Segment and Geographic Information

12 Months Ended

Jun. 30, 2011

Segment and Geographic Information [Abstract]

SEGMENT AND GEOGRAPHIC INFORMATION

NOTE 13: SEGMENT AND GEOGRAPHIC INFORMATION

The Company has identified two reportable segments: Service Center Based Distribution and Fluid Power Businesses. 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, industrial rubber products, linear motion products, safety products, general maintenance and a variety of mill supply products. The Fluid Power Businesses segment distributes fluid power components 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. Sales primarily from the Fluid Power Businesses segment to the Service Center Based Distribution segment of $17,665, $14,006 and $5,247, in fiscal 2011, 2010 and 2009, respectively, have been eliminated in the table below.

Segment Financial Information

	Service Center		Fluid Power
	Based Distribution		Businesses		Total
Year Ended June 30, 2011
Net sales	$	1,770,798	$	442,051	$	2,212,849
Operating income for reportable segments		115,798		41,793		157,591
Assets used in the business		700,486		214,445		914,931
Depreciation and amortization of property		9,152		2,082		11,234
Capital expenditures		19,392		1,039		20,431
Year Ended June 30, 2010
Net sales	$	1,536,543	$	356,665	$	1,893,208
Operating income for reportable segments		77,029		26,794		103,823
Assets used in the business		690,970		200,550		891,520
Depreciation and amortization of property		9,336		2,129		11,465
Capital expenditures		6,389		827		7,216
Year Ended June 30, 2009
Net sales	$	1,596,998	$	326,150	$	1,923,148
Operating income for reportable segments		75,411		18,942		94,353
Assets used in the business		611,255		198,073		809,328
Depreciation and amortization of property		10,876		1,860		12,736
Capital expenditures		5,537		1,451		6,988

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

Year Ended June 30,	2011			2010			2009
Operating income for reportable segments	$	157,591		$	103,823		$	94,353
Adjustments for:
Goodwill impairment								36,605
Intangible amortization — Service Center Based Distribution		3,384			1,890			2,265
Intangible amortization — Fluid Power Businesses		7,998			8,261			7,390
Corporate and other income, net		(4,554	)		(16,378	)		(24,400	)
Total operating income		150,763			110,050			72,493
Interest expense, net		1,668			5,458			4,424
Other (income) expense, net		(3,793	)		(425	)		2,255
Income before income taxes	$	152,888		$	105,017		$	65,814

The change in corporate and other income, net, is due to various changes in the levels and amounts of expenses being allocated to the segments. The expenses being allocated include miscellaneous corporate charges for working capital, logistics support and other items.

Product Category

     Net sales by product category are as follows:

Year Ended June 30,	2011		2010		2009
Industrial	$	1,559,859	$	1,357,206	$	1,422,518
Fluid power		652,990		536,002		500,630
Net sales	$	2,212,849	$	1,893,208	$	1,923,148

The fluid power product category includes sales of hydraulic, pneumatic, lubrication and filtration components and systems, and repair services through the Company’s Service Center Based Distribution segment as well as the Fluid Power Businesses segment.

Geographic Information

Net sales are presented in geographic areas based on the location of the facility shipping the product. Long-lived assets are based on physical locations and are comprised of the net book value of property, goodwill and intangible assets. Information by geographic area is as follows:

Year Ended June 30,	2011		2010		2009
Net Sales:
United States	$	1,891,700	$	1,644,237	$	1,674,769
Canada		260,015		199,772		197,795
Mexico		61,134		49,199		50,584
Total	$	2,212,849	$	1,893,208	$	1,923,148

June 30,	2011		2010
Long-Lived Assets:
United States	$	191,947	$	177,713
Canada		29,893		16,356
Mexico		13,706		13,723
Total	$	235,546	$	207,792