| Segment Information |
Note 7–Segment Information The internal reporting structure used by the Company’s chief operating decision maker, or CODM, to assess performance and allocate resources determines the basis for the Company’s operating segments. The Company’s operations are organized under three reporting segments—the Enterprise Solutions segment, which serves primarily medium-to-large corporations; the Business Solutions segment, which serves primarily small- to medium-sized businesses; and the Public Sector Solutions segment, which serves primarily federal, state, and local government and educational institutions. In addition, the Headquarters/Other provides services in areas such as finance, human resources, IT, marketing, and product management. Most of the operating costs associated with the Headquarters/Other functions are charged to the operating segments based on their estimated usage of the underlying functions. The Company reports these charges to the operating segments as “Allocations”. Headquarters/Other amounts that are not allocated to the operating segments are shown as reconciling items in the tables below. The Company’s CODM is its Chief Executive Officer, and he assesses the segments’ performance by using each segment’s operating income (which includes certain corporate overhead allocations attributable to each of the segments). Net sales presented below exclude inter-segment product revenues. The CODM uses operating income for each segment in the annual budget, periodic forecasting, and quarterly results processes. Segment information applicable to the Company’s operating segments and the related reconciliations to consolidated amounts for the three and six months ended June 30, 2026 and 2025 are shown below (in thousands): | | | | | | | | | | | | | | | Three Months Ended June 30, 2026 | | | Enterprise
Solutions | | Business
Solutions | | Public Sector
Solutions | | Total | Net sales | | $ | 369,620 | | $ | 343,870 | | $ | 140,506 | | $ | 853,996 | Cost of sales | | | 314,475 | | | 264,789 | | | 117,260 | | | | Personnel costs | | | 18,026 | | | 17,900 | | | 9,209 | | | | Marketing | | | 1,591 | | | 4,540 | | | 1,246 | | | | Allocated corporate overhead | | | 18,955 | | | 22,796 | | | 11,398 | | | | Depreciation and amortization | | | 149 | | | 104 | | | 9 | | | | Other segment expenses1 | | | 1,359 | | | 2,010 | | | 1,468 | | | | Operating income (loss) | | $ | 15,065 | | $ | 31,731 | | $ | (84) | | $ | 46,712 | Unallocated Headquarters/Other expenses | | | | | | | | | | | | (3,700) | Interest income, net | | | | | | | | | | | | 2,525 | Income before taxes | | | | | | | | | | | $ | 45,537 |
| | | | | | | | | | | | | | | Three Months Ended June 30, 2025 | | | Enterprise
Solutions | | Business
Solutions | | Public Sector
Solutions | | Total | Net sales | | $ | 326,011 | | $ | 293,168 | | $ | 140,514 | | $ | 759,693 | Cost of sales | | | 278,389 | | | 224,319 | | | 119,219 | | | | Personnel costs | | | 16,995 | | | 17,662 | | | 9,273 | | | | Marketing | | | 787 | | | 2,564 | | | 575 | | | | Allocated corporate overhead | | | 18,069 | | | 21,521 | | | 10,761 | | | | Depreciation and amortization | | | 195 | | | 155 | | | 22 | | | | Other segment expenses1 | | | 1,230 | | | 1,383 | | | 2,796 | | | | Operating income (loss) | | $ | 10,346 | | $ | 25,564 | | $ | (2,132) | | $ | 33,778 | Unallocated Headquarters/Other expenses | | | | | | | | | | | | (2,881) | Interest income, net | | | | | | | | | | | | 3,216 | Income before taxes | | | | | | | | | | | $ | 34,113 |
| 1) | Other segment expenses for each of the reportable segments include service contracts/subscriptions, professional fees, facilities operations, credit card fees, and other miscellaneous expenses. |
| | | | | | | | | | | | | | | Six Months Ended June 30, 2026 | | | Enterprise
Solutions | | Business
Solutions | | Public Sector
Solutions | | Total | Net sales | | $ | 716,091 | | $ | 619,432 | | $ | 240,339 | | $ | 1,575,862 | Cost of sales | | | 610,721 | | | 472,848 | | | 202,083 | | | | Personnel costs | | | 35,939 | | | 35,853 | | | 17,011 | | | | Marketing | | | 3,346 | | | 7,774 | | | 1,984 | | | | Allocated corporate overhead | | | 37,718 | | | 45,370 | | | 22,683 | | | | Depreciation and amortization | | | 346 | | | 258 | | | 25 | | | | Other segment expenses1 | | | 2,255 | | | 3,713 | | | 2,691 | | | | Operating income (loss) | | $ | 25,766 | | $ | 53,616 | | $ | (6,138) | | $ | 73,244 | Unallocated Headquarters/Other expenses | | | | | | | | | | | | (10,007) | Interest income, net | | | | | | | | | | | | 5,888 | Income before taxes | | | | | | | | | | | $ | 69,125 | | | | | | | | | | | | | | Segment assets | | $ | 797,889 | | $ | 693,380 | | $ | 102,459 | | $ | 1,593,728 | Headquarters/Other assets | | | | | | | | | | | | (166,094) | Consolidated assets | | | | | | | | | | | $ | 1,427,634 |
| | | | | | | | | | | | | | | Six Months Ended June 30, 2025 | | | Enterprise
Solutions | | Business
Solutions | | Public Sector
Solutions | | Total | Net sales | | $ | 624,014 | | $ | 551,553 | | $ | 285,172 | | $ | 1,460,739 | Cost of sales | | | 534,094 | | | 417,297 | | | 244,271 | | | | Personnel costs | | | 33,165 | | | 35,437 | | | 18,859 | | | | Marketing | | | 2,884 | | | 7,403 | | | 1,659 | | | | Allocated corporate overhead | | | 36,359 | | | 42,997 | | | 21,499 | | | | Depreciation and amortization | | | 387 | | | 310 | | | 45 | | | | Other segment expenses1 | | | 2,277 | | | 4,128 | | | 4,313 | | | | Operating income (loss) | | $ | 14,848 | | $ | 43,981 | | $ | (5,474) | | $ | 53,355 | Unallocated Headquarters/Other expenses | | | | | | | | | | | | (7,936) | Interest income, net | | | | | | | | | | | | 7,116 | Other income | | | | | | | | | | | | 76 | Income before taxes | | | | | | | | | | | $ | 52,611 | | | | | | | | | | | | | | Segment assets | | $ | 753,931 | | $ | 591,894 | | $ | 88,650 | | $ | 1,434,475 | Headquarters/Other assets | | | | | | | | | | | | (165,198) | Consolidated assets | | | | | | | | | | | $ | 1,269,277 |
| 1) | Other segment expenses for each of the reportable segments include service contracts/subscriptions, professional fees, facilities operations, credit card fees, and other miscellaneous expenses. |
The assets of the Company’s three operating segments presented above consist primarily of accounts receivable, net intercompany receivables, goodwill, and other intangibles, net. Assets reported under the Headquarters/Other are managed by corporate headquarters, including cash and cash equivalents, short-term investments, inventories, property and equipment, ROU assets, and intercompany balance, net. As of June 30, 2026 and 2025, total assets for the Headquarters/Other were presented net of intercompany balance eliminations of $64,232 and $46,339, respectively. The Company’s capital expenditures consist largely of IT hardware and software purchased to maintain or upgrade its management information systems. These information systems serve all of the Company’s segments, to varying degrees, and accordingly, the CODM does not evaluate capital expenditures on a segment-by-segment basis.
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