SEGMENT REPORTING

3 Months Ended

Mar. 31, 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 March 31,
	2017								2016
	SC		IPS		SCS		Total		SC		IPS			SCS		Total
Sales	$	148,713	$	49,058	$	40,756	$	238,527	$	167,502	$	47,431		$	38,628	$	253,561
Amortization		2,250		1,795		271		4,316		2,295		1,962			271		4,528
Income (loss) from operations		11,090		1,715		3,787		16,592		7,241		(1,656	)		3,209		8,794
Income from operations, excluding amortization	$	13,340	$	3,510	$	4,058	$	20,908	$	9,536	$	306		$	3,480	$	13,322

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

	Three Months Ended March 31,
	2017			2016
Operating income for reportable segments, excluding amortization	$	20,908		$	13,322
Adjustment for:
Amortization of intangible assets		4,316			4,528
Corporate expense		8,356			10,796
Income (loss) from operations		8,236			(2,002	)
Interest expense		3,653			3,409
Other expense (income), net		(228	)		(155	)
Income (loss) before income taxes	$	4,811		$	(5,256	)