Global Industrial (GIC) 10-Q 30 Oct 20 2020 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2020	Oct. 27, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
Document Transition Report	false
Entity File Number	1-13792
Entity Registrant Name	Systemax Inc
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	11-3262067
Entity Address, Address Line One	11 Harbor Park Drive
Entity Address, City or Town	Port Washington
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11050
City Area Code	516
Local Phone Number	608-7000
Title of 12(b) Security	Common Stock ($.01 par value)
Trading Symbol	SYX
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		37,412,410
Entity Central Index Key	0000945114
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 78.4	$ 97.2
Accounts receivable, net	114	88.2
Inventories	132.3	112.5
Prepaid expenses and other current assets	7.3	6.4
Total current assets	332	304.3
Property, plant and equipment, net	16	17.8
Operating lease right-of-use assets	78.8	59.3
Deferred income taxes	7.8	7.3
Goodwill and intangibles	7.1	7.2
Other assets	1	1
Total assets	442.7	396.9
Current liabilities:
Accounts payable	129.1	115.9
Accrued expenses and other current liabilities	52	34
Operating lease liabilities	9.1	9.9
Total current liabilities	190.2	159.8
Deferred income tax liability	0.1	0.1
Other liabilities	4.9	2.8
Operating lease liabilities	79.4	58.7
Total liabilities	274.6	221.4
Commitments and contingencies
Shareholders’ equity:
Preferred stock	0	0
Common stock	0.4	0.4
Additional paid-in capital	192.9	189.7
Treasury stock	(26.4)	(20.4)
Retained (deficit) earnings	(1.9)	2.8
Accumulated other comprehensive income	3.1	3
Total shareholders’ equity	168.1	175.5
Total liabilities and shareholders’ equity	$ 442.7	$ 396.9

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
Net sales	$ 285.7	$ 243.9	$ 755.1	$ 724.7
Cost of sales	183.4	159.5	491.3	474
Gross profit	102.3	84.4	263.8	250.7
Selling, distribution & administrative expenses	70.9	66.7	200.8	199.8
Special charges	0	(0.8)	0	(0.8)
Operating income from continuing operations	31.4	18.5	63	51.7
Interest and other (income) expense, net	(0.1)	0.1	0.1	0
Income from continuing operations before income taxes	31.5	18.4	62.9	51.7
Provision for income taxes	7.4	4.7	15.2	13.1
Net income from continuing operations	24.1	13.7	47.7	38.6
Net income (loss) from discontinued operations	0.5	(1)	1.5	(1.6)
Net income	$ 24.6	$ 12.7	$ 49.2	$ 37
Net income per common share from continuing operations:
Basic (in dollars per share)	$ 0.64	$ 0.36	$ 1.26	$ 1.03
Diluted (in dollars per share)	0.64	0.36	1.26	1.02
Net income (loss) per common share from discontinued operations:
Basic (in dollars per share)	0.01	(0.03)	0.04	(0.04)
Diluted (in dollars per share)	0.01	(0.03)	0.04	(0.04)
Net income per common share:
Net income per share - Basic (in dollars per share)	0.65	0.33	1.30	0.99
Net income per share - Diluted (in dollars per share)	$ 0.65	$ 0.33	$ 1.30	$ 0.98
Weighted average common and common equivalent shares:
Basic (in shares)	37.5	37.5	37.6	37.4
Diluted (in shares)	37.6	38	37.7	37.9
Dividends declared (in dollars per share)	$ 0.14	$ 0.12	$ 1.42	$ 0.36

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 24.6	$ 12.7	$ 49.2	$ 37
Other comprehensive income:
Foreign currency translation	0.3	0	0.1	0.1
Total comprehensive income	$ 24.9	$ 12.7	$ 49.3	$ 37.1

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net income from continuing operations	$ 47.7	$ 38.6
Adjustments to reconcile income from continuing operations to net cash provided by (used in) operating activities:
Depreciation and amortization	3.1	3
Other non-cash benefit	0	(0.7)
Provision for doubtful accounts	1.4	0.4
Stock-based compensation	3.5	4
Provision for deferred taxes	(0.5)	(0.5)
Changes in operating assets and liabilities:
Accounts receivable	(27.3)	(13)
Inventories	(19.9)	5.1
Prepaid expenses and other assets	(3.1)	(3)
Income taxes payable	4.5	7.2
Accounts payable	14.1	18.7
Accrued expenses, other current liabilities and other liabilities	18	5.1
Net cash provided by operating activities from continuing operations	41.5	64.9
Net cash provided by operating activities from discontinued operations	0.9	0
Net cash provided by operating activities	42.4	64.9
Cash flows from investing activities:
Purchases of property, plant and equipment	(1.2)	(6.2)
Net cash used in investing activities	(1.2)	(6.2)
Cash flows from financing activities:
Dividends paid	(53.9)	(257.1)
Proceeds from issuance of common stock	0.5	0.8
Payment of payroll taxes on stock-based compensation through shares withheld	(0.4)	(0.9)
Proceeds from the issuance of common stock from employee stock purchase plan	0.8	0.8
Repurchase of treasury shares	(7)	0
Net cash used in financing activities	(60)	(256.4)
Effects of exchange rates on cash	0	(0.1)
Net decrease in cash	(18.8)	(197.8)
Cash and cash equivalents – beginning of period	97.2	295.4
Cash and cash equivalents – end of period	78.4	97.6
Right-of-use assets obtained in exchange for lease obligations, operating leases	$ 27.6	$ 15.4

