SEGMENT AND GEOGRAPHICAL REPORTING

12 Months Ended

Dec. 31, 2012

SEGMENT AND GEOGRAPHICAL REPORTING [Abstract]

SEGMENT AND GEOGRAPHICAL REPORTING

NOTE 16 – SEGMENT AND GEOGRAPHICAL REPORTING

The Company's reportable business segments are: Service Centers, Innovative Pumping Solutions and Supply Chain Services. The Service Centers segment is engaged in providing maintenance, MRO products, equipment and integrated services, including logistics capabilities, to industrial customers. The Service Centers segment provides a wide range of MRO products in the rotating equipment, bearing, power transmission, hose, fluid power, metal working, fastener, industrial supply, safety products and safety services categories. The Innovative Pumping Solutions segment fabricates and assembles custom-made pump packages. The Supply Chain Services segment manages all or part of a customer's supply chain, including warehouse and inventory management.

The high degree of integration of the Company's operations necessitates the use of a substantial number of allocations and apportionments in the determination of business segment information. Sales are shown net of intersegment eliminations.

Business Segmented Financial Information

The following table sets out financial information relating the Company's segments (in thousands):

Years Ended December 31,	Service Centers	Innovative Pumping Solutions	Supply Chain Services	Total
2012
Sales	$779,038	$161,834	$156,238	$1,097,110
Operating income for reportable segments	88,924	32,099	12,495	133,518
Identifiable assets at year end	440,271	56,982	50,515	547,768
Capital expenditures	4,829	261	-	5,090
Depreciation	5,734	306	175	6,215
Amortization	8,795	663	1,428	10,886
Interest expense	3,701	1,243	616	5,560
2011
Sales	$560,233	$102,305	$144,467	$807,005
Operating income for reportable segments	64,491	16,920	8,455	89,866
Identifiable assets at year end	294,410	43,636	56,058	394,104
Capital expenditures	1,258	310	73	1,641
Depreciation	2,090	326	276	2,692
Amortization	4,725	675	1,172	6,572
Interest expense	2,073	986	459	3,518
2010
Sales	$452,719	$ 77,024	$126,459	$656,202
Operating income for reportable segments	50,549	10,335	7,120	68,004
Identifiable assets at year end	240,068	25,405	45,813	311,286
Capital expenditures	1,075	17	92	1,184
Depreciation	2,426	368	389	3,183
Amortization	4,055	604	1,165	5,824
Interest expense	4,115	700	393	5,208

	Years Ended December 31,
	2012	2011	2010
Operating income for reportable segments	$ 133,518	$ 89,866	$ 68,004
Adjustments for:
Amortization of intangibles	10,886	6,572	5,824
Corporate and other expense, net	32,110	27,809	25,089
Total operating income	90,522	55,485	37,091
Interest expense	5,560	3,518	5,208
Other expenses (income), net	(47)	(28)	(249)
Income before income taxes	$ 85,009	$ 51,995	$ 32,132

The Company had capital expenditures at Corporate of $9.0 million, $2.5 million, and zero for the years ended December 31, 2012, 2011, and 2010, respectively. The Company had identifiable assets at Corporate of $22 million, $11.2 million, and $9.3 million as of December 31, 2012, 2011, and 2010, respectively. Corporate depreciation was $1.0 million, $0.8 million, and $0.6 million for the years ended December 31, 2012, 2011, and 2010, respectively.

Geographical Information

Revenues are presented in geographic area based on location of the facility shipping products or providing services. Long-lived assets are based on physical locations and are comprised of the net book value of property.

The Company's revenues and property and equipment by geographical location are as follow (in thousands):

	Years Ended December 31,
	2012	2011	2010
Revenues
United States	$1,039,712	$ 807,005	$ 656,202
Canada	57,398	-	-
Total	$1,097,110	$ 807,005	$ 656,202

	As of December 31,
	2012	2011
Property and Equipment, net
United States	$ 31,334	$ 16,911
Canada	27,379	-
Total	$58,713	$ 16,911