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SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2015
SEGMENT REPORTING [Abstract]  
SEGMENT REPORTING
NOTE 13 - SEGMENT REPORTING

The Company’s reportable business segments are: Service Centers, Innovative Pumping Solutions and Supply Chain Services. The Service Centers segment is engaged in providing maintenance, MRO products, equipment and integrated services, including logistics capabilities, to industrial customers. The Service Centers segment provides a wide range of MRO products in the rotating equipment, bearing, power transmission, hose, fluid power, metal working, fastener, industrial supply, safety products and safety services categories. The Innovative Pumping Solutions segment fabricates and assembles custom-made pump packages, remanufactures pumps and manufactures branded private label pumps. The Supply Chain Services segment provides a wide range of MRO products and manages all or part of a customer's supply chain, including warehouse and inventory management.

The high degree of integration of the Company’s operations necessitates the use of a substantial number of allocations and apportionments in the determination of business segment information. Sales are shown net of intersegment eliminations.

The following table sets out financial information relating the Company’s segments (in thousands):

  
Three Months ended September 30,
  
Nine Months ended September 30,
 
  
Service
Centers
  
IPS
  
SCS
  
Total
  
Service
Centers
  
IPS
  
SCS
  
Total
 
2015
                
Sales
 
$
199,306
  
$
61,458
  
$
42,316
  
$
303,080
  
$
639,212
  
$
202,627
  
$
126,523
  
$
968,362
 
Operating income for reportable segments1
 
$
17,957
  
$
6,139
  
$
3,821
  
$
27,917
  
$
61,943
  
$
20,667
  
$
10,835
  
$
93,455
 
                                 
2014
                                
Sales
 
$
255,041
  
$
88,614
  
$
43,398
  
$
387,053
  
$
735,104
  
$
259,070
  
$
122,986
  
$
1,117,160
 
Operating income for reportable segments
 
$
29,444
  
$
14,979
  
$
3,721
  
$
48,144
  
$
79,356
  
$
40,328
  
$
10,424
  
$
130,108
 

(1) Excludes impairment expense of $48.0 million for IPS and $10.9 for Service Centers.
 
The following table presents reconciliations of operating income for reportable segments to the consolidated income before taxes (in thousands):
 
  Three Months Ended
September 30,
  
Nine Months Ended
September 30,
 
             
  
2015
  
2014
  
2015
  
2014
 
Operating income for reportable segments
 
$
27,917
  
$
48,144
  
$
93,455
  
$
130,108
 
Adjustment for:
                
B27 settlement
  
7,348
   
-
   
7,348
   
-
 
Impairment
  
58,888
   
-
   
58,888
   
-
 
Amortization of intangibles
  
5,240
   
5,658
   
15,907
   
16,895
 
Corporate expense
  
12,053
   
11,688
   
34,830
   
33,869
 
Total operating income (loss)
  
(55,612
)
  
30,798
   
(23,518
)
  
79,344
 
Interest expense
  
2,630
   
3,295
   
7,905
   
9,868
 
Other expense (income), net
  
327
   
10
   
(67
)
  
1
 
Income (loss) before income taxes
 
$
(58,569
)
 
$
27,493
  
$
(31,356
)
 
$
69,475