97,167 $ 21,722 $ 5,987 $ 124,876 The following is a summary of our total assets by reportable operating segment (in thousands): June 30, 2019 December 31, 2018 North America $ 3,009,462 $ 2,660,886 EMEA 747,769 611,338 APAC 165,963 98,959 Corporate assets and intercompany eliminations, net (637,197 ) (595,236 ) Total assets $ 3,285,997 $ 2,775,947 We recorded the following pre-tax amounts, by reportable operating segment, for depreciation and amortization in the accompanying consolidated financial statements (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Depreciation and amortization of property and equipment: North America $ 3,786 $ 4,158 $ 7,743 $ 8,456 EMEA 1,012 998 1,967 2,001 APAC 140 123 272 255 4,938 5,279 9,982 10,712 Amortization of intangible assets: North America 3,636 3,361 7,272 6,721 EMEA 69 71 138 145 APAC 116 171 234 348 3,821 3,603 7,644 7,214 Total $ 8,759 $ 8,882 $ 17,626 $ 17,926 |
Acquisition
Acquisition | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisition | 12. Cardinal Effective August 1, 2018, we acquired 100 percent of the issued and outstanding shares of Cardinal, a digital solutions provider based in Cincinnati, Ohio, with offices across the Midwest and Southeast United States, for a cash purchase price, net of cash acquired, of approximately $78,400,000, including final working capital and tax gross up adjustments. Cardinal provides technology solutions to digitally transform organizations through their expertise in mobile applications development, Internet of Things and cloud enabled business intelligence. We believe that this acquisition strengthens our services capabilities and will bring value to our clients within our digital innovation services solution offering. The fair value of net assets acquired was approximately $42,360,000, including $27,540,000 of identifiable intangible assets, consisting primarily of customer relationships that will be amortized using the straight line method over the estimated economic life of ten years. The preliminary purchase price was allocated using the information currently available. We finalized the fair value assumptions for identifiable intangible assets acquired in the fourth quarter of 2018. Goodwill acquired approximated $36,040,000 which was recorded in our North America operating segment. The goodwill is tax deductible. The working capital adjustment in the amount of $762,000 was finalized in the fourth quarter of 2018 and paid in January 2019. Additionally, we finalized the purchase price allocation when the tax gross up adjustment of $2,600,000 was agreed upon in April 2019. This resulted in a reduction of the previously recorded purchase price of $400,000. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | 13. Subsequent Event On July 10, 2019, we entered into an unsecured inventory financing facility with a maximum borrowing capacity of $200,000,000. This agreement will stay in effect until it is terminated by any of the parties. If balances are not paid within stated vendor terms, they will accrue interest at prime plus 2.00%. Amounts outstanding under this facility will be classified as accounts payable – inventory financing facility in the accompanying balance sheets. |
Basis of Presentation and Rec_2
Basis of Presentation and Recently Issued Accounting Standards (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In June 2016, the Financial Accounting Standards Board’s (“FASB”) issued Accounting Standard Update (“ASU”) No. 2016-13, “Financial Instruments – Credit Losses.” The new standard is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held at each reporting date. The new standard is effective for interim and annual periods beginning after December 15, 2019, and early adoption is permitted. We will adopt the new standard as of January 1, 2020 and do not expect the adoption to have a material effect on our consolidated financial statements. In April 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.” The new standard provides changes for how a company considers expected recoveries and contractual extensions or renewal options when estimating expected credit losses. The new standard is effective with the adoption of ASU No. 2016-13. We will adopt the new standard as of January 1, 2020 and do not expect the adoption to have a material effect on our consolidated financial statements. Effective January 1, 2019, we adopted the FASB ASU No. 2016-02— Leases (Topic 842) Adoption of the new standard resulted in the recording of additional net operating lease ROU assets and lease liabilities of $65,922,000 and $70,512,000, respectively, as of January 1, 2019. The difference between the additional lease assets and lease liabilities reflected existing accrued and prepaid rent balances that were reclassified to the operating lease ROU asset at January 1, 2019. The standard did not materially impact our consolidated net earnings and had no impact on cash flows. There have been no other material changes in or additions to the recently issued accounting standards as previously reported in Note 1 to our Consolidated Financial Statements in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2018 that affect or may affect our current financial statements. |
Significant Accounting Policy - Leases | Significant Accounting Policy We determine if a contract or arrangement is, or contains, a lease at inception. Balances related to operating leases are included in other assets, other current liabilities, and other liabilities in our consolidated balance sheet. Balances related to financing leases are included in property and equipment, current portion of long-term debt, and long-term debt in our consolidated balance sheet. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU asset includes any prepaid lease payments and additional direct costs and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule of Financial Statement Classification of Lease Balances With Consolidated Balance Sheet | The following table provides information about the financial statement classification of our lease balances reported within the consolidated balances sheets as of June 30, 2019 and January 1, 2019 (in thousands): Leases Classification June 30, 2019 January 1, 2019 Assets Operating lease assets Other assets $ 60,286 $ 65,922 Finance lease assets Property and equipment (a) 1,350 1,693 Total lease assets $ 61,636 $ 67,615 Liabilities Current Operating lease liabilities Accrued expenses and other current liabilities $ 15,096 $ 15,788 Finance lease liabilities Current portion of long-term debt 1,421 1,399 Non-current Operating lease liabilities Other liabilities 50,252 54,724 Finance lease liabilities Long-term debt 930 1,521 Total lease liabilities $ 67,699 $ 73,432 (a) Recorded net of accumulated amortization of $344,000 as of June 30, 2019 and there is no accumulated amortization as of January 1, 2019. |
