Segment Information

3 Months Ended

Mar. 31, 2017

Segment Information [Abstract]

Segment Information

6. Segment Information

The Company operates and is internally managed in two reportable business segments— Industrial Products Group (“IPG”) and Europe Technology Products Group (“ETG”).   Smaller business operations and corporate functions are aggregated and reported as the additional segment – Corporate and Other (“Corporate”).  As previously stated, on March 24, 2017 the Company sold its SARL Businesses and its continuing ETG operations now only include those in France.

IPG sells a wide array of maintenance, repair and operations (“MRO”) products which are marketed in North America.  Most of these products are manufactured by other companies; however, the Company does offer a selection of products that are manufactured to our own design and marketed on a private label basis.

ETG sells products categorized as Information and Communications Technology (“ICT”) and Consumer Electronics (“CE”).  These products include computers, computer supplies and consumer electronics.  Substantially all of these products are manufactured by other companies.

The Company’s chief operating decision-maker is the Company’s Chief Executive Officer (“CEO”).  The CEO, in his role as Chief Operating Decision Maker (“CODM”), evaluates segment performance based on operating income (loss) from continuing operations.  The CODM reviews assets and makes significant 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.  Corporate costs not identified with the disclosed segments are grouped as “Corporate and other expenses”.

The IPG and ETG segments sell dissimilar products.  IPG products are generally higher in price, lower in volume and higher in product margin.  ETG products are generally higher in volume, lower in price and lower in product margin as compared to IPG.  This results in higher operating margin for the IPG segment.  Each segment incurs specifically identifiable selling, general and administrative expenses, with the selling, general and administrative expenses for the IPG segment being higher as a percentage of sales than those of the ETG segment as a result of the IPG segment having a longer selling cycle for its business customers and a business model requiring greater advertising expenditures than the ETG segment. Additionally, the IPG segment’s vendors generally do not provide funding to offset its marketing expenses.

Financial information relating to the Company’s continuing operations by reportable segment was as follows (in millions).  NATG which was previously its own reportable segment is included below for operating losses that remain in continuing operations, primarily related to the wind-down of certain leases that continue to be included in its own segment as noted below.

	Three Months Ended March 31
	2017			2016
Net sales:
IPG	$	190.2		$	170.6
ETG		112.3			115.2
Corporate and other		-			1.0
Consolidated	$	302.5			286.8
Operating income (loss):
IPG	$	12.5		$	7.9
ETG		5.8			3.7
NATG – continuing operations		-			(1.8	)
Corporate and other expenses		(5.9	)		(6.7	)
Consolidated	$	12.4		$	3.1

Financial information relating to the Company’s continuing operations by geographic area was as follows (in millions):

	Three Months Ended March 31
	2017		2016
Net sales:
United States	$	182.6	$	165.6
France		112.3		100.1
Other Europe		-		15.1
Other North America		7.6		6.0
Consolidated	$	302.5	$	286.8

 Revenue is attributed to countries based on the location of the selling subsidiary.