10-Q 1 nsit-20220331.htm 10-Q nsit-20220331
0000932696December 312022Q1falsehttp://fasb.org/us-gaap/2021-01-31#AccountingStandardsUpdate202006Memberhttp://fasb.org/us-gaap/2021-01-31#AccountingStandardsUpdate202006Member9111P5DP3M00009326962022-01-012022-03-310000932696dei:FormerAddressMember2022-01-012022-03-3100009326962022-04-29xbrli:shares00009326962022-03-31iso4217:USD00009326962021-12-31iso4217:USDxbrli:shares0000932696us-gaap:ProductMember2022-01-012022-03-310000932696us-gaap:ProductMember2021-01-012021-03-310000932696us-gaap:ServiceMember2022-01-012022-03-310000932696us-gaap:ServiceMember2021-01-012021-03-3100009326962021-01-012021-03-310000932696us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310000932696us-gaap:CommonStockMember2021-12-310000932696us-gaap:TreasuryStockMember2021-12-310000932696us-gaap:AdditionalPaidInCapitalMember2021-12-310000932696us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310000932696us-gaap:RetainedEarningsMember2021-12-3100009326962021-01-012021-12-310000932696us-gaap:AdditionalPaidInCapitalMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2021-12-310000932696us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2021-12-310000932696srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2021-12-310000932696us-gaap:CommonStockMember2022-01-012022-03-310000932696us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310000932696us-gaap:RetainedEarningsMember2022-01-012022-03-310000932696us-gaap:CommonStockMember2022-03-310000932696us-gaap:TreasuryStockMember2022-03-310000932696us-gaap:AdditionalPaidInCapitalMember2022-03-310000932696us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310000932696us-gaap:RetainedEarningsMember2022-03-310000932696us-gaap:CommonStockMember2020-12-310000932696us-gaap:TreasuryStockMember2020-12-310000932696us-gaap:AdditionalPaidInCapitalMember2020-12-310000932696us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000932696us-gaap:RetainedEarningsMember2020-12-3100009326962020-12-310000932696us-gaap:CommonStockMember2021-01-012021-03-310000932696us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310000932696us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310000932696us-gaap:RetainedEarningsMember2021-01-012021-03-310000932696us-gaap:CommonStockMember2021-03-310000932696us-gaap:TreasuryStockMember2021-03-310000932696us-gaap:AdditionalPaidInCapitalMember2021-03-310000932696us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310000932696us-gaap:RetainedEarningsMember2021-03-3100009326962021-03-310000932696nsit:AssetBasedLendingFacilityMember2022-01-012022-03-310000932696nsit:AssetBasedLendingFacilityMember2021-01-012021-03-31nsit:Segment00009326962022-01-012022-01-010000932696us-gaap:AccountingStandardsUpdate202006Member2022-01-012022-03-310000932696nsit:OldMethodOfAccountingMember2022-01-012022-03-310000932696nsit:AccountsReceivableNetMember2022-03-310000932696nsit:AccountsReceivableNetMember2021-12-310000932696us-gaap:OtherAssetsMember2022-03-310000932696us-gaap:OtherAssetsMember2021-12-310000932696nsit:AccruedExpensesAndOtherCurrentLiabilitiesAndOtherLiabilitiesMember2022-03-310000932696nsit:AccruedExpensesAndOtherCurrentLiabilitiesAndOtherLiabilitiesMember2021-12-310000932696us-gaap:ServiceMember2022-04-012022-03-310000932696us-gaap:ServiceMember2023-01-012022-03-310000932696us-gaap:ServiceMember2024-01-012022-03-3100009326962025-01-01us-gaap:ServiceMember2022-03-310000932696us-gaap:ServiceMember2022-03-31nsit:Property0000932696nsit:IrvineCaliforniaPropertyMember2021-01-012021-03-310000932696us-gaap:SeniorNotesMember2022-01-012022-03-310000932696us-gaap:SeniorNotesMember2021-01-012021-03-310000932696us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-03-310000932696us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-03-310000932696nsit:AssetBasedLendingFacilityMember2022-03-310000932696nsit:AssetBasedLendingFacilityMember2021-12-310000932696nsit:ConvertibleSeniorNotesDueTwoThousandTwentyFiveMember2022-03-310000932696nsit:ConvertibleSeniorNotesDueTwoThousandTwentyFiveMember2021-12-310000932696nsit:AssetBasedLendingFacilityMembernsit:ForeignCurrencyBorrowingsMember2022-03-310000932696nsit:AssetBasedLendingFacilityMembersrt:MaximumMember2022-01-012022-03-310000932696nsit:ConvertibleSeniorNotesDueTwoThousandTwentyFiveMember2019-08-31xbrli:pure0000932696nsit:ConvertibleSeniorNotesDueTwoThousandTwentyFiveMembernsit:ScenarioOneMember2022-01-012022-03-31utr:D0000932696nsit:ConvertibleSeniorNotesDueTwoThousandTwentyFiveMembernsit:ScenarioTwoMember2022-01-012022-03-310000932696nsit:ConvertibleSeniorNotesDueTwoThousandTwentyFiveMember2022-01-012022-03-310000932696nsit:ConvertibleSeniorNotesDueTwoThousandTwentyFiveMembersrt:MaximumMember2022-01-012022-03-310000932696nsit:UnsecuredInventoryFinancingFacilityMembernsit:MUFGBankLimitedMember2021-08-060000932696nsit:UnsecuredInventoryFinancingFacilityMembernsit:PNCFacilityMember2021-12-310000932696nsit:UnsecuredInventoryFinancingFacilityMembernsit:PNCFacilityMember2022-03-310000932696nsit:UnsecuredInventoryFinancingFacilityMembernsit:CanadaFacilityMember2022-03-310000932696nsit:EMEAFacilitiesMembernsit:UnsecuredInventoryFinancingFacilityMember2021-08-060000932696nsit:UnsecuredInventoryFinancingFacilityMembernsit:MUFGBankLimitedMember2022-01-012022-03-310000932696nsit:PNCFacilityMembernsit:InventoryFinancingFacilityMember2022-01-012022-03-310000932696nsit:EMEAFacilitiesMembernsit:UnsecuredInventoryFinancingFacilityMember2022-01-012022-03-310000932696nsit:InventoryFinancingFacilityMember2022-03-3100009326962020-02-2600009326962021-05-060000932696nsit:FebruaryTwoThousandAndTwentyShareRepurchasePlanMember2021-05-060000932696us-gaap:SuretyBondMember2022-03-310000932696srt:MinimumMember2022-01-012022-03-310000932696srt:MaximumMember2022-01-012022-03-310000932696nsit:HardwareNetSalesMembernsit:NorthAmericaSegmentMember2022-01-012022-03-310000932696nsit:HardwareNetSalesMembernsit:EMEASegmentMember2022-01-012022-03-310000932696nsit:HardwareNetSalesMembernsit:APACSegmentMember2022-01-012022-03-310000932696nsit:HardwareNetSalesMember2022-01-012022-03-310000932696nsit:SoftwareNetSalesMembernsit:NorthAmericaSegmentMember2022-01-012022-03-310000932696nsit:SoftwareNetSalesMembernsit:EMEASegmentMember2022-01-012022-03-310000932696nsit:SoftwareNetSalesMembernsit:APACSegmentMember2022-01-012022-03-310000932696nsit:SoftwareNetSalesMember2022-01-012022-03-310000932696nsit:ServicesNetSalesMembernsit:NorthAmericaSegmentMember2022-01-012022-03-310000932696nsit:ServicesNetSalesMembernsit:EMEASegmentMember2022-01-012022-03-310000932696nsit:ServicesNetSalesMembernsit:APACSegmentMember2022-01-012022-03-310000932696nsit:ServicesNetSalesMember2022-01-012022-03-310000932696nsit:NorthAmericaSegmentMember2022-01-012022-03-310000932696nsit:EMEASegmentMember