DXP Enterprises (DXPE) 10-Q 7 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Oct. 31, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	DXP ENTERPRISES INC
Entity Central Index Key	0001020710
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		17,603,267
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2019

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Statement [Abstract]
Sales	$ 327,178	$ 308,028	$ 971,721	$ 905,191
Cost of sales	234,474	223,958	702,830	659,560
Gross profit	92,704	84,070	268,891	245,631
Selling, general and administrative expenses	70,987	67,257	209,511	197,609
Income from operations	21,717	16,813	59,380	48,022
Other (income) expense, net	(25)	120	127	(1,318)
Interest expense	4,986	4,781	14,911	15,959
Income before income taxes	16,756	11,912	44,342	33,381
Provision for income taxes	3,606	3,550	10,655	8,962
Net income	13,150	8,362	33,687	24,419
Net income (loss) attributable to noncontrolling interest	41	(35)	(172)	(91)
Net income attributable to DXP Enterprises, Inc.	13,109	8,397	33,859	24,510
Preferred stock dividend	23	23	68	68
Net income attributable to common shareholders	13,086	8,374	33,791	24,442
Net income	13,150	8,362	33,687	24,419
Currency translation adjustments	(1,281)	3,390	(718)	1,880
Comprehensive income	$ 11,869	$ 11,752	$ 32,969	$ 26,299
Earnings per share :
Basic (in dollars per share)	$ 0.74	$ 0.48	$ 1.92	$ 1.39
Diluted (in dollars per share)	$ 0.71	$ 0.46	$ 1.84	$ 1.33
Weighted average common shares outstanding :
Basic (in shares)	17,602	17,564	17,588	17,547
Diluted (in shares)	18,442	18,404	18,428	18,387

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash	$ 28,436	$ 40,304
Restricted cash	124	215
Accounts Receivable, net of allowance for doubtful accounts of $9,657 and $10,126	210,098	191,829
Inventories	131,916	114,830
Costs and estimated profits in excess of billings	33,898	32,514
Prepaid expenses and other current assets	6,328	4,938
Federal income taxes receivable	1,518	960
Total current assets	412,318	385,590
Property and equipment, net	58,516	51,330
Goodwill	194,052	194,052
Other intangible assets, net	56,072	67,207
Operating lease ROU assets	67,296	0
Other long-term assets	3,300	1,783
Total assets	791,554	699,962
Current liabilities:
Current maturities of long-term debt	2,500	3,407
Trade accounts payable	83,174	87,407
Accrued wages and benefits	20,242	21,275
Customer advances	4,606	3,223
Billings in excess of costs and estimated profits	7,201	10,696
Short-term operating lease liabilities	17,711	0
Other current liabilities	16,544	17,269
Total current liabilities	151,978	143,277
Long-term debt, net of current maturities and unamortized debt issuance costs	235,576	236,979
Long-term operating lease liabilities	49,602	0
Other long-term liabilities	951	2,819
Deferred income taxes	11,056	8,633
Total long-term liabilities	297,185	248,431
Total liabilities	449,163	391,708
Commitments and contingencies (Note 11)
Shareholders' Equity:
Series A and B preferred stock, $1.00 par value each; 1,000,000 shares authorized each	16	16
Common stock, $0.01 par value, 100,000,000 shares authorized; 17,603,267 and 17,401,297 outstanding	174	174
Additional paid-in capital	157,426	156,190
Retained earnings	203,526	169,735
Accumulated other comprehensive loss	(19,985)	(19,267)
Total DXP Enterprises, Inc. Equity	341,157	306,848
Noncontrolling interest	1,234	1,406
Total Equity	342,391	308,254
Total liabilities and Equity	$ 791,554	$ 699,962

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Accounts receivable, allowance for doubtful accounts	$ 9,657	$ 10,126
Shareholders' Equity:
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	17,603,267	17,401,297
Series A preferred stock
Shareholders' Equity:
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Series B preferred Stock
Shareholders' Equity:
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income attributable to DXP Enterprises, Inc.	$ 33,859	$ 24,510
Less: net loss attributable to non-controlling interest	(172)	(91)
Net income	33,687	24,419
Reconciliation of net income to net cash provided by operating activities:
Depreciation	7,270	7,135
Amortization of intangible assets	11,423	12,575
Write-off of debt issuance costs	0	60
Gain on sale of property and equipment	(9)	(1,318)
Bad debt expense	(75)	2,633
Payment of contingent consideration liability in excess of acquisition-date fair value	(106)	0
Fair value adjustment on contingent consideration	101	0
Amortization of debt issuance costs	1,406	1,337
Stock compensation expense	1,502	2,023
Deferred income taxes	2,337	240
Changes in operating assets and liabilities
Trade accounts receivable	(17,581)	(13,225)
Costs and estimated profits in excess of billings	(1,371)	(11,541)
Inventories	(17,039)	(22,468)
Prepaid expenses and other assets	1,786	(250)
Trade accounts payable and accrued expenses	(6,301)	4,291
Billings in excess of costs and estimated profits	(3,524)	1,320
Other long-term liabilities	(6,021)	2,611
Net cash provided by operating activities	7,485	9,842
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(14,247)	(7,705)
Proceeds from the sale of property and equipment	35	2,546
Acquisition of business, net of cash acquired	0	(10,812)
Net cash used in investing activities	(14,212)	(15,971)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal debt payments	(3,716)	(2,534)
Debt issuance costs	0	(60)
Payment for contingent consideration liability	(1,394)	0
Dividends paid	(68)	(68)
Payment for employee taxes withheld from stock awards	(266)	(332)
Net cash used in financing activities	(5,444)	(2,994)
Effect of foreign currency on cash	213	(66)
Net change in cash and restricted cash	(11,958)	(9,189)
Cash and restricted cash at beginning of period	40,519	25,579
Cash and restricted cash at end of period	$ 28,561	$ 16,390

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands	Total	Common stock	Paid-in capital	Retained earnings	Non controlling interest	Accum other comp loss	Series A preferred stock	Series B preferred stock
Beginning Balance at Dec. 31, 2017	$ 268,546	$ 174	$ 153,086	$ 134,193	$ 568	$ (19,491)	$ 1	$ 15
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred dividends paid	(68)			(68)
Compensation expense for restricted stock	2,023		2,023
Tax related items for share based awards	(332)		(332)
Issuance of shares of common stock	894		894
Currency translation adjustment	1,880					1,880
Net income	24,419			24,510	(91)
Ending Balance at Sep. 30, 2018	297,362	174	155,671	158,635	477	(17,611)	1	15
Beginning Balance at Jun. 30, 2018	285,303	174	155,341	150,261	512	(21,001)	1	15
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred dividends paid	(23)			(23)
Compensation expense for restricted stock	526		526
Tax related items for share based awards	(196)		(196)
Currency translation adjustment	3,390					3,390
Net income	8,362			8,397	(35)
Ending Balance at Sep. 30, 2018	297,362	174	155,671	158,635	477	(17,611)	1	15
Beginning Balance at Dec. 31, 2018	308,254	174	156,190	169,735	1,406	(19,267)	1	15
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred dividends paid	(68)			(68)
Compensation expense for restricted stock	1,502		1,502
Tax related items for share based awards	(266)		(266)
Issuance of shares of common stock	0
Currency translation adjustment	(718)					(718)
Net income	33,687			33,859	(172)
Ending Balance at Sep. 30, 2019	342,391	174	157,426	203,526	1,234	(19,985)	1	15
Beginning Balance at Jun. 30, 2019	330,210	174	157,091	190,440	1,193	(18,704)	1	15
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred dividends paid	(23)			(23)
Compensation expense for restricted stock	473		473
Tax related items for share based awards	(138)		(138)
Issuance of shares of common stock	0
Currency translation adjustment	(1,281)					(1,281)
Net income	13,150			13,109	41
Ending Balance at Sep. 30, 2019	$ 342,391	$ 174	$ 157,426	$ 203,526	$ 1,234	$ (19,985)	$ 1	$ 15