Condensed Consolidated Statem_4

Condensed Consolidated Statement of Shareholders' Equity (Unaudited) - USD ($) $ in Millions	Total	Common Stock	Additional Paid-in Capital	Treasury Stock	Retained (Deficit) Earnings	Accumulated Other Comprehensive Income
Beginning Balance (in shares) at Dec. 31, 2018		37,335,000
Beginning Balance at Dec. 31, 2018	$ 137.7	$ 0.4	$ 187	$ (25.1)	$ (27.6)	$ 3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	1.5		1.5
Issuance of restricted stock (in shares)		103,000
Issuance of restricted stock	0		(1.8)	1.8
Stock withheld for employee taxes (in shares)		(34,000)
Stock withheld for employee taxes	(0.8)			(0.8)
Proceeds from issuance of common stock (in shares)		3,000
Proceeds from issuance of common stock	0
Issuance of shares under employee stock purchase plan (in shares)		21,000
Issuance of shares under employee stock purchase plan	0.4		0.4
Dividends	(4.5)				(4.5)
Net income	9.7				9.7
Ending Balance (in shares) at Mar. 31, 2019		37,428,000
Ending Balance at Mar. 31, 2019	144	$ 0.4	187.1	(24.1)	(22.4)	3
Beginning Balance (in shares) at Dec. 31, 2018		37,335,000
Beginning Balance at Dec. 31, 2018	137.7	$ 0.4	187	(25.1)	(27.6)	3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Change in cumulative translation adjustment	0.1
Net income	37
Ending Balance (in shares) at Sep. 30, 2019		37,526,000
Ending Balance at Sep. 30, 2019	165.9	$ 0.4	189.5	(22.9)	(4.2)	3.1
Beginning Balance (in shares) at Mar. 31, 2019		37,428,000
Beginning Balance at Mar. 31, 2019	144	$ 0.4	187.1	(24.1)	(22.4)	3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	1.3		1.3
Issuance of restricted stock (in shares)		6,000
Issuance of restricted stock	0
Stock withheld for employee taxes (in shares)		(1,000)
Stock withheld for employee taxes	0
Proceeds from issuance of common stock (in shares)		53,000
Proceeds from issuance of common stock	0.6		(0.3)	0.9
Dividends	(4.5)				(4.5)
Change in cumulative translation adjustment	0.1					0.1
Net income	14.6				14.6
Ending Balance (in shares) at Jun. 30, 2019		37,486,000
Ending Balance at Jun. 30, 2019	156.1	$ 0.4	188.1	(23.2)	(12.3)	3.1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	1.2		1.2
Stock withheld for employee taxes (in shares)		(4,000)
Stock withheld for employee taxes	(0.1)			(0.1)
Proceeds from issuance of common stock (in shares)		21,000
Proceeds from issuance of common stock	0.2		(0.2)	0.4
Issuance of shares under employee stock purchase plan (in shares)		23,000
Issuance of shares under employee stock purchase plan	0.4		0.4
Dividends	(4.6)				(4.6)
Change in cumulative translation adjustment	0
Net income	12.7				12.7
Ending Balance (in shares) at Sep. 30, 2019		37,526,000
Ending Balance at Sep. 30, 2019	165.9	$ 0.4	189.5	(22.9)	(4.2)	3.1
Beginning Balance (in shares) at Dec. 31, 2019		37,679,000
Beginning Balance at Dec. 31, 2019	175.5	$ 0.4	189.7	(20.4)	2.8	3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	1		1
Issuance of restricted stock (in shares)		36,000
Issuance of restricted stock	0		(0.6)	0.6
Stock withheld for employee taxes (in shares)		(15,000)
Stock withheld for employee taxes	(0.3)			(0.3)
Proceeds from issuance of common stock (in shares)		30,000
Proceeds from issuance of common stock	0.3		(0.2)	0.5
Issuance of shares under employee stock purchase plan (in shares)		23,000
Issuance of shares under employee stock purchase plan	0.4		0.4
Dividends	(43.3)				(43.3)
Repurchase of treasury shares (in shares)		(233,000)
Repurchase of treasury shares	(3.9)			(3.9)
Change in cumulative translation adjustment	(0.2)					(0.2)
Net income	8.2				8.2
Ending Balance (in shares) at Mar. 31, 2020		37,520,000
Ending Balance at Mar. 31, 2020	137.7	$ 0.4	190.3	(23.5)	(32.3)	2.8
Beginning Balance (in shares) at Dec. 31, 2019		37,679,000
Beginning Balance at Dec. 31, 2019	$ 175.5	$ 0.4	189.7	(20.4)	2.8	3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchase of treasury shares (in shares)	(392,337)
Repurchase of treasury shares	$ (7.2)
Change in cumulative translation adjustment	0.1
Net income	49.2				49.2
Ending Balance (in shares) at Sep. 30, 2020		37,409,000
Ending Balance at Sep. 30, 2020	168.1	$ 0.4	192.9	(26.4)	(1.9)	3.1
Beginning Balance (in shares) at Mar. 31, 2020		37,520,000
Beginning Balance at Mar. 31, 2020	137.7	$ 0.4	190.3	(23.5)	(32.3)	2.8
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	0.8		0.8
Issuance of restricted stock (in shares)		5,000
Issuance of restricted stock	0		(0.1)	0.1
Dividends	(5.3)				(5.3)
Repurchase of treasury shares (in shares)		(50,000)
Repurchase of treasury shares	(0.9)			(0.9)
Net income	16.4				16.4
Ending Balance (in shares) at Jun. 30, 2020		37,475,000
Ending Balance at Jun. 30, 2020	148.7	$ 0.4	191	(24.3)	(21.2)	2.8
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	1.7		1.7
Stock withheld for employee taxes (in shares)		(5,000)
Stock withheld for employee taxes	(0.1)			(0.1)
Proceeds from issuance of common stock (in shares)		21,000
Proceeds from issuance of common stock	0.2		(0.2)	0.4
Issuance of shares under employee stock purchase plan (in shares)		27,000
Issuance of shares under employee stock purchase plan	0.4		0.4
Dividends	$ (5.3)				(5.3)
Repurchase of treasury shares (in shares)	(108,887)	(109,000)
Repurchase of treasury shares	$ (2.4)			(2.4)
Change in cumulative translation adjustment	0.3					0.3
Net income	24.6				24.6
Ending Balance (in shares) at Sep. 30, 2020		37,409,000
Ending Balance at Sep. 30, 2020	$ 168.1	$ 0.4	$ 192.9	$ (26.4)	$ (1.9)	$ 3.1