2022-01-012022-03-310000932696nsit:APACSegmentMember2022-01-012022-03-310000932696nsit:LargeEnterpriseCorporateMembernsit:NorthAmericaSegmentMember2022-01-012022-03-310000932696nsit:LargeEnterpriseCorporateMembernsit:EMEASegmentMember2022-01-012022-03-310000932696nsit:LargeEnterpriseCorporateMembernsit:APACSegmentMember2022-01-012022-03-310000932696nsit:LargeEnterpriseCorporateMember2022-01-012022-03-310000932696nsit:NorthAmericaSegmentMembernsit:CommercialMember2022-01-012022-03-310000932696nsit:EMEASegmentMembernsit:CommercialMember2022-01-012022-03-310000932696nsit:APACSegmentMembernsit:CommercialMember2022-01-012022-03-310000932696nsit:CommercialMember2022-01-012022-03-310000932696nsit:PublicSectorMembernsit:NorthAmericaSegmentMember2022-01-012022-03-310000932696nsit:PublicSectorMembernsit:EMEASegmentMember2022-01-012022-03-310000932696nsit:PublicSectorMembernsit:APACSegmentMember2022-01-012022-03-310000932696nsit:PublicSectorMember2022-01-012022-03-310000932696us-gaap:SalesChannelDirectlyToConsumerMembernsit:NorthAmericaSegmentMember2022-01-012022-03-310000932696us-gaap:SalesChannelDirectlyToConsumerMembernsit:EMEASegmentMember2022-01-012022-03-310000932696us-gaap:SalesChannelDirectlyToConsumerMembernsit:APACSegmentMember2022-01-012022-03-310000932696us-gaap:SalesChannelDirectlyToConsumerMember2022-01-012022-03-310000932696us-gaap:SalesChannelThroughIntermediaryMembernsit:NorthAmericaSegmentMember2022-01-012022-03-310000932696us-gaap:SalesChannelThroughIntermediaryMembernsit:EMEASegmentMember2022-01-012022-03-310000932696us-gaap:SalesChannelThroughIntermediaryMembernsit:APACSegmentMember2022-01-012022-03-310000932696us-gaap:SalesChannelThroughIntermediaryMember2022-01-012022-03-310000932696nsit:HardwareNetSalesMembernsit:NorthAmericaSegmentMember2021-01-012021-03-310000932696nsit:HardwareNetSalesMembernsit:EMEASegmentMember2021-01-012021-03-310000932696nsit:HardwareNetSalesMembernsit:APACSegmentMember2021-01-012021-03-310000932696nsit:HardwareNetSalesMember2021-01-012021-03-310000932696nsit:SoftwareNetSalesMembernsit:NorthAmericaSegmentMember2021-01-012021-03-310000932696nsit:SoftwareNetSalesMembernsit:EMEASegmentMember2021-01-012021-03-310000932696nsit:SoftwareNetSalesMembernsit:APACSegmentMember2021-01-012021-03-310000932696nsit:SoftwareNetSalesMember2021-01-012021-03-310000932696nsit:ServicesNetSalesMembernsit:NorthAmericaSegmentMember2021-01-012021-03-310000932696nsit:ServicesNetSalesMembernsit:EMEASegmentMember2021-01-012021-03-310000932696nsit:ServicesNetSalesMembernsit:APACSegmentMember2021-01-012021-03-310000932696nsit:ServicesNetSalesMember2021-01-012021-03-310000932696nsit:NorthAmericaSegmentMember2021-01-012021-03-310000932696nsit:EMEASegmentMember2021-01-012021-03-310000932696nsit:APACSegmentMember2021-01-012021-03-310000932696nsit:LargeEnterpriseCorporateMembernsit:NorthAmericaSegmentMember2021-01-012021-03-310000932696nsit:LargeEnterpriseCorporateMembernsit:EMEASegmentMember2021-01-012021-03-310000932696nsit:LargeEnterpriseCorporateMembernsit:APACSegmentMember2021-01-012021-03-310000932696nsit:LargeEnterpriseCorporateMember2021-01-012021-03-310000932696nsit:NorthAmericaSegmentMembernsit:CommercialMember2021-01-012021-03-310000932696nsit:EMEASegmentMembernsit:CommercialMember2021-01-012021-03-310000932696nsit:APACSegmentMembernsit:CommercialMember2021-01-012021-03-310000932696nsit:CommercialMember2021-01-012021-03-310000932696nsit:PublicSectorMembernsit:NorthAmericaSegmentMember2021-01-012021-03-310000932696nsit:PublicSectorMembernsit:EMEASegmentMember2021-01-012021-03-310000932696nsit:PublicSectorMembernsit:APACSegmentMember2021-01-012021-03-310000932696nsit:PublicSectorMember2021-01-012021-03-310000932696us-gaap:SalesChannelDirectlyToConsumerMembernsit:NorthAmericaSegmentMember2021-01-012021-03-310000932696us-gaap:SalesChannelDirectlyToConsumerMembernsit:EMEASegmentMember2021-01-012021-03-310000932696us-gaap:SalesChannelDirectlyToConsumerMembernsit:APACSegmentMember2021-01-012021-03-310000932696us-gaap:SalesChannelDirectlyToConsumerMember2021-01-012021-03-310000932696us-gaap:SalesChannelThroughIntermediaryMembernsit:NorthAmericaSegmentMember2021-01-012021-03-310000932696us-gaap:SalesChannelThroughIntermediaryMembernsit:EMEASegmentMember2021-01-012021-03-310000932696us-gaap:SalesChannelThroughIntermediaryMembernsit:APACSegmentMember2021-01-012021-03-310000932696us-gaap:SalesChannelThroughIntermediaryMember2021-01-012021-03-310000932696us-gaap:ProductMembernsit:NorthAmericaSegmentMember2022-01-012022-03-310000932696us-gaap:ProductMembernsit:EMEASegmentMember2022-01-012022-03-310000932696us-gaap:ProductMembernsit:APACSegmentMember2022-01-012022-03-310000932696us-gaap:ServiceMembernsit:NorthAmericaSegmentMember2022-01-012022-03-310000932696us-gaap:ServiceMembernsit:EMEASegmentMember2022-01-012022-03-310000932696us-gaap:ServiceMembernsit:APACSegmentMember2022-01-012022-03-310000932696us-gaap:ProductMembernsit:NorthAmericaSegmentMember2021-01-012021-03-310000932696us-gaap:ProductMembernsit:EMEASegmentMember2021-01-012021-03-310000932696us-gaap:ProductMembernsit:APACSegmentMember2021-01-012021-03-310000932696us-gaap:ServiceMembernsit:NorthAmericaSegmentMember2021-01-012021-03-310000932696us-gaap:ServiceMembernsit:EMEASegmentMember2021-01-012021-03-310000932696us-gaap:ServiceMembernsit:APACSegmentMember2021-01-012021-03-310000932696us-gaap:OperatingSegmentsMembernsit:NorthAmericaSegmentMember2022-03-310000932696us-gaap:OperatingSegmentsMembernsit:NorthAmericaSegmentMember2021-12-310000932696us-gaap:OperatingSegmentsMembernsit:EMEASegmentMember2022-03-310000932696us-gaap:OperatingSegmentsMembernsit:EMEASegmentMember2021-12-310000932696us-gaap:OperatingSegmentsMembernsit:APACSegmentMember2022-03-310000932696us-gaap:OperatingSegmentsMembernsit:APACSegmentMember2021-12-310000932696us-gaap:IntersegmentEliminationMember2022-03-310000932696us-gaap:IntersegmentEliminationMember2021-12-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: March 31, 2022
OR
oTRANSITION 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
nsit-20220331_g1.jpg
INSIGHT ENTERPRISES, INC.
(Exact name of registrant as specified in its charter)
Delaware86-0766246
(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)
__________________________________________________________________
6820 South Harl Avenue, Tempe, Arizona 85283
_________________________________________________________________
(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 classTrading SymbolName of each exchange on which registered
Common stock, par value $0.01NSITThe 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 filerxAccelerated filero
Non-accelerated filer oSmaller reporting companyo
Emerging growth companyo
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 April 29, 2022 was 35,074,362.