THE COMPANY

THE COMPANY	9 Months Ended
	Sep. 30, 2019
THE COMPANY [Abstract]
THE COMPANY	THE COMPANY DXP Enterprises, Inc. together with its subsidiaries (collectively "DXP," "Company," "us," "we," or "our") was incorporated in Texas on July 26, 1996. DXP Enterprises, Inc. and its subsidiaries are engaged in the business of distributing maintenance, repair and operating ("MRO") products, and service to energy and industrial customers. Additionally, DXP provides integrated, custom pump skid packages, pump remanufacturing and manufactures branded private label pumps to energy and industrial customers. The Company is organized into three business segments: Service Centers ("SC"), Supply Chain Services ("SCS") and Innovative Pumping Solutions ("IPS"). See Note 12 - Segment Reporting for discussion of the business segments.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES	9 Months Ended
	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES Basis of Presentation The Company's financial statements are prepared in accordance with generally accepted accounting principles in the United States of America ("US GAAP"). The accompanying condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries and its variable interest entity ("VIE"). The accompanying unaudited condensed consolidated financial statements have been prepared on substantially the same basis as our annual consolidated financial statements and should be read in conjunction with our annual report on Form 10-K for the year ended December 31, 2018 . For a more complete discussion of our significant accounting policies and business practices, refer to the consolidated annual report on Form 10-K filed with the Securities and Exchange Commission on March 8, 2019. The results of operations for three and nine months ended September 30, 2019 are not necessarily indicative of results expected for the full fiscal year. In the opinion of management, these condensed consolidated financial statements contain all adjustments necessary to present fairly the Company's condensed consolidated statements of operations and comprehensive income for three and nine months ended September 30, 2019 and September 30, 2018 , condensed consolidated balance sheets as of September 30, 2019 and December 31, 2018 , condensed consolidated statements of cash flows for the nine months ended September 30, 2019 and September 30, 2018 , and condensed consolidated statement of equity for three and nine months ended September 30, 2019 and September 30, 2018 . All such adjustments represent normal recurring items. All inter-company accounts and transactions have been eliminated upon consolidation.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	RECENT ACCOUNTING PRONOUNCEMENTS Recently Adopted Accounting Pronouncements Leases. In February 2016, the Financial Accounting Standards Board's ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842) as modified by subsequently issued ASUs 2018-01, 2018-10, 2018-11 and 2018-20. The Company adopted the standard effective January 1, 2019. We have elected to apply the current period transition approach as introduced by ASU 2018-11 for our transition at January 1, 2019 and we have elected to apply several of the practical expedients in conjunction with accounting policy elections. See Note 4 - Leases for further discussion. Accounting Pronouncements Not Yet Adopted Intangibles-Goodwill and Other . In August 2018, the FASB issued ASU No. 2018-15, Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract based on a consensus of the FASB’s Emerging Issues Task Force (EITF) that requires implementation costs incurred by customers in cloud computing arrangements (CCAs) to be deferred and recognized over the term of the arrangement, if those costs would be capitalized by the customer in a software licensing arrangement under the internal-use software guidance in ASC 350-40, “Intangibles-Goodwill and Other-Internal-Use Software”. The ASU does not affect the accounting by cloud service providers, other software vendors or customers’ accounting for software licensing arrangements. The ASU will require companies to recognize deferred implementation costs to expense over the ‘term of the hosting arrangement’. Under the ASU, the term of the hosting arrangement comprises the non-cancellable period of the CCA plus any optional renewal periods that are reasonably certain to be exercised by the customer or for which exercise of the option is controlled by the vendor. The guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. We will adopt the new standard beginning January 1, 2020. We do not anticipate that the new standard will have a material impact on our results of operations. Fair Value Measurement. In August 2018, the FASB issued ASU 2018-13: Fair Value Measurement: Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement which eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. Entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The guidance is effective for all entities for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years, but entities are permitted to early adopt either the entire standard or only the provisions that eliminate or modify the disclosure requirements. The new standard will not have an impact on our results of operations, but it will significantly modify our disclosures around fair value measurements. Financial Instruments – Credit Losses. In June 2016, the FASB issued ASU 2016-13: Financial Instruments – Credit Losses, which replaces the incurred loss impairment methodology in current US GAAP with a methodology that reflects expected credit losses ("CECL"). The update is intended to provide financial statement users with more useful information about expected credit losses. We do not currently hold most of the financial instruments contemplated by the new standard, with the exception of trade receivables. CECL will become the single model to measure impairment on financial assets measured at amortized cost, which include trade receivables. Therefore, consistent with other types of financial assets measured at amortized cost, estimates of expected credit losses on trade receivables over their contractual life will be required to be recorded at inception, based on historical information, current conditions, and reasonable and supportable forecasts. Currently, our reserve methodology for trade receivables is based on matrices in which historical loss percentages are applied to respective aging categories. CECL will require us to use a forward-looking methodology that incorporates lifetime expected credit losses. While our current reserving matrices may still be used under CECL, historical loss data will need to be combined with reasonable and supportable forecasts of future losses to determine estimated credit losses. The most visible impact of CECL will therefore be that receivables that are either current or not yet due, which today do not generally have a reserve, will have an allowance for expected credit losses. The CECL model does not prescribe a specific methodology for developing a reasonable and supportable forecast, nor the duration of the period that losses can be forecast, nor the precision required to support the estimate. As a result, the determination of the reasonable and supportable forecast period is a judgment to be made in estimating the overall expected credit loss. Although the CECL model requires entities to perform this new evaluation for trade receivables, we generally do not expect to see a significant change in the impairment losses recognized on our trade receivables given their short-term nature. The amended guidance is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. We will adopt the new guidance beginning January 1, 2020.

