XML 216 R25.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Segment Information
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Segment Information
Note 16 – Segment Information

Based on operational, reporting and management structures, the Company has 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 governmental MRO marketplace. Lawson primarily distributes MRO products to its customers through a network of sales representatives and an inside sales channel throughout the United States and Canada.
TestEquity is a distributor of test and measurement equipment and solutions, industrial and electronic production supplies, vendor managed inventory programs, and converting, fabrication and adhesive solutions from its leading manufacturer partners supporting the aerospace and defense, wireless and communication, semiconductors, industrial electronics and automotive, and electronics manufacturing industries.

Gexpro Services is a global supply chain solutions provider, specializing in the development of mission critical production line management, aftermarket and field installation programs.

The Company also has 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 results of the Bolt Supply House (“Bolt”) non-reportable segment. Revenue within the All Other category represents 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 its 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 and reconciliations of that information to the unaudited condensed consolidated financial statements is presented below. Asset information by operating segment is not presented below since the chief operating decision maker does not review this information by segment.
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2024202320242023
Revenue
Lawson$121,118 $119,147 $239,304 $244,427 
TestEquity197,481 136,067 384,630 243,425 
Gexpro Services107,134 108,274 205,785 209,290 
All Other14,471 14,496 26,966 29,112 
Intersegment revenue elimination(668)— (1,063)— 
Total revenue$439,536 $377,984 $855,622 $726,254 
Operating income (loss)
Lawson$6,129 $8,470 $10,236 $16,715 
TestEquity703 (3,182)(5,391)(3,156)
Gexpro Services8,091 8,778 13,553 16,152 
All Other(765)(290)(1,457)786 
Total operating income (loss)$14,158 $13,776 $16,941 $30,497 

Segment revenue includes revenue from sales to external customers and intersegment revenue from sales transactions between segments. The Company accounts for intersegment sales similar to third party transactions that are conducted on an arm’s-length basis and reflect current market prices. Intersegment revenue is eliminated in consolidation. Segment revenue and the elimination of intersegment revenue was as follows:
(in thousands)LawsonTestEquityGexpro ServicesAll OtherEliminationTotal
Three Months Ended June 30, 2024
Revenue from external customers$121,089 $197,446 $106,530 $14,471 $— $439,536 
Intersegment revenue29 35 604 — (668)— 
Revenue$121,118 $197,481 $107,134 $14,471 $(668)$439,536 
Three Months Ended June 30, 2023
Revenue from external customers$119,147 $136,067 $108,274 $14,496 $— $377,984 
Intersegment revenue— — — — — — 
Revenue$119,147 $136,067 $108,274 $14,496 $— $377,984 
Six Months Ended June 30, 2024
Revenue from external customers$239,251 $384,511 $204,894 $26,966 $— $855,622 
Intersegment revenue53 119 891 — (1,063)— 
Revenue$239,304 $384,630 $205,785 $26,966 $(1,063)$855,622 
Six Months Ended June 30, 2023
Revenue from external customers$244,427 $243,425 $209,290 $29,112 $726,254 
Intersegment revenue— — — — — — 
Revenue$244,427 $243,425 $209,290 $29,112 $— $726,254