XML 39 R9.htm IDEA: XBRL DOCUMENT
v3.19.2

Revenue Recognition | 12 Months Ended
--- | ---
Jun. 30, 2019
Revenue from Contract with Customer [Abstract] |
Revenue Recognition | Revenue Recognition The Company provides technology solutions and services from the world's leading suppliers of POS, payments, barcode, physical security, unified communications and collaboration, and telecom and cloud services. This includes hardware, related accessories, device configuration as well as software licenses, professional services and hardware support programs. The Company adopted ASC 606 effective July 1, 2018 utilizing the full retrospective method. In determining the appropriate amount of revenue to recognize, the Company applies the following five-step model: (i) identify contracts with customers; (ii) identify performance obligations in the contracts; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations per the contracts; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company recognizes revenue as control of products and services are transferred to customers, which is generally at the point of shipment. The Company delivers products to customers in several ways, including: (i) shipment from the Company's warehouse, (ii) drop-shipment directly from the supplier, or (iii) electronic delivery for software licenses. Significant Judgments: Principal versus Agent Considerations The Company is the principal for sales of all hardware, software and certain services, including self-branded warranty programs. The Company considers itself the principal in these transactions as it has control of the product or service before it is transferred to the customer. When the Company provides self-branded warranty programs, it engages a third party, generally the original equipment manufacturer, to cover the fulfillment of any obligations arising from these contracts. These revenues and associated third-party costs are amortized over the life of the contract on a straight-line basis. The Company recognizes the previously described revenue and cost of goods sold on a gross basis. The Company is the agent for third-party service contracts, including product warranties and supplier-hosted software. These service contracts are sold separately from the products, and the Company often serves as the agent for the contract on behalf of the original equipment manufacturer. The Company's responsibility is to arrange for the provision of the specified service by the original equipment manufacturer, and the Company does not control the specified service before it is transferred to the customer. Because the Company acts as an agent, revenue is recognized net of cost at the time of sale. Related to the Company’s Intelisys business, the Company acts as a master agent connecting independent sales partners with service providers or suppliers who offer telecom and cloud services to end-customers. Intelisys’ sales partners earn commission payments from those service providers or suppliers on end-customer sales. Intelisys provides commission processing services to sales partners, earning a percentage of the commission stream. Because the Company acts as an agent, revenue is recognized on a net basis. Variable Considerations For certain transactions, products are sold with a right of return and may also provide other rebates or incentives, which are accounted for as variable consideration. The Company estimates returns allowance based on historical experience and reduces revenue accordingly. The Company estimates the amount of variable consideration for rebates and incentives by using the expected value or the most likely amount to be given to the customer and reduces the revenue by those estimated amounts. These estimates are reviewed and updated as necessary at the end of each reporting period. Contract Balances The Company records contract assets and liabilities for payments received from customers in advance of services performed. These assets and liabilities are the result of the sales of the Company's self-branded warranty programs and other transactions where control has not yet passed to the customer. These amounts are immaterial to the consolidated financial statements for the periods presented. Practical Expedients & Accounting Policy Elections
• | Incremental costs of obtaining a contract - These costs are included in selling, general and administrative expenses as the amortization period is generally one year or less. The Company expenses costs associated with obtaining and fulfilling contracts as incurred.
• | Shipping costs - The Company accounts for certain shipping and handling activities as fulfillment costs and expenses them as incurred.
• | Significant financing components - The Company has elected not to adjust the promised amount of consideration for the effects of a significant financing component as the Company expects, at contract inception, that the period between when the entity transfers a promised good or service to a customer and when the customer pays for that good or service will generally be one year or less.
• | Sales tax and other related taxes - Sales and other tax amounts collected from customers for remittance to governmental authorities are excluded from revenue.
Disaggregation of Revenue The following tables represent the Company's disaggregation of revenue:
|  | Fiscal year ended June 30, 2019
|  |  |  | (in thousands) |  |
|  | Worldwide Barcode, Networking & Security Segment |  | Worldwide Communications & Services Segment |  | Total
Revenue by product/service: |  |  |  |  |  |
Technology solutions |  | $ | 2,589,837 |  |  | $ | 1,228,017 |  |  | $ | 3,817,854 |
Master agency and professional services |  | — |  |  | 55,257 |  |  | 55,257 |
|  | $ | 2,589,837 |  |  | $ | 1,283,274 |  |  | $ | 3,873,111 |
|  | Fiscal year ended June 30, 2018
|  |  |  | (in thousands) |  |
|  | Worldwide Barcode, Networking & Security Segment |  | Worldwide Communications & Services Segment |  | Total
Revenue by product/service: |  |  |  |  |  |
Technology solutions |  | $ | 2,628,988 |  |  | $ | 1,174,960 |  |  | $ | 3,803,948 |
Master agency and professional services |  | — |  |  | 42,312 |  |  | 42,312 |
|  | $ | 2,628,988 |  |  | $ | 1,217,272 |  |  | $ | 3,846,260 |
|  | Fiscal year ended June 30, 2017
|  |  |  | (in thousands) |  |
|  | Worldwide Barcode, Networking & Security Segment |  | Worldwide Communications & Services Segment |  | Total
Revenue by product/service: |  |  |  |  |  |
Technology solutions |  | $ | 2,389,256 |  |  | $ | 1,149,508 |  |  | $ | 3,538,764 |
Master agency and professional services |  | — |  |  | 29,422 |  |  | 29,422 |
|  | $ | 2,389,256 |  |  | $ | 1,178,930 |  |  | $ | 3,568,186 |

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration