Note 5–Segment Information

The internal reporting structure used by our chief operating decision maker (“CODM”) to assess performance and allocate resources determines the basis for our reportable operating segments. Our CODM is our Chief Executive Officer, and he evaluates operations and allocates resources based on a measure of operating income.

Our operations are organized under three reportable segments—the Business Solutions segment, which serves primarily small- and medium-sized businesses; the Enterprise Solutions segment, which serves primarily medium-to-large corporations; and the Public Sector Solutions segment, which serves primarily federal, state, and local governmental and educational institutions. In addition, the Headquarters/Other group provides services in areas such as finance, human resources, information technology, marketing, and product management. Most of the operating costs associated with the Headquarters/Other group functions are charged to the operating segments based on their estimated usage of the underlying functions. We report these charges to the operating segments as “Allocations.” Certain headquarters costs relating to executive oversight and other fiduciary functions that are not allocated to the operating segments are included under the heading of Headquarters/Other in the tables below.

Segment information applicable to our reportable operating segments for the three months ended March 31, 2020 and 2019 is shown below:


	Three Months Ended March 31 ,
	2020		2019
Net sales:
Business Solutions	$	278,785	$	252,932
Enterprise Solutions		333,418		275,635
Public Sector Solutions		99,647		104,354
Total net sales	$	711,850	$	632,921
Operating income (loss):
Business Solutions	$	11,301	$	8,765
Enterprise Solutions		16,722		15,473
Public Sector Solutions		(3,322)		(3,066)
Headquarters/Other		(4,051)		(3,763)
Total operating income		20,650		17,409
Interest income, net		92		198
Income before taxes	$	20,742	$	17,607
Selected operating expense:
Depreciation and amortization:
Business Solutions	$	159	$	150
Enterprise Solutions		681		639
Public Sector Solutions		15		21
Headquarters/Other		2,292		2,899
Total depreciation and amortization	$	3,147	$	3,709
Total assets:
Business Solutions	$	319,909	$	280,889
Enterprise Solutions		536,672		484,497
Public Sector Solutions		52,285		55,536
Headquarters/Other		4,326		7,527
Total assets	$	913,192	$	828,449

The assets of our three operating segments presented above consist primarily of accounts receivable, net intercompany receivable, goodwill, and other intangibles. Assets reported under the Headquarters/Other group are managed by corporate headquarters, including cash, inventory, property and equipment, right-of-use assets, and intercompany balance, net. As of March 31, 2020 and 2019, total assets for the Headquarters/Other group are presented net of intercompany balance eliminations of $7,024 and $11,201, respectively. Our capital expenditures consist largely of IT hardware and software purchased to maintain or upgrade our management information systems. These information systems serve all of our segments, to varying degrees, and accordingly, our CODM does not evaluate capital expenditures on a segment-by-segment basis.