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Asaresult of thesaleof the NATG business toPCMand the wind downofNATGremaining operations, asofthe date of thisfiling, the NATG business is
discontinuedandtheCompany’sbusinessisnowcomprisedofIPG,EMEAandCorporateandother.ForadiscussionoftheaccountingfortheMarch2015exit
from our retail store operations and the December 2015 sale and winding down of the NATG business, see Note 1and Note 2 to the Consolidated Financial
StatementsincludedinItem15ofthisForm10-K.
Industrial Products
IPG sells a wide array of MRO products which are marketed in North America. Most of these products are manufactured by other companies; however, the
Company does offer a selection of products that are manufactured for ourown design and marketed under the trademarks: Global™, GlobalIndustrial.com™,
Nexel™ Relius™, Relius Elite™ and Hercules™. Industrialproductsaccountedfor38%,26%and24%ofournetsalesfromcontinuingoperationsin2015,2014
and2013,respectivelyreportedonaU.S.GenerallyAcceptedAccountingPrinciples(“GAAP”)basis.
Technology Products – EMEA
EMEAsellsproductscategorizedasInformation andCommunicationTechnology(“ICT”)andConsumerElectronics(“CE”).Theseproductsaremarketedin
Europe. Substantially all of these products are manufactured by other companies. EMEA accounted for 57%, 57% and 56% of our GAAP net sales from
continuingoperationsin2015,2014and2013,respectively.
Technology Products – NATG
NATGsoldICTandCEproducts.TheseproductsweremarketedinNorthAmerica.Substantiallyalloftheseproductsweremanufacturedbyothercompanies;
however,theCompanydidofferaselectionofproductsthatweremanufacturedforourowndesignandmarketedonaprivatelabelbasis.NATGaccountedfor
5%,17%and20%ofourGAAPnetsalesfromcontinuingoperationsin2015,2014and2013,respectively.
SeeNote2andNote13totheConsolidatedFinancialStatementsincludedinItem15ofthisForm10-Kforadditionalfinancialinformationaboutourbusinessas
wellasinformationaboutourgeographicoperations.
TheCompanywasincorporatedinDelawarein1995.CertainpredecessorbusinesseswhichnowconstitutepartoftheCompanyhavebeeninbusinesssince1949.
Ourheadquartersofficeislocatedat11HarborParkDrive,PortWashington,NewYork.
Products
Weofferoveramillionbrandnameandprivatelabelproducts.Weendeavortoexpandandkeepcurrentthebreadthofourproductofferingsinordertofulfillthe
increasinglywiderangeofproductneedsofourcustomers.
MRO products offered by our IPG segment include electrical & bulbs; fasteners & hardware; foodservice & appliances; furniture & office; HVAC/R fans;
janitorial & maintenance; material handling; medical & laboratory equipment; metalworking & cutting tools; motors & power transmission; office & school
supplies;outdoor&groundsmaintenance;packaging&supplies;plumbingsupplies;pneumatics&hydraulics;rawmaterial&buildingsupply;safety&security;
storageandshelving;toolsandinstruments;vehiclemaintenanceandworkbenchandshopdesks.
ICTproductsofferedbyourEMEAsegmentinclude:computer&mobiledevices;computerparts&memory;servers–storage&backup;computercomponents
and accessories; networking & security; software; electronics and commercial and home networking. CE products includeTV and video; audio; cameras and
surveillance;GPS;cellphones;videogamesandtoys;homeandelectronicsaccessories.
Sales and Marketing
We market our products primarily B2B, which includefor-profit businesses, educational organizations and government entities. We have developed numerous
proprietary customer and prospect databases. We have established a multi-faceted direct marketing system to business customers, consisting primarily of our
relationship marketers, catalog mailings and proprietary internet websites, the combination of which is intended to maximize sales. Our discontinued NATG
businessalsomarketeditsproductstoindividualconsumers(“B2C”).
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