SEGMENT REPORTING

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

The Company has three operating and reportable segments - Service Centers, Innovative Pumping Solutions and Supply Chain Services: the Service Centers segment is engaged in providing maintenance, MRO products and equipment, 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.

These business or operating segments were determined primarily on the distribution channels of the products and services offered as and the nature of the customer markets and the primary driver of the customers spend. Business segments are defined components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. Our CODM is the Chief Executive Officer. The Company's CODM directs the allocation of resources to operating or business segments based on revenue, operating income, and capital expenditures of each respective segment. The allocation of resources across the operating segments is dependent upon, among other factors, the operating segments' historical or future expected operating margins; the operating segments' historical or future expected returns on capital; outlook within a specific market; opportunities to grow profitability; new products, services or new customer accounts; confidence in management; and competitive landscape and intensity.

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):

Years Ended December 31,	Service Centers		Innovative Pumping Solutions		Supply Chain Services		Total
2023
Total Revenue	$	1,145,082	$	273,150	$	260,368	$	1,678,600
Operating income for reportable segments, excluding adjustments	163,877		44,260		21,524		229,661
Identifiable assets at year end	697,438		226,621		62,610		986,669
Capital expenditures	8,837		1,786		—		10,623
Depreciation	2,705		3,726		27		6,458
Amortization	12,266		5,965		—		18,231

 

Years Ended December 31,	Service Centers		Innovative Pumping Solutions		Supply Chain Services		Total
2022
Total Revenue	$	1,009,356	$	231,102	$	240,374	$	1,480,832
Operating income for reportable segments, excluding adjustments	127,174		30,037		19,530		176,741
Identifiable assets at year end	746,548		144,352		90,480		981,380
Capital expenditures	1,419		2,506		43		3,968
Depreciation	3,038		4,549		144		7,731
Amortization	12,294		6,621		—		18,915

Years Ended December 31,	Service Centers		Innovative Pumping Solutions		Supply Chain Services		Total
2021
Total Revenue	$	816,496	$	139,591	$	157,834	$	1,113,921
Operating income for reportable segments, excluding adjustments	98,931		12,070		11,963		122,964
Identifiable assets at year end	642,184		134,374		44,684		821,242
Capital expenditures	999		2,574		25		3,598
Depreciation	3,475		4,270		389		8,134
Amortization	11,107		6,090		—		17,197

	Years Ended December 31,
	2023		2022		2021
Operating income for reportable segments, excluding adjustments	$	229,661	$	176,741	$	122,964
Adjustments for:
Amortization of intangibles	18,231		18,915		17,197
Corporate and other expense, net	72,708		60,074		65,910
Total operating income	$	138,722	$	97,752	$	39,857
Interest expense	53,146		29,135		21,089
Other expenses (income), net	(1,355)		2,716		(414)
Income before income taxes	$	86,931	$	65,901	$	19,182

The Company had capital expenditures at corporate of $1.6 million, $0.7 million, and $2.4 million for the years ended December 31, 2023, 2022, and 2021, respectively. The Company had identifiable assets at corporate of $190.8 million, $56.8 million, and $85.0 million as of December 31, 2023, 2022, and 2021, respectively. Corporate depreciation was $2.0 million, $1.9 million, and $1.8 million for the years ended December 31, 2023, 2022, and 2021, respectively.