[X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Ohio | 34-0117420 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | |
One Applied Plaza, Cleveland, Ohio | 44115 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | [X] | Accelerated filer | [ ] | |||
Non-accelerated filer | [ ] (Do not check if a smaller reporting company) | Smaller reporting company | [ ] |
Page No. | ||||
Part I: | ||||
Item 1: | ||||
Item 2: | ||||
Item 3: | ||||
Item 4: | ||||
Part II: | ||||
Item 1: | ||||
Item 2: | ||||
Item 5: | ||||
Item 6: | ||||
PART I: | FINANCIAL INFORMATION |
ITEM I: | FINANCIAL STATEMENTS |
Three Months Ended | Six Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Net Sales | $ | 610,346 | $ | 691,702 | $ | 1,252,250 | $ | 1,394,027 | ||||||||
Cost of Sales | 437,179 | 495,989 | 898,071 | 1,003,382 | ||||||||||||
Gross Profit | 173,167 | 195,713 | 354,179 | 390,645 | ||||||||||||
Selling, Distribution and Administrative, including depreciation | 134,805 | 148,906 | 274,791 | 297,673 | ||||||||||||
Operating Income | 38,362 | 46,807 | 79,388 | 92,972 | ||||||||||||
Interest Expense, net | 2,158 | 1,955 | 4,345 | 3,617 | ||||||||||||
Other Expense, net | 55 | 380 | 1,059 | 624 | ||||||||||||
Income Before Income Taxes | 36,149 | 44,472 | 73,984 | 88,731 | ||||||||||||
Income Tax Expense | 12,202 | 14,765 | 25,746 | 29,902 | ||||||||||||
Net Income | $ | 23,947 | $ | 29,707 | $ | 48,238 | $ | 58,829 | ||||||||
Net Income Per Share - Basic | $ | 0.61 | $ | 0.72 | $ | 1.22 | $ | 1.42 | ||||||||
Net Income Per Share - Diluted | $ | 0.61 | $ | 0.72 | $ | 1.22 | $ | 1.41 | ||||||||
Cash dividends per common share | $ | 0.27 | $ | 0.25 | $ | 0.54 | $ | 0.50 | ||||||||
Weighted average common shares outstanding for basic computation | 39,262 | 41,228 | 39,437 | 41,348 | ||||||||||||
Dilutive effect of potential common shares | 223 | 305 | 224 | 330 | ||||||||||||
Weighted average common shares outstanding for diluted computation | 39,485 | 41,533 | 39,661 | 41,678 |
Three Months Ended | Six Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Net income per the condensed statements of consolidated income | $ | 23,947 | $ | 29,707 | $ | 48,238 | $ | 58,829 | ||||||||
Other comprehensive loss, before tax: | ||||||||||||||||
Foreign currency translation adjustments | (6,743 | ) | (17,558 | ) | (34,259 | ) | (36,663 | ) | ||||||||
Postemployment benefits: | ||||||||||||||||
Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs | 127 | 71 | 257 | 143 | ||||||||||||
Unrealized (loss) gain on investment securities available for sale | (13 | ) | 94 | (63 | ) | 53 | ||||||||||
Total of other comprehensive loss, before tax | (6,629 | ) | (17,393 | ) | (34,065 | ) | (36,467 | ) | ||||||||
Income tax expense related to items of other comprehensive income | 44 | 60 | 78 | 74 | ||||||||||||
Other comprehensive loss, net of tax | (6,673 | ) | (17,453 | ) | (34,143 | ) | (36,541 | ) | ||||||||
Comprehensive income, net of tax | $ | 17,274 | $ | 12,254 | $ | 14,095 | $ | 22,288 |
December 31, 2015 | June 30, 2015 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 55,634 | $ | 69,470 | ||||
Accounts receivable, less allowances of $11,894 and $10,621 | 329,287 | 376,305 | ||||||
Inventories | 359,726 | 362,419 | ||||||
Other current assets | 36,177 | 37,816 | ||||||
Total current assets | 780,824 | 846,010 | ||||||
Property, less accumulated depreciation of $168,344 and $164,343 | 106,470 | 104,447 | ||||||
Identifiable intangibles, net | 185,009 | 198,828 | ||||||
Goodwill | 249,267 | 254,406 | ||||||
Deferred tax assets | 11,938 | 10,980 | ||||||
Other assets | 16,887 | 17,885 | ||||||
TOTAL ASSETS | $ | 1,350,395 | $ | 1,432,556 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 114,824 | $ | 179,825 | ||||
Current portion of long term debt | 3,350 | 3,349 | ||||||
Compensation and related benefits | 40,310 | 63,780 | ||||||
Other current liabilities | 62,890 | 63,118 | ||||||
Total current liabilities | 221,374 | 310,072 | ||||||
Long-term debt | 363,640 | 317,646 | ||||||
Postemployment benefits | 19,619 | 19,627 | ||||||
Other liabilities | 38,195 | 43,883 | ||||||
TOTAL LIABILITIES | 642,828 | 691,228 | ||||||
Shareholders’ Equity | ||||||||
Preferred stock—no par value; 2,500 shares authorized; none issued or outstanding | — | — | ||||||
Common stock—no par value; 80,000 shares authorized; 54,213 shares issued | 10,000 | 10,000 | ||||||
Additional paid-in capital | 160,668 | 160,072 | ||||||
Retained earnings | 996,392 | 969,548 | ||||||
Treasury shares—at cost (14,963 and 14,308 shares) | (365,179 | ) | (338,121 | ) | ||||
Accumulated other comprehensive income (loss) | (94,314 | ) | (60,171 | ) | ||||
TOTAL SHAREHOLDERS’ EQUITY | 707,567 | 741,328 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 1,350,395 | $ | 1,432,556 |
Six Months Ended | ||||||||
December 31, | ||||||||
2015 | 2014 | |||||||
Cash Flows from Operating Activities | ||||||||
Net income | $ | 48,238 | $ | 58,829 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization of property | 8,010 | 8,331 | ||||||
Amortization of intangibles | 12,325 | 13,059 | ||||||
Unrealized foreign exchange transactions loss (gain) | 65 | (790 | ) | |||||
Amortization of stock options and appreciation rights | 939 | 825 | ||||||
Loss (gain) on sale of property | 51 | (4 | ) | |||||
Other share-based compensation expense | 954 | 679 | ||||||
Changes in operating assets and liabilities, net of acquisitions | (39,090 | ) | (80,863 | ) | ||||
Other, net | 1,451 | 1,107 | ||||||
Net Cash provided by Operating Activities | 32,943 | 1,173 | ||||||
Cash Flows from Investing Activities | ||||||||
Property purchases | (5,737 | ) | (7,806 | ) | ||||
Proceeds from property sales | 194 | 187 | ||||||
Acquisition of businesses, net of cash acquired | (23,250 | ) | (165,646 | ) | ||||
Net Cash used in Investing Activities | (28,793 | ) | (173,265 | ) | ||||
Cash Flows from Financing Activities | ||||||||
Borrowings under revolving credit facility | 18,000 | 10,000 | ||||||
Long-term debt borrowings | 125,000 | 170,241 | ||||||
Long-term debt repayments | (97,006 | ) | (1,597 | ) | ||||
Purchases of treasury shares | (27,767 | ) | (21,849 | ) | ||||
Dividends paid | (21,369 | ) | (20,742 | ) | ||||
Excess tax benefits from share-based compensation | 49 | 906 | ||||||
Acquisition holdback payments | (10,614 | ) | (287 | ) | ||||
Exercise of stock options and appreciation rights | 264 | 120 | ||||||
Net Cash provided by (used in) Financing Activities | (13,443 | ) | 136,792 | |||||
Effect of Exchange Rate Changes on Cash | (4,543 | ) | (2,705 | ) | ||||
Decrease in Cash and Cash Equivalents | (13,836 | ) | (38,005 | ) | ||||
Cash and Cash Equivalents at Beginning of Period | 69,470 | 71,189 | ||||||
Cash and Cash Equivalents at End of Period | $ | 55,634 | $ | 33,184 |
As of June 30, 2015 | ||||||
Balance Sheet Line Item | As Previously Reported | Restated | Change | |||
Other current assets | 51,111 | 37,816 | (13,295 | ) | ||
Deferred tax assets | 97 | 10,980 | 10,883 | |||
Other liabilities | 46,295 | 43,883 | (2,412 | ) |
2. | BUSINESS COMBINATIONS |
Knox Acquisition | |||
Accounts receivable | $ | 19,100 | |
Inventories | 18,800 | ||
Property | 3,900 | ||
Identifiable intangible assets | 58,500 | ||
Goodwill | 63,200 | ||
Total assets acquired | 163,500 | ||
Accounts payable and accrued liabilities | 7,200 | ||
Deferred income taxes | 24,300 | ||
Net assets acquired | $ | 132,000 | |
Purchase price | 132,800 | ||
Reconciliation of fair value transferred: | |||
Working Capital Adjustments | (800 | ) | |
Total Consideration | $ | 132,000 |
Service Centers | Fluid Power | Total | |||||||||