LEASES

LEASES	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
LEASES	LEASES In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) which was modified by subsequently issued ASUs 2018-01, 2018-10, 2018-11 and 2018-20. The update requires organizations that lease assets ("lessees") to recognize the assets and liabilities of the rights and obligations created by leases with terms of more than 12 months. The recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee remains dependent on its classification as a finance or operating lease. The criteria for determining whether a lease is a finance or operating lease was not significantly changed by this ASU. The ASU also requires additional disclosure of the amount, timing, and uncertainty of cash flows arising from leases, including qualitative and quantitative requirements. This pronouncement was effective for financial statements issued for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption was permitted. In July 2018, the FASB issued ASU No. 2018-11, Leases: Targeted Improvements (Topic 842). ASU 2018-11 provided additional relief in the comparative reporting requirements for initial adoption of ASC 842. Prior to ASU 2018-11, a modified retrospective transition was required for financing or operating leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements. ASU 2018-11 provided an additional transition method to the existing transition method by allowing entities to initially apply the new leases standard at the adoption date (such as January 1, 2019, for calendar year-end public business entities) and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption without adjustment to the financial statements for periods prior to adoption. The Company adopted the standard effective January 1, 2019. We elected to apply the current period transition approach as introduced by ASU 2018-11 for our transition at January 1, 2019 and we elected to apply the following practical expedients and accounting policy decisions. We elected a package of transition expedients that allowed us to forgo reassessing certain conclusions reached under ASC 840 which must be elected together. All expedients in this package were applied together for all leases that commenced before the effective date, January 1, 2019, of ASC 842. As a result, in transitioning to ASC 842, for existing leases as of January 1,2019, we continued to use judgments made under ASC 840 related to embedded leases, lease classification and accounting for initial direct costs. We generally have four classes of leased assets : Real Estate related properties (such as office space, warehouses, distribution centers and land), Automobiles, Office Equipment and Manufacturing Equipment and do not utilize finance leases. In addition, we have chosen, as an accounting policy election by class of underlying asset, not to separate nonlease components from the associated lease for all of our leased asset classes, except for Real Estate related leases. As a result, for classes of Automobiles, Office Equipment and Manufacturing Equipment, we account for each separate lease component and the nonlease components associated with that lease as a single lease component. For short-term leases as defined under ASC 842, we elected the short-term lease exception pursuant to ASC 842 to all classes of our leased assets. We do not recognize a lease liability or a right of use asset on our consolidated balance sheets for our leased assets with an original lease term of twelve months or less. Instead, we recognize the lease payments in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred and disclose in the notes to the consolidated financial statements our short-term lease expense. The new standard did have a material impact on our consolidated balance sheets related to recording right-of-use (ROU) assets and the corresponding lease liabilities for our inventory of operating leases. In January 2019, we recorded a ROU Asset and total lease liability obligations of approximately $72 million each. The new standard did not have a material impact on our consolidated statements of operations and had no impact on cash flows. We lease office space, warehouses, land, automobiles, and office and manufacturing equipment. All of our leases are classified as operating leases. Our leases have remaining lease terms of 1 month to 12 years, some of which include options to extend the leases for up to 14 years. The exercise of lease renewal options is at our sole discretion. Our lease agreements do not include options to purchase the leased property. The lease expenses were as follows (in thousands) : Three Months Ended September 30, Nine Months Ended September 30, Lease cost Classification 2019 Short-term lease expense SG&A expenses (*) 309 870 Other operating lease cost SG&A expenses (*) 6,081 17,957 Total operating lease cost $ 6,390 $ 18,827 (*) Manufacturing equipment and some vehicle rental expenses are included in the cost of sales. Supplemental cash flow information related to leases was as follows (in thousands) : Nine Months Ended September 30, Lease 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 13,941 Right-of-use assets obtained in exchange for lease liabilities Operating leases 8,889 Supplemental balance sheet information related to leases was as follows (in thousand) : Lease Classification September 30, 2019 Impact of ASC 842 Transition Assets Operating Operating lease right-of-use assets 67,296 72,679 Liabilities Current operating Short-term operating lease liabilities 17,711 18,762 Non-current operating Long-term operating lease liabilities 49,602 53,654 Total operating lease liabilities $ 67,313 $ 72,416 Note: As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments for lease commenced on or after January 1, 2019. We used our incremental borrowing rate as of the transition date of January 1, 2019 for operating leases that commenced prior to transition. Maturities of lease liabilities were as follows (in thousands) : Year Ending December 31, Operating leases (*) 2019 (excluding 9 months ended 9/30/2019) 5,880 2020 20,841 2021 17,530 2022 13,315 2023 8,170 Thereafter 14,218 Total lease payments $ 79,954 Less: imputed interest 12,641 Present value of lease liabilities $ 67,313 (*) Operating lease payments exclude $1.2 million of legally binding minimum lease payments for leases signed but not yet commenced. Contractual obligations related to operating leases as of December 31, 2018, under ASC 840 (in thousands) : Payments due by period (in thousands) Less than 1 year 1-3 years 3-5 years More than 5 years Total Operating lease obligations $ 22,096 $ 33,825 $ 18,379 $ 11,022 $ 85,322 Lease term and discount rate Nine Months Ended September 30, 2019 Weighted average remaining lease term (years) Operating lease 4.8 Weighted average discount rate Operating lease 7.3% For the nine months ended September 30, 2019 , the Company paid approximately $1.9 million in lease expenses to entities controlled by the Company's Chief Executive Officer, David Little and family.

FAIR VALUE OF FINANCIAL ASSETS

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES	9 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES	FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES Authoritative guidance for financial assets and liabilities measured on a recurring basis applies to all financial assets and financial liabilities that are being measured and reported on a fair value basis. Fair value, as defined in the authoritative guidance, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative guidance affects the fair value measurement of an investment with quoted market prices in an active market for identical instruments, which must be classified in one of the following categories: Level 1 Inputs Level 1 inputs come from quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 Inputs Level 2 inputs are other than quoted prices that are observable for an asset or liability. These inputs include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from, or corroborated by, observable market data by correlation or other means. Level 3 Inputs Level 3 inputs are unobservable inputs for the asset or liability which require the Company's own assumptions. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. Our acquisitions may include contingent consideration as part of the purchase price. The fair value of the contingent consideration is estimated as of the acquisition date based on the present value of the contingent payments to be made using a weighted probability of possible payments. The unobservable inputs used in the determination of the fair value of the contingent consideration include managements assumptions about the likelihood of payment based on the established benchmarks and discount rates based on an internal rate of return analysis. The fair value measurement includes inputs that are Level 3 classified as discussed above, as they are not observable in the market. Should actual results increase or decrease as compared to the assumption used in our analysis, the fair value of the contingent consideration obligations will increase or decrease, up to the contracted limit, as applicable. Changes in the fair value of the contingent earn-out consideration are measured each reporting period and reflected in our results of operations. As of September 30, 2019 , we recorded a $2.9 million liability for contingent consideration associated with the acquisition of Application Specialties Inc. ("ASI") in other current and long-term liabilities. For the Company's assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), the following table provides a reconciliation of the beginning and ending balances for each category therein, and gains or losses recognized during the nine months ended September 30, 2019 : Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Contingent Liability for Accrued Consideration (in thousands) Beginning balance at December 31, 2018 $ 4,319 Acquisitions and settlements Acquisitions — Settlements (1,500 ) Total remeasurement adjustments: Changes in fair value recorded in other (income) expense, net 101 *Ending Balance at September 30, 2019 $ 2,920 The amount of total losses for the quarter included in earnings or changes to net assets, attributable to changes in unrealized losses relating to liabilities still held at September 30, 2019. $ 101 * Included in other current and long-term liabilities Quantitative Information about Level 3 Fair Value Measurements The significant unobservable inputs used in the fair value measurement of the Company's contingent consideration liabilities designated as Level 3 are as follows: (in thousands, unaudited) Fair value at September 30, 2019 Valuation Technique Significant Unobservable Inputs Contingent consideration: (ASI acquisition) $ 2,920 Discounted cash flow Annualized EBITDA and probability of achievement Sensitivity to Changes in Significant Unobservable Inputs As presented in the table above, the significant unobservable inputs used in the fair value measurement of contingent consideration related to the acquisition of ASI are annualized earnings before interest, tax, deprecation and amortization ("EBITDA") forecasts developed by the Company's management and the probability of achievement of those EBITDA results. The discount rate used in the calculation was 7.3% . Significant increases (decreases) in these unobservable inputs in isolation would result in a significantly (lower) higher fair value measurement. Other financial instruments not measured at fair value on the Company's unaudited condensed consolidated balance sheet at September 30, 2019 and December 31, 2018 , but which require disclosure of their fair values include: cash and cash equivalents, trade accounts receivable, trade accounts payable and accrued expenses, accrued payroll and related benefits, and the revolving line of credit and term loan debt under our syndicated credit agreement facility. The Company believes that the estimated fair value of such instruments at September 30, 2019 and December 31, 2018 approximates their carrying value as reported on the unaudited condensed consolidated balance sheets.

