Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 29, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'SYSTEMAX INC | ' |
Entity Central Index Key | '0000945114 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 36,718,245 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash | $173.30 | $150.70 |
Accounts receivable, net | 287.7 | 297.4 |
Inventories | 284.6 | 367.2 |
Prepaid expenses and other current assets | 28.9 | 23.5 |
Deferred income taxes | 13.3 | 13.6 |
Total current assets | 787.8 | 852.4 |
Property, plant and equipment, net | 59.3 | 63 |
Deferred income taxes | 29.5 | 30.2 |
Goodwill and intangibles | 10.2 | 11.1 |
Other assets | 5.2 | 5.6 |
Total assets | 892 | 962.3 |
Current liabilities: | ' | ' |
Accounts payable | 346.4 | 405.3 |
Accrued expenses and other current liabilities | 93.6 | 83.5 |
Current portion of long term debt | 2.5 | 2.8 |
Total current liabilities | 442.5 | 491.6 |
Long-term debt | 3.5 | 5.3 |
Other liabilities | 22.5 | 19.1 |
Total liabilities | 468.5 | 516 |
Commitments and contingencies | ' | ' |
Shareholders' equity: | ' | ' |
Preferred stock | 0 | 0 |
Common stock | 0.4 | 0.4 |
Additional paid-in capital | 183.2 | 183 |
Treasury stock | -26.6 | -28.6 |
Retained earnings | 266.5 | 290.5 |
Accumulated other comprehensive income | 0 | 1 |
Total shareholders' equity | 423.5 | 446.3 |
Total liabilities and shareholders' equity | $892 | $962.30 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Condensed Consolidated Statements of Operations (Unaudited) | ' | ' | ' | ' |
Net sales | $791.80 | $847 | $2,478.30 | $2,609.40 |
Cost of sales | 674.1 | 728 | 2,120.90 | 2,241.70 |
Gross profit | 117.7 | 119 | 357.4 | 367.7 |
Selling, general & administrative expenses | 115.7 | 118.9 | 360.2 | 354.7 |
Special charges, net | 5.8 | 2 | 16.5 | 6.1 |
Operating income (loss) from continuing operations | -3.8 | -1.9 | -19.3 | 6.9 |
Foreign currency exchange loss (gain) | -0.9 | -0.1 | -0.5 | 0.9 |
Interest and other income, net | 0 | -0.1 | -0.3 | -0.4 |
Interest expense | 0.3 | 0.4 | 1 | 1.3 |
Income (loss) from continuing operations before income taxes | -3.2 | -2.1 | -19.5 | 5.1 |
Provision for (benefit from) income taxes | 8.4 | -16.1 | 4.5 | -13.9 |
Income (loss) from continuing operations | -11.6 | 14 | -24 | 19 |
Loss from discontinued operations, net of tax | 0 | 0 | 0 | -0.2 |
Net income (loss) | ($11.60) | $14 | ($24) | $18.80 |
Income (loss) from continuing operations per common share: | ' | ' | ' | ' |
Basic | ($0.31) | $0.38 | ($0.65) | $0.51 |
Diluted | ($0.31) | $0.38 | ($0.65) | $0.51 |
Net income (loss) per common share: | ' | ' | ' | ' |
Basic | ($0.31) | $0.38 | ($0.65) | $0.51 |
Diluted | ($0.31) | $0.38 | ($0.65) | $0.51 |
Weighted average shares outstanding: | ' | ' | ' | ' |
Basic | 37 | 37 | 37 | 36.9 |
Diluted | 37 | 37 | 37 | 37 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) [Abstract] | ' | ' | ' | ' |
Net income (loss) | ($11.60) | $14 | ($24) | $18.80 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Foreign currency translation | 7 | 3.9 | -1 | 4 |
Total comprehensive income (loss) | ($4.60) | $17.90 | ($25) | $22.80 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Income (loss) from continuing operations | ($24) | $19 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization | 14.5 | 13.9 |
Asset impairment | 0.8 | 0 |
Provision (benefit) for deferred income taxes | 1.2 | -15.9 |
Provision for returns and doubtful accounts | 2.5 | 3.7 |
Compensation expense related to equity compensation plans | 2.4 | 3.4 |
Excess tax benefit from exercises of stock options | -0.1 | -0.5 |
Loss on dispositions and abandonment | 0.1 | 0 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 9 | -2.3 |
Inventories | 82.7 | 62.2 |
Prepaid expenses and other current assets | -6 | -8.4 |
Accounts payable, accrued expenses and other current liabilities | -47.1 | -27.9 |
Net cash provided by operating activities from continuing operations | 36 | 47.2 |
Net cash used in operating activities from discontinued operations | 0 | -0.4 |
Net cash provided by operating activities | 36 | 46.8 |
Cash flows from investing activities: | ' | ' |
Purchases of property, plant and equipment | -10.2 | -11.3 |
Proceeds from disposals of property, plant and equipment | 0.3 | 0 |
Net cash used in investing activities | -9.9 | -11.3 |
Cash flows from financing activities: | ' | ' |
Repayments of capital lease obligations | -2.1 | -2 |
Proceeds from issuance of common stock | 0.1 | 0.3 |
Excess tax benefit from exercises of stock options | 0.1 | 0.5 |
Net cash used in financing activities | -1.9 | -1.2 |
Effects of exchange rates on cash | -1.6 | 1.9 |
Net increase in cash | 22.6 | 36.2 |
Cash - beginning of period | 150.7 | 97.3 |
