XML 29 R17.htm IDEA: XBRL DOCUMENT v3.24.3
SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
The Company's reportable business segments are: Service Centers ("SC"), Innovative Pumping Solutions ("IPS"), and Supply Chain Services ("SCS").

The Service Centers segment is engaged in providing MRO products, equipment and integrated services, including logistics capabilities, to business-to-business 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.

Our chief operating decision maker ("CODM") is the Chief Executive Officer. The Company's CODM directs the allocation of resources to operating or business segments based on revenue and operating income of each respective segment.

As a part of the Company's annual business planning, the CODM reviews our reportable segment composition and financial performance. As a result of this review, on January 1st, 2024, we moved certain branch locations previously reported under our IPS segment to our SC segment. Prior period segment disclosures have been recast.
The following table sets out financial information related to the Company's segments excluding amortization (in thousands):

 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Sales  
Service Centers$316,831 $294,459 $911,783 $914,078 
Innovative Pumping Solutions89,825 58,962 225,417 158,440 
Supply Chain Services 66,279 65,828 193,926 199,038 
Total Sales$472,935 $419,249 $1,331,126 $1,271,556 
Operating Income
Service Centers$46,154 $41,912 $130,329 $134,549 
Innovative Pumping Solutions18,207 10,599 38,543 26,555 
Supply Chain Services5,568 5,589 16,653 16,519 
Total Segments Operating Income $69,929 $58,100 $185,525 $177,623 

The following table presents reconciliations of income from operations for reportable segments to the consolidated income before taxes (in thousands):
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Income from operations for reportable segments$69,929 $58,100 $185,525 $177,623 
Adjustment for:
Amortization of intangible assets5,245 5,866 14,333 15,206 
Corporate expenses25,076 16,378 65,101 53,682 
Income from operations$39,608 $35,856 106,091 108,735 
Interest expense
15,716 12,684 46,644 36,068 
Other expense (income), net
160 1,234 (2,844)522 
Income before income taxes$23,732 $21,938 $62,291 $72,145