Insight Enterprises Inc. Files 2023 Annual Report on Form 10-K

Ticker: NSIT · Form: 10-K · Filed: Feb 22, 2024 · CIK: 932696

Sentiment: neutral

Topics: 10-K, Annual Report, Insight Enterprises, Financials, Technology Retail

TL;DR

<b>Insight Enterprises Inc. has submitted its 2023 annual report (10-K) detailing its financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

INSIGHT ENTERPRISES INC (NSIT) filed a Annual Report (10-K) with the SEC on February 22, 2024. Insight Enterprises Inc. filed its 2023 Form 10-K on February 22, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business address is 2701 E Insight Way, Chandler, AZ 85286. Insight Enterprises Inc. is classified under SIC code 5961 (Retail - Catalog & Mail-Order Houses). The company was incorporated in Delaware.

Why It Matters

For investors and stakeholders tracking INSIGHT ENTERPRISES INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Insight Enterprises' financial health, operational strategies, and risk factors for the past fiscal year, crucial for investors and stakeholders to assess performance and future outlook. As a publicly traded company, Insight Enterprises Inc. is required to disclose detailed financial information and business activities annually, offering transparency into its market position and strategic direction within the retail and technology services sectors.

Risk Assessment

Risk Level: medium — INSIGHT ENTERPRISES INC shows moderate risk based on this filing. The company's business is subject to various risks inherent in the technology and retail sectors, including supply chain disruptions, cybersecurity threats, and economic downturns, as detailed in the full 10-K filing.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Insight Enterprises' performance and potential challenges in the upcoming fiscal year.

Key Numbers

Key Players & Entities

FAQ

When did INSIGHT ENTERPRISES INC file this 10-K?

INSIGHT ENTERPRISES INC filed this Annual Report (10-K) with the SEC on February 22, 2024.

What is a 10-K filing?

A 10-K is a comprehensive annual financial report required by the SEC, covering audited financials, business operations, risk factors, and management discussion. This particular 10-K was filed by INSIGHT ENTERPRISES INC (NSIT).

Where can I read the original 10-K filing from INSIGHT ENTERPRISES INC?

You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by INSIGHT ENTERPRISES INC.

What are the key takeaways from INSIGHT ENTERPRISES INC's 10-K?

INSIGHT ENTERPRISES INC filed this 10-K on February 22, 2024. Key takeaways: Insight Enterprises Inc. filed its 2023 Form 10-K on February 22, 2024.. The filing covers the fiscal year ending December 31, 2023.. The company's principal business address is 2701 E Insight Way, Chandler, AZ 85286..

Is INSIGHT ENTERPRISES INC a risky investment based on this filing?

Based on this 10-K, INSIGHT ENTERPRISES INC presents a moderate-risk profile. The company's business is subject to various risks inherent in the technology and retail sectors, including supply chain disruptions, cybersecurity threats, and economic downturns, as detailed in the full 10-K filing.

What should investors do after reading INSIGHT ENTERPRISES INC's 10-K?

Investors should review the detailed financial statements and risk factors in the 10-K to understand Insight Enterprises' performance and potential challenges in the upcoming fiscal year. The overall sentiment from this filing is neutral.

How does INSIGHT ENTERPRISES INC compare to its industry peers?

Insight Enterprises Inc. operates in the technology solutions and services sector, providing hardware, software, and services to businesses.

Are there regulatory concerns for INSIGHT ENTERPRISES INC?

As a public company, Insight Enterprises Inc. is subject to the reporting requirements of the Securities and Exchange Commission (SEC) under the Securities Exchange Act of 1934.

Industry Context

Insight Enterprises Inc. operates in the technology solutions and services sector, providing hardware, software, and services to businesses.

Regulatory Implications

As a public company, Insight Enterprises Inc. is subject to the reporting requirements of the Securities and Exchange Commission (SEC) under the Securities Exchange Act of 1934.

What Investors Should Do

  1. Review the full 10-K filing for detailed financial statements and management's discussion and analysis.
  2. Analyze the company's business segments and revenue streams for the fiscal year 2023.
  3. Assess the identified risk factors and their potential impact on future operations.