Cash - end of period | 173.3 | 133.5 |
Supplemental disclosures of non-cash investing and financing activities: | ' | ' |
Acquisitions of equipment through capital leases | $0 | $1.20 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statement of Shareholders' Equity (Unaudited) (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock, At Cost [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
In Millions, unless otherwise specified | ||||||
Balances at Dec. 31, 2012 | $0.40 | $183 | ($28.60) | $290.50 | $1 | $446.30 |
Balances (in shares) at Dec. 31, 2012 | 36,555 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | 2.4 | ' | ' | ' | ' |
Issuance of restricted stock | ' | -1.7 | 1.6 | ' | ' | ' |
Issuance of restricted stock (in shares) | 130 | ' | ' | ' | ' | ' |
Exercise of stock options | ' | -0.3 | 0.4 | ' | ' | ' |
Exercise of stock options (in shares) | 33 | ' | ' | ' | ' | ' |
Surrender of fully vested options | ' | -0.2 | ' | ' | ' | ' |
Change in cumulative translation adjustment | ' | ' | ' | ' | -1 | -1 |
Net loss | ' | ' | ' | -24 | ' | -24 |
Balances at Sep. 30, 2013 | $0.40 | $183.20 | ($26.60) | $266.50 | $0 | $423.50 |
Balances (in shares) at Sep. 30, 2013 | 36,718 | ' | ' | ' | ' | ' |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended | ||
Sep. 30, 2013 | |||
Basis of Presentation [Abstract] | ' | ||
Basis of Presentation | ' | ||
1 | Basis of Presentation | ||
The accompanying condensed consolidated financial statements of the Company and its wholly-owned subsidiaries are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America are not required in these interim financial statements and have been condensed or omitted. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to current year presentation. | |||
The Company exited the Software Solutions segment in June 2009. One customer remained being served by the Company until the second quarter of 2012. The termination of this customer has resulted in all prior period results for this business segment being classified as discontinued operations. Balance sheet amounts reflecting this change are not shown due to their immateriality. | |||
In the opinion of management, the accompanying condensed consolidated financial statements contain all normal and recurring adjustments necessary to present fairly the financial position of the Company as of September 30, 2013 and the results of operations for the three and nine month periods ended September 30, 2013 and 2012, statements of comprehensive income for the three and nine month periods ended September 30, 2013 and 2012, cash flows for the nine month periods ended September 30, 2013 and 2012 and changes in shareholders' equity for the nine months period ended September 30, 2013. The December 31, 2012 condensed consolidated balance sheet has been derived from the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2012. | |||
These condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements as of December 31, 2012 and for the year then ended included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2012. The results for the nine month period ended September 30, 2013 are not necessarily indicative of the results for the entire year. | |||
Systemax manages its business and reports using a 52-53 week fiscal year that ends at midnight on the Saturday closest to December 31. For clarity of presentation herein, fiscal years and quarters are referred to as if they ended on the traditional calendar month. The actual fiscal second quarter ended on September 28, 2013. The third quarters of both 2013 and 2012 included 13 weeks and the first nine months of both 2013 and 2012 included 39 weeks. |
Net_Income_per_Common_Share
Net Income per Common Share | 9 Months Ended | ||
Sep. 30, 2013 | |||
Net Income per Common Share [Abstract] | ' | ||
Net Income (Loss) per Common Share | ' | ||
2 | Net Income per Common Share | ||
Net income per common share - basic was calculated based upon the weighted average number of common shares outstanding during the respective periods presented using the two class method of computing earnings per share. The two class method was used as the Company has outstanding restricted stock with rights to dividend participation for unvested shares. Net income per common share - diluted was calculated based upon the weighted average number of common shares outstanding and included the equivalent shares for dilutive options and restricted stock awards outstanding during the respective periods, including unvested options. The dilutive effect of outstanding options and restricted stock issued by the Company is reflected in net income per share - diluted using the treasury stock method. Under the treasury stock method, options will only