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Business Segments
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Business Segments

16. Business Segments

The Company has four operating segments – U.S. Energy, U.S. Process Solutions, Canada and 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 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 110 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 15 countries and serves the needs of its international customers from approximately 20 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

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

1,591

 

 

$

315

 

 

$

230

 

 

$

2,136

 

Operating profit (loss)

 

 

103

 

 

 

30

 

 

 

(2

)

 

 

131

 

Impairment and other charges

 

 

—

 

 

 

—

 

 

 

10

 

 

 

10

 

Depreciation and amortization

 

 

16

 

 

 

2

 

 

 

1

 

 

 

19

 

Property, plant and equipment, net

 

 

95

 

 

 

11

 

 

 

13

 

 

 

119

 

Total assets

 

 

991

 

 

 

179

 

 

 

150

 

 

 

1,320

 

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

 

 

714

 

 

 

141

 

 

 

153

 

 

 

1,008

 

 

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

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Product Category

 

 

 

 

 

 

 

 

 

Pumps, production and drilling

 

$

531

 

 

$

423

 

 

$

428

 

Pipe

 

 

432

 

 

 

277

 

 

 

228

 

Valves

 

 

409

 

 

 

317

 

 

 

326

 

Fittings and flanges

 

 

389

 

 

 

285

 

 

 

287

 

Mill tool, MRO, safety and other

 

 

375

 

 

 

330

 

 

 

350

 

Total

 

$

2,136

 

 

$

1,632

 

 

$

1,619