Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: September 30, 2024


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission File Number: 0-25092

INSIGHT ENTERPRISES, INC.

(Exact name of registrant as specified in its charter)


Delaware			86-0766246
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification Number)

2701 E. Insight Way, Chandler, Arizona 85286

(Address of principal executive offices) (Zip Code)

(480) 333-3000

(Registrant’s telephone number, including area code)

__________________________________________________________________

Not Applicable

_________________________________________________________________

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Common stock, par value $0.01	NSIT	The NASDAQ Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.


Yes x			No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).


Yes x			No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	x	Accelerated filer	o
Non-accelerated filer	o	Smaller reporting company	o
		Emerging growth company	o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).


Yes o			No x

The number of shares outstanding of the issuer’s common stock as of October 25, 2024 was 31,761,884.

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INSIGHT ENTERPRISES, INC.

QUARTERLY REPORT ON FORM 10-Q

Three Months Ended September 30, 2024

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		Page
PART I -	Financial Information

Item 1 –	Financial Statements:

	Consolidated Balance Sheets (unaudited) – September 30, 2024 and December 31, 2023	1

	Consolidated Statements of Operations (unaudited) – Three and Nine Months Ended September 30, 2024 and 2023	2

	Consolidated Statements of Comprehensive Income (unaudited) – Three and Nine Months Ended September 30, 2024 and 2023	3

	Consolidated Statements of Stockholders’ Equity (unaudited) – Three and Nine Months Ended September 30, 2024 and 2023	4

	Consolidated Statements of Cash Flows (unaudited) – Nine Months Ended September 30, 2024 and 2023	5

	Notes to Consolidated Financial Statements (unaudited)	6

Item 2 –	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25

Item 3 –	Quantitative and Qualitative Disclosures About Market Risk	43

Item 4 –	Controls and Procedures	43

PART II -	Other Information	44

Item 1 –	Legal Proceedings	44

Item 1A –	Risk Factors	44

Item 2 –	Unregistered Sales of Equity Securities and Use of Proceeds	44

Item 3 –	Defaults Upon Senior Securities	45

Item 4 –	Mine Safety Disclosures	45

Item 5 –	Other Information	45

Item 6 –	Exhibits	46

Signatures		47

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INSIGHT ENTERPRISES, INC.

FORWARD-LOOKING INFORMATION

References to "the Company," “Insight,” “we,” “us,” “our” and other similar words refer to Insight Enterprises, Inc. and its consolidated subsidiaries, unless the context suggests otherwise. Certain statements in this Quarterly Report on Form 10-Q, including statements in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part I, Item 2 of this report, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include: projections of, and matters that affect, net sales, gross profit, gross margin, operating expenses, earnings from operations, non-operating income and expenses, net earnings or cash flows, cash needs and the payment of accrued expenses and liabilities; our expectations regarding supply constraints, including our belief that remaining supply constraints and extended lead times for certain infrastructure, including networking products, have now normalized back to near historic levels; our belief that the general slowdown in our clients' decision making will continue in the short term; our expectations regarding certain trends for our business; our expectation that transformation costs are not expected to recur in the longer term; the expected effects of seasonality on our business, including as a result of recent acquisitions; expectations of further consolidation and trends in the Information Technology (“IT”) industry; our business strategy and our strategic initiatives, including our efforts to grow our core business in the current environment, develop and grow our global cloud business and build scalable solutions; expectations regarding the impact of partner incentives and changes to partner incentive programs; our expectations about future benefits of our acquisitions and our plans related thereto, including potential expansion into wider regions; the increasing demand for big data solutions; the availability of competitive sources of products for our purchase and resale; our intentions concerning the payment of dividends; our acquisition strategy and our expectation that we will incur additional acquisition expenses in executing such strategy; our expectations regarding the impact of inflation, including our expectation that higher interest rates may continue for the remainder of 2024, and our ability to offset the effects of inflation and manage any increase in interest rates; projections of capital expenditures; our plans to continue to evolve our IT systems; our expectation that our gross margins will improve as our mix of services and solutions increase; plans relating to share repurchases; our liquidity and the sufficiency of our capital resources, the availability of financing and our needs or plans relating thereto; our expectation that we have sufficient funds available from capacity under our senior secured revolving credit facility (the “ABL facility”), as well as cash we expect to generate from operations, to fund any conversions of our convertible senior notes (the "Convertible Notes") that may occur; the effects of new accounting principles and expected dates of adoption; the effect of indemnification obligations; projections about the outcome of ongoing tax audits; our expectations regarding future tax rates and the impact of domestic and global tax legislation, including our expectation that our effective tax rate will return to more typical levels in the foreseeable future; adequate provisions for and our positions and strategies with respect to ongoing and threatened litigation and expected outcomes; our ability to expand our client relationships; our expectations that pricing pressures in the IT industry will continue; our intention to use cash generated in the remainder of 2024 in excess of working capital needs to pay down our ABL facility and inventory financing facilities and for strategic acquisitions; our belief that our office facilities are adequate and that we will be able to extend our current leases or locate substitute facilities on satisfactory terms; our belief that we have adequate provisions for losses; our expectation that we will not incur interest payments under our inventory financing facilities; our expectations that future income will be sufficient to fully recover deferred tax assets; our exposure to off-balance sheet arrangements; statements of belief; and statements of assumptions underlying any of the foregoing. Forward-looking statements are identified by such words as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,” “project,” “will,” “may” and variations of such words and similar expressions and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. There can be no assurances that results described in forward-looking statements will be achieved, and actual results could differ materially from those suggested by the forward-looking statements. Some of the important factors that could cause our actual results to differ materially from those projected in any forward-looking statements include, but are not limited to, the following, which are discussed in “Risk Factors” in Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2023 and in "Risk Factors" in Part II, Item 1A of this report:

•actions of our competitors, including manufacturers and publishers of products we sell;

•our reliance on our partners for product availability, competitive products to sell and marketing funds and purchasing incentives, which can change significantly in the amounts made available and in the requirements year over year;

•our ability to keep pace with rapidly evolving technological advances and the evolving competitive marketplace;

•general economic conditions, economic uncertainties and changes in geopolitical conditions, including the possibility of a recession or a decline in market activity as a result of the ongoing conflicts in Ukraine and Gaza;

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

•our ability to provide high quality services to our clients;

•our reliance on independent shipping companies;

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INSIGHT ENTERPRISES, INC.

•the risks associated with our international operations;

•supply constraints for products;

•natural disasters or other adverse occurrences, including public health issues such as pandemics or epidemics;

•disruptions in our IT systems and voice and data networks;

•cyberattacks, outages, or third-party breaches of data privacy as well as related breaches of government regulations;

•intellectual property infringement claims and challenges to our registered patents, trademarks and trade names;

•potential liability and competitive risk based on the development, adoption, and use of Generative Artificial Intelligence ("GenAI");

•legal proceedings, client audits and failure to comply with laws and regulations;

•risks of termination, delays in payment, audits and investigations related to our public sector contracts;

•exposure to changes in, interpretations of, or enforcement trends related to tax rules and regulations;

•our potential to draw down a substantial amount of indebtedness;

•the conditional conversion feature of the Convertible Notes, which has been triggered, and may adversely affect the Company’s financial condition and operating results;

•the Company is subject to counterparty risk with respect to certain hedge and warrant transactions entered into in connection with the issuance of the Convertible Notes (the "Call Spread Transactions");

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

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

•potential contractual disputes with our clients and third-party suppliers;

•our dependence on certain key personnel and our ability to attract, train and retain skilled teammates;

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

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

Additionally, there may be other risks described from time to time in the reports that we file with the Securities and Exchange Commission (the “SEC”). Any forward-looking statements in this report are made as of the date of this filing and should be considered in light of various important factors, including the risks and uncertainties listed above, as well as others. We assume no obligation to update, and, except as may be required by law, do not intend to update, any forward-looking statements. We do not endorse any projections regarding future performance that may be made by third parties.

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PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

INSIGHT ENTERPRISES, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

(unaudited)


	September 30, 2024		December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	317,449	$	268,730
Accounts receivable, net of allowance for doubtful accounts of $24,654 and $12,623, respectively	3,897,481		3,568,290
Inventories	151,013		184,605
Contract assets, net	85,767		120,518
Other current assets	208,798		189,158
Total current assets	4,660,508		4,331,301
Long-term contract assets, net	105,273		132,780
Property and equipment, net of accumulated depreciation and amortization of $222,495 and $219,591, respectively	214,878		210,061
Goodwill	888,808		684,345
Intangible assets, net of accumulated amortization of $226,900 and $175,463, respectively	448,680		369,687
Long-term accounts receivable	828,465		412,666
Other assets	139,831		145,510
	$	7,286,443	$	6,286,350
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable—trade	$	2,683,323	$	2,255,183
Accounts payable—inventory financing facilities	235,192		231,850
Accrued expenses and other current liabilities	493,175		538,346
Current portion of long-term debt	332,439		348,004
Total current liabilities	3,744,129		3,373,383
Long-term debt	754,377		592,517
Deferred income taxes	72,849		27,588
Long-term accounts payable	788,078		353,794
Other liabilities	160,710		203,335
	5,520,143		4,550,617
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; 31,761 shares at September 30, 2024 and 32,590 shares at December 31, 2023 issued and outstanding	318		326
Additional paid-in capital	334,337		328,607
Retained earnings	1,471,546		1,448,412
Accumulated other comprehensive loss – foreign currency translation adjustments	(39,901)		(41,612)
Total stockholders’ equity	1,766,300		1,735,733
	$	7,286,443	$	6,286,350

See accompanying notes to consolidated financial statements.

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INSIGHT ENTERPRISES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Net sales:
Products	$	1,673,779	$	1,890,154	$	5,364,169	$	5,803,408
Services	414,107		376,132		1,264,864		1,136,421
Total net sales	2,087,886		2,266,286		6,629,033		6,939,829
Costs of goods sold:
Products	1,486,271		1,697,543		4,794,125		5,219,720
Services	169,530		159,873		508,530		486,734
Total costs of goods sold	1,655,801		1,857,416		5,302,655		5,706,454
Gross profit:
Products	187,508		192,611		570,044		583,688
Services	244,577		216,259		756,334		649,687
Gross profit	432,085		408,870		1,326,378		1,233,375
Operating expenses:
Selling and administrative expenses	329,996		309,793		984,664		938,037
Severance and restructuring expenses, net	8,543		2,923		15,638		2,955
Acquisition and integration related expenses	695		4,292		2,166		4,449
Earnings from operations	92,851		91,862		323,910		287,934
Non-operating expense (income):
Interest expense, net	16,629		12,013		43,376		31,766
Other expense (income), net	1,104		(203)		(128)		489
Earnings before income taxes	75,118		80,052		280,662		255,679
Income tax expense	16,910		19,805		67,983		64,978
Net earnings	$	58,208	$	60,247	$	212,679	$	190,701
Net earnings per share:
Basic	$	1.81	$	1.85	$	6.55	$	5.76
Diluted	$	1.52	$	1.62	$	5.53	$	5.13
Shares used in per share calculations:
Basic	32,216		32,574		32,459		33,127
Diluted	38,331		37,203		38,445		37,149

See accompanying notes to consolidated financial statements.

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INSIGHT ENTERPRISES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Net earnings	$	58,208	$	60,247	$	212,679	$	190,701
Other comprehensive (loss) gain, net of tax:
Foreign currency translation adjustments	17,227		(12,326)		1,711		(531)
Total comprehensive income	$	75,435	$	47,921	$	214,390	$	190,170

See accompanying notes to consolidated financial statements.

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INSIGHT ENTERPRISES, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands)

(unaudited)


	Common Stock			Treasury Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total Stockholders' Equity
	Shares	Par Value		Shares	Amount
Balances at June 30, 2024	32,584	$	326	—	$	—	$	334,573	$	(57,128)	$	1,569,774	$	1,847,545
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes	6	—		—	—		(488)		—		—		(488)
Stock-based compensation expense	—	—		—	—		9,316		—		—		9,316
Employee stock purchase plan issuances	6	—		—	—		1,149		—		—		1,149


Repurchase of treasury stock	—	—		(835)	(165,020)		—		—		—		(165,020)
Retirement of treasury stock	(835)	(8)		835	165,020		(8,576)		—		(156,436)		—
Excise tax on stock repurchases	—	—		—	—		(1,637)		—		—		(1,637)
Foreign currency translation adjustments, net of tax	—	—		—	—		—		17,227		—		17,227
Net earnings	—	—		—	—		—		—		58,208		58,208
Balances at September 30, 2024	31,761	$	318	—	$	—	$	334,337	$	(39,901)	$	1,471,546	$	1,766,300
Balances at June 30, 2023	32,568	$	326	—	$	—	$	318,078	$	(47,007)	$	1,297,558	$	1,568,955

Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes	9	—		—	—		(388)		—		—		(388)
Stock-based compensation expense	—	—		—	—		9,548		—		—		9,548


Excise tax on stock repurchases	—	—		—	—		13		—		—		13
Foreign currency translation adjustments, net of tax	—	—		—	—		—		(12,326)		(1)		(12,327)
Net earnings	—	—		—	—		—		—		60,247		60,247
Balances at September 30, 2023	32,577	$	326	—	$	—	$	327,251	$	(59,333)	$	1,357,804	$	1,626,048
Balances at December 31, 2023	32,590	$	326	—	$	—	$	328,607	$	(41,612)	$	1,448,412	$	1,735,733
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes	177	2		—	—		(11,501)		—		—		(11,499)
Stock-based compensation expense	—	—		—	—		26,216		—		—		26,216
Employee stock purchase plan issuances	17	—		—	—		3,149		—		—		3,149
Shares issued upon conversion of Convertible Notes	141	1		—	—		(1)		—		—		—
Shares received from convertible note hedge upon conversion of Convertible Notes	(141)	(1)		—	—		1		—		—		—
Repurchase of treasury stock	—	—		(1,023)	(200,020)		—		—		—		(200,020)
Retirement of treasury stock	(1,023)	(10)		1,023	200,020		(10,465)		—		(189,545)		—
Excise tax on stock repurchases	—	—		—	—		(1,669)		—		—		(1,669)
Foreign currency translation adjustments, net of tax	—	—		—	—		—		1,711		—		1,711
Net earnings	—	—		—	—		—		—		212,679		212,679
Balances at September 30, 2024	31,761	$	318	—	$	—	$	334,337	$	(39,901)	$	1,471,546	$	1,766,300
Balances at December 31, 2022	34,009	$	340	—	$	—	$	327,872	$	(58,802)	$	1,368,658	$	1,638,068

Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes	202	2		—	—		(9,394)		—		—		(9,392)
Stock-based compensation expense	—	—		—	—		26,211		—		—		26,211
Repurchase of treasury stock	—	—		(1,634)	(217,108)		—		—		—		(217,108)
Retirement of treasury stock	(1,634)	(16)		1,634	217,108		(15,537)		—		(201,555)		—
Excise tax on stock repurchases	—	—		—	—		(1,901)		—		—		(1,901)
Foreign currency translation adjustments, net of tax	—	—		—	—		—		(531)		—		(531)
Net earnings	—	—		—	—		—				190,701		190,701
Balances at September 30, 2023	32,577	$	326	—	$	—	$	327,251	$	(59,333)	$	1,357,804	$	1,626,048

See accompanying notes to consolidated financial statements.

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INSIGHT ENTERPRISES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)


	Nine Months Ended September 30,
	2024		2023
Cash flows from operating activities:
Net earnings	$	212,679	$	190,701
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	72,357		44,698
Provision for losses on accounts receivable	7,440		3,754
Provision for losses on contract assets	2,474		—
Non-cash stock-based compensation	26,216		26,211
Deferred income taxes	16,342		(9,062)
Amortization of debt issuance costs	4,090		3,649
Gain on revaluation of earnout liabilities	(30,648)		—
Other adjustments	(3,155)		(1,356)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable	(291,692)		201,628
Decrease in inventories	28,407		75,124
Decrease (increase) in contract assets	49,798		(1,810)
Increase in long-term accounts receivable	(434,966)		(73,451)
Decrease in other assets	13,626		5,392
Increase (decrease) in accounts payable	374,166		(57,882)

Increase in long-term accounts payable	428,081		52,479
Decrease in accrued expenses and other liabilities	(57,484)		(46,333)
Net cash provided by operating activities:	417,731		413,742
Cash flows from investing activities:
Proceeds from sale of assets	13,751		15,515
Purchases of property and equipment	(32,371)		(29,070)
Acquisitions, net of cash and cash equivalents acquired	(270,248)		(82,875)
Net cash used in investing activities:	(288,868)		(96,430)
Cash flows from financing activities:
Borrowings on ABL revolving credit facility	3,631,660		3,416,737
Repayments on ABL revolving credit facility	(3,964,940)		(3,382,444)
Net borrowings (repayments) under inventory financing facilities	3,102		(32,451)
Proceeds from issuance of senior unsecured notes	500,000		—
Payment of debt issuance costs	(8,647)		—
Repurchases of common stock	(200,020)		(217,108)
Repayment of principal on the Convertible Notes	(16,895)		—
Earnout and acquisition related payments	(18,297)		(10,748)
Other payments	(8,486)		(9,614)
Net cash used in financing activities:	(82,523)		(235,628)
Foreign currency exchange effect on cash, cash equivalents and restricted cash balances	2,660		(1,074)
Increase in cash, cash equivalents and restricted cash	49,000		80,610
Cash, cash equivalents and restricted cash at beginning of period	270,785		165,718
Cash, cash equivalents and restricted cash at end of period	$	319,785	$	246,328

See accompanying notes to consolidated financial statements.

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INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1. Basis of Presentation and Recently Issued Accounting Standards

We help our clients accelerate their digital journey to modernize their businesses and maximize the value of technology. We serve these clients in North America; Europe, the Middle East and Africa (“EMEA”); and Asia-Pacific (“APAC”). As a Fortune 500-ranked solutions integrator, we enable secure, end-to-end digital transformation and meet the needs of our clients through a comprehensive portfolio of solutions, far-reaching partnerships and 36 years of broad IT expertise. We amplify our solutions and services with global scale, local expertise and our e-commerce experience, enabling our clients to realize their digital ambitions in multiple ways. Our company is organized in the following three operating segments, which are primarily defined by their related geographies:


Operating Segment						Geography
North America						United States and Canada
EMEA						Europe, Middle East and Africa
APAC						Asia-Pacific

Our offerings in North America and certain countries in EMEA and APAC include hardware, software and services, including cloud solutions. Our offerings in the remainder of our EMEA and APAC segments consist largely of software and certain software-related services and cloud solutions.

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly our financial position as of September 30, 2024 and our results of operations for the three and nine months ended September 30, 2024 and 2023 and cash flows for the nine months ended September 30, 2024 and 2023. The consolidated balance sheet as of December 31, 2023 was derived from the audited consolidated balance sheet at such date. The accompanying unaudited consolidated financial statements and notes have been prepared in accordance with the rules and regulations promulgated by the SEC and consequently do not include all of the disclosures normally required by United States generally accepted accounting principles (“GAAP”).

The results of operations for interim periods are not necessarily indicative of results for the full year, due in part to the seasonal nature of our business. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including the related notes thereto, in our Annual Report on Form 10-K for the year ended December 31, 2023.

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, valuation of acquired assets and assumed liabilities, including intangible assets and goodwill and impairment of long-lived assets, including purchased intangibles and goodwill, if indicators of potential impairment exist.

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INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Recently Issued Accounting Standards

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures", which requires public entities to disclose information about their reportable segments' significant expenses on an interim and annual basis. The amendments aim to improve interim disclosure requirements, clarify situations where an entity can reveal multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and include other disclosure requirements. The main objective of the amendments is to assist investors in understanding the entity's overall performance and evaluate potential future cash flows. The guidance is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024 with early adoption being permitted. We did not early adopt this guidance. The updated guidance is not expected to have a material effect on the Company's consolidated financial statements or disclosures.

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, 2023 that affect or may affect our current financial statements.

2. Receivables, Contract Liabilities and Performance Obligations

Contract Balances

The following table provides information about receivables and contract liabilities as of September 30, 2024 and December 31, 2023 (in thousands):


	September 30, 2024		December 31, 2023
Current receivables, which are included in “Accounts receivable, net”	$	3,897,481	$	3,568,290
Contract assets, net	85,767		120,518
Long-term accounts receivable	828,465		412,666
Long-term contract assets, net	105,273		132,780
Contract liabilities, which are included in “Accrued expenses and other current liabilities” and “Other liabilities”	114,420		107,217

Significant changes in the gross contract assets balances during the nine months ended September 30, 2024 are as follows (in thousands):


	Contract Assets
Balances at December 31, 2023	$	272,287

Reclassification of beginning contract assets to receivables, as a result of rights to consideration becoming unconditional	(80,520)
Contract assets recognized, net of reclassification to receivables	21,465
Measurement period adjustments to acquired contract assets	(4,838)
Balances at September 30, 2024	$	208,394

Contract assets consist of amounts the Company is entitled to for the resale of third-party consumption-based services, prior to payment becoming unconditional. In these transactions, the Company invoices clients for the gross amount of consideration it is responsible to collect,

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INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

including amounts ultimately passed on to the third-party service providers. As of September 30, 2024, contract assets, net of allowances, were $191,040,000.

