SEGMENT REPORTING

3 Months Ended

Jun. 30, 2011

SEGMENT REPORTING

SEGMENT REPORTING

NOTE 8: SEGMENT REPORTING

The Service Centers segment is engaged in providing maintenance, repair and operating products, equipment and integrated services, including logistics capabilities, to industrial customers.  The Service Centers segment provides a wide range of MRO products in the rotating equipment, bearing, power transmission, hose, fluid power, industrial supply and safety products and services categories.  The Innovative Pumping Solutions segment fabricates and assembles custom-made engineered pump packages.  The Supply Chain Services segment manages all or part of customer supply chains, including inventories.

The high degree of integration of the Company's operations necessitates the use of a substantial number of allocations and apportionments in the determination of business segment information.  Sales are shown net of intersegment eliminations.   All business segments operate primarily in the United States.

Financial information relating the Company's segments is as follows for the periods indicated:

	Three Months ended June 30,								Six Months ended June 30
	Service Centers		Innovative Pumping Solutions		Supply Chain Services		Total		Service Centers		Innovative Pumping Solutions		Supply Chain Services		Total
2011
Sales	$	139,503	$	21,814	$	36,358	$	197,675	$	271,054	$	38,499	$	71,209	$	380,762
Operating income for reportable segments		17,340		3,085		2,136		22,561		32,121		5,943		4,050		42,114
2010
Sales	$	117,090	$	18,745	$	31,457	$	167,292	$	220,385	$	31,022	$	62,877	$	314,284
Operating income for reportable segments		14,069		2,260		1,520		17,849		23,540		4,779		3,542		31,861

A reconciliation of operating income for reportable segments to the consolidated income before taxes is as follows for the periods indicated (in thousands):

	Three Months Ended June 30						Six Months Ended June 30
	2011			2010			2011			2010
Operating income for reportable segments	$	22,561		$	17,849		$	42,114		$	31,861
Adjustment for:
Amortization of intangibles		1,604			1,520			3,210			2,819
Corporate and other expense, net		7,326			7,200			13,731			13,166
Total operating income		13,631			9,129			25,173			15,876
Interest expense, net		1,023			1,604			2,045			2,598
Other expense (income), net		(15	)		(11	)		(36	)		(214	)
Income before income taxes	$	12,623		$	7,536		$	23,164		$	13,492