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Revenue Recognition Revenue Recognition | 12 Months Ended
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Jun. 30, 2019
Revenue from Contract with Customer [Abstract] |
Revenue from Contract with Customer [Text Block] | REVENUE RECOGNITION The Company adopted ASC 606 using the modified retrospective method effective July 1, 2018. The Company completed an analysis of revenue streams at each of its business units and evaluated the impact of adopting ASC 606 on revenue recognition. The Company primarily sells purchased products and the majority of its revenue is recognized at a point in time. The cumulative effect of initially applying ASC 606 resulted in a net increase to the opening retained earnings balance of $3,429, net of tax, at July 1, 2018. The transition adjustment is comprised of two components. The first component is recognition of revenue from bill and hold arrangements. The second component is recognition of revenue from contracts that meet the criteria to recognize revenue over time as the underlying products have no alternative use and the Company has a right to payment for performance completed to date. Revenue for periods prior to July 1, 2018 has not been adjusted and continues to be reported under ASC Topic 605 - Revenue Recognition. Contract Assets The Company’s contract assets consist of un-billed amounts resulting from contracts for which revenue is recognized over time using the cost-to-cost method, and for which revenue recognized exceeds the amount billed to the customer. On July 1, 2018, $13,823 of contract assets were recognized as part of the cumulative effect adjustment resulting from the adoption of ASC 606. Activity related to contract assets, which are included in other current assets on the consolidated balance sheet, is as follows:
| June 30, 2019 |  | July 1, 2018 |  | $ Change |  | % Change |
Contract assets | $ | 8,920 |  | $ | 13,823 |  | $ | (4,903 | ) | (35.5 | )%
The following tables summarize the impacts of ASC 606 on the Company's consolidated financial statements:
|  | Year Ended June 30, 2019
|  | As Reported |  |  | Adjustments |  |  | Balances without adoption of ASC 606 |
Net sales |  | $ | 3,472,739 |  |  | $ | 4,675 |  |  | $ | 3,477,414 |
Cost of sales |  | 2,465,116 |  |  | 3,691 |  |  | 2,468,807 |
Gross profit |  | 1,007,623 |  |  | 984 |  |  | 1,008,607 |
Selling, distribution and administrative expense, including depreciation |  | 742,241 |  |  | 321 |  |  | 742,562 |
Intangible Impairment |  | 31,594 |  |  | — |  |  | 31,594 |
Operating income |  | 233,788 |  |  | 663 |  |  | 234,451 |
Interest expense, net |  | 40,188 |  |  | — |  |  | 40,188 |
Other income, net |  | (881 | ) |  | — |  |  | (881 | )
Income before income taxes |  | 194,481 |  |  | 663 |  |  | 195,144 |
Income tax expense |  | 50,488 |  |  | 166 |  |  | 50,654 |
Net income |  | $ | 143,993 |  |  | $ | 497 |  |  | $ | 144,490 |
|  | As of June 30, 2019
|  | As Reported |  |  | Adjustments |  |  | Balances without adoption of ASC 606 |
Assets |  |  |  |  |  |
Accounts receivable, net |  | $ | 540,902 |  |  | $ | 4,690 |  |  | $ | 545,592 |
Other current assets |  | 51,462 |  |  | (8,920 | ) |  | 42,542 |
Inventories |  | 447,555 |  |  | 6,552 |  |  | 454,107 |
Other assets |  | 28,399 |  |  | 297 |  |  | 28,696 |
Liabilities |  |  |  |  |  |
Other current liabilities |  | 69,491 |  |  | 6,688 |  |  | 76,179 |
Other liabilities |  | 102,019 |  |  | (1,116 | ) |  | 100,903 |
Equity |  |  |  |  |  |
Retained Earnings |  | $ | 897,034 |  |  | $ | (2,932 | ) |  | $ | 894,102 |
Disaggregation of Revenues The following tables present the Company's net sales by reportable segment and by geographic areas based on the location of the facility shipping the product for the years ended June 30, 2019 and 2018. Other countries consist of Mexico, Australia, New Zealand, and Singapore.
| Year Ended June 30,
| 2019 |  | 2018
| Service Center Based Distribution |  | Fluid Power & Flow Control |  | Total |  |  | Service Center Based Distribution |  | Fluid Power & Flow Control |  | Total |
Geographic Areas: |  |  |  |  |  |  |
United States | $ | 2,009,479 |  | $ | 1,007,280 |  | $ | 3,016,759 |  |  | $ | 1,903,388 |  | $ | 711,653 |  | $ | 2,615,041 |
Canada | 271,305 |  | — |  | 271,305 |  |  | 273,622 |  | — |  | 273,622 |
Other countries | 172,121 |  | 12,554 |  | 184,675 |  |  | 169,408 |  | 15,203 |  | 184,611 |
Total | $ | 2,452,905 |  | $ | 1,019,834 |  | $ | 3,472,739 |  |  | $ | 2,346,418 |  | $ | 726,856 |  | $ | 3,073,274 |
The following table presents the Company’s percentage of revenue by reportable segment and major customer industry for the year ended June 30, 2019:
| Year Ended June 30, 2019
| Service Center Based Distribution |  |  | Fluid Power & Flow Control |  |  | Total |
General Industry | 33.7 | % |  | 43.0 | % |  | 36.3 | %
Industrial Machinery | 10.4 |  |  | 21.8 |  |  | 13.8 |
Metals | 12.6 |  |  | 9.4 |  |  | 11.6 |
Food | 10.6 |  |  | 2.7 |  |  | 8.3 |
Oil & Gas | 10.1 |  |  | 2.1 |  |  | 7.8 |
Forest Products | 8.0 |  |  | 3.1 |  |  | 6.6 |
Chem/Petrochem | 3.1 |  |  | 13.8 |  |  | 6.3 |
Cement & Aggregate | 6.7 |  |  | 1.0 |  |  | 5.0 |
Transportation | 4.8 |  |  | 3.1 |  |  | 4.3 |
Total | 100.0 | % |  | 100.0 | % |  | 100.0 | %
The following table presents the Company’s percentage of revenue by reportable segment and product line for the year ended June 30, 2019:
| Year Ended June 30, 2019
| Service Center Based Distribution |  |  | Fluid Power & Flow Control |  |  | Total |
Power Transmission | 33.9 | % |  | 1.6 | % |  | 24.4 | %
Fluid Power | 13.5 |  |  | 39.4 |  |  | 21.1 |
Bearings, Linear & Seals | 27.5 |  |  | 0.3 |  |  | 19.5 |
General Maintenance; Hose Products | 25.1 |  |  | 5.3 |  |  | 19.3 |
Specialty Flow Control | — |  |  | 53.4 |  |  | 15.7 |
Total | 100.0 | % |  | 100.0 | % |  | 100.0 | %

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- References No definition available. + Details
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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 + Details
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