Gross contract assets by our internal risk ratings as of September 30, 2024 are summarized as follows (in thousands):


	Contract Assets
Low risk	$	38,314
Moderate risk	46,854
High risk	123,226
Total contract assets	$	208,394

Changes in the contract liabilities balances during the nine months ended September 30, 2024 are as follows (in thousands):


	Contract Liabilities
Balances at December 31, 2023	$	107,217
Reclassification of the beginning contract liabilities to revenue, as the result of performance obligations satisfied	(68,993)
Cash received in advance and not recognized as revenue	76,196
Balances at September 30, 2024	$	114,420

During the nine months ended September 30, 2023, the Company recognized revenue of $56,429,000 related to its contract liabilities.

Transaction price allocated to the remaining performance obligations

The following table includes estimated net sales related to performance obligations that are unsatisfied (or partially unsatisfied) as of September 30, 2024 that are expected to be recognized in the future (in thousands):


	Services
Remainder of 2024	$	45,266
2025	78,594
2026	31,948
2027 and thereafter	43,328
Total remaining performance obligations	$	199,136

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, the 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 seven months. Additionally, for our time and material services contracts, whereby we have the right to consideration from a client in an amount that corresponds directly with the value to the client of our performance completed to date, we recognized revenue in the amount to which we have a right to invoice as of September 30, 2024 and do not disclose information about related remaining performance obligations in the table above. Our time and material contracts have an average expected duration of 27 months.

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INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

The majority of our backlog historically has been, and continues to be, open cancellable 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 cancellable purchase orders, which do not qualify for revenue recognition, in the table above.

3. Assets Held for Sale

During the nine months ended September 30, 2023, we completed the sale of our properties in Montreal, Canada and Sheffield, United Kingdom for total net proceeds of approximately $15,476,000. We recognized a net gain on sale of approximately $6,813,000, reported in severance and restructuring expenses, net.

4. Net Earnings Per Share

Basic earnings per share ("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”) and certain shares underlying the Convertible Notes and the warrants relating to the Call Spread Transactions, as applicable. A reconciliation of the denominators of the basic and diluted EPS calculations follows (in thousands, except per share data):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Numerator:
Net earnings	$	58,208	$	60,247	$	212,679	$	190,701
Denominator:
Weighted average shares used to compute basic EPS	32,216		32,574		32,459		33,127
Dilutive potential common shares due to dilutive RSUs, net of tax effect	300		278		308		275
Dilutive potential common shares due to the Convertible Notes	3,258		2,774		3,269		2,533
Dilutive potential common shares due to the Warrants	2,557		1,577		2,409		1,214
Weighted average shares used to compute diluted EPS	38,331		37,203		38,445		37,149
Net earnings per share:
Basic	$	1.81	$	1.85	$	6.55	$	5.76
Diluted	$	1.52	$	1.62	$	5.53	$	5.13

For the three and nine months ended September 30, 2024, 500 and 10,000, respectively, of our RSUs were excluded from the diluted EPS calculations because their inclusion would have been anti-dilutive. For the three and nine months ended September 30, 2023, 65,000 and 72,000, respectively, of our RSUs were excluded from the diluted EPS calculations because their inclusion would have been anti-dilutive.

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INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

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

Debt

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


	September 30, 2024		December 31, 2023
ABL revolving credit facility	$	262,408	$	591,500
Senior unsecured notes due 2032	491,959		—
Convertible senior notes due 2025	332,434		347,988
Finance leases and other financing obligations	15		1,033
Total	1,086,816		940,521
Less: current portion of long-term debt	(332,439)		(348,004)
Long-term debt	$	754,377	$	592,517

On May 14, 2024, we entered into a Fourth Amendment to the Credit Agreement (as amended, the "credit agreement") to modify our senior secured revolving credit facility (the “ABL facility”). The amendment, among other things, releases certain immaterial guarantors from their obligations under the credit agreement. Our maximum borrowing amount under the ABL facility is $1,800,000,000, including a maximum borrowing capacity that could be used for borrowing in certain foreign currencies of $350,000,000. From time to time and at our option, we may request to increase the aggregate amount available for borrowing under the ABL facility by up to an aggregate of the U.S. dollar equivalent of $750,000,000, subject to customary conditions, including receipt of commitments from lenders. The ABL facility is guaranteed by certain of our material subsidiaries and is secured by a lien on certain of our assets and certain of each other borrower’s and each guarantor’s assets. The ABL facility provides for an uncommitted first-in, last-out revolving facility in an aggregate amount of up to $100,000,000. The interest rates applicable to borrowings under the ABL facility are based on the average aggregate excess availability under the ABL facility as set forth on a pricing grid in the credit agreement. The ABL facility matures on July 22, 2027. As of September 30, 2024, eligible accounts receivable and inventory permitted availability to the full $1,800,000,000 facility amount, of which $262,408,000 was outstanding.

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

Senior Unsecured Notes due 2032

On May 20, 2024, we issued $500,000,000 aggregate principal amount of 6.625% Senior Notes due 2032 (the "Senior Notes") that mature on May 15, 2032. The Senior Notes are senior unsecured obligations of the Company and guaranteed by each of the Company's existing and future direct and indirect U.S. subsidiaries that is or becomes a guarantor or borrower under the ABL facility, subject to certain exceptions. The net proceeds from the offering were used to repay a portion of the outstanding borrowings under the ABL facility. The Senior Notes were issued pursuant to an indenture (the "Senior Notes Indenture") containing certain covenants that limit the Company's ability to, subject to certain exceptions, create, incur, or assume liens to secure debt, among other things. The Senior Notes bear interest at an annual rate of 6.625% payable semiannually, in arrears, on May 15th and November 15th of each year beginning on November 15, 2024.

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INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

The Company may redeem the Senior Notes prior to May 15, 2027, with an amount equal to the net cash proceeds received by the Company from certain equity offerings at a redemption price equal to 106.625% of the principal amount of such notes, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, in an aggregate principal amount for all such redemptions not to exceed 40% of the aggregate principal amount of the Senior Notes. The Senior Notes are subject to redemption at specified prices on or after May 15, 2027 plus accrued and unpaid interest, if any, on such notes redeemed, to, but excluding, the applicable redemption date. In addition, at any time prior to May 15, 2027, the Company may, on one or more occasions, redeem the Senior Notes in whole or in part, at its option, upon notice, at a redemption price equal to 100% of the principal amount of such notes plus a “make-whole” premium as specified in the Senior Notes Indenture and accrued and unpaid interest, if any, to, but excluding, the redemption date.

If the Company experiences certain change of control events, together with a ratings decline, as described in the Senior Notes Indenture, the Company will be required to make an offer to repurchase some or all of the Senior Notes at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date.

The Senior Notes are subject to certain customary events of default and acceleration clauses. As of September 30, 2024, no such events have occurred.

Convertible Senior Notes due 2025

In August 2019, we issued $350,000,000 aggregate principal amount of Convertible Notes (the "Convertible Notes") that mature on February 15, 2025. The Convertible Notes bear interest at an annual rate of 0.75% payable semiannually, in arrears, on February 15th and August 15th of each year. The Convertible Notes are general unsecured obligations of Insight and are guaranteed on a senior unsecured basis by Insight Direct USA, Inc., a wholly owned subsidiary of Insight.

Prior to the close of business on the business day immediately preceding June 15, 2024, holders of the Convertible Notes could have converted their notes at their option at any time under certain circumstances. Beginning June 15, 2024 until the close of business on the second scheduled trading day immediately preceding the maturity date, the holders may convert their Convertible Notes at any time, regardless of such circumstances.

The Convertible Notes mature on February 15, 2025, and we are required to settle the principal amount of the Convertible Notes in cash. As such, the Convertible Notes balance net of unamortized debt issuance costs is classified as a current liability.

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

If we undergo a fundamental change, the holders may require us to repurchase for cash all or any portion of their notes at a fundamental change repurchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. As of September 30, 2024, none of the criteria for a fundamental change or a conversion rate adjustment had been met.

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INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

As of September 30, 2024, the maximum number of shares issuable upon conversion, including the effect of a fundamental change and subject to other conversion rate adjustments, was 6,460,532.

In September 2023, an individual Convertible Note holder exercised their option to convert their Convertible Notes in the aggregate principal amount of $16,895,000, which was settled in January 2024. As a result, the principal amount of the Convertible Notes was settled in cash with additional amounts due being settled in shares of our common stock.

The Convertible Notes are subject to certain customary events of default and acceleration clauses. As of September 30, 2024, no such events have occurred.

The Convertible Notes consist of the following balances reported within the consolidated balance sheets (in thousands):


	September 30, 2024		December 31, 2023
Liability:
Principal	$	333,105	$	350,000
Less: debt issuance costs, net of accumulated amortization	(671)		(2,012)
Net carrying amount	$	332,434	$	347,988

In January 2022, we filed an irrevocable settlement election notice with the note holders to inform them of our election to settle the principal amount of the Convertible Notes in cash.

The remaining life of the debt issuance cost accretion is approximately 0.37 years. The effective interest rate on the principal of the Convertible Notes is 0.75%.

Interest expense resulting from the Convertible Notes reported within the consolidated statement of operations for the three and nine months ended September 30, 2024 and 2023 is made up of contractual coupon interest and amortization of debt issuance costs.

Convertible Note Hedge and Warrant Transaction

In connection and concurrent with the issuance of the Convertible Notes, we entered into the Call Spread Transactions with respect to the Company’s common stock.

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

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

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

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INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Inventory Financing Facilities

We have an unsecured inventory financing facility with MUFG Bank Ltd (“MUFG”) for $280,000,000. We have maximum availability under our unsecured inventory financing facility with PNC Bank, N.A. (“PNC”) of $375,000,000, including a $25,000,000 facility in Canada (the "Canada facility"). We also have an unsecured inventory financing facility with Wells Fargo in EMEA (the "EMEA facility") of $50,000,000. The inventory financing facilities will remain in effect until they are terminated by any of the parties. In the second quarter of 2023, the Company transitioned the reference rate for invoices issued in U.S. Dollars under the PNC facility from LIBOR to the Term Secured Overnight Financing Rate ("Term SOFR") benchmark provisions. If balances are not paid within stated vendor terms (typically 60 days), they will accrue interest at prime plus 2.00% on the MUFG facility, Canadian Overnight Repo Rate Average plus 4.50% on the Canada facility and Term SOFR, EURIBOR, or SONIA, as applicable, plus 4.50% and 0.25% on the PNC (other than the Canada facility) and EMEA facilities, respectively. Amounts outstanding under these facilities are classified separately as accounts payable – inventory financing facilities in the accompanying consolidated balance sheets and within cash flows from financing activities in the accompanying consolidated statements of cash flows.

As of September 30, 2024, our combined inventory financing facilities had a total maximum capacity of $705,000,000, of which $235,192,000 was outstanding.

6. Income Taxes

Our effective tax rates for the three and nine months ended September 30, 2024 were 22.5% and 24.2%, respectively. Our effective tax rate was higher than the United States federal statutory rate of 21.0% due primarily to state income taxes and higher taxes on earnings in foreign jurisdictions, partially offset by excess tax benefits on the settlement of employee share-based compensation, tax benefits related to research and development activities, and tax benefits related to the revaluation of certain acquisition earnout liabilities.

Our effective tax rates for the three and nine months ended September 30, 2023 were 24.7% and 25.4%, respectively. Our effective tax rates were higher than the United States federal statutory rate of 21.0% due primarily to state income taxes and higher taxes on earnings in foreign jurisdictions, partially offset by excess tax benefits on the settlement of employee share-based compensation and tax benefits related to research and development activities.

As of September 30, 2024 and December 31, 2023, we had approximately $12,135,000 and $13,947,000, respectively, of unrecognized tax benefits. Of these amounts, approximately $1,570,000 and $1,767,000, respectively, related to accrued interest. In the future, if recognized, the remaining liability associated with uncertain tax positions could affect our effective tax rate. We do not believe there will be any changes to our unrecognized tax benefits over the next 12 months that would have a material effect on our effective tax rate.

We are currently under audit in various jurisdictions for tax years 2017 through 2022. Although the timing of the resolutions and/or closures of audits is highly uncertain, it is reasonably possible that the examination phase of these audits may be concluded within the next 12 months, which could increase or decrease the balance of our gross unrecognized tax benefits. However, based on the status of the various examinations in multiple jurisdictions, an estimate of the range of reasonably possible outcomes cannot be made at this time, but the estimated effect on our income tax expense and net earnings is not expected to be significant.

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INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

7. Share Repurchase Program

On May 18, 2023, we announced that our Board of Directors authorized the repurchase of up to $300,000,000 of our common stock, including $100,000,000 that remained available from prior authorizations. During the three months ended September 30, 2024, this repurchase authorization was substantially exhausted. On September 11, 2024, we announced that our Board of Directors authorized the repurchase of up to $300,000,000 of our common stock, in addition to any amount that remained from prior authorizations. As of September 30, 2024, approximately $300,000,476 remained available for repurchases under our share repurchase plan. Our share repurchases may be made on the open market, subject to Rule 10b-18 or in privately negotiated transactions, through block trades, through 10b5-1 plans or otherwise, at management’s discretion. The number 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 three months ended September 30, 2024, we repurchased 835,188 shares of our common stock on the open market at a total cost of $165,020,000 (an average price of $197.58 per share). During the three months ended September 30, 2023, we did not repurchase any shares of our common stock.

During the nine months ended September 30, 2024, we repurchased 1,022,545 shares of our common stock on the open market at a total cost of $200,020,000 (an average price of $195.61 per share). During the nine months ended September 30, 2023, we repurchased 1,633,620 shares of our common stock on the open market at a total cost of $217,108,000 (an average price of $132.90 per share). All shares repurchased during the three and nine months ended September 30, 2024 and 2023 were retired.

8. 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 September 30, 2024, we had approximately $29,525,971 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 September 30, 2024. Accordingly, we have not accrued any liabilities related to such performance bonds in our consolidated financial statements.

The Company has a minimum required purchase commitment of approximately $100,467,000 pursuant to an agreement primarily related to cloud services. The total purchase commitment is required to be met or exceeded during a 5-year period, starting October 1, 2023 through September 30, 2028. At September 30, 2024 we had a remaining purchase commitment of $81,446,000. If total purchases do not meet the required commitment by September 30, 2028, the shortfall must be prepaid by the Company and can be used for further purchases through September 30, 2029.

The Company has a minimum required purchase commitment of approximately $40,000,000 pursuant to an agreement primarily related to software as a service. The total purchase commitment is required to be met during a 4-year period, starting November 30, 2022 through November 29, 2026. At September 30, 2024 we had a remaining purchase commitment of $26,123,000.

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INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

The Company has recorded a contingent liability of approximately $21,236,000 payable to a partner to settle various contractual commitments to resell a minimum amount of cloud services to clients.

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 September 30, 2024. Accordingly, we have not accrued any liabilities related to such indemnifications in our consolidated financial statements.

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

Contingencies Related to Third-Party Review

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

Legal Proceedings

From time to time, we are party to various legal proceedings incidental to the business, including preference payment claims asserted in client bankruptcy proceedings, indemnification claims, claims of alleged infringement of patents, trademarks, copyrights and other intellectual property rights, employment claims, claims related to services provided, interruptions, or outages, 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

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INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

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

9. 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, including cloud solutions. Our offerings in the remainder of our EMEA and APAC segments consist largely of software and certain software-related services and cloud solutions.

In the following table, revenue is disaggregated by our reportable operating segments, which are primarily defined by their related geographies, as well as by major product offering, by major client group and by recognition on either a gross basis as a principal in the arrangement, or on a net basis as an agent, for the three and nine months ended September 30, 2024 and 2023 (in thousands):


	Three Months Ended September 30, 2024
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	1,002,000	$	125,013	$	10,505	$	1,137,518
Software	389,176		124,629		22,456		536,261
Services	325,407		62,964		25,736		414,107
	$	1,716,583	$	312,606	$	58,697	$	2,087,886
Major Client Groups
Large Enterprise / Corporate	$	1,138,827	$	252,445	$	25,102	$	1,416,374
Commercial	360,833		8,332		17,529		386,694
Public Sector	216,923		51,829		16,066		284,818
	$	1,716,583	$	312,606	$	58,697	$	2,087,886
Revenue Recognition based on acting as Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	1,575,767	$	287,389	$	49,125	$	1,912,281
Net revenue recognition (Agent)	140,816		25,217		9,572		175,605
	$	1,716,583	$	312,606	$	58,697	$	2,087,886

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INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)


	Three Months Ended September 30, 2023
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	1,153,722	$	136,567	$	10,866	$	1,301,155
Software	409,139		163,918		15,942		588,999
Services	298,011		53,911		24,210		376,132
	$	1,860,872	$	354,396	$	51,018	$	2,266,286
Major Client Groups
Large Enterprise / Corporate	$	1,311,849	$	270,355	$	21,388	$	1,603,592
Commercial	342,585		4,340		18,867		365,792
Public Sector	206,438		79,701		10,763		296,902
	$	1,860,872	$	354,396	$	51,018	$	2,266,286
Revenue Recognition based on acting as Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	1,738,705	$	330,505	$	42,908	$	2,112,118
Net revenue recognition (Agent)	122,167		23,891		8,110		154,168
	$	1,860,872	$	354,396	$	51,018	$	2,266,286


	Nine Months Ended September 30, 2024
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	3,030,589	$	386,401	$	27,896	$	3,444,886
Software	1,349,625		495,063		74,595		1,919,283
Services	973,548		212,856		78,460		1,264,864
	$	5,353,762	$	1,094,320	$	180,951	$	6,629,033
Major Client Groups
Large Enterprise / Corporate	$	3,695,537	$	832,515	$	71,137	$	4,599,189
Commercial	1,078,062		25,033		49,939		1,153,034
Public Sector	580,163		236,772		59,875		876,810
	$	5,353,762	$	1,094,320	$	180,951	$	6,629,033
Revenue Recognition based on acting as Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	4,924,449	$	997,597	$	149,950	$	6,071,996
Net revenue recognition (Agent)	429,313		96,723		31,001		557,037
	$	5,353,762	$	1,094,320	$	180,951	$	6,629,033

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INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)


	Nine Months Ended September 30, 2023
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	3,474,488	$	431,677	$	34,108	$	3,940,273
Software	1,221,263		574,539		67,333		1,863,135
Services	896,251		166,910		73,260		1,136,421
	$	5,592,002	$	1,173,126	$	174,701	$	6,939,829
Major Client Groups
Large Enterprise / Corporate	$	3,927,258	$	868,937	$	69,639	$	4,865,834
Commercial	1,074,360		12,739		54,030		1,141,129
Public Sector	590,384		291,450		51,032		932,866
	$	5,592,002	$	1,173,126	$	174,701	$	6,939,829
Revenue Recognition based on acting as Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	5,231,815	$	1,083,933	$	147,422	$	6,463,170
Net revenue recognition (Agent)	360,187		89,193		27,279		476,659
	$	5,592,002	$	1,173,126	$	174,701	$	6,939,829

All significant intercompany transactions are eliminated upon consolidation, and there are no differences between the accounting policies used to measure profit and loss for our segments or on a consolidated basis. Net sales are defined as net sales to external clients. None of our clients exceeded ten percent of consolidated net sales for the three and nine months ended September 30, 2024 or 2023.