INVENTORIES

INVENTORIES	9 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES The carrying values of inventories are as follows ( in thousands ): September 30, 2019 December 31, 2018 Finished goods $ 122,102 $ 110,182 Work in process 22,509 17,344 Obsolescence reserve (12,695 ) (12,696 ) Inventories $ 131,916 $ 114,830

COSTS AND ESTIMATED PROFITS ON

COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS	9 Months Ended
	Sep. 30, 2019
Contractors [Abstract]
COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS	COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS Under our customized pump production contracts in our IPS segment, amounts are billed as work progresses in accordance with agreed-upon contractual terms, upon various measures of performance, including achievement of certain milestones, completion of specified units, or completion of a contract. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets. Our contract assets are presented as “cost and estimated profits in excess of billings” on our Condensed Consolidated Balance Sheets. However, we sometimes receive advances or deposits from our customers before revenue is recognized, resulting in contract liabilities that are presented as “Billings in excess of costs and estimated profits” on our Condensed Consolidated Balance Sheets. Costs and estimated profits on uncompleted contracts and related amounts billed were as follows ( in thousands ): September 30, 2019 December 31, 2018 Costs incurred on uncompleted contracts $ 52,506 $ 53,595 Estimated profits, thereon 8,932 6,847 Total 61,438 60,442 Less: billings to date 34,743 38,662 Net $ 26,695 $ 21,780 Such amounts were included in the accompanying Condensed Consolidated Balance Sheets for September 30, 2019 and December 31, 2018 under the following captions ( in thousands ): September 30, 2019 December 31, 2018 Costs and estimated profits in excess of billings $ 33,898 $ 32,514 Billings in excess of costs and estimated profits (7,201 ) (10,696 ) Translation adjustment (2 ) (38 ) Net $ 26,695 $ 21,780 During the nine months ended September 30, 2019 , $10.5 million of the balances that were previously classified as contract liabilities at the beginning of the period shipped. Contract assets and liability changes were primarily due to normal activity and timing differences between our performance and customer payments.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Our effective tax rate from continuing operations was a tax expense of 24.0% for the nine months ended September 30, 2019 compared to a tax expense of 26.9% for the nine months ended September 30, 2018 . Compared to the U.S. statutory rate for the nine months ended September 30, 2019 , the effective tax rate was increased by state taxes, foreign taxes and nondeductible expenses partially offset by research and development tax credits, other tax credits, and a favorable statutory tax rate change in a foreign jurisdiction. Compared to the U.S. statutory rate for the nine months ended September 30, 2018 , the effective tax rate was increased by state taxes, foreign taxes and nondeductible expenses partially offset by research and development tax credits and other tax credits. To the extent penalties and interest would be assessed on any underpayment of income tax, such accrued amounts would be classified as a component of income tax provision (benefit) in the financial statements consistent with the Company’s policy.

LONG-TERM DEBT

LONG-TERM DEBT	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
LONG-TERM DEBT	LONG-TERM DEBT The components of the Company's long-term debt consisted of the following ( in thousands ): September 30, 2019 December 31, 2018 Carrying Value (1) Fair Value Carrying Value (1) Fair Value ABL Revolver $ — $ — $ — $ — Term Loan B 245,000 246,225 246,875 245,949 Promissory note payable (2) — — 1,841 1,841 Total long-term debt 245,000 246,225 248,716 247,790 Less: current portion (2,500 ) (2,513 ) (3,407 ) (3,398 ) Long-term debt less current maturities $ 242,500 $ 243,712 $ 245,309 $ 244,392 (1) Carrying value amounts do not include unamortized debt issuance costs of $6.9 million and $8.3 million for September 30, 2019 and December 31, 2018 , respectively . (2) Note payable in monthly installments at 2.9% through January 2021, collateralized by equipment. In August 2019, the Company made a cash payment of $1.3 million to repay the outstanding promissory note payable. The fair value measurements used by the Company are considered Level 2 inputs, as defined in the fair value hierarchy. The fair value estimates were based on quoted prices for identical or similar securities. The Company was in compliance with all financial covenants under the ABL Revolver and Term Loan B Agreements as of September 30, 2019 .

EARNINGS PER SHARE DATA

EARNINGS PER SHARE DATA	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
EARNINGS PER SHARE DATA	EARNINGS PER SHARE DATA Basic earnings per share is computed based on weighted average shares outstanding and excludes dilutive securities. Diluted earnings per share is computed including the impacts of all potentially dilutive securities. The following table sets forth the computation of basic and diluted earnings per share for the periods indicated ( in thousands, except per share data ): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Basic: Weighted average shares outstanding 17,602 17,564 17,588 17,547 Net income attributable to DXP Enterprises, Inc. $ 13,109 $ 8,397 $ 33,859 $ 24,510 Convertible preferred stock dividend 23 23 68 68 Net income attributable to common shareholders $ 13,086 $ 8,374 $ 33,791 $ 24,442 Per share amount $ 0.74 $ 0.48 $ 1.92 $ 1.39 Diluted: Weighted average shares outstanding 17,602 17,564 17,588 17,547 Assumed conversion of convertible preferred stock 840 840 840 840 Total dilutive shares 18,442 18,404 18,428 18,387 Net income attributable to common shareholders $ 13,086 $ 8,374 $ 33,791 $ 24,442 Convertible preferred stock dividend 23 23 68 68 Net income attributable to DXP Enterprises, Inc. $ 13,109 $ 8,397 $ 33,859 $ 24,510 Per share amount $ 0.71 $ 0.46 $ 1.84 $ 1.33

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES From time to time, the Company is a party to various legal proceedings arising in the ordinary course of business. While DXP is unable to predict the outcome of these lawsuits, it believes that the ultimate resolution will not have, either individually or in the aggregate, a material adverse effect on DXP's consolidated financial position, cash flows, or results of operations.

SEGMENT REPORTING

SEGMENT REPORTING	9 Months Ended
	Sep. 30, 2019
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 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 excluding amortization ( in thousands ): Three Months Ended September 30, 2019 2018 SC IPS SCS Total SC IPS SCS Total Product sales (recognized at a point in time) $ 178,841 $ — $ 46,998 $ 225,839 $ 173,022 $ — $ 40,210 $ 213,232 Inventory management services (recognized over contract life) — — 4,284 $ 4,284 — — 3,393 $ 3,393 Staffing services (day-rate basis) 14,886 — — $ 14,886 14,741 — — $ 14,741 Customized pump production (recognized over time) — 82,169 — $ 82,169 — 76,662 — $ 76,662 Total Revenue $ 193,727 $ 82,169 $ 51,282 $ 327,178 $ 187,763 $ 76,662 $ 43,603 $ 308,028 Income from operations $ 25,071 $ 10,097 $ 3,110 $ 38,278 $ 20,590 $ 8,773 $ 3,886 $ 33,249 Nine Months Ended September 30, 2019 2018 SC IPS SCS Total SC IPS SCS Total Product sales (recognized at a point in time) $ 534,953 $ — $ 141,768 $ 676,721 $ 509,756 $ — $ 120,040 $ 629,796 Inventory management services (recognized over contract life) — — 12,149 $ 12,149 — — 9,890 $ 9,890 Staffing services (day-rate basis) 44,931 — — $ 44,931 46,944 — — $ 46,944 Customized pump production (recognized over time) — 237,920 — $ 237,920 — 218,561 — $ 218,561 Total Revenue $ 579,884 $ 237,920 $ 153,917 $ 971,721 $ 556,700 $ 218,561 $ 129,930 $ 905,191 Income from operations $ 67,281 $ 28,924 $ 10,980 $ 107,185 58,353 24,109 12,196 $ 94,658 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, 2019 2018 2019 2018 Operating income for reportable segments $ 38,278 $ 33,249 $ 107,185 $ 94,658 Adjustment for: Amortization of intangible assets 3,806 4,098 11,424 12,575 Corporate expenses 12,755 12,338 36,381 34,061 Income from operations $ 21,717 $ 16,813 59,380 48,022 Interest expense 4,986 4,781 14,911 15,959 Other income, net (25 ) 120 127 (1,318 ) Income before income taxes $ 16,756 $ 11,912 $ 44,342 $ 33,381 The Company's identifiable assets by segments are as follows (in thousands) : As of September 30, 2019 As of December 31, 2018 Service Centers $ 458,975 $ 402,944 Innovative Pumping Solutions 225,361 188,765 Supply Chain Services 60,342 53,517 Total Identifiable Assets $ 744,678 $ 645,226 The Company had identifiable assets at Corporate of $46.9 million and $54.7 million , as of September 30, 2019 and December 31, 2018 .