INSIGHT ENTERPRISES, INC.
QUARTERLY REPORT ON FORM 10-Q
Three Months Ended March 31, 2022
TABLE OF CONTENTS
Page


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 future responses to and the potential impact of coronavirus strain COVID-19 (“COVID-19”) on our Company; our expectations regarding current supply constraints including our belief that supply constraints and extended lead times for certain products could impact results into the second half of 2022; our belief that we could continue to see growth in the hardware category of net sales in North America into the second half of 2022; the expected effects of seasonality on our business; 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; 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; 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 liquidity and the sufficiency of our capital resources, the availability of financing and our needs or plans relating thereto; 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; 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 plans to use cash flow from operations for working capital, to pay down debt, repurchase shares of our common stock, make capital expenditures, and fund 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, 2021:

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
the duration and severity of the COVID-19 pandemic and its effects on our business, results of operations and financial condition, as well as the widespread outbreak of any other illnesses or communicable diseases;
general economic conditions, economic uncertainties and changes in geopolitical conditions;


INSIGHT ENTERPRISES, INC.
changes in the IT industry and/or rapid changes in technology;
supply constraints for hardware, including devices;
accounts receivable risks, including increased credit loss experience or extended payment terms with our clients;
our reliance on independent shipping companies;
the risks associated with our international operations;
natural disasters or other adverse occurrences;
disruptions in our IT systems and voice and data networks;
cyberattacks or breaches of data privacy and security regulations;
intellectual property infringement claims and challenges to our registered trademarks and trade names;
legal proceedings, client audits and failure to comply with laws and regulations;
failure to comply with the terms and conditions of our commercial and 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 our convertible senior notes (the “Notes”), which has been triggered, 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 notes (the "Call Spread Transactions");
risks associated with the discontinuation of LIBOR as a benchmark rate;
increased debt and interest expense and 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;
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 that are otherwise 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.


PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
INSIGHT ENTERPRISES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(unaudited)
March 31,
2022
December 31,
2021
ASSETS
Current assets:
Cash and cash equivalents$114,758 $103,840 
Accounts receivable, net of allowance for doubtful accounts of $16,760 and $16,941, respectively
3,025,699 2,936,732 
Inventories383,401 328,101 
Other current assets244,383 199,638 
Total current assets3,768,241 $3,568,311 
Property and equipment, net of accumulated depreciation and amortization of $231,333 and $233,786, respectively
189,722 176,263 
Goodwill429,215 428,346 
Intangible assets, net of accumulated amortization of $118,905 and $110,909, respectively
207,116 214,788 
Other assets255,494 301,372 
$4,849,788 $4,689,080 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable—trade$1,623,651 $1,779,854 
Accounts payable—inventory financing facilities318,433 311,878 
Accrued expenses and other current liabilities390,703 423,489 
Current portion of long-term debt344,903 36 
Total current liabilities2,677,690 2,515,257 
Long-term debt373,018 361,570 
Deferred income taxes36,631 47,073 
Other liabilities223,258 255,953 
3,310,597 3,179,853 
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; 35,072 shares at March 31, 2022 and 34,897 shares at December 31, 2021 issued and outstanding
351 349 
Additional paid-in capital321,959 368,282 
Retained earnings1,242,110 1,167,690 
Accumulated other comprehensive loss – foreign currency translation adjustments(25,229)(27,094)
Total stockholders’ equity1,539,191 1,509,227 
$4,849,788 $4,689,080 
See accompanying notes to consolidated financial statements.
1

