The Company operates ten segments across nine geographic divisions: Central, Midwest, New York, Northeast, Southern, Southeast, Southwest, Western, Canada, and Ames. The New York segment was established following the acquisition of Kamco. These nine geographic divisions are combined into a single reportable segment due to similarities in economic characteristics, products, production processes, customers, and distribution methods. The Company's consolidated results also include corporate activities, such as the corporate office building and support services, as well as other activities including Tool Source Warehouse, Inc., an internal tool distributor, and Ames. The Chief Executive Officer, serving as the Chief Operating Decision Maker (CODM), evaluates segment performance based on net sales, Adjusted EBITDA, and other metrics. Adjusted EBITDA is a non-GAAP measure used to assess core operating performance by excluding items not reflective of core operations.
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