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

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INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

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


	Three Months Ended September 30, 2024
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	1,391,176	$	249,642	$	32,961	$	1,673,779
Services	325,407		62,964		25,736		414,107
Total net sales	1,716,583		312,606		58,697		2,087,886
Costs of goods sold:
Products	1,237,012		219,573		29,686		1,486,271
Services	131,514		26,652		11,364		169,530
Total costs of goods sold	1,368,526		246,225		41,050		1,655,801
Gross profit	348,057		66,381		17,647		432,085
Operating expenses:
Selling and administrative expenses	259,954		57,808		12,234		329,996
Severance and restructuring expenses	7,242		1,240		61		8,543
Acquisition and integration related expenses	25		668		2		695
Earnings from operations	$	80,836	$	6,665	$	5,350	$	92,851


	Three Months Ended September 30, 2023
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	1,562,861	$	300,485	$	26,808	$	1,890,154
Services	298,011		53,911		24,210		376,132
Total net sales	1,860,872		354,396		51,018		2,266,286
Costs of goods sold:
Products	1,401,472		272,083		23,988		1,697,543
Services	125,543		22,604		11,726		159,873
Total costs of goods sold	1,527,015		294,687		35,714		1,857,416
Gross profit	333,857		59,709		15,304		408,870
Operating expenses:
Selling and administrative expenses	244,154		54,435		11,204		309,793
Severance and restructuring expenses, net	2,650		271		2		2,923
Acquisition and integration related expenses	970		3,322		—		4,292
Earnings from operations	$	86,083	$	1,681	$	4,098	$	91,862

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INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)


	Nine Months Ended September 30, 2024
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	4,380,214	$	881,464	$	102,491	$	5,364,169
Services	973,548		212,856		78,460		1,264,864
Total net sales	5,353,762		1,094,320		180,951		6,629,033
Costs of goods sold:
Products	3,909,271		791,907		92,947		4,794,125
Services	392,484		81,857		34,189		508,530
Total costs of goods sold	4,301,755		873,764		127,136		5,302,655
Gross profit	1,052,007		220,556		53,815		1,326,378
Operating expenses:
Selling and administrative expenses	771,066		178,377		35,221		984,664
Severance and restructuring expenses	12,783		2,639		216		15,638
Acquisition and integration related expenses	1,486		678		2		2,166
Earnings from operations	$	266,672	$	38,862	$	18,376	$	323,910


	Nine Months Ended September 30, 2023
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	4,695,751	$	1,006,216	$	101,441	$	5,803,408
Services	896,251		166,910		73,260		1,136,421
Total net sales	5,592,002		1,173,126		174,701		6,939,829
Costs of goods sold:
Products	4,206,071		920,956		92,693		5,219,720
Services	393,788		59,526		33,420		486,734
Total costs of goods sold	4,599,859		980,482		126,113		5,706,454
Gross profit	992,143		192,644		48,588		1,233,375
Operating expenses:
Selling and administrative expenses	745,259		159,253		33,525		938,037
Severance and restructuring expenses, net	1,052		1,840		63		2,955
Acquisition and integration related expenses	1,127		3,322		—		4,449
Earnings from operations	$	244,705	$	28,229	$	15,000	$	287,934

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INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

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


	September 30, 2024		December 31, 2023
North America	$	6,500,158	$	6,521,591
EMEA	1,358,765		1,058,734
APAC	186,013		171,820
Corporate assets and intercompany eliminations, net	(758,493)		(1,465,795)
Total assets	$	7,286,443	$	6,286,350

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 September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Depreciation and amortization of property and equipment:
North America	$	6,160	$	6,064	$	18,403	$	17,207
EMEA	917		726		2,574		1,925
APAC	127		112		396		323
	7,204		6,902		21,373		19,455
Amortization of intangible assets:
North America	16,823		7,718		45,557		23,269
EMEA	1,805		822		5,135		1,642
APAC	74		108		292		332
	18,702		8,648		50,984		25,243
Total	$	25,906	$	15,550	$	72,357	$	44,698

10. Acquisition

Infocenter

Effective May 1, 2024, we acquired 100 percent of the issued and outstanding shares of Infocenter.io Corporation ("Infocenter") for a cash purchase price of $265,000,000, net of cash and cash equivalents acquired of $5,103,000, which is comprised of the initial purchase price of $269,477,000 paid in cash upon the acquisition and contractual adjustments to the purchase price of $626,000 paid in July 2024. The purchase price also includes the estimated fair value of earn out payments of approximately $24,200,000, which provide an incentive opportunity for the sellers of up to $106,250,000, based on Infocenter achieving certain EBITDA performance through April 2026. Infocenter is a pure-play ServiceNow Elite Partner dedicated to automating business processes on the Now Platform®. We believe this acquisition enhances our Solutions Integrator offering framework to drive better business outcomes for our clients by enabling them to scale their multicloud environments with modern infrastructure, applications, and unified data and AI platforms.

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INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

The preliminary fair value of net assets acquired was approximately $97,362,000, including approximately $123,900,000 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. As these intangible assets are not tax deductible, we recognized a related deferred tax liability of approximately $31,832,000. The preliminary purchase price was allocated using the information currently available. Further information obtained upon the finalization of the fair value assumptions for identifiable intangible assets acquired and various accrued expense balance assessments could lead to an adjustment of the purchase price allocation. Goodwill acquired approximated $191,838,000, which was recorded in our North America operating segment.

We consolidated the results of operations for Infocenter within our North America operating segment since its acquisition on May 1, 2024. Our historical results would not have been materially affected by the acquisition of Infocenter and, accordingly, we have not presented pro forma information as if the acquisition had been completed at the beginning of each period presented in our consolidated statement of operations.

We recognized net gains within selling and administrative expenses of $4,000,000 due to the net decrease in the estimated fair value of the earnout payments for both the three and nine months ended September 30, 2024.

SADA

Effective December 1, 2023, we acquired 100 percent of the issued and outstanding shares of SADA Systems, LLC (successor to SADA Systems, Inc. via conversion) ("SADA") for a cash purchase price of $399,762,000, excluding cash and cash equivalents acquired of $24,701,000. SADA is a leading cloud consultancy and technical services provider and six-time Google Cloud Partner of the Year, including cloud licensing and professional services to small, mid-sized and corporate/enterprise commercial clients, state and federal governments and educational institutions across North America, Europe and Asia. Based in Los Angeles, California, SADA has three office locations in North America, India and Armenia with more than 800 teammates. We believe that this acquisition advances our strategy and further strengthens our unique position as a leading Solutions Integrator offering market-leading multicloud solutions at scale. We further believe SADA's partnership with Google Cloud will enhance our ability to serve clients who operate across multiple clouds and accelerate adoption of widely sought-after technologies like GenAI. SADA is being reported as a part of our North America operating segment.

The total purchase price of $426,050,000, which is net of cash and cash equivalents acquired of $24,701,000, is comprised of the initial purchase price of $423,290,000 paid in cash upon the SADA acquisition, contractual adjustments to the purchase price of $1,173,000 paid in March 2024 and a seller retention fund of $5,000,000 payable post-closing. The purchase price also includes the estimated fair value of earnout payments of approximately $21,288,000, which provides an incentive opportunity for the sellers of up to $390,000,000, based on the SADA business achieving EBITDA and revenue growth performance through 2026. A portion of the purchase price was used to settle SADA’s stock-based compensation liabilities of $68,335,000 and pay SADA’s transaction costs of approximately $16,852,000 at acquisition and after contractual adjustments in accordance with the purchase agreement.

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INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

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


Total purchase price, net of cash and cash equivalents acquired			$	426,050
Fair value of net assets acquired:
Current assets	$	348,043
Identifiable intangible assets - see description below	158,100
Property and equipment	2,266
Other assets	244,342
Current liabilities	(332,010)
Long-term liabilities, including long-term accounts payable	(115,171)
Total fair value of net assets acquired			305,570
Excess purchase price over fair value of net assets acquired ("goodwill")			$	120,480

Under the acquisition method of accounting, the total purchase price as shown in the table above was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase price over fair value of net assets acquired was recorded as goodwill. During the nine months ended September 30, 2024, a net adjustment of $3,458,000 was recorded to reduce goodwill, primarily due to certain measurement period adjustments to accounts receivable, contract assets, net, accounts payable and accrued expenses.

The estimated fair values of the majority of the current assets and liabilities are based upon their historical costs on the date of acquisition due to their short-term nature, with the exception of contract assets. The estimated fair value of the property and equipment are also based upon historical costs as they approximate fair value. The contract assets are an exception to the fair value model and are evaluated under relevant revenue recognition guidance including an allowance for credit losses using the current expected credit loss (“CECL”) model.

The preliminary estimated fair value of net assets acquired was approximately $305,570,000, including $158,100,000 of identifiable intangible assets, consisting primarily of customer relationships of $124,700,000 and non-compete agreements of $26,200,000. The fair values were determined using the multiple-period excess earnings method and the lost income method, respectively.

The identifiable intangibles resulting from the acquisition are amortized using the straight-line method over the following estimated useful lives:


Intangible Assets						Estimated Economic Life
Customer relationships						10 Years
Trade name						3 Years
Non-compete agreements						3-5 Years

Goodwill of $120,480,000, which was recorded in our North America operating segment, represents the excess of the purchase price over the estimated fair value assigned to tangible and identifiable intangible assets acquired and liabilities assumed from SADA. The goodwill is not amortized and will be tested for impairment annually in the fourth quarter of our fiscal year. The addition of the SADA technical employees to our team and the opportunity to grow our business are the primary factors making up the goodwill recognized as part of the transaction.

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INSIGHT ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

The intangible assets and goodwill are tax deductible as the transaction is a deemed asset acquisition for U.S. federal income tax purposes after the Seller Parties undertook an internal restructuring pursuant to Section 368(a)(1)(F).

The purchase price allocation is preliminary and was allocated using information currently available. Further information related to accounts receivable, contract assets, accounts payable, goodwill and various accrued expense balance assessments may lead to an adjustment of the purchase price allocation.

We have consolidated the results of operations for SADA since its acquisition on December 1, 2023. Our historical results would not have been materially affected by the acquisition of SADA and, accordingly, we have not presented pro forma information as if the acquisition had been completed at the beginning of each period presented in our consolidated statement of operations.

We recognized net gains within selling and administrative expenses of $20,684,000 due to the net decrease in the estimated fair value of the earnout payments for the nine months ended September 30, 2024.

Amdaris

Effective August 17, 2023, we acquired 100 percent of the issued and outstanding shares of Amdaris Group Limited (“Amdaris”) for a cash purchase price, net of cash and cash equivalents acquired, of approximately $82,875,000, excluding the estimated fair value of an earnout, reported in other liabilities, with a range of payouts through 2026 of $0 to $54,391,000. We paid the earnout of $14,348,000 for Amdaris' 2023 performance in March 2024. Amdaris, an award-winning software development and digital services specialist, provides innovative software development, application support, managed services and consultancy services to the customers in the United Kingdom with service delivery centers located in several eastern European countries. Amdaris has been recognized as a Microsoft Gold Certified Partner. We believe this acquisition expands our global Modern Apps and Data & AI areas of solutions expertise as a leading solutions integrator and enhances our technological capabilities and scale to deliver an even broader range of customized services and solutions to clients in EMEA.

The fair value of net assets acquired was approximately $34,060,000, including $41,291,000 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 purchase price was allocated using the information available. During the first quarter of 2024, we finalized the fair value assumptions for identifiable intangible assets with no changes being made to amounts previously recorded. Goodwill acquired approximated $71,698,000, which was recorded in our EMEA operating segment.

We consolidated the results of operations for Amdaris within our EMEA operating segment beginning on August 17, 2023, the effective date of the acquisition. Our historical results would not have been materially affected by the acquisition of Amdaris and, accordingly, we have not presented pro forma information as if the acquisition had been completed at the beginning of each period presented in our consolidated statement of operations.

We recognized net gains within selling and administrative expenses of $2,442,000 and $6,430,000 due to the net decrease in the estimated fair value of the earnout payments for the three and nine months ended September 30, 2024, respectively.

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INSIGHT ENTERPRISES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion should be read in conjunction with the consolidated financial statements and the related notes that appear elsewhere in this Quarterly Report on Form 10-Q. We refer to our customers as “clients,” our suppliers as “partners” and our employees as “teammates.”

Quarterly Overview

Today, every business is a technology business. We help our clients accelerate their digital journey to modernize their businesses and maximize the value of technology. We serve these clients in North America; Europe, the Middle East and Africa (“EMEA”); and Asia-Pacific (“APAC”). As a Fortune 500-ranked solutions integrator, we enable secure, end-to-end digital transformation and meet the needs of our clients through a comprehensive portfolio of solutions, far-reaching partnerships and 36 years of broad IT expertise. We amplify our solutions and services with global scale, local expertise and our e-commerce experience, enabling our clients to realize their digital ambitions in multiple ways. Our offerings in North America and certain countries in EMEA and APAC include hardware, software and services, including cloud solutions. Our offerings in the remainder of our EMEA and APAC segments consist largely of software and certain software-related services and cloud solutions.

On a consolidated basis, for the three months ended September 30, 2024:

•Net sales of $2.1 billion decreased 8% compared to the three months ended September 30, 2023. The decrease in net sales reflects decreases in hardware and software net sales, partially offset by an increase in services net sales. Excluding the effects of fluctuating foreign currency exchange rates, net sales also decreased 8% compared to the third quarter of 2023.

•Gross profit of $432.1 million increased 6% compared to the three months ended September 30, 2023. Excluding the effects of fluctuating foreign currency exchange rates, gross profit increased 5% compared to the third quarter of 2023.

•Compared to the three months ended September 30, 2023, gross margin expanded approximately 270 basis points to 20.7% of net sales in the three months ended September 30, 2024. This expansion primarily reflects an increase in higher margin services net sales compared to the same period in the prior year.

•Earnings from operations increased 1%, year over year, to $92.9 million in the third quarter of 2024 compared to $91.9 million in the third quarter of 2023. The increase was primarily due to an increase in gross profit in the current quarter, partially offset by an increase in selling and administrative expenses. Excluding the effects of fluctuating foreign currency exchange rates, earnings from operations also increased 1% year over year.

•Net earnings and diluted earnings per share were $58.2 million and $1.52, respectively, for the third quarter of 2024. This compares to net earnings of $60.2 million and diluted earnings per share of $1.62 for the third quarter of 2023. Diluted earnings per share decreased 6% year to year, and excluding the effects of fluctuating foreign currency exchange rates, also decreased 6% year to year.

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INSIGHT ENTERPRISES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (continued)

Throughout the “Quarterly Overview” and “Results of Operations” sections of this “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” we refer to changes in net sales, gross profit, selling and administrative expenses and earnings from operations on a consolidated basis and in North America, EMEA and APAC excluding the effects of fluctuating foreign currency exchange rates, which are financial measures that are adjusted from our financial results prepared in accordance with the United States generally accepted accounting principles (“GAAP”). We believe providing this information excluding the effects of fluctuating foreign currency exchange rates provides valuable supplemental information to investors regarding our underlying business and results of operations, consistent with how we, including our management, evaluate our performance. In computing the changes in amounts and percentages, we compare the current period amount as translated into U.S. dollars under the applicable accounting standards to the prior period amount in local currency translated into U.S. dollars utilizing the weighted average translation rate for the current period. The performance measures excluding the effects of fluctuating foreign currency exchange rates should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

Details about segment results of operations can be found in Note 9 to the Consolidated Financial Statements in Part I, Item 1 of this report.

Our discussion and analysis of financial condition and results of operations is intended to assist in the understanding of our consolidated financial statements, including the changes in certain key items in those consolidated financial statements from period to period and the primary factors that contributed to those changes, as well as how certain critical accounting estimates affect our consolidated financial statements.

Supply Chain Constraints, Demand and Inflation Update

Supply constraints that have had an industry-wide impact since the beginning of 2020 eased in the second half of 2023. We believe that any remaining supply constraints and extended lead times for certain infrastructure, including networking products, have now normalized back to near historic levels. Despite the easing supply constraints, we continue to see a general slowdown in our clients' decision making, which we believe will continue in the short term.

Inflation contributed to higher interest rates on all of our variable rate facilities. While these interest rates are expected to decrease, we anticipate higher than historical rates for the remainder of 2024. We are actively monitoring changes to the global macroeconomic environment, including those impacting our supply chain and interest rates, and assessing the potential impacts these challenges may have on our current results, financial condition and liquidity. We are also mindful of the potential impact these conditions could have on our clients, partners and prospects for the remainder of 2024 and beyond.

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INSIGHT ENTERPRISES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (continued)

Critical Accounting Estimates

Our consolidated financial statements have been prepared in accordance with GAAP. For a summary of significant accounting policies, see Note 1 to the Consolidated Financial Statements in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2023. The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, net sales and expenses. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results, however, may differ from estimates we have made. Members of our senior management have discussed the critical accounting estimates and related disclosures with the Audit Committee of our Board of Directors.

There have been no changes to the items disclosed as critical accounting estimates in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2023.

Results of Operations

The following table sets forth certain financial data as a percentage of net sales for the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Net sales	100.0	%	100.0	%	100.0	%	100.0	%
Costs of goods sold	79.3		82.0		80.0		82.2
Gross profit	20.7		18.0		20.0		17.8
Selling and administrative expenses	15.9		13.7		14.9		13.5
Severance and restructuring expenses, net and acquisition and integration related expenses	0.4		0.2		0.2		0.2
Earnings from operations	4.4		4.1		4.9		4.1
Non-operating expense, net	0.8		0.6		0.7		0.4
Earnings before income taxes	3.6		3.5		4.2		3.7
Income tax expense	0.8		0.8		1.0		1.0
Net earnings	2.8	%	2.7	%	3.2	%	2.7	%

We generally experience some seasonal trends in our sales of IT hardware, software and services. Software and certain cloud net sales are typically seasonally higher in our second and fourth quarters. Business clients, particularly larger enterprise businesses in the United States, tend to spend more, particularly on product, in our fourth quarter. Sales to the federal government in the United States are often stronger in our third quarter, while sales in the state and local government and education markets are also often stronger in our second quarter. Sales to public sector clients in the United Kingdom are often stronger in our first quarter. These trends create overall variability in our consolidated results.

Our gross profit across the business and related to product versus services sales are, and will continue to be, impacted by partner incentives, which can and do change significantly in the amounts made available and in the related product or services sales being incentivized by the partner. Incentives from our largest partners are significant and changes in the amounts and incentive requirements, including those related to cloud transactions, which occur regularly, have and could continue to impact our results of operations to the extent we are unable to shift our

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INSIGHT ENTERPRISES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (continued)

focus and respond to them. For a discussion of risks associated with our reliance on partners, see “Risk Factors – Risks related to Our Business, Operations and Industry – We rely on our partners for product availability, competitive products to sell and marketing funds and purchasing incentives, which can change significantly in the amounts made available and the requirements year over year,” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023.

Net Sales. Net sales of $2.1 billion for the three months ended September 30, 2024 decreased 8%, year to year, compared to the three months ended September 30, 2023, reflecting decreases in our North America and EMEA operating segments. Net sales of $6.6 billion for the nine months ended September 30, 2024 decreased 4%, year to year, compared to the nine months ended September 30, 2023, also reflecting decreases in our North America and EMEA operating segments.

Our net sales by operating segment were as follows for the three and nine months ended September 30, 2024 and 2023 (dollars in thousands):


	Three Months Ended September 30,				% Change		Nine Months Ended September 30,				% Change
	2024		2023				2024		2023
North America	$	1,716,583	$	1,860,872	(8)	%	$	5,353,762	$	5,592,002	(4)	%
EMEA	312,606		354,396		(12)	%	1,094,320		1,173,126		(7)	%
APAC	58,697		51,018		15	%	180,951		174,701		4	%
Consolidated	$	2,087,886	$	2,266,286	(8)	%	$	6,629,033	$	6,939,829	(4)	%

Our net sales by offering category for North America for the three and nine months ended September 30, 2024 and 2023 were as follows (dollars in thousands):


	Three Months Ended September 30,				% Change		Nine Months Ended September 30,				% Change
Sales Mix	2024		2023				2024		2023
Hardware	$	1,002,000	$	1,153,722	(13)	%	$	3,030,589	$	3,474,488	(13)	%
Software	389,176		409,139		(5)	%	1,349,625		1,221,263		11	%
Services	325,407		298,011		9	%	973,548		896,251		9	%
	$	1,716,583	$	1,860,872	(8)	%	$	5,353,762	$	5,592,002	(4)	%

Net sales in North America decreased 8%, or $144.3 million, for the three months ended September 30, 2024 compared to the three months ended September 30, 2023, driven by decreases in hardware and software net sales, partially offset by an increase in services net sales. Hardware and software net sales decreased 13% and 5%, year to year, respectively. These decreases were partially offset by an increase in services net sales of 9%. The net changes for the three months ended September 30, 2024 were the result of the following:

•The decrease in hardware net sales was due to lower volume of sales primarily to large enterprise and corporate clients due to lower demand. This decline was driven by infrastructure and device sales.

•The decrease in software net sales was primarily due to changes in certain vendor relationships (shifting us from a principal to an agent role) as well as the continued migration of on-premise software to cloud solutions, in each case, reported net in services net sales.

•The increase in services net sales was primarily due to higher sales of cloud solution offerings including from SADA and an increase in Insight Delivered services from SADA and Infocenter, partially offset by declines in Insight Delivered services

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from our organic business. Our North America organic business excludes SADA, which we acquired on December 1, 2023 and excludes Infocenter, which we acquired on May 1, 2024.

Net sales in North America decreased 4%, or $238.2 million, for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023, driven by a decrease in hardware net sales. Hardware net sales decreased by 13%, year to year. This decrease was partially offset by software and services net sales increases of 11% and 9%, respectively, year over year. The net changes for the nine months ended September 30, 2024 were the result of the following:

•The decrease in hardware net sales was primarily due to lower volume of sales to large enterprise and corporate clients due to lower demand. This decline was driven by infrastructure sales.

•The increase in software net sales was primarily due to a significant multiyear transaction in the first quarter, partially offset by changes in certain vendor relationships (shifting from a principal to agent role) as well as the continued migration of on-premise software to cloud solutions, in each case, reported net in services net sales.

•The increase in services net sales was primarily due to higher sales of cloud solution offerings, including from SADA, and an increase in Insight Delivered services from SADA and Infocenter, partially offset by declines in Insight Delivered services from our organic business and in software maintenance.