INSIGHT ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended
March 31,
20222021
Net sales:
Products$2,310,287 $1,893,020 
Services340,563 300,048 
Total net sales2,650,850 2,193,068 
Costs of goods sold:
Products2,107,209 1,721,258 
Services164,780 140,336 
Total costs of goods sold2,271,989 1,861,594 
Gross profit378,861 331,474 
Operating expenses:
Selling and administrative expenses297,640 271,190 
Severance and restructuring expenses, net1,372 (6,740)
Earnings from operations79,849 67,024 
Non-operating (income) expense:
Interest expense, net8,068 9,969 
Other (income) expense, net(2,843)388 
Earnings before income taxes74,624 56,667 
Income tax expense17,993 13,499 
Net earnings$56,631 $43,168 
Net earnings per share:
Basic$1.62 $1.23 
Diluted$1.53 $1.18 
Shares used in per share calculations:
Basic34,974 35,199 
Diluted36,981 36,699 
See accompanying notes to consolidated financial statements.

2

INSIGHT ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands)
(unaudited)
Three Months Ended
March 31,
20222021
Net earnings$56,631 $43,168 
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments1,865 (80)
Total comprehensive income$58,496 $43,088 
See accompanying notes to consolidated financial statements.
3

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 December 31, 202134,897 $349  $ $368,282 $(27,094)$1,167,690 $1,509,227 
Cumulative effect of accounting change— — — — (44,731)— 17,789 (26,942)
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes175 2 — — (6,599)— — (6,597)
Stock-based compensation expense— — — — 5,007 — — 5,007 
Foreign currency translation adjustments, net of tax— — — — — 1,865 — 1,865 
Net earnings— — — — — — 56,631 56,631 
Balances at March 31, 202235,072 $351  $ $321,959 $(25,229)$1,242,110 $1,539,191 
Balances at December 31, 202035,103 $351  $ $364,288 $(15,455)$993,245 $1,342,429 
Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes217 2 — — (7,069)— — (7,067)
Stock-based compensation expense— — — — 4,716 — — 4,716 
Foreign currency translation adjustments, net of tax— — — — — (80)— (80)
Net earnings— — — — — — 43,168 43,168 
Balances at March 31, 202135,320 $353  $ $361,935 $(15,535)$1,036,413 $1,383,166 
See accompanying notes to consolidated financial statements.
4

INSIGHT ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended
March 31,
20222021
Cash flows from operating activities:
Net earnings$56,631 $43,168 
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities:
Depreciation and amortization13,314 14,222 
Provision for losses on accounts receivable1,031 2,178 
Non-cash stock-based compensation5,007 4,716 
Deferred income taxes(1,715)643 
Amortization of debt discount and issuance costs1,623 4,172 
Other adjustments(106)(7,617)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable(103,326)93,485 
Increase in inventories(57,876)(67,946)
Decrease in other assets4,111 16,759 
Decrease in accounts payable(137,144)(25,315)
Decrease in accrued expenses and other liabilities(65,789)(35,759)
Net cash (used in) provided by operating activities(284,239)42,706 
Cash flows from investing activities:
Proceeds from sale of assets 27,211 
Purchases of property and equipment(25,745)(7,847)
Net cash (used in) provided by investing activities(25,745)19,364 
Cash flows from financing activities:
Borrowings on ABL revolving credit facility1,151,440 897,848 
Repayments on ABL revolving credit facility(831,440)(921,848)
Net borrowings (repayments) under inventory financing facilities6,692 (17,782)
Other payments(6,738)(7,485)
Net cash provided by (used in) financing activities319,954 (49,267)
Foreign currency exchange effect on cash, cash equivalents and restricted cash balances969 (2,445)
Increase in cash, cash equivalents and restricted cash10,939 10,358 
Cash, cash equivalents and restricted cash at beginning of period105,977 130,582 
Cash, cash equivalents and restricted cash at end of period$116,916 $140,940 
See accompanying notes to consolidated financial statements.
5

INSIGHT ENTERPRISES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

1.    Basis of Presentation and Recently Issued Accounting Standards
We empower organizations with technology, solutions and services to help our clients maximize the value of Information Technology (“IT”) today and drive (digital) transformation for tomorrow in North America; Europe, the Middle East and Africa (“EMEA”); and Asia-Pacific (“APAC”). As a Fortune 500-ranked global technology provider of end-to-end secure digital transformation solutions and services, we help clients innovate and optimize their operations to run smarter. Our company is organized in the following three operating segments, which are primarily defined by their related geographies:
Operating SegmentGeography
North AmericaUnited States and Canada
EMEAEurope, Middle East and Africa
APACAsia-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 are largely 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 March 31, 2022 and our results of operations for the three months ended March 31, 2022 and 2021 and cash flows for the three months ended March 31, 2022 and 2021. The consolidated balance sheet as of December 31, 2021 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, 2021.
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 and impairment of long-lived assets, including purchased intangibles and goodwill, if indicators of potential impairment exist.
6

