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Subsequent Events (Tables)
 6 Months Ended
Jun. 30, 2018
Subsequent Events [Abstract]  
Business Combination, Pro Forma Information [Table Text Block]
The following unaudited pro forma condensed consolidated financial information is presented to show how the Company's results may have appeared if the sale had occurred on June 30, 2018 (in the case of the Condensed Consolidated Balance Sheet and Condensed Statement of Operations) or on January 1, 2017 (in the case of the Condensed Consolidated Statements of Operations). As the sale will not be completed until later in 2018, this unaudited pro forma condensed consolidated financial information will change to reflect exchange rates and financial operations and conditions at the time of the sale.

The pro forma condensed consolidated financial statements do not necessarily reflect what the Company's financial conditions or results of operations would have been had the sale occurred on the dates indicated. They also may not be useful in predicting the future financial condition and results of operations of the Company.

Systemax Inc.
Pro Forma Condensed Consolidated Balance Sheets (Unaudited)
(In millions)

 
As reported
June 30,
 
Pro Forma adjustments (a)
 
Other
 Pro Forma
 adjustments
 
Pro Forma
June 30,
 
2018
 
 
 
 
 
2018
ASSETS:
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
Cash
$
96.9

 
$
0.0

 
220.1

(b)
317.0

Accounts receivable, net
189.5

 
(106.9
)
 

 
82.6

Inventories
126.4

 
(37.0
)
 

 
89.4

Prepaid expenses and other current assets
5.7

 
(0.8
)
 

 
4.9

Total current assets
418.5

 
(144.7
)
 
220.1

 
493.9

 


 


 

 

Property, plant and equipment, net
14.6

 
(1.2
)
 

 
13.4

Deferred income taxes
25.8

 
(5.9
)
 

 
19.9

Goodwill and intangibles
14.0

 
(3.8
)
 

 
10.2

Other assets
1.5

 
(0.3
)
 

 
1.2

Total assets
$
474.4

 
$
(155.9
)
 
220.1

 
538.6

 


 


 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY:
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
Accounts payable
$
187.7

 
$
(76.6
)
 

 
111.1

Accrued expenses and other current liabilities
67.6

 
(24.3
)
 
(0.7
)
(c)
42.6

Total current liabilities
255.3

 
(100.9
)
 
(0.7
)

153.7

Deferred income tax liability
0.1

 


 


0.1

Other liabilities
21.7

 
(3.8
)
 


17.9

Total liabilities
277.1

 
(104.7
)
 
(0.7
)

171.7

 
 
 
 
 
 
 
 
Commitments and contingencies
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shareholders’ equity:
 
 
 
 
 
 
 
Preferred stock
0.0

 


 


0.0

Common stock
0.4

 


 


0.4

Additional paid-in capital
185.7

 


 
1.2

(d)
186.9

Treasury stock
(20.6
)
 


 


(20.6
)
Retained earnings
32.2

 
(51.2
)
 
216.0

(e)
197.0

Accumulated other comprehensive income(loss)
(0.4
)
 


 
3.6

(f)
3.2

Total shareholders’ equity
197.3

 
(51.2
)
 
220.8


366.9

Total liabilities and shareholders’ equity
$
474.4

 
$
(155.9
)
 
$
220.1


$
538.6


Pro Forma adjustments to the Unaudited Condensed Consolidated Balance Sheet as of June 30, 2018

(a) Reverse the June 30, 2018 balance sheet of the Company's France business, excluding cash the Company retains.
(b) Record the proceeds from sale ($246.0 million) less deal transaction costs ($4.9 million) and estimated tax on sale ($21.0 million).
(c) Record payment of deal related accrued professional fees.
(d) Record charge related to the acceleration of certain restricted stock awards ("RSU's") granted to sold entities employees.
(e) Record retained earnings impact from net sale proceeds ($246.0 million), accelerated amortization expense of RSU's ($1.2 million), cumulative translation adjustments ($3.6 million), deal transaction costs ($4.2 million) and estimated tax on sale ($21.0 million).
(f) Record write off of cumulative translation adjustments.
Systemax Inc.
Pro Forma Condensed Consolidated Statements of Operations (Unaudited)
(In millions, except per share amounts)

 
As reported
Year Ended
December 31,
 
Pro Forma
 adjustments (a)
 
Pro Forma
 Year Ended
December 31,
 
2017
 
 
 
2017
Net sales
$
1,265.4

 
$
(473.6
)

$
791.8

Cost of sales
914.0

 
(395.4
)

518.6

Gross profit
351.4

 
(78.2
)

273.2

Selling, distribution & administrative expenses
279.8

 
(52.2
)
(b)
227.6

Special charges
0.3

 
0.0


0.3

Operating income from continuing operations
71.3

 
(26.0
)
(b)
45.3

Interest and other (income) expense, net
0.5

 
(0.3
)

0.2

Income from continuing operations before income taxes
70.8

 
(25.7
)
(b)
45.1

Provision for income taxes
(5.3
)
 
(9.0
)
(c)
(14.3
)
Net income from continuing operations
76.1

 
(16.7
)

59.4

 
 
 
 
 
 
Net income per common share from continuing operations:
 
 
 
 
 
Basic
$
2.06

 
 
 
$
1.61

Diluted
$
2.02

 
 
 
$
1.58

 
 
 
 
 
 
Weighted average common and common equivalent shares:
 
 
 
 
 
Basic
37.0

 
 
 
37.0

Diluted
37.6

 
 
 
37.6



Pro Forma adjustments to the Unaudited Condensed Consolidated Statements of Operations for the year ended December 31, 2017

(a) To eliminate the revenues and directly attributable expenses of our sold France business.
(b) Included within SD&A expenses is $0.9 million of corporate overhead charges formerly charged to our France business.
(c) Included within the provision for income taxes is $0.3 million of estimated tax benefits of the above corporate overhead charges returning to the U.S.
Systemax Inc.
Pro Forma Condensed Consolidated Statements of Operations (Unaudited)
(In millions, except per share amounts)

 
As reported
Six Months Ended June 30,
 
Pro Forma adjustments (a)
 
Pro Forma
 Six Months Ended June 30,
 
2018
 
 
 
2018
Net sales
$
718.3


$
(274.9
)

$
443.4

Cost of sales
520.5


(229.6
)

290.9

Gross profit
197.8


(45.3
)

152.5

Selling, distribution & administrative expenses
152.4


(29.0
)
(b)
123.4

Operating income from continuing operations
45.4


(16.3
)
(b)
29.1

Interest and other (income) expense, net
0.1


0.0


0.1

Income from continuing operations before income taxes
45.3


(16.3
)
(b)
29.0

Provision for income taxes
13.3


(6.1
)
(c)
7.2

Net income (loss) from continuing operations
32.0


(10.2
)

21.8

 
 
 
 
 
 
Net income per common share from continuing operations:
 
 
 
 
 
Basic
$
0.86

 
 
 
$
0.59

Diluted
$
0.84

 
 
 
$
0.58

 
 
 
 
 
 
Weighted average common and common equivalent shares:
 
 
 
 
 
Basic
37.2


 
 
37.2

Diluted
37.9


 
 
37.9


Pro Forma adjustments to the Unaudited Condensed Consolidated Statements of Operations for the six months ended June 30, 2018

(a) To eliminate the revenues and directly attributable expenses of our sold France business.
(b) Included within SD&A expenses is $0.5 million of corporate overhead charges formerly charged to our France business and $0.7 million of deal related accrued professional fees recharged to the sold France business.
(c) Included within the provision for income taxes is $0.1 million of estimated tax impacts of the above corporate overhead charges and deal related professional fees.