have a dilutive effect when the average market price of common stock during the period exceeds the exercise price of the options. The weighted average number of stock options outstanding included in the computation of diluted earnings (loss) per share was zero shares and a de minimus number of shares for the three months ended September 30, 2013 and 2012, respectively, and zero shares and 0.1 million shares for the nine months ended September 30, 2013 and 2012, respectively. The weighted average number of restricted stock awards included in the computation of diluted earnings (loss) per share was zero shares and a de minimus number of shares for the three months ended September 30, 2013 and 2012, respectively, and zero shares and 0.1 million shares for the nine months ended September 30, 2013 and 2012, respectively. The weighted average number of stock options excluded from the computation of diluted earnings (loss) per share was 1.1 million and 1.5 million shares for the three months ended September 30, 2013 and 2012, respectively, and 1.2 million and 1.0 million shares for the nine months ended September 30, 2013 and 2012, respectively, due to their antidilutive effect. The weighted average number of restricted awards outstanding excluded from the computation of diluted earnings (loss) per share was a de minimus number of shares for the three months ended September 30, 2013 and 2012, respectively, and 0.1 million and zero shares for the nine months ended September 30, 2013 and 2012, respectively, due to their antidilutive effect. |
Credit_Facilities_and_LongTerm
Credit Facilities and Long-Term Debt | 9 Months Ended | ||
Sep. 30, 2013 | |||
Credit Facilities and Long-Term Debt [Abstract] | ' | ||
Credit Facilities and Long-Term Debt | ' | ||
3 | Credit Facilities and Long Term Debt | ||
The Company maintains a $125.0 million (which may be increased to $200.0 million, subject to certain conditions) secured revolving credit agreement with a group of financial institutions which provides for borrowings in the United States. The credit facility has a five year term and expires in October 27, 2015. Availability is subject to a borrowing base formula that takes into account eligible receivables and eligible inventory. Borrowings are secured by substantially all of the Company's assets, including accounts receivable, inventory and certain other assets, subject to limited exceptions. The credit agreement contains certain operating, financial and other covenants, including limits on annual levels of capital expenditures, availability tests related to payments of dividends and stock repurchases and fixed charge coverage tests related to acquisitions; certain of these covenants were amended effective September 28, 2013 to provide the Company greater flexibility. The borrowings under the agreement are subject to borrowing base limitations of up to 85% of eligible accounts receivable and up to 40% of qualified inventories. The interest rate under this facility is computed at applicable market rates based on LIBOR or the Prime Rate, plus an applicable margin. The revolving credit agreement requires that a minimum level of availability be maintained. If such availability is not maintained, the Company will be required to maintain a fixed charge coverage ratio (as defined). The applicable margin varies based on borrowing base availability. As of September 30, 2013, eligible collateral under the agreement was $110.5 million, total availability was $105.6 million, total outstanding letters of credit were $4.9 million and there were no outstanding borrowings. The Company was in compliance with all of the covenants under this facility, as amended, as of September 30, 2013. | |||
The Company (through a subsidiary) has an outstanding Bond financing with the Development Authority of Jefferson, Georgia (the "Authority"). The Bonds were issued by the Authority and purchased by GE Government Finance Inc., and mature on October 1, 2018. The proceeds from the Bond were used to finance capital equipment purchased for the Company's distribution facility located in Jefferson, Georgia. The purchase and installation of the equipment for the facility was completed by December 31, 2011. Pursuant to the transaction, the Company transferred to the Authority, for consideration consisting of the Bonds proceeds, ownership of the equipment and the Authority leased the equipment to the Company's subsidiary pursuant to a capital equipment lease expiring October 1, 2018. Under the capital equipment lease the Company has the right to acquire ownership of the equipment at any time for a purchase price sufficient to pay off all principal and interest on the Bonds, plus $1.00. As of September 30, 2013 there was approximately $4.6 million outstanding against this financing facility. | |||
