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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2011	Mar. 28, 2012	Jun. 30, 2011
Document and Entity Information [Abstract]
Entity Registrant Name	PFSWEB INC
Entity Central Index Key	0001095315
Document Type	10-K
Document Period End Date	Dec. 31, 2011
Amendment Flag	false
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 57,121,109
Entity Common Stock, Shares Outstanding		12,782,907

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2011	Dec. 31, 2010
CURRENT ASSETS:
Cash and cash equivalents	$ 17,695	$ 18,430
Restricted cash	827	1,853
Accounts receivable, net of allowance for doubtful accounts of $663 and $754 at December 31, 2011 and 2010, respectively	52,679	41,438
Inventories, net of reserves of $1,555 and $1,561 at December 31, 2011 and 2010, respectively	30,487	35,161
Assets of discontinued operations	0	2,776
Other receivables	11,915	14,539
Prepaid expenses and other current assets	4,697	3,580
Total current assets	118,300	117,777
PROPERTY AND EQUIPMENT, net	14,945	9,124
ASSETS OF DISCONTINUED OPERATIONS	0	1,126
OTHER ASSETS	3,127	2,203
Total assets	136,372	130,230
CURRENT LIABILITIES:
Current portion of long-term debt and capital lease obligations	23,939	18,320
Trade accounts payable	48,544	55,692
Deferred revenue	6,766	5,254
Accrued expenses	18,657	15,870
Total current liabilities	97,906	95,136
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS, less current portion	3,583	2,136
OTHER LIABILITIES	6,809	3,608
Total liabilities	108,298	100,880
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Preferred stock, $1.00 par value; 1,000,000 shares authorized; none issued and outstanding
Common stock, $0.001 par value; 35,000,000 shares authorized; 12,782,907 and 12,255,064 shares issued at December 31, 2011 and 2010, respectively; and 12,764,546 and 12,236,703 outstanding at December 31, 2011 and 2010, respectively	13	12
Additional paid-in capital	104,645	101,229
Accumulated deficit	(77,898)	(73,332)
Accumulated other comprehensive income	1,399	1,526
Treasury stock at cost, 18,361 shares	(85)	(85)
Total shareholders' equity	28,074	29,350
Total liabilities and shareholders' equity	$ 136,372	$ 130,230

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2011	Dec. 31, 2010
Consolidated Balance Sheets [Abstract]
Allowance for doubtful accounts	$ 663	$ 754
Inventory reserves	$ 1,555	$ 1,561
Preferred stock, par value	$ 1.00	$ 1.00
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	35,000,000	35,000,000
Common stock, shares issued	12,782,907	12,255,064
Common stock, shares outstanding	12,764,546	12,236,703
Treasury stock, shares	18,361	18,361

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
REVENUES:
Product revenue, net	$ 162,447	$ 174,613
Service fee revenue	95,345	70,636
Pass-through revenue	40,974	29,267
Total revenues	298,766	274,516
COSTS OF REVENUES:
Cost of product revenue	150,738	162,485
Cost of service fee revenue	71,751	51,144
Cost of pass-through revenue	40,974	29,267
Total costs of revenues	263,463	242,896
Gross profit	35,303	31,620
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES, including stock based compensation expense of $1,402 and $809 in the years ended December 31, 2011 and 2010, respectively	37,512	33,611
Loss from operations	(2,209)	(1,991)
INTEREST EXPENSE, net	1,085	940
Loss from continuing operations before income taxes	(3,294)	(2,931)
INCOME TAX EXPENSE	380	463
LOSS FROM CONTINUING OPERATIONS	(3,674)	(3,394)
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX	(892)	(3,975)
NET LOSS	$ (4,566)	$ (7,369)
LOSS PER SHARE FROM CONTINUING OPERATIONS:
Basic	$ (0.29)	$ (0.30)
Diluted	(0.29)	(0.30)
LOSS PER SHARE FROM DISCONTINUED OPERATIONS:
Basic	(0.07)	(0.35)
Diluted	(0.07)	(0.35)
NET LOSS PER SHARE:
Basic	(0.36)	(0.65)
Diluted	$ (0.36)	$ (0.65)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:
Basic	12,574	11,310
Diluted	12,574	11,310

Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Consolidated Statements of Operations [Abstract]
Stock-based compensation expense	$ 1,402	$ 809

Consolidated Statements of Shareholders' Equity and Comprehensive Loss - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Comprehensive Loss
Balance at Dec. 31, 2009	$ 29,353	$ 10	$ 93,152	$ (65,963)	$ 2,239	$ (85)
Balance, shares at Dec. 31, 2009		9,952,164				18,361
Net loss	(7,369)			(7,369)			$ (7,369)
Stock-based compensation expense	809		809
Employee stock purchase plan	4		4
Employee stock purchase plan, shares		2,900
Issuance of common stock	7,266	$ 2	7,264
Issuance of common stock, shares		2,300,000
Other comprehensive income-- foreign currency translation adjustment	(713)				(713)		(713)
Comprehensive loss							(8,082)
Balance at Dec. 31, 2010	29,350	$ 12	101,229	(73,332)	1,526	$ (85)
Balance, shares at Dec. 31, 2010		12,255,064				18,361
Net loss	(4,566)			(4,566)			(4,566)
Stock-based compensation expense	1,402		1,402
Issuance of common stock	2,015	$ 1	2,014
Issuance of common stock, shares		527,843
Other comprehensive income-- foreign currency translation adjustment	(127)				(127)		(127)
Comprehensive loss							$ (4,693)
Balance at Dec. 31, 2011	$ 28,074	$ 13	$ 104,645	$ (77,898)	$ 1,399	$ (85)
Balance, shares at Dec. 31, 2011		12,782,907				18,361

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (4,566)	$ (7,369)
Loss from discontinued operations	(892)	(3,975)
Loss from continuing operations	(3,674)	(3,394)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	6,344	6,060
Provision for doubtful accounts	(11)	156
Provision for excess and obsolete inventory	187	233
Deferred income taxes	70	(33)
Stock-based compensation expense	1,402	809
Changes in operating assets and liabilities:
Restricted cash	185	35
Accounts receivable	(11,500)	(2,984)
Inventories, net	3,394	(2,709)
Prepaid expenses, other receivables and other assets	989	(1,545)
Accounts payable, deferred revenue, accrued expenses and other liabilities	(106)	6,128
Net cash provided by (used in) continuing operating activities	(2,720)	2,756
Net cash provided by discontinued operating activities	1,875	715
Net cash provided by (used in) operating activities	(845)	3,471
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(7,550)	(3,774)
Proceeds from sale of eCOST subsidiary	2,327
Net cash used in investing activities	(5,223)	(3,774)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of common stock	2,015	7,270
Decrease in restricted cash	841	208
Payments on capital lease obligations	(1,110)	(1,215)
Proceeds from (payments on) debt, net	3,535	(1,987)
Net cash provided by financing activities	5,281	4,276
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS	52	(355)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(735)	3,618
CASH AND CASH EQUIVALENTS, beginning of year	18,430	14,812
CASH AND CASH EQUIVALENTS, end of year	17,695	18,430
Non-cash investing and financing activities:
Property and equipment acquired under debt and capital leases	$ 4,801	$ 1,258

Overview

12 Months Ended

Dec. 31, 2011

Overview [Abstract]

Overview

1. Overview

PFSweb, Inc. and its subsidiaries, including Supplies Distributors, Inc., and PFSweb Retail Connect, Inc., are collectively referred to as the “Company;” “Supplies Distributors” refers to Supplies Distributors, Inc. and its subsidiaries; “Retail Connect” refers to PFSweb Retail Connect, Inc.; and “PFSweb” refers to PFSweb, Inc. and its subsidiaries excluding Supplies Distributors and Retail Connect. In connection with the sale of certain of the assets of eCOST.com, Inc. (“eCOST”) described below, the name of eCOST was changed to PFSweb Retail Connect, Inc. in March 2011.