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements of Systemax Inc., with its subsidiaries, (the "Company") 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. Systemax Inc., through its operating subsidiaries, is primarily a direct marketer of brand name and private label industrial and business equipment and supplies in North America going to market through a system of branded e-commerce websites and relationship marketers. Systemax operates and is internally managed in one reportable business segment. The Company sells a wide array of industrial and general hard goods and supplies and to a lesser extent products that would fall into the generally recognizable category of maintenance, repair and operations ("MRO"), markets the Company has served since 1949. Because of the large number of products and product categories the Company offers, providing information on the amount of revenue derived from transactions with external customers for each product or groupings of product is impractical. Included in discontinued operations is the Company’s former North American Technology Group ("NATG") business, which was sold in December 2015 and has been winding down its operations since then. Accordingly, these components and any related results of operations are reflected in discontinued operations. For the three and nine month periods ended September 30, 2020, net income from the NATG business totaled $0.5 million and $1.5 million, respectively, and for the three and nine month periods ended September 30, 2019, net loss from the NATG business totaled $1.0 million and $1.6 million, respectively. 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, 2020 and the results of operations for the three and nine month periods ended September 30, 2020 and 2019, statements of comprehensive income (loss) for the three and nine month periods ended September 30, 2020 and 2019, cash flows for the nine month periods ended September 30, 2020 and 2019 and changes in shareholders’ equity for the three and nine month periods ended September 30, 2020 and 2019. The December 31, 2019 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, 2019. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements as of December 31, 2019 and for the year then ended included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019. The results for the nine month period ended September 30, 2020 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 26, 2020 and September 28, 2019. The third quarters of both 2020 and 2019 included 13 weeks and the first nine months of both 2020 and 2019 included 39 weeks. Related Party Transactions During 2020, the Company made inventory purchases of approximately $2.7 million from an entity owned by immediate family members of the Company's Executive Chairman. Amounts outstanding at September 30, 2020 totaled $0.6 million and are recorded in Accounts payable in the accompanying Condensed Consolidated Balance Sheet. During 2020, the Company recorded approximately $0.5 million in legal fee expense from a law firm which employs an immediate family member of one of the Company's Vice Chairman. There was a de minimis amount of outstanding payables to this entity at September 30, 2020. Also in 2020, the Company had sales of approximately $0.4 million to an entity that has on its parent company's board of trustees one of the Company's Board members. All of the foregoing transactions were carried out on an arm's length basis and with prior approval of the Company's Nominating and Corporate Governance Committee. Recent Accounting Pronouncements Public companies in the United States are subject to the accounting and reporting requirements of various authorities, including the Financial Accounting Standards Board (“FASB”) and the Securities and Exchange Commission (“SEC”). These authorities issue numerous pronouncements, most of which are not applicable to the Company’s current or reasonably foreseeable operating structure. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU clarifies and simplifies accounting for income taxes by eliminating certain exceptions for intraperiod tax allocation principles and the methodology for calculating income tax rates in an interim period, among other updates. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company will adopt this ASU effective January 1, 2021. The Company believes the adoption of this pronouncement will not have a material impact on the Company's financial position or results of operations.