Schedule of Financial Statement Classification of Lease Balances With Consolidated Statement of Operations | The following table provides information about the financial statement classification of our lease expenses reported within the consolidated statement of operations for the three and six months ended June 30, 2019 (in thousands): Lease cost Classification Three months ended June 30, 2019 Six months ended June 30, 2019 Operating lease cost (a) (b) Selling and administrative expenses $ 4,850 $ 9,768 Finance lease cost Amortization of leased assets Selling and administrative expenses 173 344 Interest on lease liabilities Interest expense, net 23 50 Total lease cost $ 5,046 $ 10,162 (a) Includes immaterial amounts recorded to cost of goods sold. (b) Excludes short-term and variable lease costs, which are immaterial. |
Schedule of Future Minimum Lease Payments Under Non-cancelable Leases | Future minimum lease payments under non-cancelable leases as of June 30, 2019 are as follows (in thousands): Operating leases Finance leases Total Remainder of 2019 $ 9,416 $ 869 $ 10,285 2020 14,985 1,150 16,135 2021 12,470 432 12,902 2022 9,663 — 9,663 2023 6,557 — 6,557 After 2023 21,339 — 21,339 Total lease payments 74,430 2,451 76,881 Less: Interest (9,082 ) (100 ) (9,182 ) Present value of lease liabilities $ 65,348 $ 2,351 $ 67,699 Operating lease payments include $13.4 |
Schedule of Weighted Average Remaining Term and Discount Rates | The following table provides information about the remaining lease terms and discount rates applied as of June 30, 2019: June 30, 2019 Weighted average remaining lease term (years) Operating leases 6.56 Finance leases 1.94 Weighted average discount rate (%) Operating leases 3.86 Finance leases 4.84 |
Schedule of Other Information Related to Leases | The following table provides other information related to leases for the six months ended June 30, 2019 (in thousands): Six months ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 9,269 Leased assets obtained in exchange for new operating lease liabilities 2,872 |
Future Minimum Lease Payments | Future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) as of December 31, 2018 are as follows (in thousands): Years Ending December 31, 2019 $ 21,499 2020 15,580 2021 12,121 2022 9,150 2023 6,296 Thereafter 7,238 Total minimum lease payments $ 71,884 |
Sales Recognition (Tables)
Sales Recognition (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Revenue Disaggregated by Reportable Operating Segments | In the following table, revenue is disaggregated by our reportable operating segments, which are primarily defined by Three Months Ended June 30, 2019 North America EMEA APAC Consolidated Major Offerings Hardware $ 935,792 $ 142,951 $ 9,979 $ 1,088,722 Software 289,874 190,086 25,653 505,613 Services 179,841 46,137 15,708 241,686 $ 1,405,507 $ 379,174 $ 51,340 $ 1,836,021 Major Client Groups Large Enterprise / Corporate $ 1,071,611 $ 281,013 $ 16,785 $ 1,369,409 Public Sector 156,381 78,343 15,096 249,820 Small and Medium-Sized Businesses 177,515 19,818 19,459 216,792 $ 1,405,507 $ 379,174 $ 51,340 $ 1,836,021 Revenue Recognition based on acting as Principal or Agent in the Transaction Gross revenue recognition (Principal) $ 1,338,948 $ 347,336 $ 43,284 $ 1,729,568 Net revenue recognition (Agent) 66,559 31,838 8,056 106,453 $ 1,405,507 $ 379,174 $ 51,340 $ 1,836,021 Three Months Ended June 30, 2018 North America EMEA APAC Consolidated Major Offerings Hardware $ 898,143 $ 171,336 $ 9,318 $ 1,078,797 Software 307,570 193,116 39,340 540,026 Services 163,053 45,084 13,910 222,047 $ 1,368,766 $ 409,536 $ 62,568 $ 1,840,870 Major Client Groups Large Enterprise / Corporate $ 1,006,406 $ 298,796 $ 14,089 $ 1,319,291 Public Sector 135,709 94,487 29,503 259,699 Small and Medium-Sized Businesses 226,651 16,253 18,976 261,880 $ 1,368,766 $ 409,536 $ 62,568 $ 1,840,870 Revenue Recognition based on acting as Principal or Agent in the Transaction Gross revenue recognition (Principal) $ 1,304,301 $ 378,098 $ 55,079 $ 1,737,478 Net revenue recognition (Agent) 64,465 31,438 7,489 103,392 $ 1,368,766 $ 409,536 $ 62,568 $ 1,840,870 Six Months Ended June 30, 2019 North America EMEA APAC Consolidated Major Offerings Hardware $ 1,684,129 $ 314,476 $ 16,497 $ 2,015,102 Software 611,953 373,234 60,718 1,045,905 Services 351,866 81,639 26,975 460,480 $ 2,647,948 $ 769,349 $ 104,190 $ 3,521,487 Major Client Groups Large Enterprise / Corporate $ 2,048,452 $ 541,620 $ 30,092 $ 2,620,164 Public Sector 253,498 187,409 41,250 482,157 Small and Medium-Sized Businesses 345,998 40,320 32,848 419,166 $ 2,647,948 $ 769,349 $ 104,190 $ 3,521,487 Revenue Recognition based on acting as Principal or Agent in the Transaction Gross revenue recognition (Principal) $ 2,521,026 $ 714,501 $ 91,150 $ 3,326,677 Net revenue recognition (Agent) 126,922 54,848 13,040 194,810 $ 2,647,948 $ 769,349 $ 104,190 $ 3,521,487 Six Months Ended June 30, 2018 North America EMEA APAC Consolidated Major Offerings Hardware $ 1,771,485 $ 358,346 $ 16,478 $ 2,146,309 Software 568,629 383,318 78,359 1,030,306 Services 307,032 75,006 24,711 406,749 $ 2,647,146 $ 816,670 $ 119,548 $ 3,583,364 Major Client Groups Large Enterprise / Corporate $ 1,959,215 $ 571,435 $ 27,055 $ 2,557,705 Public Sector 246,214 211,101 60,879 518,194 Small and Medium-Sized Businesses 441,717 34,134 31,614 507,465 $ 2,647,146 $ 816,670 $ 119,548 $ 3,583,364 Revenue Recognition based on acting as Principal or Agent in the Transaction Gross revenue recognition (Principal) $ 2,534,713 $ 766,435 $ 106,904 $ 3,408,052 Net revenue recognition (Agent) 112,433 50,235 12,644 175,312 $ 2,647,146 $ 816,670 $ 119,548 $ 3,583,364 |
Summary of Information about Receivables, Contract Assets and Contract Liabilities | The following table provides information about receivables, contract assets and contract liabilities as of June 30, 2019 and December 31, 2018 (in thousands): June 30, December 31, 2019 2018 Current receivables, which are included in “Accounts receivable, net” $ 2,284,922 $ 1,931,736 Non-current receivables, which are included in “Other assets” 142,890 38,157 Contract assets, which are included in “Other current assets” 958 892 Contract liabilities, which are included in “Deferred revenue” and “Other liabilities” 89,737 82,117 |
Summary of Changes in Contract Assets and Contract Liabilities from Contract with Customers | Significant changes in the contract assets and the contract liabilities balances during the six months ended June 30, 2019 are as follows (in thousands): Increase (Decrease) Contract Contract Assets Liabilities Balances at December 31, 2018 $ 892 $ 82,117 Reclassification of the beginning contract liabilities to revenue, as the result of performance obligations satisfied — (36,525 ) Cash received in advance and not recognized as revenue — 44,145 Reclassification of the beginning contract assets to receivables, as the result of rights to consideration becoming unconditional (251 ) — Contract assets recognized, net of reclassification to receivables 317 — Balances at June 30, 2019 $ 958 $ 89,737 |
