FASTENAL COFAST
FASTENAL CO Segments Disclosure
Note 10. Segment Reporting
Each of our geographic regions (U.S., Canada, Mexico, Central & South America, Europe, Asia, and SE Asia) are engaged in business activities for which they may earn sales and incur expenses. Discrete financial information is available at the geographic region level through our internal Return on Asset (ROA) reporting. The ROA reporting is ultimately a selling location income statement with an ROA calculation and the results are compiled by geographic region. ROA pre-tax profit measures financial performance and drives compensation programs.
Our Chief Operating Decision Maker (CODM) is a group consisting of our Chief Executive Officer and President/Chief Sales Officer. We consider each geographic region to be an operating segment. The CODM regularly reviews ROA pre-tax profit to make decisions about the allocation of resources at the geographic region level. Operating segment significant expense categories and amounts are not regularly reviewed by or provided to our CODM. Segment expenses represent the difference between net sales and ROA pre-tax profit and consist of cost of sales and SG&A expenses. However, our CODM reviews consolidated expense information to manage the operations of the business.
Considering our operating segments outside of the U.S. individually represent less than 10% of our total operating segment net sales, ROA pre-tax profit, and ROA assets, we do not consider them reportable segments. Therefore, we report the results of our one reportable segment (U.S.) below. Further details on our significant accounting policies can be found in Note 1, which are applied company wide.
Our segment measure of profit or loss is ROA pre-tax profit and our measure of assets is ROA assets. ROA pre-tax profit is not a financial measure calculated in accordance with GAAP and excludes inter-company transactions.
The following table presents a reconciliation of reportable segment net sales from external customers to consolidated net sales for the periods ended December 31:
| 2025 | 2024 | 2023 | |||||||||
| U.S. net sales from external customers | $ | 6,818.9 | 6,273.1 | 6,139.8 | |||||||
Other operating segment net sales (1) | 1,381.6 | 1,272.9 | 1,206.9 | ||||||||
| Net sales | $ | 8,200.5 | 7,546.0 | 7,346.7 | |||||||
(1) Other operating segment net sales includes all other operating segments that are below the reportable segment quantitative threshold.
The following table presents a reconciliation of reportable segment ROA pre-tax profit to consolidated income before income taxes for the periods ended December 31:
| 2025 | 2024 | 2023 | |||||||||
| U.S. ROA pre-tax profit | $ | 1,432.5 | 1,303.2 | 1,318.2 | |||||||
Other operating segment pre-tax profit (1) | 222.5 | 204.9 | 203.8 | ||||||||
| Income before income taxes | $ | 1,655.0 | 1,508.1 | 1,522.0 | |||||||
(1) Other operating segment pre-tax profit includes ROA pre-tax profit for all other operating segments that are below the reportable segment quantitative threshold and immaterial allocations excluded from ROA pre-tax profit.
The following table presents a reconciliation of reportable segment ROA assets to consolidated total assets for the periods ended December 31:
| 2025 | 2024 | |||||||
U.S. ROA assets (1) | $ | 2,446.8 | 2,189.6 | |||||
Other operating segment ROA assets (2) | 667.1 | 585.2 | ||||||
Other current assets (3) | 505.0 | 580.0 | ||||||
| Property and equipment | 987.1 | 915.6 | ||||||
| Intangibles and other assets | 137.9 | 148.4 | ||||||
| Operating lease right-of-use assets | 309.0 | 279.2 | ||||||
| Total assets | $ | 5,052.9 | 4,698.0 | |||||
(1) Operating segment ROA assets primarily include accounts receivable, inventory, selling location vehicles, and exclude certain centrally managed assets.
(2) Other operating segment ROA assets include all other operating segments that are below the reportable segment quantitative threshold.
(3) Other current assets includes cash and cash equivalents, the allowance for credit losses, inventories that are centrally managed, prepaid income taxes, and other current assets.
Other Segment Disclosures
Interest revenue and interest expense included in the ROA pre-tax profit are not material. The following table presents a reconciliation of reportable segment ROA pre-tax profit depreciation and amortization expense to consolidated depreciation and amortization expense for the periods ended December 31:
| 2025 | 2024 | 2023 | |||||||||
| U.S. ROA pre-tax profit depreciation and amortization expense | $ | 163.9 | 188.1 | 168.1 | |||||||
Other operating segment ROA pre-tax profit depreciation and amortization expense (1) | 25.6 | 27.4 | 24.7 | ||||||||
Other reconciling items (2) | (10.3) | (40.1) | (15.5) | ||||||||
| Depreciation and amortization expense | $ | 179.2 | 175.4 | 177.3 | |||||||
(1) Other operating segment ROA pre-tax profit depreciation and amortization expense include all other operating segments that are below the reportable segment quantitative threshold.
(2) Other reconciling items includes depreciation and amortization expense for certain assets not allocated to the ROA and differences in allocations specific to the ROA that drive decisions in the field and compensation programs.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 5, 2026 | Showing above |
| 2024 | Feb 6, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.