Revenue

Revenue	9 Months Ended
	Sep. 30, 2020
Revenue from Contract with Customer [Abstract]
Revenue	Revenue The Company’s revenue is shown as “Net sales” in the accompanying Condensed Consolidated Statements of Operations and is measured as the determined transaction price, net of any variable consideration consisting primarily of rights to return product. The Company has elected to treat freight and shipping and handling revenues as activities to fulfill its performance obligation. Billings for freight and shipping and handling are recorded in net sales and costs of freight and shipping and handling are recorded in cost of sales in the accompanying Condensed Consolidated Statements of Operations. The Company will record a contract liability in cases where customers pay in advance of the Company satisfying its performance obligation. The Company did not have any material unsatisfied performance obligations or contract liabilities as of September 30, 2020. The Company offers customers rights to return product within a certain time, usually 30 days. The Company estimates its sales returns liability quarterly, based upon its historical returns rates, as a percentage of historical sales for the trailing twelve-month period. The total accrued sales returns liability was approximately $2.4 million and $1.9 million at September 30, 2020 and December 31, 2019, respectively, and was recorded as a refund liability in Accrued expenses and other current liabilities in the accompanying Condensed Consolidated Balance Sheets. Disaggregation of Revenues The Company believes its presentation of revenue by geography most reasonably depicts how the nature, amount, timing and uncertainty of the Company's revenue and cash flows are affected by economic and industry factors, including fluctuations in exchange rates between the U.S. and Canada. The following table presents the Company's revenue, from continuing operations, by geography for the three and nine months ended September 30, 2020 and September 30, 2019, respectively (in millions): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Net sales: United States $ 270.3 $ 232.8 $ 711.6 $ 690.3 Canada 15.4 11.1 43.5 34.4 Consolidated $ 285.7 $ 243.9 $ 755.1 $ 724.7

Credit Losses

Credit Losses	9 Months Ended
	Sep. 30, 2020
Receivables [Abstract]
Credit Losses	Credit Losses On January 1, 2020 the Company adopted ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326). The Company's trade accounts receivable are subject to this standard. The adoption of this ASU did not have a material impact on the Company's financial position or results of operations. The Company’s trade accounts receivable is one portfolio comprised of commercial businesses operating in the U.S. and to a much lesser extent, Canada. The Company develops its allowances for credit losses, which represent an estimate of expected losses over the remaining contractual life of its receivables, considering customer financial condition, historical loss experience with its customers, current market economic conditions and forecasts of future economic conditions when appropriate. When the Company becomes aware of a customer's inability to meet its financial obligation, a specific reserve is recorded to reduce the receivable to the expected amount to be collected. For the balance of its trade receivables, the Company uses a loss rate method to estimate its credit loss reserve. Historical loss experience rates are calculated using receivable write offs over a trailing twelve-month period and comparing that to the average receivable balances over the same period. That rate is applied to the current accounts receivable portfolio, excluding accounts that have been specifically reserved. Any write offs incurred are recorded against the established reserves. The Company grants credit to commercial business customers using an electronic application process that evaluates the customer's detailed credit report, reference responses, availability under credit facilities, existing liens, tenure of management and business history, among other factors. Credit terms are typically net 30 days payment required with larger businesses eligible for up to net 90 day terms, if qualified. The following is a rollforward of the allowances for credit losses related to trade accounts receivable for the nine months ended September 30, 2020: September 30, 2020 Balance at beginning of period $ 1.2 Current period provision 1.4 Write-offs (0.6) Balance at end of period $ 2.0

Discontinued Operations and Spe

Discontinued Operations and Special (Gains) Charges	9 Months Ended
	Sep. 30, 2020
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations and Special (Gains) Charges	Discontinued Operations and Special (Gains) Charges The Company’s discontinued operations include the results of the NATG business sold in December 2015 (See Note 1). In the third quarter ended September 30, 2020, the Company's NATG discontinued operations recorded approximately $0.8 million in vendor settlements offset by approximately $0.1 million in facility costs and professional fees and recorded approximately $0.2 million for the provision for income taxes. For the nine months ended September 30, 2020, the Company received approximately $1.9 million in restitution receipts and recorded approximately $0.9 million in vendor settlements offset by approximately $0.8 million of facility costs and professional fees and recorded approximately $0.5 million for the provision for income taxes. The Company expects that total additional exit charges related to discontinued operations after this quarter may aggregate up to $0.5 million. The Company has not incurred any special charges in 2020 in continuing operations. During the third quarter of 2019, the Company's former German branch recorded special gains of approximately $0.8 million related to the settlement of its outstanding lease obligation. The following table details liabilities related to the exit costs of the sold businesses that remain as of September 30, 2020 (in millions): Accrued exit costs Balance January 1, 2020 $ 2.8 Charged to expense 0.2 Paid or otherwise settled (0.4) Balance September 30, 2020 $ 2.6 The following table details liabilities related to the exit costs of the sold businesses that remained for 2019 (in millions): Accrued exit costs Balance January 1, 2019 $ 2.8 Charged to expense 0.7 Paid or otherwise settled (0.7) Balance December 31, 2019 $ 2.8

