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SEGMENT AND RELATED DISCLOSURES
 3 Months Ended
Mar. 31, 2016
Segment and Related Disclosures [Abstract]  
Segment and Related Disclosures

Note 3–Segment and Related Disclosures

 

The internal reporting structure used by our chief operating decision maker (“CODM”) to assess performance and allocate resources determines the basis for our reportable operating segments.  Our CODM evaluates operations and allocates resources based on a measure of operating income.

 

Our operations are organized under three reportable segments—the SMB segment, which serves primarily small- and medium-sized businesses; the Large Account segment, which serves primarily medium-to-large corporations; and the Public Sector segment, which serves primarily federal, state, and local governmental and educational institutions.  The Headquarters/Other group provides services in areas such as finance, human resources, information technology, marketing, and product management.  Most of the operating costs associated with the Headquarters/Other group functions are charged to the operating segments based on their estimated usage of the underlying functions.  We report these charges to the operating segments as “Allocations.”  Certain headquarters costs relating to executive oversight and other fiduciary functions that are not allocated to the operating segments are included under the heading of Headquarters/Other in the tables below.

 

Segment information applicable to our reportable operating segments for the three months ended March 31, 2016 and 2015 is shown below:

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31, 

 

March 31, 

 

 

    

2016

    

2015

 

Net sales:

 

 

 

 

 

 

 

SMB

 

$
261,246

 

$
249,874

 

Large Account

 

 
200,109

 

 
209,459

 

Public Sector

 

 
111,039

 

 
121,926

 

Total net sales

 

$
572,394

 

$
581,259

 

Operating income (loss):

 

 

 

 

 

 

 

SMB

 

$
11,321

 

$
9,331

 

Large Account

 

 
7,190

 

 
8,475

 

Public Sector

 

 
(150)

 

 
(595)

 

Headquarters/Other

 

 
(3,197)

 

 
(3,032)

 

Total operating income

 

 
15,164

 

 
14,179

 

Interest expense

 

 
(14)

 

 
1

 

Income before taxes

 

$
15,150

 

$
14,180

 

Selected operating expense:

 

 

 

 

 

 

 

Depreciation and amortization:

 

 

 

 

 

 

 

SMB

 

$
9

 

$
5

 

Large Account

 

 
306

 

 
329

 

Public Sector

 

 
40

 

 
40

 

Headquarters/Other

 

 
2,061

 

 
1,818

 

Total depreciation and amortization

 

$
2,416

 

$
2,192

 

Total assets:

 

 

 

 

 

 

 

SMB

 

$
213,807

 

 

 

 

Large Account

 

 
285,339

 

 

 

 

Public Sector

 

 
44,508

 

 

 

 

Headquarters/Other

 

 
26,825

 

 

 

 

Total assets

 

$
570,479

 

 

 

 

 

The assets of our three operating segments presented above consist primarily of accounts receivable, intercompany receivable, goodwill, and other intangibles.  Assets reported under the Headquarters/Other group are managed by corporate headquarters, including cash, inventory, and property and equipment.  Total assets for the Headquarters/Other group are presented net of intercompany balance eliminations of $12,205 as of March 31, 2016.  Our capital expenditures consist largely of IT hardware and software purchased to maintain or upgrade our management information systems.  These information systems serve all of our segments, to varying degrees, and accordingly, our CODM does not evaluate capital expenditures on a segment basis.