SEGMENT INFORMATION

In the first quarter of fiscal 2019, the Company performed a review of its management reporting structure and implemented changes to align with how the Company measures performance. As a result, the Company has revised its reportable segments to reflect how management currently reviews financial information and makes operating decisions. Certain supplier support benefits are now included within the Service Center Based Distribution segment operating income. Previously, these benefits were included in Corporate and other expense, net. 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 & Flow Control segment to the Service Center Based Distribution segment, of $6,769 and $5,664, in the three months ended December 31, 2018 and 2017, respectively, and $13,685 and $11,755 in the six months ended December 31, 2018 and 2017, respectively, have been eliminated in the Segment Financial Information tables below.



Three Months Ended	Service Center Based Distribution		Fluid Power & Flow Control		Total
December 31, 2018
Net sales	$	589,298	$	250,740	$	840,038
Operating income for reportable segments	58,317		29,243		87,560
Depreciation and amortization of property	3,911		1,127		5,038
Capital expenditures	3,256		667		3,923

December 31, 2017
Net sales	$	555,607	$	111,580	$	667,187
Operating income for reportable segments	52,642		13,766		66,408
Depreciation and amortization of property	3,802		279		4,081
Capital expenditures	4,822		302		5,124



Six Months Ended	Service Center Based Distribution		Fluid Power & Flow Control		Total
December 31, 2018
Net sales	$	1,193,347	$	511,206	$	1,704,553
Operating income for reportable segments	121,126		60,123		181,249
Assets used in business	1,223,926		1,066,062		2,289,988
Depreciation and amortization of property	7,822		2,197		10,019
Capital expenditures	5,700		1,396		7,096

December 31, 2017
Net sales	$	1,124,520	$	223,368	$	1,347,888
Operating income for reportable segments	111,889		26,968		138,857
Assets used in business	1,199,704		206,178		1,405,882
Depreciation and amortization of property	7,471		537		8,008
Capital expenditures	10,370		1,090		11,460

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



	Three Months Ended					Six Months Ended
	December 31,					December 31,
	2018		2017			2018		2017
Operating income for reportable segments	$	87,560	$	66,408		$	181,249	$	138,857
Adjustment for:
Intangible amortization—Service Center Based Distribution	3,973		4,425			7,991		8,937
Intangible amortization—Fluid Power & Flow Control	7,018		1,270			13,921		2,589
Corporate and other expense, net	15,604		13,998			32,033		28,779
Total operating income	60,965		46,715			127,304		98,552
Interest expense, net	9,578		2,139			20,054		4,305
Other expense (income), net	946		(20		)	707		(731		)
Income before income taxes	$	50,441	$	44,596		$	106,543	$	94,978

The change in corporate and other expense, net is due to changes in corporate expenses, as well as in the amounts and levels of certain expenses being allocated to the segments. The expenses being allocated include corporate charges for working capital, logistics support and other items.