SEGMENT REPORTING

3 Months Ended

Mar. 31, 2014

SEGMENT REPORTING [Abstract]

SEGMENT REPORTING

NOTE 12 - SEGMENT 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.

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

			Three Months ended March 31,
	Service Centers		IPS		SCS		Total
2014
Sales	$	231,224	$	79,881	$	37,399	$	348,504
Operating income for reportable segments	$	24,425	$	9,549	$	3,125	$	37,099
2013
Sales	$	210,091	$	41,523	$	38,483	$	290,097
Operating income for reportable segments	$	25,047	$	7,117	$	3,185	$	35,349

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

	Three Months Ended March 31,
	2014			2013
Operating income for reportable segments	$	37,099		$	35,349
Adjustment for:
Amortization of intangibles		4,570			2,642
Corporate and other expense, net		10,368			10,003
Total operating income		22,161			22,704
Interest expense, net		3,397			1,627
Other expense (income), net		(150	)		1
Income before income taxes	$	18,914		$	21,076