PFSweb Overview

PFSweb is an international business process outsourcing provider of end-to-end eCommerce solutions to major brand name companies seeking to optimize their supply chain and to enhance their traditional and online business channels and initiatives in the United States, Canada, and Europe. PFSweb offers a broad range of service offerings that include digital marketing, eCommerce technologies, order management, customer care, logistics and fulfillment, financial management and professional consulting

Supplies Distributors Overview

Supplies Distributors, PFSweb and InfoPrint Solutions Company (“IPS”), a wholly-owned subsidiary of Ricoh Company Limited (“Ricoh”), have entered into master distributor agreements under which Supplies Distributors acts as a master distributor of various products, primarily IPS product.

Supplies Distributors has obtained certain financing (see Notes 3 and 4) that allows it to fund the working capital requirements for the sale of primarily IPS products. Pursuant to the transaction management services agreements between PFSweb and Supplies Distributors, PFSweb provides to Supplies Distributors transaction management and fulfillment services, such as managed web hosting and maintenance, procurement support, web-enabled customer contact center services, customer relationship management, financial services including billing and collection services, information management, and international distribution services. Supplies Distributors does not have its own sales force and relies upon IPS’s sales force and product demand generation activities for its sale of IPS products. Supplies Distributors sells its products in the United States, Canada and Europe.

All of the agreements between PFSweb and Supplies Distributors were made in the context of a related party relationship and were negotiated in the overall context of PFSweb’s and Supplies Distributors’ arrangement with IPS. Although management believes the terms of these agreements are generally consistent with fair market values, there can be no assurance that the prices charged to or by each company under these arrangements are not higher or lower than the prices that may be charged by, or to, unaffiliated third parties for similar services. All of these transactions are eliminated upon consolidation.

eCOST Overview

Until February 2011, the Company operated eCOST primarily as a multi-category online discount retailer of new, “close-out” and recertified brand-name merchandise, which sold products primarily to customers in the United States. In February 2011 the Company sold substantially all of the inventory and certain intangible assets of the eCOST discount retailer business unit for a cash purchase price of $2.3 million (before expenses of approximately $0.2 million) and the assumption by the purchaser of certain limited liabilities of eCOST. The purchase price represented approximately $1 million for inventory and the balance for the intangible assets. In connection with the closing of this business unit, the Company incurred exit costs of approximately $0.4 million related to employee termination costs, excess property and equipment and certain contract termination costs. The Company also recorded approximately $0.3 million in early exist costs associated with an eCOST facility. In December 2010, the Company recorded a non-cash goodwill impairment charge of approximately $2.8 million as a result of this sale. For all periods presented, the Company has reported the operating results of the eCOST discount retailer business unit, excluding costs expected to continue to occur in the future, as discontinued operations (see Note 12). The remaining assets and business operations of eCOST are conducted under the name PFSweb Retail Connect and will continue to provide certain services, primarily under a product ownership based model, to certain of the Company’s client relationships on an ongoing basis.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 2-6
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Significant Accounting Policies

12 Months Ended

Dec. 31, 2011

Significant Accounting Policies [Abstract]

Significant Accounting Policies

2. Significant Accounting Policies

Principles of Consolidation

All intercompany accounts and transactions have been eliminated in consolidation.

Investment in Affiliates

Priority Fulfillment Services, Inc. (“PFS”), a wholly-owned subsidiary of PFSweb, has made advances to Supplies Distributors that are evidenced by a Subordinated Demand Note (the “Subordinated Note”). Under the terms of certain of the Company’s debt facilities, the outstanding balance of the Subordinated Note cannot be increased to more than $5.0 million or decreased to less than $3.5 million without prior approval of certain of the Company’s lenders (see Notes 3 and 4). As of December 31, 2011 and 2010, the outstanding balance of the Subordinated Note was $3.5 million and $4.3 million, respectively. The Subordinate Note is eliminated in the Company’s consolidated financial statements.

PFS has also made advances to Retail Connect, which aggregated $11.1 million as of both December 31, 2011 and 2010. Certain terms of the Company’s debt facilities provide that the total advances to Retail Connect may not be less than $2.0 million without prior approval of Retail Connect’s lender, if needed. PFS has received the approval of its lender to advance incremental amounts to certain of its subsidiaries and/or affiliates, including Retail Connect, if needed, subject to certain cash inflows to PFS, as defined. PFSweb, Inc. has also advanced to Retail Connect an additional $7.9 million and $7.4 million as of December 31, 2011 and 2010, respectively. As of December 31, 2011, PFSweb, Inc. has approximately $5.9 million available to be advanced to Retail Connect and/or other affiliates. All of these advances are eliminated upon consolidation.

Use of Estimates

The preparation of consolidated financial statements and related disclosures in conformity with generally accepted accounting principles requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. The recognition and allocation of certain revenues and selling, general and administrative expenses in these consolidated financial statements also require management estimates and assumptions.

Estimates and assumptions about future events and their effects cannot be determined with certainty. The Company bases its estimates on historical experience and on various other assumptions believed to be applicable and reasonable under the circumstances. These estimates may change as new events occur, as additional information is obtained and as the operating environment changes. These changes have been included in the consolidated financial statements as soon as they became known. In addition, management is periodically faced with uncertainties, the outcomes of which are not within its control and will not be known for prolonged periods of time. Based on a critical assessment of accounting policies and the underlying judgments and uncertainties affecting the application of those policies, management believes the Company’s consolidated financial statements are fairly stated in accordance with generally accepted accounting principles in the United States of America, and provide a fair presentation of the Company’s financial position and results of operations.

Revenue and Cost Recognition

Depending on the terms of the customer arrangement, Supplies Distributors recognizes product revenue and product cost either upon the shipment of product to customers or when the customer receives the product. Supplies Distributors permits its customers to return product for credit against other purchases, which include returns for defective products (that Supplies Distributors then returns to the manufacturer) and incorrect shipments. Supplies Distributors provides a reserve for estimated returns and allowances and offers terms to its customers that it believes are standard for its industry.

Freight costs billed to customers are reflected as components of product revenue. Freight costs incurred are recorded as a component of cost of goods sold.

Under its master distributor agreements (see Note 6), Supplies Distributors bills IPS for reimbursements of certain expenses, including: pass-through customer marketing programs, including rebates and coop funds; certain freight costs; direct costs incurred in passing on any price decreases offered by IPS to Supplies Distributors or its customers to cover price protection and certain special bids; the cost of products provided to replace defective product returned by customers; and certain other expenses as defined. Supplies Distributors includes these reimbursable amounts as they are incurred with a corresponding reduction in either inventory or cost of product revenue. Supplies Distributors also reflects pass through customer marketing programs as a reduction of both product revenue and cost of product revenue.

The Company’s service fee revenue primarily relates to its (1) distribution services, (2) order management/customer care services and (3) the reimbursement of out-of-pocket and third-party expenses. The Company typically charges its service fee revenue on a cost-plus basis, a percent of shipped revenue basis or a per transaction basis, such as a per item basis for fulfillment services or a per minute basis for web-enabled customer contact center services. Additional fees are billed for other services.

Distribution services relate primarily to inventory management, product receiving, warehousing and fulfillment (i.e., picking, packing and shipping) and facilities and operations management. Service fee revenue for these activities is recognized as earned, which is either (i) on a per transaction basis or (ii) at the time of product fulfillment, which occurs at the completion of the distribution services.