Net Income (Loss) per Common Sh

Net Income (Loss) per Common Share	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Net Income (Loss) per Common Share	Net Income (Loss) per Common ShareNet 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. Undistributed net income is allocated between common shares outstanding and participating securities to the extent that each security may share in earnings as if all of the earnings for the period had been distributed. Undistributed net losses are not allocated to our participating securities as these participating securities do not have a contractual obligation to share in losses. 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 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 following table presents the computation of basic and diluted net income (loss) per share under the two-class method for the three and nine months ended September 30, 2020 and 2019 (in millions, except for per share amounts): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Net income from continuing operations $ 24.1 $ 13.7 $ 47.7 $ 38.6 Less: Distributed net income available to participating securities 0.0 0.0 (0.3) (0.1) Less: Undistributed net income available to participating securities (0.1) (0.1) 0.0 (0.1) Numerator for basic net income per share: Undistributed and distributed net income available to common shareholders $ 24.0 $ 13.6 $ 47.4 $ 38.4 Add: Undistributed net income allocated to participating securities 0.1 0.1 0.0 0.1 Less: Undistributed net income reallocated to participating securities (0.1) (0.1) 0.0 0.0 Numerator for diluted net income per share: Undistributed and distributed net income available to common shareholders $ 24.0 $ 13.6 $ 47.4 $ 38.5 Denominator: Weighted average shares outstanding for basic net income per share 37.5 37.5 37.6 37.4 Effect of dilutive securities 0.1 0.5 0.1 0.5 Weighted average shares outstanding for diluted net income per share 37.6 38.0 37.7 37.9 Net income per share from continuing operations: Basic $ 0.64 $ 0.36 $ 1.26 $ 1.03 Diluted $ 0.64 $ 0.36 $ 1.26 $ 1.02 Net income (loss) from discontinued operations $ 0.5 $ (1.0) $ 1.5 $ (1.6) Net income (loss) per share from discontinued operations: Basic $ 0.01 $ (0.03) $ 0.04 $ (0.04) Diluted $ 0.01 $ (0.03) $ 0.04 $ (0.04) Net income per share: Basic $ 0.65 $ 0.33 $ 1.30 $ 0.99 Diluted $ 0.65 $ 0.33 $ 1.30 $ 0.98 Potentially dilutive securities 0.5 0.5 0.5 0.4 Potentially dilutive securities attributable to outstanding stock options, restricted stock units, and performance share units excluded from the calculation of diluted earnings per share where the combined exercise price and average unamortized fair value are greater than the average market price of Systemax Inc.'s common stock, and their inclusion would be anti-dilutive.

Credit Facilities

Credit Facilities	9 Months Ended
	Sep. 30, 2020
Line of Credit Facility [Abstract]
Credit Facilities	Credit Facilities The Company maintains a $75 million secured revolving credit facility with one financial institution, which has a five year term, maturing on October 28, 2021 and provides for borrowings in the United States. 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.  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 borrowings under the agreement are subject to borrowing base limitations of up to 85% of eligible accounts receivable and the inventory advance rate computed as the lesser of 60% or 85% of the net orderly liquidation value (“NOLV”). Borrowings are secured by substantially all of the Borrower’s assets, as defined, including all accounts, accounts receivable, inventory and certain other assets, subject to limited exceptions, including the exclusion of certain foreign assets from the collateral. The interest rate under the amended and restated facility is computed at applicable market rates based on the London interbank offered rate (“LIBOR”), the Federal Reserve Bank of New York (“NYFRB”) or the Prime Rate, plus an applicable margin. The applicable margin varies based on borrowing base availability. As of September 30, 2020, eligible collateral under the credit agreement was $75.0 million, total availability was $73.0 million, total outstanding letters of credit were $1.6 million, total excess availability was $71.4 million and there were no outstanding borrowings. The Company was in compliance with all of the covenants of the credit agreement in place as of September 30, 2020.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements On January 1, 2020 the Company adopted ASU 2018-13, Fair Value Measurements (Topic 820). The adoption of this ASU did not have a material impact on the Company's financial position or results of operations. Fair value accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value standards establish the fair value hierarchy to prioritize the inputs used in valuation techniques. There are three levels to the fair value hierarchy (Level 1 is the highest priority and Level 3 is the lowest priority): Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. Level 3 - Unobservable inputs which are supported by little or no market activity Financial instruments consist primarily of investments in cash, trade accounts receivable, debt and accounts payable. The Company determines the fair value of financial instruments based on interest rates available to the Company. At September 30, 2020 and 2019, 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. Cash is classified as Level 1 within the fair value hierarchy. The fair value with respect to goodwill is measured in connection with the Company’s annual impairment testing. The Company operates in one reporting unit and performs a quantitative assessment of its goodwill by comparing the Company's fair market value, or market capitalization, to the carrying value of the Company, including goodwill, to determine if impairment exists. Any excess of the carrying amount over fair value would be charged to impairment expense. Long-lived assets are assets used in the Company’s operations and include definite-lived intangible assets, leasehold improvements, warehouse and similar property used to generate sales and cash flows. Long-lived assets are tested for impairment utilizing a recoverability test. The recoverability test compares the carrying value of an asset group to the undiscounted cash flows directly attributable to the asset group over the life of the primary asset. If the undiscounted cash flows of an asset group is less than the carrying value of the asset group, the fair value of the asset group is then measured. If the fair value is also determined to be less than the carrying value of the asset group, the asset group is impaired.