INSIGHT ENTERPRISES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)
Recently Issued Accounting Standards
In August 2020, the FASB issued ASU No. 2020-06, “Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”. The new guidance is intended to simplify the accounting for certain convertible instruments with characteristics of both liability and equity. The guidance removes certain accounting models which separate the embedded conversion features from the host contract for convertible instruments. As a result, after the adoption of this guidance, an entity’s convertible debt instrument will be wholly accounted for as debt. The guidance also expands disclosure requirements for convertible instruments and simplifies areas of the guidance for diluted earnings-per-share calculations by requiring the use of the if-converted method. The guidance was effective for fiscal years beginning after December 15, 2021, and can be adopted on either a fully retrospective or modified retrospective basis.
The Company adopted this standard effective January 1, 2022, using the modified retrospective approach. Therefore, financial statements for the three months ended March 31, 2022 are presented under the new standard, while the comparative period is not adjusted and is reported in accordance with the Company's old method of accounting. The adoption of ASU 2020-06 significantly impacts our consolidated statements of operations and consolidated balance sheets as we no longer report accreted interest on the convertible senior notes (the “Notes”) and the full par value of the Notes is reflected as debt. The cumulative effect adjustment from prior periods that we recognized in our consolidated balance sheet as adjustments to reduce additional paid in capital and increase retained earnings were $44,731,000 and $17,789,000, respectively. Had we followed the old method of accounting for the three months ended March 31, 2022 reported basic and diluted Net Earnings Per Share "EPS" would decrease by $0.06 and $0.05, respectively, from $1.62 and $1.53, respectively, to $1.56 and $1.48, respectively.
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, 2021 that affect or may affect our current financial statements.
2.    Receivables, Contract Liabilities and Performance Obligations
The following table provides information about receivables and contract liabilities as of March 31, 2022 and December 31, 2021 (in thousands):
March 31,
2022
December 31,
2021
Current receivables, which are included in “Accounts receivable, net”$3,025,699 $2,936,732 
Non-current receivables, which are included in “Other assets”106,098 147,139 
Contract liabilities, which are included in “Accrued expenses and other current liabilities” and “Other liabilities”120,222 116,067 
Changes in the contract liabilities balances during the three months ended March 31, 2022 are as follows (in thousands):
Increase (Decrease)
Contract
Liabilities
Balances at December 31, 2021
$116,067 
Reclassification of the beginning contract liabilities to revenue, as the result of performance obligations satisfied(31,452)
Cash received in advance and not recognized as revenue35,607 
Balances at March 31, 2022
$120,222 
7

INSIGHT ENTERPRISES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)
During the three months ended March 31, 2021, the Company recognized revenue of $34,418,000 related to its contract liabilities.
The following table includes estimated net sales related to performance obligations that are unsatisfied (or partially unsatisfied) as of March 31, 2022 that are expected to be recognized in the future (in thousands):
Services
Remainder of 2022
$109,420 
202349,669 
202426,963 
2025 and thereafter
16,024 
Total remaining performance obligations$202,076 
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 nine 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 March 31, 2022 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 23 months.
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 three months ended March 31, 2021, we completed the sale of our three properties in Tempe, Arizona and the sale of our property in Woodbridge, Illinois for total net proceeds of approximately $27,211,000. We used the proceeds from the sales to ready our property in Chandler, Arizona to be used as our global corporate headquarters. During the three months ended March 31, 2022, we had no assets held for sale.
4.    Net Earnings Per Share (“EPS”)
Basic 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”)
8

INSIGHT ENTERPRISES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)
and certain shares underlying the Notes. A reconciliation of the denominators of the basic and diluted EPS calculations follows (in thousands, except per share data):
Three Months Ended
March 31,
20222021
Numerator:
Net earnings$56,631 $43,168 
Denominator:
Weighted average shares used to compute basic EPS34,974 35,199 
Dilutive potential common shares due to dilutive RSUs, net of tax effect330 461 
Dilutive potential common shares due to the Notes1,677 1,039 
Weighted average shares used to compute diluted EPS36,981 36,699 
Net earnings per share:
Basic$1.62 $1.23 
Diluted$1.53 $1.18 
For the three months ended March 31, 2022, 13,000 of our RSUs were excluded from the diluted EPS calculations because their inclusion would have been anti-dilutive. Certain potential outstanding shares from the warrants relating to the Call Spread Transactions were excluded from the diluted EPS calculations because their inclusion would have been anti-dilutive. For the three months ended March 31, 2021, none of our RSUs were excluded from the diluted EPS calculations and certain potential outstanding shares from the warrants were excluded from the diluted EPS calculations because their inclusion would have been anti-dilutive.
5.    Debt, Inventory Financing Facilities, Finance Leases and Other Financing Obligations
Debt
Our long-term debt consists of the following (in thousands):
March 31,
2022
December 31,
2021
ABL revolving credit facility$373,000 $53,000 
Convertible senior notes due 2025
344,858 308,543 
Finance leases and other financing obligations63 63 
Total717,921 361,606 
Less: current portion of long-term debt(344,903)(36)
Long-term debt$373,018 $361,570 
Our senior secured revolving credit facility (the “ABL facility”), has an aggregate U.S. dollar equivalent maximum borrowing amount of $1,200,000,000, including a maximum borrowing capacity that could be used for borrowing in certain foreign currencies of $150,000,000. 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 $500,000,000, 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 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 August 30, 2024. As of March 31, 2022, eligible
9

INSIGHT ENTERPRISES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)
accounts receivable and inventory were sufficient to permit access to the full $1,200,000,000 facility amount, of which $373,000,000 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.
Convertible Senior Notes due 2025
In August 2019, we issued $350,000,000 aggregate principal amount of Notes that mature on February 15, 2025. The Notes bear interest at an annual rate of 0.75% payable semiannually, in arrears, on February 15th and August 15th of each year. The 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.
Holders of the Notes may convert their notes at their option at any time prior to the close of business on the business day immediately preceding June 15, 2024, under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on December 31, 2020 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day (the “market price trigger”); (2) during the five business day period after any five day consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day; (3) if we call any or all of the Notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events. On or after June 15, 2024 until the close of business on the second scheduled trading day immediately preceding the maturity date, the holders may convert their notes at any time, regardless of the foregoing circumstances.
The Notes exceeded the market price trigger of $88.82 in the first quarter of 2022 making the Notes convertible at the option of the holders through June 30, 2022. All of the Notes remain outstanding at March 31, 2022. The Notes are convertible at the option of the holders at March 31, 2022 and, if exercised, we are required to settle the principal amount of the Notes in cash. As such, the Notes balance net of unamortized debt issuance costs are classified as current. If the Notes continue to exceed the market price trigger in future periods, they will remain convertible at the option of the holders, and the principal amount will continue to be classified as current.
Upon conversion, we will pay or deliver cash equal to the principal amount of the Notes, plus cash or shares of our common stock or a combination of the two for any additional amounts due. The conversion rate will initially be 14.6376 shares of common stock per $1,000 principal amount of the 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
10

INSIGHT ENTERPRISES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)
the principal amount of the Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. As of March 31, 2022, none of the criteria for a fundamental change or a conversion rate adjustment had been met.
The maximum number of shares issuable upon conversion, including the effect of a fundamental change and subject to other conversion rate adjustments, would be 6,788,208.
The Notes are subject to certain customary events of default and acceleration clauses. As of March 31, 2022, no such events have occurred.
The Notes consist of the following balances reported within the consolidated balance sheets (in thousands):
March 31,
2022
December 31,
2021
Liability:
Principal$350,000 $350,000 
Less: debt discount and issuance costs, net of accumulated accretion(5,142)(41,457)
Net carrying amount$344,858 $308,543 
Equity, net of deferred tax$ $44,731 

As a result of our adoption of ASU 2020-06, effective January 1, 2022, we no longer reflect any debt discount on the Notes in our consolidated balance sheet, nor do we recognize amortization of debt discount within our consolidated statement of operations. Also 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 Notes in cash. As a result of this election, at period ends where the market price, or other conversion triggers are met, the Notes will be classified in our consolidated balance sheet as current.

