SEGMENT AND GEOGRAPHIC INFORMATION

Effective July 1, 2017, the Company completed a number of changes to its organizational structure that resulted in a change in how the Company manages its businesses, allocates resources and measures performance. As a result, the Company has revised its reportable segments to reflect how management currently reviews financial information and makes operating decisions. All Canadian and Mexican subsidiaries are now grouped under the Service Center Based Distribution segment. All prior-period amounts have been adjusted to reflect the reportable segment change.

The accounting policies of the Company’s reportable segments are generally the same as those used to prepare the condensed consolidated financial statements. Intercompany sales primarily from the Fluid Power Businesses segment to the Service Center Based Distribution segment of $6,091 and $5,264, in the three months ended September 30, 2017 and 2016, respectively, have been eliminated in the Segment Financial Information tables below.



Three Months Ended	Service Center Based Distribution		Fluid Power Businesses		Total
September 30, 2017
Net sales	$	568,913	$	111,788	$	680,701
Operating income for reportable segments	33,722		13,290		47,012
Assets used in business	1,182,784		202,123		1,384,907
Depreciation and amortization of property	3,669		258		3,927
Capital expenditures	5,548		788		6,336

September 30, 2016
Net sales	$	529,230	$	95,618	$	624,848
Operating income for reportable segments	26,996		10,478		37,474
Assets used in business	1,147,199		152,240		1,299,439
Depreciation and amortization of property	3,416		234		3,650
Capital expenditures	2,924		75		2,999

Enterprise Resource Planning system (ERP) related assets are included within the Service Center Based Distribution segment.

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



	Three Months Ended
	September 30,
	2017			2016
Operating income for reportable segments	$	47,012		$	37,474
Adjustment for:
Intangible amortization—Service Center Based Distribution	4,512			4,846
Intangible amortization—Fluid Power Businesses	1,319			1,391
Corporate and other income, net	(10,656		)	(12,182		)
Total operating income	51,837			43,419
Interest expense, net	2,166			2,146
Other income, net	(711		)	(197		)
Income before income taxes	$	50,382		$	41,470

The change in corporate and other income, net is 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.

Net sales are presented in geographic areas based on the location of the facility shipping the product and are as follows:



	Three Months Ended
	September 30,
	2017		2016
Geographic Areas:
United States	$	567,545	$	523,367
Canada	66,817		62,581
Other countries	46,339		38,900
Total	$	680,701	$	624,848

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