Stock Repurchases

Stock Repurchases	9 Months Ended
	Sep. 30, 2020
Equity [Abstract]
Stock Repurchases	Stock Repurchases In July 2018 the Company's Board of Directors approved a share repurchase program with a repurchase authorization of up to two million shares of the Company's common stock. During the third quarter of 2020, the Company repurchased 108,887 common shares for approximately $2.4 million and for the nine months ended September 30, 2020, the Company repurchased 392,337 common shares for $7.2 million under its share repurchase authorization.

Legal Proceedings

Legal Proceedings	9 Months Ended
	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Legal Proceedings	Legal Proceedings The Company and its subsidiaries are from time to time involved in various lawsuits, claims, investigations and proceedings which may include commercial, employment, tax, customs and trade, customer, vendor, personal injury, products liability, products regulation and labelling, creditors rights and health and safety law matters, including workers compensation claims, which are handled and defended in the ordinary course of business. Certain of these matters are covered by the Company’s insurance policies, subject to customary deductibles. In addition, the Company is from time to time subjected to various assertions, claims, proceedings and requests for damages and/or indemnification concerning sales channel practices and intellectual property matters, including patent infringement suits involving technologies that are incorporated in a broad spectrum of products the Company sells or that are incorporated in the Company’s e-commerce sales channels, as well as trademark/copyright infringement claims. The Company is also audited by (or has initiated voluntary disclosure agreements with) various U.S. Federal and state authorities, as well as Canadian authorities, concerning potential income tax, sales tax and/or "unclaimed property" liabilities. These matters are in various stages of investigation, negotiation and/or litigation. The Company's NATG subsidiaries are being audited by an entity representing 28 states seeking recovery of “unclaimed property” and has received separate demands from 20 states requesting payments of their claimed amounts. The Company is complying with the unclaimed property audit, is providing requested information and has corresponded with the states regarding possible further discussions. The Company intends to vigorously defend these matters and believes it has strong defenses. 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 position 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 regularly 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. In this regard, the Company establishes accrual estimates for its various lawsuits, claims, investigations and proceedings when it is probable that an asset has been impaired or a liability incurred at the date of the financial statements and the loss can be reasonably estimated. At September 30, 2020 the Company has established accruals for certain of its various lawsuits, claims, investigations and proceedings based upon estimates of the most likely outcome in a range of loss or the minimum amounts in a range of loss if no amount within a range is a more likely estimate. The Company does not believe that at September 30, 2020 any reasonably possible losses in excess of the amounts accrued would be material to the financial statements.

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Accounting	The accompanying condensed consolidated financial statements of Systemax Inc., with its subsidiaries, (the "Company") 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.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Public companies in the United States are subject to the accounting and reporting requirements of various authorities, including the Financial Accounting Standards Board (“FASB”) and the Securities and Exchange Commission (“SEC”). These authorities issue numerous pronouncements, most of which are not applicable to the Company’s current or reasonably foreseeable operating structure. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU clarifies and simplifies accounting for income taxes by eliminating certain exceptions for intraperiod tax allocation principles and the methodology for calculating income tax rates in an interim period, among other updates. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company will adopt this ASU effective January 1, 2021. The Company believes the adoption of this pronouncement will not have a material impact on the Company's financial position or results of operations.
Revenue	The Company’s revenue is shown as “Net sales” in the accompanying Condensed Consolidated Statements of Operations and is measured as the determined transaction price, net of any variable consideration consisting primarily of rights to return product. The Company has elected to treat freight and shipping and handling revenues as activities to fulfill its performance obligation. Billings for freight and shipping and handling are recorded in net sales and costs of freight and shipping and handling are recorded in cost of sales in the accompanying Condensed Consolidated Statements of Operations. The Company will record a contract liability in cases where customers pay in advance of the Company satisfying its performance obligation. The Company did not have any material unsatisfied performance obligations or contract liabilities as of September 30, 2020.
Trade Accounts Receivable Allowance for Credit Losses	On January 1, 2020 the Company adopted ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326). The Company's trade accounts receivable are subject to this standard. The adoption of this ASU did not have a material impact on the Company's financial position or results of operations. The Company’s trade accounts receivable is one portfolio comprised of commercial businesses operating in the U.S. and to a much lesser extent, Canada. The Company develops its allowances for credit losses, which represent an estimate of expected losses over the remaining contractual life of its receivables, considering customer financial condition, historical loss experience with its customers, current market economic conditions and forecasts of future economic conditions when appropriate. When the Company becomes aware of a customer's inability to meet its financial obligation, a specific reserve is recorded to reduce the receivable to the expected amount to be collected. For the balance of its trade receivables, the Company uses a loss rate method to estimate its credit loss reserve. Historical loss experience rates are calculated using receivable write offs over a trailing twelve-month period and comparing that to the average receivable balances over the same period. That rate is applied to the current accounts receivable portfolio, excluding accounts that have been specifically reserved. Any write offs incurred are recorded against the established reserves.