The remaining life of the debt issuance cost accretion is approximately 2.87 years. The effective interest rate on the principal of the Notes is 0.750%.
Interest expense resulting from the Notes reported within the consolidated statement of operations for the three months ended March 31, 2022 is made up of contractual coupon interest and amortization of debt issuance costs. Interest expense resulting from the Notes reported within the consolidated statement of operations for the three months ended March 31, 2021 is made up of contractual coupon interest, amortization of debt discount and amortization of debt issuance costs.
Convertible Note Hedge and Warrant Transaction
In connection with the issuance of the 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 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.
11

INSIGHT ENTERPRISES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)
The Call Spread Transactions have no effect on the terms of the Notes and reduce potential dilution by effectively increasing the initial conversion price of the Notes to $103.12 per share of the Company’s common stock.
Inventory Financing Facilities
We have an unsecured inventory financing facility with MUFG Bank Ltd (“MUFG”) for $280,000,000. During the first quarter of 2022, we increased our maximum availability under our unsecured inventory financing facility with PNC Bank, N.A. (“PNC”) from $300,000,000 to $375,000,000, including the $25,000,000 facility in Canada (the "Canada facility"). We also increased our unsecured inventory financing facility with Wells Fargo in EMEA (the "EMEA facility") to $50,000,000. The inventory financing facilities will remain in effect until they are terminated by any of the parties. If balances are not paid within stated vendor terms, they will accrue interest at prime plus 2.00% on the MUFG facility, Canadian Dollar Offered Rate plus 4.50% on the Canada facility and LIBOR, EURIBOR, or SONIA, as applicable, plus 4.50% and 0.25% on the PNC (other than the Canada facility) and EMEA facilities, respectively. The PNC facility allows for an alternative rate to be identified if LIBOR is no longer available. 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 March 31, 2022, our combined inventory financing facilities had a total maximum capacity of $705,000,000, of which $318,433,000 was outstanding.
6.    Income Taxes
Our effective tax rates for the three months ended March 31, 2022 and 2021 were 24.1% and 23.8%, 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 March 31, 2022 and December 31, 2021, we had approximately $13,347,000 and $12,664,000, respectively, of unrecognized tax benefits. Of these amounts, approximately $1,385,000 and $1,250,000, respectively, related to accrued interest. In the future, if recognized, the liability associated with uncertain tax positions would 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 2015 through 2019. 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.
7.    Share Repurchase Program
On February 26, 2020, we announced that our Board of Directors had authorized the repurchase of up to $50,000,000 of our common stock. On May 6, 2021, we announced that our Board of Directors had authorized the repurchase of up to $125,000,000 of our common stock, including the $25,000,000 that remained available from the February 2020 authorization. As of March 31, 2022, approximately $75,000,000 remained available for repurchases under this 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 amount of shares purchased and the timing of the
12

INSIGHT ENTERPRISES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)
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 March 31, 2022 and 2021, we did not repurchase any shares of our common stock.
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 March 31, 2022, we had approximately $27,348,000 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 March 31, 2022. Accordingly, we have not accrued any liabilities related to such performance bonds in our consolidated financial statements.
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 March 31, 2022. 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.
13

INSIGHT ENTERPRISES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)
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 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.
In connection with the acquisition of PCM, the Company has effectively assumed responsibility for PCM litigation matters, including various disputes related to PCM’s acquisition of certain assets of En Pointe Technologies in 2015. The seller of En Pointe Technologies and related entities providing various post-closing support functions to PCM have asserted claims regarding the sufficiency of earnout payments paid by PCM under the asset purchase agreement and the unwinding of the support functions post-closing. PCM has rejected and vigorously responded to those claims and is pursuing various counterclaims. The disputes are being heard by multiple courts and arbitrators in several different jurisdictions including California, Delaware and Pakistan. The Company cannot determine with certainty the costs or outcome of these matters. However, the Company is not involved in any pending or threatened legal proceedings, including the PCM litigation matters, that it believes would reasonably be expected to have a material adverse effect on its business, financial condition or results of operations.
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 are largely software and certain software-related services and cloud solutions.
14

INSIGHT ENTERPRISES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)
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 months ended March 31, 2022 and 2021 (in thousands):
Three Months Ended March 31, 2022
North AmericaEMEAAPACConsolidated
Major Offerings
Hardware$1,451,319 $210,623 $11,646 $1,673,588 
Software341,547 272,402 22,750 636,699
Services271,639 48,408 20,516 340,563
$2,064,505 $531,433 $54,912 $2,650,850 
Major Client Groups
Large Enterprise / Corporate$1,438,729 $353,904 $21,429 $1,814,062 
Commercial441,159 18,421 14,659 474,239 
Public Sector184,617 159,108 18,824 362,549 
$2,064,505 $531,433 $54,912 $2,650,850 
Revenue Recognition based on acting as Principal or Agent in the Transaction
Gross revenue recognition (Principal)$1,970,921 $506,862 $47,018 $2,524,801 
Net revenue recognition (Agent)93,584 24,571 7,894 126,049 
$2,064,505 $531,433 $54,912 $2,650,850 
Three Months Ended March 31, 2021
North AmericaEMEAAPACConsolidated
Major Offerings
Hardware$1,109,489 $195,971 $9,565 $1,315,025 
Software308,738 234,423 34,834 577,995 
Services236,554 48,442 15,052 300,048 
$1,654,781 $478,836 $59,451 $2,193,068 
Major Client Groups
Large Enterprise / Corporate$1,171,428 $309,075 $19,076 $1,499,579 
Commercial344,045 20,533 12,667 377,245 
Public Sector139,308 149,228 27,708 316,244 
$1,654,781 $478,836 $59,451 $2,193,068 
Revenue Recognition based on acting as Principal or Agent in the Transaction
Gross revenue recognition (Principal)$1,569,641 $450,977 $52,863 $2,073,481 
Net revenue recognition (Agent)85,140 27,859 6,588 119,587 
$1,654,781 $478,836 $59,451 $2,193,068 
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
15