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS We have evaluated subsequent events through the date the interim Condensed Consolidated Financial Statements were issued. There were no subsequent events that required recognition or disclosure unless elsewhere identified in this report.

RECENT ACCOUNTING PRONOUNCEME_2

RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The Company's financial statements are prepared in accordance with generally accepted accounting principles in the United States of America ("US GAAP"). The accompanying condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries and its variable interest entity ("VIE"). The accompanying unaudited condensed consolidated financial statements have been prepared on substantially the same basis as our annual consolidated financial statements and should be read in conjunction with our annual report on Form 10-K for the year ended December 31, 2018 . For a more complete discussion of our significant accounting policies and business practices, refer to the consolidated annual report on Form 10-K filed with the Securities and Exchange Commission on March 8, 2019. The results of operations for three and nine months ended September 30, 2019 are not necessarily indicative of results expected for the full fiscal year. In the opinion of management, these condensed consolidated financial statements contain all adjustments necessary to present fairly the Company's condensed consolidated statements of operations and comprehensive income for three and nine months ended September 30, 2019 and September 30, 2018 , condensed consolidated balance sheets as of September 30, 2019 and December 31, 2018 , condensed consolidated statements of cash flows for the nine months ended September 30, 2019 and September 30, 2018 , and condensed consolidated statement of equity for three and nine months ended September 30, 2019 and September 30, 2018 . All such adjustments represent normal recurring items.
Consolidation	All inter-company accounts and transactions have been eliminated upon consolidation.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements Leases. In February 2016, the Financial Accounting Standards Board's ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842) as modified by subsequently issued ASUs 2018-01, 2018-10, 2018-11 and 2018-20. The Company adopted the standard effective January 1, 2019. We have elected to apply the current period transition approach as introduced by ASU 2018-11 for our transition at January 1, 2019 and we have elected to apply several of the practical expedients in conjunction with accounting policy elections.
Accounting Pronouncements Not Yet Adopted	Accounting Pronouncements Not Yet Adopted Intangibles-Goodwill and Other . In August 2018, the FASB issued ASU No. 2018-15, Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract based on a consensus of the FASB’s Emerging Issues Task Force (EITF) that requires implementation costs incurred by customers in cloud computing arrangements (CCAs) to be deferred and recognized over the term of the arrangement, if those costs would be capitalized by the customer in a software licensing arrangement under the internal-use software guidance in ASC 350-40, “Intangibles-Goodwill and Other-Internal-Use Software”. The ASU does not affect the accounting by cloud service providers, other software vendors or customers’ accounting for software licensing arrangements. The ASU will require companies to recognize deferred implementation costs to expense over the ‘term of the hosting arrangement’. Under the ASU, the term of the hosting arrangement comprises the non-cancellable period of the CCA plus any optional renewal periods that are reasonably certain to be exercised by the customer or for which exercise of the option is controlled by the vendor. The guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. We will adopt the new standard beginning January 1, 2020. We do not anticipate that the new standard will have a material impact on our results of operations. Fair Value Measurement. In August 2018, the FASB issued ASU 2018-13: Fair Value Measurement: Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement which eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. Entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The guidance is effective for all entities for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years, but entities are permitted to early adopt either the entire standard or only the provisions that eliminate or modify the disclosure requirements. The new standard will not have an impact on our results of operations, but it will significantly modify our disclosures around fair value measurements. Financial Instruments – Credit Losses. In June 2016, the FASB issued ASU 2016-13: Financial Instruments – Credit Losses, which replaces the incurred loss impairment methodology in current US GAAP with a methodology that reflects expected credit losses ("CECL"). The update is intended to provide financial statement users with more useful information about expected credit losses. We do not currently hold most of the financial instruments contemplated by the new standard, with the exception of trade receivables. CECL will become the single model to measure impairment on financial assets measured at amortized cost, which include trade receivables. Therefore, consistent with other types of financial assets measured at amortized cost, estimates of expected credit losses on trade receivables over their contractual life will be required to be recorded at inception, based on historical information, current conditions, and reasonable and supportable forecasts. Currently, our reserve methodology for trade receivables is based on matrices in which historical loss percentages are applied to respective aging categories. CECL will require us to use a forward-looking methodology that incorporates lifetime expected credit losses. While our current reserving matrices may still be used under CECL, historical loss data will need to be combined with reasonable and supportable forecasts of future losses to determine estimated credit losses. The most visible impact of CECL will therefore be that receivables that are either current or not yet due, which today do not generally have a reserve, will have an allowance for expected credit losses. The CECL model does not prescribe a specific methodology for developing a reasonable and supportable forecast, nor the duration of the period that losses can be forecast, nor the precision required to support the estimate. As a result, the determination of the reasonable and supportable forecast period is a judgment to be made in estimating the overall expected credit loss. Although the CECL model requires entities to perform this new evaluation for trade receivables, we generally do not expect to see a significant change in the impairment losses recognized on our trade receivables given their short-term nature. The amended guidance is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. We will adopt the new guidance beginning January 1, 2020.
Leases	LEASES In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) which was modified by subsequently issued ASUs 2018-01, 2018-10, 2018-11 and 2018-20. The update requires organizations that lease assets ("lessees") to recognize the assets and liabilities of the rights and obligations created by leases with terms of more than 12 months. The recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee remains dependent on its classification as a finance or operating lease. The criteria for determining whether a lease is a finance or operating lease was not significantly changed by this ASU. The ASU also requires additional disclosure of the amount, timing, and uncertainty of cash flows arising from leases, including qualitative and quantitative requirements. This pronouncement was effective for financial statements issued for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption was permitted. In July 2018, the FASB issued ASU No. 2018-11, Leases: Targeted Improvements (Topic 842). ASU 2018-11 provided additional relief in the comparative reporting requirements for initial adoption of ASC 842. Prior to ASU 2018-11, a modified retrospective transition was required for financing or operating leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements. ASU 2018-11 provided an additional transition method to the existing transition method by allowing entities to initially apply the new leases standard at the adoption date (such as January 1, 2019, for calendar year-end public business entities) and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption without adjustment to the financial statements for periods prior to adoption. The Company adopted the standard effective January 1, 2019. We elected to apply the current period transition approach as introduced by ASU 2018-11 for our transition at January 1, 2019 and we elected to apply the following practical expedients and accounting policy decisions. We elected a package of transition expedients that allowed us to forgo reassessing certain conclusions reached under ASC 840 which must be elected together. All expedients in this package were applied together for all leases that commenced before the effective date, January 1, 2019, of ASC 842. As a result, in transitioning to ASC 842, for existing leases as of January 1,2019, we continued to use judgments made under ASC 840 related to embedded leases, lease classification and accounting for initial direct costs. We generally have four classes of leased assets : Real Estate related properties (such as office space, warehouses, distribution centers and land), Automobiles, Office Equipment and Manufacturing Equipment and do not utilize finance leases. In addition, we have chosen, as an accounting policy election by class of underlying asset, not to separate nonlease components from the associated lease for all of our leased asset classes, except for Real Estate related leases. As a result, for classes of Automobiles, Office Equipment and Manufacturing Equipment, we account for each separate lease component and the nonlease components associated with that lease as a single lease component. For short-term leases as defined under ASC 842, we elected the short-term lease exception pursuant to ASC 842 to all classes of our leased assets. We do not recognize a lease liability or a right of use asset on our consolidated balance sheets for our leased assets with an original lease term of twelve months or less. Instead, we recognize the lease payments in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred and disclose in the notes to the consolidated financial statements our short-term lease expense. The new standard did have a material impact on our consolidated balance sheets related to recording right-of-use (ROU) assets and the corresponding lease liabilities for our inventory of operating leases. In January 2019, we recorded a ROU Asset and total lease liability obligations of approximately $72 million each. The new standard did not have a material impact on our consolidated statements of operations and had no impact on cash flows. We lease office space, warehouses, land, automobiles, and office and manufacturing equipment. All of our leases are classified as operating leases. Our leases have remaining lease terms of 1 month to 12 years, some of which include options to extend the leases for up to 14 years. The exercise of lease renewal options is at our sole discretion. Our lease agreements do not include options to purchase the leased property.
Fair Value of Financial Assets and Liabilities	FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES Authoritative guidance for financial assets and liabilities measured on a recurring basis applies to all financial assets and financial liabilities that are being measured and reported on a fair value basis. Fair value, as defined in the authoritative guidance, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative guidance affects the fair value measurement of an investment with quoted market prices in an active market for identical instruments, which must be classified in one of the following categories: Level 1 Inputs Level 1 inputs come from quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 Inputs Level 2 inputs are other than quoted prices that are observable for an asset or liability. These inputs include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from, or corroborated by, observable market data by correlation or other means. Level 3 Inputs Level 3 inputs are unobservable inputs for the asset or liability which require the Company's own assumptions. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. Our acquisitions may include contingent consideration as part of the purchase price. The fair value of the contingent consideration is estimated as of the acquisition date based on the present value of the contingent payments to be made using a weighted probability of possible payments. The unobservable inputs used in the determination of the fair value of the contingent consideration include managements assumptions about the likelihood of payment based on the established benchmarks and discount rates based on an internal rate of return analysis. The fair value measurement includes inputs that are Level 3 classified as discussed above, as they are not observable in the market. Should actual results increase or decrease as compared to the assumption used in our analysis, the fair value of the contingent consideration obligations will increase or decrease, up to the contracted limit, as applicable. Changes in the fair value of the contingent earn-out consideration are measured each reporting period and reflected in our results of operations.

