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 is our Chief Executive Officer, and he evaluates operations and allocates resources based on a measure of operating income.

Our operations are organized under three reportable segments—the Business Solutions segment, which serves primarily small- and medium-sized businesses; the Enterprise Solutions segment, which serves primarily medium-to-large corporations; and the Public Sector Solutions segment, which serves primarily federal, state, and local governmental and educational institutions. In addition, 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 and nine months ended September 30, 2018 and 2017 is shown below:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Net sales:
Business Solutions	$	244,872	$	290,569	$	778,192	$	860,622
Enterprise Solutions		265,477		268,022		823,786		823,017
Public Sector Solutions		148,155		170,639		387,991		465,977
Total net sales	$	658,504	$	729,230	$	1,989,969	$	2,149,616
Operating income (loss):
Business Solutions	$	8,173	$	9,543	$	28,303	$	29,430
Enterprise Solutions		13,629		12,389		43,598		35,777
Public Sector Solutions		528		2,793		(2,083)		169
Headquarters/Other		(3,380)		(2,986)		(10,449)		(9,745)
Total operating income		18,950		21,739		59,369		55,631
Interest income (expense), net		114		(8)		412		20
Income before taxes	$	19,064	$	21,731	$	59,781	$	55,651
Selected operating expense:
Depreciation and amortization:
Business Solutions	$	153	$	145	$	481	$	448
Enterprise Solutions		608		519		1,653		1,661
Public Sector Solutions		25		45		91		126
Headquarters/Other		2,848		2,226		8,137		6,410
Total depreciation and amortization	$	3,634	$	2,935	$	10,362	$	8,645
Total assets:
Business Solutions					$	263,678	$	241,030
Enterprise Solutions						423,125		376,001
Public Sector Solutions						69,994		69,162
Headquarters/Other						(6,570)		5,689
Total assets					$	750,227	$	691,882

The assets of our three operating segments presented above consist primarily of accounts receivable, net intercompany receivable, goodwill, and other intangibles. Assets reported under the Headquarters/Other group are managed by corporate headquarters, including cash, inventory, property and equipment, and intercompany balance, net. Total assets for the Headquarters/Other group are presented net of intercompany balance eliminations of $22,989 as of September 30, 2018. 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.