SEGMENT AND GEOGRAPHIC INFORMATION

The Company's reportable segments are: Service Center Based Distribution and Fluid Power Businesses. These reportable segments contain the Company's various operating segments which have been aggregated based upon similar economic and operating characteristics. The Service Center Based Distribution segment provides customers with solutions to their maintenance, repair and original equipment manufacturing needs through the distribution of industrial products including bearings, power transmission components, fluid power components and systems, industrial rubber products, linear motion products, tools, safety products, and other industrial and maintenance supplies. The Fluid Power Businesses segment distributes fluid power components and operates shops that assemble fluid power systems and components, performs equipment repair, and offers technical advice to customers.

The accounting policies of the Company’s reportable segments are generally the same as those described in note 1. Intercompany sales, primarily from the Fluid Power Businesses segment to the Service Center Based Distribution segment of $23,704, $21,485, and $24,087, in fiscal 2017, 2016, and 2015, respectively, have been eliminated in the following table.

Segment Financial Information



	Service Center Based Distribution		Fluid Power Businesses		Total
Year Ended June 30, 2017
Net sales	$	2,119,904	$	473,842	$	2,593,746
Operating income for reportable segments	111,357		51,006		162,363
Assets used in the business	1,153,411		234,184		1,387,595
Depreciation and amortization of property	14,010		1,296		15,306
Capital expenditures	14,497		2,548		17,045
Year Ended June 30, 2016
Net sales	$	2,087,041	$	432,387	$	2,519,428
Operating income for reportable segments	109,491		40,794		150,285
Assets used in the business	1,123,597		188,428		1,312,025
Depreciation and amortization of property	14,595		1,371		15,966
Capital expenditures	12,227		903		13,130
Year Ended June 30, 2015
Net sales	$	2,254,768	$	496,793	$	2,751,561
Operating income for reportable segments	140,421		48,535		188,956
Assets used in the business	1,228,131		204,425		1,432,556
Depreciation and amortization of property	15,196		1,382		16,578
Capital expenditures	13,531		1,402		14,933

ERP related assets are included in assets used in the business and capital expenditures within the Service Center Based Distribution segment. Within the geographic disclosures, these assets are included in the United States. Expenses associated with the ERP are included in the Corporate and other income, net, line in the reconciliation of operating income for reportable segments to the consolidated income before income taxes table below.

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



Year Ended June 30,	2017			2016			2015
Operating income for reportable segments	$	162,363		$	150,285		$	188,956
Adjustments for:
Intangible amortization — Service Center Based Distribution	18,669			19,595			19,561
Intangible amortization — Fluid Power Businesses	5,702			5,985			6,236
Goodwill Impairment — Service Center Based Distribution	—			64,794			—
Corporate and other income, net	(36,598		)	(28,890		)	(21,460		)
Total operating income	174,590			88,801			184,619
Interest expense, net	8,541			8,763			7,869
Other (income) expense, net	(917		)	1,060			879
Income before income taxes	$	166,966		$	78,978		$	175,871

Fluctuations in corporate and other (income) expense, net, are due to changes in corporate expenses, as well as 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.

Product Category

Net sales by product category are as follows:



Year Ended June 30,	2017		2016		2015
Industrial	$	1,855,437	$	1,836,484	$	2,013,447
Fluid power	738,309		682,944		738,114
Net sales	$	2,593,746	$	2,519,428	$	2,751,561

The fluid power product category includes sales of hydraulic, pneumatic, lubrication and filtration components and systems, and repair services through the Company’s Fluid Power Businesses segment as well as the Service Center Based Distribution segment.

Geographic Information

Net sales are presented in geographic areas based on the location of the facility shipping the product. Long-lived assets are based on physical locations and are comprised of the net book value of property and intangible assets. Information by geographic area is as follows:



Year Ended June 30,	2017		2016		2015
Net Sales:
United States	$	2,182,552	$	2,117,485	$	2,238,263
Canada	251,999		257,797		358,580
Other Countries	159,195		144,146		154,718
Total	$	2,593,746	$	2,519,428	$	2,751,561



June 30,	2017		2016		2015
Long-Lived Assets:
United States	$	207,126	$	225,538	$	217,597
Canada	57,947		66,304		76,565
Other Countries	6,558		7,163		9,113
Total	$	271,631	$	299,005	$	303,275

Other countries consist of Mexico, Australia, New Zealand, and Singapore.