XML 40 R25.htm IDEA: XBRL DOCUMENT v3.7.0.1
SEGMENT AND GEOGRAPHICAL REPORTING
 12 Months Ended
Dec. 31, 2016
SEGMENT AND GEOGRAPHICAL REPORTING [Abstract]  
SEGMENT AND GEOGRAPHICAL REPORTING
NOTE 17 – SEGMENT AND GEOGRAPHICAL 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 and equipment, 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 manages all or part of a customer's MRO products 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.

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

Years Ended December 31,
 
Service
Centers
  
Innovative
Pumping
Solutions
  
Supply
Chain
Services
  
Total
 
2016
            
Sales
 
$
621,007
  
$
187,124
  
$
153,961
  
$
962,092
 
Operating income for reportable segments, excluding amortization
  
47,634
   
9,867
   
15,449
   
72,950
 
Identifiable assets at year end
  
370,261
   
175,198
   
44,796
   
590,255
 
Capital expenditures
  
447
 
  
3,827
   
129
   
4,403
 
Proceeds from sale of fixed assets
  
1,038
  
168
  
-
   
1,206
Depreciation
  
6,520
   
3,834
   
126
   
10,480
 
Amortization
  
9,152
   
7,826
   
1,083
   
18,061
 
Interest expense
  
9,290
   
4,422
   
1,852
   
15,564
 
                 
2015
                
Sales
 
$
826,588
  
$
254,829
  
$
165,626
  
$
1,247,043
 
Operating income for reportable segments, excluding impairment expense
  
78,170
   
21,584
   
14,213
   
113,967
 
Identifiable assets at year end
  
451,333
   
159,365
   
50,012
   
660,710
 
Capital expenditures
  
3,185
   
8,383
   
604
   
12,172
 
Depreciation
  
7,734
   
2,930
   
227
   
10,891
 
Amortization
  
10,334
   
8,406
   
1,881
   
20,621
 
Interest expense
  
2,967
   
6,881
   
1,084
   
10,932
 
Impairment expense by segment
  
15,842
   
52,893
   
-
   
68,735
 
                 
2014
                
Sales
 
$
987,561
  
$
348,134
  
$
163,967
  
$
1,499,662
 
Operating income for reportable segments, excluding impairment expense
  
107,699
   
51,162
   
13,794
   
172,655
 
Identifiable assets at year end
  
568,182
   
202,228
   
54,637
   
825,047
 
Capital expenditures
  
4,100
   
4,043
   
122
   
8,265
 
Depreciation
  
8,416
   
2,381
   
397
   
11,194
 
Amortization
  
11,281
   
8,993
   
2,206
   
22,480
 
Interest expense
  
3,422
   
8,451
   
924
   
12,797
 
Impairment expense by segment
  
10,210
   
107,359
   
-
   
117,569
 
 
 
Years Ended December 31,
 
          
  
2016
  
2015
  
2014
 
Operating income for reportable segments,    excluding impairment expense
 
$
72,950
  
$
113,967
  
$
172,655
 
Adjustments for:
            
B27 settlement
  
-
   
7,348
   
-
 
Impairment expense
  
-
   
68,735
   
117,569
 
Amortization of intangibles
  
18,061
   
20,621
   
22,480
 
Corporate and other expense, net
  
35,557
   
45,179
   
45,234
 
Total operating income (loss)
  
19,332
   
(27,916
)
  
(12,628
)
Interest expense
  
15,564
   
10,932
   
12,797
 
Other expenses (income), net
  
(5,906
)
  
72
   
131
 
Income (loss) before income taxes
 
$
9,674
  
$
(38,920
)
 
$
(25,556
)

The Company had capital expenditures at Corporate of $0.5 million, $1.8 million, and $0.8 million for the years ended December 31, 2016, 2015, and 2014, respectively. The Company had identifiable assets at Corporate of $18.3 million, $23.3 million, and $19.3 million as of December 31, 2016, 2015, and 2014, respectively. Corporate depreciation was $1.4 million, $1.7 million, and $1.4 million for the years ended December 31, 2016, 2015, and 2014, respectively.

Geographical Information

Revenues are presented in geographic area based on location of the facility shipping products or providing services. Long-lived assets are based on physical locations and are comprised of the net book value of property.

The Company’s revenues and property and equipment by geographical location are as follows (in thousands):

  
Years Ended December 31,
 
  
2016
  
2015
  
2014
 
Revenues
         
United States
 
$
873,926
  
$
1,119,210
  
$
1,300,493
 
Canada
  
88,166
   
127,833
   
195,633
 
Other
  
-
   
-
   
3,536
 
Total
 
$
962,092
  
$
1,247,043
  
$
1,499,662
 

  
As of December 31,
 
  
2016
  
2015
 
Property and Equipment, net
      
United States
 
$
48,635
  
$
53,695
 
Canada
  
12,172
   
14,724
 
Dubai
  
-
   
84
 
Total
 
$
60,807
  
$
68,503