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Schedule of Lease Expenses, Supplemental Cash Flow and Balance Sheet Information and Lease Term and Discount Rate	The lease expenses were as follows (in thousands) : Three Months Ended September 30, Nine Months Ended September 30, Lease cost Classification 2019 Short-term lease expense SG&A expenses (*) 309 870 Other operating lease cost SG&A expenses (*) 6,081 17,957 Total operating lease cost $ 6,390 $ 18,827 (*) Manufacturing equipment and some vehicle rental expenses are included in the cost of sales. Supplemental cash flow information related to leases was as follows (in thousands) : Nine Months Ended September 30, Lease 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 13,941 Right-of-use assets obtained in exchange for lease liabilities Operating leases 8,889 Lease term and discount rate Nine Months Ended September 30, 2019 Weighted average remaining lease term (years) Operating lease 4.8 Weighted average discount rate Operating lease 7.3%
Schedule of Supplemental Balance Sheet Information	Supplemental balance sheet information related to leases was as follows (in thousand) : Lease Classification September 30, 2019 Impact of ASC 842 Transition Assets Operating Operating lease right-of-use assets 67,296 72,679 Liabilities Current operating Short-term operating lease liabilities 17,711 18,762 Non-current operating Long-term operating lease liabilities 49,602 53,654 Total operating lease liabilities $ 67,313 $ 72,416 Note: As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments for lease commenced on or after January 1, 2019. We used our incremental borrowing rate as of the transition date of January 1, 2019 for operating leases that commenced prior to transition.
Schedule of Maturity of Lease Liabilities	Maturities of lease liabilities were as follows (in thousands) : Year Ending December 31, Operating leases (*) 2019 (excluding 9 months ended 9/30/2019) 5,880 2020 20,841 2021 17,530 2022 13,315 2023 8,170 Thereafter 14,218 Total lease payments $ 79,954 Less: imputed interest 12,641 Present value of lease liabilities $ 67,313 (*) Operating lease payments exclude $1.2 million of legally binding minimum lease payments for leases signed but not yet commenced.
Schedule of Contractual Obligations Related to Operating Leases Under ASC 840	Contractual obligations related to operating leases as of December 31, 2018, under ASC 840 (in thousands) : Payments due by period (in thousands) Less than 1 year 1-3 years 3-5 years More than 5 years Total Operating lease obligations $ 22,096 $ 33,825 $ 18,379 $ 11,022 $ 85,322

FAIR VALUE OF FINANCIAL ASSET_2

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Schedule of Reconciliation of the Beginning and Ending Balance and Gains or Losses Recognized	For the Company's assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), the following table provides a reconciliation of the beginning and ending balances for each category therein, and gains or losses recognized during the nine months ended September 30, 2019 : Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Contingent Liability for Accrued Consideration (in thousands) Beginning balance at December 31, 2018 $ 4,319 Acquisitions and settlements Acquisitions — Settlements (1,500 ) Total remeasurement adjustments: Changes in fair value recorded in other (income) expense, net 101 *Ending Balance at September 30, 2019 $ 2,920 The amount of total losses for the quarter included in earnings or changes to net assets, attributable to changes in unrealized losses relating to liabilities still held at September 30, 2019. $ 101 * Included in other current and long-term liabilities
Schedule of Quantitative Information About Level 3 Fair Value Measurements	The significant unobservable inputs used in the fair value measurement of the Company's contingent consideration liabilities designated as Level 3 are as follows: (in thousands, unaudited) Fair value at September 30, 2019 Valuation Technique Significant Unobservable Inputs Contingent consideration: (ASI acquisition) $ 2,920 Discounted cash flow Annualized EBITDA and probability of achievement

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
Schedule of Carrying Values of Inventories	The carrying values of inventories are as follows ( in thousands ): September 30, 2019 December 31, 2018 Finished goods $ 122,102 $ 110,182 Work in process 22,509 17,344 Obsolescence reserve (12,695 ) (12,696 ) Inventories $ 131,916 $ 114,830

COSTS AND ESTIMATED PROFITS O_2

COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS (Tables)	9 Months Ended
	Sep. 30, 2019
Contractors [Abstract]
Schedule of Costs and Estimated Profits on Uncompleted Contracts	Costs and estimated profits on uncompleted contracts and related amounts billed were as follows ( in thousands ): September 30, 2019 December 31, 2018 Costs incurred on uncompleted contracts $ 52,506 $ 53,595 Estimated profits, thereon 8,932 6,847 Total 61,438 60,442 Less: billings to date 34,743 38,662 Net $ 26,695 $ 21,780
Schedule of Costs and Estimated Earnings on Uncompleted Contracts Included in Condensed Consolidated Balance Sheets	Such amounts were included in the accompanying Condensed Consolidated Balance Sheets for September 30, 2019 and December 31, 2018 under the following captions ( in thousands ): September 30, 2019 December 31, 2018 Costs and estimated profits in excess of billings $ 33,898 $ 32,514 Billings in excess of costs and estimated profits (7,201 ) (10,696 ) Translation adjustment (2 ) (38 ) Net $ 26,695 $ 21,780

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Schedule of Components of Company's Long-term Debt	The components of the Company's long-term debt consisted of the following ( in thousands ): September 30, 2019 December 31, 2018 Carrying Value (1) Fair Value Carrying Value (1) Fair Value ABL Revolver $ — $ — $ — $ — Term Loan B 245,000 246,225 246,875 245,949 Promissory note payable (2) — — 1,841 1,841 Total long-term debt 245,000 246,225 248,716 247,790 Less: current portion (2,500 ) (2,513 ) (3,407 ) (3,398 ) Long-term debt less current maturities $ 242,500 $ 243,712 $ 245,309 $ 244,392 (1) Carrying value amounts do not include unamortized debt issuance costs of $6.9 million and $8.3 million for September 30, 2019 and December 31, 2018 , respectively . (2) Note payable in monthly installments at 2.9% through January 2021, collateralized by equipment. In August 2019, the Company made a cash payment of $1.3 million to repay the outstanding promissory note payable.