Our net sales by offering category for EMEA for the three and nine months ended September 30, 2024 and 2023 were as follows (dollars in thousands):


	Three Months Ended September 30,				% Change		Nine Months Ended September 30,				% Change
Sales Mix	2024		2023				2024		2023
Hardware	$	125,013	$	136,567	(8)	%	$	386,401	$	431,677	(10)	%
Software	124,629		163,918		(24)	%	495,063		574,539		(14)	%
Services	62,964		53,911		17	%	212,856		166,910		28	%
	$	312,606	$	354,396	(12)	%	$	1,094,320	$	1,173,126	(7)	%

Net sales in EMEA decreased 12%, or $41.8 million, for the three months ended September 30, 2024 compared to the three months ended September 30, 2023. Excluding the effects of fluctuating foreign currency exchange rates, net sales in EMEA decreased 13%, year to year. Net sales of software and hardware decreased by 24% and 8%, respectively, year to year, partially offset by an increase in services net sales of 17%, year over year. The net changes for the three months ended September 30, 2024 were the result of the following:

•The decrease in software net sales was primarily due to lower volume of sales to large enterprise and public sector clients reflecting changes in certain vendor relationships as well as continued migration of on-premise software to cloud solutions, in each case, reported net in services net sales.

•The decrease in hardware net sales was primarily due to lower volume of sales to public sector and commercial clients.

•The increase in services net sales was primarily due to an increase in Insight Delivered services net sales, including from Amdaris, which we acquired on August 17, 2023.

Net sales in EMEA decreased 7%, or $78.8 million, for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023. Excluding the effects of

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fluctuating foreign currency exchange rates, net sales in EMEA decreased 8%, year to year. Net sales of software and hardware decreased by 14% and 10%, respectively, year to year, partially offset by an increase in services net sales of 28%, year over year. The net changes for the nine months ended September 30, 2024 were the result of the following:

•The decrease in software net sales was primarily due to lower volume of sales to large enterprise and public sector clients reflecting changes in certain vendor relationships as well as the continued migration of on-premise software to cloud solutions, in each case, reported net in services net sales.

•The decrease in hardware net sales was primarily due to lower volume of sales to large enterprise, corporate and public sector clients.

•The increase in services net sales was primarily due to an increase in Insight Delivered services net sales, including from Amdaris.

Our net sales by offering category for APAC for the three and nine months ended September 30, 2024 and 2023 were as follows (dollars in thousands):


	Three Months Ended September 30,				% Change		Nine Months Ended September 30,				% Change
Sales Mix	2024		2023				2024		2023
Hardware	$	10,505	$	10,866	(3)	%	$	27,896	$	34,108	(18)	%
Software	22,456		15,942		41	%	74,595		67,333		11	%
Services	25,736		24,210		6	%	78,460		73,260		7	%
	$	58,697	$	51,018	15	%	$	180,951	$	174,701	4	%

Net sales in APAC increased 15%, or $7.7 million, for the three months ended September 30, 2024 compared to the three months ended September 30, 2023. Excluding the effects of fluctuating foreign currency exchange rates, net sales in APAC increased 13%, year over year. Net sales of software and services increased by 41% and 6%, respectively, year over year. These increases were partially offset by a decrease in hardware net sales of 3%, year to year. The net changes for the three months ended September 30, 2024 were the result of the following:

•The increase in software net sales was due to higher volume of sales to large enterprise and public sector clients, partially offset by the continued migration of on-premise software to cloud solutions, reported net in services net sales.

•The increase in services net sales was primarily due to an increase in fees for cloud solutions.

•The decrease in hardware net sales was primarily the result of lower volume of sales to corporate and large enterprise clients.

Net sales in APAC increased 4%, or $6.3 million, for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023. Excluding the effects of fluctuating foreign currency exchange rates, net sales in APAC increased 5%, year over year. Net sales of software and services increased by 11% and 7%, respectively, year over year. These increases were partially offset by a decrease in hardware net sales of 18%, year to year. The net changes for the nine months ended September 30, 2024 were the result of the following:

•The increase in software net sales was due to higher volumes of sales to large enterprise and public sector clients, partially offset by the continued migration of on-premise software to cloud solutions, reported net in services net sales.

•The increase in services net sales was primarily due to an increase in fees for cloud solutions and an increase in Insight Delivered services.

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•The decrease in hardware net sales was primarily the result of lower volume of sales to corporate and large enterprise clients.

The percentage of net sales by category for North America, EMEA and APAC were as follows for the three and nine months ended September 30, 2024 and 2023:


	North America				EMEA				APAC
	Three Months Ended September 30,				Three Months Ended September 30,				Three Months Ended September 30,
Sales Mix	2024		2023		2024		2023		2024		2023
Hardware	58	%	62	%	40	%	39	%	18	%	21	%
Software	23	%	22	%	40	%	46	%	38	%	31	%
Services	19	%	16	%	20	%	15	%	44	%	48	%
	100	%	100	%	100	%	100	%	100	%	100	%

	North America				EMEA				APAC
	Nine Months Ended September 30,				Nine Months Ended September 30,				Nine Months Ended September 30,
Sales Mix	2024		2023		2024		2023		2024		2023
Hardware	57	%	62	%	35	%	37	%	16	%	19	%
Software	25	%	22	%	45	%	49	%	41	%	39	%
Services	18	%	16	%	20	%	14	%	43	%	42	%
	100	%	100	%	100	%	100	%	100	%	100	%

Gross Profit. Gross profit increased 6%, or $23.2 million, for the three months ended September 30, 2024 compared to the three months ended September 30, 2023, with gross margin expanding approximately 270 basis points to 20.7% for the three months ended September 30, 2024 compared to 18.0% for the three months ended September 30, 2023. Gross profit increased 8%, or $93.0 million, for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023, with gross margin expanding approximately 220 basis points to 20.0% for the nine months ended September 30, 2024 compared to 17.8% for the nine months ended September 30, 2023.

Our gross profit and gross profit as a percentage of net sales by operating segment were as follows for the three and nine months ended September 30, 2024 and 2023 (dollars in thousands):


	Three Months Ended September 30,								Nine Months Ended September 30,
	2024		% of Net Sales		2023		% of Net Sales		2024		% of Net Sales		2023		% of Net Sales
North America	$	348,057	20.3	%	$	333,857	17.9	%	$	1,052,007	19.6	%	$	992,143	17.7	%
EMEA	66,381		21.2	%	59,709		16.8	%	220,556		20.2	%	192,644		16.4	%
APAC	17,647		30.1	%	15,304		30.0	%	53,815		29.7	%	48,588		27.8	%
Consolidated	$	432,085	20.7	%	$	408,870	18.0	%	$	1,326,378	20.0	%	$	1,233,375	17.8	%

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North America's gross profit for the three months ended September 30, 2024 increased 4%, or $14.2 million, compared to the three months ended September 30, 2023. As a percentage of net sales, gross margin expanded approximately 240 basis points to 20.3% for the third quarter of 2024. The year over year net expansion in gross margin was primarily attributable to the following:

•An increase in services margin of 203 basis points and an expansion in product margin of 31 basis points.

•The increase in services margin reflects an increase in fees for cloud solutions, including from SADA. There was also an increase in margin contribution from Insight Core services (consisting of Insight Delivered and managed services) from SADA and Infocenter, partially offset by a decline in margin contribution from organic Insight Core services and a decrease in software maintenance.

•The expansion in product margin reflects an increase in margin contribution from software and hardware net sales due to selling product at higher margins than in the prior year period.

North America's gross profit for the nine months ended September 30, 2024 increased 6%, or $59.9 million, compared to the nine months ended September 30, 2023. As a percentage of net sales, gross margin expanded approximately 190 basis points to 19.6% for the nine months ended September 30, 2024. The year over year net expansion in gross margin was primarily attributable to the following:

•An increase in services margin of 187 basis points and an expansion in product margin of 4 basis points.

•The increase in services margin primarily reflects an increase in fees for cloud solutions, including from SADA. The increase also reflects a net increase in margin contribution from Insight Core services from SADA and Infocenter, partially offset by a decline in margin contribution from organic Insight Core services.

•The net expansion in product margin reflects an increase in margin contribution from software due to selling software at higher margins, partially offset by a decrease in margin contribution from hardware.

EMEA's gross profit for the three months ended September 30, 2024 increased 11%, or $6.7 million, year over year (increasing 9% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended September 30, 2023. As a percentage of net sales, gross margin expanded 440 basis points, year over year. The year over year net expansion in gross margin was attributable to the following:

•An increase in services margin of 278 basis points and an expansion in product margin of 160 basis points.

•The increase in services margin is primarily the result of increased fees for cloud solutions and increased margin contribution from Insight Core services, including from Amdaris.

•The expansion in product margin is primarily the result of sales of hardware at higher margins than in the same period in the prior year.

EMEA's gross profit for the nine months ended September 30, 2024 increased 14%, or $27.9 million, year over year (increasing 13% when excluding the effects of fluctuating foreign currency exchange rates), compared to the nine months ended September 30, 2023. As a percentage of net sales, gross margin expanded approximately 380 basis points, year over year. The year over year net expansion in gross margin was attributable to the following:

•An increase in services margin of 282 basis points and an expansion in product margin of 92 basis points.

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•The increase in services margin is primarily the result of increased fees for cloud solutions and increased margin contribution from Insight Core services, including from Amdaris.

•The expansion in product margin is primarily the result of sales of hardware at higher margins than in the same period in the prior year.

APAC's gross profit for the three months ended September 30, 2024 increased 15%, or $2.3 million, year over year (increasing 13% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended September 30, 2023. As a percentage of net sales, gross margin expanded approximately 10 basis points, year over year. The year over year net expansion in gross margin was primarily attributable to an expansion in product margin driven by sales of hardware at higher margins in connection with an infrastructure transaction in the current year period.

APAC's gross profit for the nine months ended September 30, 2024 increased 11%, or $5.2 million, year over year (increasing 12% when excluding the effects of fluctuating foreign currency exchange rates), compared to the nine months ended September 30, 2023. As a percentage of net sales, gross margin expanded approximately 190 basis points, year over year. The year over year net expansion in gross margin was primarily attributable to the following:

•An expansion in services margin of 166 basis points and an expansion in product margin of 27 basis points.

•The expansion in services margin was primarily driven by increased fees for cloud solutions and higher margin contribution from Insight Core services.

•The expansion in product margin was driven by higher volume of sales of software at higher margins than in the prior year period.

Operating Expenses.

Selling and Administrative Expenses. Selling and administrative expenses for the three months ended September 30, 2024 increased 7%, or $20.2 million, compared to the three months ended September 30, 2023 (increasing 6% when excluding fluctuating foreign currency exchange rates). Selling and administrative expenses increased 5%, or $46.6 million (also increasing 5% when excluding fluctuating foreign currency exchange rates), for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023.

Selling and administrative expenses increased approximately 210 basis points as a percentage of net sales in the three months ended September 30, 2024 compared to the three months ended September 30, 2023. The overall net increase in selling and administrative expenses primarily reflects increases in personnel costs, including teammate benefits and in depreciation and amortization expenses of $12.0 million and $10.6 million, respectively, year over year. The increase in personnel costs reflects an increase in overall teammate headcount resulting from our acquisitions and the impact of merit increases. The increase in depreciation and amortization expenses primarily reflects higher amortization of intangible assets associated with the SADA, Infocenter and Amdaris acquisitions. These increases were partially offset by a net decrease in other expenses. The net decrease in other expenses primarily reflects net gains of $6.4 million recognized on the revaluation of the Amdaris and Infocenter acquisition earnout liabilities and the resulting decreases in the fair values of the potential earnout payments combined with costs associated with certain third-party data center outages of $8.0 million incurred in the three months ended September 30, 2023 with no comparable costs in the three months ended September 30, 2024. We also incurred transformation costs in the current and prior year periods of $5.1 million and $3.7 million, respectively, however, these costs are unique in nature and are not expected to recur in the longer term.

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Selling and administrative expenses increased approximately 140 basis points as a percentage of net sales in the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023. The overall net increase in selling and administrative expenses primarily reflects increases in personnel costs, including teammate benefits and depreciation and amortization expenses of $38.3 million and $28.2 million, respectively, year over year. The increase in personnel costs reflects an increase in overall teammate headcount from our acquisitions and the impact of merit increases. The increase in depreciation and amortization expenses reflects higher amortization of intangible assets associated with the SADA, Infocenter and Amdaris acquisitions. These increases were partially offset by a net decrease in other expenses. The net decrease in other expenses primarily reflects net gains of $30.6 million recognized on the revaluation of the SADA, Amdaris and Infocenter acquisition earnout liabilities and the resulting decreases in the fair values of the potential earnout payments, as well as recoveries associated with certain third-party data center outages of $3.4 million in the nine months ended September 30, 2024 compared to costs incurred of $8.0 million in the nine months ended September 30, 2023. We also incurred transformation costs in the current and prior year periods of $13.0 million and $14.0 million, respectively, however, these costs are unique in nature and are not expected to recur in the longer term.

Severance and Restructuring Expenses. During the three months ended September 30, 2024, we recorded severance and restructuring expenses, net of adjustments, of approximately $8.5 million. This includes approximately $4.3 million, net restructuring charges associated with costs to exit properties. Comparatively, during the three months ended September 30, 2023, we recorded severance and restructuring expenses of approximately $2.9 million. The severance charges in both periods primarily related to a realignment of certain roles and responsibilities and reductions in workforce.

During the nine months ended September 30, 2024, we recorded severance and restructuring expenses, net of adjustments, of approximately $15.6 million. This includes approximately $4.3 million, net restructuring charges associated with costs to exit properties. Comparatively, during the nine months ended September 30, 2023, we recorded severance and restructuring expense, net of adjustments, of approximately $3.0 million, reflecting a net gain on sale of property due to restructuring of $6.8 million. The severance charges in both periods primarily related to a realignment of certain roles and responsibilities and reductions in workforce.

Acquisition and Integration Related Expenses. During the three months ended September 30, 2024, we recorded acquisition and integration related expenses of approximately $0.7 million. During the three months ended September 30, 2023, we recorded acquisition and integration related expenses of approximately $4.3 million. As the Company executes its acquisition strategy, we expect to incur additional acquisition and integration related expenses.

During the nine months ended September 30, 2024, we recorded acquisition and integration related expenses of approximately $2.2 million. During the nine months ended September 30, 2023, we recorded acquisition and integration related expenses of approximately $4.4 million. The expenses in the current year period related primarily to the acquisitions of SADA in December 2023 and Infocenter in May 2024.

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Earnings from Operations. Earnings from operations increased 1%, or $1.0 million, for the three months ended September 30, 2024 compared to the three months ended September 30, 2023. Earnings from operations increased 12%, or $36.0 million, for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023. Our earnings from operations and earnings from operations as a percentage of net sales by operating segment were as follows for the three and nine months ended September 30, 2024 and 2023 (dollars in thousands):


	Three Months Ended September 30,								Nine Months Ended September 30,
	2024		% of Net Sales		2023		% of Net Sales		2024		% of Net Sales		2023		% of Net Sales
North America	$	80,836	4.7	%	$	86,083	4.6	%	$	266,672	5.0	%	$	244,705	4.4	%
EMEA	6,665		2.1	%	1,681		0.5	%	38,862		3.6	%	28,229		2.4	%
APAC	5,350		9.1	%	4,098		8.0	%	18,376		10.2	%	15,000		8.6	%
Consolidated	$	92,851	4.4	%	$	91,862	4.1	%	$	323,910	4.9	%	$	287,934	4.1	%

North America's earnings from operations for the three months ended September 30, 2024 decreased 6%, or $5.2 million, compared to the three months ended September 30, 2023. As a percentage of net sales, earnings from operations increased by approximately 10 basis points to 4.7%. The decrease in earnings from operations was primarily driven by the increase in selling and administrative expenses and severance and restructuring expenses, net, partially offset by an increase in gross profit and a decrease in acquisition and integration related expenses, when compared to the three months ended September 30, 2023.

North America's earnings from operations for the nine months ended September 30, 2024 increased 9%, or $22.0 million, compared to the nine months ended September 30, 2023. As a percentage of net sales, earnings from operations increased by approximately 60 basis points to 5.0%. The increase in earnings from operations was primarily driven by the increase in gross profit, partially offset by an increase in selling and administrative expenses and an increase in severance and restructuring expenses, net, when compared to the nine months ended September 30, 2023.

EMEA's earnings from operations for the three months ended September 30, 2024 increased more than 100%, or $5.0 million (also increasing by more than 100% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended September 30, 2023. As a percentage of net sales, earnings from operations increased by approximately 160 basis points to 2.1%. The increase in earnings from operations was primarily driven by an increase in gross profit and decrease in acquisition and integration related expenses, partially offset by an increase in selling and administrative expenses, when compared to the three months ended September 30, 2023.

EMEA's earnings from operations for the nine months ended September 30, 2024 increased 38%, or $10.6 million (increasing 35% when excluding the effects of fluctuating foreign currency exchange rates), compared to the nine months ended September 30, 2023. As a percentage of net sales, earnings from operations increased by approximately 120 basis points to 3.6%. The increase in earnings from operations was primarily driven by an increase in gross profit and decrease in acquisition and integration related expenses, partially offset by an increase in selling and administrative expenses, when compared to the nine months ended September 30, 2023.

APAC's earnings from operations for the three months ended September 30, 2024 increased 31%, or $1.3 million (increasing 28% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended September 30, 2023. As a percentage of net sales, earnings from operations increased by approximately 110 basis points to

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9.1%. The increase in earnings from operations was primarily driven by an increase in gross profit, partially offset by an increase in selling and administrative expenses, when compared to the three months ended September 30, 2023.

APAC's earnings from operations for the nine months ended September 30, 2024 increased 23%, or $3.4 million (also increasing 23% when excluding the effects of fluctuating foreign currency exchange rates), compared to the nine months ended September 30, 2023. As a percentage of net sales, earnings from operations increased by approximately 160 basis points to 10.2%. The increase in earnings from operations was primarily driven by an increase in gross profit, partially offset by an increase in selling and administrative expenses, when compared to the nine months ended September 30, 2023.

Non-Operating Expense (Income).

Interest Expense, Net. Interest expense, net primarily relates to borrowings under our ABL facility, the 6.625% Senior Notes due 2032 (the "Senior Notes"), the Convertible Notes and imputed interest under our inventory financing facilities, partially offset by interest income generated from interest earned on cash and cash equivalent bank balances. Interest expense, net for the three months ended September 30, 2024 increased 38%, or $4.6 million, compared to the three months ended September 30, 2023. This was primarily due to the issuance of the Senior Notes in May 2024 partially offset by lower loan balances under our ABL facility, increased interest income and decreased imputed interest under our inventory financing facilities. Interest expense, net for the nine months ended September 30, 2024 increased 37%, or $11.6 million, compared to the nine months ended September 30, 2023. The increase in the nine months ended September 30, 2024 was due to the issuance of the Senior Notes and higher loan balances under our ABL facility, partially offset by decreased imputed interest under our inventory financing facilities and higher interest income.

Imputed interest under our inventory financing facilities was $2.5 million and $7.3 million for the three and nine months ended September 30, 2024, compared to $3.2 million and $10.7 million for the three and nine months ended September 30, 2023. The decrease in imputed interest under our inventory financing facilities was a result of lower average daily balances under the facilities during the period. For a description of our various financing facilities, see Note 5 to our Consolidated Financial Statements in Part I, Item 1 of this report.

Income Tax Expense. Our effective tax rate of 22.5% for the three months ended September 30, 2024 was lower than our effective tax rate of 24.7% for the three months ended September 30, 2023. The decrease in the effective tax rate for the three months ended September 30, 2024 was primarily due to tax benefits related to the revaluation of certain acquisition earnout liabilities and increased tax benefits for research and development activities recorded in the current year period.

Our effective tax rate of 24.2% for the nine months ended September 30, 2024 was lower than our effective tax rate of 25.4% for the nine months ended September 30, 2023. The decrease in the effective tax rate for the nine months ended September 30, 2024 was primarily due to tax benefits related to the revaluation of certain acquisition earnout liabilities and higher excess tax benefits on the settlement of employee share-based compensation in the current year period.

The Organization for Economic Cooperation and Development’s (OECD) Pillar II Initiative introduced a 15% global minimum tax for certain multinational groups exceeding minimum annual global revenue thresholds. Several countries in which Insight operates have enacted legislation adopting the minimum tax effective January 1, 2024. The minimum tax did not have a material impact on our effective tax rate as of September 30, 2024, nor do we expect it to have a material impact on our 2024 annual effective tax rate. We will continue to monitor any future impact as additional countries enact legislation to adopt this tax.

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Liquidity and Capital Resources

The following table sets forth certain consolidated cash flow information for the nine months ended September 30, 2024 and 2023 (in thousands):


	Nine Months Ended September 30,
	2024		2023
Net cash provided by operating activities	$	417,731	$	413,742
Net cash used in investing activities	(288,868)		(96,430)
Net cash used in financing activities	(82,523)		(235,628)
Foreign currency exchange effect on cash, cash equivalent and restricted cash balances	2,660		(1,074)
Increase in cash, cash equivalents and restricted cash	49,000		80,610
Cash, cash equivalents and restricted cash at beginning of period	270,785		165,718
Cash, cash equivalents and restricted cash at end of period	$	319,785	$	246,328

Cash and Cash Flow

•Our primary uses of cash during the nine months ended September 30, 2024 were to fund the acquisition of Infocenter, repay debt, including principal upon conversion of a portion of the Convertible Notes, fund repurchases of our common stock and to pay earnouts and other acquisition related payments.