Summary of Estimated Net Sales Related to Performance Obligation | The following table includes estimated net sales related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2019 that are expected to be recognized in the future (in thousands): Products Services Total Remainder of 2019 $ 6 $ 57,666 $ 57,672 2020 6 40,410 40,416 2021 — 16,058 16,058 2022 — 6,414 6,414 2023 and thereafter — 3,403 3,403 Total remaining performance obligations $ 12 $ 123,951 $ 123,963 |
Net Earnings Per Share ("EPS")
Net Earnings Per Share ("EPS") (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Denominators of Basic and Diluted EPS Calculations | A reconciliation of the denominators of the basic and diluted EPS calculations follows (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Numerator: Net earnings $ 49,998 $ 51,479 $ 89,325 $ 84,482 Denominator: Weighted average shares used to compute basic EPS 35,772 35,483 35,691 35,698 Dilutive potential common shares due to dilutive RSUs, net of tax effect 339 332 416 341 Weighted average shares used to compute diluted EPS 36,111 35,815 36,107 36,039 Net earnings per share: Basic $ 1.40 $ 1.45 $ 2.50 $ 2.37 Diluted $ 1.38 $ 1.44 $ 2.47 $ 2.34 |
Debt, Inventory Financing Fac_2
Debt, Inventory Financing Facility, Finance Leases and Other Financing Obligations (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Our long-term debt consists of the following (in thousands): June 30, 2019 December 31, 2018 Senior revolving credit facility $ — $ — Accounts receivable securitization financing facility 45,000 194,000 Finance leases and other financing obligations 2,351 2,920 Total 47,351 196,920 Less: current portion of long-term debt (1,421 ) (1,395 ) Long-term debt $ 45,930 $ 195,525 |
Restricted Cash (Tables)
Restricted Cash (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the balance sheets that sum to the total of the same such amounts shown in the statements of cash flows for the six months ended June 30, 2019 and 2018 (in thousands): June 30, 2019 December 31, 2018 Cash and cash equivalents $ 112,077 $ 142,655 Restricted cash included in other current assets — 8 Restricted cash included in other non-current assets 1,628 1,630 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 113,705 $ 144,293 June 30, 2018 December 31, 2017 Cash and cash equivalents $ 248,122 $ 105,831 Restricted cash included in other current assets 9 46 Restricted cash included in other non-current assets 1,576 1,568 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 249,707 $ 107,445 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Pre-tax Amounts by Operating Segment for Stock-Based Compensation | We recorded the following pre-tax amounts in selling and administrative expenses for stock-based compensation, by operating segment, in the accompanying consolidated financial statements (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 North America $ 2,740 $ 2,945 $ 5,863 $ 5,335 EMEA 814 790 1,684 1,480 APAC 128 128 250 232 Total Consolidated $ 3,682 $ 3,863 $ 7,797 $ 7,047 |
Summary of Restricted Stock Units Activity | The following table summarizes our RSU activity during the six months ended June 30, 2019: Number Weighted Average Grant Date Fair Value Fair Value Nonvested at January 1, 2019 1,020,930 $ 36.10 Granted (a) 350,987 57.33 Vested, including shares withheld to cover taxes (407,961 ) 34.08 $ 13,903,311 (b) Forfeited (47,051 ) 41.33 Nonvested at June 30, 2019(a) 916,905 44.86 $ 53,363,871 (c) (a) Includes 84,602 RSUs subject to remaining performance conditions. The number of RSUs subject to performance conditions are based on the Company achieving 97% of its 2019 targeted financial results. The number of RSUs ultimately awarded under the performance-based RSUs varies based on actual achieved financial results for 2019. ( b ) The aggregate fair value of vested RSUs represents the total pre-tax fair value, based on the closing stock price on the day of vesting, which would have been received by holders of RSUs had all such holders sold their underlying shares on that date. ( c ) The aggregate fair value of the nonvested RSUs and the RSUs expected to vest represents the total pre-tax fair value, based on our closing stock price of $58.20 as of June 28, 2019 (the last trading day of the quarter), which would have been received by holders of RSUs had all such holders sold their underlying shares on that date. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Net Sales by Offering for North America, EMEA and APAC | The following table summarizes net sales by offering for North America, EMEA and APAC for the three and six months ended June 30, 2019 and 2018 (in thousands): North America EMEA APAC Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, Sales Mix 2019 2018 2019 2018 2019 2018 Hardware $ 935,792 $ 898,143 $ 142,951 $ 171,336 $ 9,979 $ 9,318 Software 289,874 307,570 190,086 193,116 25,653 39,340 Services 179,841 163,053 46,137 45,084 15,708 13,910 $ 1,405,507 $ 1,368,766 $ 379,174 $ 409,536 $ 51,340 $ 62,568 North America EMEA APAC Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, Sales Mix 2019 2018 2019 2018 2019 2018 Hardware $ 1,684,129 $ 1,771,485 $ 314,476 $ 358,346 $ 16,497 $ 16,478 Software 611,953 568,629 373,234 383,318 60,718 78,359 Services 351,866 307,032 81,639 75,006 26,975 24,711 $ 2,647,948 $ 2,647,146 $ 769,349 $ 816,670 $ 104,190 $ 119,548 |
Financial Information about Reportable Operating Segments | The following tables present our results of operations by reportable operating segment for the periods indicated (in thousands): Three Months Ended June 30, 2019 North America EMEA APAC Consolidated Net sales: Products $ 1,225,666 $ 333,037 $ 35,632 $ 1,594,335 Services 179,841 46,137 15,708 241,686 Total net sales 1,405,507 379,174 51,340 1,836,021 Costs of goods sold: Products 1,120,834 304,885 33,197 1,458,916 Services 85,614 9,839 6,203 101,656 Total costs of goods sold 1,206,448 314,724 39,400 1,560,572 Gross profit 199,059 64,450 11,940 275,449 Operating expenses: Selling and administrative expenses 144,498 47,652 7,339 199,489 Severance and restructuring expenses 480 200 — 680 Acquisition-related expenses 3,163 — — 3,163 Earnings from operations $ 50,918 $ 16,598 $ 4,601 $ 72,117 Three Months Ended June 30, 2018 North America EMEA APAC Consolidated Net sales: Products $ 1,205,713 $ 364,452 $ 48,658 $ 1,618,823 Services 163,053 45,084 13,910 222,047 Total net sales 1,368,766 409,536 62,568 1,840,870 Costs of goods sold: Products 1,105,275 338,142 44,970 1,488,387 Services 72,974 9,430 5,702 88,106 Total costs of goods sold 1,178,249 347,572 50,672 1,576,493 Gross profit 190,517 61,964 11,896 264,377 Operating expenses: Selling and administrative expenses 135,206 46,894 7,364 189,464 Severance and restructuring expenses 338 41 3 382 Acquisition-related expenses 94 — — 94 Earnings from operations $ 54,879 $ 15,029 $ 4,529 $ 74,437 Six Months Ended June 30, 2019 North America EMEA APAC Consolidated Net sales: Products $ 2,296,082 $ 687,710 $ 77,215 $ 3,061,007 Services 351,866 81,639 26,975 460,480 Total net sales 2,647,948 769,349 104,190 3,521,487 Costs of goods sold: Products 2,095,535 628,923 71,766 2,796,224 Services 170,747 18,993 11,602 201,342 Total costs of goods sold 2,266,282 647,916 83,368 2,997,566 Gross profit 381,666 121,433 20,822 523,921 Operating expenses: Selling and administrative expenses 281,448 94,797 14,307 390,552 Severance and restructuring expenses 811 115 124 1,050 Acquisition-related expenses 3,163 — — 3,163 Earnings from operations $ 96,244 $ 26,521 $ 6,391 $ 129,156 Six Months Ended June 30, 2018 North America EMEA APAC Consolidated Net sales: Products $ 2,340,114 $ 741,664 $ 94,837 $ 3,176,615 Services 307,032 75,006 24,711 406,749 Total net sales 2,647,146 816,670 119,548 3,583,364 Costs of goods sold: Products 2,134,245 681,161 87,967 2,903,373 Services 147,013 17,495 10,843 175,351 Total costs of goods sold 2,281,258 698,656 98,810 3,078,724 Gross profit 365,888 118,014 20,738 504,640 Operating expenses: Selling and administrative expenses 267,846 95,177 14,621 377,644 Severance and restructuring expenses 781 1,115 130 2,026 Acquisition-related expenses 94 — — 94 Earnings from operations $ 97,167 $ 21,722 $ 5,987 $ 124,876 |
Summary of Total Assets by Reportable Operating Segment | The following is a summary of our total assets by reportable operating segment (in thousands): June 30, 2019 December 31, 2018 North America $ 3,009,462 $ 2,660,886 EMEA 747,769 611,338 APAC 165,963 98,959 Corporate assets and intercompany eliminations, net (637,197 ) (595,236 ) Total assets $ 3,285,997 $ 2,775,947 |
Pre-Tax Depreciation and Amortization by Operating Segment | We recorded the following pre-tax amounts, by reportable operating segment, for depreciation and amortization in the accompanying consolidated financial statements (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Depreciation and amortization of property and equipment: North America $ 3,786 $ 4,158 $ 7,743 $ 8,456 EMEA 1,012 998 1,967 2,001 APAC 140 123 272 255 4,938 5,279 9,982 10,712 Amortization of intangible assets: North America 3,636 3,361 7,272 6,721 EMEA 69 71 138 145 APAC 116 171 234 348 3,821 3,603 7,644 7,214 Total $ 8,759 $ 8,882 $ 17,626 $ 17,926 |
Basis of Presentation and Rec_3
Basis of Presentation and Recently Issued Accounting Standards - Additional Information (Detail) | 6 Months Ended | |
Jun. 30, 2019USD ($)Segment | Jan. 01, 2019USD ($) | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Number of operating segments | Segment | 3 | |
Additional lease liabilities | $ 65,348,000 | |
ASU 2016-02 [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Additional ROU assets | $ 65,922,000 | |
Additional lease liabilities | $ 70,512,000 | |
Cardinal Solutions Group, Inc [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Business acquisition, effective date of acquisition | Aug. 1, 2018 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Lessee Lease Description [Line Items] | ||||
Operating lease, existence of option to extend | true | |||
Operating leases rental expense | $ 20,114,000 | $ 19,126,000 | $ 14,444,000 | |
Non-cancellable rental income, 2019 | $ 1,600,000 | |||
Minimum [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Operating lease renewal term | 1 year | |||
Maximum [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Operating lease renewal term | 5 years |
Leases - Schedule of Financial
Leases - Schedule of Financial Statement Classification of Lease Balances With Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 |
Lessee Lease Description [Line Items] | ||
Total lease assets | $ 61,636 | $ 67,615 |
Total lease liabilities | 67,699 | 73,432 |
Other Assets [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating lease assets | 60,286 | 65,922 |
Property and equipment [Member] | ||
Lessee Lease Description [Line Items] | ||
Finance lease assets | 1,350 | 1,693 |
Accrued expenses and other current liabilities [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating lease liabilities | 15,096 | 15,788 |
Current portion of long-term debt [Member] | ||
Lessee Lease Description [Line Items] | ||
Finance lease liabilities | 1,421 | 1,399 |
Other liabilities [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating lease liabilities | 50,252 | 54,724 |
Long-term debt [Member] | ||
Lessee Lease Description [Line Items] | ||
Finance lease liabilities | $ 930 | $ 1,521 |
Leases - Schedule of Financia_2
Leases - Schedule of Financial Statement Classification of Lease Balances With Consolidated Balance Sheet (Parenthetical) (Detail) - USD ($) | Jun. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Finance lease assets, accumulated amortization | $ 344,000 | $ 0 |
Leases - Schedule of Financia_3
Leases - Schedule of Financial Statement Classification of Lease Balances With Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Lessee Lease Description [Line Items] | ||
Total lease cost | $ 5,046 | $ 10,162 |
Selling and Administrative Expenses [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating lease cost | 4,850 | 9,768 |
Amortization of leased assets | 173 | 344 |
Interest Expense, Net [Member] | ||
Lessee Lease Description [Line Items] | ||
Interest on lease liabilities | $ 23 | $ 50 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments Under Non-cancelable Leases (Detail) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Operating Lease | ||
Remainder of 2019 | $ 9,416,000 | |
2020 | 14,985,000 | |
2021 | 12,470,000 | |
2022 | 9,663,000 | |
2023 | 6,557,000 | |
After 2023 | 21,339,000 | |
Total lease payments | 74,430,000 | |
Less: Interest | (9,082,000) | |
Present value of lease liabilities | 65,348,000 | |
Finance Lease | ||
Remainder of 2019 | 869,000 | |
2020 | 1,150,000 | |
2021 | 432,000 | |
Total lease payments | 2,451,000 | |
Less: Interest | (100,000) | |
Present value of lease liabilities | 2,351,000 | $ 2,920,000 |
Total | ||
Remainder of 2019 | 10,285,000 | |
2020 | 16,135,000 | |
2021 | 12,902,000 | |
2022 | 9,663,000 | |
2023 | 6,557,000 | |
After 2023 | 21,339,000 | |
Total lease payments | 76,881,000 | |
Less: Interest | (9,182,000) | |
Present value of lease liabilities | $ 67,699,000 |
Leases - Schedule of Future M_2
Leases - Schedule of Future Minimum Lease Payments Under Non-cancelable Leases (Parenthetical) (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Lessee Lease Description [Line Items] | |
Operating lease, option to extend lease terms, description | Operating lease payments include $13.4 million related to options to extend lease terms that are reasonably certain of being exercised |
Operating lease payments | $ 74,430 |
Options to Eextend Lease Terms [Member] | |
Lessee Lease Description [Line Items] | |
Operating lease payments | $ 13,400 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Remaining Term and Discount Rates (Detail) | Jun. 30, 2019 |
Leases [Abstract] | |
Operating leases, Weighted average remaining lease term (years) | 6 years 6 months 21 days |
Finance leases, Weighted average remaining lease term (years) | 1 year 11 months 8 days |
Operating leases, Weighted average discount rate | 3.86% |
Finance leases, Weighted average discount rate | 4.84% |
Leases - Schedule of Cash Flows
Leases - Schedule of Cash Flows Associated With the Company's Leasing Activities (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 9,269 |
