Segment and Geographic Information

6 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

SEGMENT AND GEOGRAPHIC INFORMATION

SEGMENT AND GEOGRAPHIC INFORMATION

The accounting policies of the Company’s reportable segments are generally the same as those used to prepare the condensed consolidated financial statements. Intercompany sales primarily from the Fluid Power Businesses segment to the Service Center Based Distribution segment of $4,803 and $3,708, in the three months ended December 31, 2012 and 2011, respectively, and $8,732 and $7,955 in the six months ended December 31, 2012 and 2011, respectively, have been eliminated in the Segment Financial Information tables below.

Three Months Ended	Service Center Based Distribution		Fluid Power Businesses		Total
December 31, 2012
Net sales	$	480,476	$	109,041	$	589,517
Operating income for reportable segments	28,367		8,615		36,982
Depreciation and amortization of property	2,565		449		3,014
Capital expenditures	2,880		71		2,951
December 31, 2011
Net sales	$	458,315	$	112,082	$	570,397
Operating income for reportable segments	29,280		10,151		39,431
Depreciation and amortization of property	2,353		427		2,780
Capital expenditures	6,546		334		6,880

Six Months Ended	Service Center Based Distribution		Fluid Power Businesses		Total
December 31, 2012
Net sales	$	978,302	$	221,734	$	1,200,036
Operating income for reportable segments	62,088		19,151		81,239
Assets used in business	834,839		202,787		1,037,626
Depreciation and amortization of property	5,129		907		6,036
Capital expenditures	6,594		249		6,843
December 31, 2011
Net sales	$	922,173	$	227,798	$	1,149,971
Operating income for reportable segments	58,674		21,388		80,062
Assets used in business	681,019		216,994		898,013
Depreciation and amortization of property	4,651		947		5,598
Capital expenditures	13,346		676		14,022

The company is in the process of implementing a new ERP system (SAP). ERP related assets are included in assets used in business and capital expenditures within the Service Center Based Distribution segment. Expenses associated with the development and implementation of the ERP are included in Corporate and other expense (income) net, line in the reconciliation of operating income for reportable segments to the consolidated income before income taxes table below.

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

	Three Months Ended					Six Months Ended
	December 31,					December 31,
	2012			2011		2012			2011
Operating income for reportable segments	$	36,982		$	39,431	$	81,239		$	80,062
Adjustment for:
Intangible amortization—Service Center Based Distribution	1,304			841		2,527			1,718
Intangible amortization—Fluid Power Businesses	1,847			1,894		3,680			3,826
Corporate and other expense (income), net	(6,738		)	3,361		(9,855		)	(2,084		)
Total operating income	40,569			33,335		84,887			76,602
Interest expense, net	15			10		40			57
Other (income) expense, net	(427		)	778		(886		)	2,710
Income before income taxes	$	40,981		$	32,547	$	85,733		$	73,835

Corporate and other expense (income) net, for fiscal 2011 included approximately $4,400 of non-recurring SD&A expense, mostly pertaining to the curtailment loss recognized upon freezing our Supplemental Executive Retirement Benefits Plan as well as certain one-time CEO transition related expenses. Additional fluctuations in corporate and other expense (income), net are due to changes in the amounts and levels of expenses being allocated to the segments. The expenses being allocated include corporate charges for working capital, logistics support and other items.

Net sales are presented in geographic areas based on the location of the facility shipping the product are as follows:

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2012		2011		2012		2011
Geographic Areas:
United States	$	478,318	$	478,222	$	977,854	$	965,650
Canada	74,140		73,502		148,351		147,075
Other countries	37,059		18,673		73,831		37,246
Total	$	589,517	$	570,397	$	1,200,036	$	1,149,971

Other countries consisted of Mexico, Australia and New Zealand for the periods ended December 31, 2012, and Mexico for the periods ended December 31, 2011.