INSIGHT ENTERPRISES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)
of our clients exceeded ten percent of consolidated net sales for the three months ended March 31, 2022 or 2021.
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.
The following tables present our results of operations by reportable operating segment for the periods indicated (in thousands):
Three Months Ended March 31, 2022
North AmericaEMEAAPACConsolidated
Net sales:
Products$1,792,866 $483,025 $34,396 $2,310,287 
Services271,639 48,408 20,516 340,563 
Total net sales2,064,505 531,433 54,912 2,650,850 
Costs of goods sold:
Products1,625,775 449,632 31,802 2,107,209 
Services138,646 17,031 9,103 164,780 
Total costs of goods sold1,764,421 466,663 40,905 2,271,989 
Gross profit300,084 64,770 14,007 378,861 
Operating expenses:
Selling and administrative expenses235,220 52,326 10,094 297,640 
Severance and restructuring expenses304 1,068  1,372 
Earnings from operations$64,560 $11,376 $3,913 $79,849 
Three Months Ended March 31, 2021
North AmericaEMEAAPACConsolidated
Net sales:
Products$1,418,227 $430,394 $44,399 $1,893,020 
Services236,554 48,442 15,052 300,048 
Total net sales1,654,781 478,836 59,451 2,193,068 
Costs of goods sold:
Products1,283,876 396,184 41,198 1,721,258 
Services117,416 16,617 6,303 140,336 
Total costs of goods sold1,401,292 412,801 47,501 1,861,594 
Gross profit253,489 66,035 11,950 331,474 
Operating expenses:
Selling and administrative expenses206,806 55,447 8,937 271,190 
Severance and restructuring expenses(7,238)498  (6,740)
Earnings from operations$53,921 $10,090 $3,013 $67,024 

16

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):
March 31,
2022
December 31,
2021
North America$4,825,025 $4,920,220 
EMEA815,338 828,456 
APAC139,850 148,737 
Corporate assets and intercompany eliminations, net(930,425)(1,208,333)
Total assets$4,849,788 $4,689,080 
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
March 31,
20222021
Depreciation and amortization of property and equipment:
North America$4,420 $4,807 
EMEA807 1,232 
APAC162 142 
5,389 6,181 
Amortization of intangible assets:
North America7,348 7,417 
EMEA457 496 
APAC120 128 
7,925 8,041 
Total$13,314 $14,222 
17

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 needs to be a technology business. We empower organizations with technology, solutions and services to help our clients maximize the value of information technology (“IT”) and drive (digital) transformation for tomorrow in North America; Europe, the Middle East and Africa (“EMEA”); and Asia-Pacific (“APAC”). As a Fortune 500-ranked global technology provider of end-to-end secure digital transformation solutions and services, we help clients innovate and optimize their operations to run smarter. 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 are largely software and certain software-related services and cloud solutions.
On a consolidated basis, for the three months ended March 31, 2022:
Net sales of $2.7 billion increased 21% compared to the three months ended March 31, 2021. The increase in net sales reflects a double digit increase in all categories of net sales. Excluding the effects of fluctuating foreign currency exchange rates, net sales increased 22% compared to the first quarter of 2021.
Gross profit of $378.9 million increased 14% compared to the three months ended March 31, 2021. Excluding the effects of fluctuating foreign currency exchange rates, gross profit increased 16% compared to the first quarter of 2021.
Compared to the three months ended March 31, 2021, gross margin contracted approximately 80 basis points to 14.3% of net sales in the three months ended March 31, 2022. This decline primarily reflects an increase in hardware net sales at lower margins and a change in the mix of services net sales compared to the same period in the prior year.
Earnings from operations increased 19%, year over year, to $79.8 million in the first quarter of 2022 compared to $67.0 million in the first quarter of 2021. The increase was primarily due to increased gross profit in the current quarter, partially offset by an increase in selling and administrative expenses and severance and restructuring expenses. Excluding the effects of fluctuating foreign currency exchange rates, earnings from operations increased 20% year over year.
Net earnings and diluted earnings per share were $56.6 million and $1.53, respectively, for the first quarter of 2022. This compares to net earnings of $43.2 million and diluted earnings per share of $1.18 for the first quarter of 2021. Of the $0.35 year over year increase in diluted earnings per share, $0.05 was due to the change in method of accounting for the Notes beginning in January 2022.
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. In computing the changes in amounts and percentages, we compare the current period amount as translated into U.S. dollars under the
18

INSIGHT ENTERPRISES, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (continued)
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.
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.
COVID-19 and Supply Chain Constraints Update

On March 11, 2020, the World Health Organization declared COVID-19 a pandemic. The pandemic has negatively impacted the global economy, disrupted global supply chains and reduced workforce participation. While we saw minimal negative impact of COVID-19 on our first quarter 2022 financial results, prolonged supply constraints resulted in sustained elevated backlog as we exited the quarter. We currently believe these supply constraints and extended lead times for certain products could impact results into the second half of 2022 and we expect growth in net sales in 2022 compared to 2021.

More recently, new variants of COVID-19, such as the Omicron variants, that are significantly more contagious than previous strains, have emerged. The spread of these new strains initially caused many government authorities and businesses to reimplement prior restrictions in an effort to lessen the spread of COVID-19 and its variants; however, some of these restrictions are now being lifted. The ultimate extent of the impact of the COVID-19 pandemic on our business operations, financial performance, and results of operations, including our ability to execute our business strategies and initiatives in the expected time frame, is currently unknown and will depend on future developments, which are highly uncertain, continuously evolving and cannot be predicted. This includes, but is not limited to, the duration and spread of the COVID-19 pandemic and its severity; the emergence and severity of its variants; the availability and efficacy of vaccines (particularly with respect to emerging strains of the virus) and potential hesitancy to utilize them; other protective actions taken to contain the virus or treat its impact, such as restrictions on travel and transportation; general economic factors, such as increased inflation; supply chain constraints; labor supply issues; and how quickly and to what extent normal economic and operating conditions can resume.

We will continue to actively monitor the situation and anticipate taking further actions as may be required by government authorities or that we determine are in the best interests of our teammates, clients and partners. It is not clear what the potential effects of any such alterations or modifications may have on our business, including the effects on our clients, teammates, and prospects, or on our financial results in 2022 and beyond. Accordingly, our current results and financial condition discussed herein may not be indicative of future operating results and trends.

