Segment and Geographic Information

12 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

SEGMENT AND GEOGRAPHIC INFORMATION

SEGMENT AND GEOGRAPHIC INFORMATION

The Company's reportable segments are: Service Center Based Distribution and Fluid Power Businesses. The Service Center Based Distribution segment provides customers with solutions to their maintenance, repair and original equipment manufacturing needs through the distribution of industrial products including bearings, power transmission components, fluid power components, industrial rubber products, linear motion products, safety products, general maintenance and a variety of mill supply products. The Fluid Power Businesses segment distributes fluid power components and operates shops that assemble fluid power systems and components, performs equipment repair, and offers technical advice to customers.

The accounting policies of the Company’s reportable segments are generally the same as those described in Note 1. Sales primarily from the Fluid Power Businesses segment to the Service Center Based Distribution segment of $18,097, $17,665 and $14,006, in fiscal 2012, 2011 and 2010, respectively, have been eliminated in the table below.

Segment Financial Information

	Service Center Based Distribution		Fluid Power Businesses		Total
Year Ended June 30, 2012
Net sales	$	1,904,564	$	470,881	$	2,375,445
Operating income for reportable segments	135,240		43,236		178,476
Assets used in the business	731,915		230,268		962,183
Depreciation and amortization of property	9,403		1,833		11,236
Capital expenditures	24,339		1,682		26,021
Year Ended June 30, 2011
Net sales	$	1,770,798	$	442,051	$	2,212,849
Operating income for reportable segments	115,798		41,793		157,591
Assets used in the business	700,486		214,445		914,931
Depreciation and amortization of property	9,152		2,082		11,234
Capital expenditures	19,392		1,039		20,431
Year Ended June 30, 2010
Net sales	$	1,536,543	$	356,665	$	1,893,208
Operating income for reportable segments	77,029		26,794		103,823
Assets used in the business	690,970		200,550		891,520
Depreciation and amortization of property	9,336		2,129		11,465
Capital expenditures	6,389		827		7,216

ERP related assets are included in assets used in the business and capital expenditures within the Service Center Based Distribution segment. Within the geographic disclosures, these assets are included in the United States. Expenses associated with the ERP are included in the Corporate and other income, net, line in the reconciliation of operating income for reportable segments to the consolidated income before income taxes table below.

A reconciliation of operating income for reportable segments to the consolidated income before income taxes is as follows:

Year Ended June 30,	2012			2011			2010
Operating income for reportable segments	$	178,476		$	157,591		$	103,823
Adjustments for:
Intangible amortization — Service Center Based Distribution	3,834			3,384			1,890
Intangible amortization — Fluid Power Businesses	7,631			7,998			8,261
Corporate and other income, net	(1,384		)	(4,554		)	(16,378		)
Total operating income	168,395			150,763			110,050
Interest (income) expense, net	(9		)	1,668			5,458
Other expense (income), net	1,578			(3,793		)	(425		)
Income before income taxes	$	166,826		$	152,888		$	105,017

Corporate and other income, net, includes the SERP curtailment loss of $3,117 recognized in the second quarter of fiscal 2012. Additional fluctuations in corporate and other income, net, are due to changes in the levels and amounts of expenses being allocated to the segments. The expenses being allocated include corporate charges for working capital, logistics support and other items.

Product Category

Net sales by product category are as follows:

Year Ended June 30,	2012		2011		2010
Industrial	$	1,680,926	$	1,559,859	$	1,357,206
Fluid power	694,519		652,990		536,002
Net sales	$	2,375,445	$	2,212,849	$	1,893,208

The fluid power product category includes sales of hydraulic, pneumatic, lubrication and filtration components and systems, and repair services through the Company’s Fluid Power Businesses segment as well as the Service Center Based Distribution segment.

Geographic Information

Net sales are presented in geographic areas based on the location of the facility shipping the product. Long-lived assets are based on physical locations and are comprised of the net book value of property, goodwill and intangible assets. Information by geographic area is as follows:

Year Ended June 30,	2012		2011		2010
Net Sales:
United States	$	2,009,317	$	1,891,700	$	1,644,237
Canada	292,913		260,015		199,772
Mexico	73,215		61,134		49,199
Total	$	2,375,445	$	2,212,849	$	1,893,208

June 30,	2012		2011
Long-Lived Assets:
United States	$	198,076	$	191,947
Canada	42,624		29,893
Mexico	10,323		13,706
Total	$	251,023	$	235,546