SEGMENT AND GEOGRAPHICAL REPORTING

12 Months Ended

Dec. 31, 2013

SEGMENT AND GEOGRAPHICAL REPORTING [Abstract]

SEGMENT AND GEOGRAPHICAL REPORTING

NOTE 16 – SEGMENT AND GEOGRAPHICAL REPORTING

The Company’s reportable business segments are: Service Centers, Innovative Pumping Solutions and Supply Chain Services. The Service Centers segment is engaged in providing maintenance, MRO 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 pump packages. The Supply Chain Services 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.

Business Segmented Financial Information

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

Years Ended December 31,	Service Centers	Innovative Pumping Solutions	Supply Chain Services	Total
2013
Sales	$884,821	$209,175	$147,514	$1,241,510
Operating income for reportable segments	107,142	33,766	12,490	153,398
Identifiable assets at year end	500,978	66,007	48,049	615,034
Capital expenditures	6,321	357	206	6,884
Depreciation	7,770	446	366	8,582
Amortization	8,574	1,043	2,213	11,830
Interest expense	3,762	1,636	884	6,282
2012
Sales	$779,038	$161,834	$156,238	$1,097,110
Operating income for reportable segments	88,924	32,099	12,495	133,518
Identifiable assets at year end	440,271	56,982	50,515	547,768
Capital expenditures	4,829	261	-	5,090
Depreciation	5,734	306	175	6,215
Amortization	8,795	663	1,428	10,886
Interest expense	3,701	1,243	616	5,560
2011
Sales	$560,233	$102,305	$144,467	$807,005
Operating income for reportable segments	64,491	16,920	8,455	89,866
Identifiable assets at year end	294,410	43,636	56,058	394,104
Capital expenditures	1,258	310	73	1,641
Depreciation	2,090	326	276	2,692
Amortization	4,725	675	1,172	6,572
Interest expense	2,073	986	459	3,518

	Years Ended December 31,
	2013	2012	2011
Operating income for reportable segments	$ 153,398	$ 133,518	$ 89,866
Adjustments for:
Amortization of intangibles	11,830	10,886	6,572
Corporate and other expense, net	40,644	32,110	27,809
Total operating income	100,924	90,522	55,485
Interest expense	6,282	5,560	3,518
Other expenses (income), net	(75)	(47)	(28)
Income before income taxes	$ 94,717	$ 85,009	$ 51,995

The Company had capital expenditures at Corporate of $0.9 million, $9.0 million, and $2.5 million for the years ended December 31, 2013, 2012, and 2011, respectively. The Company had identifiable assets at Corporate of $20.3 million, $22.0 million, and $11.2 million as of December 31, 2013, 2012, and 2011, respectively. Corporate depreciation was $1.2 million, $1.0 million, and $0.8 million for the years ended December 31, 2013, 2012, and 2011, respectively.

Geographical Information

Revenues are presented in geographic area based on location of the facility shipping products or providing services. Long-lived assets are based on physical locations and are comprised of the net book value of property.

The Company’s revenues and property and equipment by geographical location are as follow (in thousands):

	Years Ended December 31,
	2013	2012	2011
Revenues
United States	$1,075,962	$1,039,712	$ 807,005
Canada	165,548	57,398	-
Total	$1,241,510	$1,097,110	$ 807,005

	As of December 31,
	2013	2012
Property and Equipment, net
United States	$ 32,878	$ 31,334
Canada	25,375	27,379
Total	$58,253	$58,713