Order management/customer care services relate primarily to taking customer orders for the Company’s clients’ products via various channels such as telephone call-center, electronic or facsimile. These services also entail addressing customer questions related to orders, as well as cross-selling/up-selling activities. Service fee revenue for this activity is recognized as the services are rendered. Fees charged to the client are on a per transaction basis based on either (i) a pre-determined fee per order or fee per telephone minutes incurred, (ii) a per dedicated agent fee, or (iii) are included in the product fulfillment service fees that are recognized on product shipment.

The Company’s billings for reimbursement of out-of-pocket expenses, including travel and certain third-party vendor expenses such as shipping and handling costs and telecommunication charges are included in pass-through revenue. The related reimbursable costs are reflected as cost of pass-through revenue.

The Company’s cost of service fee revenue, representing the cost to provide the services described above, is recognized as incurred. Cost of service fee revenue also includes certain costs associated with technology collaboration and ongoing technology support that include maintenance, web hosting and other ongoing programming activities. These activities are primarily performed to support the distribution and order management/customer care services and are recognized as incurred.

The Company recognizes revenue and records trade accounts receivable, pursuant to the methods described above, when collectability is reasonably assured. Collectability is evaluated in the aggregate and on an individual customer basis taking into consideration payment due date, historical payment trends, current financial position, results of independent credit evaluations and payment terms. Related reserves are determined by either using percentages applied to certain aged receivable categories based on historical results and are reevaluated and adjusted as additional information is received or a specific identification method. After all attempts to collect a receivable have failed, the receivable is written off against the allowance for doubtful accounts.

The Company primarily performs its services under one to three-year contracts that can generally be terminated by either party. In conjunction with these long-term contracts, the Company sometimes receives start-up fees to cover its implementation costs, including certain technology infrastructure and development costs. The Company defers the fees received, and the related costs, and amortizes them over the life of the contract. The amortization of deferred revenue is included as a component of service fee revenue. The amortization of deferred implementation costs is included as a cost of service fee revenue. To the extent implementation costs for non-technology infrastructure and development exceed the fees received, the excess costs are expensed as incurred. The following summarizes the deferred implementation revenues and costs, excluding technology and development costs that are included in property and equipment (in thousands):


	December 31, 2011		December 31, 2010
Deferred implementation revenues
Current	$	6,749	$	4,487
Non-current		5,907		3,258

	$	12,656	$	7,745

Deferred implementation costs
Current	$	1,969	$	1,515
Non-current		1,904		1,076

	$	3,873	$	2,591

Current and non-current deferred implementation costs, excluding technology and development costs, are a component of prepaid expenses and other assets, respectively. Current and non-current deferred implementation revenues, which may precede the timing of when the related implementation costs are incurred, and thus deferred, are a component of deferred revenue and other liabilities, respectively.

Concentration of Business and Credit Risk

The Company’s service fee revenue is generated under contractual service fee relationships with multiple client relationships. One product revenue customer represented 9% and 11% of the Company’s consolidated total net revenue during the years ended December 31, 2011 and 2010, respectively. No client or customer represented over 10% of the Company’s accounts receivable during either 2011 or 2010. A summary of the customer and client concentrations is as follows:


	December 31, 2011			December 31, 2010
Product Revenue (as a percentage of Product Revenue):
Customer 1		9	%		10	%
Customer 2		16	%		17	%
Service Fee Revenue (as a percentage of Service Fee Revenue):
Client 1		16	%		8	%
Client 2		15	%		8	%

The Company currently anticipates that one or more of these clients, and other clients, will reduce the level of services or terminate their relationship with the Company.

PFSweb has provided certain collateralized guarantees of its subsidiaries’ financings and credit arrangements. These subsidiaries’ ability to obtain financing on similar terms would be significantly impacted without these guarantees.

The Company has multiple arrangements with Ricoh, International Business Machines Corporation (“IBM”) and IPS and is dependent upon the continuation of such arrangements. These arrangements, which are critical to the Company’s ongoing operations, include Supplies Distributors’ master distributor agreements and certain of Supplies Distributors’ working capital financing agreements. Substantially all of Supplies Distributors’ revenue is generated by its sale of product purchased from IPS. Supplies Distributors also relies upon IPS’s sales force and product demand generation activities and the discontinuance of such services would have a material impact upon Supplies Distributors’ business. In addition, Supplies Distributors has product sales to IBM and IPS business affiliates.

Ricoh has advised Supplies Distributors that it is restructuring its IPS business that will include certain operational changes in the sale and distribution of IPS products. The changes are expected to result in reduced revenues and profitability for Supplies Distributors in 2012.

Cash and Cash Equivalents

Cash equivalents are defined as short-term highly liquid investments with original maturities, when acquired, of three months or less.

Restricted Cash

Restricted cash includes the following items (in thousands):


	December 31, 2011		December 31, 2010
Customer remittances	$	689	$	1,076
Bond financing (see Note 4)		138		777

Total restricted cash	$	827	$	1,853

In conjunction with certain of its financing agreements, Supplies Distributors has granted to its lenders a security interest in certain customer remittances received in specified bank accounts (see Note 4). At December 31, 2011 and 2010, these bank accounts held $0.6 million and $0.9 million, respectively, which was restricted and can only be used to reduce the outstanding debt.

Other Receivables

Other receivables include $9.7 million and $11.3 million as of December 31, 2011 and 2010, respectively, primarily for amounts due from IPS and IBM for costs incurred by the Company under the master distributor agreements (see Note 6). In addition, other receivables include $1.6 million and $2.5 million as of December 31, 2011 and 2010, respectively, applicable to value added tax receivables.

Inventories

Inventories (all of which are finished goods) are stated at the lower of weighted average cost or market. The Company establishes inventory reserves based upon estimates of declines in values due to inventories that are slow moving or obsolete, excess levels of inventory or values assessed at lower than cost.

Supplies Distributors assumes responsibility for slow-moving inventory under its IPS master distributor agreements, subject to certain termination rights, but has the right to return product rendered obsolete by engineering changes, as defined (see Note 6). In the event PFSweb, Supplies Distributors and IPS terminate the master distributor agreements, the agreements provide for the parties to mutually agree on a plan of disposition of Supplies Distributors’ then existing inventory.

Supplies Distributors’ inventories include merchandise in-transit that has not been received by the Company but that has been shipped and invoiced by Supplies Distributors’ vendors. The corresponding payable for inventories in-transit is included in accounts payable in the accompanying consolidated financial statements.

The Company reviews inventory for impairment on a periodic basis, but at a minimum, annually. Recoverability of the inventory on hand is measured by comparison of the carrying value of the inventory to the fair value of the inventory. The allowance for slow moving inventory was $1.6 million as of both December 31, 2011 and 2010.

Property and Equipment

The components of property and equipment as of December 31, 2011 and 2010 are as follows (in thousands):


	December 31, 2011		December 31, 2010		Depreciable Life
Purchased and capitalized software costs	$	26,875	$	22,478		3-5 years
Furniture and fixtures		20,473		19,036		2-10 years


Computer equipment		11,114			9,894		3-5 years
Leasehold improvements		8,926			7,217		3-10 years
Other		1,732			901		3-5 years

		69,120			59,526
Less-accumulated depreciation and amortization		(54,175	)		(50,402	)

Property and equipment, net	$	14,945		$	9,124

The Company makes judgments and estimates in conjunction with the carrying value of these assets, including amounts to be capitalized, depreciation and amortization methods and useful lives. Additionally, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. The Company records impairment losses, if any, in the period in which the Company determines the carrying amount is not recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. This may require the Company to make judgments regarding long-term forecasts of future revenues and costs related to the assets subject to review. During 2011 and 2010, no impairment of property and equipment was identified or recorded.

Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the respective assets. Capitalized implementation costs are depreciated over the respective client contract periods. Leasehold improvements are amortized over the shorter of the useful life of the related asset or the remaining lease term. Depreciation and amortization expense related to property and equipment, excluding capital leases and amounts included in discontinued operations, during 2011 and 2010 was $5.2 million and $4.6 million, respectively.

