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Business Segments
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Business Segments

17. Business Segments

The Company has three reportable segments – United States, Canada and International. These segments were determined primarily based on geographical markets. The Chief Operating Decision Maker (“CODM”) uses operating profit to evaluate segment performance and allocate resources. Operating profit is revenue less cost of products, warehousing, selling and administrative expenses and impairment and other charges. The Company’s Chief Executive Officer has been identified as the CODM. The Company has disclosed for each reportable segment the significant expense categories that are reviewed by the CODM in the tables below and there are no additional significant expenses within the expense categories presented.

United States

The Company has approximately 110 locations in the U.S., which are geographically positioned to serve the upstream, midstream, downstream and renewable 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 locations across the country. The Company’s Canadian segment primarily serves the energy exploration, production, mining and drilling business.

International

The Company serves the needs of its international customers from approximately 15 locations outside of the U.S. and Canada, 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.

In the third quarter of 2024, we began a plan to restructure operations in the International segment to optimize efficiencies and to improve operating margins. For the year ended December 31, 2024, the Company recognized $9 million in charges, including approximately $6 million of foreign currency translation losses included in impairment and other charges, approximately $2 million of inventory write-downs included in cost of products and $1 million of other exit costs included in warehousing, selling and

administrative. We could incur additional non-cash foreign currency translation losses as we complete the International restructuring; however, we do not expect the remaining restructuring related liabilities to be material.

The following table presents revenues, significant segment expenses and other segments items included in operating profit for each of the Company’s reportable segments as of and for the year ended December 31 (in millions):

 

 

United States

 

 

Canada

 

 

International

 

 

Total

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

1,880

 

 

$

253

 

 

$

240

 

 

$

2,373

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of products

 

 

1,456

 

 

 

189

 

 

 

193

 

 

 

1,838

 

Warehousing, selling and administrative expenses

 

 

329

 

 

 

51

 

 

 

36

 

 

 

416

 

Impairment and other charges

 

 

—

 

 

 

—

 

 

 

6

 

 

 

6

 

Operating profit

 

$

95

 

 

$

13

 

 

$

5

 

 

 

113

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

1

 

Income before income taxes

 

 

 

 

 

 

 

 

 

 

$

114

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

1,749

 

 

$

282

 

 

$

290

 

 

$

2,321

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of products

 

 

1,343

 

 

 

207

 

 

 

236

 

 

 

1,786

 

Warehousing, selling and administrative expenses

 

 

302

 

 

 

54

 

 

 

39

 

 

 

395

 

Operating profit

 

$

104

 

 

$

21

 

 

$

15

 

 

 

140

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

(2

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

$

138

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

1,591

 

 

$

315

 

 

$

230

 

 

$

2,136

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of products

 

 

1,214

 

 

 

231

 

 

 

185

 

 

 

1,630

 

Warehousing, selling and administrative expenses

 

 

274

 

 

 

54

 

 

 

37

 

 

 

365

 

Impairment and other charges

 

 

—

 

 

 

—

 

 

 

10

 

 

 

10

 

Operating profit (loss)

 

$

103

 

 

$

30

 

 

$

(2

)

 

 

131

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

8

 

Income before income taxes

 

 

 

 

 

 

 

 

 

 

$

139

 

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

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

$

135

 

 

$

11

 

 

$

11

 

 

$

157

 

Total assets

 

 

1,299

 

 

 

177

 

 

 

145

 

 

 

1,621

 

Depreciation and amortization

 

 

31

 

 

 

2

 

 

 

1

 

 

 

34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

$

106

 

 

$

12

 

 

$

13

 

 

$

131

 

Total assets

 

 

1,192

 

 

 

177

 

 

 

160

 

 

 

1,529

 

Depreciation and amortization

 

 

23

 

 

 

2

 

 

 

1

 

 

 

26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

$

95

 

 

$

11

 

 

$

13

 

 

$

119

 

Total assets

 

 

991

 

 

 

179

 

 

 

150

 

 

 

1,320

 

Depreciation and amortization

 

 

16

 

 

 

2

 

 

 

1

 

 

 

19

 

 

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

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Product Category

 

 

 

 

 

 

 

 

 

Pumps, production and drilling

 

$

623

 

 

$

639

 

 

$

531

 

Pipe

 

 

395

 

 

 

422

 

 

 

432

 

Valves

 

 

520

 

 

 

437

 

 

 

409

 

Fittings and flanges

 

 

475

 

 

 

433

 

 

 

389

 

Mill tool, MRO, safety and other

 

 

360

 

 

 

390

 

 

 

375

 

Total

 

$

2,373

 

 

$

2,321

 

 

$

2,136