PC CONNECTION INC Segments Disclosure
15. SEGMENT AND RELATED DISCLOSURES
The internal reporting structure used by the Company’s chief operating decision maker, or CODM, to assess performance and allocate resources determines the basis for the Company’s operating segments. The Company’s operations are organized under three reporting segments—the Enterprise Solutions segment, which serves primarily medium-to-large corporations; the Business Solutions segment, which serves primarily SMBs; and the Public Sector Solutions segment, which serves primarily federal, state, and local government and educational institutions. In addition,
the Headquarters/Other provides services in areas such as finance, human resources, IT, marketing, and product management. Most of the operating costs associated with the Headquarters/Other functions are charged to the operating segments based on their estimated usage of the underlying functions. The Company reports these charges to the operating segments as “Allocations”. Headquarters/Other amounts that are not allocated to the operating segments are shown as reconciling items in the tables below.
The Company’s CODM is its Chief Executive Officer, and he assesses the segments’ performance by using each segment’s operating income (which includes certain corporate overhead allocations attributable to each of the segments). Net sales presented below exclude inter-segment product revenues. The CODM uses operating income for each segment in the annual budget, periodic forecasting, and quarterly results processes. Segment information applicable to the Company’s operating segments and the related reconciliations to consolidated amounts for the years ended December 31, 2025, 2024, and 2023 are shown below (in thousands):
Year Ended December 31, 2025 | ||||||||||||
| Enterprise | | Business | | Public Sector | | Total | |||||
Net sales | $ | 1,282,420 | $ | 1,081,854 | $ | 508,472 | $ | 2,872,746 | ||||
Cost of sales |
| 1,096,557 |
| 809,737 |
| 427,123 | ||||||
Personnel costs |
| 66,429 |
| 69,565 |
| 36,545 | ||||||
Marketing | 5,021 | 15,630 | 2,910 | |||||||||
Allocated corporate overhead | 74,279 | 88,520 | 44,260 | |||||||||
Depreciation and amortization | 777 | 620 | 89 | |||||||||
Other segment expenses1 | 4,029 | 6,714 | 7,568 | |||||||||
Operating income (loss) | $ | 35,328 | $ | 91,068 | $ | (10,023) | $ | 116,373 | ||||
Unallocated Headquarters/Other expenses |
| (17,091) | ||||||||||
Interest income, net |
| 14,370 | ||||||||||
Other income |
| 76 | ||||||||||
Income before taxes | $ | 113,728 | ||||||||||
Segment assets | $ | 772,828 | $ | 653,168 | $ | 96,299 | $ | 1,522,295 | ||||
Headquarters/Other assets |
| (171,370) | ||||||||||
Consolidated assets | $ | 1,350,925 | ||||||||||
| 1) | Other segment expenses for each of the reportable segments include service contracts/subscriptions, professional fees, facilities operations, credit card fees, and other miscellaneous expenses. |
Year Ended December 31, 2024 | ||||||||||||
| Enterprise | | Business | | Public Sector | | Total | |||||
Net sales | $ | 1,181,148 | $ | 1,049,139 | $ | 571,831 | $ | 2,802,118 | ||||
Cost of sales |
| 1,001,187 |
| 796,684 |
| 484,453 | ||||||
Personnel costs |
| 62,378 |
| 70,472 |
| 36,661 | ||||||
Marketing | 5,318 | 16,127 | 3,646 | |||||||||
Allocated corporate overhead | 72,601 | 81,918 | 40,959 | |||||||||
Depreciation and amortization | 852 | 620 | 91 | |||||||||
Other segment expenses1 | 4,831 | 6,467 | 3,733 | |||||||||
Operating income | $ | 33,981 | $ | 76,851 | $ | 2,288 | $ | 113,120 | ||||
Unallocated Headquarters/Other expenses |
| (16,058) | ||||||||||
Interest income, net |
| 18,725 | ||||||||||
Other income |
| 1,700 | ||||||||||
Income before taxes | $ | 117,487 | ||||||||||
Segment assets | $ | 737,405 | $ | 564,110 | $ | 114,524 | $ | 1,416,039 | ||||
Headquarters/Other assets |
| (116,685) | ||||||||||
Consolidated assets | $ | 1,299,354 | ||||||||||
Year Ended December 31, 2023 | ||||||||||||
| Enterprise | | Business | | Public Sector | | Total | |||||
Net sales | $ | 1,201,131 | $ | 1,075,599 | $ | 573,914 | $ | 2,850,644 | ||||
Cost of sales |
| 1,022,273 |
| 828,499 |
| 488,136 | ||||||
Personnel costs |
| 68,112 |
| 73,103 |
| 37,031 | ||||||
Marketing | 4,683 | 13,755 | 3,486 | |||||||||
Allocated corporate overhead | 59,825 | 77,420 | 38,710 | |||||||||
Depreciation and amortization | 1,452 | 628 | 84 | |||||||||
Other segment expenses1 | 5,570 | 6,044 | 4,290 | |||||||||
Operating income | $ | 39,216 | $ | 76,150 | $ | 2,177 | $ | 117,543 | ||||
Unallocated Headquarters/Other expenses |
| (14,390) | ||||||||||
Interest income, net |
| 9,961 | ||||||||||
Other income |
| — | ||||||||||
Income before taxes | $ | 113,114 | ||||||||||
| 1) | Other segment expenses for each of the reportable segments include service contracts/subscriptions, professional fees, facilities operations, credit card fees, and other miscellaneous expenses. |
The assets of the Company’s operating segments presented above consist primarily of accounts receivable, net intercompany receivable, goodwill, and other intangibles. Goodwill of $66,236 and $7,366 is held by the Enterprise Solutions and Business Solutions segments, respectively, as of December 31, 2025. Assets reported under the Headquarters/Other are managed by corporate headquarters, including cash, inventory, property and equipment and intercompany balance, net. Total assets for the Headquarters/Other are presented net of intercompany balances eliminations of $59,050 and $69,695 for the years ended December 31, 2025 and 2024, respectively. The Company’s capital expenditures consist largely of IT hardware and software purchased to maintain or upgrade its management information systems. These systems serve all of the Company’s subsidiaries, to varying degrees, and as a result, the CODM does not evaluate capital expenditures on a segment basis.
Substantially all of the Company’s sales in 2025, 2024, and 2023 were made to customers located in the United States. Shipments to customers located in foreign countries were not more than 2% of total net sales in 2025, 2024, and 2023. All of the Company’s assets as of December 31, 2025 and 2024 were located in the United States. The Company’s
primary target customers are SMBs, medium-to-large businesses, and federal, state, and local government agencies and educational institutions.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 24, 2025 | |
| 2023 | Mar 7, 2024 | |
| 2022 | Mar 6, 2023 | |
| 2021 | Mar 14, 2022 | |
| 2020 | Mar 16, 2021 | |
| 2019 | Feb 6, 2020 | |
| 2018 | Feb 7, 2019 | |
| 2017 | Mar 9, 2018 | |
| 2016 | Mar 3, 2017 | |
| 2015 | Mar 3, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.