14. Business Segments

The Company has five operating segments, which are (1) U.S. Energy, (2) U.S. Supply Chain, (3) U.S. Process Solutions, (4) Canada and (5) 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 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 United States Energy, United States Supply Chain and United States 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 in to the United States reportable segment. Total assets for each reportable segment are those owned or allocated to each segment by the Company's internal management reporting systems and include inter-segment assets that were eliminated for the presentation of total assets in the accompanying Consolidated Balance Sheets.

United States

The Company has approximately 195 locations in the U.S., which are geographically positioned to serve the upstream, midstream and downstream energy and industrial markets.

Canada

The Company has a network of approximately 55 locations in the Canadian oilfield, predominantly in the oil rich provinces of Alberta and Saskatchewan in Western Canada. The Company’s Canadian segment primarily serves the energy exploration, production, drilling and midstream business.

International

The Company operates in approximately 20 countries and serves the needs of its international customers from approximately 35 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
2017
Revenue	$	1,914		$	356		$	378		$	2,648
Operating profit (loss)		(53	)		13			(1	)		(41	)
Depreciation and amortization		37			3			10			50
Property, plant and equipment, net		81			14			24			119
Total assets		1,207			401			141			1,749
2016
Revenue	$	1,445		$	258		$	404		$	2,107
Operating loss		(192	)		(18	)		(12	)		(222	)
Depreciation and amortization		40			3			10			53
Property, plant and equipment, net		104			15			24			143
Total assets		1,112			306			185			1,603
2015
Revenue	$	2,027		$	378		$	605		$	3,010
Operating profit (loss)		(515	)		(1	)		6			(510	)
Impairment of goodwill		(393	)		—			—			(393	)
Depreciation and amortization		26			3			9			38
Property, plant and equipment, net		119			16			30			165
Total assets		1,266			300			266			1,832

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

	December 31,
	2017		2016		2015
Product Category
Drilling and production	$	625	$	496	$	632
Pipe		418		287		509
Valves		541		374		538
Fittings and flanges		419		350		448
Mill tool, MRO, safety and other		645		600		883
Total	$	2,648	$	2,107	$	3,010