Segment Information

9 Months Ended

Sep. 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						Nine Months Ended
	September 30						September 30
	2011			2010			2011			2010
Net sales:
Technology Products	$	813,261		$	794,246		$	2,464,269		$	2,397,458
Industrial Products	86,978			67,821			236,578			184,601
Corporate and Other	941			638			2,422			1,758
Consolidated	$	901,180		$	862,705		$	2,703,269		$	2,583,817
Operating income (loss):
Technology Products	$	13,552		$	8,557		$	50,234		$	45,829
Industrial Products	10,202			7,915			26,019			17,639
Corporate and Other	(4,642		)	(4,376		)	(16,688		)	(14,867		)
Consolidated	$	19,112		$	12,096		$	59,565		$	48,601

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

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2011		2010		2011		2010
Net sales:
United States	$	580,522	$	564,887	$	1,717,160	$	1,666,070
United Kingdom	116,648		109,439		336,947		322,199
Other Europe	149,897		136,511		481,321		443,964
Other North America	54,113		51,868		167,841		151,584
Consolidated	$	901,180	$	862,705	$	2,703,269	$	2,583,817

 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 was as follows (in thousands):

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2011		%	2010		%	2011		%	2010		%
Product Category:
Computers	$	280,715	31.1%	$	221,874	25.7%	$	742,408	27.5%	$	650,836	25.2%
Computer accessories & software	247,546		27.5%	237,867		27.6%	769,131		28.4%	719,217		27.8%
Consumer electronics	166,953		18.5%	189,030		21.9%	543,359		20.1%	573,730		22.2%
Computer components	99,468		11.0%	132,162		15.3%	348,461		12.9%	402,562		15.6%
Industrial products	86,977		9.7%	67,821		7.9%	236,578		8.8%	184,521		7.2%
Other	19,521		2.2%	13,951		1.6%	63,332		2.3%	52,951		2.0%
Consolidated	$	901,180	100.0%	$	862,705	100.0%	$	2,703,269	100.0%	$	2,583,817	100.0%