Balance at July 1, 2015 | $ | 253,477 | $ | 929 | $ | 254,406 | |||||
Goodwill acquired during the period | 3,285 | 1,813 | 5,098 | ||||||||
Other, primarily currency translation | (10,237 | ) | — | (10,237 | ) | ||||||
Balance at December 31, 2015 | $ | 246,525 | $ | 2,742 | $ | 249,267 |
December 31, 2015 | Amount | Accumulated Amortization | Net Book Value | |||||||||
Finite-Lived Identifiable Intangibles: | ||||||||||||
Customer relationships | $ | 219,623 | $ | 73,262 | $ | 146,361 | ||||||
Trade names | 42,152 | 14,580 | 27,572 | |||||||||
Vendor relationships | 14,112 | 7,545 | 6,567 | |||||||||
Non-competition agreements | 6,585 | 2,076 | 4,509 | |||||||||
Total Identifiable Intangibles | $ | 282,472 | $ | 97,463 | $ | 185,009 |
June 30, 2015 | Amount | Accumulated Amortization | Net Book Value | |||||||||
Finite-Lived Identifiable Intangibles: | ||||||||||||
Customer relationships | $ | 225,332 | $ | 65,789 | $ | 159,543 | ||||||
Trade names | 42,689 | 13,187 | 29,502 | |||||||||
Vendor relationships | 14,465 | 7,258 | 7,207 | |||||||||
Non-competition agreements | 4,578 | 2,002 | 2,576 | |||||||||
Total Identifiable Intangibles | $ | 287,064 | $ | 88,236 | $ | 198,828 |
Acquisition Cost Allocation | Weighted-Average Life | |||||
Customer relationships | $ | 2,930 | 15 | |||
Trade names | 1,190 | 15 | ||||
Non-competition agreements | 490 | 5 | ||||
Total Intangibles Acquired | $ | 4,610 |
Three Months Ended December 31, 2015 | ||||||||||||||||
Foreign currency translation adjustment | Unrealized loss on securities available for sale | Postemployment benefits | Total Accumulated other comprehensive income (loss) | |||||||||||||
Balance at September 30, 2015 | $ | (84,760 | ) | $ | (37 | ) | $ | (2,844 | ) | $ | (87,641 | ) | ||||
Other comprehensive loss | (6,743 | ) | (8 | ) | — | (6,751 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | — | 78 | 78 | ||||||||||||
Net current-period other comprehensive (loss) income, net of taxes | (6,743 | ) | (8 | ) | 78 | (6,673 | ) | |||||||||
Balance at December 31, 2015 | $ | (91,503 | ) | $ | (45 | ) | $ | (2,766 | ) | $ | (94,314 | ) |
Six Months Ended December 31, 2015 | ||||||||||||||||
Foreign currency translation adjustment | Unrealized loss on securities available for sale | Postemployment benefits | Total Accumulated other comprehensive income (loss) | |||||||||||||
Balance at July 1, 2015 | $ | (57,244 | ) | $ | (4 | ) | $ | (2,923 | ) | $ | (60,171 | ) | ||||
Other comprehensive loss | (34,259 | ) | (41 | ) | — | (34,300 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | — | 157 | 157 | ||||||||||||
Net current-period other comprehensive (loss) income, net of taxes | (34,259 | ) | (41 | ) | 157 | (34,143 | ) | |||||||||
Balance at December 31, 2015 | $ | (91,503 | ) | $ | (45 | ) | $ | (2,766 | ) | $ | (94,314 | ) |
Three Months Ended December 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Pre-Tax Amount | Tax Expense (Benefit) | Net Amount | Pre-Tax Amount | Tax Expense (Benefit) | Net Amount | |||||||||||||||||||
Foreign currency translation adjustments | $ | (6,743 | ) | $ | (6,743 | ) | $ | (17,558 | ) | $ | — | $ | (17,558 | ) | ||||||||||
Postemployment benefits: | ||||||||||||||||||||||||
Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs | 127 | 49 | 78 | 71 | 28 | 43 | ||||||||||||||||||
Unrealized (loss) gain on investment securities available for sale | (13 | ) | (5 | ) | (8 | ) | 94 | 32 | 62 | |||||||||||||||
Other comprehensive income (loss) | $ | (6,629 | ) | $ | 44 | $ | (6,673 | ) | $ | (17,393 | ) | $ | 60 | $ | (17,453 | ) |
Six Months Ended December 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Pre-Tax Amount | Tax Expense (Benefit) | Net Amount | Pre-Tax Amount | Tax Expense (Benefit) | Net Amount | |||||||||||||||||||
Foreign currency translation adjustments | $ | (34,259 | ) | $ | — | $ | (34,259 | ) | $ | (36,663 | ) | $ | — | $ | (36,663 | ) | ||||||||
Postemployment benefits: | ||||||||||||||||||||||||
Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs | 257 | 100 | 157 | 143 | 56 | 87 | ||||||||||||||||||
Unrealized (loss) gain on investment securities available for sale | (63 | ) | (22 | ) | (41 | ) | 53 | 18 | 35 | |||||||||||||||
Other comprehensive income (loss) | $ | (34,065 | ) | $ | 78 | $ | (34,143 | ) | $ | (36,467 | ) | $ | 74 | $ | (36,541 | ) |
Pension Benefits | Retiree Health Care Benefits | |||||||||||||||
Three Months Ended December 31, | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Components of net periodic cost: | ||||||||||||||||
Service cost | $ | 23 | $ | 24 | $ | 6 | $ | 13 | ||||||||
Interest cost | 216 | 224 | 19 | 24 | ||||||||||||
Expected return on plan assets | (123 | ) | (124 | ) | — | — | ||||||||||
Recognized net actuarial (gain) loss | 229 | 140 | (53 | ) | (22 | ) | ||||||||||
Amortization of prior service cost | 21 | 22 | (68 | ) | (68 | ) | ||||||||||
Net periodic cost | $ | 366 | $ | 286 | $ | (96 | ) | $ | (53 | ) |
Pension Benefits | Retiree Health Care Benefits | |||||||||||||||
Six Months Ended December 31, | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Components of net periodic cost: | ||||||||||||||||
Service cost | $ | 46 | $ | 48 | $ | 12 | $ | 26 | ||||||||
Interest cost | 432 | 448 | 38 | 48 | ||||||||||||
Expected return on plan assets | (246 | ) | (248 | ) | — | — | ||||||||||
Recognized net actuarial loss (gain) | 457 | 280 | (106 | ) | (44 | ) | ||||||||||
Amortization of prior service cost | 43 | 44 | (136 | ) | (136 | ) | ||||||||||
Net periodic cost | $ | 732 | $ | 572 | $ | (192 | ) | $ | (106 | ) |
Three Months Ended | Service Center Based Distribution | Fluid Power Businesses | Total | |||||||||
December 31, 2015 | ||||||||||||
Net sales | $ | 507,906 | $ | 102,440 | $ | 610,346 | ||||||
Operating income for reportable segments | 28,401 | 8,745 | 37,146 | |||||||||
Depreciation and amortization of property | 3,695 | 385 | 4,080 | |||||||||
Capital expenditures | 2,424 | 201 | 2,625 | |||||||||
December 31, 2014 | ||||||||||||
Net sales | $ | 569,537 | $ | 122,165 | $ | 691,702 | ||||||
Operating income for reportable segments | 34,580 | 12,224 | 46,804 | |||||||||
Depreciation and amortization of property | 3,769 | 351 | 4,120 | |||||||||
Capital expenditures | 4,336 | 370 | 4,706 |
Six Months Ended | Service Center Based Distribution | Fluid Power Businesses | Total | |||||||||
December 31, 2015 | ||||||||||||
Net sales | $ | 1,041,513 | $ | 210,737 | $ | 1,252,250 | ||||||
Operating income for reportable segments | 57,302 | 19,007 | 76,309 | |||||||||
Assets used in business | 1,143,601 | 206,794 | 1,350,395 | |||||||||
Depreciation and amortization of property | 7,312 | 698 | 8,010 | |||||||||
Capital expenditures | 5,311 | 426 | 5,737 | |||||||||
December 31, 2014 | ||||||||||||
Net sales | $ | 1,144,634 | $ | 249,393 | $ | 1,394,027 | ||||||
Operating income for reportable segments | 72,115 | 25,157 | 97,272 | |||||||||
Assets used in business | 1,275,416 | 205,034 | 1,480,450 | |||||||||
Depreciation and amortization of property | 7,612 | 719 | 8,331 | |||||||||
Capital expenditures | 7,074 | 732 | 7,806 |
Three Months Ended | Six Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Operating income for reportable segments | $ | 37,146 | $ | 46,804 | $ | 76,309 | $ | 97,272 | ||||||||
Adjustment for: | ||||||||||||||||
Intangible amortization—Service Center Based Distribution | 4,714 | 5,018 | 9,286 | 9,885 | ||||||||||||
Intangible amortization—Fluid Power Businesses | 1,528 | 1,550 | 3,039 | 3,174 | ||||||||||||
Corporate and other (income) expense, net | (7,458 | ) | (6,571 | ) | (15,404 | ) | (8,759 | ) | ||||||||
