SEGMENT INFORMATION

In the first quarter of fiscal 2019, the Company performed a review of its management reporting structure and implemented changes to align with how the Company measures performance. As a result, the Company has revised its reportable segments to reflect how management currently reviews financial information and makes operating decisions. Certain supplier support benefits are now included within the Service Center Based Distribution segment operating income. Previously, these benefits were included in Corporate and other expense, net. All prior-period amounts have been adjusted to reflect the reportable segment change.

The Company's reportable segments are: Service Center Based Distribution and Fluid Power & Flow Control. These reportable segments contain the Company's various operating segments which have been aggregated based upon similar economic and operating characteristics. 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 and systems, industrial rubber products, linear motion products, tools, safety products, and other industrial and maintenance supplies. The Fluid Power & Flow Control segment distributes engineered fluid power components and specialty flow control solutions 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. Intercompany sales, primarily from the Fluid Power & Flow Control segment to the Service Center Based Distribution segment of $28,677, $25,556, and $22,719, in 2019, 2018, and 2017, respectively, have been eliminated in the following table.

Segment Financial Information



	Service Center Based Distribution		Fluid Power & Flow Control		Total
Year Ended June 30, 2019
Net sales	$	2,452,905	$	1,019,834	$	3,472,739
Operating income for reportable segments	254,954		112,117		367,071
Assets used in the business	1,265,093		1,066,604		2,331,697
Depreciation and amortization of property	15,982		4,254		20,236
Capital expenditures	16,475		2,495		18,970
Year Ended June 30, 2018
Net sales	$	2,346,418	$	726,856	$	3,073,274
Operating income for reportable segments	238,322		83,175		321,497
Assets used in the business	1,198,296		1,087,445		2,285,741
Depreciation and amortization of property	15,336		2,462		17,798
Capital expenditures	18,492		4,738		23,230
Year Ended June 30, 2017
Net sales	$	2,180,358	$	413,388	$	2,593,746
Operating income for reportable segments	203,267		46,312		249,579
Assets used in the business	1,187,054		200,541		1,387,595
Depreciation and amortization of property	14,375		931		15,306
Capital expenditures	14,566		2,479		17,045

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



Year Ended June 30,	2019			2018			2017
Operating income for reportable segments	$	367,071		$	321,497		$	249,579
Adjustments for:
Intangible amortization — Service Center Based Distribution	13,639			17,375			18,954
Intangible amortization — Fluid Power & Flow Control	28,244			14,690			5,417
Intangible Impairment — Service Center Based Distribution	31,594			—			—
Corporate and other expense, net	59,806			63,605			49,822
Total operating income	233,788			225,827			175,386
Interest expense, net	40,188			23,485			8,541
Other income, net	(881		)	(2,376		)	(121		)
Income before income taxes	$	194,481		$	204,718		$	166,966

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

Geographic Information

Long-lived assets are based on physical locations and are comprised of the net book value of property and intangible assets. Information by geographic area is as follows:



June 30,	2019		2018		2017
Long-Lived Assets:
United States	$	474,910	$	501,373	$	207,126
Canada	13,291		50,261		57,947
Other Countries	4,968		5,656		6,558
Total	$	493,169	$	557,290	$	271,631