Segment Information

6 Months Ended

Jun. 30, 2019

NOTE 8 – SEGMENT INFORMATION

Our business is comprised of four operating segments: U.S. Eastern Region and Gulf Coast, U.S. Western Region, Canada and International. Our International segment consists of our operations outside of the U.S. and Canada. These segments represent our business of selling PVF to the energy sector across each of the upstream (exploration, production and extraction of underground oil and gas), midstream (gathering and transmission of oil and gas, gas utilities, and the storage and distribution of oil and gas) and downstream (crude oil refining and petrochemical and chemical processing and general industrials) sectors. Our two U.S. operating segments have been aggregated into a single reportable segment based on their economic similarities. As a result, we report segment information for the U.S., Canada and International.

The following table presents financial information for each reportable segment (in millions):


	Three Months Ended				Six Months Ended
	June 30,		June 30,		June 30,		June 30,
	2019		2018		2019		2018
Sales
U.S.	$	806	$	878	$	1,585	$	1,684
Canada		58		80		126		158
International		120		124		243		250
Consolidated sales	$	984	$	1,082	$	1,954	$	2,092

Operating income
U.S.	$	39	$	37	$	71	$	65
Canada		-		2		-		4
International		2		2		5		3
Total operating income		41		41		76		72

Interest expense		(10)		(10)		(21)		(18)
Other, net		1		(1)		1		1
Income before income taxes	$	32	$	30	$	56	$	55


					June 30,		December 31,
					2019		2018
Total assets
U.S.					$	2,282	$	2,088
Canada						95		124
International						252		222
Total assets					$	2,629	$	2,434

Our sales by product line are as follows (in millions):


	Three Months Ended				Six Months Ended
	June 30,		June 30,		June 30,		June 30,
Type	2019		2018		2019		2018
Line pipe	$	161	$	212	$	315	$	370
Carbon steel fittings and flanges		158		178		311		349
Total carbon steel pipe, fittings and flanges		319		390		626		719
Valves, automation, measurement and instrumentation		380		375		763		753
Gas products		145		147		278		271
Stainless steel and alloy pipe and fittings		42		49		92		102
General oilfield products		98		121		195		247
	$	984	$	1,082	$	1,954	$	2,092