Total operating income | 38,362 | 46,807 | 79,388 | 92,972 | ||||||||||||
Interest expense, net | 2,158 | 1,955 | 4,345 | 3,617 | ||||||||||||
Other expense, net | 55 | 380 | 1,059 | 624 | ||||||||||||
Income before income taxes | $ | 36,149 | $ | 44,472 | $ | 73,984 | $ | 88,731 |
Three Months Ended | Six Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Geographic Areas: | ||||||||||||||||
United States | $ | 509,399 | $ | 549,805 | $ | 1,047,768 | $ | 1,111,364 | ||||||||
Canada | 67,647 | 103,523 | 133,880 | 202,704 | ||||||||||||
Other countries | 33,300 | 38,374 | 70,602 | 79,959 | ||||||||||||
Total | $ | 610,346 | $ | 691,702 | $ | 1,252,250 | $ | 1,394,027 |
Three Months Ended | Six Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Unrealized (gain) loss on assets held in rabbi trust for a non-qualified deferred compensation plan | $ | (275 | ) | $ | (264 | ) | $ | 179 | $ | (173 | ) | |||||
Foreign currency transactions loss | 148 | 574 | 671 | 627 | ||||||||||||
Other, net | 182 | 70 | 209 | 170 | ||||||||||||
Total other expense, net | $ | 55 | $ | 380 | $ | 1,059 | $ | 624 |
/s/ Deloitte & Touche LLP |
Cleveland, Ohio |
January 29, 2016 |
Index Reading | |||
Month | MCU | PMI | IP |
October | 77.7 | 50.1 | 106.2 |
November | 76.9 | 48.6 | 106.1 |
December | 76.5 | 48.2 | 106.0 |
Three Months Ended December 31, | Change in $'s Versus Prior Period - % Increase | ||||||||
As a Percent of Net Sales | |||||||||
2015 | 2014 | ||||||||
Net Sales | 100.0 | % | 100.0 | % | (11.8 | )% | |||
Gross Profit | 28.4 | % | 28.3 | % | (11.5 | )% | |||
Selling, Distribution & Administrative | 22.1 | % | 21.5 | % | (9.5 | )% | |||
Operating Income | 6.3 | % | 6.8 | % | (18.0 | )% | |||
Net Income | 3.9 | % | 4.3 | % | (19.4 | )% |
Six Months Ended December 31, | Change in $'s Versus Prior Period - % Increase | ||||||||
As a Percent of Net Sales | |||||||||
2015 | 2014 | ||||||||
Net Sales | 100.0 | % | 100.0 | % | (10.2 | )% | |||
Gross Profit | 28.3 | % | 28.0 | % | (9.3 | )% | |||
Selling, Distribution & Administrative | 21.9 | % | 21.4 | % | (7.7 | )% | |||
Operating Income | 6.3 | % | 6.7 | % | (14.6 | )% | |||
Net Income | 3.9 | % | 4.2 | % | (18.0 | )% |
Country | Amount | |||
United States | $ | 10,348 | ||
Canada | 35,606 | |||
Other countries | 9,680 | |||
Total | $ | 55,634 |
Six Months Ended December 31, | ||||||||
Net Cash Provided by (Used in): | 2015 | 2014 | ||||||
Operating Activities | $ | 32,943 | $ | 1,173 | ||||
Investing Activities | (28,793 | ) | (173,265 | ) | ||||
Financing Activities | (13,443 | ) | 136,792 | |||||
Exchange Rate Effect | (4,543 | ) | (2,705 | ) | ||||
Decrease in Cash and Cash Equivalents | $ | (13,836 | ) | $ | (38,005 | ) |
December 31, | June 30, | |||||
2015 | 2015 | |||||
Accounts receivable, gross | $ | 341,181 | $ | 386,926 | ||
Allowance for doubtful accounts | 11,894 | 10,621 | ||||
Accounts receivable, net | $ | 329,287 | $ | 376,305 | ||
Allowance for doubtful accounts, % of gross receivables | 3.5 | % | 2.7 | % |
Three Months Ended | Six Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Provision for losses on accounts receivable | $ | 701 | $ | 686 | $ | 2,448 | $ | 1,102 | ||||||||
Provision as a % of net sales | 0.11 | % | 0.10 | % | 0.20 | % | 0.08 | % |
PART II. | OTHER INFORMATION |
ITEM 1. | Legal Proceedings |
ITEM 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Period | (a) Total Number of Shares (1) | (b) Average Price Paid per Share ($) | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (2) |
October 1, 2015 to October 31, 2015 | 250,000 | 39.24 | 250,000 | 546,200 |
November 1, 2015 to November 30, 2015 | 0 | 0 | 0 | 546,200 |
December 1, 2015 to December 31, 2015 | 0 | 0 | 0 | 546,200 |
Total | 250,000 | 39.24 | 250,000 | 546,200 |
(1) | During the quarter the Company did not purchase any shares in connection with the Deferred Compensation Plan. |
(2) | On April 28, 2015, the Board of Directors authorized the repurchase of up to 1.5 million shares of the Company's common stock. We publicly announced the authorization on April 30, 2015. Purchases can be made in the open market or in privately negotiated transactions. The authorization is in effect until all shares are purchased, or the Board revokes or amends the authorization. |
ITEM 5. | Other Information. |
Exhibit No. | Description | |
3.1 | Amended and Restated Articles of Incorporation of Applied Industrial Technologies, Inc., as amended on October 25, 2005 (filed as Exhibit 3(a) to the Company’s Form 10-Q for the quarter ended December 31, 2005, SEC File No. 1-2299, and incorporated here by reference). | |
3.2 | Code of Regulations of Applied Industrial Technologies, Inc., as amended on October 19, 1999 (filed as Exhibit 3(b) to the Company’s Form 10-Q for the quarter ended September 30, 1999, SEC File No. 1-2299, and incorporated here by reference). | |
4.1 | Certificate of Merger of Bearings, Inc. (Ohio) (now named Applied Industrial Technologies, Inc.) and Bearings, Inc. (Delaware) filed with the Ohio Secretary of State on October 18, 1988, including an Agreement and Plan of Reorganization dated September 6, 1988 (filed as Exhibit 4(a) to the Company’s Registration Statement on Form S-4 filed May 23, 1997, Registration No. 333-27801, and incorporated here by reference). | |
4.2 | Private Shelf Agreement dated as of November 27, 1996, as amended through December 23, 2015, between Applied Industrial Technologies, Inc. and Prudential Investment Management, Inc. (assignee of The Prudential Insurance Company of America), conformed to show all amendments. | |
4.3 | Request for Purchase dated May 30, 2014 and 3.19% Series C Notes dated July 1, 2014, under Private Shelf Agreement dated November 27, 1996, as amended, between Applied Industrial Technologies, Inc. and Prudential Investment Management, Inc. (filed as Exhibit 10.1 to the Company's Form 8-K dated July 1, 2014, SEC File No. 1-2299, and incorporated here by reference). | |
4.4 | Request for Purchase dated October 22, 2014 and 3.21% Series D Notes dated October 30, 2014, under Private Shelf Agreement dated November 27, 1996, as amended, between Applied Industrial Technologies, Inc. and Prudential Investment Management, Inc. (filed as Exhibit 4.5 to the Company's Form 10-Q for the quarter ended September 30, 2014, SEC File No. 1-2299, and incorporated here by reference). | |
4.5 | Credit Agreement dated as of December 22, 2015, among Applied Industrial Technologies, Inc., KeyBank National Association as Agent, and various financial institutions (filed as Exhibit 10.1 to the Company's Form 8-K dated December 28, 2015, SEC File No. 1-2299, and incorporated here by reference). | |
15 | Independent Registered Public Accounting Firm’s Awareness Letter. | |
31 | Rule 13a-14(a)/15d-14(a) certifications. | |
32 | Section 1350 certifications. | |
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
APPLIED INDUSTRIAL TECHNOLOGIES, INC. | ||
(Company) | ||
Date: | January 29, 2016 | By: /s/ Neil A.Schrimsher |
Neil A. Schrimsher | ||
President & Chief Executive Officer | ||
Date: | January 29, 2016 | By: /s/ Mark O. Eisele |
Mark O. Eisele | ||
Vice President-Chief Financial Officer & Treasurer |
1. | I have reviewed this quarterly report on Form 10-Q of Applied Industrial Technologies, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: January 29, 2016 | By: /s/ Neil A. Schrimsher |
Neil A. Schrimsher | |
President & Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Applied Industrial Technologies, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: January 29, 2016 | By: /s/ Mark O. Eisele |
Mark O. Eisele | |
Vice President-Chief Financial Officer & Treasurer |