The Company has outstanding capital lease obligations of $1.4 million at September 30, 2013. |
Special_charges
Special charges | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Special charges [Abstract] | ' | ||||||||||||
Special charges | ' | ||||||||||||
4 | Special Charges, Net | ||||||||||||
The Company's Industrial Products segment has recorded reorganization costs related to the 2012 closing and relocation of a small distribution center to a new, significantly larger distribution and call center. The balance of the restructuring reserve is included in the Condensed Consolidated Balance Sheet within accrued expenses and other current liabilities and other liabilities. The Company does not anticipate incurring any additional material costs related to this closing and relocation. | |||||||||||||
The following table details the associated liabilities related to the Industrial Products special charges (in millions): | |||||||||||||
Workforce reductions and Personnel Costs | Other Exit Costs | Total | |||||||||||
Balance January 1, 2013 | $ | 0.2 | $ | 1.6 | $ | 1.8 | |||||||
Charged to expense/(benefit) | 0.1 | (0.1 | ) | 0 | |||||||||
Paid or otherwise settled | (0.1 | ) | (0.1 | ) | (0.2 | ) | |||||||
Balance September 30, 2013 | $ | 0.2 | $ | 1.4 | $ | 1.6 | |||||||
The Company's Technology Products segment incurred special charges in the third quarter of 2013 of approximately $5.8 million. These charges included $3.8 million for lease termination costs (present value of contractual gross lease payments net of estimated sublease rental income, or settlement amount) and $1.5 million for fixed asset write offs related to the closing of underperforming retail stores, $0.2 million in European workforce reduction costs, $0.2 million of legal and professional fees related to the previously disclosed completed investigation and settlement with a former officer and director and $0.1 million in continuing recruitment costs of the European shared services center. For the nine month period ended September 30, 2013, the Technology Products segment incurred approximately $16.5 million of special charges. These charges included approximately $4.8 million for lease termination costs and $2.0 million for fixed asset write offs related to the closing of underperforming retail stores, $4.5 million in workforce reductions and other exit costs related to the shared services center implementation and other European workforce reductions, $2.2 million of workforce reduction charges for senior management changes in the North American operations, $1.8 million related to start up costs of the European shared services center and $0.1 million in continuing recruitment costs of the European shared services center, $0.6 million for reserve adjustments related to the facility closing and exit from the PC manufacturing business and $0.5 million of additional legal and professional fees related to the previously disclosed completed investigation and settlement with a former officer and director. The balance of the workforce reduction costs and retail store closing liabilities are included in the Condensed Consolidated Balance Sheet within accrued expenses and other current liabilities and other non-current liabilities. | |||||||||||||
The following table details the associated liabilities related to the Technology Products segment special charges (in millions): | |||||||||||||
Workforce reductions and Personnel Costs | Other Exit Costs | Total | |||||||||||
Balance January 1, 2013 | $ | 4.3 | $ | - | $ | 4.3 | |||||||
Charged to expense | 6.3 | 6 | 12.3 | ||||||||||
Paid or otherwise settled | (3.4 | ) | (0.2 | ) | (3.6 | ) | |||||||
Balance September 30, 2013 | $ | 7.2 | $ | 5.8 | $ | 13 |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
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 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. | |||||||||||||||||||||||||||||||||
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 incurs 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 primarily, as a result of the Industrial Products segment spending more on advertising and promotion than the Technology Products segment. Additionally, the Industrial Products segment's vendors generally do not provide funding to offset its marketing expenses. | |||||||||||||||||||||||||||||||||
Financial information relating to the Company's operations by reportable segment was as follows (in millions): | |||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||||||||||||
Technology Products | $ | 665 | $ | 735.4 | $ | 2,124.30 | $ | 2,302.20 | |||||||||||||||||||||||||
Industrial Products | 125.7 | 110.4 | 349.9 | 303.6 | |||||||||||||||||||||||||||||