The Company’s property held under capital leases amount to approximately $3.4 million and $1.5 million, net of accumulated amortization of approximately $1.6 million and $2.8 million, at December 31, 2011 and 2010, respectively. Depreciation and amortization expense related to capital leases during 2011 and 2010 was $1.1 million and $1.5 million, respectively.

Foreign Currency Translation and Transactions

For the Company’s Canadian and European operations, the local currency is the functional currency. All assets and liabilities are translated at exchange rates in effect at the end of the period, and income and expense items are translated at the average exchange rates for the period.

The Company includes currency gains and losses on short-term intercompany advances in the determination of net income and loss. Currency gains and losses, including transaction gains and losses and those on short-term intercompany advances, included in net loss were a currency net loss of approximately $46,000 and $0.1 million in the years ended December 31, 2011 and 2010, respectively. The Company reports gains and losses on intercompany foreign currency transactions that are of a long-term investment nature as a separate component of shareholders’ equity.

Impact of Recently Issued Accounting Standards

In June 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income, to make the presentation of items within other comprehensive income (“OCI”) more prominent. The new standard will require companies to present items of net income, items of OCI and total comprehensive income in one continuous statement or two separate consecutive statements, and companies will no longer be allowed to present items of OCI in the statement of stockholders’ equity. This new standard is effective for the Company beginning January 1, 2012. The adoption of this new standard may change the order in which certain financial statements are presented and provide additional detail in those financial statements when applicable, but will not have any other impact on the Company’s financial statements

Income Taxes

For federal income tax purposes, tax years that remain subject to examination include years 2007 through 2011. However, the utilization of net operating loss (“NOL”) carryforwards that arose prior to 2007 remain subject to examination through the years such carryforwards are utilized. For Europe, tax years that remain subject to examination include years 2008 to 2011. However, the utilization of NOL carryforwards that arose prior to 2008 remain subject to examination through the years such carryforwards are utilized. For Canada, tax years that remain subject to examination include years 2004 to 2011, depending on the subsidiary. For state income tax purposes, the tax years that remain subject to examination include years 2006 to 2011, depending upon the jurisdiction in which the Company files tax returns. The Company and its subsidiaries have various income tax returns in the process of examination or administrative appeals. The Company does not expect these examinations will result in unrecognized tax benefits.

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amount more likely than not to be realized.

The Company recognizes interest and penalties related to certain tax positions in income tax expense.

Self Insurance

The Company is self-insured for medical insurance benefits up to certain stop-loss limits. Such costs are accrued based on known claims and an estimate of incurred, but not reported (“IBNR”) claims. IBNR claims are estimated using historical lag information and other data provided by claims administrators.

Fair Value of Financial Instruments

The carrying value of the Company’s financial instruments, which include cash and cash equivalents, accounts receivable, accounts payable and debt and capital lease obligations, approximate their fair values based on short terms to maturity or current market prices and interest rates.

Comprehensive Income (Loss)

Comprehensive income (loss) is defined as the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income (loss) consists of net income (loss) and foreign currency translation adjustments.

Net Loss Per Common Share

Basic and diluted net loss per share are computed by dividing net loss by the weighted-average number of common shares outstanding for the reporting period. Stock options not included in the calculation of diluted net loss per share for the years ended December 31, 2011 and 2010, were 2.2 million and 2.3 million, respectively, as the effect would be anti-dilutive.

Cash Paid For Interest and Taxes During Year

The Company made payments for interest of approximately $1.0 million and income taxes of approximately $0.4 million during each of the years ended December 31, 2011 and 2010 (see Notes 3, 4 and 8).

Vendor Financing

12 Months Ended

Dec. 31, 2011

Vendor Financing [Abstract]

Vendor Financing

3. Vendor Financing

Outstanding obligations under vendor financing arrangements consist of the following (in thousands):


	December 31,		December 31,
	2011		2010
Inventory and working capital financing agreements:
United States	$	18,119	$	16,472
Europe		9,143		11,318

Total	$	27,262	$	27,790

Inventory and Working Capital Financing Agreement, United States

Supplies Distributors has a short-term credit facility with IBM Credit LLC (“IBM Credit”) to finance its distribution of IPS products in the United States, providing financing for eligible IPS inventory and certain receivables up to $25.0 million through its expiration in March 2012. Given the structure of this facility and as outstanding balances, which represent inventory purchases, are repaid within twelve months, the Company has classified the outstanding amounts under this facility as accounts payable in the consolidated balance sheets. As of December 31, 2011, Supplies Distributors had $1.1 million of available credit under this facility. The credit facility contains cross default provisions, various restrictions upon the ability of Supplies Distributors to, among others, merge, consolidate, sell assets, incur indebtedness, make loans and payments to related parties (including entities directly or indirectly owned by PFSweb, Inc.), provide guarantees, make investments and loans, pledge assets, make changes to capital stock ownership structure and pay dividends, as well as financial covenants, such as annualized revenue to working capital, net profit after tax to revenue, and total liabilities to tangible net worth, as defined, and are secured by certain of the assets of Supplies Distributors, as well as a collateralized guaranty of PFSweb. Additionally, PFS is required to maintain a minimum Subordinated Note receivable balance from Supplies Distributors of $3.5 million and the Company is required to maintain a minimum shareholders’ equity of $18.0 million. Borrowings under the credit facility accrue interest, after a defined free financing period, at prime rate plus 0.5% (3.75% as of both December 31, 2011 and 2010). The facility also includes a monthly service fee.

On March 28, 2012, Supplies Distributors entered into an amended credit facility with IBM Credit, which, effective July 1, 2012, will reduce the maximum available financing under the facility from $25.0 million to $20.0 million based on the expected future working capital needs of the Company. Additionally, as of March 28, 2012, the IBM Credit facility will not have a stated maturity and both parties will have the ability to exit the facility following a 90 day notice period.

Inventory and Working Capital Financing Agreement, Europe

Supplies Distributors’ European subsidiary has a short-term credit facility with IBM Belgium Financial Services S.A. (“IBM Belgium”) to finance its distribution of IPS products in Europe. The asset-based credit facility with IBM Belgium provides up to 16.0 million Euros (approximately $20.7 million as of December 31, 2011) in inventory financing and cash advances based on eligible inventory and accounts receivable through its expiration in March 2012. Given the structure of this facility, and as outstanding inventory financing balances are repaid within twelve months, the Company has classified the outstanding inventory financing amounts under this facility as accounts payable in the consolidated balance sheets. As of December 31, 2011, Supplies Distributors’ European subsidiaries had 3.1 million Euros (approximately $4.0 million at December 31, 2011) of available credit under this facility. The credit facility contains cross default provisions, various restrictions upon the ability of Supplies Distributors and its European subsidiary to, among others, merge, consolidate, sell assets, incur indebtedness, make loans and payments to related parties (including entities directly or indirectly owned by PFSweb, Inc.), provide guarantees, make investments and loans, pledge assets, make changes to capital stock ownership structure and pay dividends, as well as financial covenants, such as annualized revenue to working capital, net profit after tax to revenue, and total liabilities to tangible net worth, as defined, and are secured by certain of the assets of Supplies Distributors’ European subsidiary, as well as collateralized guaranties of Supplies Distributors and PFSweb. Additionally, PFS is required to maintain a minimum Subordinated Note receivable balance from Supplies Distributors of $3.5 million and the Company is required to maintain a minimum shareholders’ equity of $18.0 million. Borrowings under the credit facility accrue interest at Euribor plus 1.82% for cash advances, and, after a defined free financing period, at Euribor plus 4.13% for inventory financings. As of December 31, 2011 there were $0.1 million of cash advances and the interest rate was 5.3% on the $9.1 million of outstanding inventory financings. As of December 31, 2010 the interest rate was 4.9%. Supplies Distributors’ European subsidiary pays a monthly service fee on the commitment.

