Segment Information

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Segment Information

Note 14 – Segment Information

As a result of the Mergers described in Note 1 – Nature of Operations and Basis of Presentation, the Company evaluated its operational, reporting and management structures and identified three reportable segments based on the nature of the products and services and type of customer for those products and services. A description of our reportable segments is as follows:

•Lawson is a distributor of specialty products and services to the industrial, commercial, institutional and government maintenance, repair and operations market.

•TestEquity is a distributor of test and measurement equipment and solutions, electronic production supplies, and tool kits from its leading manufacturer partners supporting the technology, aerospace, defense, automotive, electronics, education, and medical industries.

•Gexpro Services is a global supply chain solutions provider, specializing in developing and implementing vendor managed inventory and kitting programs to high-specification manufacturing customers.

The Company also identified an “All Other” category which includes unallocated DSG holding company costs that are not directly attributable to the ongoing operating activities of our reportable segments and includes the inconsequential results of the Bolt Supply House ("Bolt") non-reportable segment. Revenue within the All Other category represent the results of Bolt. Bolt generates revenue primarily from the sale of MRO products to its walk-up customers and service to its customers through their 14 branch locations. Bolt does not provide VMI services for its customers or provide services in addition to product sales to customers. Revenue is recognized at the time that control of the product has been transferred to the customer which is either upon delivery or shipment depending on the terms of the contract.

Financial information for the Company's segments is presented below.

	Year Ended December 31,
(in thousands)	2022		2021
Revenue
Lawson(1)	$	324,783	$	—
TestEquity	392,358		264,161
Gexpro Services	385,326		256,129
All Other(2)	48,955		—
Total revenue	$	1,151,422	$	520,290
Operating income (loss)
Lawson(1)	$	6,536	$	—
TestEquity	11,375		329
Gexpro Services	21,291		11,092
All Other(2)	2,584		—
Total operating income (loss)	$	41,786	$	11,421

(1)    Includes the operating results of Lawson only subsequent to the Merger Date of April 1, 2022 and not Lawson operating results prior to the Mergers.

(2)    Includes the operating results of All Other only subsequent to the Merger Date of April 1, 2022 and not All Other operating results prior to the Mergers.

Long-lived assets, which includes property and equipment, rental equipment, goodwill, intangibles, right of use assets, and other assets, were as follows:

	December 31,
(in thousands)	2022		2021
Long-lived assets by segment
Lawson	$	324,732	$	—
TestEquity	201,919		152,144
Gexpro Services	152,720		102,890
All Other	40,696		—
Total	$	720,067	$	255,034
Long-lived assets by geographic area
United States	$	580,870	$	236,933
Canada	70,561		7,582
Europe	67,957		9,863
Pacific Rim	—		—
Latin America	679		656
Other	—		—
Total	$	720,067	$	255,034

Refer to Note 4 – Revenue Recognition for disaggregated revenue by geographic area.

Capital expenditures and depreciation and amortization by segment were as follows:

	Year Ended December 31,
(in thousands)	2022		2021
Capital expenditures
Lawson(1)	$	3,737	$	—
TestEquity	250		169
Gexpro Services	3,809		2,857
All Other(2)	511		—
Total	$	8,307	$	3,026
Depreciation and amortization
Lawson(1)	$	10,594	$	—
TestEquity	17,480		13,784
Gexpro Services	15,175		4,899
All Other(2)	1,937		—
Total	$	45,186	$	18,683

(1)    Includes Lawson's activities only subsequent to the Merger Date of April 1, 2022 and not prior to the Mergers.

(2)    Includes the activities of All Other only subsequent to the Merger Date of April 1, 2022 and not prior to the Mergers.