Business Segments

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Business Segments

17. Business Segments

The Company has four operating segments – U.S. Energy Centers, U.S. Process Solutions, Canada and International. These operating segments were determined based primarily on the geographical markets and secondarily on the distribution channel of the products and services offered. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company’s Chief Executive Officer has been identified as the chief operating decision maker. The Company’s chief operating decision maker directs the allocation of resources to operating segments based on various metrics of each respective operating segment. The allocation of resources across the operating segments is dependent upon, among other factors, the operating segment’s historical or future expected operating margins; the operating segment’s historical or future expected return on capital; outlook within a specific market; opportunities to grow profitability; new products or new customer accounts; confidence in management; and competitive landscape and intensity.

The Company has determined that there are three reportable segments: (1) United States, (2) Canada and (3) International. The U.S. Energy Centers and U.S. Process Solutions operating segments were not separately reported as they exhibit similar long term economic characteristics, the nature of the products offered are similar, purchase many identical products from outside vendors, have similar customers, sell products directly to end-users and operate in similar regulatory environments. They have been aggregated into the United States reportable segment.

United States

The Company has approximately 105 locations in the U.S., which are geographically positioned to serve the upstream, midstream, downstream and renewable energy and industrial markets.

Canada

The Company has a network of approximately 40 locations in the Canadian oilfield, predominantly in the oil rich provinces of Alberta, Saskatchewan, Manitoba and other targeted locations across the country. The Company’s Canadian segment primarily serves the energy exploration, production, drilling and midstream business.

International

The Company operates in approximately 15 countries and serves the needs of its international customers from approximately 20 locations outside of the U.S. and Canada, all of which are strategically located in major oil and gas development areas. The Company’s International segment primarily serves the energy exploration, production and drilling business.

The following table presents financial information for each of the Company’s reportable segments as of and for the year ended December 31 (in millions):

	United States			Canada		International			Total
2023
Revenue	$	1,749		$	282	$	290		$	2,321
Operating profit		104			21		15			140
Depreciation and amortization		23			2		1			26
Property, plant and equipment, net		106			12		13			131
Total assets		1,192			177		160			1,529
2022
Revenue	$	1,591		$	315	$	230		$	2,136
Operating profit (loss)		103			30		(2	)		131
Impairment and other charges		—			—		10			10
Depreciation and amortization		16			2		1			19
Property, plant and equipment, net		95			11		13			119
Total assets		991			179		150			1,320
2021
Revenue	$	1,163		$	249	$	220		$	1,632
Operating profit (loss)		(8	)		17		—			9
Impairment and other charges		6			1		—			7
Depreciation and amortization		20			2		1			23
Property, plant and equipment, net		86			11		14			111
Total assets		787			168		149			1,104

The following table presents a comparison of the approximate sales mix in the principal product categories (in millions):

	Year Ended December 31,
	2023		2022		2021
Product Category
Pumps, production and drilling	$	639	$	531	$	423
Pipe		422		432		277
Valves		437		409		317
Fittings and flanges		433		389		285
Mill tool, MRO, safety and other		390		375		330
Total	$	2,321	$	2,136	$	1,632