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Business Segments
 3 Months Ended
Mar. 31, 2014
Segment Reporting [Abstract]  
Business Segments

5. Business Segments

Operating results by segment are as follows (in millions):

 

     Three Months
Ended March 31,		  
     2014     2013  

Revenue:

     

United States

    $ 704      $ 712   

Canada

      191        215   

International

      182        145   
  

 

 

    

 

 

  

Total Revenue

    $ 1,077      $ 1,072   
  

 

 

    

 

 

  

Operating Profit:

     

United States

    $ 30      $ 33   

Canada

      16        17   

International

      16        8   
  

 

 

    

 

 

  

Total Operating Profit

    $ 62      $ 58   
  

 

 

    

 

 

  

Operating Profit %:

     

United States

      4.3 %      4.6 % 

Canada

      8.4 %      7.9 % 

International

      8.8 %      5.5 % 

Total Operating Profit %

      5.8 %      5.4 % 

Primary End-Market:

The following table presents combined revenues by primary end-market (in millions):

 

     Three Months
Ended March 31,		  
     2014      2013  

Energy Branches

    $ 899       $ 890   

Supply Chain

      178         182   
  

 

 

     

 

 

  

Total

    $ 1,077       $ 1,072   
  

 

 

     

 

 

  

Our Energy Branches are the legacy brick and mortar supply store operations that provide products to multiple upstream and midstream customers from a single location. These branches serve repeat customers across a variety of pricing models. Our Supply Chain group targets a broader customer sector to include downstream, upstream, industrial and manufacturing, in which our customers are generally contractually committed to source from us under a single business model that includes a fixed pricing structure. We are typically integrated into our customers’ facilities; have on-site NOW branches and inventory committed to a specific customer; perform duties otherwise managed by our customers; manage third party materials on behalf of our customers; employ vending machines and/or tool cribs to store and dispense materials on-demand; and have a much greater component of technology to enable e-commerce and key performance indicators to be measured and reported specifically to each customer. While Energy Branches and Supply Chain serve different markets, in some cases customers require the similar products resulting in some overlap of products carried and sold.

 

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

 

     Three Months Ended
March 31,		  
     2014      2013  

Product Category

      

Drilling and production

    $ 248       $ 245   

Valves

      222         194   

Pipe

      202         220   

Fittings and flanges

      186         191   

Mill tool, MRO, safety and other

      219         222   
  

 

 

     

 

 

  

Total

    $ 1,077       $ 1,072