Corporate and Other | 1.1 | 1.2 | 4.1 | 3.6 | |||||||||||||||||||||||||||||
Consolidated | $ | 791.8 | $ | 847 | $ | 2,478.30 | $ | 2,609.40 | |||||||||||||||||||||||||
Operating income (loss) from continuing operations: | |||||||||||||||||||||||||||||||||
Technology Products | $ | (9.9 | ) | $ | (3.8 | ) | (33.4 | ) | 1.6 | ||||||||||||||||||||||||
Industrial Products | 10.8 | 7.6 | 30.4 | 22.9 | |||||||||||||||||||||||||||||
Corporate and Other | (4.7 | ) | (5.7 | ) | (16.3 | ) | (17.6 | ) | |||||||||||||||||||||||||
Consolidated | $ | (3.8 | ) | $ | (1.9 | ) | (19.3 | ) | 6.9 | ||||||||||||||||||||||||
Financial information relating to the Company's operations by geographic area was as follows (in millions): | |||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||||||||||||
United States | $ | 491 | $ | 532.8 | $ | 1,528.30 | $ | 1,619.10 | |||||||||||||||||||||||||
United Kingdom | 114.3 | 124.9 | 352 | 373.2 | |||||||||||||||||||||||||||||
Other Europe | 138.4 | 139 | 448.9 | 463.7 | |||||||||||||||||||||||||||||
Other North America | 48.1 | 50.3 | 149.1 | 153.4 | |||||||||||||||||||||||||||||
Consolidated | $ | 791.8 | $ | 847 | $ | 2,478.30 | $ | 2,609.40 | |||||||||||||||||||||||||
Net sales 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 millions): | |||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||
2013 | % | 2012 | % | 2013 | % | 2012 | % | ||||||||||||||||||||||||||
Product Category: | |||||||||||||||||||||||||||||||||
Computers | $ | 246.5 | 31.1 | % | $ | 251.5 | 29.7 | % | $ | 758.9 | 30.6 | % | $ | 751.2 | 28.8 | % | |||||||||||||||||
Computer accessories & software | 205.6 | 26 | % | 234.4 | 27.7 | % | 662.3 | 26.7 | % | 731.3 | 28 | % | |||||||||||||||||||||
Industrial products | 125.7 | 15.9 | % | 110.4 | 13 | % | 349.9 | 14.1 | % | 303.6 | 11.6 | % | |||||||||||||||||||||
Consumer electronics | 107.7 | 13.6 | % | 129.4 | 15.3 | % | 361 | 14.6 | % | 443.7 | 17 | % | |||||||||||||||||||||
Computer components | 83.3 | 10.5 | % | 93.1 | 11 | % | 277.1 | 11.2 | % | 300.9 | 11.6 | % | |||||||||||||||||||||
Other | 23 | 2.9 | % | 28.2 | 3.3 | % | 69.1 | 2.8 | % | 78.7 | 3 | % | |||||||||||||||||||||
Consolidated | $ | 791.8 | 100 | % | $ | 847 | 100 | % | $ | 2,478.30 | 100 | % | $ | 2,609.40 | 100 | % | |||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |
Sep. 30, 2013 | ||
Fair Value Measurements [Abstract] | ' | |
Fair Value Measurements | ' | |
6 | Fair Value Measurements | |
Financial instruments consist primarily of investments in cash, trade accounts receivable, debt and accounts payable. The Company estimates the fair value of financial instruments based on interest rates available to the Company and by comparison to quoted market prices. At September 30, 2013 and 2012, the carrying amounts of cash, accounts receivable and accounts payable are considered to be representative of their respective fair values due to their short-term nature. The Company's debt is considered to representative of its fair value because of its variable interest rate. | ||
The fair value of goodwill and non-amortizing intangibles is measured on a non-recurring basis in connection with the Company's annual impairment testing. For goodwill, the fair value of the reporting unit to which the goodwill has been assigned is determined using a discounted cash flow model. A discounted cash flow model is also used to determine fair value of indefinite-lived intangibles using projected cash flows of the intangible. Unobservable inputs related to these discounted cash flow models include projected sales growth, same store sales growth, gross margin percentages, new business opportunities, working capital requirements, capital expenditures and growth in selling, general and administrative expense and are classified within Level 3 of the valuation hierarchy. |
Legal_Proceedings
Legal Proceedings | 9 Months Ended | ||
Sep. 30, 2013 | |||
Legal Proceedings [Abstract] | ' | ||
Legal Proceedings | ' | ||
7 | Legal Proceedings | ||
The Company and its subsidiaries are involved in various lawsuits, claims, investigations and proceedings, including commercial, employment, consumer, personal injury and health and safety law matters, which are being handled and defended in the ordinary course of business. In addition, the Company is subject to various assertions, claims, proceedings and requests for indemnification concerning intellectual property matters, including patent infringement suits involving technologies that are generally used in e-commerce or that are incorporated in a broad spectrum of products the Company sells. The Company is also audited by (or has initiated voluntary disclosure agreements with) numerous governmental agencies in