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Sep. 30, 2020
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table presents the Company's revenue, from continuing operations, by geography for the three and nine months ended September 30, 2020 and September 30, 2019, respectively (in millions): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Net sales: United States $ 270.3 $ 232.8 $ 711.6 $ 690.3 Canada 15.4 11.1 43.5 34.4 Consolidated $ 285.7 $ 243.9 $ 755.1 $ 724.7

Credit Losses (Tables)

Credit Losses (Tables)	9 Months Ended
	Sep. 30, 2020
Receivables [Abstract]
Allowance For Credit Losses On Trade Accounts Receivable	The following is a rollforward of the allowances for credit losses related to trade accounts receivable for the nine months ended September 30, 2020: September 30, 2020 Balance at beginning of period $ 1.2 Current period provision 1.4 Write-offs (0.6) Balance at end of period $ 2.0

Discontinued Operations and S_2

Discontinued Operations and Special (Gains) Charges (Tables)	9 Months Ended
	Sep. 30, 2020
Discontinued Operations and Disposal Groups [Abstract]
Special Charge Liabilities	The following table details liabilities related to the exit costs of the sold businesses that remain as of September 30, 2020 (in millions): Accrued exit costs Balance January 1, 2020 $ 2.8 Charged to expense 0.2 Paid or otherwise settled (0.4) Balance September 30, 2020 $ 2.6 The following table details liabilities related to the exit costs of the sold businesses that remained for 2019 (in millions): Accrued exit costs Balance January 1, 2019 $ 2.8 Charged to expense 0.7 Paid or otherwise settled (0.7) Balance December 31, 2019 $ 2.8

Net Income (Loss) per Common _2

Net Income (Loss) per Common Share (Tables)	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table presents the computation of basic and diluted net income (loss) per share under the two-class method for the three and nine months ended September 30, 2020 and 2019 (in millions, except for per share amounts): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Net income from continuing operations $ 24.1 $ 13.7 $ 47.7 $ 38.6 Less: Distributed net income available to participating securities 0.0 0.0 (0.3) (0.1) Less: Undistributed net income available to participating securities (0.1) (0.1) 0.0 (0.1) Numerator for basic net income per share: Undistributed and distributed net income available to common shareholders $ 24.0 $ 13.6 $ 47.4 $ 38.4 Add: Undistributed net income allocated to participating securities 0.1 0.1 0.0 0.1 Less: Undistributed net income reallocated to participating securities (0.1) (0.1) 0.0 0.0 Numerator for diluted net income per share: Undistributed and distributed net income available to common shareholders $ 24.0 $ 13.6 $ 47.4 $ 38.5 Denominator: Weighted average shares outstanding for basic net income per share 37.5 37.5 37.6 37.4 Effect of dilutive securities 0.1 0.5 0.1 0.5 Weighted average shares outstanding for diluted net income per share 37.6 38.0 37.7 37.9 Net income per share from continuing operations: Basic $ 0.64 $ 0.36 $ 1.26 $ 1.03 Diluted $ 0.64 $ 0.36 $ 1.26 $ 1.02 Net income (loss) from discontinued operations $ 0.5 $ (1.0) $ 1.5 $ (1.6) Net income (loss) per share from discontinued operations: Basic $ 0.01 $ (0.03) $ 0.04 $ (0.04) Diluted $ 0.01 $ (0.03) $ 0.04 $ (0.04) Net income per share: Basic $ 0.65 $ 0.33 $ 1.30 $ 0.99 Diluted $ 0.65 $ 0.33 $ 1.30 $ 0.98 Potentially dilutive securities 0.5 0.5 0.5 0.4

Basis of Presentation (Details)

Basis of Presentation (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)business_segment	Sep. 30, 2019USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of reportable segments | business_segment			1
Net income (loss) from discontinued operations	$ 0.5	$ (1)	$ 1.5	$ (1.6)
Immediate Family Member of Management or Principal Owner
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue from related party			0.4
Inventory Purchases | Immediate Family Member of Management or Principal Owner
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Purchases from related party			2.7
Due to Related Parties	0.6		0.6
Legal Fees | Immediate Family Member of Management or Principal Owner
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Expenses from transaction with related party			0.5
Discontinued Operations - Disposed of by Sale | NATG
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net income (loss) from discontinued operations	$ 0.5	$ (1)	$ 1.5	$ (1.6)

Revenue (Details)