/s/ Neil A. Schrimsher | /s/ Mark O. Eisele | |
Neil A. Schrimsher | Mark O. Eisele | |
President & Chief Executive Officer | Vice President-Chief Financial Officer & Treasurer | |
Date: January 29, 2016 | ||
Document and Entity Information - shares |
6 Months Ended | |
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Dec. 31, 2015 |
Jan. 15, 2016 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | APPLIED INDUSTRIAL TECHNOLOGIES INC | |
Entity Central Index Key | 0000109563 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2015 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 39,256,654 |
Condensed Statements of Consolidated Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Statement [Abstract] | ||||
Net Sales | $ 610,346 | $ 691,702 | $ 1,252,250 | $ 1,394,027 |
Cost of Sales | 437,179 | 495,989 | 898,071 | 1,003,382 |
Gross Profit | 173,167 | 195,713 | 354,179 | 390,645 |
Selling, Distribution and Administrative, including depreciation | 134,805 | 148,906 | 274,791 | 297,673 |
Operating Income | 38,362 | 46,807 | 79,388 | 92,972 |
Interest Expense, net | 2,158 | 1,955 | 4,345 | 3,617 |
Other Expense, net | 55 | 380 | 1,059 | 624 |
Income Before Income Taxes | 36,149 | 44,472 | 73,984 | 88,731 |
Income Tax Expense | 12,202 | 14,765 | 25,746 | 29,902 |
Net Income | $ 23,947 | $ 29,707 | $ 48,238 | $ 58,829 |
Net Income Per Share - Basic | $ 0.61 | $ 0.72 | $ 1.22 | $ 1.42 |
Net Income Per Share - Diluted | 0.61 | 0.72 | 1.22 | 1.41 |
Cash dividends per common share | $ 0.27 | $ 0.25 | $ 0.54 | $ 0.50 |
Weighted average common shares outstanding for basic computation | 39,262 | 41,228 | 39,437 | 41,348 |
Dilutive effect of potential common shares | 223 | 305 | 224 | 330 |
Weighted average common shares outstanding for diluted computation | 39,485 | 41,533 | 39,661 | 41,678 |
Condensed Statements of Consolidated Comprehensive Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Net income per the condensed statements of consolidated income | $ 23,947 | $ 29,707 | $ 48,238 | $ 58,829 |
Other comprehensive loss, before tax: | ||||
Foreign currency translation adjustments | (6,743) | (17,558) | (34,259) | (36,663) |
Postemployment benefits: | ||||
Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs | 127 | 71 | 257 | 143 |
Unrealized (loss) gain on investment securities available for sale | (13) | 94 | (63) | 53 |
Total of other comprehensive loss, before tax | (6,629) | (17,393) | (34,065) | (36,467) |
Income tax expense related to items of other comprehensive income | 44 | 60 | 78 | 74 |
Other comprehensive loss, net of tax | (6,673) | (17,453) | (34,143) | (36,541) |
Comprehensive income, net of tax | $ 17,274 | $ 12,254 | $ 14,095 | $ 22,288 |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Jun. 30, 2015 |
---|---|---|
Current Assets: | ||
Accounts Receivable, less allowances | $ 11,894 | $ 10,621 |
Noncurrent Assets: | ||
Property, less accumulated depreciation | $ 168,344 | $ 164,343 |
Shareholders’ Equity | ||
Preferred stock, par value | $ 0.00 | $ 0.00 |
Preferred stock, shares authorized | 2,500,000 | 2,500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.00 | $ 0.00 |
Common stock, shares authorized | 80,000,000 | 80,000,000 |
Common stock, shares issued | 54,213,000 | 54,213,000 |
Treasury shares | 14,963,000 | 14,308,000 |
Basis of Presentation |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the financial position of Applied Industrial Technologies, Inc. (the “Company”, or “Applied”) as of December 31, 2015, and the results of its operations for the three and six month periods ended December 31, 2015 and 2014 and its cash flows for the six month periods ended December 31, 2015 and 2014, have been included. The condensed consolidated balance sheet as of June 30, 2015 has been derived from the audited consolidated financial statements at that date. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended June 30, 2015. Operating results for the three and six month periods ended December 31, 2015 are not necessarily indicative of the results that may be expected for the remainder of the fiscal year ending June 30, 2016. Change in Accounting Principle - Deferred Income Taxes In November 2015, the FASB issued its final standard on the simplification of the presentation of deferred income taxes. The standard, issued as ASU 2015-17, requires that deferred tax liabilities and assets be classified as non-current in the condensed consolidated balance sheet. This update is effective for financial statement periods beginning after December 15, 2016, and interim periods within those fiscal years, with early adoption permitted. The Company has early adopted ASU 2015-17 in the second quarter of fiscal 2016. The Company has applied the new standard retrospectively to the prior period presented in the Condensed Consolidated Balance Sheets; the impact of this change in accounting principle on balances previously reported as of June 30, 2015 was as follows:
Inventory The Company uses the last-in, first-out (LIFO) method of valuing U.S. inventories. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs and are subject to the final year-end LIFO inventory determination. Recently Adopted Accounting Guidance In June 2014, the FASB issued its final standard on accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The standard, issued as ASU 2014-12, clarifies that a performance target that affects vesting and that can be achieved after the requisite service period, should be treated as a performance condition. The update is effective for financial statement periods beginning after December 15, 2015, with early adoption permitted. The Company adopted ASU 2014-12 in the first quarter of fiscal 2016. The adoption of this update did not have an impact on the financial statements of the Company. New Accounting Pronouncements In May 2014, the FASB issued its final standard on the recognition of revenue from contracts with customers. The standard, issued as Accounting Standards Update (ASU) 2014-09, outlines a single comprehensive model for entities to use in the accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry specific guidance. The core principle of this model is that "an entity recognizes revenue to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services." In August 2015, the FASB issued ASU 2015-14 to delay the effective date of ASU 2014-09 by one year. In accordance with the delay, the update is effective for financial statement periods beginning after December 15, 2017. Early adoption is permitted, but not before financial statement periods beginning after December 15, 2016. The Company has not determined the impact of this pronouncement on its financial statements and related disclosures. In April 2015, the FASB issued its final standard on simplifying the presentation of debt issue costs. This standard, issued as ASU 2015-03, requires that all costs incurred to issue debt be presented in the balance sheet as a direct reduction from the carrying value of the debt, similar to the presentation of debt discounts. This update is effective for financial statement periods beginning after December 15, 2015, and interim periods within those fiscal years, with early adoption permitted. The impact of the adoption of this guidance will result in the reclassification of the unamortized debt issuance costs on the consolidated balance sheets, which were $563 and $394 at December 31, 2015 and June 30, 2015, respectively. In July 2015, the FASB issued its final standard on simplifying the measurement of inventory. This standard, issued as ASU 2015-11, specifies that an entity should measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The