Critical Accounting Estimates
Our consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“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, 2021. 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,
19

INSIGHT ENTERPRISES, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (continued)
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, 2021.
Results of Operations
The following table sets forth certain financial data as a percentage of net sales for the three and nine months ended March 31, 2022 and 2021:
Three Months Ended
March 31,
20222021
Net sales100.0 %100.0 %
Costs of goods sold85.7 84.9 
Gross profit14.3 15.1 
Selling and administrative expenses11.2 12.3 
Severance and restructuring expenses and acquisition and integration related expenses0.1 (0.3)
Earnings from operations3.0 3.1 
Non-operating expense, net0.2 0.5 
Earnings before income taxes2.8 2.6 
Income tax expense0.7 0.6 
Net earnings2.1 %2.0 %
We generally experience some seasonal trends in our sales of IT hardware, software and services. Software sales are typically seasonally higher in our second and fourth quarter, particularly the second quarter. Business clients, particularly larger enterprise businesses in the United States, tend to spend more in our fourth quarter and less in our first 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 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 seasonality in our consolidated results such that net sales and profitability are expected to be higher in the second and fourth quarters of the year.
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 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 incentive requirements, which occur regularly, could impact our results of operations to the extent we are unable to shift our focus and respond to them.
Net Sales. Net sales for the three months ended March 31, 2022 increased 21%, year over year, to $2.7 billion compared to the three months ended March 31, 2021. This increase reflects increases in our North America and EMEA segments, partially offset by a decrease in
20

INSIGHT ENTERPRISES, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (continued)
APAC. Our net sales by operating segment were as follows for the three months ended March 31, 2022 and 2021 (dollars in thousands):
Three Months Ended March 31,%
Change
20222021
North America$2,064,505 $1,654,781 25 %
EMEA531,433 478,836 11 %
APAC54,912 59,451 (8)%
Consolidated$2,650,850 $2,193,068 21 %
Our net sales by offering category for North America for the three months ended March 31, 2022 and 2021 were as follows (dollars in thousands):
Three Months Ended March 31,%
Change
Sales Mix20222021
Hardware$1,451,319 $1,109,489 31 %
Software341,547 308,738 11 %
Services271,639 236,554 15 %
$2,064,505 $1,654,781 25 %
Net sales in North America increased 25% or $409.7 million, for the three months ended March 31, 2022 compared to the three months ended March 31, 2021, primarily driven by increases in hardware net sales. Net sales of hardware, software and services increased 31%, 11% and 15%, respectively, year over year. The increases for the three months ended March 31, 2022 were the result of the following:
The increase in hardware net sales was due to higher volume of sales to large enterprise and corporate clients primarily of devices. This growth in hardware net sales was higher than expected and we believe we could continue to see growth in this category into the second half of 2022.
The increase in services net sales was primarily due to an increase in Insight delivered services and higher sales of software maintenance.
The increase in software net sales was primarily due to higher volume of software licensing, partially offset by the continued migration of on-premise software to cloud solutions, reported net in services net sales.
Our net sales by offering category for EMEA for the three months ended March 31, 2022 and 2021 were as follows (dollars in thousands):
Three Months Ended March 31,%
Change
Sales Mix20222021
Hardware$210,623 $195,971 %
Software272,402 234,423 16 %
Services48,408 48,442 — %
$531,433 $478,836 11 %
Net sales in EMEA increased 11% or $52.6 million, for the three months ended March 31, 2022 compared to the three months ended March 31, 2021. Excluding the effects of fluctuating foreign currency exchange rates, net sales in EMEA increased 17%, year over year.
21

INSIGHT ENTERPRISES, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (continued)
Net sales of hardware and software increased 7% and 16%, respectively, year over year. The increases for the three months ended March 31, 2022 were the result of the following:
The increase in software net sales was primarily due to higher volume of sales to enterprise and public sector clients.
The increase in hardware net sales was primarily due to higher volumes of sales to enterprise, corporate and public sector clients.
Services net sales were flat year over year due primarily to higher volume of sales of Insight delivered services offset by decreases in fees for cloud solutions and lower volume of software maintenance.
Our net sales by offering category for APAC for the three months ended March 31, 2022 and 2021 were as follows (dollars in thousands):
Three Months Ended March 31,%
Change
Sales Mix20222021
Hardware$11,646 $9,565 22 %
Software22,750 34,834 (35 %)
Services20,516 15,052 36 %
 $54,912 $59,451 (8)%
Net sales in APAC decreased 8% or $4.5 million, for the three months ended March 31, 2022 compared to the three months ended March 31, 2021. Excluding the effects of fluctuating foreign currency exchange rates, net sales in APAC decreased 3%, year to year. Net sales of hardware and services increased by 22% and 36%, respectively, year over year. Net sales of software decreased by 35%, year to year. The net changes for the three months ended March 31, 2022 were the result of the following:
The increase in services net sales was primarily due to higher volume sales of Insight delivered services and an increase in net sales of cloud solutions.
The increase in hardware net sales was primarily the result of higher volume of sales to enterprise and commercial clients.
The decrease in software net sales was due to continued migration of on-premise software to cloud solutions.
The percentage of net sales by category for North America, EMEA and APAC were as follows for the three months ended March 31, 2022 and 2021:
North America
Three Months Ended
March 31,
EMEA
Three Months Ended
March 31,
APAC
Three Months Ended
March 31,
Sales Mix202220212022202120222021
Hardware70 %67 %40 %41 %21 %16 %
Software17 %19 %51 %49 %42 %59 %
Services13 %14 %%10 %37 %25 %
100 %100 %100 %100 %100 %100 %
Gross Profit. Gross profit increased 14%, or $47.4 million, for the three months ended March 31, 2022, compared to the three months ended March 31, 2021, with gross margin contracting approximately 80 basis points to 14.3% for the three months ended March 31, 2022 compared to 15.1% for the three months ended March 31, 2021.
22

INSIGHT ENTERPRISES, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (continued)
Our gross profit and gross profit as a percentage of net sales by operating segment were as follows for the three months ended March 31, 2022 and 2021 (dollars in thousands):
Three Months Ended March 31,
2022% of
Net Sales
2021% of
Net Sales
North America$300,084 14.5 %$253,489 15.3 %
EMEA64,770 12.2 %66,035 13.8 %
APAC14,007 25.5 %11,950 20.1 %
Consolidated$378,861 14.3 %$331,474 15.1