SEGMENT REPORTING

6 Months Ended

Jun. 30, 2012

SEGMENT REPORTING [Abstract]

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, metal working, fastener, industrial supply, safety products and safety 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 a customer's supply chain, 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 (in thousands):

	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
2012
Sales	$ 184,106	$   35,177	$ 42,611	$ 261,894	$359,178	$74,612	$80,391	$514,181
Operating income for   reportable segments	22,491	6,939	3,902	33,332	41,045	15,187	6,719	62,951
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

A reconciliation of operating income for reportable segments to the consolidated income before taxes is as follows:

	Three Months Ended June 30		Six Months Ended June 30
	2012	2011	2012	2011
Operating income for reportable segments	$  33,332	$ 22,561	$  62,951	$ 42,114
Adjustment for:
Amortization of intangibles	2,556	1,604	4,790	3,210
Corporate and other expense, net	9,929	7,326	17,409	13,731
Total operating income	20,847	13,631	40,752	25,173
Interest expense, net	762	1,023	1,591	2,045
Other expense (income), net	3	(15)	(12)	(36)
Income before income taxes	$  20,082	$ 12,623	$  39,173	$ 23,164