NOTE 15 - 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 related to the Company's segments (in thousands):

	Three Months Ended June 30,
	2018								2017
	SC		IPS		SCS		Total		SC		IPS			SCS		Total
Sales	$	193,576	$	74,257	$	43,394	$	311,227	$	164,749	$	44,470		$	41,479	$	250,698
Amortization		2,310		1,538		271		4,119		2,227		1,793			271		4,291
Income (loss) from operations		19,623		7,418		3,984		31,025		16,190		(38	)		3,447		19,599
Income from operations, excluding amortization	$	21,933	$	8,956	$	4,255	$	35,144	$	18,417	$	1,755		$	3,718	$	23,890

	Six Months Ended June 30,
	2018								2017
	SC		IPS		SCS		Total		SC		IPS		SCS		Total
Sales	$	368,937	$	141,899	$	86,327	$	597,163	$	313,461	$	93,528	$	82,236	$	489,225
Amortization		4,770		3,165		542		8,477		4,477		3,588		542		8,607
Income from operations		32,992		12,173		7,767		52,932		27,281		1,676		7,234		36,191
Income from operations, excluding amortization	$	37,762	$	15,338	$	8,309	$	61,409	$	31,758	$	5,264	$	7,776	$	44,798

The following table presents reconciliations of operating income for reportable segments to the consolidated income before taxes (in thousands):

	Three Months Ended June 30,					Six Months Ended June 30,
	2018			2017		2018			2017
Operating income for reportable segments	$	35,144		$	23,890	$	61,409		$	44,798
Adjustment for:
Amortization of intangible assets		4,119			4,291		8,477			8,607
Corporate expenses		10,965			9,342		21,723			17,698
Income from operations		20,060			10,257		31,209			18,493
Interest expense		6,137			3,992		11,178			7,645
Other (income) expense, net		(1,416	)		57		(1,438	)		(171	)
Income before income taxes	$	15,339		$	6,208	$	21,469		$	11,019