Segment Information

3 Months Ended

Sep. 30, 2019

The accounting policies of the Company’s reportable segments are generally the same as those used to prepare the condensed consolidated financial statements. LIFO expense of $358 and $1,671 is recorded in cost of sales in the condensed statements of income for the three months ended September 30, 2019 and 2018, respectively, and is included in operating income for the Service Center Based Distribution segment. The Company allocates LIFO expense between the segments in the fourth quarter of its fiscal year. Intercompany sales, primarily from the Fluid Power & Flow Control segment to the Service Center Based Distribution segment, of $7,313 and $6,916, in the three months ended September 30, 2019 and 2018, respectively, have been eliminated in the Segment Financial Information tables below.



Three Months Ended	Service Center Based Distribution		Fluid Power & Flow Control		Total
September 30, 2019
Net sales	$	603,160	$	253,244	$	856,404
Operating income for reportable segments	60,360		26,857		87,217
Assets used in business	1,289,592		1,140,140		2,429,732
Depreciation and amortization of property	4,178		1,045		5,223
Capital expenditures	4,195		751		4,946

September 30, 2018
Net sales	$	604,049	$	260,466	$	864,515
Operating income for reportable segments	62,809		30,880		93,689
Assets used in business	1,227,815		1,077,873		2,305,688
Depreciation and amortization of property	3,911		1,070		4,981
Capital expenditures	2,444		729		3,173

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



	Three Months Ended
	September 30,
	2019		2018
Operating income for reportable segments	$	87,217	$	93,689
Adjustment for:
Intangible amortization—Service Center Based Distribution	3,054		4,018
Intangible amortization—Fluid Power & Flow Control	7,320		6,903
Corporate and other expense, net	15,677		16,429
Total operating income	61,166		66,339
Interest expense, net	10,059		10,476
Other income, net	—		(239		)
Income before income taxes	$	51,107	$	56,102

The change in corporate and other expense, net is 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.