SEGMENT REPORTING

6 Months Ended

Jun. 30, 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 June 30,								Six Months ended June 30,
	Service Centers		IPS		SCS		Total		Service Centers		IPS		SCS		Total
2014
Sales	$	248,839	$	90,575	$	42,189	$	381,603	$	480,063	$	170,456	$	79, 588	$	730,107
Operating income for reportable segments	$	25,486	$	15,800	$	3,579	$	44,865	$	49,911	$	25,350	$	6,703	$	81,964
2013
Sales	$	217,925	$	52,954	$	37,063	$	307,942	$	428,023	$	94,477	$	75,539	$	598,039
Operating income for reportable segments	$	23,376	$	8,090	$	3,160	$	34,626	$	48,420	$	15,208	$	6,347	$	69,975

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014			2013
Operating income for reportable segments	$	44,865	$	34,626	$	81,964		$	69,975
Adjustment for:
Amortization of intangibles		4,653		3,145		9,223			5,787
Corporate and other expense, net		11,813		8,216		22,181			18,219
Total operating income		28,399		23,265		50,560			45,969
Interest expense, net		3,176		1,689		6,573			3,316
Other expense (income), net		141		21		(9	)		22
Income before income taxes	$	25,082	$	21,555	$	43,996		$	42,631