Effective March 28, 2012, the maximum borrowings available under the IBM Belgium credit facility was reduced to 10.0 million Euros (approximately $13.0 million) based on the expected future working capital needs of Supplies Distributors’ European subsidiary and the maturity date was extended until June 30, 2012. In conjunction with a reorganization by Ricoh, the Company will have direct vendor credit terms with Ricoh to finance Supplies Distributors European subsidiary’s inventory purchases.

Debt and Capital Lease Obligations:

12 Months Ended

Dec. 31, 2011

Debt and Capital Lease Obligations: [Abstract]

Debt and Capital Lease Obligations:

4. Debt and Capital Lease Obligations:

Outstanding debt and capital lease obligations consist of the following (in thousands):


	December 31,		December 31,
	2011		2010
Loan and security agreements, United States:
Supplies Distributors	$	7,245	$	7,220
PFS		12,044		6,000
Credit facility—Retail Connect		—		—
Factoring agreement, Europe		2,373		2,302
Taxable revenue bonds		800		1,600
Master lease agreements		3,886		2,660
Other		1,174		674

Total		27,522		20,456
Less current portion of long-term debt		23,939		18,320

Long-term debt, less current portion	$	3,583	$	2,136

Loan and Security Agreement – Supplies Distributors

Supplies Distributors has a loan and security agreement with Wells Fargo Bank, National Association (“Wells Fargo”) to provide financing for up to $25 million of eligible accounts receivable in the United States and Canada. As of December 31, 2011, Supplies Distributors had $0.8 million of available credit under this agreement. The Wells Fargo facility expires on the earlier of March 2014 or the date on which the parties to the IPS master distributor agreement (see Note 6) no longer operate under the terms of such agreement and/or IPS no longer supplies products pursuant to such agreement. Borrowings under the Wells Fargo facility accrue interest at prime rate plus 0.25% to 0.75% (3.75% as of December 31, 2011) or Eurodollar rate plus 2.5% to 3.0%, dependent on excess availability and subject to a minimum of 3.0%, as defined. The interest rate as of December 31, 2011 was 3.75% for $5.2 million and 3.02% for $2.0 million of outstanding borrowings. As of December 31, 2010, the interest rate was 3.75% for $7.2 million of outstanding borrowings. This agreement contains cross default provisions, various restrictions upon the ability of Supplies Distributors to, among other things, merge, consolidate, sell assets, incur indebtedness, make loans and payments to related parties (including entities directly or indirectly owned by PFSweb, Inc.), provide guarantees, make investments and loans, pledge assets, make changes to capital stock ownership structure and pay dividends, as well as financial covenants, such as minimum net worth, as defined, and is secured by all of the assets of Supplies Distributors, as well as a collateralized guarantee of PFSweb. Additionally, PFS is required to maintain a Subordinated Note receivable balance from Supplies Distributors of no less than $3.5 million and may not maintain restricted cash of more than $5.0 million, and is restricted with regard to transactions with related parties, indebtedness and changes to capital stock ownership structure. Supplies Distributors has entered into blocked account agreements with its banks and Wells Fargo pursuant to which a security interest was granted to Wells Fargo for all U.S. and Canadian customer remittances received in specified bank accounts. At December 31, 2011 and 2010, these bank accounts held $0.6 million and $0.8 million, respectively, which was restricted for payment to Wells Fargo.

Loan and Security Agreement – PFSweb

PFS has a Loan and Security Agreement (“Comerica Agreement”) with Comerica Bank (“Comerica”). The Comerica Agreement provides for up to $12.5 million ($10.0 million during certain non-seasonal peak months) of eligible accounts receivable financing (“Working Capital Advances”) through September 2012. The Comerica Agreement also provides for up to $2.5 million of eligible equipment purchases (“Equipment Advances”) through October 2012, with principal payments due through April 2015. As of December 31, 2011, PFS had $1.4 million of available credit under the Working Capital Advance portion of this facility and $1.4 million of available Equipment Advances. Borrowings under the Working Capital Advance portion of this Comerica Agreement accrue interest at prime rate plus 2% (5.25% at both December, 31, 2011 and 2010), while the Equipment Advances accrue interest at prime rate plus 2.25%. The Comerica Agreement contains cross default provisions, various restrictions upon PFS’ ability to, among other things, merge, consolidate, sell assets, incur indebtedness, make loans and payments to related parties (including entities directly or indirectly owned by PFSweb, Inc.), make capital expenditures, make investments and loans, pledge assets, make changes to capital stock ownership structure, as well as financial covenants of a minimum tangible net worth of $20 million, as defined, a minimum earnings before interest and taxes, plus depreciation, amortization and non-cash compensation accruals, if any, as defined, and a minimum liquidity ratio, as defined. The Comerica Agreement restricts the amount of the Subordinated Note receivable from Supplies Distributors to a maximum of $5.0 million. Comerica has provided approval for PFS to advance incremental amounts subject to certain financial covenants, as defined, to certain of its subsidiaries and/or affiliates, if needed. The Comerica Agreement is secured by all of the assets of PFS, as well as a guarantee of PFSweb, Inc.

Credit Facility – Retail Connect

Retail Connect has an asset-based line of credit facility of up to $7.5 million from Wells Fargo through May 2012, which is collateralized by substantially all of Retail Connect’s assets. Borrowings under the facility are limited to a percentage of eligible accounts receivable and inventory, up to a specified amount. Outstanding borrowings under the facility bear interest at prime rate plus 1% or Eurodollar rate plus 3.5%. There were no outstanding borrowings as of December 31, 2011 or 2010. As of December 31, 2011, Retail Connect had no letters of credit outstanding and $0.1 million available credit under this facility. In connection with the line of credit, Retail Connect entered into a cash management arrangement whereby Retail Connect’s operating accounts are considered restricted and swept and used to repay outstanding amounts under the line of credit, if any. The credit facility restricts Retail Connect’s ability to, among other things, merge, consolidate, sell assets, incur indebtedness, make loans, investments and payments to subsidiaries, affiliates and related parties (including entities directly or indirectly owned by PFSweb, Inc.), make investments and loans, pledge assets, make changes to capital stock ownership structure, and requires a minimum tangible net worth for Retail Connect of $0, as defined. PFSweb has guaranteed all current and future obligations of Retail Connect under this line of credit.

Factoring Agreement

Supplies Distributors’ European subsidiary has a factoring agreement with BNP Paribas Fortis Factor (“BNP Paribas”) that provides factoring for up to 7.5 million Euros (approximately $9.7 million at December 31, 2011) of eligible accounts receivables through March 2014. This factoring agreement is accounted for as a secured borrowing. As of December 31, 2011, Supplies Distributors’ European subsidiary had approximately 0.9 million Euros (approximately $1.2 million) of available credit under this agreement. Borrowings accrue interest at Euribor plus 0.7% (1.7% at December 31, 2011).

Debt Covenants

To the extent the Company or any of its subsidiaries fail to comply with its covenants applicable to its debt or vendor financing obligations, including the monthly financial covenant requirements, such as profitability and cash flow, and required level of shareholders’ equity or net worth (as defined), the Company would be required to obtain a waiver from the lender or the lender would be entitled to accelerate the repayment of any outstanding credit facility obligations, and exercise all other rights and remedies, including sale of collateral and enforcement of payment under the Company parent guarantee. Any acceleration of the repayment of the credit facilities may have a material adverse impact on the Company’s financial condition and results of operations and no assurance can be given that the Company would have the financial ability to repay all of such obligations. At December 31, 2011 and 2010, the Company had restricted net assets of approximately $20.1 million and $21.0 million, respectively. As of December 31, 2011, the Company was in compliance with all debt covenants.

