Segment Information

9 Months Ended

Sep. 30, 2012

Segment Information [Abstract]

Segment Information

5. Segment Information

Systemax is primarily a direct marketer of brand name and private label products. Our operations are organized into two reportable business segments – Technology Products and Industrial Products.

Our Technology Products segment sells computers, computer supplies and consumer electronics which are marketed in North America, Puerto Rico and Europe. Most of these products are manufactured by other companies; however, we do offer a selection of products that are manufactured for us to our own design and marketed on a private label basis.

Our Industrial Products segment sells a wide array of industrial products and supplies which are marketed in North America. Most of these products are manufactured by other companies. Some products are manufactured for us to our own design and marketed on a private label basis.

The Company's chief operating decision-maker is the Company's Chief Executive Officer. The Company evaluates segment performance based on operating income, before net interest, foreign exchange gains and losses, special charges, internal management fees and income taxes. Corporate costs not identified with the disclosed segments are grouped as "Corporate and other expenses".

The chief operating decision-maker reviews assets and makes capital expenditure decisions for the Company on a consolidated basis only. The accounting policies of the segments are the same as those of the Company.

The Company's Industrial Products and Technology Products segments sell dissimilar products. Industrial products are generally higher in price, lower in volume and higher in product margin. Technology products are generally higher in volume, lower in price and lower in product margin. This results in higher operating margin for the Industrial Products segment. Each segment carries specifically identifiable selling, general and administrative expenses, with the selling, general and administrative expenses for the Industrial Products segment being higher as a percentage of sales than those of the Technology Products segment as a result of the Industrial Products segment having a longer selling cycle than the Technology Products segment.

Financial information relating to the Company's operations, excluding discontinued operations, by reportable segment was as follows (in thousands):

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2012			2011			2012			2011
Net sales:
Technology Products	$	734,693		$	812,326		$	2,302,168		$	2,463,334
Industrial Products		110,352			86,977			303,582			236,577
Corporate and Other		1,228			915			3,615			2,329
Consolidated	$	846,273		$	900,218		$	2,609,365		$	2,702,240
Operating income (loss) from continuing operations:
Technology Products	$	(3,882	)	$	13,552		$	1,550		$	50,234
Industrial Products		7,636			10,424			22,954			26,477
Corporate and Other		(5,690	)		(4,717	)		(17,611	)		(16,916	)
Consolidated	$	(1,936	)	$	19,259		$	6,893		$	59,795

Financial information relating to the Company's operations, excluding discontinued operations, by geographic area was as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2012		2011		2012		2011
Net sales:
United States	$	532,008	$	579,560	$	1,619,061	$	1,716,131
United Kingdom		124,958		116,648		373,234		336,947
Other Europe		138,960		149,897		463,651		481,321
Other North America		50,347		54,113		153,419		167,841
Consolidated	$	846,273	$	900,218	$	2,609,365	$	2,702,240

Revenues are attributed to countries based on the location of the selling subsidiary.

Financial information relating to the Company's entity-wide product category sales, excluding discontinued operations, was as follows (in millions):

	Three Months Ended September 30										Nine Months Ended September 30
	2012		%			2011		%			2012		%			2011		%
Product Category
Computers	$	251.9		30	%	$	279.7		31	%	$	752.3		29	%	$	741.5		28	%
Computer accessories & software		233.8		27	%		247.5		27	%		731.0		28	%		769.1		28	%
Consumer electronics		132.7		16	%		167.0		19	%		447.3		17	%		543.4		20	%
Industrial products		110.4		13	%		87.0		10	%		303.6		12	%		236.6		9	%
Computer components		93.3		11	%		99.5		11	%		301.4		11	%		348.5		13	%
Other		24.2		3	%		19.5		2	%		73.8		3	%		63.1		2	%
Consolidated	$	846.3		100	%	$	900.2		100	%	$	2,609.4		100	%	$	2,702.2		100	%