SEGMENT REPORTING

6 Months Ended

Jun. 30, 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 provides a wide range of MRO products and 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
2015
Sales	$ 214,116	$    66,905	$    42,667	$   323,688	$    439,907	$ 141,169	$    84,206	$    665,282
Operating income for reportable segments	$   21,119	$     5,912	$      3,736	$    30,767	$     43,985	$   14,539	$      7,014	$      65,538
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

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,
	2015	2014	2015	2014
Operating income for reportable segments	$     30,767	$    44,865	$      65,538	$    81,964
Adjustment for:
Amortization of intangibles	5,309	5,660	10,667	11,237
Corporate expense	11,463	11,813	22,777	22,181
Total operating income	13,995	27,392	32,094	48,546
Interest expense	2,592	3,176	5,275	6,573
Other expense (income), net	(145)	141	(394)	(9)
Income before income taxes	$    11,548	$    24,075	$     27,213	$   41,982