Key Dates

Year-Over-Year Comparison

This is the initial filing analyzed for the 2023 fiscal year.

Filing Stats: 4,375 words · 18 min read · ~15 pages · Grade level 17 · Accepted 2024-02-22 16:38:08

Key Financial Figures

Filing Documents

Business

Business 3 ITEM 1A.

Risk Factors

Risk Factors 13 ITEM 1B. Unresolved Staff Comments 24 ITEM 1C. Cybersecurity 24 ITEM 2.

Properties

Properties 25 ITEM 3.

Legal Proceedings

Legal Proceedings 27 ITEM 4. Mine Safety Disclosures 27 PART II ITEM 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 28 ITEM 6. [Reserved] 29 ITEM 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 30 ITEM 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 45 ITEM 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 46 ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 97 ITEM 9A.

Controls and Procedures

Controls and Procedures 97 ITEM 9B. Other Information 98 ITEM 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 98 PART III ITEM 10. Directors, Executive Officers and Corporate Governance 99 ITEM 11.

Executive Compensation

Executive Compensation 99 ITEM 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 99 ITEM 13. Certain Relationships and Related Transactions, and Director Independence 99 ITEM 14. Principal Accountant Fees and Services 99 PART IV ITEM 15. Exhibits and Financial Statement Schedules 100 ITEM 16. Form 10-K Summary 100 EXHIBITS TO FORM 10-K 101

SIGNATURES

SIGNATURES 105 INSIGHT ENTERPRISES, INC.

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS 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 Annual Report on Form 10-K, including statements in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of this report, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include: projections of, and matters that affect, net sales, gross profit, gross margin, operating expenses, earnings from operations, non-operating income and expenses, net earnings or cash flows, cash needs and the payment of accrued expenses and liabilities; our expectations regarding current supply constraints, including our belief that supply constraints and extended lead times for certain infrastructure, including networking products, have now normalized back to near historic levels; our belief that the general slowdown in our clients' decision making will continue in the short term; our expectations regarding certain trends for our business, including that lower sales of devices and infrastructure could continue into the second half of 2024 and that gross margin expansion could continue into future periods as we focus on selling solutions and increasing our services net sales, including cloud solution offerings; our expectation that we will continue to incur further transformation costs in 2024, which are not expected to recur in the longer term; the expected effects of seasonality on our business, including as a result of recent acquisitions; expectations of further consolidation and trends in the Information Technology ("IT") industry; our business strategy and our strategic initiatives, including our efforts to grow our core business in the current environment, develop and grow our global cloud busines

Business

Item 1. Business Our Company Today, every business is a technology business. We help our clients accelerate their digital journey to modernize their businesses and maximize the value of technology. We serve these clients in North America; Europe, the Middle East and Africa ("EMEA"); and Asia-Pacific ("APAC"). As a Fortune 500-ranked solutions integrator, we enable secure, end-to-end digital transformation and meet the needs of our clients through a comprehensive portfolio of solutions, far-reaching partnerships and 35 years of broad IT expertise. We amplify our solutions and services with global scale, local expertise and our e-commerce experience, enabling our clients to realize their digital ambitions in multiple ways. The Company is organized in the following three operating segments, which are primarily defined by their related geographies: Operating Segment* Geography Percent of 2023 Consolidated Net Sales North America United States and Canada 80% EMEA Europe, Middle East and Africa 17% APAC Asia-Pacific 3% * Additional detailed segment and geographic information can be found in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 and in Note 19 to the Consolidated Financial Statements in Part II, Item 8 of this report. Insight began operations in Arizona in 1988, incorporated in Delaware in 1991 and completed its initial public offering in 1995. Our corporate headquarters are located in Chandler, Arizona. From our original location in the United States, we expanded nationwide and then entered Canada in 1997 and the United Kingdom in 1998. Through a combination of acquisitions and organic growth, we continued to increase our geographic coverage and expand our technical capabilities. Our acquisitions were as follows: Prior to 2018, we acquired Software Spectrum, Inc. (2006), Calence, LLC (2008), MINX Limited (2008), Ensynch, Inc. (2011), Inmac GmbH (2012), Micro Warehouse BV (2012), BlueMetal A

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