Master Lease Agreements

The Company has various agreements that provide for leasing or financing transactions of equipment and other assets and will continue to enter into such arrangements as needed to finance the purchasing or leasing of certain equipment or other assets. Borrowings under these agreements, which generally have terms of three to five years, are generally secured by the related equipment, and in certain cases, by a Company parent guarantee.

Debt and Capital Lease Maturities

The Company’s aggregate maturities of debt subsequent to December 31, 2011 are as follows (in thousands):


Fiscal year ended December 31,
2012	$	22,569
2013		1,059
2014		428
2015		136
Thereafter		—

Total	$	24,192

The following is a schedule of the Company’s future minimum lease payments under the capital leases, together with the present value of the net minimum lease payments as of December 31, 2011 (in thousands):


Fiscal year ended December 31,
2012	$	1,495
2013		1,315
2014		575
2015		90
2016		67
Thereafter		—

Total minimum lease payments	$	3,542
Less amount representing interest at rates ranging from 4.5% to 10.5%		(212	)

Present value of net minimum lease payments		3,330
Less: Current portion		(1,370	)

Long-term capital lease obligations	$	1,960

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References + Details

Stock and Stock Options

12 Months Ended

Dec. 31, 2011

Stock and Stock Options/Supplies Distributors [Abstract]

Stock and Stock Options

5. Stock and Stock Options

Preferred Stock Purchase Rights

On June 8, 2000, and as amended, the Company’s Board of Directors declared a dividend distribution of one preferred stock purchase right (a “Right”) for each share of the Company’s common stock outstanding on July 6, 2000 and each share of common stock issued thereafter. Each Right entitles the registered shareholders to purchase from the Company one one-thousandth of a share of preferred stock at an exercise price of $314.90, subject to adjustment. The Rights are not currently exercisable, but would become exercisable if certain events occurred relating to a person or group acquiring or attempting to acquire 23 percent or more of the Company’s outstanding shares of common stock. The Rights expire on July 6, 2015, unless redeemed, exchanged or extended by the Company.

Stock Options and Stock Option Plans

The Company recognizes compensation cost for all share-based payments based on the grant date fair value. Compensation cost is recognized on a straight-line basis, net of estimated forfeitures, over the requisite service period of each award.

Stock-based compensation charged against income was $1.4 million and $0.8 million for the years ended December 31, 2011 and 2010, respectively. As of December 31, 2011, there was $2.3 million of total unrecognized compensation costs related to unvested stock options, which is expected to be recognized over a weighted average period of approximately 1.5 years.

As of December 31, 2011, the Company had the following share-based compensation plans:

PFSweb Plan Options

The Company has an Employee Stock and Incentive Plan and an Outside Director Stock Option and Retainer Plan, under which an aggregate of 3,192,341 shares of common stock have been authorized for issuance (the “Stock Options Plans”) and an outstanding stock option agreement under which 7,446 shares were originally authorized for issuance. The Stock Option Plans provide for the granting of incentive awards in the form of stock options to directors, executive management, key employees, and outside consultants of the Company. The rights to purchase shares under the employee stock option agreements typically vest over a three-year period, one-twelfth each quarter. Stock options must be exercised within 10 years from the date of grant. Stock options are generally issued such that the exercise price is equal to the market value of the Company’s common stock at the date of grant.

As of December 31, 2011, there were 419,042 shares available for future grants under the Stock Option Plans.

The following table summarizes stock option activity under the Stock Option Plans:


	Shares			Price Per Share		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value (in millions)
Outstanding, December 31, 2010		2,193,673		$	1.01—$13.91	$	4.28
Granted		663,000		$	4.59—$ 5.00	$	4.96
Exercised		(452,222	)	$	1.01—$4.89	$	3.74
Canceled		(236,599	)	$	1.01—$12.08	$	4.73

Outstanding, December 31, 2011		2,167,852		$	1.01—$13.91	$	4.56

Exercisable, December 31, 2011		1,356,147		$	1.01—$13.91	$	4.63		6.2	$	0.6

Exercisable and expected to vest, December 31, 2011		2,071,509		$	1.01—$13.91	$	4.57		5.1	$	0.6

The weighted average fair value per share of options granted during the years ended December 31, 2011 and 2010 was $3.55 and $2.82, respectively. The total intrinsic value of options exercised under the Stock Option Plans was $0.6 million during the year ended December 31, 2011.

PFSweb Non-plan Options

Prior to the Company’s initial public offering, certain of the Company’s employees were holders of stock options of the Company’s former parent company, Daisytek International Corporation (“Daisytek”), issued under Daisytek’s stock option plans.

In connection with the completion of the Company’s spin-off from Daisytek on July 6, 2000 (the “Spin-off”), all outstanding Daisytek stock options were replaced with substitute stock options. Daisytek options held by PFSweb employees were replaced (at the option holder’s election made prior to the Spin-off) with either options to acquire shares of PFSweb common stock or options to acquire shares of both Daisytek common stock and PFSweb common stock (that may be exercised separately) (the “Unstapled Options”). Options held by Daisytek employees were replaced (at the option holder’s election made prior to the Spin-off) with either options to acquire shares of Daisytek common stock or Unstapled Options.

As a result of the stock option replacement process described above, in conjunction with the Spin-off, PFSweb stock options (the “Non-plan Options”) were issued to PFSweb and Daisytek officers, directors and employees. These options were issued as one-time grants and were not issued under the Stock Option Plans. The terms and provisions of the Non-plan Options are substantially the same as options issued under the Stock Option Plans.

The following table summarizes stock option activity under the Non-plan Options:


	Shares			Price Per Share		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value (in millions)
Outstanding, December 31, 2010		88,719		$	4.28	$	4.28
Granted		—		$	—	$	—
Exercised		(75,621	)	$	4.28	$	4.28
Canceled		(13,098	)	$	4.28	$	4.28

Outstanding, December 31, 2011		—

The total intrinsic value of Non-plan Options exercised during the year ended December 31, 2011 was $0.3 million.

Fair Value

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions used for grants of options under the Stock Option Plans:


	Year Ended	Year Ended
	December 31, 2011	December 31, 2010
Expected dividend yield	—	—
Expected stock price volatility	82% - 83%	82% - 84%
Weighted average stock price volatility	84%	83%
Risk-free interest rate	1.2% - 2.6%	1.7% - 2.9%
Expected life of options (years)	6	6

The Black-Scholes option valuation model requires the input of highly subjective assumptions, including the expected life of the stock-based award and stock-price volatility. The assumptions listed above represent management’s best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if other assumptions had been used, the Company’s recorded and pro forma stock-based compensation expense could have been different. In addition, the Company is required to estimate the expected forfeiture rate and only recognize expense for those shares expected to vest. If the Company’s actual forfeiture rate is materially different from its estimate, the share-based compensation expense could be materially different. The expected life of options has been computed using the simplified method.

Master Distributor Agreements

12 Months Ended

Dec. 31, 2011

Master Distributor Agreements [Abstract]

Master Distributor Agreements

6. Master Distributor Agreements

Supplies Distributors, PFSweb and IPS have entered into master distributor agreements under which Supplies Distributors acts as a master distributor of various products, primarily IPS product, and PFSweb provides transaction management and fulfillment services to Supplies Distributors. The master distributor agreements are subject to periodic renewals, the next of which is in March 2012. Under the master distributor agreements, IPS sells product to Supplies Distributors and reimburses Supplies Distributors for certain freight costs, direct costs incurred in passing on any price decreases offered by IPS to Supplies Distributors or its customers to cover price protection and certain special bids, the cost of products provided to replace defective product returned by customers and other certain expenses as defined. Supplies Distributors can return to IPS product rendered obsolete by IPS engineering changes after customer demand ends. IPS determines when a product is obsolete. IPS and Supplies Distributors also have agreements under which IPS reimburses or collects from Supplies Distributors amounts calculated in certain inventory cost adjustments.

