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SEGMENT AND RELATED DISCLOSURES
 12 Months Ended
Dec. 31, 2024
Segment Information  
Segment and Related Disclosures

15.   SEGMENT AND RELATED DISCLOSURES

​

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 SMBs; 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.

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The Company’s CODM is its Chief Executive Officer, and he assesses the segments’ performance by using each segments’ 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 years ended December 31, 2024, 2023, and 2022 are shown below (in thousands):

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​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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Year Ended December 31, 2024

 

​

 

Enterprise
Solutions

    

Business
Solutions

    

Public Sector
Solutions

    

Total

 

Net sales

​

$

1,181,148

​

$

1,049,139

​

$

571,831

​

$

2,802,118

​

Cost of sales

​

 

1,001,187

​

 

796,684

​

 

484,453

​

​

​

​

Personnel costs

​

 

62,378

​

 

70,472

​

 

36,661

​

​

​

​

Marketing

​

​

5,318

​

​

16,127

​

​

3,646

​

​

​

​

Allocated corporate overhead

​

​

72,601

​

​

81,918

​

​

40,959

​

​

​

​

Depreciation and amortization

​

​

852

​

​

620

​

​

91

​

​

​

​

Other segment expenses1

​

​

4,831

​

​

6,467

​

​

3,733

​

​

​

​

Operating income

​

$

33,981

​

$

76,851

​

$

2,288

​

$

113,120

​

Unallocated Headquarters/Other expenses

​

​

​

​

​

​

​

​

​

​

 

(16,058)

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Interest income, net

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​

​

​

​

​

​

​

​

​

 

18,725

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Other income

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​

​

​

​

​

​

​

​

​

 

1,700

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Income before taxes

​

​

​

​

​

​

​

​

​

​

$

117,487

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​

​

​

​

​

​

​

​

​

​

​

​

​

​

Segment assets

​

$

737,405

​

$

564,110

​

$

114,524

​

$

1,416,039

​

Headquarters/Other assets

​

​

​

​

​

​

​

​

​

​

 

(116,685)

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Consolidated assets

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​

​

​

​

​

​

​

​

​

$

1,299,354

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​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 2023

​

​

 

Enterprise
Solutions

    

Business
Solutions

    

Public Sector
Solutions

    

Total

​

Net sales

​

$

1,201,131

​

$

1,075,599

​

$

573,914

​

$

2,850,644

​

Cost of sales

​

 

1,022,273

​

 

828,499

​

 

488,136

​

​

​

​

Personnel costs

​

 

68,112

​

 

73,103

​

 

37,031

​

​

​

​

Marketing

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​

4,683

​

​

13,755

​

​

3,486

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​

​

​

Allocated corporate overhead

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​

59,825

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​

77,420

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​

38,710

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​

​

​

Depreciation and amortization

​

​

1,452

​

​

628

​

​

84

​

​

​

​

Other segment expenses1

​

​

5,570

​

​

6,044

​

​

4,290

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​

​

​

Operating income

​

$

39,216

​

$

76,150

​

$

2,177

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$

117,543

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Unallocated Headquarters/Other expenses

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​

​

​

​

​

​

​

​

​

 

(14,390)

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Interest income, net

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​

​

​

​

​

​

​

​

​

 

9,961

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Other income

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​

​

​

​

​

​

​

​

​

 

—

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Income before taxes

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​

​

​

​

​

​

​

​

​

$

113,114

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​

​

​

​

​

​

​

​

​

​

​

​

​

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Segment assets

​

$

704,577

​

$

502,739

​

$

79,384

​

$

1,286,700

​

Headquarters/Other assets

​

​

​

​

​

​

​

​

​

​

 

(98,319)

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Consolidated assets

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​

​

​

​

​

​

​

​

​

$

1,188,381

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​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 2022

​

​

 

Enterprise
Solutions

    

Business
Solutions

    

Public Sector
Solutions

    

Total

​

Net sales

​

$

1,324,361

​

$

1,245,311

​

$

555,324

​

$

3,124,996

​

Cost of sales

​

 

1,129,297

​

 

994,362

​

 

475,159

​

​

​

​

Personnel costs

​

 

69,882

​

 

69,301

​

 

32,030

​

​

​

​

Marketing

​

​

2,285

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​

14,385

​

​

3,485

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​

​

​

Allocated corporate overhead

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​

61,659

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​

79,795

​

​

39,897

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​

​

​

Depreciation and amortization

​

​

1,992

​

​

661

​

​

78

​

​

​

​

Other segment expenses1

​

​

5,769

​

​

7,332

​

​

3,570

​

​

​

​

Operating income

​

$

53,477

​

$

79,475

​

$

1,105

​

$

134,057

​

Unallocated Headquarters/Other expenses

​

​

​

​

​

​

​

​

​

​

 

(13,505)

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Interest income, net

​

​

​

​

​

​

​

​

​

​

 

1,083

​

Other income

​

​

​

​

​

​

​

​

​

​

 

—

​

Income before taxes

​

​

​

​

​

​

​

​

​

​

$

121,635

​

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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.

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The assets of the Company’s operating segments presented above consist primarily of accounts receivable, net intercompany receivable, goodwill, and other intangibles. Goodwill of $66,236 and $7,366 is held by the Enterprise Solutions and Business Solutions segments, respectively, as of December 31, 2024. Assets reported under the Headquarters/Other are managed by corporate headquarters, including cash, inventory, property and equipment and intercompany balance, net. Total assets for the Headquarters/Other are presented net of intercompany balances eliminations of $69,695 and $35,522 for the years ended December 31, 2024 and 2023, respectively. The Company’s capital expenditures consist largely of IT hardware and software purchased to maintain or upgrade its management information systems. These systems serve all of the Company’s subsidiaries, to varying degrees, and as a result, the CODM does not evaluate capital expenditures on a segment basis.

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Substantially all of the Company’s sales in 2024, 2023, and 2022 were made to customers located in the United States. Shipments to customers located in foreign countries were not more than 2% of total net sales in 2024, 2023, and 2022. All of the Company’s assets as of December 31, 2024 and 2023 were located in the United States. The Company’s primary target customers are SMBs, medium-to-large businesses, and federal, state, and local government agencies and educational institutions.