new standard does not apply to inventory that is measured using LIFO; therefore, it is not applicable to the Company's U.S. inventory values, but does apply to the Company's foreign inventories which are valued using the average cost method. The update is effective for financial statement periods beginning after December 15, 2016, with earlier application permitted. The Company has not yet determined the impact of this pronouncement on its financial statements and related disclosures. In September 2015, the FASB issued its final standard on simplifying the accounting for measurement-period adjustments for business combinations. This standard, issued as ASU 2015-16, requires that an entity that is the acquirer in a business combination that identifies adjustments to provisional amounts during the measurement period recognize those adjustments in the reporting period in which the amounts are determined. This update further requires that the acquirer record, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The update is effective for financial statement periods beginning after December 15, 2015, and should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this update, with early adoption permitted. The Company has determined that this update has no impact on the Company's historical financial statements and disclosures. When adjustments to provisional amounts occur in the future, the Company will make the adjustments in the appropriate period and include the required disclosures. |
Business Combinations |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination Disclosure [Text Block] | BUSINESS COMBINATIONS The operating results of all acquired entities are included within the consolidated operating results of the Company from the date of each respective acquisition. Fiscal 2016 Acquisitions On August 3, 2015, the Company acquired substantially all of the net assets of Atlantic Fasteners Co., Inc. ("Atlantic Fasteners"), a distributor of C-Class consumables including industrial fasteners and related industrial supplies located in Agawam, MA. Atlantic Fasteners is included in the Service Center Based Distribution segment. On October 1, 2015, the Company acquired substantially all of the net assets of S.G. Morris Co. ("SGM"). SGM, headquartered in Cleveland, OH, is a distributor of hydraulic components throughout Ohio, Western Pennsylvania and West Virginia and is included in the Fluid Power Businesses Segment. The total combined consideration for these acquisitions was approximately $27,000, net tangible assets acquired were $16,410 and intangibles including goodwill were $10,590 based upon preliminary estimated fair values at the acquisition dates, which are subject to adjustment. The total combined consideration includes $3,750 of acquisition holdback payments, included in other current liabilities and other liabilities on the condensed consolidated balance sheets, which will be paid plus interest at various times through October 2018. The Company funded the amounts paid for the acquisitions at closing from borrowings under the revolving credit facility at variable interest rates. The acquisition prices and the results of operations for the acquired entities are not material in relation to the Company's consolidated financial statements. Fiscal 2015 Acquisitions On July 1, 2014, the Company acquired 100% of the outstanding stock of Knox Oil Field Supply Inc. (“Knox”), headquartered in San Angelo, Texas, for total consideration of $132,000, including cash paid of $118,000 at closing. The primary reason for the acquisition of Knox is to complement and expand the Company’s capabilities to serve the upstream oil and gas industry in the United States. As a distributor of oilfield supplies and related services, this business is included in the Service Center Based Distribution Segment. The Company funded the acquisition by drawing $120,000 from the previously uncommitted shelf facility with Prudential Investment Management at a fixed interest rate of 3.19% with an average seven year life. The remaining $14,000 purchase price will be paid as acquisition holdback payments on the first three anniversaries of the acquisition with interest at a fixed rate of 1.5%; $7,100 was paid on the first anniversary in the first quarter of fiscal 2016. The following table summarizes the consideration transferred, assets acquired, and liabilities assumed in connection with the acquisition of Knox based on their estimated fair values at the acquisition date:
None of the goodwill acquired is expected to be deductible for income tax purposes. The goodwill recognized is attributable primarily to expected synergies and other benefits that the Company believes will result from the acquisition of Knox. Other acquisitions during fiscal 2015 include the acquisition of substantially all of the net assets of Rodamientos y Derivados del Norte S.A. de C.V., a Mexican distributor of bearings and power transmission products and related products, and Great Southern Bearings / Northam Bearings, a Western Australia distributor of bearings and power transmission products on July 1, 2014, as well as Ira Pump and Supply Inc. ("Ira Pump") a Texas distributor of oilfield pumps and supplies on November 3, 2014. These companies are included in the Service Center Based Distribution Segment. The total combined consideration for these acquisitions was approximately $54,900. Net tangible assets acquired were $21,000 and intangibles including goodwill were $33,900, based upon estimated fair values at the acquisition dates. The Company funded these acquisitions from borrowings under our existing debt facilities. Total acquisition holdback payments of $6,900 are being paid at various times through July 2017. The results of operations for the Mexican, Australian and Ira Pump acquisitions are not material for any period presented. |
Goodwill and Intangibles |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLES | GOODWILL AND INTANGIBLES The changes in the carrying amount of goodwill for both the Service Center Based Distribution segment and the Fluid Power Businesses segment for the six month period ended December 31, 2015 are as follows:
At December 31, 2015, accumulated goodwill impairment losses, subsequent to fiscal year 2002, totaled $36,605 and related to the Fluid Power Businesses segment. The Company has seven reporting units and performed its annual goodwill impairment assessment as of January 1, 2015. The Company concluded that five of the reporting units had material excesses of fair value compared to their carrying amounts. The Company concluded that two reporting units (Canada service center and Australia / New Zealand) had excess fair value of approximately $39,000 and $4,000 or 15% and 14%, respectively when compared to the carrying amounts of approximately $258,000 and $28,000, respectively. The techniques used in the Company's impairment test have incorporated a number of assumptions that the Company believes to be reasonable and to reflect market conditions forecast at the assessment date. Assumptions in estimating future cash flows are subject to a high degree of judgment. The Company makes all efforts to forecast future cash flows as accurately as possible with the information available at the time the forecast is made. To this end, the Company evaluates the appropriateness of its assumptions as well as its overall forecasts by comparing projected results of upcoming years with actual results of preceding years and validating that differences therein are reasonable. Key assumptions, all of which are Level 3 inputs, relate to pricing trends, inventory costs, discount rate, customer demand, and the long-term growth and foreign exchange rates. A number of benchmarks from independent industry and other economic publications were also used. Changes in future actual results, assumptions and estimates after the assessment date may lead to an outcome where impairment charges would be required in future periods. Specifically, actual results may vary from the Company’s forecasts and such variations may be material and unfavorable, thereby triggering the need for future impairment tests where the conclusions may differ in reflection of prevailing market conditions. The Company’s identifiable intangible assets resulting from business combinations are amortized over their estimated period of benefit and consist of the following:
