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Business Segments | 12 Months Ended
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Dec. 31, 2021
Segment Reporting [Abstract] |
Business Segments | 15. Business Segments As of December 31, 2021, the Company had four operating segments – U.S. Energy, U.S. Process Solutions, Canada and International. Prior to 2020, the Company had five reporting units – U.S. Energy, U.S. Supply Chain, U.S. Process Solutions, Canada and International. The Company combined two operating segments in 2020 within the U.S. reportable segment, U.S. Energy and U.S. Supply Chain, to align with updates to the operational and management structure. Each of these two reporting units had zero goodwill prior to and after the combination. 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 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 115 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 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 20 countries and serves the needs of its international customers from approximately 25 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 |
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 |
2020 |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 1,153 |  |  | $ | 209 |  |  | $ | 257 |  |  | $ | 1,619 |
Operating loss |  |  | (281 | ) |  |  | (60 | ) |  |  | (79 | ) |  |  | (420 | )
Impairment and other charges |  |  | 189 |  |  |  | 60 |  |  |  | 72 |  |  |  | 321 |
Depreciation and amortization |  |  | 23 |  |  |  | 2 |  |  |  | 3 |  |  |  | 28 |
Property, plant and equipment, net |  |  | 70 |  |  |  | 12 |  |  |  | 16 |  |  |  | 98 |
Total assets (1) |  |  | 714 |  |  |  | 141 |  |  |  | 153 |  |  |  | 1,008 |
2019 |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 2,240 |  |  | $ | 319 |  |  | $ | 392 |  |  | $ | 2,951 |
Operating loss |  |  | (6 | ) |  |  | (19 | ) |  |  | (58 | ) |  |  | (83 | )
Impairment and other charges |  |  | 43 |  |  |  | 27 |  |  |  | 58 |  |  |  | 128 |
Depreciation and amortization |  |  | 30 |  |  |  | 2 |  |  |  | 9 |  |  |  | 41 |
Property, plant and equipment, net |  |  | 84 |  |  |  | 14 |  |  |  | 22 |  |  |  | 120 |
Total assets (1) |  |  | 1,034 |  |  |  | 259 |  |  |  | 298 |  |  |  | 1,591 |
(1) Beginning in 2020, due to asset impairments and declining market conditions, reporting segment assets excluded inter-segment adjustments that were eliminated in the total assets in the consolidated balance sheets. Prior periods have been reclassified to conform with the current period presentation. The following table presents a comparison of the approximate sales mix in the principal product categories (in millions):
|  | Year Ended December 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
Product Category |  |  |  |  |  |  |  |  |
Drilling and production |  | $ | 423 |  |  | $ | 428 |  |  | $ | 711 |
Pipe |  |  | 277 |  |  |  | 228 |  |  |  | 473 |
Valves |  |  | 317 |  |  |  | 326 |  |  |  | 608 |
Fittings and flanges |  |  | 285 |  |  |  | 287 |  |  |  | 524 |
Mill tool, MRO, safety and other |  |  | 330 |  |  |  | 350 |  |  |  | 635 |
Total |  | $ | 1,632 |  |  | $ | 1,619 |  |  | $ | 2,951 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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