CompUSA 2015 Annual Report Download - page 7

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Table of Contents
Asaresult of thesaleof the NATG business toPCMand the wind downofNATGremaining operations, asofthe date of thisfiling, the NATG business is
discontinuedandtheCompany’sbusinessisnowcomprisedofIPG,EMEAandCorporateandother.ForadiscussionoftheaccountingfortheMarch2015exit
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
StatementsincludedinItem15ofthisForm10-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 ourown design and marketed under the trademarks: Global™, GlobalIndustrial.com™,
Nexel™ Relius™, Relius Elite™ and Hercules™. Industrialproductsaccountedfor38%,26%and24%ofournetsalesfromcontinuingoperationsin2015,2014
and2013,respectivelyreportedonaU.S.GenerallyAcceptedAccountingPrinciples(“GAAP”)basis.
Technology Products – EMEA
EMEAsellsproductscategorizedasInformation andCommunicationTechnology(“ICT”)andConsumerElectronics(“CE”).Theseproductsaremarketedin
Europe.  Substantially all of these products are manufactured by other companies.   EMEA  accounted for 57%, 57% and 56% of our GAAP net sales from
continuingoperationsin2015,2014and2013,respectively.
Technology Products – NATG
NATGsoldICTandCEproducts.TheseproductsweremarketedinNorthAmerica.Substantiallyalloftheseproductsweremanufacturedbyothercompanies;
however,theCompanydidofferaselectionofproductsthatweremanufacturedforourowndesignandmarketedonaprivatelabelbasis.NATGaccountedfor
5%,17%and20%ofourGAAPnetsalesfromcontinuingoperationsin2015,2014and2013,respectively.
SeeNote2andNote13totheConsolidatedFinancialStatementsincludedinItem15ofthisForm10-Kforadditionalfinancialinformationaboutourbusinessas
wellasinformationaboutourgeographicoperations.
TheCompanywasincorporatedinDelawarein1995.CertainpredecessorbusinesseswhichnowconstitutepartoftheCompanyhavebeeninbusinesssince1949.
Ourheadquartersofficeislocatedat11HarborParkDrive,PortWashington,NewYork.
Products
Weofferoveramillionbrandnameandprivatelabelproducts.Weendeavortoexpandandkeepcurrentthebreadthofourproductofferingsinordertofulfillthe
increasinglywiderangeofproductneedsofourcustomers.
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&groundsmaintenance;packaging&supplies;plumbingsupplies;pneumatics&hydraulics;rawmaterial&buildingsupply;safety&security;
storageandshelving;toolsandinstruments;vehiclemaintenanceandworkbenchandshopdesks.
ICTproductsofferedbyourEMEAsegmentinclude:computer&mobiledevices;computerparts&memory;servers–storage&backup;computercomponents
and accessories; networking & security; software; electronics and commercial and home networking.  CE products includeTV and video; audio; cameras and
surveillance;GPS;cellphones;videogamesandtoys;homeandelectronicsaccessories.
Sales and Marketing
We market our products primarily B2B, which includefor-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
businessalsomarketeditsproductstoindividualconsumers(“B2C”).
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