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Sales Recognition
9 Months Ended
Sep. 30, 2019
Revenue From Contract With Customer [Abstract]  
Sales Recognition

3.

Sales Recognition

In the following table, revenue is disaggregated by our reportable operating segments, which are primarily defined by 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, 2019 and 2018 (in thousands):

 

 

 

Three Months Ended September 30, 2019

 

 

 

North America

 

 

EMEA

 

 

APAC

 

 

Consolidated

 

Major Offerings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hardware

 

$

1,020,083

 

 

$

137,416

 

 

$

9,243

 

 

$

1,166,742

 

Software

 

 

295,730

 

 

 

186,839

 

 

 

19,569

 

 

 

502,138

 

Services

 

 

199,349

 

 

 

31,453

 

 

 

12,865

 

 

 

243,667

 

 

 

$

1,515,162

 

 

$

355,708

 

 

$

41,677

 

 

$

1,912,547

 

Major Client Groups

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Large Enterprise / Corporate

 

$

1,110,817

 

 

$

277,536

 

 

$

17,811

 

 

$

1,406,164

 

Public Sector

 

 

165,085

 

 

 

59,174

 

 

 

6,178

 

 

 

230,437

 

Small and Medium-Sized Businesses

 

 

239,260

 

 

 

18,998

 

 

 

17,688

 

 

 

275,946

 

 

 

$

1,515,162

 

 

$

355,708

 

 

$

41,677

 

 

$

1,912,547

 

Revenue Recognition based on acting as

   Principal or Agent in the Transaction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross revenue recognition (Principal)

 

$

1,448,385

 

 

$

336,600

 

 

$

35,979

 

 

$

1,820,964

 

Net revenue recognition (Agent)

 

 

66,777

 

 

 

19,108

 

 

 

5,698

 

 

 

91,583

 

 

 

$

1,515,162

 

 

$

355,708

 

 

$

41,677

 

 

$

1,912,547

 

 

 

 

Three Months Ended September 30, 2018

 

 

 

North America

 

 

EMEA

 

 

APAC

 

 

Consolidated

 

Major Offerings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hardware

 

$

953,431

 

 

$

147,497

 

 

$

6,041

 

 

$

1,106,969

 

Software

 

 

259,602

 

 

 

168,603

 

 

 

13,099

 

 

 

441,304

 

Services

 

 

158,426

 

 

 

29,080

 

 

 

11,947

 

 

 

199,453

 

 

 

$

1,371,459

 

 

$

345,180

 

 

$

31,087

 

 

$

1,747,726

 

Major Client Groups

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Large Enterprise / Corporate

 

$

986,665

 

 

$

265,430

 

 

$

10,715

 

 

$

1,262,810

 

Public Sector

 

 

141,895

 

 

 

62,720

 

 

 

6,255

 

 

 

210,870

 

Small and Medium-Sized Businesses

 

 

242,899

 

 

 

17,030

 

 

 

14,117

 

 

 

274,046

 

 

 

$

1,371,459

 

 

$

345,180

 

 

$

31,087

 

 

$

1,747,726

 

Revenue Recognition based on acting as

   Principal or Agent in the Transaction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross revenue recognition (Principal)

 

$

1,322,391

 

 

$

326,671

 

 

$

26,638

 

 

$

1,675,700

 

Net revenue recognition (Agent)

 

 

49,068

 

 

 

18,509

 

 

 

4,449

 

 

 

72,026

 

 

 

$

1,371,459

 

 

$

345,180

 

 

$

31,087

 

 

$

1,747,726

 

 

 

 

Nine Months Ended September 30, 2019

 

 

 

North America

 

 

EMEA

 

 

APAC

 

 

Consolidated

 

Major Offerings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hardware

 

$

2,704,212

 

 

$

451,892

 

 

$

25,740

 

 

$

3,181,844

 

Software

 

 

907,683

 

 

 

560,073

 

 

 

80,287

 

 

 

1,548,043

 

Services

 

 

551,215

 

 

 

113,092

 

 

 

39,840

 

 

 

704,147

 

 

 

$

4,163,110

 

 

$

1,125,057

 

 

$

145,867

 

 

$

5,434,034

 

Major Client Groups

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Large Enterprise / Corporate

 

$

3,159,269

 

 

$

819,156

 

 

$

47,903

 

 

$

4,026,328

 

Public Sector

 

 

418,583

 

 

 

246,583

 

 

 

47,428

 

 

 

712,594

 

Small and Medium-Sized Businesses

 

 

585,258

 

 

 

59,318

 

 

 

50,536

 

 

 

695,112

 

 

 

$

4,163,110

 

 

$

1,125,057

 

 

$

145,867

 

 

