SEGMENT REPORTING

6 Months Ended

Jun. 30, 2017

SEGMENT REPORTING [Abstract]

SEGMENT REPORTING

NOTE 14 - 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 related to the Company's segments (in thousands):

	For the Three Months Ended June 30,
	2017									2016
	SC		IPS			SCS		Total		SC		IPS		SCS		Total
Sales	$	164,749	$	44,470		$	41,479	$	250,698	$	161,832	$	54,353	$	40,030	$	256,215
Amortization		2,227		1,793			271		4,291		2,284		1,955		271		4,510
Income (loss) from operations		16,190		(38	)		3,447		19,599		10,313		3,532		3,931		17,776
Income from operations, excluding amortization	$	18,417	$	1,755		$	3,718	$	23,890	$	12,597	$	5,487	$	4,202	$	22,286

 

	For the Six Months Ended June 30,
	2017								2016
	SC		IPS		SCS		Total		SC		IPS		SCS		Total
Sales	$	313,461	$	93,528	$	82,236	$	489,225	$	329,334	$	101,784	$	78,658	$	509,776
Amortization		4,477		3,588		542		8,607		4,579		3,917		542		9,038
Income from operations		27,281		1,676		7,234		36,191		17,555		1,876		7,140		26,571
Income from operations, excluding amortization	$	31,758	$	5,264	$	7,776	$	44,798	$	22,134	$	5,793	$	7,682	$	35,609

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,
	2017		2016		2017			2016
Operating income for reportable segments, excluding amortization	$	23,890	$	22,286	$	44,798		$	35,609
Adjustment for:
Amortization of intangible assets		4,291		4,510		8,607			9,038
Corporate expense		9,342		8,927		17,698			19,724
Income from operations		10,257		8,849		18,493			6,847
Interest expense		3,992		3,951		7,645			7,360
Other expense (income), net		57		9		(171	)		(146	)
Income (loss) before income taxes	$	6,208	$	4,889	$	11,019		$	(367	)