•Operating activities provided $417.7 million in cash during the nine months ended September 30, 2024, compared to cash provided by operating activities of $413.7 million during the nine months ended September 30, 2023.

•Capital expenditures were $32.4 million and $29.1 million for the nine months ended September 30, 2024 and 2023, respectively.

•During the nine months ended September 30, 2024, we paid approximately $265.0 million, to acquire Infocenter, net of cash and cash equivalents acquired of $5.1 million.

•During the nine months ended September 30, 2024, we repurchased $200.0 million of our common stock compared to $217.1 million of repurchases during the nine months ended September 30, 2023.

•We issued $500.0 million in aggregate principal amount of Senior Notes, which we used to pay down a portion of our borrowings under our ABL facility.

•We had net repayments under our ABL facility during the nine months ended September 30, 2024 of $333.3 million, using proceeds from the Senior Notes, compared to net borrowings of $34.3 million during the nine months ended September 30, 2023.

•We had net borrowings under our inventory financing facilities of $3.1 million during the nine months ended September 30, 2024 compared to net repayments of $32.5 million during the nine months ended September 30, 2023.

We anticipate that cash flows from operations, together with the funds available under our financing facilities, will be adequate to support our expected cash and working capital requirements for operations, as well as other strategic acquisitions, over the next 12 months and beyond. We expect existing cash and cash flows from operations to continue to be sufficient to fund our operating cash activities and cash commitments for investing and financing activities, such as capital expenditures, strategic acquisitions, repurchases of our common stock, principal payment on the Convertible Notes that mature in February 2025 and are freely convertible at the option of the Convertible Note holders, debt repayments and repayment of our inventory financing facilities for the next 12 months. We currently expect to fund known cash commitments

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beyond the next 12 months through operating cash activities and/or other available financing resources.

Net cash provided by operating activities

•Our cash conversion cycle is inverted, meaning on average we pay our partners on terms shorter than we receive payments from our clients. This means we generate more cash in our operations in periods of sequential decline in sales and particularly in hardware net sales.

•Cash flow provided by operating activities in the first nine months of 2024 was $417.7 million compared to cash provided by operating activities of $413.7 million in the first nine months of 2023.

•Cash flow provided by operating activities increased 1% during the first nine months of 2024 compared to the same period in 2023.

Our consolidated cash flow operating metrics were as follows:


	Three Months Ended September 30,
	2024	2023
Days sales outstanding in ending accounts receivable (“DSOs”) (a)	172	125
Days inventory outstanding (“DIOs”) (b)	8	9
Days purchases outstanding in ending accounts payable (“DPOs”) (c)	(162)	(99)
Cash conversion cycle (days) (d)	18	35

(a)Calculated as the balance of current accounts receivable, net at the end of the quarter divided by daily net sales. Daily net sales is calculated as net sales for the quarter divided by 92 days.

(b)Calculated as the balance of inventories at the end of the quarter divided by daily costs of goods sold. Daily costs of goods sold is calculated as costs of goods sold for the quarter divided by 92 days.

(c)Calculated as the sum of the balances of accounts payable – trade and accounts payable – inventory financing facilities at the end of the quarter divided by daily costs of goods sold. Daily costs of goods sold is calculated as costs of goods sold for the quarter divided by 92 days.

(d)Calculated as DSOs plus DIOs, less DPOs.

•Our cash conversion cycle was 18 days in the third quarter of 2024, down from 35 days in the third quarter of 2023.

•The net changes were a result of a 63 day increase in DPOs and a 1 day decrease in DIOs, partially offset by a 47 day increase in DSOs.

•The net decrease in our cash conversion cycle year over year was primarily the result of:

•the impact to DPOs of the SADA acquisition, a significant agency transaction that based on its terms had not cleared by quarter end and changes in vendor mix;

•the benefit to DIOs of the reduction in hardware sales and changes in our operating strategy; and

•the impact to DSOs of the SADA acquisition combined with a significant agency transaction that based on its terms had not cleared by quarter end.

•Our cash conversion cycle is impacted by netted costs that we apply to our services net sales to appropriately record net sales that we earn as an agent. These netted costs, while excluded from both net sales and cost of goods sold, are processed and applied to accounts receivable and accounts payable in each reporting period. As a result, our DSO and DPO calculated on the basis of unadjusted net sales and

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INSIGHT ENTERPRISES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (continued)

unadjusted cost of goods sold are inherently inflated. Netted costs were $2.4 billion and $1.7 billion in the third quarter of 2024 and 2023, respectively. Adjusting our cash conversion cycle calculation by adding netted costs to both daily net sales and daily cost of goods sold results in a decrease to our cash conversion cycle from 18 days to 17 days in the third quarter of 2024 and results in a decrease from 35 days down to 25 days in the third quarter of 2023, which we believe provides a more accurate reflection of our cash flow operating metrics.

•We expect that cash flow from operations will be used, at least partially, to fund working capital as we typically pay our partners on average terms that are shorter than the average terms we grant to our clients to take advantage of supplier discounts.

•We intend to use cash generated in the remainder of 2024 in excess of working capital needs to pay down our ABL facility and inventory financing facilities and for strategic acquisitions.

Net cash used in investing activities

•We paid $265.0 million to acquire Infocenter on May 1, 2024, net of cash and cash equivalents acquired of $5.1 million. Additionally, we paid $5.2 million, net of cash and cash equivalents acquired, to acquire an entity in our EMEA segment, on July 1, 2024.

•We acquired Amdaris for approximately $82.9 million, net of cash and cash equivalents acquired and excluding earn outs and hold backs in the nine months ended September 30, 2023.

•We received proceeds from the sale of assets of $13.8 million in the nine months ended September 30, 2024.

•We received proceeds from the sale of assets, including our properties held for sale, of $15.5 million in the nine months ended September 30, 2023.

•Capital expenditures were $32.4 million and $29.1 million for the nine months ended September 30, 2024 and 2023, respectively.

•We expect capital expenditures for the full year 2024 to be in a range of $35.0 to $40.0 million.

Net cash used in financing activities

•In May 2024, we issued $500.0 million in aggregate principal amount of Senior Notes, which we used to pay down a portion of our borrowings under our ABL facility.

•During the nine months ended September 30, 2024, we had net repayments under our ABL facility of $333.3 million using proceeds from the Senior Notes.

•During the nine months ended September 30, 2023, we had net borrowings under our ABL facility that increased our outstanding long-term debt balance by $34.3 million.

•We repaid approximately $16.9 million principal upon conversion of a portion of the Convertible Notes in the nine months ended September 30, 2024, with no comparable activity in the prior year period.

•During the nine months ended September 30, 2024, we made earnout and acquisition related payments of $18.3 million associated with our Amdaris and Hanu acquisitions.

•During the nine months ended September 30, 2023, we paid $10.7 million, the majority of the earnout associated with the Hanu acquisition.

•During the nine months ended September 30, 2024, we repurchased $200.0 million of our common stock.

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INSIGHT ENTERPRISES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (continued)

•During the nine months ended September 30, 2023, we repurchased $217.1 million of our common stock.

Financing Facilities

Our debt balance as of September 30, 2024 was $1,086.8 million. As of September 30, 2024, the current portion of our long-term debt primarily relates to the Convertible Notes.

•Our objective is to pay our debt balances down while retaining adequate cash balances to meet overall business objectives.

•The Convertible Notes are subject to certain events of default and certain acceleration clauses. As of September 30, 2024, no such events have occurred.

•The Senior Notes are subject to certain events of default and certain acceleration clauses. As of September 30, 2024, no such events have occurred.

•Our ABL facility contains various covenants customary for transactions of this type, including complying with a minimum receivable and inventory requirement and meeting monthly, quarterly and annual reporting requirements.

•The credit agreement contains customary affirmative and negative covenants and events of default.

•At September 30, 2024, we were in compliance with all such covenants.

•While the ABL facility has a stated maximum amount, the actual availability under the ABL facility is limited by a minimum accounts receivable and inventory requirement. As of September 30, 2024, eligible accounts receivable and inventory were sufficient to permit access to the full $1.8 billion under the ABL facility of which $262.4 million was outstanding.

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

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

•Our inventory financing facilities have an aggregate availability for vendor purchases of $705.0 million, of which $235.2 million was outstanding at September 30, 2024.

Undistributed Foreign Earnings

Cash and cash equivalents held by foreign subsidiaries are generally subject to U.S. income taxation upon repatriation to the United States. As of September 30, 2024, we had approximately $272.1 million in cash and cash equivalents in certain of our foreign subsidiaries, primarily residing in Canada, the Netherlands and Australia. Certain of these cash balances will be remitted to the United States by paying down intercompany payables generated in the ordinary course of business or through actual dividend distributions.

Off-Balance Sheet Arrangements

We have entered into off-balance sheet arrangements, which include indemnifications. The indemnifications are discussed in Note 8 to the Consolidated Financial Statements in Part I, Item 1 of this report and such discussion is incorporated by reference herein. We believe that none of our off-balance sheet arrangements have, or are reasonably likely to have, a material current or future effect on our business, financial condition or results of operations.

Recently Issued Accounting Standards

The information contained in Note 1 to the Consolidated Financial Statements in Part I, Item 1 of this report concerning a description of recently issued accounting standards which affect or may affect our financial statements, including our expected dates of adoption and the

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INSIGHT ENTERPRISES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (continued)

estimated effects on our results of operations and financial condition, is incorporated by reference herein.

Contractual Obligations

Other than as described in Note 5 and Note 8 to the Consolidated Financial Statements in Part I, Item 1 of this report, there have been no material changes in our reported contractual obligations, as described under “Cash Requirements From Contractual Obligations” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2023.

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INSIGHT ENTERPRISES, INC.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Except as described below, there have been no material changes in our reported market risks, as described in “Quantitative and Qualitative Disclosures About Market Risk” in Part II, Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2023.

Although our Convertible Notes and Senior Notes are based on fixed rates, changes in interest rates could impact the fair market value of such notes. As of September 30, 2024, the fair market value of our Convertible Notes and Senior Notes was $1,042.9 million and $521.3 million, respectively. For additional information about our Convertible Notes and Senior Notes, see Note 5 to our Consolidated Financial Statements in Part I, Item 1 of this report.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Our Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of our disclosure controls and procedures (as such term is defined under Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) and determined that as of September 30, 2024 our disclosure controls and procedures were effective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There was no change in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) in the three months ended September 30, 2024 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

Inherent Limitations of Internal Control Over Financial Reporting

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to risks that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

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INSIGHT ENTERPRISES, INC.

Part II – OTHER INFORMATION

Item 1. Legal Proceedings.

There are no material pending legal proceedings to which we are a party or of which any of our property is the subject. From time to time, we are party to various routine legal proceedings incidental to the business, see “– Legal Proceedings” in Note 8 to the Consolidated Financial Statements in Part I, Item 1 of this report.

Item 1A. Risk Factors.

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, Item 1A, “Risk Factors”, in our Annual Report on Form 10-K for the year ended December 31, 2023, which could materially affect our business, financial condition or future results. The risks described in our Annual Report on Form 10-K are not the only risks facing the Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially adversely affect our business, financial condition or operating results.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

There were no unregistered sales of equity securities during the three months ended September 30, 2024.

We have never paid a cash dividend on our common stock, and we currently do not intend to pay any cash dividends in the foreseeable future. Our ABL facility contains certain covenants that, if not met, restrict the payment of cash dividends.

Issuer Purchases of Equity Securities


Period	(a) Total Number of Shares Purchased	(b) Average Price Paid per Share		(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	(d) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
July 1, 2024 through July 31, 2024	—	$	—	—	$	165,020,476
August 1, 2024 through August 31, 2024	661,101	196.01		661,101	35,436,476
September 1, 2024 through September 30, 2024	174,087	203.55		174,087	300,000,476
Total	835,188			835,188

On May 18, 2023, we announced that our Board of Directors authorized the repurchase of up to $300.0 million of our common stock, including $100.0 million that remained available from prior authorizations. During the three months ended September 30, 2024, this repurchase authorization was substantially exhausted. On September 11, 2024, we announced that our Board of Directors authorized the repurchase of up to $300.0 million of our common stock, in addition to any amount that remained from prior authorizations. As of September 30, 2024, approximately $300.0 million remained available for repurchases under our share repurchase plan.

In accordance with the share repurchase plan, share repurchases may be made on the open market, subject to Rule 10b-18 or in privately negotiated transactions, through block trades, through 10b5-1 plans or otherwise, at management’s discretion. The number 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.

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INSIGHT ENTERPRISES, INC.

Item 3. Defaults Upon Senior Securities.

Not applicable.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

Rule 10b5-1 Trading Plans

During the three months ended September 30, 2024, none of our directors or executive officers adopted, modified or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (each as defined in Item 408 of Regulation S-K).

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INSIGHT ENTERPRISES, INC.

Item 6. Exhibits.

Incorporated by Reference

Exhibit

Number

Exhibit Description

Form

File No.

Exhibit

Number

Filing

Date

Filed/Furnished
Herewith

3.1

Amended and Restated Certificate of Incorporation of Insight Enterprises, Inc.

10-K

000-25092

3.1

February 17, 2006

3.2

Certificate of Amendment of Amended and Restated Certificate of Incorporation of Insight Enterprises, Inc.

8-K

000-25092

3.1

May 21, 2015

3.3

Amended and Restated Bylaws of Insight Enterprises, Inc.

8-K

000-25092

3.2

May 21, 2015

10.1

Executive Employment Agreement Between Insight Enterprises, Inc. and James Morgado dated as of August 30, 2024

8-K

000-25092

10.1

September 4, 2024

10.2

Executive Employment Agreement Between Insight Enterprises, Inc. and Glynis Bryan dated as of August 30, 2024

8-K

000-25092

10.2

September 4, 2024

31.1

Certification of Chief Executive Officer Pursuant to Securities Exchange Act Rule 13a-14

31.2

Certification of Chief Financial Officer Pursuant to Securities Exchange Act Rule 13a-14

32.1*

Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS

Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

101.SCH

Inline XBRL Taxonomy Extension Schema Document

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document

104

Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101)

* Furnished herewith

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INSIGHT ENTERPRISES, INC.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date:

October 31, 2024

INSIGHT ENTERPRISES, INC.

By:

/s/ Joyce A. Mullen

Joyce A. Mullen

President and Chief Executive Officer

(Duly Authorized Officer)

By:

/s/ Glynis A. Bryan

Glynis A. Bryan

Chief Financial Officer

(Principal Financial Officer)

By:

/s/ Rachael A. Crump

Rachael A. Crump

Chief Accounting Officer

(Principal Accounting Officer)

INSIGHT ENTERPRISES, INC.

Exhibit 31.1

CERTIFICATION

I, Joyce A. Mullen, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Insight Enterprises, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date:			October 31, 2024

By:			/s/ Joyce A. Mullen
			Joyce A. Mullen
			Chief Executive Officer

INSIGHT ENTERPRISES, INC.

Exhibit 31.2

CERTIFICATION

I, Glynis A. Bryan, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Insight Enterprises, Inc.;

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date:			October 31, 2024

By:			/s/ Glynis A. Bryan
			Glynis A. Bryan
			Chief Financial Officer

INSIGHT ENTERPRISES, INC.

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Insight Enterprises, Inc. (the “Company”) for the quarter ended September 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), we, Joyce A. Mullen, Chief Executive Officer of the Company, and Glynis A. Bryan, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that to the best of our knowledge:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


By:			/s/ Joyce A. Mullen
			Joyce A. Mullen
			Chief Executive Officer
			October 31, 2024

By:			/s/ Glynis A. Bryan
			Glynis A. Bryan
			Chief Financial Officer
			October 31, 2024

Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2024	Oct. 25, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	0-25092
Entity Registrant Name	INSIGHT ENTERPRISES, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	86-0766246
Entity Address, Address Line One	2701 E. Insight Way
Entity Address, City or Town	Chandler
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85286
City Area Code	480
Local Phone Number	333-3000
Title of 12(b) Security	Common stock, par value $0.01
Trading Symbol	NSIT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		31,761,884
Entity Central Index Key	0000932696
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 317,449	$ 268,730
Accounts receivable, net of allowance for doubtful accounts of $24,654 and $12,623, respectively	3,897,481	3,568,290
Inventories	151,013	184,605
Contract assets, net	85,767	120,518
Other current assets	208,798	189,158
Total current assets	4,660,508	4,331,301
Long-term contract assets, net	105,273	132,780
Property and equipment, net of accumulated depreciation and amortization of $222,495 and $219,591, respectively	214,878	210,061
Goodwill	888,808	684,345
Intangible assets, net of accumulated amortization of $226,900 and $175,463, respectively	448,680	369,687
Long-term accounts receivable	828,465	412,666
Other assets	139,831	145,510
Total assets	7,286,443	6,286,350
Current liabilities:
Accounts payable—trade	2,683,323	2,255,183
Accounts payable—inventory financing facilities	235,192	231,850
Accrued expenses and other current liabilities	493,175	538,346
Current portion of long-term debt	332,439	348,004
Total current liabilities	3,744,129	3,373,383
Long-term debt	754,377	592,517
Deferred income taxes	72,849	27,588
Long-term accounts payable	788,078	353,794
Other liabilities	160,710	203,335
Total liabilities	5,520,143	4,550,617
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value, 3,000 shares authorized; no shares issued	0	0
Common stock, $0.01 par value, 100,000 shares authorized; 31,761 shares at September 30, 2024 and $32,590 shares at December 31, 2023 issued and outstanding	318	326
Additional paid-in capital	334,337	328,607
Retained earnings	1,471,546	1,448,412
Accumulated other comprehensive loss – foreign currency translation adjustments	(39,901)	(41,612)
Total stockholders’ equity	1,766,300	1,735,733
Total liabilities and stockholders' equity	$ 7,286,443	$ 6,286,350

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 24,654	$ 12,623
Accumulated depreciation and amortization of property and equipment	222,495	219,591
Accumulated amortization of intangible assets	$ 226,900	$ 175,463
Preferred stock, par value ( in usd per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	3,000,000	3,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	31,761,000	32,590,000
Common stock, shares outstanding (in shares)	31,761,000	32,590,000

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Net sales:
Total net sales	$ 2,087,886	$ 2,266,286	$ 6,629,033	$ 6,939,829
Costs of goods sold:
Total costs of goods sold	1,655,801	1,857,416	5,302,655	5,706,454
Gross profit	432,085	408,870	1,326,378	1,233,375
Operating expenses:
Selling and administrative expenses	329,996	309,793	984,664	938,037
Severance and restructuring expenses, net	8,543	2,923	15,638	2,955
Acquisition and integration related expenses	695	4,292	2,166	4,449
Earnings from operations	92,851	91,862	323,910	287,934
Non-operating expense (income):
Interest expense, net	16,629	12,013	43,376	31,766
Other expense (income), net	1,104	(203)	(128)	489
Earnings before income taxes	75,118	80,052	280,662	255,679
Income tax expense	16,910	19,805	67,983	64,978
Net earnings	$ 58,208	$ 60,247	$ 212,679	$ 190,701
Net earnings per share:
Basic (in usd per share)	$ 1.81	$ 1.85	$ 6.55	$ 5.76
Diluted (in usd per share)	$ 1.52	$ 1.62	$ 5.53	$ 5.13
Shares used in per share calculations:
Basic (in shares)	32,216	32,574	32,459	33,127
Diluted (in shares)	38,331	37,203	38,445	37,149
Products
Net sales:
Total net sales	$ 1,673,779	$ 1,890,154	$ 5,364,169	$ 5,803,408
Costs of goods sold:
Total costs of goods sold	1,486,271	1,697,543	4,794,125	5,219,720
Gross profit	187,508	192,611	570,044	583,688
Services
Net sales:
Total net sales	414,107	376,132	1,264,864	1,136,421
Costs of goods sold:
Total costs of goods sold	169,530	159,873	508,530	486,734
Gross profit	$ 244,577	$ 216,259	$ 756,334	$ 649,687

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net earnings	$ 58,208	$ 60,247	$ 212,679	$ 190,701
Other comprehensive (loss) gain, net of tax:
Foreign currency translation adjustments	17,227	(12,326)	1,711	(531)
Total comprehensive income	$ 75,435	$ 47,921	$ 214,390	$ 190,170

