SEGMENT REPORTING

9 Months Ended

Sep. 30, 2016

SEGMENT REPORTING [Abstract]

SEGMENT REPORTING

NOTE 14 - 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, remanufactures pumps and manufactures branded private label pumps. The Supply Chain Services segment provides a wide range of MRO products and 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 related to the Company’s segments (in thousands):

	For the Three Months Ended September 30,
	2016									2015
	SC		IPS			SCS		Total		SC		IPS		SCS		Total
Sales	$	152,018	$	39,830		$	38,177	$	230,025	$	199,306	$	61,458	$	42,316	$	303,080
Amortization		2,292		1,956			271		4,519		2,627		2,097		516		5,240
Income (loss) from operations		11,053		(326	)		3,658		14,385		15,330		4,042		3,305		22,677
Income from operations, excluding amortization	$	13,345	$	1,630		$	3,929	$	18,904	$	17,957	$	6,139	$	3,821	$	27,917

	For the Nine Months Ended September 30,
	2016								2015
	SC		IPS		SCS		Total		SC		IPS		SCS		Total
Sales	$	481,352	$	141,614	$	116,835	$	739,801	$	639,212	$	202,627	$	126,523	$	968,362
Amortization		6,871		5,874		812		13,557		7,988		6,312		1,607		15,907
Income from operations		28,608		1,549		10,799		40,956		53,955		14,365		9,228		77,548
Income from operations, excluding amortization	$	35,479	$	7,423	$	11,611	$	54,513	$	61,943	$	20,677	$	10,835	$	93,445

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,
	2016			2015			2016			2015
Operating income for reportable segments, excluding amortization	$	18,904		$	27,917		$	54,513		$	93,455
Adjustment for:
B27 settlement		-			7,348			-			7,348
Impairment		-			58,888			-			58,888
Amortization of intangible assets		4,519			5,240			13,557			15,907
Corporate expense		9,452			12,053			29,176			34,830
Income (loss) from operations		4,933			(55,612	)		11,780			(23,518	)
Interest expense		4,338			2,630			11,698			7,905
Other expense (income), net		(251	)		327			(397	)		(67	)
Income (loss) before income taxes	$	846		$	(58,569	)	$	479		$	(31,356	)