Supplies Distributors passes through to customers marketing programs specified by IPS and administers, along with a party performing product demand generation for the IPS products, such programs according to IPS guidelines.

Supplies Distributors

12 Months Ended

Dec. 31, 2011

Stock and Stock Options/Supplies Distributors [Abstract]

Supplies Distributors

7. Supplies Distributors

Pursuant to a credit agreement, Supplies Distributors is restricted from making any distributions to PFSweb if, after giving affect thereto, Supplies Distributors’ would be in noncompliance with its financial covenants. Under the terms of its amended credit agreements, Supplies Distributors is restricted from paying annual cash dividends without the prior approval of its lenders (see Notes 3 and 4). Supplies Distributors has received lender approval to pay approximately $2.8 million of dividends in 2012. Supplies Distributors paid dividends to PFSweb of $0.6 million and $2.9 million in 2011 and 2010, respectively.

Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

8. Income Taxes

The consolidated income (loss) from continuing operations before income taxes, by domestic and foreign entities, is as follows (in thousands):


	Year Ended December 31,			Year Ended December 31,
	2011			2010
Domestic	$	(3,057	)	$	(4,402	)
Foreign		(237	)		1,471

Total	$	(3,294	)	$	(2,931	)

A reconciliation of the difference between the expected income tax expense from continuing operations at the U.S. federal statutory corporate tax rate of 34%, and the Company’s effective tax rate is as follows (in thousands):


	Year Ended December 31,			Year Ended December 31,
	2011			2010
Income tax benefit computed at statutory rate	$	(1,120	)	$	(997	)

Foreign dividends received		637			893
Items not deductible for tax purposes		275			462
Change in valuation reserve		(265	)		(123	)
State taxes		168			106
Impact of foreign taxation		119			4
Other		566			118

Provision for income taxes	$	380		$	463

Current and deferred income tax expense (benefit) is summarized as follows (in thousands):


	Year Ended December 31,		Year Ended December 31,
	2011		2010
Current
Domestic	$	—	$	—
State		165		45
Foreign		145		451

Total current		310		496
Deferred
Domestic		—		—
State		—		15
Foreign		70		(48	)

Total deferred		70		(33	)

Total	$	380	$	463

The components of the deferred tax asset (liability) are as follows (in thousands):


	December 31, 2011			December 31, 2010
Deferred tax assets:
Allowance for doubtful accounts	$	723		$	757
Inventory reserve		556			630
Property and equipment		—			1,336
Net operating loss carryforwards		20,026			19,569
Other		2,420			1,476

		23,725			23,768
Less — Valuation allowance		22,938			23,203

Total deferred tax asset		787			565

Deferred tax liabilities:
Property and equipment		(446	)		—
Intangible assets		—			(108	)
Other		—			(48	)

Total deferred tax liabilities		(446	)		(156	)

Deferred tax assets, net	$	341		$	409

Management believes that PFSweb has not established a sufficient history of earnings, on a stand-alone basis, to support the more likely than not realization of certain deferred tax assets in excess of existing taxable temporary differences. A valuation allowance has been provided for the majority of these net deferred income tax assets as of December 31, 2011 and 2010. The remaining net deferred tax assets at both December 31, 2011 and 2010 primarily relate to the Company’s European operations. At December 31, 2011, net operating loss carryforwards relate to taxable losses of PFSweb’s European subsidiary totaling approximately $4.8 million, PFSweb’s Canadian subsidiary totaling approximately $6.0 million and PFSweb’s U.S. subsidiaries totaling approximately $49.3 million that expire at various dates from 2012 through 2031. The U.S. NOL carryforward includes approximately $4.6 million relating to tax benefits of stock option exercises and, if utilized, will be recorded against additional paid-in-capital upon utilization rather than as an adjustment to income tax expense from continuing operations. The U.S. NOL also includes approximately $20.4 million of NOL acquired in 2006, which is subject to annual limits of $1.2 million under IRS Section 382.

The Company evaluates its tax positions for potential liabilities associated with unrecognized tax benefits. As of December 31, 2011 and 2010, no unrecognized tax benefits, penalties or interest were identified or recorded. The Company does not expect to record unrecognized tax benefits in the next twelve months.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

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-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

+ Details

Commitments and Contingencies

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies [Abstract]

Commitments and Contingencies

9. Commitments and Contingencies

The Company leases facilities, warehouse and office space and transportation and other equipment under operating leases expiring in various years through December 31, 2022. In most cases, management expects that, in the normal course of business, leases will be renewed or replaced by other similar leases. The Company’s facility leases generally contain one or more renewal options.

Minimum future annual rental payments under non-cancelable operating leases having original terms in excess of one year are as follows (in thousands):


	Operating Lease Payments
Fiscal year ended December 31,
2012	$	7,248
2013		6,650
2014		5,261
2015		3,901
2016		2,908
Thereafter		16,618

Total	$	42,586

Minimum rental payments under operating leases are recognized on a straight-line basis over the term of the lease including any periods of free rent. Any differences between cash rental payments made and straight-line rent expense is recorded as deferred rent on the accompanying consolidated balance sheets. Total rental expense under operating leases approximated $7.5 million and $7.9 million for the years ended December 31, 2011 and 2010, respectively. Certain landlord required deposits are secured by letters of credit.

The Company receives municipal tax abatements in certain locations. During 2004 the Company received notice from a municipality that it did not satisfy certain criteria necessary to maintain the abatements. In December 2006 the Company received notice that the municipal authority planned to make an adjustment to the Company’s tax abatement. The Company disputed the adjustment and such dispute has been settled with the municipality. However, the amount of additional property taxes to be assessed against the Company and the timing of the related payments has not been finalized. As of December 31, 2011, the Company believes it has adequately accrued for the expected assessment.

In April 2010, a sales employee of eCOST was charged with violating various federal criminal statutes in connection with the sales of eCOST products to certain customers, and approximately $620,000 held in an eCOST deposit account was seized and turned over to the Office of the U.S. Attorney in connection with such activity. The Company received subpoenas from the Office of the U.S. Attorney requesting information regarding the employee and other matters, and the Company has responded to the subpoenas and is fully cooperating with the Office of the U.S. Attorney. The Company has commenced its own investigation into the actions of the employee. Neither the Company nor eCOST have been charged with any criminal activity, and the Company intends to seek the recovery or reimbursement of the funds which are currently classified as other receivables on the December 31, 2011 financial statements. Based on the information available to date, the Company is unable to determine the amount of the loss, if any, relating to the seizure of such funds. No assurance can be given, however, that the seizure of such funds, or the inability of the Company to recover such funds or any significant portion thereof, or any costs and expenses incurred by the Company in connection with this matter, will not have a material adverse effect upon the Company’s financial condition or results of operations.

The Company is subject to claims in the ordinary course of business, including claims of alleged infringement by the Company or its subsidiaries of the patents, trademarks and other intellectual property rights of third parties. PFS is generally required to indemnify its service fee clients against any third party claims alleging infringement by PFS of the patents, trademarks and other intellectual property rights of third parties.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

+ Details

Segment and Geographic Information

12 Months Ended

Dec. 31, 2011

Segment and Geographic Information [Abstract]

Segment and Geographic Information

10. Segment and Geographic Information

The Company is currently organized into two primary operating segments, which generally align with the corporate organization structure. In the first segment, PFSweb is an international provider of various business process outsourcing solutions and operates as a service fee business. In the second operating segment, (“Business and Retail Connect”), subsidiaries of the Company purchase inventory from clients and resell the inventory to client customers. In this segment, the Company generally recognizes product revenue.


