SEGMENT REPORTING

3 Months Ended

Mar. 31, 2015

SEGMENT REPORTING [Abstract]

SEGMENT REPORTING

NOTE 13 - 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, remanufactures pumps and manufactures branded private label pumps. 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
2015
Sales	$ 225,792	$  74,263	$   41,539	$ 341,594
Operating income for reportable segments	$   22,866	$    8,626	$     3,279	$   34,771
2014
Sales	$ 231,224	$  79,881	$   37,399	$ 348,504
Operating income for reportable segments	$   24,425	$    9,549	$     3,125	$   37,099

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

	Three Months Ended March 31,
	2015	2014
Operating income for reportable segments	$     34,771	$      37,099
Adjustment for:
Amortization of intangibles	5,358	5,577
Corporate and other expense, net	11,314	10,368
Total operating income	18,099	21,154
Interest expense, net	2,683	3,397
Other expense (income), net	(249)	(150)
Income before income taxes	$    15,665	$      17,907