Leased assets obtained in exchange for new operating lease liabilities | $ 2,872 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payment (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 21,499 |
2020 | 15,580 |
2021 | 12,121 |
2022 | 9,150 |
2023 | 6,296 |
Thereafter | 7,238 |
Total minimum lease payments | $ 71,884 |
Sales Recognition - Summary of
Sales Recognition - Summary of Revenue Disaggregated by Reportable Operating Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | $ 1,836,021 | $ 1,840,870 | $ 3,521,487 | $ 3,583,364 |
Gross Revenue Recognition (Principal) [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 1,729,568 | 1,737,478 | 3,326,677 | 3,408,052 |
Net Revenue Recognition (Agent) [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 106,453 | 103,392 | 194,810 | 175,312 |
Large Enterprise / Corporate [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 1,369,409 | 1,319,291 | 2,620,164 | 2,557,705 |
Public Sector [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 249,820 | 259,699 | 482,157 | 518,194 |
Small and Medium-Sized Businesses [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 216,792 | 261,880 | 419,166 | 507,465 |
North America Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 1,405,507 | 1,368,766 | 2,647,948 | 2,647,146 |
North America Segment [Member] | Gross Revenue Recognition (Principal) [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 1,338,948 | 1,304,301 | 2,521,026 | 2,534,713 |
North America Segment [Member] | Net Revenue Recognition (Agent) [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 66,559 | 64,465 | 126,922 | 112,433 |
North America Segment [Member] | Large Enterprise / Corporate [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 1,071,611 | 1,006,406 | 2,048,452 | 1,959,215 |
North America Segment [Member] | Public Sector [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 156,381 | 135,709 | 253,498 | 246,214 |
North America Segment [Member] | Small and Medium-Sized Businesses [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 177,515 | 226,651 | 345,998 | 441,717 |
EMEA Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 379,174 | 409,536 | 769,349 | 816,670 |
EMEA Segment [Member] | Gross Revenue Recognition (Principal) [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 347,336 | 378,098 | 714,501 | 766,435 |
EMEA Segment [Member] | Net Revenue Recognition (Agent) [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 31,838 | 31,438 | 54,848 | 50,235 |
EMEA Segment [Member] | Large Enterprise / Corporate [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 281,013 | 298,796 | 541,620 | 571,435 |
EMEA Segment [Member] | Public Sector [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 78,343 | 94,487 | 187,409 | 211,101 |
EMEA Segment [Member] | Small and Medium-Sized Businesses [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 19,818 | 16,253 | 40,320 | 34,134 |
APAC Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 51,340 | 62,568 | 104,190 | 119,548 |
APAC Segment [Member] | Gross Revenue Recognition (Principal) [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 43,284 | 55,079 | 91,150 | 106,904 |
APAC Segment [Member] | Net Revenue Recognition (Agent) [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 8,056 | 7,489 | 13,040 | 12,644 |
APAC Segment [Member] | Large Enterprise / Corporate [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 16,785 | 14,089 | 30,092 | 27,055 |
APAC Segment [Member] | Public Sector [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 15,096 | 29,503 | 41,250 | 60,879 |
APAC Segment [Member] | Small and Medium-Sized Businesses [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 19,459 | 18,976 | 32,848 | 31,614 |
Hardware Net Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 1,088,722 | 1,078,797 | 2,015,102 | 2,146,309 |
Hardware Net Sales [Member] | North America Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 935,792 | 898,143 | 1,684,129 | 1,771,485 |
Hardware Net Sales [Member] | EMEA Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 142,951 | 171,336 | 314,476 | 358,346 |
Hardware Net Sales [Member] | APAC Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 9,979 | 9,318 | 16,497 | 16,478 |
Software Net Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 505,613 | 540,026 | 1,045,905 | 1,030,306 |
Software Net Sales [Member] | North America Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 289,874 | 307,570 | 611,953 | 568,629 |
Software Net Sales [Member] | EMEA Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 190,086 | 193,116 | 373,234 | 383,318 |
Software Net Sales [Member] | APAC Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 25,653 | 39,340 | 60,718 | 78,359 |
Services Net Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 241,686 | 222,047 | 460,480 | 406,749 |
Services Net Sales [Member] | North America Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 179,841 | 163,053 | 351,866 | 307,032 |
Services Net Sales [Member] | EMEA Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | 46,137 | 45,084 | 81,639 | 75,006 |
Services Net Sales [Member] | APAC Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregation of Revenue | $ 15,708 | $ 13,910 | $ 26,975 | $ 24,711 |
Sales Recognition - Summary o_2
Sales Recognition - Summary of Information about Receivables,Contract Assets and Contract Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Disaggregation of Revenue [Line Items] | ||
Current receivables, which are included in “Accounts receivable, net” | $ 2,284,922 | $ 1,931,736 |
Contract assets, which are included in “Other current assets” | 958 | 892 |
Contract liabilities, which are included in “Deferred revenue” and “Other liabilities” | 89,737 | 82,117 |
Accounts Receivable, Net [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Current receivables, which are included in “Accounts receivable, net” | 2,284,922 | 1,931,736 |
Other Assets [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Non-current receivables, which are included in “Other assets” | 142,890 | 38,157 |
Other Current Assets [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets, which are included in “Other current assets” | 958 | 892 |
Deferred Revenue and Other Liabilities [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Contract liabilities, which are included in “Deferred revenue” and “Other liabilities” | $ 89,737 | $ 82,117 |
Sales Recognition - Summary o_3
Sales Recognition - Summary of Changes in Contract Assets and Contract Liabilities from Contract with Customers (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Revenue From Contract With Customer [Abstract] | |
Beginning balance, Contract Assets | $ 892 |
Reclassification of the beginning contract assets to receivables, as the result of rights to consideration becoming unconditional, Contract Assets | (251) |
Contract assets recognized, net of reclassification to receivables, Contract Assets | 317 |
Ending balance, Contract Assets | 958 |
Beginning balance, Contract Liabilities | 82,117 |
