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Segment Information | 9 Months Ended
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Sep. 30, 2024
Segment Reporting [Abstract] |
Segment Information | Note 16 – Segment Information As a result of the Source Atlantic acquisition in the third quarter of 2024, discussed in Note 3 – Business Acquisitions, the Company realigned its reportable segments to align with its business strategy and the manner in which the CODM assesses performance and strategic execution and makes decisions regarding the allocation of resources. Beginning in the third quarter of 2024, the Company has four reporting segments: Lawson, TestEquity, Gexpro Services and Canada Branch Division. Canada Branch Division includes the results of the Bolt and Source Atlantic subsidiaries. No changes were made to the Lawson, TestEquity and Gexpro Services reportable segments. For additional details about our segment realignment in the third quarter of 2024, see Note 1 – Nature of Operations and Basis of Presentation. The segment realignment had no impact on our financial condition or results of operations. Prior period segment results have been recast to reflect our new reportable segments. 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. Canada Branch Division combines the operations of our Bolt and Source Atlantic subsidiaries, which distribute industrial MRO supplies, safety products, fasteners, and related value-add services to the Canadian MRO market primarily through the sale of products to its walk-up customers through 38 branch locations across Canada. 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. There is no revenue associated with the All Other category. Financial information for the Company’s segments and reconciliations of that information to the unaudited condensed consolidated financial statements is presented below.
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in thousands) | 2024 |  | 2023 |  | 2024 |  | 2023
Revenue |  |  |  |  |  |  |
Lawson | $ | 117,957 |  |  | $ | 114,477 |  |  | $ | 357,261 |  |  | $ | 358,903 |
TestEquity | 195,244 |  |  | 207,657 |  |  | 579,874 |  |  | 451,082 |
Gexpro Services | 116,141 |  |  | 103,232 |  |  | 321,926 |  |  | 312,523 |
Canada Branch Division | 39,092 |  |  | 13,543 |  |  | 66,058 |  |  | 42,655 |
Intersegment revenue elimination | (415) |  |  | — |  |  | (1,478) |  |  | — |
Total revenue | $ | 468,019 |  |  | $ | 438,909 |  |  | $ | 1,323,641 |  |  | $ | 1,165,163 |
Operating income (loss) |  |  |  |  |  |  |
Lawson | $ | 726 |  |  | $ | 10,643 |  |  | $ | 10,962 |  |  | $ | 27,358 |
TestEquity | 4,329 |  |  | (5,027) |  |  | (1,062) |  |  | (8,183) |
Gexpro Services | 11,543 |  |  | 7,332 |  |  | 25,096 |  |  | 23,484 |
Canada Branch Division | 2,523 |  |  | 1,468 |  |  | 4,846 |  |  | 4,545 |
All Other | (174) |  |  | (1,633) |  |  | (3,954) |  |  | (3,924) |
Total operating income (loss) | $ | 18,947 |  |  | $ | 12,783 |  |  | $ | 35,888 |  |  | $ | 43,280 |
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) |  | Lawson |  | TestEquity |  | Gexpro Services |  | Canada Branch Division |  | Elimination |  | Total
Three Months Ended September 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 117,953 |  |  | $ | 195,210 |  |  | $ | 115,764 |  |  | $ | 39,092 |  |  | $ | — |  |  | $ | 468,019 |
Intersegment revenue |  | 4 |  |  | 34 |  |  | 377 |  |  | — |  |  | (415) |  |  | — |
Revenue |  | $ | 117,957 |  |  | $ | 195,244 |  |  | $ | 116,141 |  |  | $ | 39,092 |  |  | $ | (415) |  |  | $ | 468,019 |
Three Months Ended September 30, 2023 |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 114,477 |  |  | $ | 207,657 |  |  | $ | 103,232 |  |  | $ | 13,543 |  |  | $ | — |  |  | $ | 438,909 |
Intersegment revenue |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Revenue |  | $ | 114,477 |  |  | $ | 207,657 |  |  | $ | 103,232 |  |  | $ | 13,543 |  |  | $ | — |  |  | $ | 438,909 |
Nine Months Ended September 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 357,204 |  |  | $ | 579,721 |  |  | $ | 320,658 |  |  | $ | 66,058 |  |  | $ | — |  |  | $ | 1,323,641 |
Intersegment revenue |  | 57 |  |  | 153 |  |  | 1,268 |  |  | — |  |  | (1,478) |  |  | — |
Revenue |  | $ | 357,261 |  |  | $ | 579,874 |  |  | $ | 321,926 |  |  | $ | 66,058 |  |  | $ | (1,478) |  |  | $ | 1,323,641 |
Nine Months Ended September 30, 2023 |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 358,903 |  |  | $ | 451,082 |  |  | $ | 312,523 |  |  | $ | 42,655 |  |  |  |  | $ | 1,165,163 |
Intersegment revenue |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Revenue |  | $ | 358,903 |  |  | $ | 451,082 |  |  | $ | 312,523 |  |  | $ | 42,655 |  |  | $ | — |  |  | $ | 1,165,163 |
Total assets by segment were as follows:
(in thousands) | September 30, 2024 |  | December 31, 2023
Total assets by segment |  |  |
Lawson | $ | 554,384 |  |  | $ | 467,195 |
TestEquity | 651,667 |  |  | 638,950 |
Gexpro Services | 333,591 |  |  | 329,799 |
Canada Branch Division | 193,283 |  |  | 71,446 |
All Other | 52,017 |  |  | 42,941 |
Total | $ | 1,784,942 |  |  | $ | 1,550,331 |

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- Definition The entire disclosure for reporting segments including data and tables. 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