Revenue (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Disaggregation of Revenue [Line Items]
Performance obligation	$ 0		$ 0
Accrued sales returns	2.4		2.4		$ 1.9
Revenue from contracts with customers	285.7	$ 243.9	755.1	$ 724.7
United States
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	270.3	232.8	711.6	690.3
Canada
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 15.4	$ 11.1	$ 43.5	$ 34.4

Credit Losses (Details)

Credit Losses (Details) $ in Millions	9 Months Ended
	Sep. 30, 2020USD ($)
Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	$ 1.2
Current period provision	1.4
Write-offs	(0.6)
Balance at end of period	$ 2

Discontinued Operations and S_3

Discontinued Operations and Special (Gains) Charges - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Provision for income taxes	$ 7.4	$ 4.7	$ 15.2	$ 13.1
Special charges (settlement)	0	$ (0.8)	0	$ (0.8)
Discontinued Operations - Disposed of by Sale | NATG
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Vendor settlements	0.8		0.9
Facility costs and professional fees	0.1		0.8
Provision for income taxes	0.2		0.5
Restitution receipts			1.9
Discontinued Operations - Disposed of by Sale | NATG | Maximum
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Additional charges (less than)	$ 0.5		$ 0.5

Discontinued Operations and S_4

Discontinued Operations and Special (Gains) Charges - Special Charges Liabilities (Details) - Lease Liabilities and Other Exit Costs - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Restructuring Reserve [Roll Forward]
Beginning Balance	$ 2.8	$ 2.8
Charged to expense	0.2	0.7
Paid or otherwise settled	(0.4)	(0.7)
Ending Balance	$ 2.6	$ 2.8

Net Income (Loss) per Common _3

Net Income (Loss) per Common Share - Schedule of Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Earnings Per Share [Abstract]
Net income from continuing operations	$ 24.1	$ 13.7	$ 47.7	$ 38.6
Less: Distributed net income available to participating securities	0	0	(0.3)	(0.1)
Less: Undistributed net income available to participating securities	(0.1)	(0.1)	0	(0.1)
Numerator for basic net income per share:
Undistributed and distributed net income available to common shareholders	24	13.6	47.4	38.4
Add: Undistributed net income allocated to participating securities	0.1	0.1	0	0.1
Less: Undistributed net income reallocated to participating securities	(0.1)	(0.1)	0	0
Numerator for diluted net income per share:
Undistributed and distributed net income available to common shareholders	$ 24	$ 13.6	$ 47.4	$ 38.5
Weighted average shares outstanding for basic net income per share (in shares)	37.5	37.5	37.6	37.4
Effect of dilutive securities (in shares)	0.1	0.5	0.1	0.5
Weighted average shares outstanding for diluted net income per share (in shares)	37.6	38	37.7	37.9
Net income per share from continuing operations:
Net income per share from continuing operations, basic (USD per share)	$ 0.64	$ 0.36	$ 1.26	$ 1.03
Net income per share from continuing operations, diluted (USD per share)	$ 0.64	$ 0.36	$ 1.26	$ 1.02
Net income (loss) from discontinued operations	$ 0.5	$ (1)	$ 1.5	$ (1.6)
Net income (loss) per share from discontinued operations:
Net income per share from discontinued operations, basic (USD per share)	$ 0.01	$ (0.03)	$ 0.04	$ (0.04)
Net income per share from discontinued operations, diluted (USD per share)	0.01	(0.03)	0.04	(0.04)
Net income per share - Basic (in dollars per share)	0.65	0.33	1.30	0.99
Net income per share - Diluted (in dollars per share)	$ 0.65	$ 0.33	$ 1.30	$ 0.98
Potentially dilutive securities (in shares)	0.5	0.5	0.5	0.4

Credit Facilities (Details)

Credit Facilities (Details) - Revolving Credit Facility	9 Months Ended
	Sep. 30, 2020USD ($)financial_institution
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 75,000,000
Number of financial institutions | financial_institution	1
Revolving credit facility, term	5 years
Percentage of inventory advance rate computed	60.00%
Percentage of inventory advance rate of net orderly liquidation value	85.00%
Eligible collateral under the credit facility	$ 75,000,000
Availability under line of credit	73,000,000
Total outstanding letters of credit	1,600,000
Total excess availability	71,400,000
Outstanding borrowings	$ 0
Maximum
Line of Credit Facility [Line Items]
Percentage of eligible accounts receivable for borrowings	85.00%

Fair Value Measurements (Detail

Fair Value Measurements (Details)	9 Months Ended
	Sep. 30, 2020reporting_unit
Fair Value Disclosures [Abstract]
Number of reporting units	1

Stock Repurchases (Details)

Stock Repurchases (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2020	Jul. 31, 2018
Equity [Abstract]
Number of shares authorized to be repurchased (in shares)					2,000,000
Shares repurchased (in shares)	108,887			392,337
Shares repurchased, value	$ 2.4	$ 0.9	$ 3.9	$ 7.2

Legal Proceedings (Details)

Legal Proceedings (Details)	Sep. 30, 2020state
Commitments and Contingencies Disclosure [Abstract]
Number of states seeking recovery of unclaimed property	28
Number of states requesting payment	20