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SEGMENT REPORTING | 9 Months Ended
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Sep. 30, 2022
Segment Reporting [Abstract] |
SEGMENT REPORTING | 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 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, industrial supply, safety products and safety services categories. The Innovative Pumping Solutions segment fabricates and assembles custom-made pump packages, re-manufactures pumps, manufactures branded private label pumps and provides products and process lines for the water and wastewater treatment industries. 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. Sales are shown net of inter-segment eliminations. The following table sets out financial information related to the Company's segments excluding amortization (in thousands):
| Three Months Ended September 30,
| 2022 |  | 2021
| SC |  | IPS |  | SCS |  | Total |  | SC a |  | IPS |  | SCS |  | Total
Product sales 1 | $ | 238,595 |  |  | $ | — |  |  | $ | 62,294 |  |  | $ | 300,889 |  |  | $ | 199,052 |  |  | $ | — |  |  | $ | 36,213 |  |  | $ | 235,265 |
Inventory services 2 | — |  |  | — |  |  | 5,893 |  |  | 5,893 |  |  | — |  |  | — |  |  | 4,302 |  |  | 4,302 |
Staffing services 3 | 21,488 |  |  | — |  |  | — |  |  | 21,488 |  |  | 13,487 |  |  | — |  |  | — |  |  | 13,487 |
Pump production and delivery 4 | — |  |  | 59,044 |  |  | — |  |  | 59,044 |  |  | — |  |  | 36,440 |  |  | — |  |  | 36,440 |
Total Revenue | $ | 260,083 |  |  | $ | 59,044 |  |  | $ | 68,187 |  |  | $ | 387,314 |  |  | $ | 212,539 |  |  | $ | 36,440 |  |  | $ | 40,515 |  |  | $ | 289,494 |
Income from operations 5 | $ | 35,718 |  |  | $ | 7,327 |  |  | $ | 5,332 |  |  | $ | 48,377 |  |  | $ | 29,381 |  |  | $ | 277 |  |  | $ | 3,181 |  |  | $ | 32,839 |
| Nine Months Ended September 30,
| 2022 |  |  | 2021
| SC |  | IPS |  | SCS |  | Total |  |  | SC a |  | IPS |  | SCS |  | Total
Product sales 1 | $ | 676,815 |  |  | $ | — |  |  | $ | 157,660 |  |  | $ | 834,475 |  |  |  | $ | 570,737 |  |  | $ | — |  |  | $ | 103,058 |  |  | $ | 673,795 |
Inventory services 2 | — |  |  | — |  |  | 17,010 |  |  | 17,010 |  |  |  | — |  |  | — |  |  | 12,761 |  |  | 12,761 |
Staffing services 3 | 53,162 |  |  | — |  |  | — |  |  | 53,162 |  |  |  | 37,805 |  |  | — |  |  | — |  |  | 37,805 |
Pump production and delivery 4 | — |  |  | 169,890 |  |  | — |  |  | 169,890 |  |  |  | — |  |  | 96,411 |  |  | — |  |  | 96,411 |
Total Revenue | $ | 729,977 |  |  | $ | 169,890 |  |  | $ | 174,670 |  |  | $ | 1,074,537 |  |  |  | $ | 608,542 |  |  | $ | 96,411 |  |  | $ | 115,819 |  |  | $ | 820,772 |
Income from operations 5 | $ | 95,437 |  |  | $ | 23,122 |  |  | $ | 14,311 |  |  | $ | 132,870 |  |  |  | $ | 77,819 |  |  | $ | 6,027 |  |  | $ | 8,991 |  |  | $ | 92,837 |
1 Product sales that are recognized at a point in time. 2 Inventory management services that are recognized over the contract life. 3 Staffing services that are invoiced on a day-rate basis. 4 Custom pump production and delivery is recognized over time. 5 Income from operations excludes amortization of intangibles and corporate expenses. a During the second quarter of 2022, we identified an error related to service revenue which resulted in a reclassification between product sales and service revenue. We assessed the materiality of the error on prior period financial statements in accordance with Securities and Exchange Commission Staff Accounting Bulletin No. 99, Materiality, codified in Accounting Standards Codification (ASC) 250, Presentation of Financial Statements. We concluded that the error was not material to our prior period consolidated financial statements and, therefore, amendments of previously filed consolidated financial statements are not required. In accordance with ASC 250, we have corrected the error by revising the consolidated financial statements presented herein. Prior periods not presented herein will be revised, as applicable, in future filings. 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,
| 2022 |  | 2021 |  | 2022 |  | 2021
Income from operations for reportable segments | $ | 48,377 |  |  | $ | 32,839 |  |  | $ | 132,870 |  |  | $ | 92,837 |
Adjustment for: |  |  |  |  |  |  |
Amortization of intangible assets | 5,132 |  |  | 4,238 |  |  | 13,958 |  |  | 12,690 |
Corporate expenses | 16,706 |  |  | 17,416 |  |  | 44,894 |  |  | 47,883 |
Income from operations | $ | 26,539 |  |  | $ | 11,185 |  |  | 74,018 |  |  | 32,264 |
Interest expense | 6,833 |  |  | 5,264 |  |  | 17,610 |  |  | 15,844 |
Other expense (income), net | 1,565 |  |  | (450) |  |  | 2,941 |  |  | (985) |
Income before income taxes | $ | 18,141 |  |  | $ | 6,371 |  |  | $ | 53,467 |  |  | $ | 17,405 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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