Segmented Information

12 Months Ended

Dec. 31, 2023

Segmented Information

NOTE 36. SEGMENTED INFORMATION

The Company has identified three reporting segments for external reporting:

●

NAM consists of operations in Canada and the USA.

●

LATAM consists of operations in Argentina, Bolivia, Brazil, Colombia, Mexico, and Peru.

●

EH consists of operations in the Middle East, Africa, Europe, Australia and Asia.

Each segment generates revenue from the EI, AMS and ES product lines.

The accounting policies of these reportable operating segments are the same as those described in Note 3

“Summary of Material Accounting Policies”

For internal Management reporting, the Company’s Chief Operating Decision Maker (“CODM”) has identified four operating segments which include: Canada, USA, LATAM, and EH. Each of the operating segments are supported by the Corporate head office. Corporate overheads are allocated to the operating segments based on revenue. In assessing its reporting and operating

segments, the Company considered geographic locations, economic characteristics, the nature of products and services provided, the nature of production processes, the types of customers for its products and services, and distribution methods used. These considerations also factored into the decision to combine Canada and USA into one reporting segment. For each of the operating segments, the CODM reviews internal management reports on at least a quarterly basis.

The following tables provide certain financial information by the Company’s reporting segments.

Revenues and Operating Income


Years ended December 31,	North America				Latin America				Eastern Hemisphere				Total
Years ended December 31,	2023		2022		2023		2022		2023		2022		2023		2022
Segment revenue	$	1,939,778	$	1,303,885	$	473,824	$	221,628	$	792,716	$	349,247	$	3,206,318	$	1,874,760
Intersegment revenue		(33,168)		(93,778)		(1,295)		(434)		(9,760)		(2,750)		(44,223)		(96,962)
Revenue	$	1,906,610	$	1,210,107	$	472,529	$	221,194	$	782,956	$	346,497	$	3,162,095	$	1,777,798
EI		171,276		141,900		335,532		129,723		270,894		109,464		777,702		381,087
AMS		385,814		298,333		76,792		38,057		189,592		107,270		652,198		443,660
ES		1,349,520		769,874		60,205		53,414		322,470		129,763		1,732,195		953,051
Gross Margin		364,497		195,503		115,569		50,015		137,080		77,198		617,146		322,716
SG&A		194,870		179,862		71,538		47,379		129,467		74,001		395,875		301,242
Foreign exchange loss		398		872		58,398		17,290		137		1,040		58,933		19,202
Operating income (loss)	$	169,229	$	14,769	$	(14,367)	$	(14,654)	$	7,476	$	2,157	$	162,338	$	2,272

Segment Assets


	North America				Latin America				Eastern Hemisphere				Total
As at December 31,	2023		2022 1		2023		2022 1		2023		2022 1		2023		2022 1
Segment assets	$	1,606,304	$	1,602,755	$	631,577	$	829,676	$	1,099,817	$	828,517	$	3,337,698	$	3,260,948
Goodwill 2		220,657		224,992		-		89,264		351,153		360,140		571,810		674,396
Corporate		-		-		-		-		-		-		2,472		322,724
Total segment assets	$	1,826,961	$	1,827,747	$	631,577	$	918,940	$	1,450,970	$	1,188,657	$	3,911,980	$	4,258,068

Certain balances as at December 31, 2022 have been

re-presented

as a result of measurement period adjustments for the acquisition of Exterran as required by IFRS 3 “Business Combinations”, refer to Note 6 “Acquisition” for more information.

The total amount of goodwill in the Canada and USA operating segments are $40 million and $181 million, respectively (December 31, 2022 – $40 million and $185 million, respectively).