various countries, including U.S. Federal and state authorities, concerning potential income tax, sales tax and unclaimed property liabilities. These matters are in various stages of investigation, negotiation and/or litigation, and are being vigorously defended. In this regard, the state of Pennsylvania has claimed that certain of the Company's consumer electronics e-commerce sales are subject to sales tax in Pennsylvania. The Company intends to vigorously defend this matter and believes it has strong defenses. The Company is also being audited by an entity representing 45 states seeking recovery of "unclaimed property" which related liability has been included in the Condensed Consolidated Balance Sheet within accounts payable. The Company is complying with the audit and is providing requested information. | |||
Although the Company does not expect, based on currently available information, that the outcome in any of these matters, individually or collectively, will have a material adverse effect on its financial condition or results of operations, the ultimate outcome is inherently unpredictable. Therefore, judgments could be rendered or settlements entered, that could adversely affect the Company's operating results or cash flows in a particular period. The Company routinely assesses all of its litigation and threatened litigation as to the probability of ultimately incurring a liability, and records its best estimate of the ultimate loss in situations where it assesses the likelihood of loss as probable and estimable. |
Special_charges_Tables
Special charges (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Special charges [Abstract] | ' | ||||||||||||
Liabilities Related to Integration | ' | ||||||||||||
The following table details the associated liabilities related to the Industrial Products special charges (in millions): | |||||||||||||
Workforce reductions and Personnel Costs | Other Exit Costs | Total | |||||||||||
Balance January 1, 2013 | $ | 0.2 | $ | 1.6 | $ | 1.8 | |||||||
Charged to expense/(benefit) | 0.1 | (0.1 | ) | 0 | |||||||||
Paid or otherwise settled | (0.1 | ) | (0.1 | ) | (0.2 | ) | |||||||
Balance September 30, 2013 | $ | 0.2 | $ | 1.4 | $ | 1.6 | |||||||
The following table details the associated liabilities related to the Technology Products segment special charges (in millions): | |||||||||||||
Workforce reductions and Personnel Costs | Other Exit Costs | Total | |||||||||||
Balance January 1, 2013 | $ | 4.3 | $ | - | $ | 4.3 | |||||||
Charged to expense | 6.3 | 6 | 12.3 | ||||||||||
Paid or otherwise settled | (3.4 | ) | (0.2 | ) | (3.6 | ) | |||||||
Balance September 30, 2013 | $ | 7.2 | $ | 5.8 | $ | 13 |
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Segment Information [Abstract] | ' | ||||||||||||||||||||||||||||||||
Financial Information by Reportable Segment | ' | ||||||||||||||||||||||||||||||||
Financial information relating to the Company's operations by reportable segment was as follows (in millions): | |||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||||||||||||
Technology Products | $ | 665 | $ | 735.4 | $ | 2,124.30 | $ | 2,302.20 | |||||||||||||||||||||||||
Industrial Products | 125.7 | 110.4 | 349.9 | 303.6 | |||||||||||||||||||||||||||||
Corporate and Other | 1.1 | 1.2 | 4.1 | 3.6 | |||||||||||||||||||||||||||||
Consolidated | $ | 791.8 | $ | 847 | $ | 2,478.30 | $ | 2,609.40 | |||||||||||||||||||||||||
Operating income (loss) from continuing operations: | |||||||||||||||||||||||||||||||||
Technology Products | $ | (9.9 | ) | $ | (3.8 | ) | (33.4 | ) | 1.6 | ||||||||||||||||||||||||
Industrial Products | 10.8 | 7.6 | 30.4 | 22.9 | |||||||||||||||||||||||||||||
Corporate and Other | (4.7 | ) | (5.7 | ) | (16.3 | ) | (17.6 | ) | |||||||||||||||||||||||||
Consolidated | $ | (3.8 | ) | $ | (1.9 | ) | (19.3 | ) | 6.9 | ||||||||||||||||||||||||
Financial Information by Geographic Area | ' | ||||||||||||||||||||||||||||||||
Financial information relating to the Company's operations by geographic area was as follows (in millions): | |||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||||||||||||
United States | $ | 491 | $ | 532.8 | $ | 1,528.30 | $ | 1,619.10 | |||||||||||||||||||||||||
United Kingdom | 114.3 | 124.9 | 352 | 373.2 | |||||||||||||||||||||||||||||
Other Europe | 138.4 | 139 | 448.9 | 463.7 | |||||||||||||||||||||||||||||
Other North America | 48.1 | 50.3 | 149.1 | 153.4 | |||||||||||||||||||||||||||||
Consolidated | $ | 791.8 | $ | 847 | $ | 2,478.30 | $ | 2,609.40 | |||||||||||||||||||||||||
Financial Information by Product Category Sales | ' | ||||||||||||||||||||||||||||||||
Financial information relating to the Company's entity-wide product category sales was as follows (in millions): | |||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||
