Segment Information

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Segment Information

11. Segment Information

In February 2016, we transitioned out nearly the entire management overhead of our MacMall business, thinned out its cost structure and brought it under the management and supervision of our Commercial segment. Also, in connection with our acquisitions of Acrodex and certain assets of Systemax’s North American Technology Group in the fourth quarter of 2015 and our resulting entrance into selling products, services and solutions in the Canadian market, we formed a new operating segment called Canada. This segment includes our operations related to these Canadian market activities, beginning as of the respective dates of these acquisitions. The transition described above and our acquisitions in 2015 resulted in changes to the internal reporting package reviewed by the Chief Operating Decision Maker (“CODM”), and beginning in 2016, we have the following three operating segments: Commercial, Public Sector and Canada. All prior periods have been retrospectively recast to conform to the current presentation.

Summarized segment information for our continuing operations for the periods presented is as follows (in thousands):

	Commercial		Public Sector		Canada		Corporate & Other			Consolidated
Three Months Ended September 30, 2016
Net sales	$	459,558	$	89,688	$	35,724	$	(33	)	$	584,937
Gross profit		66,362		10,271		6,055		(33	)		82,655
Depreciation and amortization expense(1)		1,630		287		326		1,632			3,875
Operating profit (loss)		20,779		4,779		780		(15,638	)		10,700
Three Months Ended September 30, 2015
Net sales	$	336,372	$	68,572	$	—	$	(11	)	$	404,933
Gross profit		51,464		8,664		—		15			60,143
Depreciation and amortization expense(1)		942		111		—		2,117			3,170
Operating profit (loss)		16,301		3,772		—		(19,117	)		956
Nine Months Ended September 30, 2016
Net sales	$	1,288,985	$	261,131	$	113,890	$	(46	)	$	1,663,960
Gross profit		192,209		25,947		17,852		(47	)		235,961
Depreciation and amortization expense(1)		4,873		863		994		5,192			11,922
Operating profit (loss)		59,494		10,501		3,283		(47,694	)		25,584
Nine Months Ended September 30, 2015
Net sales	$	968,942	$	210,843	$	—	$	(22	)	$	1,179,763
Gross profit		139,886		21,317		—		11			161,214
Depreciation and amortization expense(1)		2,527		219		—		6,339			9,085
Operating profit (loss)		41,880		9,152		—		(54,433	)		(3,401	)

⁽¹⁾ Primary fixed assets relating to network and servers are managed by the Corporate headquarters. As such, depreciation expense relating to such assets is included as part of Corporate & Other.

As of September 30, 2016 and December 31, 2015, we had total consolidated assets of $658.5 million and $600.2 million, respectively. Our management does not have available to them and does not use total assets measured at the segment level in allocating resources. Therefore, such information relating to segment assets is not provided herein.