Reclassification of the beginning contract liabilities to revenue, as the result of performance obligations satisfied, Contract Liabilities | (36,525) |
Cash received in advance and not recognized as revenue, Contract Liabilities | 44,145 |
Ending balance, Contract Liabilities | $ 89,737 |
Sales Recognition - Summary o_4
Sales Recognition - Summary of Estimated Net Sales Related to Performance Obligation (Detail) $ in Thousands | Jun. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligations | $ 123,963 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligations | $ 57,672 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 6 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligations | $ 40,416 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligations | $ 16,058 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligations | $ 6,414 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligations | $ 3,403 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | |
Products [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligations | $ 12 |
Products [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligations | $ 6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 6 years |
Products [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligations | $ 6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Services [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligations | $ 123,951 |
Services [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligations | $ 57,666 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 6 years |
Services [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligations | $ 40,410 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Services [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligations | $ 16,058 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Services [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligations | $ 6,414 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Services [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligations | $ 3,403 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period |
Sales Recognition - Summary o_5
Sales Recognition - Summary of Estimated Net Sales Related to Performance Obligation (Detail 1) $ in Thousands | Jun. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligations | $ 123,963 |
Products [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligations | 12 |
Services [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligations | $ 123,951 |
Sales Recognition - Additional
Sales Recognition - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Description of expected duration | With the exception of remaining performance obligations associated with our OneCall Support Services contracts which are included in the table above regardless of original duration, remaining performance obligations that have original expected durations of one year or less are not included in the table above. Amounts not included in the table above have an average original expected duration of nine months. |
Time and material contracts expected duration | 14 months |
Net Earnings Per Share ("EPS"_2
Net Earnings Per Share ("EPS") - Reconciliation of Denominators of Basic and Diluted EPS Calculations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator: | ||||
Net earnings | $ 49,998 | $ 51,479 | $ 89,325 | $ 84,482 |
Denominator: | ||||
Weighted average shares used to compute basic EPS | 35,772 | 35,483 | 35,691 | 35,698 |
Dilutive potential common shares due to dilutive RSUs, net of tax effect | 339 | 332 | 416 | 341 |
Weighted average shares used to compute diluted EPS | 36,111 | 35,815 | 36,107 | 36,039 |
Net earnings per share: | ||||
Basic | $ 1.40 | $ 1.45 | $ 2.50 | $ 2.37 |
Diluted | $ 1.38 | $ 1.44 | $ 2.47 | $ 2.34 |
Net Earnings Per Share ("EPS"_3
Net Earnings Per Share ("EPS") - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Restricted Stock Units (RSUs) [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
RSUs excluded from the diluted EPS calculations | 1,000 | 13,000 | 83,000 | 17,000 |
Debt, Inventory Financing Fac_3
Debt, Inventory Financing Facility, Finance Leases and Other Financing Obligations - Long-Term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Long-term debt | ||
Accounts receivable securitization financing facility | $ 45,000 | $ 194,000 |
Finance leases and other financing obligations | 2,351 | 2,920 |
Total | 47,351 | 196,920 |
Less: current portion of long-term debt | (1,421) | (1,395) |
Long-term debt | $ 45,930 | $ 195,525 |
Debt, Inventory Financing Fac_4
Debt, Inventory Financing Facility, Finance Leases and Other Financing Obligations - Additional Information (Detail) | 6 Months Ended | |
Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Debt Instrument [Line Items] | ||
Accounts receivable securitization financing facility | $ 45,000,000 | $ 194,000,000 |
Accounts payable-inventory financing facility | 260,890,000 | 304,130,000 |
Finance lease obligations | 2,351,000 | $ 2,920,000 |
Senior Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility, borrowing capacity | $ 350,000,000 | |
Line of credit maturity date | Jun. 23, 2021 | |
Senior Revolving Credit Facility [Member] | Foreign Currency Borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility, borrowing capacity | $ 50,000,000 | |
ABS Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility, borrowing capacity | $ 250,000,000 | |
Line of credit maturity date | Jun. 23, 2021 | |
Amount of facility permitted by qualified receivables | $ 250,000,000 | |
Accounts receivable securitization financing facility | 45,000,000 | |
Senior Revolving Credit Facility Term Loan A and Asset Backed Securitization Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility, borrowing capacity | $ 600,000,000 | |
Maximum leverage ratio times adjusted earnings | 3 | |
Inventory Financing Facility [Member] | ||
Debt Instrument [Line Items] | ||
Inventory financing facility maximum borrowing capacity | $ 400,000,000 | |
Accounts payable-inventory financing facility | $ 260,890,000 | |
Inventory financing facility maturity date | Jun. 23, 2021 | |
Inventory financing facility interest rate if balances are not paid within stated vendor terms | Prime plus 1.25% | |
Inventory financing facility rate if vendor terms not met equal prime plus | 1.25% |
Restricted Cash - Schedule of R
Restricted Cash - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Cash And Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 112,077 | $ 142,655 | $ 248,122 | $ 105,831 |
Restricted cash included in other current assets | $ 8 | $ 9 | $ 46 | |
Restricted Cash, Current, Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsCurrent | us-gaap:OtherAssetsCurrent | us-gaap:OtherAssetsCurrent | us-gaap:OtherAssetsCurrent |
Restricted cash included in other non-current assets | $ 1,628 | $ 1,630 | $ 1,576 | $ 1,568 |
Restricted Cash, Noncurrent, Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent |
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 113,705 | $ 144,293 | $ 249,707 | $ 107,445 |
Stock-Based Compensation - Pre-
