Segment Information

9 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATIONThe 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 $7,397 and $781 in the three months ended March 31, 2022 and 2021, respectively, and $15,643 and $2,777 in the nine months ended March 31, 2022 and 2021, respectively, is recorded in cost of sales in the condensed statements of consolidated income, and is included in operating income for the related reportable segment, as the Company allocates LIFO expense between the segments. Intercompany sales, primarily from the Fluid Power & Flow Control segment to the Service Center Based Distribution segment, of $9,951 and $8,835, in the three months ended March 31, 2022 and 2021, respectively, and $26,942 and $23,773 in the nine months ended March 31, 2022 and 2021 respectively, have been eliminated in the Segment Financial Information tables below.

Three Months Ended	Service Center Based Distribution		Fluid Power & Flow Control		Total
March 31, 2022
Net sales	$	658,998	$	321,664	$	980,662
Operating income for reportable segments	81,640		40,586		122,226
Depreciation and amortization of property	4,362		990		5,352
Capital expenditures	3,435		729		4,164
March 31, 2021
Net sales	$	572,892	$	268,045	$	840,937
Operating income for reportable segments	65,553		30,829		96,382
Depreciation and amortization of property	4,230		850		5,080
Capital expenditures	3,150		578		3,728

Nine Months Ended	Service Center Based Distribution		Fluid Power & Flow Control		Total
March 31, 2022
Net sales	$	1,847,087	$	902,130	$	2,749,217
Operating income for reportable segments	213,743		111,817		325,560
Assets used in business	1,401,236		982,335		2,383,571
Depreciation and amortization of property	13,112		3,103		16,215
Capital expenditures	9,571		2,103		11,674
March 31, 2021
Net sales	$	1,601,866	$	738,165	$	2,340,031
Operating income for reportable segments	158,108		83,337		241,445
Assets used in business	1,385,648		919,740		2,305,388
Depreciation and amortization of property	12,877		2,764		15,641
Capital expenditures	10,680		1,497		12,177

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

	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2022		2021		2022		2021
Operating income for reportable segments	$	122,226	$	96,382	$	325,560	$	241,445
Adjustment for:
Intangible amortization—Service Center Based Distribution	848		944		2,621		4,507
Intangible amortization—Fluid Power & Flow Control	7,043		7,293		21,475		21,731
Impairment—Service Center Based Distribution	—		—		—		49,528
Corporate and other expense, net	18,492		13,678		52,830		41,326
Total operating income (loss)	95,843		74,467		248,634		124,353
Interest expense, net	5,852		7,608		20,249		22,919
Other expense (income), net	469		(1,657)		(712)		(1,746)
Income before income taxes	$	89,522	$	68,516	$	229,097	$	103,180

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.