Segment Information

Systemax Inc., through its operating subsidiaries, is a provider of industrial products in North America going to market through a system of branded e-Commerce websites and relationship marketers. Prior to August 31, 2018, the Company operated and was internally managed in two reportable business segments— Industrial Products Group (“IPG”) and Europe Technology Products Group (“ETG”), the Company's France operations. As previously stated, the Company sold its France-based IT value added reseller business on August 31, 2018 and, now, the Company's continuing operations are its IPG businesses in North America, which focus on industrial supplies and MRO (maintenance, repair and operations) markets the Company has served since 1949. Smaller business operations and corporate functions are aggregated and reported as the additional segment – Corporate and Other (“Corporate”).

IPG sells a wide array of maintenance, repair and operational (“MRO”) products, as well as other industrial and general business supplies, which are marketed in North America. Many 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.

ETG sold information and communications technology (“ICT”) products. These products were marketed primarily in France and to a much lesser extent Belgium. Substantially all of these products were manufactured by other companies. As previously stated, ETG France business was sold on August 31, 2018. Current and prior year results of these operations, along with the associated gain on the sale, have been classified within discontinued operations.

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.

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”.

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



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Net sales:
IPG	$	235.8		$	204.4		$	679.2		$	597.3

Operating income (loss):
IPG	$	23.9		$	19.8		$	63.2		$	55.2
NATG – continuing operations	(0.8		)	(0.3		)	(0.8		)	(0.7		)
Corporate and other expenses	(4.7		)	(7.0		)	(14.6		)	(20.0		)
Consolidated	$	18.4		$	12.5		$	47.8		$	34.5

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



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Net sales:
United States	$	225.1	$	196.3	$	647.5	$	573.5
Canada	10.7		8.1		31.7		23.8
Consolidated	$	235.8	$	204.4	$	679.2	$	597.3

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