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Retained Earnings
Common stock, beginning balance (in shares) at Dec. 31, 2022		34,009
Treasury stock, beginning balance (in shares) at Dec. 31, 2022			0
Beginning balance at Dec. 31, 2022	$ 1,638,068	$ 340	$ 0	$ 327,872	$ (58,802)	$ 1,368,658
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes (in shares)		202
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes	(9,392)	$ 2		(9,394)
Stock-based compensation expense	26,211			26,211
Repurchase of treasury stock (in shares)			(1,634)
Repurchase of treasury stock	(217,108)		$ (217,108)
Retirement of treasury stock (in shares)		(1,634)	1,634
Retirement of treasury stock	0	$ (16)	$ 217,108	(15,537)		(201,555)
Excise tax on stock repurchases	(1,901)			(1,901)
Foreign currency translation adjustments, net of tax	(531)				(531)
Net earnings	190,701					190,701
Common stock, ending balance (in shares) at Sep. 30, 2023		32,577
Treasury stock, ending balance (in shares) at Sep. 30, 2023			0
Ending balance at Sep. 30, 2023	1,626,048	$ 326	$ 0	327,251	(59,333)	1,357,804
Common stock, beginning balance (in shares) at Jun. 30, 2023		32,568
Treasury stock, beginning balance (in shares) at Jun. 30, 2023			0
Beginning balance at Jun. 30, 2023	1,568,955	$ 326	$ 0	318,078	(47,007)	1,297,558
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes (in shares)		9
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes	(388)			(388)
Stock-based compensation expense	9,548			9,548
Excise tax on stock repurchases	13			13
Foreign currency translation adjustments, net of tax	(12,326)				(12,326)	(1)
Net earnings	60,247					60,247
Common stock, ending balance (in shares) at Sep. 30, 2023		32,577
Treasury stock, ending balance (in shares) at Sep. 30, 2023			0
Ending balance at Sep. 30, 2023	$ 1,626,048	$ 326	$ 0	327,251	(59,333)	1,357,804
Common stock, beginning balance (in shares) at Dec. 31, 2023	32,590	32,590
Treasury stock, beginning balance (in shares) at Dec. 31, 2023			0
Beginning balance at Dec. 31, 2023	$ 1,735,733	$ 326	$ 0	328,607	(41,612)	1,448,412
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes (in shares)		177
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes	(11,499)	$ 2		(11,501)
Stock-based compensation expense	26,216			26,216
Employee stock purchase plan issuances (in shares)		17
Employee stock purchase plan issuances	3,149			3,149
Shares issued upon conversion of Convertible Notes (in shares)		141
Shares issued upon conversion of Convertible Notes	0	$ 1		(1)
Shares received from convertible note hedge upon conversion of Notes (in shares)		(141)
Shares received from convertible note hedge upon conversion of Convertible Notes	0	$ (1)		1
Repurchase of treasury stock (in shares)			(1,023)
Repurchase of treasury stock	(200,020)		$ (200,020)
Retirement of treasury stock (in shares)		(1,023)	1,023
Retirement of treasury stock	0	$ (10)	$ 200,020	(10,465)		(189,545)
Excise tax on stock repurchases	(1,669)			(1,669)
Foreign currency translation adjustments, net of tax	1,711				1,711
Net earnings	$ 212,679					212,679
Common stock, ending balance (in shares) at Sep. 30, 2024	31,761	31,761
Treasury stock, ending balance (in shares) at Sep. 30, 2024			0
Ending balance at Sep. 30, 2024	$ 1,766,300	$ 318	$ 0	334,337	(39,901)	1,471,546
Common stock, beginning balance (in shares) at Jun. 30, 2024		32,584
Treasury stock, beginning balance (in shares) at Jun. 30, 2024			0
Beginning balance at Jun. 30, 2024	1,847,545	$ 326	$ 0	334,573	(57,128)	1,569,774
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes (in shares)		6
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes	(488)	$ 0		(488)
Stock-based compensation expense	9,316			9,316
Employee stock purchase plan issuances (in shares)		6
Employee stock purchase plan issuances	1,149			1,149
Repurchase of treasury stock (in shares)			(835)
Repurchase of treasury stock	(165,020)		$ (165,020)
Retirement of treasury stock (in shares)		(835)	835
Retirement of treasury stock	0	$ (8)	$ 165,020	(8,576)		(156,436)
Excise tax on stock repurchases	(1,637)			(1,637)
Foreign currency translation adjustments, net of tax	17,227				17,227
Net earnings	$ 58,208					58,208
Common stock, ending balance (in shares) at Sep. 30, 2024	31,761	31,761
Treasury stock, ending balance (in shares) at Sep. 30, 2024			0
Ending balance at Sep. 30, 2024	$ 1,766,300	$ 318	$ 0	$ 334,337	$ (39,901)	$ 1,471,546

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net earnings	$ 212,679	$ 190,701
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	72,357	44,698
Provision for losses on accounts receivable	7,440	3,754
Provision for losses on contract assets	2,474	0
Non-cash stock-based compensation	26,216	26,211
Deferred income taxes	16,342	(9,062)
Amortization of debt issuance costs	4,090	3,649
Gain on revaluation of earnout liabilities	(30,648)	0
Other adjustments	(3,155)	(1,356)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable	(291,692)	201,628
Decrease in inventories	28,407	75,124
Decrease (increase) in contract assets	49,798	(1,810)
Increase in long-term accounts receivable	(434,966)	(73,451)
Decrease in other assets	13,626	5,392
Increase (decrease) in accounts payable	374,166	(57,882)
Increase in long-term accounts payable	428,081	52,479
Decrease in accrued expenses and other liabilities	(57,484)	(46,333)
Net cash provided by operating activities:	417,731	413,742
Cash flows from investing activities:
Proceeds from sale of assets	13,751	15,515
Purchases of property and equipment	(32,371)	(29,070)
Acquisitions, net of cash and cash equivalents acquired	(270,248)	(82,875)
Net cash used in investing activities:	(288,868)	(96,430)
Cash flows from financing activities:
Net borrowings (repayments) under inventory financing facilities	3,102	(32,451)
Proceeds from issuance of senior unsecured notes	500,000	0
Payment of debt issuance costs	(8,647)	0
Repurchases of common stock	(200,020)	(217,108)
Repayment of principal on the Convertible Notes	(16,895)	0
Earnout and acquisition related payments	(18,297)	(10,748)
Other payments	(8,486)	(9,614)
Net cash used in financing activities:	(82,523)	(235,628)
Foreign currency exchange effect on cash, cash equivalents and restricted cash balances	2,660	(1,074)
Increase in cash, cash equivalents and restricted cash	49,000	80,610
Cash, cash equivalents and restricted cash at beginning of period	270,785	165,718
Cash, cash equivalents and restricted cash at end of period	319,785	246,328
ABL revolving credit facility
Cash flows from financing activities:
Borrowings on ABL revolving credit facility	3,631,660	3,416,737
Repayments on ABL revolving credit facility	$ (3,964,940)	$ (3,382,444)

Basis of Presentation and Recently Issued Accounting Standards

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation and Recently Issued Accounting Standards


Operating Segment						Geography
North America						United States and Canada
EMEA						Europe, Middle East and Africa
APAC						Asia-Pacific

Recently Issued Accounting Standards

Receivables, Contract Liabilities and Performance Obligations

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Receivables, Contract Liabilities and Performance Obligations

Contract Balances

The following table provides information about receivables and contract liabilities as of September 30, 2024 and December 31, 2023 (in thousands):


	September 30, 2024		December 31, 2023
Current receivables, which are included in “Accounts receivable, net”	$	3,897,481	$	3,568,290
Contract assets, net	85,767		120,518
Long-term accounts receivable	828,465		412,666
Long-term contract assets, net	105,273		132,780
Contract liabilities, which are included in “Accrued expenses and other current liabilities” and “Other liabilities”	114,420		107,217

Significant changes in the gross contract assets balances during the nine months ended September 30, 2024 are as follows (in thousands):


	Contract Assets
Balances at December 31, 2023	$	272,287

Reclassification of beginning contract assets to receivables, as a result of rights to consideration becoming unconditional	(80,520)
Contract assets recognized, net of reclassification to receivables	21,465
Measurement period adjustments to acquired contract assets	(4,838)
Balances at September 30, 2024	$	208,394

including amounts ultimately passed on to the third-party service providers. As of September 30, 2024, contract assets, net of allowances, were $191,040,000.

Gross contract assets by our internal risk ratings as of September 30, 2024 are summarized as follows (in thousands):


	Contract Assets
Low risk	$	38,314
Moderate risk	46,854
High risk	123,226
Total contract assets	$	208,394

Changes in the contract liabilities balances during the nine months ended September 30, 2024 are as follows (in thousands):


	Contract Liabilities
Balances at December 31, 2023	$	107,217
Reclassification of the beginning contract liabilities to revenue, as the result of performance obligations satisfied	(68,993)
Cash received in advance and not recognized as revenue	76,196
Balances at September 30, 2024	$	114,420

During the nine months ended September 30, 2023, the Company recognized revenue of $56,429,000 related to its contract liabilities.

Transaction price allocated to the remaining performance obligations


	Services
Remainder of 2024	$	45,266
2025	78,594
2026	31,948
2027 and thereafter	43,328
Total remaining performance obligations	$	199,136

Net Earnings Per Share

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Net Earnings Per Share


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Numerator:
Net earnings	$	58,208	$	60,247	$	212,679	$	190,701
Denominator:
Weighted average shares used to compute basic EPS	32,216		32,574		32,459		33,127
Dilutive potential common shares due to dilutive RSUs, net of tax effect	300		278		308		275
Dilutive potential common shares due to the Convertible Notes	3,258		2,774		3,269		2,533
Dilutive potential common shares due to the Warrants	2,557		1,577		2,409		1,214
Weighted average shares used to compute diluted EPS	38,331		37,203		38,445		37,149
Net earnings per share:
Basic	$	1.81	$	1.85	$	6.55	$	5.76
Diluted	$	1.52	$	1.62	$	5.53	$	5.13

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

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

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

Debt

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


	September 30, 2024		December 31, 2023
ABL revolving credit facility	$	262,408	$	591,500
Senior unsecured notes due 2032	491,959		—
Convertible senior notes due 2025	332,434		347,988
Finance leases and other financing obligations	15		1,033
Total	1,086,816		940,521
Less: current portion of long-term debt	(332,439)		(348,004)
Long-term debt	$	754,377	$	592,517

Senior Unsecured Notes due 2032

The Senior Notes are subject to certain customary events of default and acceleration clauses. As of September 30, 2024, no such events have occurred.

Convertible Senior Notes due 2025

As of September 30, 2024, the maximum number of shares issuable upon conversion, including the effect of a fundamental change and subject to other conversion rate adjustments, was 6,460,532.

The Convertible Notes are subject to certain customary events of default and acceleration clauses. As of September 30, 2024, no such events have occurred.

The Convertible Notes consist of the following balances reported within the consolidated balance sheets (in thousands):


	September 30, 2024		December 31, 2023
Liability:
Principal	$	333,105	$	350,000
Less: debt issuance costs, net of accumulated amortization	(671)		(2,012)
Net carrying amount	$	332,434	$	347,988

In January 2022, we filed an irrevocable settlement election notice with the note holders to inform them of our election to settle the principal amount of the Convertible Notes in cash.

The remaining life of the debt issuance cost accretion is approximately 0.37 years. The effective interest rate on the principal of the Convertible Notes is 0.75%.

Convertible Note Hedge and Warrant Transaction

In connection and concurrent with the issuance of the Convertible Notes, we entered into the Call Spread Transactions with respect to the Company’s common stock.

Inventory Financing Facilities

As of September 30, 2024, our combined inventory financing facilities had a total maximum capacity of $705,000,000, of which $235,192,000 was outstanding.

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our effective tax rates for the three and nine months ended September 30, 2024 were 22.5% and 24.2%, respectively. Our effective tax rate was higher than the United States federal statutory rate of 21.0% due primarily to state income taxes and higher taxes on earnings in foreign jurisdictions, partially offset by excess tax benefits on the settlement of employee share-based compensation, tax benefits related to research and development activities, and tax benefits related to the revaluation of certain acquisition earnout liabilities. Our effective tax rates for the three and nine months ended September 30, 2023 were 24.7% and 25.4%, respectively. Our effective tax rates were higher than the United States federal statutory rate of 21.0% due primarily to state income taxes and higher taxes on earnings in foreign jurisdictions, partially offset by excess tax benefits on the settlement of employee share-based compensation and tax benefits related to research and development activities. As of September 30, 2024 and December 31, 2023, we had approximately $12,135,000 and $13,947,000, respectively, of unrecognized tax benefits. Of these amounts, approximately $1,570,000 and $1,767,000, respectively, related to accrued interest. In the future, if recognized, the remaining liability associated with uncertain tax positions could affect our effective tax rate. We do not believe there will be any changes to our unrecognized tax benefits over the next 12 months that would have a material effect on our effective tax rate. We are currently under audit in various jurisdictions for tax years 2017 through 2022. 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	9 Months Ended
Share Repurchase Program	Sep. 30, 2024
Equity [Abstract]
Share Repurchase Program	Share Repurchase Program On May 18, 2023, we announced that our Board of Directors authorized the repurchase of up to $300,000,000 of our common stock, including $100,000,000 that remained available from prior authorizations. During the three months ended September 30, 2024, this repurchase authorization was substantially exhausted. On September 11, 2024, we announced that our Board of Directors authorized the repurchase of up to $300,000,000 of our common stock, in addition to any amount that remained from prior authorizations. As of September 30, 2024, approximately $300,000,476 remained available for repurchases under our share repurchase plan. Our share repurchases may be made on the open market, subject to Rule 10b-18 or in privately negotiated transactions, through block trades, through 10b5-1 plans or otherwise, at management’s discretion. The number 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 three months ended September 30, 2024, we repurchased 835,188 shares of our common stock on the open market at a total cost of $165,020,000 (an average price of $197.58 per share). During the three months ended September 30, 2023, we did not repurchase any shares of our common stock. During the nine months ended September 30, 2024, we repurchased 1,022,545 shares of our common stock on the open market at a total cost of $200,020,000 (an average price of $195.61 per share). During the nine months ended September 30, 2023, we repurchased 1,633,620 shares of our common stock on the open market at a total cost of $217,108,000 (an average price of $132.90 per share). All shares repurchased during the three and nine months ended September 30, 2024 and 2023 were retired.

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	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 September 30, 2024, we had approximately $29,525,971 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 September 30, 2024. Accordingly, we have not accrued any liabilities related to such performance bonds in our consolidated financial statements. The Company has a minimum required purchase commitment of approximately $100,467,000 pursuant to an agreement primarily related to cloud services. The total purchase commitment is required to be met or exceeded during a 5-year period, starting October 1, 2023 through September 30, 2028. At September 30, 2024 we had a remaining purchase commitment of $81,446,000. If total purchases do not meet the required commitment by September 30, 2028, the shortfall must be prepaid by the Company and can be used for further purchases through September 30, 2029. The Company has a minimum required purchase commitment of approximately $40,000,000 pursuant to an agreement primarily related to software as a service. The total purchase commitment is required to be met during a 4-year period, starting November 30, 2022 through November 29, 2026. At September 30, 2024 we had a remaining purchase commitment of $26,123,000. The Company has recorded a contingent liability of approximately $21,236,000 payable to a partner to settle various contractual commitments to resell a minimum amount of cloud services to clients. 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 September 30, 2024. Accordingly, we have not accrued any liabilities related to such indemnifications in our consolidated financial statements. We have entered into separate indemnification agreements with certain of our executive officers and with each of our directors. These agreements require us, among other requirements, to indemnify such officers and directors against expenses (including attorneys’ fees), judgments and settlements incurred by such individual in connection with any action arising out of such individual’s status or service as our executive officer or director (subject to exceptions such as where the individual failed to act in good faith or in a manner the individual reasonably believed to be in, or not opposed to, the best interests of the Company) and to advance expenses incurred by such individual with respect to which such individual may be entitled to indemnification by us. There are no pending legal proceedings that involve the indemnification of any of the Company’s directors or officers. Contingencies Related to Third-Party Review From time to time, we are subject to potential claims and assessments from third parties. We are also subject to various governmental, client and partner audits. We continually assess whether or not such claims have merit and warrant accrual. Where appropriate, we accrue estimates of anticipated liabilities in the consolidated financial statements. Such estimates are subject to change and may affect our results of operations and our cash flows. Legal Proceedings From time to time, we are party to various legal proceedings incidental to the business, including preference payment claims asserted in client bankruptcy proceedings, indemnification claims, claims of alleged infringement of patents, trademarks, copyrights and other intellectual property rights, employment claims, claims related to services provided, interruptions, or outages, claims of alleged non-compliance with contract provisions and claims related to alleged violations of laws and regulations. We regularly evaluate the status of the legal proceedings in which we are involved to assess whether a loss is probable or there is a reasonable possibility that a loss, or an additional loss, may have been incurred and determine if accruals are required. If accruals are not required, we further evaluate each legal proceeding to assess whether an estimate of possible loss or range of possible loss can be made. Although litigation is inherently unpredictable, we believe that we have adequate provisions for any probable and estimable losses. It is possible, nevertheless, that our consolidated financial position, results of operations or liquidity could be materially and adversely affected in any particular period by the work required pursuant to any legal proceedings or the resolution of any legal proceedings during such period. Legal expenses related to defense of any legal proceeding or the negotiations, settlements, rulings and advice of outside legal counsel in connection with any legal proceedings are expensed as incurred.

Segment Information

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Segment Information


	Three Months Ended September 30, 2024
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	1,002,000	$	125,013	$	10,505	$	1,137,518
Software	389,176		124,629		22,456		536,261
Services	325,407		62,964		25,736		414,107
	$	1,716,583	$	312,606	$	58,697	$	2,087,886
Major Client Groups
Large Enterprise / Corporate	$	1,138,827	$	252,445	$	25,102	$	1,416,374
Commercial	360,833		8,332		17,529		386,694
Public Sector	216,923		51,829		16,066		284,818
	$	1,716,583	$	312,606	$	58,697	$	2,087,886
Revenue Recognition based on acting as Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	1,575,767	$	287,389	$	49,125	$	1,912,281
Net revenue recognition (Agent)	140,816		25,217		9,572		175,605
	$	1,716,583	$	312,606	$	58,697	$	2,087,886


	Three Months Ended September 30, 2023
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	1,153,722	$	136,567	$	10,866	$	1,301,155
Software	409,139		163,918		15,942		588,999
Services	298,011		53,911		24,210		376,132
	$	1,860,872	$	354,396	$	51,018	$	2,266,286
Major Client Groups
Large Enterprise / Corporate	$	1,311,849	$	270,355	$	21,388	$	1,603,592
Commercial	342,585		4,340		18,867		365,792
Public Sector	206,438		79,701		10,763		296,902
	$	1,860,872	$	354,396	$	51,018	$	2,266,286
Revenue Recognition based on acting as Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	1,738,705	$	330,505	$	42,908	$	2,112,118
Net revenue recognition (Agent)	122,167		23,891		8,110		154,168
	$	1,860,872	$	354,396	$	51,018	$	2,266,286


	Nine Months Ended September 30, 2024
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	3,030,589	$	386,401	$	27,896	$	3,444,886
Software	1,349,625		495,063		74,595		1,919,283
Services	973,548		212,856		78,460		1,264,864
	$	5,353,762	$	1,094,320	$	180,951	$	6,629,033
Major Client Groups
Large Enterprise / Corporate	$	3,695,537	$	832,515	$	71,137	$	4,599,189
Commercial	1,078,062		25,033		49,939		1,153,034
Public Sector	580,163		236,772		59,875		876,810
	$	5,353,762	$	1,094,320	$	180,951	$	6,629,033
Revenue Recognition based on acting as Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	4,924,449	$	997,597	$	149,950	$	6,071,996
Net revenue recognition (Agent)	429,313		96,723		31,001		557,037
	$	5,353,762	$	1,094,320	$	180,951	$	6,629,033


	Nine Months Ended September 30, 2023
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	3,474,488	$	431,677	$	34,108	$	3,940,273
Software	1,221,263		574,539		67,333		1,863,135
Services	896,251		166,910		73,260		1,136,421
	$	5,592,002	$	1,173,126	$	174,701	$	6,939,829
Major Client Groups
Large Enterprise / Corporate	$	3,927,258	$	868,937	$	69,639	$	4,865,834
Commercial	1,074,360		12,739		54,030		1,141,129
Public Sector	590,384		291,450		51,032		932,866
	$	5,592,002	$	1,173,126	$	174,701	$	6,939,829
Revenue Recognition based on acting as Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	5,231,815	$	1,083,933	$	147,422	$	6,463,170
Net revenue recognition (Agent)	360,187		89,193		27,279		476,659
	$	5,592,002	$	1,173,126	$	174,701	$	6,939,829

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


	Three Months Ended September 30, 2024
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	1,391,176	$	249,642	$	32,961	$	1,673,779
Services	325,407		62,964		25,736		414,107
Total net sales	1,716,583		312,606		58,697		2,087,886
Costs of goods sold:
Products	1,237,012		219,573		29,686		1,486,271
Services	131,514		26,652		11,364		169,530
Total costs of goods sold	1,368,526		246,225		41,050		1,655,801
Gross profit	348,057		66,381		17,647		432,085
Operating expenses:
Selling and administrative expenses	259,954		57,808		12,234		329,996
Severance and restructuring expenses	7,242		1,240		61		8,543
Acquisition and integration related expenses	25		668		2		695
Earnings from operations	$	80,836	$	6,665	$	5,350	$	92,851


