Segment and Geographic Information

6 Months Ended

Dec. 31, 2016

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 $5,264 and $5,666, in the three months ended December 31, 2016 and 2015, respectively, and $10,528 and $11,234 in the six months ended December 31, 2016 and 2015, respectively, have been eliminated in the Segment Financial Information tables below.

Three Months Ended	Service Center Based Distribution		Fluid Power Businesses		Total
December 31, 2016
Net sales	$	501,950	$	106,173	$	608,123
Operating income for reportable segments	21,209		10,578		31,787
Depreciation and amortization of property	3,522		315		3,837
Capital expenditures	3,616		95		3,711
December 31, 2015
Net sales	$	507,906	$	102,440	$	610,346
Operating income for reportable segments	28,401		8,745		37,146
Depreciation and amortization of property	3,695		385		4,080
Capital expenditures	2,424		201		2,625

Six Months Ended	Service Center Based Distribution		Fluid Power Businesses		Total
December 31, 2016
Net sales	$	1,017,583	$	215,388	$	1,232,971
Operating income for reportable segments	46,855		22,406		69,261
Assets used in business	1,084,878		209,638		1,294,516
Depreciation and amortization of property	6,842		645		7,487
Capital expenditures	6,242		468		6,710
December 31, 2015
Net sales	$	1,041,513	$	210,737	$	1,252,250
Operating income for reportable segments	57,302		19,007		76,309
Assets used in business	1,143,601		206,794		1,350,395
Depreciation and amortization of property	7,312		698		8,010
Capital expenditures	5,311		426		5,737

Enterprise resource planning system (ERP) related assets are included in assets used in business and capital expenditures within the Service Center Based Distribution segment.

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

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2016			2015			2016			2015
Operating income for reportable segments	$	31,787		$	37,146		$	69,261		$	76,309
Adjustment for:
Intangible amortization—Service Center Based Distribution	4,670			4,714			9,432			9,286
Intangible amortization—Fluid Power Businesses	1,424			1,528			2,899			3,039
Corporate and other (income) expense, net	(11,963		)	(7,458		)	(23,944		)	(15,404		)
Total operating income	37,656			38,362			80,874			79,388
Interest expense, net	2,100			2,158			4,246			4,345
Other (income) expense, net	(211		)	55			(609		)	1,059
Income before income taxes	$	35,767		$	36,149		$	77,237		$	73,984

The change in corporate and other (income) expense, net is due to changes in the amounts and levels of certain supplier support benefits and 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				Six Months Ended
	December 31,				December 31,
	2016		2015		2016		2015
Geographic Areas:
United States	$	511,095	$	509,399	$	1,036,561	$	1,047,768
Canada	62,204		67,647		124,785		133,880
Other countries	34,824		33,300		71,625		70,602
Total	$	608,123	$	610,346	$	1,232,971	$	1,252,250

Other countries consist of Mexico, Australia and New Zealand.