Summary by Business Segment

12 Months Ended

Mar. 31, 2014

Segment Reporting, Measurement Disclosures [Abstract]

Summary by Business Segment

SUMMARY BY BUSINESS SEGMENT

The Company identifies its businesses as separate operating segments for reporting purposes based on the review of discrete financial results for each of the businesses by the Company’s chief operating decision maker for performance assessment and resource allocation purposes. The Company aggregates its operating segments, based on products and services, into two business segments, Distribution and All Other Operations. The Distribution business segment represents the Company’s only reportable segment under GAAP, while the All Other Operations business segment represents the aggregation of all other operating segments of the Company not considered reportable under GAAP. The Distribution business segment consists of 20 operating segments, including fourteen regional gas and hardgoods distribution businesses, three gas companies that either produce or market gas products sold primarily through the Company’s regional distribution businesses, two companies that sell or provide safety-related products and services, and the Company’s rental welder business. The aggregation of the operating segments that form the Distribution business segment is based on the segment’s foundation as a national integrated distribution business providing a broad array of gas products and supporting services offered in all modes of gas distribution, from large bulk quantities to smaller quantities in cylinder or packaged form, as well as a broad complementary hardgoods product line.

The Distribution business segment’s principal products include industrial, medical and specialty gases sold in packaged and bulk quantities, as well as hardgoods. The Company’s air separation facilities and national specialty gas labs primarily produce gases that are sold by the regional distribution businesses. Gas sales include nitrogen, oxygen, argon, helium, hydrogen, welding and fuel gases such as acetylene, propylene and propane, carbon dioxide, nitrous oxide, ultra high purity grades, special application blends and process chemicals. Business units in the Distribution business segment also recognize rental revenue, derived from gas cylinders, cryogenic liquid containers, bulk storage tanks, tube trailers and welding and welding related equipment. Gas and rent represented 60%, 59% and 58% of the Distribution business segment’s sales in fiscal years 2014, 2013 and 2012, respectively. Hardgoods consist of welding consumables and equipment, safety products, construction supplies, and maintenance, repair and operating supplies. Hardgoods sales represented 40%, 41% and 42% of the Distribution business segment’s sales in fiscal years 2014, 2013 and 2012, respectively. The Distribution business segment accounted for approximately 90% of consolidated sales in each of the fiscal years 2014, 2013 and 2012.

The All Other Operations business segment consists of six operating segments, of which five primarily manufacture and/or distribute single gas product lines (carbon dioxide, dry ice, nitrous oxide, ammonia and refrigerant gases), and one of which represents a medical gas system construction and service business. The operating segments reflected in the All Other Operations business segment individually do not meet the thresholds to be reported as separate reportable segments. Elimination entries represent intercompany sales from the Company’s All Other Operations business segment to its Distribution business segment.

The Company’s operations are predominantly in the United States. However, the Company does conduct operations outside of the United Statesin Canada, Mexico, Russia, Dubai and several European countries. Revenues derived from foreign countries, based on the point of sale, were$85 million, $84 million and $83 millionin the fiscal years endedMarch 31, 2014, 2013 and 2012, respectively. Long-lived assets attributable to the Company’s foreign operations represent less than4%of the consolidated total long-lived assets of the Company and were$168 million, $157 million and $146 million at March 31, 2014, 2013 and 2012, respectively. Long-lived assets primarily consist of plant and equipment as well as intangible assets. The Company’s customer base is diverse with its largest customer accounting for approximately 0.5% of total net sales.