Stock-Based Compensation - Pre-tax Amounts by Operating Segment for Stock-Based Compensation (Detail) - Restricted Stock Units (RSUs) [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense related to restricted stock units (RSUs) | $ 3,682 | $ 3,863 | $ 7,797 | $ 7,047 |
Selling and Administrative Expenses [Member] | North America Segment [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense related to restricted stock units (RSUs) | 2,740 | 2,945 | 5,863 | 5,335 |
Selling and Administrative Expenses [Member] | EMEA Segment [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense related to restricted stock units (RSUs) | 814 | 790 | 1,684 | 1,480 |
Selling and Administrative Expenses [Member] | APAC Segment [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense related to restricted stock units (RSUs) | $ 128 | $ 128 | $ 250 | $ 232 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - Restricted Stock Units (RSUs) [Member] | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total compensation cost related to RSU's not yet recognized | $ 31,485,000 |
Weighted average number of years for recognition of outstanding nonvested RSUs | 1 year 7 months 24 days |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Restricted Stock Units Activity (Detail) - Restricted Stock Units (RSUs) [Member] | 6 Months Ended |
Jun. 30, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested Number, Beginning balance | shares | 1,020,930 |
Number, Granted | shares | 350,987 |
Number, Vested, including shares withheld to cover taxes | shares | (407,961) |
Number, Forfeited | shares | (47,051) |
Nonvested Number, Ending balance | shares | 916,905 |
Nonvested Weighted Average Grant Date Fair Value, Beginning balance | $ / shares | $ 36.10 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 57.33 |
Weighted Average Grant Date Fair Value, Vested, including shares withheld to cover taxes | $ / shares | 34.08 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 41.33 |
Nonvested Weighted Average Grant Date Fair Value, Ending balance | $ / shares | $ 44.86 |
Fair Value, Vested, including shares withheld to cover taxes | $ | $ 13,903,311 |
Fair Value, Nonvested at end of period | $ | $ 53,363,871 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Restricted Stock Units Activity (Parenthetical) (Detail) - $ / shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 28, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Closing stock price | $ 58.20 | |
Performance Based Restricted Stock Unit [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total RSUs | 84,602 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Income Tax [Line Items] | |||||
Effective tax rate | 25.90% | 25.90% | 24.90% | 25.90% | |
United States federal statutory income tax rate | 21.00% | 21.00% | 21.00% | 21.00% | |
Unrecognized tax benefits | $ 8,337,000 | $ 8,337,000 | $ 6,849,000 | ||
Unrecognized tax benefits, interest on income taxes accrued | $ 440,000 | $ 440,000 | $ 313,000 | ||
Period during which examination phase of tax audits may conclude, description | Although the timing of the resolutions and/or closures of audits is highly uncertain, it is reasonably possible that the examination phase of these audits may be concluded within the next 12 months, which could increase or decrease the balance of our gross unrecognized tax benefits. | ||||
Earliest Tax Year [Member] | |||||
Income Tax [Line Items] | |||||
Open tax year | 2012 | ||||
Latest Tax Year [Member] | |||||
Income Tax [Line Items] | |||||
Open tax year | 2017 |
Share Repurchase Program - Addi
Share Repurchase Program - Additional Information (Detail) - USD ($) | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Feb. 13, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock repurchase program, authorized amount | $ 50,000,000 | ||
Common stock repurchase program, number of shares repurchased | 641,211 | ||
Repurchase program, approximate dollar value of shares purchased | $ 22,069,000 | ||
Repurchase program, average price paid per share | $ 34.42 | ||
Common Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares repurchased | 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Commitments And Contingencies Disclosure [Abstract] | |
Other commitment, Performance bonds outstanding | $ 3,939,000 |
Number of months of salary paid as severance | From three to twenty-four months |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2019Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Description of major customers net sales | None of our clients exceeded ten percent of consolidated net sales for the three or six months ended June 30, 2019 or 2018. |
Segment Information - Net Sales
Segment Information - Net Sales by Offering for North America, EMEA and APAC (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue from External Customer [Line Items] | ||||
Revenues from external customers | $ 1,836,021 | $ 1,840,870 | $ 3,521,487 | $ 3,583,364 |
North America Segment [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues from external customers | 1,405,507 | 1,368,766 | 2,647,948 | 2,647,146 |
EMEA Segment [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues from external customers | 379,174 | 409,536 | 769,349 | 816,670 |
APAC Segment [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues from external customers | 51,340 | 62,568 | 104,190 | 119,548 |
Hardware Net Sales [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues from external customers | 1,088,722 | 1,078,797 | 2,015,102 | 2,146,309 |
Hardware Net Sales [Member] | North America Segment [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues from external customers | 935,792 | 898,143 | 1,684,129 | 1,771,485 |
Hardware Net Sales [Member] | EMEA Segment [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues from external customers | 142,951 | 171,336 | 314,476 | 358,346 |
Hardware Net Sales [Member] | APAC Segment [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues from external customers | 9,979 | 9,318 | 16,497 | 16,478 |
Software Net Sales [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues from external customers | 505,613 | 540,026 | 1,045,905 | 1,030,306 |
Software Net Sales [Member] | North America Segment [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues from external customers | 289,874 | 307,570 | 611,953 | 568,629 |
Software Net Sales [Member] | EMEA Segment [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues from external customers | 190,086 | 193,116 | 373,234 | 383,318 |
Software Net Sales [Member] | APAC Segment [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues from external customers | 25,653 | 39,340 | 60,718 | 78,359 |
Services Net Sales [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues from external customers | 241,686 | 222,047 | 460,480 | 406,749 |
Services Net Sales [Member] | North America Segment [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues from external customers | 179,841 | 163,053 | 351,866 | 307,032 |
Services Net Sales [Member] | EMEA Segment [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues from external customers | 46,137 | 45,084 | 81,639 | 75,006 |
