Segment Information

6 Months Ended

Jun. 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					Six Months Ended
	June 30					June 30
	2012		2011			2012		2011
Net sales:
Technology Products	$	745,586	$	792,745		$	1,567,475	$	1,651,008
Industrial Products	102,852		78,765			193,230		149,600
Corporate and Other	1,102		686			2,387		1,414
Consolidated	$	849,540	$	872,196		$	1,763,092	$	1,802,022
Operating income (loss) from continuing operations:
Technology Products	$	(3,367)	$	18,942		$	5,432	$	36,682
Industrial Products	6,697		8,960			14,945		15,817
Corporate and Other	(5,309)		(5,993		)	(11,548)		(11,963		)
Consolidated	$	(1,979)	$	21,909		$	8,829	$	40,536

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

	Three Months Ended				Six Months Ended
	June 30				June 30
	2012		2011		2012		2011
Net sales:
United States	$	524,897	$	552,531	$	1,087,053	$	1,136,571
United Kingdom	115,860		102,300		248,276		220,299
Other Europe	158,594		163,879		324,691		331,424
Other North America	50,189		53,486		103,072		113,728
Consolidated	$	849,540	$	872,196	$	1,763,092	$	1,802,022

 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 June 30						Six Months Ended June 30
	2012		%	2011		%	2012		%	2011		%
Product Category
Computers	$	238.3	28%	$	243.0	28%	$	500.4	28%	$	461.7	26%
Computer accessories & software	237.6		28%	251.0		29%	497.2		28%	521.6		29%
Consumer electronics	147.7		17%	170.8		20%	314.6		18%	376.4		21%
Industrial products	102.9		12%	78.8		9%	193.2		11%	149.6		8%
Computer components	99.5		12%	106.5		12%	208.1		12%	249.0		14%
Other	23.5		3%	22.1		2%	49.6		3%	43.7		2%
Consolidated	$	849.5	100%	$	872.2	100%	$	1,763.1	100%	$	1,802.0	100%