Segment Information

6 Months Ended

Jun. 30, 2011

Segment Information [Abstract]

Segment Information

7. 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 and Europe.  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.

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, reorganization and other charges, internal management fees and income taxes. Corporate costs not identified with the disclosed segments are grouped as "Corporate and other" below.

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 by reportable segment was as follows (in thousands):

	Three Months Ended						Six Months Ended
	June 30						June 30
	2011			2010			2011			2010
Net sales:
Technology Products	$	792,745		$	743,073		$	1,651,008		$	1,603,212
Industrial Products		78,765			62,249			149,600			116,780
Corporate and Other		712			553			1,481			1,120
Consolidated	$	872,222		$	805,875		$	1,802,089		$	1,721,112
Operating income (loss):
Technology Products	$	18,942		$	15,473		$	36,682		$	37,272
Industrial Products		8,960			6,145			15,817			9,724
Corporate and Other		(6,074	)		(5,526	)		(12,046	)		(10,491	)
Consolidated	$	21,828		$	16,092		$	40,453		$	36,505

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

	Three Months Ended				Six Months Ended
	June 30				June 30
	2011		2010		2011		2010
Net sales:
United States	$	552,557	$	518,936	$	1,136,638	$	1,101,183
United Kingdom		102,300		97,300		220,299		212,760
Other Europe		163,879		143,899		331,424		307,453
Other North America		53,486		45,740		113,728		99,716
Consolidated	$	872,222	$	805,875	$	1,802,089	$	1,721,112

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