$

5,434,034

 

Revenue Recognition based on acting as

   Principal or Agent in the Transaction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross revenue recognition (Principal)

 

$

3,969,411

 

 

$

1,051,101

 

 

$

127,129

 

 

$

5,147,641

 

Net revenue recognition (Agent)

 

 

193,699

 

 

 

73,956

 

 

 

18,738

 

 

 

286,393

 

 

 

$

4,163,110

 

 

$

1,125,057

 

 

$

145,867

 

 

$

5,434,034

 

 

 

 

Nine Months Ended September 30, 2018

 

 

 

North America

 

 

EMEA

 

 

APAC

 

 

Consolidated

 

Major Offerings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hardware

 

$

2,724,916

 

 

$

505,844

 

 

$

22,518

 

 

$

3,253,278

 

Software

 

 

828,231

 

 

 

551,920

 

 

 

91,459

 

 

 

1,471,610

 

Services

 

 

465,458

 

 

 

104,086

 

 

 

36,658

 

 

 

606,202

 

 

 

$

4,018,605

 

 

$

1,161,850

 

 

$

150,635

 

 

$

5,331,090

 

Major Client Groups

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Large Enterprise / Corporate

 

$

2,945,880

 

 

$

836,865

 

 

$

37,770

 

 

$

3,820,515

 

Public Sector

 

 

388,109

 

 

 

273,821

 

 

 

67,134

 

 

 

729,064

 

Small and Medium-Sized Businesses

 

 

684,616

 

 

 

51,164

 

 

 

45,731

 

 

 

781,511

 

 

 

$

4,018,605

 

 

$

1,161,850

 

 

$

150,635

 

 

$

5,331,090

 

Revenue Recognition based on acting as

   Principal or Agent in the Transaction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross revenue recognition (Principal)

 

$

3,857,104

 

 

$

1,093,110

 

 

$

133,542

 

 

$

5,083,756

 

Net revenue recognition (Agent)

 

 

161,501

 

 

 

68,740

 

 

 

17,093

 

 

 

247,334

 

 

 

$

4,018,605

 

 

$

1,161,850

 

 

$

150,635

 

 

$

5,331,090

 

 

The following table provides information about receivables, contract assets and contract liabilities as of September 30, 2019 and December 31, 2018 (in thousands):

 

 

 

September 30,

 

 

December 31,

 

 

 

2019

 

 

2018

 

Current receivables, which are included in “Accounts

   receivable, net”

 

$

2,320,681

 

 

$

1,931,736

 

Non-current receivables, which are included in “Other assets”

 

 

150,455

 

 

 

38,157

 

Contract assets, which are included in “Other current assets”

 

 

117

 

 

 

892

 

Contract liabilities, which are included in “Deferred revenue”

   and “Other liabilities”

 

 

72,501

 

 

 

82,117

 

 

Changes in the contract assets and the contract liabilities balances during the nine months ended September 30, 2019 are as follows (in thousands):

 

 

 

Increase (Decrease)

 

 

 

Contract

 

 

Contract

 

 

 

Assets

 

 

Liabilities

 

Balances at December 31, 2018

 

$

892

 

 

$

82,117

 

Reclassification of the beginning contract liabilities

   to revenue, as the result of performance obligations satisfied

 

 

 

 

 

(47,831

)

Cash received in advance and not recognized as revenue

 

 

 

 

 

45,660

 

Reclassification of the beginning contract assets to receivables, as

   the result of rights to consideration becoming unconditional

 

 

(892

)

 

 

 

Contract assets recognized, net of reclassification to receivables

 

 

117

 

 

 

 

Business Combination

 

 

 

 

 

(7,445

)

Balances at September 30, 2019

 

$

117

 

 

$

72,501

 

 

The following table includes estimated net sales related to performance obligations that are unsatisfied (or partially unsatisfied) as of September 30, 2019 that are expected to be recognized in the future (in thousands):

 

 

 

Services

 

Remainder of 2019

 

$

40,161

 

2020

 

 

70,395

 

2021

 

 

23,815

 

2022

 

 

8,273

 

2023 and thereafter

 

 

3,781

 

Total remaining performance obligations

 

$

146,425

 

 

With the exception of remaining performance obligations associated with our OneCall Support Services contracts which are included in the table above regardless of original duration, remaining performance obligations that have original expected durations of one year or less are not included in the table above.  Amounts not included in the table above have an average original expected duration of eight 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, 2019 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 13 months.

The majority of our backlog historically has been and continues to be open cancelable purchase orders.  We do not believe that backlog as of any particular date is predictive of future results, therefore we do not include performance obligations under open cancelable purchase orders, which do not qualify for revenue recognition, in the table above.