SEGMENT REPORTING

9 Months Ended

Sep. 30, 2012

SEGMENT REPORTING [Abstract]

SEGMENT REPORTING

NOTE 10 - SEGMENT REPORTING

The Service Centers segment is engaged in providing maintenance, repair and operating products (MROP), equipment and integrated services, including logistics capabilities, to industrial customers. The Service Centers segment provides a wide range of MROP products in the rotating equipment, bearing, power transmission, hose, fluid power, metal working, fastener, industrial supply, safety products and safety services categories. The IPS segment fabricates and assembles custom-made engineered pump packages. The SCS segment manages all or part of a customer's supply chain, including warehouse and inventory management.

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.

The following table sets out financial information relating the Company's segments (in thousands):

	Three Months ended September 30,								Nine Months ended September 30,
	Service Centers		IPS		SCS		Total		Service Centers		IPS		SCS		Total
2012
Sales	$	212,497	$	38,854	$	38,572	$	289,923	$	571,675	$	113,466	$	118,963	$	804,104
Operating income for reportable segments	$	26,410	$	7,227	$	2,781	$	36,418	$	67,455	$	22,414	$	9,500	$	99,369
2011
Sales	$	141,817	$	31,342	$	34,696	$	207,855	$	412,871	$	69,841	$	105,905	$	588,617
Operating income for reportable segments	$	15,866	$	4,812	$	2,024	$	22,702	$	47,987	$	10,755	$	6,074	$	64,816

The following table presents reconciliations of operating income for reportable segments to the consolidated income before taxes (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Operating income for reportable segments	$	36,418		$	22,702		$	99,369		$	64,816
Adjustment for:
Amortization of intangibles		3,474			1,595			8,264			4,805
Corporate and other expense, net		8,430			6,671			25,839			20,402
Total operating income		24,514			14,436			65,266			39,609
Interest expense, net		2,287			760			3,878			2,805
Other expense (income), net		(21	)		(4	)		(33	)		(40	)
Income before income taxes	$	22,248		$	13,680		$	61,421		$	36,844