Amounts include the impact of foreign currency translation. Fully amortized amounts are written off. During the six month period ended December 31, 2015, the Company acquired identifiable intangible assets with a preliminary acquisition cost allocation and weighted-average life as follows:
Estimated future amortization expense by fiscal year (based on the Company’s identifiable intangible assets as of December 31, 2015) for the next five years is as follows: $12,000 for the remainder of 2016, $22,600 for 2017, $20,500 for 2018, $18,900 for 2019, $17,100 for 2020 and $15,700 for 2021. A significant portion of our intangible assets relate to recent acquisitions that primarily operate in the oil and gas sectors. Considering the recent downturn in the energy market, a prolonged period of low oil and natural gas prices may result in asset impairments, including potential impairment of the carrying value of our goodwill and finite-lived intangible assets. |
Debt (Notes) |
6 Months Ended |
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Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | DEBT In December 2015, the Company entered into a new five-year credit facility with a group of banks expiring in December 2020. This agreement provides for a $125,000 unsecured term loan and a $250,000 unsecured revolving credit facility. Borrowings under this agreement carry variable interest rates tied to either LIBOR or prime at the Company's discretion. At December 31, 2015, the Company had $125,000 outstanding under the term loan and $70,000 outstanding under the revolver. Unused lines under this facility, net of outstanding letters of credit of $3,677 to secure certain insurance obligations, totaled $176,323 at December 31, 2015, and are available to fund future acquisitions or other capital and operating requirements. The interest rate on the term loan as of December 31, 2015 was 1.44%. The weighted average interest rate on the revolving credit facility outstanding as of December 31, 2015 was 1.31%. The new credit facility replaced the Company's previous term loan and revolving credit facility agreements. The Company had $96,875 outstanding at June 30, 2015 under the previous term loan agreement, which carried a variable interest rate tied to LIBOR and was 1.19% at June 30, 2015. At June 30, 2015, the Company had $52,000 outstanding under the previous revolving credit facility. Unused lines under this facility, net of outstanding letters of credit of $3,764 to secure certain insurance obligations, totaled $94,236 at June 30, 2015 and were available to fund future acquisitions or other capital and operating requirements. The weighted average interest rate on the revolving credit facility outstanding as of June 30, 2015 was 1.15%. Additionally, the Company had letters of credit outstanding with a separate bank, not associated with the revolving credit agreement, in the amount of $2,000 as of December 31, 2015 and $1,841 as of June 30, 2015, in order to secure certain insurance obligations. Other Long-Term Borrowings In April 2014, the Company assumed $2,359 of debt as a part of its headquarters facility acquisition. The 1.5% fixed interest rate note is held by the State of Ohio Development Services Agency, maturing in May 2024. At December 31, 2015 and June 30, 2015, $2,009 and $2,120 was outstanding, respectively. At December 31, 2015 and June 30, 2015, the Company had borrowings outstanding under its unsecured shelf facility agreement with Prudential Investment Management of $170,000. The "Series C" notes have a principal amount of $120,000 and carry a fixed interest rate of 3.19%, and are due in equal principal payments in July 2020, 2021 and 2022. The "Series D" notes have a principal amount of $50,000 and carry a fixed interest rate of 3.21%, and are due in equal principal payments in October 2019 and 2023. As of December 31, 2015, $50,000 in additional financing was available under this facility. |
Fair Value Measurements |
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Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Marketable securities measured at fair value at December 31, 2015 and June 30, 2015 totaled $8,850 and $9,330, respectively. These marketable securities are held in a rabbi trust for a non-qualified deferred compensation plan. The marketable securities are included in Other Assets on the accompanying condensed consolidated balance sheets and their fair values are based upon quoted market prices in an active market (Level 1 in the fair value hierarchy). The fair value of the debt outstanding under the shelf facility agreement with Prudential Investment Management approximates carrying value at December 31, 2015 (Level 2 in the fair value hierarchy). The revolving credit facility and the term loan contain variable interest rates and their carrying values approximated fair value at both December 31, 2015 and June 30, 2015 (Level 2 in the fair value hierarchy). |
Shareholders' Equity |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHAREHOLDERS' EQUITY | SHAREHOLDERS' EQUITY Accumulated Other Comprehensive Income (Loss) Changes in the accumulated other comprehensive income (loss), are comprised of the following:
Other Comprehensive Income (Loss) Details of other comprehensive income (loss) are as follows:
Anti-dilutive Common Stock Equivalents In the three month periods ended December 31, 2015 and 2014, stock options and stock appreciation rights related to 702 and 440 thousand shares of common stock were not included in the computation of diluted earnings per share for the periods then ended as they were anti-dilutive. In the six month periods ended December 31, 2015 and 2014, stock options and stock appreciation rights related to 776 and 309 thousand shares of common stock were not included in the computation of diluted earnings per share for the periods then ended as they were anti-dilutive. |
Benefit Plans |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BENEFIT PLANS | BENEFIT PLANS The following table provides summary disclosures of the net periodic postemployment costs recognized for the Company’s postemployment benefit plans:
The Company contributed $4,885 to its pension benefit plans and $85 to its retiree health care plans in the six months ended December 31, 2015. Expected contributions for the remainder of fiscal 2016 are $420 for the pension benefit plans to fund scheduled retirement payments and $90 for retiree health care plans. |
Segment and Geographic Information |
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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 $5,666 and $6,063, in the three months ended December 31, 2015 and 2014, respectively, and $11,234 and $11,636 in the six months ended December 31, 2015 and 2014, respectively, have been eliminated in the Segment Financial Information tables below.
