Summary by Business Segment

12 Months Ended

Mar. 31, 2016

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 21 operating segments, including fourteen regional gas and hardgoods distribution businesses, four 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. Although there have been minor internal organizational changes in certain operating segments that comprise the Distribution business segment, there were no changes to this reportable segment from the prior year.

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 61%, 59% and 60% of the Distribution business segment’s sales in fiscal years 2016, 2015 and 2014, respectively. Hardgoods consist of welding consumables and equipment, safety products, construction supplies, and maintenance, repair and operating supplies. Hardgoods sales represented 39%, 41% and 40% of the Distribution business segment’s sales in fiscal years 2016, 2015 and 2014, respectively. The Distribution business segment accounted for approximately 90% of consolidated sales in each of the fiscal years 2016, 2015 and 2014.

The All Other Operations business segment consists of six business units which primarily manufacture and/or distribute carbon dioxide, dry ice, nitrous oxide, ammonia and refrigerant gases, along with a nitrogen services 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. While the Company does conduct operations outside of the United Statesin Canada, Mexico, Russia, Dubai and several European countries, revenues from foreign countries represent less than2%of the Company’s net sales. Revenues derived from foreign countries, based on the point of sale, were $88 million, $93 million and $88 million in the fiscal years ended March 31, 2016, 2015 and 2014, respectively. Long-lived assets attributable to the Company’s foreign operations represent less than 5% of the consolidated total long-lived assets of the Company and were $137 million, $143 million and $148 million at March 31, 2016, 2015 and 2014, respectively. Long-lived assets primarily consist of plant and equipment, net. The Company’s customer base is diverse with its largest customer accounting for less than 1% 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, 2016, 2015 and 2014. 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 reported expenses related to the Air Liquide merger under selling, distribution and administrative expenses in the “Eliminations and Other” column. Additionally, the Company’s other special charges are not allocated to the Company’s business segments, and 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 4 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, 2016
(In thousands)	Distribution		All Other Ops.		Eliminations and Other			Total
Gas and rent	$	2,866,065	$	631,646	$	(38,209	)	$	3,459,502
Hardgoods	1,850,163		4,123		(11		)	1,854,275
Net sales (a)	4,716,228		635,769		(38,220		)	5,313,777
Cost of products sold (excluding depreciation) (a)	2,037,492		302,326		(38,220		)	2,301,598
Selling, distribution and administrative expenses	1,828,814		213,940		—			2,042,754
Merger costs and other special charges	—		—		35,967			35,967
Depreciation	288,704		29,848		—			318,552
Amortization	29,403		4,792		—			34,195
Total costs and expenses	4,184,413		550,906		(2,253		)	4,733,066
Operating income	$	531,815	$	84,863	$	(35,967	)	$	580,711
Assets	$	5,531,042	$	603,914	$	—		$	6,134,956
Capital expenditures	$	426,290	$	30,609	$	—		$	456,899
	Year Ended
	March 31, 2015
(In thousands)	Distribution		All Other Ops.		Eliminations and Other			Total
Gas and rent	$	2,823,297	$	556,941	$	(29,219	)	$	3,351,019
Hardgoods	1,950,192		3,681		(7		)	1,953,866
Net sales (a)	4,773,489		560,622		(29,226		)	5,304,885
Cost of products sold (excluding depreciation) (a)	2,092,466		292,635		(29,226		)	2,355,875
Selling, distribution and administrative expenses	1,792,116		186,558		—			1,978,674
Depreciation	272,200		25,510		—			297,710
Amortization	27,373		3,975		—			31,348
Total costs and expenses	4,184,155		508,678		(29,226		)	4,663,607
Operating income	$	589,334	$	51,944	$	—		$	641,278
Assets	$	5,397,535	$	576,075	$	—		$	5,973,610
Capital expenditures	$	438,867	$	29,922	$	—		$	468,789
	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
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
Total costs and expenses	3,979,314		485,670		(22,981		)	4,442,003
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

____________________

^(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.