	Three Months Ended September 30, 2023
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	1,562,861	$	300,485	$	26,808	$	1,890,154
Services	298,011		53,911		24,210		376,132
Total net sales	1,860,872		354,396		51,018		2,266,286
Costs of goods sold:
Products	1,401,472		272,083		23,988		1,697,543
Services	125,543		22,604		11,726		159,873
Total costs of goods sold	1,527,015		294,687		35,714		1,857,416
Gross profit	333,857		59,709		15,304		408,870
Operating expenses:
Selling and administrative expenses	244,154		54,435		11,204		309,793
Severance and restructuring expenses, net	2,650		271		2		2,923
Acquisition and integration related expenses	970		3,322		—		4,292
Earnings from operations	$	86,083	$	1,681	$	4,098	$	91,862


	Nine Months Ended September 30, 2024
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	4,380,214	$	881,464	$	102,491	$	5,364,169
Services	973,548		212,856		78,460		1,264,864
Total net sales	5,353,762		1,094,320		180,951		6,629,033
Costs of goods sold:
Products	3,909,271		791,907		92,947		4,794,125
Services	392,484		81,857		34,189		508,530
Total costs of goods sold	4,301,755		873,764		127,136		5,302,655
Gross profit	1,052,007		220,556		53,815		1,326,378
Operating expenses:
Selling and administrative expenses	771,066		178,377		35,221		984,664
Severance and restructuring expenses	12,783		2,639		216		15,638
Acquisition and integration related expenses	1,486		678		2		2,166
Earnings from operations	$	266,672	$	38,862	$	18,376	$	323,910


	Nine Months Ended September 30, 2023
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	4,695,751	$	1,006,216	$	101,441	$	5,803,408
Services	896,251		166,910		73,260		1,136,421
Total net sales	5,592,002		1,173,126		174,701		6,939,829
Costs of goods sold:
Products	4,206,071		920,956		92,693		5,219,720
Services	393,788		59,526		33,420		486,734
Total costs of goods sold	4,599,859		980,482		126,113		5,706,454
Gross profit	992,143		192,644		48,588		1,233,375
Operating expenses:
Selling and administrative expenses	745,259		159,253		33,525		938,037
Severance and restructuring expenses, net	1,052		1,840		63		2,955
Acquisition and integration related expenses	1,127		3,322		—		4,449
Earnings from operations	$	244,705	$	28,229	$	15,000	$	287,934

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


	September 30, 2024		December 31, 2023
North America	$	6,500,158	$	6,521,591
EMEA	1,358,765		1,058,734
APAC	186,013		171,820
Corporate assets and intercompany eliminations, net	(758,493)		(1,465,795)
Total assets	$	7,286,443	$	6,286,350

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 September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Depreciation and amortization of property and equipment:
North America	$	6,160	$	6,064	$	18,403	$	17,207
EMEA	917		726		2,574		1,925
APAC	127		112		396		323
	7,204		6,902		21,373		19,455
Amortization of intangible assets:
North America	16,823		7,718		45,557		23,269
EMEA	1,805		822		5,135		1,642
APAC	74		108		292		332
	18,702		8,648		50,984		25,243
Total	$	25,906	$	15,550	$	72,357	$	44,698

Acquisition

9 Months Ended

Sep. 30, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Acquisition

Infocenter

SADA

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


Total purchase price, net of cash and cash equivalents acquired			$	426,050
Fair value of net assets acquired:
Current assets	$	348,043
Identifiable intangible assets - see description below	158,100
Property and equipment	2,266
Other assets	244,342
Current liabilities	(332,010)
Long-term liabilities, including long-term accounts payable	(115,171)
Total fair value of net assets acquired			305,570
Excess purchase price over fair value of net assets acquired ("goodwill")			$	120,480

The identifiable intangibles resulting from the acquisition are amortized using the straight-line method over the following estimated useful lives:


Intangible Assets						Estimated Economic Life
Customer relationships						10 Years
Trade name						3 Years
Non-compete agreements						3-5 Years

Amdaris

Assets Held for Sale	9 Months Ended
Assets Held for Sale	Sep. 30, 2024
Property, Plant and Equipment Assets Held-for-Sale Disclosure [Abstract]
Assets Held for Sale	Assets Held for Sale During the nine months ended September 30, 2023, we completed the sale of our properties in Montreal, Canada and Sheffield, United Kingdom for total net proceeds of approximately $15,476,000. We recognized a net gain on sale of approximately $6,813,000, reported in severance and restructuring expenses, net.

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net earnings	$ 58,208	$ 60,247	$ 212,679	$ 190,701

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Basis of Presentation and Recently Issued Accounting Standards (Policies)	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recently Issued Accounting Standards	Recently Issued Accounting Standards In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures", which requires public entities to disclose information about their reportable segments' significant expenses on an interim and annual basis. The amendments aim to improve interim disclosure requirements, clarify situations where an entity can reveal multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and include other disclosure requirements. The main objective of the amendments is to assist investors in understanding the entity's overall performance and evaluate potential future cash flows. The guidance is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024 with early adoption being permitted. We did not early adopt this guidance. The updated guidance is not expected to have a material effect on the Company's consolidated financial statements or disclosures. 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, 2023 that affect or may affect our current financial statements.

Basis of Presentation and Recently Issued Accounting Standards (Tables)

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule Of Operating Segments By Geographic Location

Our company is organized in the following three operating segments, which are primarily defined by their related geographies:


Operating Segment						Geography
North America						United States and Canada
EMEA						Europe, Middle East and Africa
APAC						Asia-Pacific

Receivables, Contract Liabilities and Performance Obligations (Tables)

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Summary of Information about Receivables and Contract Liabilities

The following table provides information about receivables and contract liabilities as of September 30, 2024 and December 31, 2023 (in thousands):


	September 30, 2024		December 31, 2023
Current receivables, which are included in “Accounts receivable, net”	$	3,897,481	$	3,568,290
Contract assets, net	85,767		120,518
Long-term accounts receivable	828,465		412,666
Long-term contract assets, net	105,273		132,780
Contract liabilities, which are included in “Accrued expenses and other current liabilities” and “Other liabilities”	114,420		107,217

Summary of Changes in Gross Contract Liabilities from Contract with Customers

Significant changes in the gross contract assets balances during the nine months ended September 30, 2024 are as follows (in thousands):


	Contract Assets
Balances at December 31, 2023	$	272,287

Reclassification of beginning contract assets to receivables, as a result of rights to consideration becoming unconditional	(80,520)
Contract assets recognized, net of reclassification to receivables	21,465
Measurement period adjustments to acquired contract assets	(4,838)
Balances at September 30, 2024	$	208,394

including amounts ultimately passed on to the third-party service providers. As of September 30, 2024, contract assets, net of allowances, were $191,040,000.

Gross contract assets by our internal risk ratings as of September 30, 2024 are summarized as follows (in thousands):


	Contract Assets
Low risk	$	38,314
Moderate risk	46,854
High risk	123,226
Total contract assets	$	208,394

Changes in the contract liabilities balances during the nine months ended September 30, 2024 are as follows (in thousands):


	Contract Liabilities
Balances at December 31, 2023	$	107,217
Reclassification of the beginning contract liabilities to revenue, as the result of performance obligations satisfied	(68,993)
Cash received in advance and not recognized as revenue	76,196
Balances at September 30, 2024	$	114,420

Summary of Estimated Net Sales Related to Performance Obligation


	Services
Remainder of 2024	$	45,266
2025	78,594
2026	31,948
2027 and thereafter	43,328
Total remaining performance obligations	$	199,136

Net Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Summary of 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 September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Numerator:
Net earnings	$	58,208	$	60,247	$	212,679	$	190,701
Denominator:
Weighted average shares used to compute basic EPS	32,216		32,574		32,459		33,127
Dilutive potential common shares due to dilutive RSUs, net of tax effect	300		278		308		275
Dilutive potential common shares due to the Convertible Notes	3,258		2,774		3,269		2,533
Dilutive potential common shares due to the Warrants	2,557		1,577		2,409		1,214
Weighted average shares used to compute diluted EPS	38,331		37,203		38,445		37,149
Net earnings per share:
Basic	$	1.81	$	1.85	$	6.55	$	5.76
Diluted	$	1.52	$	1.62	$	5.53	$	5.13

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

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Summary of Long-Term Debt

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


	September 30, 2024		December 31, 2023
ABL revolving credit facility	$	262,408	$	591,500
Senior unsecured notes due 2032	491,959		—
Convertible senior notes due 2025	332,434		347,988
Finance leases and other financing obligations	15		1,033
Total	1,086,816		940,521
Less: current portion of long-term debt	(332,439)		(348,004)
Long-term debt	$	754,377	$	592,517

Summary of Convertible Senior Notes Balances

The Convertible Notes consist of the following balances reported within the consolidated balance sheets (in thousands):


	September 30, 2024		December 31, 2023
Liability:
Principal	$	333,105	$	350,000
Less: debt issuance costs, net of accumulated amortization	(671)		(2,012)
Net carrying amount	$	332,434	$	347,988

Segment Information (Tables)

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Summary of Revenue Disaggregated by Reportable Operating Segments


	Three Months Ended September 30, 2024
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	1,002,000	$	125,013	$	10,505	$	1,137,518
Software	389,176		124,629		22,456		536,261
Services	325,407		62,964		25,736		414,107
	$	1,716,583	$	312,606	$	58,697	$	2,087,886
Major Client Groups
Large Enterprise / Corporate	$	1,138,827	$	252,445	$	25,102	$	1,416,374
Commercial	360,833		8,332		17,529		386,694
Public Sector	216,923		51,829		16,066		284,818
	$	1,716,583	$	312,606	$	58,697	$	2,087,886
Revenue Recognition based on acting as Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	1,575,767	$	287,389	$	49,125	$	1,912,281
Net revenue recognition (Agent)	140,816		25,217		9,572		175,605
	$	1,716,583	$	312,606	$	58,697	$	2,087,886


	Three Months Ended September 30, 2023
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	1,153,722	$	136,567	$	10,866	$	1,301,155
Software	409,139		163,918		15,942		588,999
Services	298,011		53,911		24,210		376,132
	$	1,860,872	$	354,396	$	51,018	$	2,266,286
Major Client Groups
Large Enterprise / Corporate	$	1,311,849	$	270,355	$	21,388	$	1,603,592
Commercial	342,585		4,340		18,867		365,792
Public Sector	206,438		79,701		10,763		296,902
	$	1,860,872	$	354,396	$	51,018	$	2,266,286
Revenue Recognition based on acting as Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	1,738,705	$	330,505	$	42,908	$	2,112,118
Net revenue recognition (Agent)	122,167		23,891		8,110		154,168
	$	1,860,872	$	354,396	$	51,018	$	2,266,286


	Nine Months Ended September 30, 2024
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	3,030,589	$	386,401	$	27,896	$	3,444,886
Software	1,349,625		495,063		74,595		1,919,283
Services	973,548		212,856		78,460		1,264,864
	$	5,353,762	$	1,094,320	$	180,951	$	6,629,033
Major Client Groups
Large Enterprise / Corporate	$	3,695,537	$	832,515	$	71,137	$	4,599,189
Commercial	1,078,062		25,033		49,939		1,153,034
Public Sector	580,163		236,772		59,875		876,810
	$	5,353,762	$	1,094,320	$	180,951	$	6,629,033
Revenue Recognition based on acting as Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	4,924,449	$	997,597	$	149,950	$	6,071,996
Net revenue recognition (Agent)	429,313		96,723		31,001		557,037
	$	5,353,762	$	1,094,320	$	180,951	$	6,629,033


	Nine Months Ended September 30, 2023
	North America		EMEA		APAC		Consolidated
Major Offerings
Hardware	$	3,474,488	$	431,677	$	34,108	$	3,940,273
Software	1,221,263		574,539		67,333		1,863,135
Services	896,251		166,910		73,260		1,136,421
	$	5,592,002	$	1,173,126	$	174,701	$	6,939,829
Major Client Groups
Large Enterprise / Corporate	$	3,927,258	$	868,937	$	69,639	$	4,865,834
Commercial	1,074,360		12,739		54,030		1,141,129
Public Sector	590,384		291,450		51,032		932,866
	$	5,592,002	$	1,173,126	$	174,701	$	6,939,829
Revenue Recognition based on acting as Principal or Agent in the Transaction
Gross revenue recognition (Principal)	$	5,231,815	$	1,083,933	$	147,422	$	6,463,170
Net revenue recognition (Agent)	360,187		89,193		27,279		476,659
	$	5,592,002	$	1,173,126	$	174,701	$	6,939,829

Summary of 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 September 30, 2024
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	1,391,176	$	249,642	$	32,961	$	1,673,779
Services	325,407		62,964		25,736		414,107
Total net sales	1,716,583		312,606		58,697		2,087,886
Costs of goods sold:
Products	1,237,012		219,573		29,686		1,486,271
Services	131,514		26,652		11,364		169,530
Total costs of goods sold	1,368,526		246,225		41,050		1,655,801
Gross profit	348,057		66,381		17,647		432,085
Operating expenses:
Selling and administrative expenses	259,954		57,808		12,234		329,996
Severance and restructuring expenses	7,242		1,240		61		8,543
Acquisition and integration related expenses	25		668		2		695
Earnings from operations	$	80,836	$	6,665	$	5,350	$	92,851


	Three Months Ended September 30, 2023
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	1,562,861	$	300,485	$	26,808	$	1,890,154
Services	298,011		53,911		24,210		376,132
Total net sales	1,860,872		354,396		51,018		2,266,286
Costs of goods sold:
Products	1,401,472		272,083		23,988		1,697,543
Services	125,543		22,604		11,726		159,873
Total costs of goods sold	1,527,015		294,687		35,714		1,857,416
Gross profit	333,857		59,709		15,304		408,870
Operating expenses:
Selling and administrative expenses	244,154		54,435		11,204		309,793
Severance and restructuring expenses, net	2,650		271		2		2,923
Acquisition and integration related expenses	970		3,322		—		4,292
Earnings from operations	$	86,083	$	1,681	$	4,098	$	91,862


	Nine Months Ended September 30, 2024
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	4,380,214	$	881,464	$	102,491	$	5,364,169
Services	973,548		212,856		78,460		1,264,864
Total net sales	5,353,762		1,094,320		180,951		6,629,033
Costs of goods sold:
Products	3,909,271		791,907		92,947		4,794,125
Services	392,484		81,857		34,189		508,530
Total costs of goods sold	4,301,755		873,764		127,136		5,302,655
Gross profit	1,052,007		220,556		53,815		1,326,378
Operating expenses:
Selling and administrative expenses	771,066		178,377		35,221		984,664
Severance and restructuring expenses	12,783		2,639		216		15,638
Acquisition and integration related expenses	1,486		678		2		2,166
Earnings from operations	$	266,672	$	38,862	$	18,376	$	323,910


	Nine Months Ended September 30, 2023
	North America		EMEA		APAC		Consolidated
Net sales:
Products	$	4,695,751	$	1,006,216	$	101,441	$	5,803,408
Services	896,251		166,910		73,260		1,136,421
Total net sales	5,592,002		1,173,126		174,701		6,939,829
Costs of goods sold:
Products	4,206,071		920,956		92,693		5,219,720
Services	393,788		59,526		33,420		486,734
Total costs of goods sold	4,599,859		980,482		126,113		5,706,454
Gross profit	992,143		192,644		48,588		1,233,375
Operating expenses:
Selling and administrative expenses	745,259		159,253		33,525		938,037
Severance and restructuring expenses, net	1,052		1,840		63		2,955
Acquisition and integration related expenses	1,127		3,322		—		4,449
Earnings from operations	$	244,705	$	28,229	$	15,000	$	287,934

Summary of Total Assets by Reportable Operating Segment

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


	September 30, 2024		December 31, 2023
North America	$	6,500,158	$	6,521,591
EMEA	1,358,765		1,058,734
APAC	186,013		171,820
Corporate assets and intercompany eliminations, net	(758,493)		(1,465,795)
Total assets	$	7,286,443	$	6,286,350

Summary of 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 September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Depreciation and amortization of property and equipment:
North America	$	6,160	$	6,064	$	18,403	$	17,207
EMEA	917		726		2,574		1,925
APAC	127		112		396		323
	7,204		6,902		21,373		19,455
Amortization of intangible assets:
North America	16,823		7,718		45,557		23,269
EMEA	1,805		822		5,135		1,642
APAC	74		108		292		332
	18,702		8,648		50,984		25,243
Total	$	25,906	$	15,550	$	72,357	$	44,698

Acquisition (Tables)

9 Months Ended

Sep. 30, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

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

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


Total purchase price, net of cash and cash equivalents acquired			$	426,050
Fair value of net assets acquired:
Current assets	$	348,043
Identifiable intangible assets - see description below	158,100
Property and equipment	2,266
Other assets	244,342
Current liabilities	(332,010)
Long-term liabilities, including long-term accounts payable	(115,171)
Total fair value of net assets acquired			305,570
Excess purchase price over fair value of net assets acquired ("goodwill")			$	120,480

Summary of Intangible Assets Acquired as Part of Business Combination

The identifiable intangibles resulting from the acquisition are amortized using the straight-line method over the following estimated useful lives:


Intangible Assets						Estimated Economic Life
Customer relationships						10 Years
Trade name						3 Years
Non-compete agreements						3-5 Years

Basis of Presentation and Recently Issued Accounting Standards (Details)	9 Months Ended
	Sep. 30, 2024 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments	3

Receivables, Contract Liabilities and Performance Obligations - Summary of Information about Receivables and Contract Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Disaggregation of Revenue [Line Items]
Current receivables, which are included in “Accounts receivable, net”	$ 3,897,481	$ 3,568,290
Contract assets, net	85,767	120,518
Long-term accounts receivable	828,465	412,666
Long-term contract assets, net	105,273	132,780
Contract liabilities, which are included in “Accrued expenses and other current liabilities” and “Other liabilities”	114,420	107,217
Accounts Receivable, Net
Disaggregation of Revenue [Line Items]
Current receivables, which are included in “Accounts receivable, net”	3,897,481	3,568,290
Accrued Expenses and Other Current Liabilities and Other Liabilities
Disaggregation of Revenue [Line Items]
Contract liabilities, which are included in “Accrued expenses and other current liabilities” and “Other liabilities”	$ 114,420	$ 107,217

Receivables, Contract Liabilities and Performance Obligations - Summary of Changes in Gross Contract Liabilities from Contract with Customers (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Changes in Contract Assets [Roll Forward]
Beginning balance, contract assets	$ 272,287
Reclassification of beginning contract assets to receivables, as a result of rights to consideration becoming unconditional	(80,520)
Contract assets recognized, net of reclassification to receivables	21,465
Measurement period adjustments to acquired contract assets	(4,838)
Ending balance, contract assets	208,394
Changes in Contract Liabilities [Roll Forward]
Beginning balance, contract liabilities	107,217
Reclassification of the beginning contract liabilities to revenue, as the result of performance obligations satisfied	(68,993)
Cash received in advance and not recognized as revenue	76,196
Ending balance, contract liabilities	$ 114,420

Receivables, Contract Liabilities and Performance Obligations - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Contract assets	$ 191,040
Contract with customer, liability, revenue recognized		$ 56,429,000
Time and material contracts expected duration	27 months

Receivables, Contract Liabilities and Performance Obligations - Gross Contract Assets by Internal Risk Ratings (Detail) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Disaggregation of Revenue [Line Items]
Contract assets, net of allowances	$ 208,394	$ 272,287
Low risk
Disaggregation of Revenue [Line Items]
Contract assets, net of allowances	38,314
Moderate risk
Disaggregation of Revenue [Line Items]
Contract assets, net of allowances	46,854
High risk
Disaggregation of Revenue [Line Items]
Contract assets, net of allowances	$ 123,226

Receivables, Contract Liabilities and Performance Obligations - Summary of Estimated Net Sales Related to Performance Obligation (Detail) - Services $ in Thousands	Sep. 30, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligations	$ 199,136
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligations	$ 45,266
Remaining performance obligation, expected timing of satisfaction period	3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligations	$ 78,594
Remaining performance obligation, expected timing of satisfaction period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligations	$ 31,948
Remaining performance obligation, expected timing of satisfaction period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2027-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligations	$ 43,328
Remaining performance obligation, expected timing of satisfaction period	1 year

Net Earnings Per Share - Reconciliation of Denominators of Basic and Diluted EPS Calculations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Numerator:
Net earnings	$ 58,208	$ 60,247	$ 212,679	$ 190,701
Denominator:
Weighted average shares used to compute basic EPS (in shares)	32,216	32,574	32,459	33,127
Dilutive potential common shares due to dilutive RSUs, net of tax effect (in shares)	300	278	308	275
Dilutive potential common shares due to the Warrants (in shares)	2,557	1,577	2,409	1,214
Weighted average shares used to compute diluted EPS (in shares)	38,331	37,203	38,445	37,149
Net earnings per share:
Basic (in usd per share)	$ 1.81	$ 1.85	$ 6.55	$ 5.76
Diluted (in usd per share)	$ 1.52	$ 1.62	$ 5.53	$ 5.13
Notes
Denominator:
Dilutive potential common shares due to the Convertible Notes (in shares)	3,258	2,774	3,269	2,533

Net Earnings Per Share - Additional Information (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Restricted Stock Units (RSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
RSUs excluded from the diluted EPS calculations (in shares)	500	65,000	10,000	72,000

