Segment Information

6 Months Ended

Dec. 31, 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 $1,929 and $2,676 in the three months ended December 31, 2019 and 2018, respectively, and $2,287 and $4,347 in the six months ended December 31, 2019 and 2018, respectively, is recorded in cost of sales in the condensed statements of income, 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 $7,436 and $6,769, in the three months ended December 31, 2019 and 2018, respectively, and $14,749 and $13,685 in the six months ended December 31, 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
December 31, 2019
Net sales	$	575,788	$	257,587	$	833,375
Operating income for reportable segments	53,905		29,449		83,354
Depreciation and amortization of property	4,280		1,114		5,394
Capital expenditures	6,239		780		7,019

December 31, 2018
Net sales	$	589,298	$	250,740	$	840,038
Operating income for reportable segments	58,317		29,243		87,560
Depreciation and amortization of property	3,911		1,127		5,038
Capital expenditures	3,256		667		3,923



Six Months Ended	Service Center Based Distribution		Fluid Power & Flow Control		Total
December 31, 2019
Net sales	$	1,178,948	$	510,831	$	1,689,779
Operating income for reportable segments	114,265		56,306		170,571
Assets used in business	1,291,399		1,127,598		2,418,997
Depreciation and amortization of property	8,458		2,159		10,617
Capital expenditures	10,434		1,531		11,965

December 31, 2018
Net sales	$	1,193,347	$	511,206	$	1,704,553
Operating income for reportable segments	121,126		60,123		181,249
Assets used in business	1,223,926		1,066,062		2,289,988
Depreciation and amortization of property	7,822		2,197		10,019
Capital expenditures	5,700		1,396		7,096

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,
	2019			2018		2019			2018
Operating income for reportable segments	$	83,354		$	87,560	$	170,571		$	181,249
Adjustment for:
Intangible amortization—Service Center Based Distribution	2,832			3,973		5,886			7,991
Intangible amortization—Fluid Power & Flow Control	7,363			7,018		14,683			13,921
Corporate and other expense, net	14,414			15,604		30,091			32,033
Total operating income	58,745			60,965		119,911			127,304
Interest expense, net	9,583			9,578		19,642			20,054
Other (income) expense, net	(215		)	946		(215		)	707
Income before income taxes	$	49,377		$	50,441	$	100,484		$	106,543

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.