2013 | % | 2012 | % | 2013 | % | 2012 | % | ||||||||||||||||||||||||||
Product Category: | |||||||||||||||||||||||||||||||||
Computers | $ | 246.5 | 31.1 | % | $ | 251.5 | 29.7 | % | $ | 758.9 | 30.6 | % | $ | 751.2 | 28.8 | % | |||||||||||||||||
Computer accessories & software | 205.6 | 26 | % | 234.4 | 27.7 | % | 662.3 | 26.7 | % | 731.3 | 28 | % | |||||||||||||||||||||
Industrial products | 125.7 | 15.9 | % | 110.4 | 13 | % | 349.9 | 14.1 | % | 303.6 | 11.6 | % | |||||||||||||||||||||
Consumer electronics | 107.7 | 13.6 | % | 129.4 | 15.3 | % | 361 | 14.6 | % | 443.7 | 17 | % | |||||||||||||||||||||
Computer components | 83.3 | 10.5 | % | 93.1 | 11 | % | 277.1 | 11.2 | % | 300.9 | 11.6 | % | |||||||||||||||||||||
Other | 23 | 2.9 | % | 28.2 | 3.3 | % | 69.1 | 2.8 | % | 78.7 | 3 | % | |||||||||||||||||||||
Consolidated | $ | 791.8 | 100 | % | $ | 847 | 100 | % | $ | 2,478.30 | 100 | % | $ | 2,609.40 | 100 | % | |||||||||||||||||
Basis_of_Presentation_Details
Basis of Presentation (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Basis of Presentation [Abstract] | ' | ' | ' | ' |
Number of weeks in fiscal period, minimum (in weeks) | '52 | ' | '52 | ' |
Number of weeks in fiscal period, maximum (in weeks) | '53 | ' | '53 | ' |
Number of weeks in first quarter (in weeks) | '13 | '13 | ' | ' |
Number of weeks year to date (in weeks) | ' | ' | '39 | '39 |
Net_Income_per_Common_Share_De
Net Income per Common Share (Details) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Restricted Stock [Member] | ' | ' | ' | ' |
Share-based compensation arrangement by share-based payment award [Line Items] | ' | ' | ' | ' |
Weighted average number of awards outstanding for computation of diluted earnings per share (in shares) | 0 | 0 | 0 | 0.1 |
Weighted average number of awards outstanding excluded from the computation of diluted earnings per share (in shares) | 0 | 0 | 0.1 | 0 |
Stock Option [Member] | ' | ' | ' | ' |
Share-based compensation arrangement by share-based payment award [Line Items] | ' | ' | ' | ' |
Weighted average number of awards outstanding for computation of diluted earnings per share (in shares) | 0 | 0 | 0 | 0.1 |
Weighted average number of awards outstanding excluded from the computation of diluted earnings per share (in shares) | 1.1 | 1.5 | 1.2 | 1 |
Credit_Facilities_and_LongTerm1
Credit Facilities and Long-Term Debt (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Line of Credit Facility [Line Items] | ' |
Recovery zone facility bond, maturity date | 1-Oct-18 |
Capital equipment lease maturity date | 1-Oct-18 |
Additional amount to be paid over principal and interest to acquire ownership | $1 |
Long-term debt, outstanding amount | 4,600,000 |
Systemax Inc. [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Secured revolving credit agreement, current borrowing capacity | 125,000,000 |
Secured revolving credit agreement, maximum borrowing capacity | 200,000,000 |
Term of credit facility | '5 years |
Credit facility, maturing date | 27-Oct-15 |
Amendment of certain covenants, effective date | 28-Sep-13 |
Percentage of eligible accounts receivable for borrowings, maximum (in hundredths) | 85.00% |
Percentage of qualified inventories for borrowings, maximum (in hundredths) | 40.00% |
Eligible collateral letters of credit | 110,500,000 |
Availability under line of credit | 105,600,000 |
Total outstanding letters of credit | 4,900,000 |
Outstanding borrowings | 0 |
Capital lease obligations | $1,400,000 |
Special_charges_Details
Special charges (Details) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Industrial Products [Member] | ' | ' |
Special Charges [Abstract] | ' | ' |
Balance beginning of period | ' | $1.80 |
Charged to expense | ' | 0 |
Paid or otherwise settled | ' | -0.2 |
Balance end of period | 1.6 | 1.6 |
Industrial Products [Member] | Workforce and Personnel Costs [Member] | ' | ' |
Special Charges [Abstract] | ' | ' |
Balance beginning of period | ' | 0.2 |
Charged to expense | ' | 0.1 |
Paid or otherwise settled | ' | -0.1 |
Balance end of period | 0.2 | 0.2 |
Industrial Products [Member] | Other Exit Costs [Member] | ' | ' |
Special Charges [Abstract] | ' | ' |
Balance beginning of period | ' | 1.6 |
Charged to expense | ' | -0.1 |
Paid or otherwise settled | ' | -0.1 |
Balance end of period | 1.4 | 1.4 |
Technology Products [Member] | ' | ' |
Special Charges [Abstract] | ' | ' |
Balance beginning of period | ' | 4.3 |
Charged to expense | ' | 12.3 |
Paid or otherwise settled | ' | -3.6 |
Balance end of period | 13 | 13 |
Special charges | ' | 16.5 |
Technology Products [Member] | Workforce and Personnel Costs [Member] | ' | ' |
Special Charges [Abstract] | ' | ' |
