Segment Information

6 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The accounting policies of the Company’s reportable segments are generally the same as those used to prepare the condensed consolidated financial statements. LIFO expense of $863 and $1,929 in the three months ended December 31, 2020 and 2019, respectively, and $1,996 and $2,287 in the six months ended December 31, 2020 and 2019, respectively, is recorded in cost of sales in the condensed statements of income, and is included in operating income for the Service Center Based Distribution segment. The Company allocates LIFO expense between the segments in the fourth quarter of its fiscal year. Intercompany sales, primarily from the Fluid Power & Flow Control segment to the Service Center Based Distribution segment, of $7,442 and $7,436, in the three months ended December 31, 2020 and 2019, and $14,938, respectively, and $14,749 in the six months ended December 31, 2020 and 2019, respectively, have been eliminated in the Segment Financial Information tables below.

Three Months Ended	Service Center Based Distribution		Fluid Power & Flow Control		Total
December 31, 2020
Net sales	$	515,690	$	235,597	$	751,287
Operating income for reportable segments	42,654		26,647		69,301
Depreciation and amortization of property	4,252		957		5,209
Capital expenditures	4,442		410		4,852
December 31, 2019
Net sales	$	575,788	$	257,587	$	833,375
Operating income for reportable segments	53,905		29,449		83,354
Depreciation and amortization of property	4,280		1,114		5,394
Capital expenditures	6,239		780		7,019

Six Months Ended	Service Center Based Distribution		Fluid Power & Flow Control		Total
December 31, 2020
Net sales	$	1,028,974	$	470,120	$	1,499,094
Operating income for reportable segments	92,555		52,508		145,063
Assets used in business	1,257,457		983,560		2,241,017
Depreciation and amortization of property	8,647		1,914		10,561
Capital expenditures	7,530		919		8,449
December 31, 2019
Net sales	$	1,178,948	$	510,831	$	1,689,779
Operating income for reportable segments	114,265		56,306		170,571
Assets used in business	1,291,399		1,127,598		2,418,997
Depreciation and amortization of property	8,458		2,159		10,617
Capital expenditures	10,434		1,531		11,965

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,
	2020		2019		2020		2019
Operating income for reportable segments	$	69,301	$	83,354	$	145,063	$	170,571
Adjustment for:
Intangible amortization—Service Center Based Distribution	982		2,832		3,563		5,886
Intangible amortization—Fluid Power & Flow Control	7,293		7,363		14,438		14,683
Impairment—Service Center Based Distribution	49,528		—		49,528		—
Corporate and other expense, net	13,920		14,414		27,648		30,091
Total operating (loss) income	(2,422)		58,745		49,886		119,911
Interest expense, net	7,658		9,583		15,311		19,642
Other expense (income), net	88		(215)		(89)		(215)
(Loss) income before income taxes	$	(10,168)	$	49,377	$	34,664	$	100,484

The change in corporate and other expense, net is due to changes in corporate expenses, as well as in the amounts and levels of certain expenses being allocated to the segments. The expenses being allocated include corporate charges for working capital, logistics support, and other items.