Enterprise resource planning system (ERP) related assets are included in assets used in business and capital expenditures within the Service Center Based Distribution segment. A reconciliation of operating income for reportable segments to the condensed consolidated income before income taxes is as follows:
The change in corporate and other (income) expense, net is due to changes in the amounts and levels of certain supplier support benefits and 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 and are as follows:
Other countries consist of Mexico, Australia and New Zealand. |
Other (Income) Expense, Net |
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OTHER (INCOME) EXPENSE, NET | OTHER EXPENSE, NET Other expense, net consists of the following:
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Subsequent Events (Notes) |
6 Months Ended |
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Dec. 31, 2015 | |
Subsequent Event [Line Items] | |
Subsequent Events [Text Block] | 10. SUBSEQUENT EVENTS We have evaluated events and transactions occurring subsequent to December 31, 2015 through the date the financial statements were issued. On January 4, 2016, the Company acquired substantially all of the net assets of HUB Industrial Supply ("HUB") for a purchase price of $33,000. The Company funded this acquisition from borrowings under the revolving credit facility at a variable interest rate. HUB is a distributor of consumable industrial products and will be included in the Service Center Based Distribution Segment from January 4, 2016. |
Basis of Presentation (Policies) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Recently Adopted Accounting Guidance In June 2014, the FASB issued its final standard on accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The standard, issued as ASU 2014-12, clarifies that a performance target that affects vesting and that can be achieved after the requisite service period, should be treated as a performance condition. The update is effective for financial statement periods beginning after December 15, 2015, with early adoption permitted. The Company adopted ASU 2014-12 in the first quarter of fiscal 2016. The adoption of this update did not have an impact on the financial statements of the Company. Recently Adopted Accounting Guidance In June 2014, the FASB issued its final standard on accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The standard, issued as ASU 2014-12, clarifies that a performance target that affects vesting and that can be achieved after the requisite service period, should be treated as a performance condition. The update is effective for financial statement periods beginning after December 15, 2015, with early adoption permitted. The Company adopted ASU 2014-12 in the first quarter of fiscal 2016. The adoption of this update did not have an impact on the financial statements of the Company. Change in Accounting Principle - Deferred Income Taxes In November 2015, the FASB issued its final standard on the simplification of the presentation of deferred income taxes. The standard, issued as ASU 2015-17, requires that deferred tax liabilities and assets be classified as non-current in the condensed consolidated balance sheet. This update is effective for financial statement periods beginning after December 15, 2016, and interim periods within those fiscal years, with early adoption permitted. The Company has early adopted ASU 2015-17 in the second quarter of fiscal 2016. The Company has applied the new standard retrospectively to the prior period presented in the Condensed Consolidated Balance Sheets; the impact of this change in accounting principle on balances previously reported as of June 30, 2015 was as follows:
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Inventory, Policy [Policy Text Block] | Inventory The Company uses the last-in, first-out (LIFO) method of valuing U.S. inventories. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs and are subject to the final year-end LIFO inventory determination. |
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Description of New Accounting Pronouncements Not yet Adopted [Text Block] | New Accounting Pronouncements In May 2014, the FASB issued its final standard on the recognition of revenue from contracts with customers. The standard, issued as Accounting Standards Update (ASU) 2014-09, outlines a single comprehensive model for entities to use in the accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry specific guidance. The core principle of this model is that "an entity recognizes revenue to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services." In August 2015, the FASB issued ASU 2015-14 to delay the effective date of ASU 2014-09 by one year. In accordance with the delay, the update is effective for financial statement periods beginning after December 15, 2017. Early adoption is permitted, but not before financial statement periods beginning after December 15, 2016. The Company has not determined the impact of this pronouncement on its financial statements and related disclosures. In April 2015, the FASB issued its final standard on simplifying the presentation of debt issue costs. This standard, issued as ASU 2015-03, requires that all costs incurred to issue debt be presented in the balance sheet as a direct reduction from the carrying value of the debt, similar to the presentation of debt discounts. This update is effective for financial statement periods beginning after December 15, 2015, and interim periods within those fiscal years, with early adoption permitted. The impact of the adoption of this guidance will result in the reclassification of the unamortized debt issuance costs on the consolidated balance sheets, which were $563 and $394 at December 31, 2015 and June 30, 2015, respectively. In July 2015, the FASB issued its final standard on simplifying the measurement of inventory. This standard, issued as ASU 2015-11, specifies that an entity should measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The new standard does not apply to inventory that is measured using LIFO; therefore, it is not applicable to the Company's U.S. inventory values, but does apply to the Company's foreign inventories which are valued using the average cost method. The update is effective for financial statement periods beginning after December 15, 2016, with earlier application permitted. The Company has not yet determined the impact of this pronouncement on its financial statements and related disclosures. In September 2015, the FASB issued its final standard on simplifying the accounting for measurement-period adjustments for business combinations. This standard, issued as ASU 2015-16, requires that an entity that is the acquirer in a business combination that identifies adjustments to provisional amounts during the measurement period recognize those adjustments in the reporting period in which the amounts are determined. This update further requires that the acquirer record, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The update is effective for financial statement periods beginning after December 15, 2015, and should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this update, with early adoption permitted. The Company has determined that this update has no impact on the Company's historical financial statements and disclosures. When adjustments to provisional amounts occur in the future, the Company will make the adjustments in the appropriate period and include the required disclosures. |
Basis of Presentation Change in Accounting Principle, Effect of Retrospective Adoption (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] |
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Business Combinations Business Combinations Assets Acquired Table (Tables) |
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] |
None of the goodwill acquired is expected to be deductible for income tax purposes. The goodwill recognized is attributable primarily to expected synergies and other benefits that the Company believes will result from the acquisition of Knox. |
Goodwill and Intangibles (Tables) |
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Goodwill [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the carrying amount of goodwill by reportable segment | The changes in the carrying amount of goodwill for both the Service Center Based Distribution segment and the Fluid Power Businesses segment for the six month period ended December 31, 2015 are as follows:
At December 31, 2015, accumulated goodwill impairment losses, subsequent to fiscal year 2002, totaled $36,605 and related to the Fluid Power Businesses segment. |
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Schedule of Intangible Assets | The Company’s identifiable intangible assets resulting from business combinations are amortized over their estimated period of benefit and consist of the following:
Amounts include the impact of foreign currency translation. Fully amortized amounts are written off. |
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Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | During the six month period ended December 31, 2015, the Company acquired identifiable intangible assets with a preliminary acquisition cost allocation and weighted-average life as follows:
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Shareholders' Equity (Tables) |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated Other Comprehensive Income (Loss) Changes in the accumulated other comprehensive income (loss), are comprised of the following:
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Schedule of Comprehensive Income (Loss) [Table Text Block] | Details of other comprehensive income (loss) are as follows:
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Benefit Plans (Tables) |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net periodic costs | The following table provides summary disclosures of the net periodic postemployment costs recognized for the Company’s postemployment benefit plans:
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Segment and Geographic Information (Tables) |
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Segment financial information |
Enterprise resource planning system (ERP) related assets are included in assets used in business and capital expenditures within the Service Center Based Distribution segment. |