Business segment information for the Company’s Distribution and All Other Operations business segments is presented in the following tables for the years ended March 31, 2014, 2013 and 2012. The accounting policies of the business segments are the same as those described in the Summary of Significant Accounting Policies (Note 1). Although corporate operating expenses are generally allocated to each business segment based on sales dollars, the Company reports expenses (excluding depreciation) related to the implementation of its SAP system and the Company’s withdrawal from various MEPPs under selling, distribution and administrative expenses in the “Eliminations and Other” column. Additionally, the Company’s restructuring and other special charges, net and the legal, professional and other costs (benefits) incurred as a result of the fiscal 2011 Air Products unsolicited takeover attempt are not allocated to the Company’s business segments. These costs (benefits) are also reflected in the “Eliminations and Other” column. Corporate assets have been allocated to the Distribution business segment, intercompany sales are recorded on the same basis as sales to third parties, and intercompany transactions are eliminated in consolidation. See Note 3 for the impact of acquisitions on the operating results of each business segment. Management utilizes more than one measurement and multiple views of data to measure segment performance and to allocate resources to the segments. However, the predominant measurements are consistent with the Company’s consolidated financial statements and, accordingly, are reported on the same basis in the following tables.

			Year Ended
	March 31, 2014
(In thousands)	Distribution		All Other Ops.		Eliminations and Other			Total
Gas and rent	$	2,717,272	$	539,954	$	(30,404	)	$	3,226,822
Hardgoods	1,841,518		4,200		(3		)	1,845,715
Total net sales (a)	4,558,790		544,154		(30,407		)	5,072,537
Cost of products sold (excluding depreciation) (a)	1,996,065		281,916		(30,407		)	2,247,574
Selling, distribution and administrative expenses	1,705,408		176,289		7,426			1,889,123
Depreciation	252,329		23,132		—			275,461
Amortization	25,512		4,333		—			29,845
Operating income	$	579,476	$	58,484	$	(7,426	)	$	630,534
Assets	$	5,222,781	$	570,533	$	—		$	5,793,314
Capital expenditures	$	317,066	$	37,521	$	—		$	354,587
	Year Ended
	March 31, 2013
(In thousands)	Distribution		All Other Ops.		Eliminations and Other			Total
Gas and rent	$	2,577,901	$	587,322	$	(34,201	)	$	3,131,022
Hardgoods	1,820,204		6,276		(5		)	1,826,475
Total net sales (a)	4,398,105		593,598		(34,206		)	4,957,497
Cost of products sold (excluding depreciation) (a)	1,958,573		311,200		(34,206		)	2,235,567
Selling, distribution and administrative expenses	1,620,651		174,643		33,230			1,828,524
Restructuring and other special charges, net	—		—		8,089			8,089
Depreciation	240,167		21,455		—			261,622
Amortization	22,297		4,981		—			27,278
Operating income	$	556,417	$	81,319	$	(41,319	)	$	596,417
Assets	$	5,047,042	$	571,183	$	—		$	5,618,225
Capital expenditures	$	300,431	$	25,034	$	—		$	325,465
	Year Ended
	March 31, 2012
(In thousands)	Distribution		All Other Ops.		Eliminations and Other			Total
Gas and rent	$	2,462,232	$	543,111	$	(37,784	)	$	2,967,559
Hardgoods	1,772,637		6,102		(15		)	1,778,724
Total net sales (a)	4,234,869		549,213		(37,799		)	4,746,283
Cost of products sold (excluding depreciation) (a)	1,918,108		295,121		(37,799		)	2,175,430
Selling, distribution and administrative expenses	1,528,215		162,205		37,349			1,727,769
Restructuring and other special charges, net	—		—		24,448			24,448
Costs (benefits) related to unsolicited takeover attempt	—		—		(7,870		)	(7,870		)
Depreciation	225,723		19,353		—			245,076
Amortization	20,139		5,070		—			25,209
Operating income	$	542,684	$	67,464	$	(53,927	)	$	556,221
Assets	$	4,816,034	$	504,551	$	—		$	5,320,585
Capital expenditures	$	333,271	$	23,243	$	—		$	356,514

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^(a)  Amounts in the “Eliminations and Other” column represent the elimination of intercompany sales and associated gross profit on sales from the Company’s All Other Operations business segment to its Distribution business segment.