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.
|