Segment and Geographic Information

9 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

SEGMENT AND GEOGRAPHIC INFORMATION

SEGMENT AND GEOGRAPHIC INFORMATION

The accounting policies of the Company’s reportable segments are generally the same as those used to prepare the condensed consolidated financial statements. Intercompany sales primarily from the Fluid Power Businesses segment to the Service Center Based Distribution segment of $5,889 and $5,021, in the three months ended March 31, 2013 and 2012, respectively, and $14,618 and $12,976 in the nine months ended March 31, 2013 and 2012, respectively, have been eliminated in the Segment Financial Information tables below.

Three Months Ended	Service Center Based Distribution		Fluid Power Businesses		Total
March 31, 2013
Net sales	$	506,727	$	114,927	$	621,654
Operating income for reportable segments	35,357		9,607		44,964
Depreciation and amortization of property	2,735		463		3,198
Capital expenditures	2,894		99		2,993
March 31, 2012
Net sales	$	486,808	$	118,653	$	605,461
Operating income for reportable segments	35,910		10,491		46,401
Depreciation and amortization of property	2,355		435		2,790
Capital expenditures	3,628		645		4,273

Nine Months Ended	Service Center Based Distribution		Fluid Power Businesses		Total
March 31, 2013
Net sales	$	1,485,029	$	336,661	$	1,821,690
Operating income for reportable segments	97,445		28,758		126,203
Assets used in business	833,211		202,726		1,035,937
Depreciation and amortization of property	7,864		1,370		9,234
Capital expenditures	9,488		348		9,836
March 31, 2012
Net sales	$	1,408,980	$	346,452	$	1,755,432
Operating income for reportable segments	94,584		31,878		126,462
Assets used in business	725,735		228,601		954,336
Depreciation and amortization of property	7,007		1,381		8,388
Capital expenditures	16,974		1,321		18,295

The company is in the process of implementing a new ERP system (SAP). ERP related assets are included in assets used in business and capital expenditures within the Service Center Based Distribution segment. Expenses associated with the development and implementation of the ERP are included in Corporate and other expense (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 condensed consolidated income before income taxes is as follows:

	Three Months Ended						Nine Months Ended
	March 31,						March 31,
	2013			2012			2013			2012
Operating income for reportable segments	$	44,964		$	46,401		$	126,203		$	126,462
Adjustment for:
Intangible amortization—Service Center Based Distribution	1,637			1,009			4,164			2,727
Intangible amortization—Fluid Power Businesses	1,873			1,902			5,553			5,728
Corporate and other expense (income), net	(2,023		)	1,471			(11,878		)	(614		)
Total operating income	43,477			42,019			128,364			118,621
Interest expense, net	107			54			147			111
Other (income) expense, net	(1,027		)	(1,887		)	(1,913		)	823
Income before income taxes	$	44,397		$	43,852		$	130,130		$	117,687

Fluctuations in corporate and other expense (income), net are due to changes in the amounts and levels of expenses being allocated to the segments. The expenses being allocated include corporate charges for working capital, logistics support and other items.

Net sales are presented in geographic areas based on the location of the facility shipping the product and are as follows:

	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2013		2012		2013		2012
Geographic Areas:
United States	$	514,941	$	522,870	$	1,492,795	$	1,488,520
Canada	70,497		65,316		218,848		212,391
Other countries	36,216		17,275		110,047		54,521
Total	$	621,654	$	605,461	$	1,821,690	$	1,755,432

Other countries consisted of Mexico, Australia and New Zealand for the periods ended March 31, 2013, and Mexico for the periods ended March 31, 2012.