	Year Ended December 31,			Year Ended December 31,
	2011			2010
Revenues (in thousands):
PFSweb	$	142,822		$	106,552
Business and Retail Connect		162,447			174,613
Eliminations		(6,503	)		(6,649	)

	$	298,766		$	274,516

Income (loss) from operations (in thousands):
PFSweb	$	(5,413	)	$	(5,442	)
Business and Retail Connect		3,204			3,451
Eliminations		—			—

	$	(2,209	)	$	(1,991	)


	Year Ended December 31, 2011		Year Ended December 31, 2010
Depreciation and amortization (in thousands):
PFSweb	$	6,318	$	6,032
Business and Retail Connect		26		28
Eliminations		—		—

	$	6,344	$	6,060


	December 31, 2011			December 31, 2010
Capital expenditures (in thousands):
PFSweb	$	7,464		$	3,774
Business and Retail Connect		86			—
Eliminations		—			—

	$	7,550		$	3,774

Assets (in thousands):
PFSweb	$	83,097		$	62,617
Business and Retail Connect		66,740			73,992
eCOST		—			8,183
Eliminations		(13,465	)		(14,562	)

	$	136,372		$	130,230

Geographic areas in which the Company operates include the United States, Europe (primarily Belgium), and Canada. The following is geographic information by area. Revenues are attributed based on the Company’s domicile.


	Year Ended December 31,			Year Ended December 31,
	2011			2010
Revenues (in thousands):
United States	$	215,027		$	194,791
Europe		79,602			77,758
Canada		5,787			5,439
Inter-segment eliminations		(1,650	)		(3,472	)

	$	298,766		$	274,516

Other long-lived assets (in thousands):
United States	$	15,480		$	11,525
Europe		2,273			765
Canada		319			163

	$	18,072		$	12,453

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 280
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599

+ Details

Employee Savings Plan

12 Months Ended

Dec. 31, 2011

Employee Savings Plan [Abstract]

Employee Savings Plan

11. Employee Savings Plan

The Company has a defined contribution employee savings plan under Section 401(k) of the Internal Revenue Code. Substantially all full-time and part-time U.S. employees are eligible to participate in the plan. The Company, at its discretion, may match employee contributions to the plan and also make an additional matching contribution in the form of profit sharing in recognition of the Company’s performance. The Company contributed approximately $0.1 million during the year ended December 31, 2011, to match an approved percentage of employee contributions. No matching contributions were made in the year ended December 31, 2010.

- Definition

The entire disclosure for pension and other postretirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph h
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 8
-Subparagraph m
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 106
-Paragraph 518
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 87
-Paragraph 264
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 03-2
-Paragraph 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Principles Board Opinion (APB)
-Number 30
-Paragraph 26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 158
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Implementation Guide (Q and A)
-Number FAS88
-Paragraph 63
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-Name Accounting Standards Codification
-Topic 715
-URI http://asc.fasb.org/topic&trid=2235017

+ Details

Discontinued Operations

12 Months Ended

Dec. 31, 2011

Discontinued Operations [Abstract]

Discontinued Operations

12. Discontinued Operations

In February 2011, the Company sold certain assets of eCOST to a third party for a total aggregate cash purchase price of approximately $2.3 million (before expenses of approximately $0.2 million). Accordingly, the accompanying consolidated financial statements reflect the related operating results of the eCOST segment as discontinued operations for all periods presented.

Summarized financial information in the accompanying consolidated statements of operations for the discontinued eCOST operations is as follows (in thousands):


	Twelve Months Ended December 31,
	2011			2010
Product revenue, net	$	6,909		$	69,172
Expenses		7,792			70,327
Goodwill and intangible asset impairment		—			2,792

Loss before provision for income taxes		(883	)		(3,947	)
Provision (benefit) for income taxes		(9	)		28

Discontinued operations, net of income taxes	$	(892	)	$	(3,975	)

Summarized financial information in the accompanying consolidated balance sheets for the discontinued eCOST operations is as follows (in thousands):


	December 31,
	2010
Inventories, net	$	2,776
Identifiable intangibles		316
Goodwill		810

Assets of discontinued operations	$	3,902

At December 31, 2010, the amount of allowance for slow moving inventory included in discontinued operations was $0.2 million. At December 31, 2011 the Company had recorded approximately $0.5 million of accrued liabilities related to the discontinued operations.

The original eCOST acquisition resulted in a purchase price in excess of the fair value of net identifiable assets acquired and liabilities assumed. This excess purchase price was allocated to goodwill. Goodwill, which is not deductible for tax purposes, is not amortized rather, it is subject to an annual impairment test, using a fair-value-based approach.

- Definition

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 43-48
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1012-107759

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1474-107760

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 45
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6390789&loc=d3e2443-110228

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1436-107760

+ Details

Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2011

Condensed Financial Information of Registrant [Abstract]

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

SCHEDULE I

PFSWEB, INC. AND SUBSIDIARIES

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

BALANCE SHEETS – PARENT COMPANY ONLY

(In thousands)


	December 31, 2011			December 31, 2010
ASSETS:
Cash and cash equivalents	$	5,876		$	5,006
Receivable from subsidiaries		6,043			5,394
Receivable from PFSweb Retail Connect, Inc.		7,900			7,400
Investment in subsidiaries		8,255			11,550

Total assets	$	28,074		$	29,350

LIABILITIES:
Total liabilities	$	—		$	—

SHAREHOLDERS’ EQUITY:
Preferred stock		—			—
Common stock		13			12
Additional paid-in capital		104,645			101,229
Accumulated deficit		(77,898	)		(73,332	)
Accumulated other comprehensive income		1,399			1,526
Treasury stock		(85	)		(85	)

Total shareholders’ equity		28,074			29,350

Total liabilities and shareholders’ equity	$	28,074		$	29,350

The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto.

STATEMENTS OF OPERATIONS – PARENT COMPANY ONLY

FOR THE YEARS ENDED DECEMBER 31

(In thousands)


	2011			2010
EQUITY IN NET LOSS OF CONSOLIDATED SUBSIDIARIES	$	(4,566	)	$	(7,369	)

NET LOSS	$	(4,566	)	$	(7,369	)

The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto.

STATEMENTS OF CASH FLOWS – PARENT COMPANY ONLY

FOR THE YEARS ENDED DECEMBER 31

(In thousands)


	2011			2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(4,566	)	$	(7,369	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Equity in net loss of consolidated subsidiaries		4,566			7,369

Net cash provided by operating activities		—			—

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock		2,015			7,270
Increase in receivable from PFSweb Retail Connect, Inc.		(500	)		(2,450	)
Increase (decrease) in receivable from subsidiaries, net		(645	)		(6	)

Net cash provided by (used in) financing activities		870			4,814

EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS		—			10

NET INCREASE (DECREASE) IN CASH		870			4,824
CASH AND CASH EQUIVALENTS, beginning of period		5,006			182

CASH AND CASH EQUIVALENTS, end of period	$	5,876		$	5,006

The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto.

- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

+ References + Details

Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2011

Valuation and Qualifying Accounts [Abstract]

VALUATION AND QUALIFYING ACCOUNTS

SCHEDULE II

PFSWEB, INC. AND SUBSIDIARIES

VALUATION AND QUALIFYING ACCOUNTS

FOR THE YEARS ENDED DECEMBER 31

(Amounts in thousands)


			Additions
	Balance at Beginning of Period		Charges to Cost and Expenses			Charges to Other Accounts		Deductions			Balance at End of Period
Year Ended December 31, 2010:
Allowance for doubtful accounts	$	973		156			—		(375	)	$	754
Year Ended December 31, 2011:
Allowance for doubtful accounts	$	754		(11	)		—		(80	)	$	663