Segment Information

12 Months Ended

Jun. 30, 2020

SEGMENT INFORMATION

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 operates through local service centers and distribution centers with a focus on providing products and services addressing the maintenance and repair of motion control infrastructure and production equipment. Products primarily include industrial bearings, motors, belting, drives, couplings, pumps, linear motion products, hydraulic and pneumatic components, filtration supplies, and hoses, as well as other related supplies for general operational needs of customers’ machinery and equipment. The Fluid Power & Flow Control segment includes our operations that specialize in distributing, engineering, designing, integrating, and repairing hydraulic and pneumatic fluid power technologies, and engineered flow control products and services.

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 $29,582, $28,677, and $25,556, in 2020, 2019, and 2018, respectively, have been eliminated in the following table.

Segment Financial Information



	Service Center Based Distribution		Fluid Power & Flow Control		Total
Year Ended June 30, 2020
Net sales	$	2,241,949	$	1,003,703	$	3,245,652
Operating income for reportable segments	211,667		109,847		321,514
Assets used in the business	1,314,011		969,540		2,283,551
Depreciation and amortization of property	17,133		4,063		21,196
Capital expenditures	17,063		3,052		20,115
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

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



Year Ended June 30,	2020			2019			2018
Operating income for reportable segments	$	321,514		$	367,071		$	321,497
Adjustments for:
Intangible amortization — Service Center Based Distribution	12,385			13,639			17,375
Intangible amortization — Fluid Power & Flow Control	29,168			28,244			14,690
Intangible Impairment — Service Center Based Distribution	—			31,594			—
Goodwill Impairment — Fluid Power & Flow Control	131,000			—			—
Corporate and other expense, net	59,972			59,806			63,605
Total operating income	88,989			233,788			225,827
Interest expense, net	36,535			40,188			23,485
Other income, net	(2,782		)	(881		)	(2,376		)
Income before income taxes	$	55,236		$	194,481		$	204,718

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, intangible assets and right of use assets. Information by geographic area is as follows:



June 30,	2020		2019		2018
Long-Lived Assets:
United States	$	523,739	$	474,910	$	501,373
Canada	23,865		13,291		50,261
Other Countries	8,148		4,968		5,656
Total	$	555,752	$	493,169	$	557,290