Debt, Inventory Financing Facilities, Finance Leases and Other Financing Obligations - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Finance leases and other financing obligations	$ 15	$ 1,033
Total	1,086,816	940,521
Less: current portion of long-term debt	(332,439)	(348,004)
Long-term debt	754,377	592,517
Senior unsecured notes due 2032
Debt Instrument [Line Items]
Convertible senior notes due 2025	491,959	0
Convertible senior notes due 2025
Debt Instrument [Line Items]
Convertible senior notes due 2025	332,434	347,988
ABL revolving credit facility
Debt Instrument [Line Items]
ABL revolving credit facility	$ 262,408	$ 591,500

Debt, Inventory Financing Facilities, Finance Leases and Other Financing Obligations - Additional Information (Detail) - USD ($)		1 Months Ended	9 Months Ended
	May 15, 2024	Sep. 30, 2023	Sep. 30, 2024	May 20, 2024	May 14, 2024	Dec. 31, 2023	Aug. 31, 2019
Debt Instrument [Line Items]
Accounts payable—inventory financing facilities			$ 235,192,000			$ 231,850,000
Senior unsecured notes due 2032
Debt Instrument [Line Items]
Aggregate principal amount of notes, issued amount				$ 500,000,000
Notes, interest rate (as a percent)				6.625%
Repurchase price as percentage of principal amount	106.625%
Percentage of last reported sale price to conversion price on each applicable trading day	40.00%
Debt instrument, redemption price, percentage of principal amount redeemed			100.00%
Senior unsecured notes due 2032 \| Maximum
Debt Instrument [Line Items]
Repurchase price as percentage of principal amount			101.00%
Convertible senior notes due 2025
Debt Instrument [Line Items]
Aggregate principal amount of notes, issued amount			$ 333,105,000			350,000,000	$ 350,000,000
Notes, interest rate (as a percent)							0.75%
Repurchase price as percentage of principal amount			100.00%
Debt conversion, initial conversion rate (in shares)			14.6376
Principal amount per note used in conversion rate			$ 1,000
Conversion price per share (in usd per share)			$ 68.32
Shares issuable upon conversion of debt (in shares)			6,460,532
Debt conversion amount		$ 16,895,000
Notes, remaining accretion period of debt discount and issuance cost			4 months 13 days
Notes, effective interest rate			0.75%
Conversion price per share (in usd per share)			$ 68.32
Payments to convertible note hedge transaction			$ 66,325,000
Warrants sold to purchase of additional common stock (in shares)			5,123,160
Warrant price per share to purchase additional common stock (in usd per share)			$ 103.12
Proceeds from sale of warrants			$ 34,440,000
Convertible senior notes due 2025 \| Maximum
Debt Instrument [Line Items]
Option to purchase common stock (in shares)			5,123,160
ABL revolving credit facility
Debt Instrument [Line Items]
ABL revolving credit facility			$ 262,408,000			$ 591,500,000
ABL revolving credit facility \| Maximum
Debt Instrument [Line Items]
Credit facility, increase in amount available for borrowing					$ 750,000,000
ABL revolving credit facility \| Third Amendment to Credit Agreement
Debt Instrument [Line Items]
Credit facility, borrowing capacity			1,800,000,000		1,800,000,000
ABL revolving credit facility \| Foreign Currency Borrowings
Debt Instrument [Line Items]
Credit facility, borrowing capacity					$ 350,000,000
ABL revolving credit facility \| First-In, Last-Out Revolving Facility
Debt Instrument [Line Items]
Credit facility, borrowing capacity			100,000,000
Unsecured Inventory Financing Facility \| MUFG Bank Ltd
Debt Instrument [Line Items]
Inventory financing facility maximum borrowing capacity			$ 280,000,000,000
Inventory financing facility rate if vendor terms not met equal prime plus			2.00%
Unsecured Inventory Financing Facility \| PNC Facility
Debt Instrument [Line Items]
Inventory financing facility maximum borrowing capacity			$ 375,000,000
Inventory financing facility rate if vendor terms not met equal LIBOR plus			0.25%
Unsecured Inventory Financing Facility \| Canada Facility
Debt Instrument [Line Items]
Inventory financing facility maximum borrowing capacity			$ 25,000,000
Inventory financing facility rate if vendor terms not met equal LIBOR plus			4.50%
Unsecured Inventory Financing Facility \| EMEA Facilities
Debt Instrument [Line Items]
Inventory financing facility maximum borrowing capacity			$ 50,000,000
Inventory Financing Facility
Debt Instrument [Line Items]
Inventory financing facility maximum borrowing capacity			705,000,000
Accounts payable—inventory financing facilities			$ 235,192,000

Debt, Inventory Financing Facilities, Finance Leases and Other Financing Obligations - Summary of Convertible Senior Notes Balances (Detail) - Convertible senior notes due 2025 - USD ($)	Sep. 30, 2024	Dec. 31, 2023	Aug. 31, 2019
Liability:
Principal	$ 333,105,000	$ 350,000,000	$ 350,000,000
Less: debt issuance costs, net of accumulated amortization	(671,000)	(2,012,000)
Net carrying amount	$ 332,434,000	$ 347,988,000

Income Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Detail) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Effective tax rate	22.50%	24.70%	24.20%	25.40%
Unrecognized tax benefits	$ 12,135		$ 12,135		$ 13,947
Unrecognized tax benefits, interest on income taxes accrued	$ 1,570		$ 1,570		$ 1,767

Share Repurchase Program (Detail) - USD ($)	3 Months Ended		9 Months Ended
Share Repurchase Program (Detail) - USD ($)	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	May 18, 2023
Equity, Class of Treasury Stock [Line Items]
Common stock repurchase program, authorized remaining amount	$ 300,000,476		$ 300,000,476
Common stock repurchase program, number of shares repurchased (in shares)	835,188	0	1,022,545	1,633,620
Repurchase program, approximate dollar value of shares purchased	$ 165,020,000		$ 200,020,000	$ 217,108,000
Repurchase program, average price paid per share (in usd per share)	$ 197.58		$ 195.61	$ 132.90
May 18 2023 Stock Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Common stock repurchase program, authorized amount					$ 300,000,000
September 19, 2022 Stock Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Common stock repurchase program, authorized remaining amount					$ 100,000,000

Commitments and Contingencies (Detail)	9 Months Ended
Commitments and Contingencies (Detail)	Sep. 30, 2024 USD ($)
Commitments And Contingencies [Line Items]
Minimum required purchase commitment amount	$ 100,467,000
Purchase commitment term	5 years
Remaining amount	$ 81,446,000
Minimum
Commitments And Contingencies [Line Items]
Number of months of salary paid as severance	3 months
Maximum
Commitments And Contingencies [Line Items]
Number of months of salary paid as severance	24 months
Software as a Service
Commitments And Contingencies [Line Items]
Minimum required purchase commitment amount	$ 40,000,000
Purchase commitment term	4 years
Remaining amount	$ 26,123,000
Contingent liability	21,236,000
Surety Bond
Commitments And Contingencies [Line Items]
Performance bonds outstanding	$ 29,525,971

Segment Information - Additional Information (Detail)	9 Months Ended
Segment Information - Additional Information (Detail)	Sep. 30, 2024 segment
Segment Reporting [Abstract]
Number of operating segments	3

Segment Information - Summary of Revenue Disaggregated by Reportable Operating Segments (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Segment Reporting Information [Line Items]
Total net sales	$ 2,087,886	$ 2,266,286	$ 6,629,033	$ 6,939,829
Gross revenue recognition (Principal)
Segment Reporting Information [Line Items]
Total net sales	1,912,281	2,112,118	6,071,996	6,463,170
Net revenue recognition (Agent)
Segment Reporting Information [Line Items]
Total net sales	175,605	154,168	557,037	476,659
North America
Segment Reporting Information [Line Items]
Total net sales	1,716,583	1,860,872	5,353,762	5,592,002
North America \| Gross revenue recognition (Principal)
Segment Reporting Information [Line Items]
Total net sales	1,575,767	1,738,705	4,924,449	5,231,815
North America \| Net revenue recognition (Agent)
Segment Reporting Information [Line Items]
Total net sales	140,816	122,167	429,313	360,187
EMEA
Segment Reporting Information [Line Items]
Total net sales	312,606	354,396	1,094,320	1,173,126
EMEA \| Gross revenue recognition (Principal)
Segment Reporting Information [Line Items]
Total net sales	287,389	330,505	997,597	1,083,933
EMEA \| Net revenue recognition (Agent)
Segment Reporting Information [Line Items]
Total net sales	25,217	23,891	96,723	89,193
APAC
Segment Reporting Information [Line Items]
Total net sales	58,697	51,018	180,951	174,701
APAC \| Gross revenue recognition (Principal)
Segment Reporting Information [Line Items]
Total net sales	49,125	42,908	149,950	147,422
APAC \| Net revenue recognition (Agent)
Segment Reporting Information [Line Items]
Total net sales	9,572	8,110	31,001	27,279
Large Enterprise / Corporate
Segment Reporting Information [Line Items]
Total net sales	1,416,374	1,603,592	4,599,189	4,865,834
Large Enterprise / Corporate \| North America
Segment Reporting Information [Line Items]
Total net sales	1,138,827	1,311,849	3,695,537	3,927,258
Large Enterprise / Corporate \| EMEA
Segment Reporting Information [Line Items]
Total net sales	252,445	270,355	832,515	868,937
Large Enterprise / Corporate \| APAC
Segment Reporting Information [Line Items]
Total net sales	25,102	21,388	71,137	69,639
Commercial
Segment Reporting Information [Line Items]
Total net sales	386,694	365,792	1,153,034	1,141,129
Commercial \| North America
Segment Reporting Information [Line Items]
Total net sales	360,833	342,585	1,078,062	1,074,360
Commercial \| EMEA
Segment Reporting Information [Line Items]
Total net sales	8,332	4,340	25,033	12,739
Commercial \| APAC
Segment Reporting Information [Line Items]
Total net sales	17,529	18,867	49,939	54,030
Public Sector
Segment Reporting Information [Line Items]
Total net sales	284,818	296,902	876,810	932,866
Public Sector \| North America
Segment Reporting Information [Line Items]
Total net sales	216,923	206,438	580,163	590,384
Public Sector \| EMEA
Segment Reporting Information [Line Items]
Total net sales	51,829	79,701	236,772	291,450
Public Sector \| APAC
Segment Reporting Information [Line Items]
Total net sales	16,066	10,763	59,875	51,032
Hardware
Segment Reporting Information [Line Items]
Total net sales	1,137,518	1,301,155	3,444,886	3,940,273
Hardware \| North America
Segment Reporting Information [Line Items]
Total net sales	1,002,000	1,153,722	3,030,589	3,474,488
Hardware \| EMEA
Segment Reporting Information [Line Items]
Total net sales	125,013	136,567	386,401	431,677
Hardware \| APAC
Segment Reporting Information [Line Items]
Total net sales	10,505	10,866	27,896	34,108
Software
Segment Reporting Information [Line Items]
Total net sales	536,261	588,999	1,919,283	1,863,135
Software \| North America
Segment Reporting Information [Line Items]
Total net sales	389,176	409,139	1,349,625	1,221,263
Software \| EMEA
Segment Reporting Information [Line Items]
Total net sales	124,629	163,918	495,063	574,539
Software \| APAC
Segment Reporting Information [Line Items]
Total net sales	22,456	15,942	74,595	67,333
Services
Segment Reporting Information [Line Items]
Total net sales	414,107	376,132	1,264,864	1,136,421
Services \| North America
Segment Reporting Information [Line Items]
Total net sales	325,407	298,011	973,548	896,251
Services \| EMEA
Segment Reporting Information [Line Items]
Total net sales	62,964	53,911	212,856	166,910
Services \| APAC
Segment Reporting Information [Line Items]
Total net sales	$ 25,736	$ 24,210	$ 78,460	$ 73,260

Segment Information - Financial Information about Reportable Operating Segments (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Segment Reporting Information [Line Items]
Total net sales	$ 2,087,886	$ 2,266,286	$ 6,629,033	$ 6,939,829
Total costs of goods sold	1,655,801	1,857,416	5,302,655	5,706,454
Gross profit	432,085	408,870	1,326,378	1,233,375
Operating expenses:
Selling and administrative expenses	329,996	309,793	984,664	938,037
Severance and restructuring expenses, net	8,543	2,923	15,638	2,955
Acquisition and integration related expenses	695	4,292	2,166	4,449
Earnings from operations	92,851	91,862	323,910	287,934
Products
Segment Reporting Information [Line Items]
Total net sales	1,673,779	1,890,154	5,364,169	5,803,408
Total costs of goods sold	1,486,271	1,697,543	4,794,125	5,219,720
Gross profit	187,508	192,611	570,044	583,688
Services
Segment Reporting Information [Line Items]
Total net sales	414,107	376,132	1,264,864	1,136,421
Total costs of goods sold	169,530	159,873	508,530	486,734
Gross profit	244,577	216,259	756,334	649,687
North America
Segment Reporting Information [Line Items]
Total net sales	1,716,583	1,860,872	5,353,762	5,592,002
Total costs of goods sold	1,368,526	1,527,015	4,301,755	4,599,859
Gross profit	348,057	333,857	1,052,007	992,143
Operating expenses:
Selling and administrative expenses	259,954	244,154	771,066	745,259
Severance and restructuring expenses, net	7,242	2,650	12,783	1,052
Acquisition and integration related expenses	25	970	1,486	1,127
Earnings from operations	80,836	86,083	266,672	244,705
North America \| Products
Segment Reporting Information [Line Items]
Total net sales	1,391,176	1,562,861	4,380,214	4,695,751
Total costs of goods sold	1,237,012	1,401,472	3,909,271	4,206,071
North America \| Services
Segment Reporting Information [Line Items]
Total net sales	325,407	298,011	973,548	896,251
Total costs of goods sold	131,514	125,543	392,484	393,788
EMEA
Segment Reporting Information [Line Items]
Total net sales	312,606	354,396	1,094,320	1,173,126
Total costs of goods sold	246,225	294,687	873,764	980,482
Gross profit	66,381	59,709	220,556	192,644
Operating expenses:
Selling and administrative expenses	57,808	54,435	178,377	159,253
Severance and restructuring expenses, net	1,240	271	2,639	1,840
Acquisition and integration related expenses	668	3,322	678	3,322
Earnings from operations	6,665	1,681	38,862	28,229
EMEA \| Products
Segment Reporting Information [Line Items]
Total net sales	249,642	300,485	881,464	1,006,216
Total costs of goods sold	219,573	272,083	791,907	920,956
EMEA \| Services
Segment Reporting Information [Line Items]
Total net sales	62,964	53,911	212,856	166,910
Total costs of goods sold	26,652	22,604	81,857	59,526
APAC
Segment Reporting Information [Line Items]
Total net sales	58,697	51,018	180,951	174,701
Total costs of goods sold	41,050	35,714	127,136	126,113
Gross profit	17,647	15,304	53,815	48,588
Operating expenses:
Selling and administrative expenses	12,234	11,204	35,221	33,525
Severance and restructuring expenses, net	61	2	216	63
Acquisition and integration related expenses	2	0	2	0
Earnings from operations	5,350	4,098	18,376	15,000
APAC \| Products
Segment Reporting Information [Line Items]
Total net sales	32,961	26,808	102,491	101,441
Total costs of goods sold	29,686	23,988	92,947	92,693
APAC \| Services
Segment Reporting Information [Line Items]
Total net sales	25,736	24,210	78,460	73,260
Total costs of goods sold	$ 11,364	$ 11,726	$ 34,189	$ 33,420

Segment Information - Summary of Total Assets by Reportable Operating Segment (Detail) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 7,286,443	$ 6,286,350
Operating Segments \| North America
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	6,500,158	6,521,591
Operating Segments \| EMEA
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	1,358,765	1,058,734
Operating Segments \| APAC
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	186,013	171,820
Intersegment Eliminations
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ (758,493)	$ (1,465,795)

Segment Information - Pre-Tax Depreciation and Amortization by Operating Segment (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Segment Reporting Information [Line Items]
Depreciation and amortization of property and equipment	$ 7,204	$ 6,902	$ 21,373	$ 19,455
Amortization of intangible assets	18,702	8,648	50,984	25,243
Depreciation and amortization, total	25,906	15,550	72,357	44,698
North America
Segment Reporting Information [Line Items]
Depreciation and amortization of property and equipment	6,160	6,064	18,403	17,207
Amortization of intangible assets	16,823	7,718	45,557	23,269
EMEA
Segment Reporting Information [Line Items]
Depreciation and amortization of property and equipment	917	726	2,574	1,925
Amortization of intangible assets	1,805	822	5,135	1,642
APAC
Segment Reporting Information [Line Items]
Depreciation and amortization of property and equipment	127	112	396	323
Amortization of intangible assets	$ 74	$ 108	$ 292	$ 332

Acquisition - Additional Information (Detail) $ in Thousands				1 Months Ended	3 Months Ended	9 Months Ended
	May 01, 2024 USD ($)	Dec. 01, 2023 USD ($) teammate office	Aug. 17, 2023 USD ($)	Mar. 31, 2024 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
Business Acquisition [Line Items]
Goodwill					$ 888,808	$ 888,808	$ 684,345
InfoCenter.io
Business Acquisition [Line Items]
Acquisition, percentage of issued and outstanding shares acquired	100.00%
Cash paid to acquire business	$ 265,000
Cash and cash equivalents acquired from acquisition	5,103
Cash purchase price	269,477
Adjustment to consideration transferred	626
Business combination, contingent consideration, liability	24,200
Seller incentive opportunity	106,250
Estimated fair value of net assets acquired	97,362
Identifiable intangible assets - see description below	$ 123,900
Economic life (in years)	10 years
Deferred tax liability	$ 31,832
Goodwill	$ 191,838
Decrease in fair value of earnout payments					4,000	4,000
SADA Systems, LLC
Business Acquisition [Line Items]
Acquisition, percentage of issued and outstanding shares acquired		100.00%
Cash paid to acquire business		$ 426,050
Cash and cash equivalents acquired from acquisition		24,701
Cash purchase price		423,290
Business combination, contingent consideration, liability		21,288
Seller incentive opportunity		390,000
Estimated fair value of net assets acquired		305,570
Identifiable intangible assets - see description below		158,100
Goodwill		120,480
Goodwill adjustments						3,458
Decrease in fair value of earnout payments					20,684
Business combination, consideration transferred		$ 399,762
Number of office \| office		3
Contractual adjustments		$ 1,173
Seller retention fund		5,000
Stock-based compensation liabilities		68,335
Transaction costs		16,852
SADA Systems, LLC \| Customer Relationships
Business Acquisition [Line Items]
Identifiable intangible assets - see description below		$ 124,700
Finite-lived intangible asset, useful life		10 years
SADA Systems, LLC \| Noncompete Agreements
Business Acquisition [Line Items]
Identifiable intangible assets - see description below		$ 26,200
SADA Systems, LLC \| Trade Names
Business Acquisition [Line Items]
Finite-lived intangible asset, useful life		3 years
SADA Systems, LLC \| Minimum
Business Acquisition [Line Items]
Number of teammates \| teammate		800
SADA Systems, LLC \| Minimum \| Noncompete Agreements
Business Acquisition [Line Items]
Finite-lived intangible asset, useful life		3 years
SADA Systems, LLC \| Maximum \| Noncompete Agreements
Business Acquisition [Line Items]
Finite-lived intangible asset, useful life		5 years
Amdaris
Business Acquisition [Line Items]
Acquisition, percentage of issued and outstanding shares acquired			100.00%
Cash paid to acquire business			$ 82,875
Estimated fair value of net assets acquired			34,060
Goodwill			71,698
Decrease in fair value of earnout payments					$ 2,442	$ 6,430
Earnout payment				$ 14,348
Intangible assets acquired			$ 41,291
Amdaris \| Customer Relationships
Business Acquisition [Line Items]
Finite-lived intangible asset, useful life			10 years
Amdaris \| Minimum
Business Acquisition [Line Items]
Business combination, contingent consideration, liability			$ 0
Amdaris \| Maximum
Business Acquisition [Line Items]
Business combination, contingent consideration, liability			$ 54,391

Acquisition - Summary of Purchase Price and Estimated Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands	Dec. 01, 2023	Sep. 30, 2024	Dec. 31, 2023
Fair value of net assets acquired:
Excess purchase price over fair value of net assets acquired ("goodwill")		$ 888,808	$ 684,345
SADA Systems, LLC
Business Acquisition [Line Items]
Cash paid to acquire business	$ 426,050
Fair value of net assets acquired:
Current assets	348,043
Identifiable intangible assets - see description below	158,100
Property and equipment	2,266
Other assets	244,342
Current liabilities	(332,010)
Long-term liabilities, including long-term accounts payable	(115,171)
Total fair value of net assets acquired	305,570
Excess purchase price over fair value of net assets acquired ("goodwill")	$ 120,480

Assets Held for Sale (Detail) $ in Thousands	9 Months Ended
Assets Held for Sale (Detail) $ in Thousands	Sep. 30, 2023 USD ($)
Property, Plant and Equipment Assets Held-for-Sale Disclosure [Abstract]
Proceeds from sale of property held-for-sale	$ 15,476
Gain (loss) on sale of properties	$ 6,813

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