EARNINGS PER SHARE DATA (Tables

EARNINGS PER SHARE DATA (Tables)	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Schedule of Computation of Basic and Diluted Earnings per Share	The following table sets forth the computation of basic and diluted earnings per share for the periods indicated ( in thousands, except per share data ): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Basic: Weighted average shares outstanding 17,602 17,564 17,588 17,547 Net income attributable to DXP Enterprises, Inc. $ 13,109 $ 8,397 $ 33,859 $ 24,510 Convertible preferred stock dividend 23 23 68 68 Net income attributable to common shareholders $ 13,086 $ 8,374 $ 33,791 $ 24,442 Per share amount $ 0.74 $ 0.48 $ 1.92 $ 1.39 Diluted: Weighted average shares outstanding 17,602 17,564 17,588 17,547 Assumed conversion of convertible preferred stock 840 840 840 840 Total dilutive shares 18,442 18,404 18,428 18,387 Net income attributable to common shareholders $ 13,086 $ 8,374 $ 33,791 $ 24,442 Convertible preferred stock dividend 23 23 68 68 Net income attributable to DXP Enterprises, Inc. $ 13,109 $ 8,397 $ 33,859 $ 24,510 Per share amount $ 0.71 $ 0.46 $ 1.84 $ 1.33

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	9 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Schedule of Financial Information Regarding Company's Segments	The following table sets out financial information related to the Company's segments excluding amortization ( in thousands ): Three Months Ended September 30, 2019 2018 SC IPS SCS Total SC IPS SCS Total Product sales (recognized at a point in time) $ 178,841 $ — $ 46,998 $ 225,839 $ 173,022 $ — $ 40,210 $ 213,232 Inventory management services (recognized over contract life) — — 4,284 $ 4,284 — — 3,393 $ 3,393 Staffing services (day-rate basis) 14,886 — — $ 14,886 14,741 — — $ 14,741 Customized pump production (recognized over time) — 82,169 — $ 82,169 — 76,662 — $ 76,662 Total Revenue $ 193,727 $ 82,169 $ 51,282 $ 327,178 $ 187,763 $ 76,662 $ 43,603 $ 308,028 Income from operations $ 25,071 $ 10,097 $ 3,110 $ 38,278 $ 20,590 $ 8,773 $ 3,886 $ 33,249 Nine Months Ended September 30, 2019 2018 SC IPS SCS Total SC IPS SCS Total Product sales (recognized at a point in time) $ 534,953 $ — $ 141,768 $ 676,721 $ 509,756 $ — $ 120,040 $ 629,796 Inventory management services (recognized over contract life) — — 12,149 $ 12,149 — — 9,890 $ 9,890 Staffing services (day-rate basis) 44,931 — — $ 44,931 46,944 — — $ 46,944 Customized pump production (recognized over time) — 237,920 — $ 237,920 — 218,561 — $ 218,561 Total Revenue $ 579,884 $ 237,920 $ 153,917 $ 971,721 $ 556,700 $ 218,561 $ 129,930 $ 905,191 Income from operations $ 67,281 $ 28,924 $ 10,980 $ 107,185 58,353 24,109 12,196 $ 94,658
Schedule of Reconciliation of Operating Income for Reportable Segments to Consolidated Income Before Taxes	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, 2019 2018 2019 2018 Operating income for reportable segments $ 38,278 $ 33,249 $ 107,185 $ 94,658 Adjustment for: Amortization of intangible assets 3,806 4,098 11,424 12,575 Corporate expenses 12,755 12,338 36,381 34,061 Income from operations $ 21,717 $ 16,813 59,380 48,022 Interest expense 4,986 4,781 14,911 15,959 Other income, net (25 ) 120 127 (1,318 ) Income before income taxes $ 16,756 $ 11,912 $ 44,342 $ 33,381
Schedule of Company's Identifiable Assets by Segments	The Company's identifiable assets by segments are as follows (in thousands) : As of September 30, 2019 As of December 31, 2018 Service Centers $ 458,975 $ 402,944 Innovative Pumping Solutions 225,361 188,765 Supply Chain Services 60,342 53,517 Total Identifiable Assets $ 744,678 $ 645,226

THE COMPANY (Details)

THE COMPANY (Details)	9 Months Ended
	Sep. 30, 2019segment
THE COMPANY [Abstract]
Number of business segments	3

LEASES - Narrative (Details)

LEASES - Narrative (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)asset_class	Jan. 01, 2019USD ($)	Dec. 31, 2018USD ($)
Lessee, Lease, Description [Line Items]
Number of classes of leased assets-real estate properties | asset_class	4
Operating lease right-of-use assets	$ 67,296	$ 72,679	$ 0
Operating lease liabilities	$ 67,313	72,416
Remaining lease term	4 years 10 months 6 days
Lease extension period	14 years
Chief Executive Officer
Lessee, Lease, Description [Line Items]
Operating lease expense	$ 1,900
ASU 2016-02
Lessee, Lease, Description [Line Items]
Operating lease right-of-use assets		72,000
Operating lease liabilities		$ 72,000
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	1 month
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	12 years

LEASES - Lease Expense (Details

LEASES - Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Leases [Abstract]
Short-term lease expense	$ 309	$ 870
Other operating lease cost	6,081	17,957
Total operating lease cost	$ 6,390	$ 18,827

LEASES - Supplemental Cash Flow

LEASES - Supplemental Cash Flow Information (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 13,941
Right-of-use assets obtained in exchange for lease liabilities
Right-of-use assets obtained in exchange for lease liabilities	$ 8,889

LEASES - Supplemental Balance S

LEASES - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Assets
Operating lease right-of-use assets	$ 67,296	$ 72,679	$ 0
Liabilities
Short-term operating lease liabilities	17,711	18,762	0
Long-term operating lease liabilities	49,602	53,654	$ 0
Total operating lease liabilities	$ 67,313	$ 72,416

LEASES - Maturity of Lease Liab

LEASES - Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jan. 01, 2019
Leases [Abstract]
2019 (excluding 9 months ended 9/30/2019)	$ 5,880
2020	20,841
2021	17,530
2022	13,315
2023	8,170
Thereafter	14,218
Total lease payments	79,954
Less: imputed interest	12,641
Present value of lease liabilities	67,313	$ 72,416
Minimum lease payments for leases signed but not yet commenced	$ 1,200

LEASES - Contractual Obligation

LEASES - Contractual Obligations Related to Operating Leases Under ASC 840 (Details) $ in Thousands	Dec. 31, 2018USD ($)
Leases [Abstract]
Less than 1 year	$ 22,096
1-3 years	33,825
3-5 years	18,379
More than 5 years	11,022
Total	$ 85,322

LEASES - Lease Term and Discoun

LEASES - Lease Term and Discount Rate (Details)	Sep. 30, 2019
Leases [Abstract]
Weighted average remaining lease term, operating lease	4 years 10 months 6 days
Weighted average discount rate, operating lease	7.30%

FAIR VALUE OF FINANCIAL ASSET_3

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES - Narrative (Details) $ in Thousands	Sep. 30, 2019USD ($)
Discounted cash flow | Fair Value, Inputs, Level 3 | Annualized EBITDA and probability of achievement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liability for contingent consideration	$ 2,920
Discount rate	0.073
ASI | Other Current and Long-term Liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liability for contingent consideration	$ 2,900

FAIR VALUE OF FINANCIAL ASSET_4

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES - Reconciliation of Beginning and Ending Balances (Details) - Fair Value, Measurements, Recurring - Fair Value, Inputs, Level 3 - Contingent Consideration Liability $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
Contingent Liability for Accrued Consideration
Beginning balance at December 31, 2018	$ 4,319
Acquisitions and settlements
Acquisitions	0
Settlements	(1,500)
Total remeasurement adjustments:
Changes in fair value recorded in other (income) expense, net	101
Ending Balance at September 30, 2019	2,920
The amount of total losses for the quarter included in earnings or changes to net assets, attributable to changes in unrealized losses relating to liabilities still held at September 30, 2019.	$ 101