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Reconciliation of operating income for reportable segments to the consolidated income before income taxes | A reconciliation of operating income for reportable segments to the condensed consolidated income before income taxes is as follows:
The change in corporate and other (income) expense, net is due to changes in the amounts and levels of certain supplier support benefits and expenses being allocated to the segments. The expenses being allocated include corporate charges for working capital, logistics support and other items. |
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Net sales are presented in geographic areas | Net sales are presented in geographic areas based on the location of the facility shipping the product and are as follows:
Other countries consist of Mexico, Australia and New Zealand |
Other (Income) Expense, Net (Tables) |
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Other Income and Expenses [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other expense (income), net | Other expense, net consists of the following:
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Basis of Presentation Change in Accounting Principle (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Jun. 30, 2015 |
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Other Assets, Current | $ 36,177 | $ 37,816 |
Other Liabilities, Noncurrent | 38,195 | 43,883 |
Unamortized Debt Issuance Expense | $ 563 | 394 |
Scenario, Previously Reported [Member] | ||
Other Assets, Current | 51,111 | |
Deferred Tax Assets, Net, Noncurrent | 97 | |
Other Liabilities, Noncurrent | 46,295 | |
Restatement Adjustment [Member] | ||
Other Assets, Current | 37,816 | |
Deferred Tax Assets, Net, Noncurrent | 10,980 | |
Other Liabilities, Noncurrent | 43,883 | |
New Accounting Pronouncement, Early Adoption, Effect [Member] | ||
Other Assets, Current | (13,295) | |
Deferred Tax Assets, Net, Noncurrent | 10,883 | |
Other Liabilities, Noncurrent | $ (2,412) |
Business Combinations Knox - Fair Value of Assets Acquired (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
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Sep. 30, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Jun. 30, 2015 |
Jul. 01, 2014 |
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Goodwill | $ 249,267 | $ 254,406 | |||
Knox Acquisition [Member] | |||||
Accounts receivable | $ 19,100 | ||||
Inventories | 18,800 | ||||
Property | 3,900 | ||||
Identifiable intangible assets | 58,500 | ||||
Goodwill | 63,200 | ||||
Total assets acquired | 163,500 | ||||
Accounts payable and accrued liabilities | 7,200 | ||||
Deferred income taxes | 24,300 | ||||
Net assets acquired | $ 132,000 | ||||
Purchase price | $ 7,100 | $ 132,800 | |||
Working Capital Adjustments | (800) | ||||
Total Consideration | $ 132,000 |
Goodwill and Intangibles (Details) $ in Thousands |
6 Months Ended |
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Dec. 31, 2015
USD ($)
| |
Changes in the carrying amount of goodwill by reportable segment | |
Balance at July 1, 2015 | $ 254,406 |
Goodwill acquired during the period | 5,098 |
Other, primarily currency translation | (10,237) |
Balance at December 31, 2015 | 249,267 |
Service Center Based Distribution Segment [Member] | |
Changes in the carrying amount of goodwill by reportable segment | |
Balance at July 1, 2015 | 253,477 |
Goodwill acquired during the period | 3,285 |
Other, primarily currency translation | (10,237) |
Balance at December 31, 2015 | 246,525 |
Fluid Power Businesses Segment [Member] | |
Changes in the carrying amount of goodwill by reportable segment | |
Balance at July 1, 2015 | 929 |
Goodwill acquired during the period | 1,813 |
Other, primarily currency translation | 0 |
Balance at December 31, 2015 | $ 2,742 |
Goodwill and Intangibles (Details 1) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Jun. 30, 2015 |
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Amortization details resulting from business combinations | ||
Amount | $ 282,472 | $ 287,064 |
Accumulated Amortization | 97,463 | 88,236 |
Net Book Value | 185,009 | 198,828 |
Total Identifiable Intangible | 185,009 | 198,828 |
Customer relationships | ||
Amortization details resulting from business combinations | ||
Amount | 219,623 | 225,332 |
Accumulated Amortization | 73,262 | 65,789 |
Net Book Value | 146,361 | 159,543 |
Trade names | ||
Amortization details resulting from business combinations | ||
Amount | 42,152 | 42,689 |
Accumulated Amortization | 14,580 | 13,187 |
Net Book Value | 27,572 | 29,502 |
Vendor relationships | ||
Amortization details resulting from business combinations | ||
Amount | 14,112 | 14,465 |
Accumulated Amortization | 7,545 | 7,258 |
Net Book Value | 6,567 | 7,207 |
Non-competition agreements | ||
Amortization details resulting from business combinations | ||
Amount | 6,585 | 4,578 |
Accumulated Amortization | 2,076 | 2,002 |
Net Book Value | $ 4,509 | $ 2,576 |
Goodwill and Intangibles Goodwill and Intangibles (Details 2) $ in Thousands |
6 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
| |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquisition Cost Allocation | $ 4,610 |
Customer Relationships [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquisition Cost Allocation | $ 2,930 |
Weighted-Average Life | 15 years |
Trade Names [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquisition Cost Allocation | $ 1,190 |
Weighted-Average Life | 15 years |
Noncompete Agreements [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquisition Cost Allocation | $ 490 |
Weighted-Average Life | 5 years |
Fair Value Measurements (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Jun. 30, 2015 |
---|---|---|
Level 1 [Member] | Recurring [Member] | ||
Fair Value Measurements (Textuals) [Line Items] | ||
Marketable securities | $ 8,850 | $ 9,330 |
Shareholders' Equity Shareholders Equity Details Textuals (Details) - shares shares in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 702 | 440 | 776 | 309 |
Benefit Plans (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Pension Benefits [Member] | ||||
Components of net periodic cost: | ||||
Service cost | $ 23 | $ 24 | $ 46 | $ 48 |
Interest cost | 216 | 224 | 432 | 448 |
Expected return on plan assets | (123) | (124) | (246) | (248) |
Recognized net actuarial (gain) loss | 229 | 140 | 457 | 280 |
Amortization of prior service cost | 21 | 22 | 43 | 44 |
Net periodic cost | 366 | 286 | 732 | 572 |
Retiree Health Care Benefits [Member] | ||||
Components of net periodic cost: | ||||
Service cost | 6 | 13 | 12 | 26 |
Interest cost | 19 | 24 | 38 | 48 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Recognized net actuarial (gain) loss | (53) | (22) | (106) | (44) |
Amortization of prior service cost | (68) | (68) | (136) | (136) |
Net periodic cost | $ (96) | $ (53) | $ (192) | $ (106) |
Benefit Plans (Details Textuals) $ in Thousands |
6 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
| |
Pension Plans, Defined Benefit [Member] | |
Benefit Plans (Textuals) [Abstract] | |
Contribution to benefit plan | $ 4,885 |
Expected contribution to benefit plans for remainder of fiscal year | 420 |
Retiree Health Care Benefits [Member] | |
Benefit Plans (Textuals) [Abstract] | |
Contribution to benefit plan | 85 |
Expected contribution to benefit plans for remainder of fiscal year | $ 90 |
Segment and Geographic Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Jun. 30, 2015 |
|
Segment financial information | |||||
Net sales | $ 610,346 | $ 691,702 | $ 1,252,250 | $ 1,394,027 | |
Operating income for reportable segments | 38,362 | 46,807 | 79,388 | 92,972 | |
Assets used in business | 1,350,395 | 1,480,450 | 1,350,395 | 1,480,450 | $ 1,432,556 |
Depreciation and amortization of property | 4,080 | 4,120 | 8,010 | 8,331 | |
Capital expenditures | 2,625 | 4,706 | 5,737 | 7,806 | |
Operating Segments [Member] | |||||
Segment financial information | |||||
Operating income for reportable segments | 37,146 | 46,804 | 76,309 | 97,272 | |
Service Center Based Distribution [Member] | |||||
Segment financial information | |||||
Net sales | 507,906 | 569,537 | 1,041,513 | 1,144,634 | |
Operating income for reportable segments | 28,401 | 34,580 | 57,302 | 72,115 | |
Assets used in business | 1,143,601 | 1,275,416 | 1,143,601 | 1,275,416 | |
Depreciation and amortization of property | 3,695 | 3,769 | 7,312 | 7,612 | |
Capital expenditures | 2,424 | 4,336 | 5,311 | 7,074 | |
Fluid Power Businesses [Member] | |||||
Segment financial information | |||||
Net sales | 102,440 | 122,165 | 210,737 | 249,393 | |
Operating income for reportable segments | 8,745 | 12,224 | 19,007 | 25,157 | |
Assets used in business | 206,794 | 205,034 | 206,794 | 205,034 | |
Depreciation and amortization of property | 385 | 351 | 698 | 719 | |
Capital expenditures | $ 201 | $ 370 | $ 426 | $ 732 |
Segment and Geographic Information (Details 2) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Net sales are presented in geographic areas | ||||
Net Sales | $ 610,346 | $ 691,702 | $ 1,252,250 | $ 1,394,027 |
United States | ||||
Net sales are presented in geographic areas | ||||
Net Sales | 509,399 | 549,805 | 1,047,768 | 1,111,364 |
Canada | ||||
Net sales are presented in geographic areas | ||||
Net Sales | 67,647 | 103,523 | 133,880 | 202,704 |
Other countries | ||||
Net sales are presented in geographic areas | ||||
Net Sales | $ 33,300 | $ 38,374 | $ 70,602 | $ 79,959 |
Segment and Geographic Information (Details Textuals) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Segment and Geographic Information (Textuals) [Abstract] | ||||
Sales primarily from businesses segment | $ 5,666 | $ 6,063 | $ 11,234 | $ 11,636 |
Other (Income) Expense, Net (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Other Income and Expenses [Abstract] | ||||
Unrealized (gain) loss on assets held in rabbi trust for a nonqualified deferred compensation plan | $ (275) | $ (264) | $ 179 | $ (173) |
Foreign currency transactions loss | 148 | 574 | 671 | 627 |
Other, net | 182 | 70 | 209 | 170 |
Total other expense, net | $ 55 | $ 380 | $ 1,059 | $ 624 |
Subsequent Events (Details) |
Jan. 04, 2016
USD ($)
|
---|---|
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Total Purchase Price | $ 33,000 |
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