SEGMENT REPORTING

9 Months Ended

Sep. 30, 2014

SEGMENT REPORTING [Abstract]

SEGMENT REPORTING

NOTE 12 - SEGMENT 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.

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

	Three Months ended September 30,				Nine Months ended September 30,
	Service Centers	IPS	SCS	Total	Service Centers	IPS	SCS	Total
2014
Sales	$ 255,041	$   88,614	$   43,398	$ 387,053	$   735,104	$ 259,070	$  122,986	$ 1,117,160
Operating income for reportable segments	$   29,444	$   14,979	$     3,721	$   48,144	$     79,356	$   40,328	$    10,424	$    130,108
2013
Sales	$ 232,529	$  61,094	$   36,096	$ 329,719	$  660,552	$ 155,572	$  111,634	$   927,758
Operating income for reportable segments	$   27,557	$    9,059	$     3,202	$   39,818	$    75,976	$   24,267	$      9,550	$   109,793

The following table presents reconciliations of operating income for reportable segments to the consolidated income before taxes (in thousands):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2014	2013	2014	2013
Operating income for reportable segments	$    48,144	$      39,818	$   130,108	$     109,793
Adjustment for:
Amortization of intangibles	4,651	3,434	13,874	9,221
Corporate and other expense, net	11,689	9,486	33,870	27,705
Total operating income	31,804	26,898	82,364	72,867
Interest expense, net	3,295	1,614	9,868	4,930
Other expense (income), net	10	(38)	1	(16)
Income before income taxes	$   28,499	$      25,322	$    72,495	$    67,953