Balance beginning of period | ' | 4.3 |
Charged to expense | ' | 6.3 |
Paid or otherwise settled | ' | -3.4 |
Balance end of period | 7.2 | 7.2 |
Special charges | 0.2 | 2.2 |
Technology Products [Member] | Other Exit Costs [Member] | ' | ' |
Special Charges [Abstract] | ' | ' |
Balance beginning of period | ' | 0 |
Charged to expense | ' | 6 |
Paid or otherwise settled | ' | -0.2 |
Balance end of period | 5.8 | 5.8 |
Technology Products [Member] | Closing of Underperforming Retail Stores [Member] | ' | ' |
Special Charges [Abstract] | ' | ' |
Lease termination costs | 3.8 | 4.8 |
Fixed asset write-offs | 1.5 | 2 |
Technology Products [Member] | Legal And Professional Fees [Member] | ' | ' |
Special Charges [Abstract] | ' | ' |
Special charges | 0.2 | 0.5 |
Technology Products [Member] | Workforce Reductions and Other Exit Costs [Member] | ' | ' |
Special Charges [Abstract] | ' | ' |
Special charges | ' | 4.5 |
Technology Products [Member] | European Shared Services Center [Member] | ' | ' |
Special Charges [Abstract] | ' | ' |
Restructuring reserve adjustment | ' | 0.6 |
Initial start-up costs | ' | 1.8 |
Recruitment costs | $0.10 | $0.10 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Number of reportable segments | ' | ' | 2 | ' |
Net sales [Abstract] | ' | ' | ' | ' |
Net sales | $791.80 | $847 | $2,478.30 | $2,609.40 |
Operating income (loss) from continuing operations [Abstract] | ' | ' | ' | ' |
Consolidated operating income (loss) | -3.8 | -1.9 | -19.3 | 6.9 |
Technology Products [Member] | ' | ' | ' | ' |
Net sales [Abstract] | ' | ' | ' | ' |
Net sales | 665 | 735.4 | 2,124.30 | 2,302.20 |
Operating income (loss) from continuing operations [Abstract] | ' | ' | ' | ' |
Consolidated operating income (loss) | -9.9 | -3.8 | -33.4 | 1.6 |
Industrial Products [Member] | ' | ' | ' | ' |
Net sales [Abstract] | ' | ' | ' | ' |
Net sales | 125.7 | 110.4 | 349.9 | 303.6 |
Operating income (loss) from continuing operations [Abstract] | ' | ' | ' | ' |
Consolidated operating income (loss) | 10.8 | 7.6 | 30.4 | 22.9 |
Corporate and Other [Member] | ' | ' | ' | ' |
Net sales [Abstract] | ' | ' | ' | ' |
Net sales | 1.1 | 1.2 | 4.1 | 3.6 |
Operating income (loss) from continuing operations [Abstract] | ' | ' | ' | ' |
Consolidated operating income (loss) | ($4.70) | ($5.70) | ($16.30) | ($17.60) |
Segment_Information_Part_Two_D
Segment Information Part Two (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net sales [Abstract] | ' | ' | ' | ' |
Consolidated net sales | $791.80 | $847 | $2,478.30 | $2,609.40 |
United States [Member] | ' | ' | ' | ' |
Net sales [Abstract] | ' | ' | ' | ' |
Consolidated net sales | 491 | 532.8 | 1,528.30 | 1,619.10 |
United Kingdom [Member] | ' | ' | ' | ' |
Net sales [Abstract] | ' | ' | ' | ' |
Consolidated net sales | 114.3 | 124.9 | 352 | 373.2 |
Other Europe [Member] | ' | ' | ' | ' |
Net sales [Abstract] | ' | ' | ' | ' |
Consolidated net sales | 138.4 | 139 | 448.9 | 463.7 |
Other North America [Member] | ' | ' | ' | ' |
Net sales [Abstract] | ' | ' | ' | ' |
Consolidated net sales | $48.10 | $50.30 | $149.10 | $153.40 |
Segment_Information_Part_Three
Segment Information Part Three (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Product Category [Abstract] | ' | ' | ' | ' |
Consolidated net sales | $791.80 | $847 | $2,478.30 | $2,609.40 |
Consolidated net sales (in hundredths) | 100.00% | 100.00% | 100.00% | 100.00% |
Computers [Member] | ' | ' | ' | ' |
Product Category [Abstract] | ' | ' | ' | ' |
Consolidated net sales | 246.5 | 251.5 | 758.9 | 751.2 |
Consolidated net sales (in hundredths) | 31.10% | 29.70% | 30.60% | 28.80% |
Computer Accessories & Software [Member] | ' | ' | ' | ' |
Product Category [Abstract] | ' | ' | ' | ' |
Consolidated net sales | 205.6 | 234.4 | 662.3 | 731.3 |
Consolidated net sales (in hundredths) | 26.00% | 27.70% | 26.70% | 28.00% |
Industrial Products [Member] | ' | ' | ' | ' |
Product Category [Abstract] | ' | ' | ' | ' |
Consolidated net sales | 125.7 | 110.4 | 349.9 | 303.6 |
Consolidated net sales (in hundredths) | 15.90% | 13.00% | 14.10% | 11.60% |
Consumer Electronics [Member] | ' | ' | ' | ' |
Product Category [Abstract] | ' | ' | ' | ' |
Consolidated net sales | 107.7 | 129.4 | 361 | 443.7 |
Consolidated net sales (in hundredths) | 13.60% | 15.30% | 14.60% | 17.00% |
Computer Components [Member] | ' | ' | ' | ' |
Product Category [Abstract] | ' | ' | ' | ' |
Consolidated net sales | 83.3 | 93.1 | 277.1 | 300.9 |
Consolidated net sales (in hundredths) | 10.50% | 11.00% | 11.20% | 11.60% |
Other [Member] | ' | ' | ' | ' |
Product Category [Abstract] | ' | ' | ' | ' |
Consolidated net sales | $23 | $28.20 | $69.10 | $78.70 |
Consolidated net sales (in hundredths) | 2.90% | 3.30% | 2.80% | 3.00% |