Services Net Sales [Member] | APAC Segment [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues from external customers | $ 15,708 | $ 13,910 | $ 26,975 | $ 24,711 |
Segment Information - Financial
Segment Information - Financial Information about Reportable Operating Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Total net sales | $ 1,836,021 | $ 1,840,870 | $ 3,521,487 | $ 3,583,364 |
Total costs of goods sold | 1,560,572 | 1,576,493 | 2,997,566 | 3,078,724 |
Gross profit | 275,449 | 264,377 | 523,921 | 504,640 |
Operating expenses: | ||||
Selling and administrative expenses | 199,489 | 189,464 | 390,552 | 377,644 |
Severance and restructuring expenses | 680 | 382 | 1,050 | 2,026 |
Acquisition-related expenses | 3,163 | 94 | 3,163 | 94 |
Earnings from operations | 72,117 | 74,437 | 129,156 | 124,876 |
Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 1,594,335 | 1,618,823 | 3,061,007 | 3,176,615 |
Total costs of goods sold | 1,458,916 | 1,488,387 | 2,796,224 | 2,903,373 |
Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 241,686 | 222,047 | 460,480 | 406,749 |
Total costs of goods sold | 101,656 | 88,106 | 201,342 | 175,351 |
North America Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 1,405,507 | 1,368,766 | 2,647,948 | 2,647,146 |
Total costs of goods sold | 1,206,448 | 1,178,249 | 2,266,282 | 2,281,258 |
Gross profit | 199,059 | 190,517 | 381,666 | 365,888 |
Operating expenses: | ||||
Selling and administrative expenses | 144,498 | 135,206 | 281,448 | 267,846 |
Severance and restructuring expenses | 480 | 338 | 811 | 781 |
Acquisition-related expenses | 3,163 | 94 | 3,163 | 94 |
Earnings from operations | 50,918 | 54,879 | 96,244 | 97,167 |
North America Segment [Member] | Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 1,225,666 | 1,205,713 | 2,296,082 | 2,340,114 |
Total costs of goods sold | 1,120,834 | 1,105,275 | 2,095,535 | 2,134,245 |
North America Segment [Member] | Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 179,841 | 163,053 | 351,866 | 307,032 |
Total costs of goods sold | 85,614 | 72,974 | 170,747 | 147,013 |
EMEA Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 379,174 | 409,536 | 769,349 | 816,670 |
Total costs of goods sold | 314,724 | 347,572 | 647,916 | 698,656 |
Gross profit | 64,450 | 61,964 | 121,433 | 118,014 |
Operating expenses: | ||||
Selling and administrative expenses | 47,652 | 46,894 | 94,797 | 95,177 |
Severance and restructuring expenses | 200 | 41 | 115 | 1,115 |
Earnings from operations | 16,598 | 15,029 | 26,521 | 21,722 |
EMEA Segment [Member] | Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 333,037 | 364,452 | 687,710 | 741,664 |
Total costs of goods sold | 304,885 | 338,142 | 628,923 | 681,161 |
EMEA Segment [Member] | Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 46,137 | 45,084 | 81,639 | 75,006 |
Total costs of goods sold | 9,839 | 9,430 | 18,993 | 17,495 |
APAC Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 51,340 | 62,568 | 104,190 | 119,548 |
Total costs of goods sold | 39,400 | 50,672 | 83,368 | 98,810 |
Gross profit | 11,940 | 11,896 | 20,822 | 20,738 |
Operating expenses: | ||||
Selling and administrative expenses | 7,339 | 7,364 | 14,307 | 14,621 |
Severance and restructuring expenses | 3 | 124 | 130 | |
Earnings from operations | 4,601 | 4,529 | 6,391 | 5,987 |
APAC Segment [Member] | Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 35,632 | 48,658 | 77,215 | 94,837 |
Total costs of goods sold | 33,197 | 44,970 | 71,766 | 87,967 |
APAC Segment [Member] | Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 15,708 | 13,910 | 26,975 | 24,711 |
Total costs of goods sold | $ 6,203 | $ 5,702 | $ 11,602 | $ 10,843 |
Segment Information - Summary o
Segment Information - Summary of Total Assets by Reportable Operating Segment (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 3,285,997 | $ 2,775,947 |
Operating Segments [Member] | North America Segment [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 3,009,462 | 2,660,886 |
Operating Segments [Member] | EMEA Segment [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 747,769 | 611,338 |
Operating Segments [Member] | APAC Segment [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 165,963 | 98,959 |
Intersegment Eliminations [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ (637,197) | $ (595,236) |
Segment Information - Pre-Tax D
Segment Information - Pre-Tax Depreciation and Amortization by Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization of property and equipment | $ 4,938 | $ 5,279 | $ 9,982 | $ 10,712 |
Amortization of intangible assets | 3,821 | 3,603 | 7,644 | 7,214 |
Depreciation and amortization, total | 8,759 | 8,882 | 17,626 | 17,926 |
North America Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization of property and equipment | 3,786 | 4,158 | 7,743 | 8,456 |
Amortization of intangible assets | 3,636 | 3,361 | 7,272 | 6,721 |
EMEA Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization of property and equipment | 1,012 | 998 | 1,967 | 2,001 |
Amortization of intangible assets | 69 | 71 | 138 | 145 |
APAC Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization of property and equipment | 140 | 123 | 272 | 255 |
Amortization of intangible assets | $ 116 | $ 171 | $ 234 | $ 348 |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) - USD ($) | Apr. 30, 2019 | Jan. 31, 2019 | Aug. 01, 2018 | Jun. 30, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||||
Acquisitions, net of cash and cash equivalents acquired | $ 3,362,000 | ||||
Goodwill | $ 166,392,000 | $ 166,841,000 | |||
Cardinal Solutions Group, Inc [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquisition, percentage of issued and outstanding shares acquired | 100.00% | ||||
Acquisitions, net of cash and cash equivalents acquired | $ 78,400,000 | ||||
Cardinal Solutions Group, Inc [Member] | North America Segment [Member] | |||||
Business Acquisition [Line Items] | |||||
Net assets acquired | 42,360,000 | ||||
Identifiable intangible assets | 27,540,000 | ||||
Goodwill | 36,040,000 | ||||
Working capital adjustment in the amount paid | $ 762,000 | ||||
Acquisition, estimated tax adjustments | $ 2,600,000 | ||||
Reduction of the previously recorded purchase price | $ 400,000 | ||||
Cardinal Solutions Group, Inc [Member] | North America Segment [Member] | Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Estimated useful life of acquired intangible assets | 10 years |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - USD ($) | Jul. 10, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Subsequent Event [Line Items] | |||
Accounts payable—inventory financing facility | $ 260,890,000 | $ 304,130,000 | |
Unsecured Inventory Financing Facility [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Accounts payable—inventory financing facility | $ 200,000,000 | ||
Inventory financing facility interest rate if balances are not paid within stated vendor terms | Prime plus 2.00%. | ||
Inventory financing facility rate if vendor terms not met equal prime plus | 2.00% |