Segment Information

The Company operates and is internally managed in two reportable business segments— Industrial Products Group (“IPG”) and Europe Technology Products Group (“ETG”), the Company's France operations. Smaller business operations and corporate functions are aggregated and reported as the additional segment – Corporate and Other (“Corporate”). On March 24, 2017, the Company sold its SARL Businesses and its continuing ETG operations only include those in France.

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 sells information and communications technology (“ICT”) products. These products are marketed primarily in France and to a much lesser extent Belgium. Substantially all of these products are manufactured by other companies.

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”.

The IPG and ETG segments sell dissimilar products. IPG products are generally higher in price, lower in volume and higher in product margin. ETG products are generally higher in volume, lower in price and lower in product margin as compared to IPG. This results in higher operating margin for the IPG segment. Each segment incurs specifically identifiable selling, distribution and administrative expenses, with the selling, distribution and administrative expenses for the IPG segment being higher as a percentage of sales than those of the ETG segment as a result of the IPG segment having a business model requiring greater advertising expenditures than the ETG segment, as well as having increased distribution expenses related to the nature of the larger products that are often shipped Less than Truckload (“LTL”). Additionally, the IPG segment’s vendors generally provide less funding to offset its marketing expenses.

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



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Net sales:
IPG	$	231.2		$	202.7		$	443.4		$	392.9
ETG	131.9			110.3			274.9			222.6
Consolidated	$	363.1		$	313.0		$	718.3		$	615.5

Operating income (loss):
IPG	$	23.0		$	22.9		$	39.3		$	35.4
ETG	7.2			5.7			16.5			11.5
NATG – continuing operations	0.0			(0.4		)	0.0			(0.4		)
Corporate and other expenses	(4.9		)	(6.5		)	(10.4		)	(12.4		)
Consolidated	$	25.3		$	21.7		$	45.4		$	34.1

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



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Net sales:
United States	$	220.4	$	194.6	$	422.4	$	377.2
France	131.9		110.3		274.9		222.6
Canada	10.8		8.1		21.0		15.7
Consolidated	$	363.1	$	313.0	$	718.3	$	615.5

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