FAIR VALUE OF FINANCIAL ASSET_5

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES - Quantitative Information About Level 3 (Details) $ in Thousands	Sep. 30, 2019USD ($)
Fair Value, Inputs, Level 3 | Discounted cash flow | Annualized EBITDA and probability of achievement
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Contingent consideration: (ASI acquisition)	$ 2,920

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Finished goods	$ 122,102	$ 110,182
Work in process	22,509	17,344
Obsolescence reserve	(12,695)	(12,696)
Inventories	$ 131,916	$ 114,830

COSTS AND ESTIMATED PROFITS O_3

COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Schedule of costs and estimated earnings on uncompleted contracts [Abstract]
Costs incurred on uncompleted contracts	$ 52,506	$ 53,595
Estimated profits, thereon	8,932	6,847
Total	61,438	60,442
Less: billings to date	34,743	38,662
Net	26,695	21,780
Schedule of Costs and Estimated Earnings on Uncompleted Contracts Included in Condensed Consolidated Balance Sheets [Abstract]
Costs and estimated profits in excess of billings	33,898	32,514
Billings in excess of costs and estimated profits	(7,201)	(10,696)
Translation adjustment	(2)	(38)
Net	26,695	$ 21,780
Balances previously classified as contract liabilities at the beginning of the period that have shipped	$ 10,500

INCOME TAXES (Details)

INCOME TAXES (Details)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Effective income tax rate from continuing operations	24.00%	26.90%

LONG-TERM DEBT (Details)

LONG-TERM DEBT (Details) - USD ($) $ in Thousands	1 Months Ended
	Aug. 31, 2019	Sep. 30, 2019	Dec. 31, 2018
Borrowings [Abstract]
Less: current portion		$ (2,500)	$ (3,407)
Long-term debt less current maturities		235,576	236,979
Unamortized debt issuance costs		6,900	8,300
Carrying Value
Borrowings [Abstract]
Total long-term debt		245,000	248,716
Less: current portion		(2,500)	(3,407)
Long-term debt less current maturities		242,500	245,309
Fair Value | Level 2 Inputs
Borrowings [Abstract]
Total long-term debt		246,225	247,790
Less: current portion		(2,513)	(3,398)
Long-term debt less current maturities		243,712	244,392
ABL Revolver | Carrying Value
Borrowings [Abstract]
Total long-term debt		0	0
ABL Revolver | Fair Value | Level 2 Inputs
Borrowings [Abstract]
Total long-term debt		0	0
Term Loan B | Carrying Value
Borrowings [Abstract]
Total long-term debt		245,000	246,875
Term Loan B | Fair Value | Level 2 Inputs
Borrowings [Abstract]
Total long-term debt		246,225	$ 245,949
Promissory note payable
Borrowings [Abstract]
Interest rate			2.90%
Repayment of promissory note	$ 1,300
Promissory note payable | Carrying Value
Borrowings [Abstract]
Total long-term debt		0	$ 1,841
Promissory note payable | Fair Value | Level 2 Inputs
Borrowings [Abstract]
Total long-term debt		$ 0	$ 1,841

EARNINGS PER SHARE DATA (Detail

EARNINGS PER SHARE DATA (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Basic:
Weighted average shares outstanding (in shares)	17,602	17,564	17,588	17,547
Net income attributable to DXP Enterprises, Inc.	$ 13,109	$ 8,397	$ 33,859	$ 24,510
Convertible preferred stock dividend	23	23	68	68
Net income attributable to common shareholders	$ 13,086	$ 8,374	$ 33,791	$ 24,442
Per share amount (in dollars per share)	$ 0.74	$ 0.48	$ 1.92	$ 1.39
Diluted:
Weighted average shares outstanding (in shares)	17,602	17,564	17,588	17,547
Assumed conversion of convertible preferred stock (in shares)	840	840	840	840
Total dilutive shares (in shares)	18,442	18,404	18,428	18,387
Net income attributable to common shareholders	$ 13,086	$ 8,374	$ 33,791	$ 24,442
Net income attributable to DXP Enterprises, Inc.	$ 13,109	$ 8,397	$ 33,859	$ 24,510
Per share amount (in dollars per share)	$ 0.71	$ 0.46	$ 1.84	$ 1.33

SEGMENT REPORTING - Financial I

SEGMENT REPORTING - Financial Information of Company's Segments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	$ 327,178	$ 308,028	$ 971,721	$ 905,191
Income from operations	38,278	33,249	107,185	94,658
Product Sales | Fixed-price Contract | Transferred at Point in Time
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	225,839	213,232	676,721	629,796
Inventory Management Services | Fixed-price Contract | Transferred over Time
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	4,284	3,393	12,149	9,890
Staffing Services | Time-and-materials Contract | Transferred over Time
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	14,886	14,741	44,931	46,944
Customized Pump Production | Time-and-materials Contract | Transferred over Time
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	82,169	76,662	237,920	218,561
SC
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	193,727	187,763	579,884	556,700
Income from operations	25,071	20,590	67,281	58,353
SC | Product Sales | Fixed-price Contract | Transferred at Point in Time
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	178,841	173,022	534,953	509,756
SC | Inventory Management Services | Fixed-price Contract | Transferred over Time
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	0	0	0	0
SC | Staffing Services | Time-and-materials Contract | Transferred over Time
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	14,886	14,741	44,931	46,944
SC | Customized Pump Production | Time-and-materials Contract | Transferred over Time
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	0	0	0	0
IPS
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	82,169	76,662	237,920	218,561
Income from operations	10,097	8,773	28,924	24,109
IPS | Product Sales | Fixed-price Contract | Transferred at Point in Time
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	0	0	0	0
IPS | Inventory Management Services | Fixed-price Contract | Transferred over Time
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	0	0	0	0
IPS | Staffing Services | Time-and-materials Contract | Transferred over Time
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	0	0	0	0
IPS | Customized Pump Production | Time-and-materials Contract | Transferred over Time
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	82,169	76,662	237,920	218,561
SCS
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	51,282	43,603	153,917	129,930
Income from operations	3,110	3,886	10,980	12,196
SCS | Product Sales | Fixed-price Contract | Transferred at Point in Time
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	46,998	40,210	141,768	120,040
SCS | Inventory Management Services | Fixed-price Contract | Transferred over Time
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	4,284	3,393	12,149	9,890
SCS | Staffing Services | Time-and-materials Contract | Transferred over Time
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	0	0	0	0
SCS | Customized Pump Production | Time-and-materials Contract | Transferred over Time
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	$ 0	$ 0	$ 0	$ 0

SEGMENT REPORTING - Reconciliat

SEGMENT REPORTING - Reconciliation of Operating Income to Consolidated Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Adjustment for:
Amortization of intangible assets			$ 11,423	$ 12,575
Income from operations	$ 21,717	$ 16,813	59,380	48,022
Interest expense	4,986	4,781	14,911	15,959
Other income, net	(25)	120	127	(1,318)
Income before income taxes	16,756	11,912	44,342	33,381
Operating Segments
Segment Reporting Information, Operating Income (Loss) [Abstract]
Operating income for reportable segments	38,278	33,249	107,185	94,658
Segment Reconciling Items
Adjustment for:
Amortization of intangible assets	3,806	4,098	11,424	12,575
Corporate
Adjustment for:
Corporate expenses	$ 12,755	$ 12,338	$ 36,381	$ 34,061

SEGMENT REPORTING - Identifiabl

SEGMENT REPORTING - Identifiable Assets by Segments (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Total Identifiable Assets	$ 744,678	$ 645,226
Corporate
Segment Reporting Information [Line Items]
Total Identifiable Assets	46,900	54,700
Service Centers
Segment Reporting Information [Line Items]
Total Identifiable Assets	458,975	402,944
Innovative Pumping Solutions
Segment Reporting Information [Line Items]
Total Identifiable Assets	225,361	188,765
Supply Chain Services
Segment Reporting Information [Line Items]
Total Identifiable Assets	$ 60,342	$ 53,517