Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Dec. 31, 2013 | Jan. 15, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'APPLIED INDUSTRIAL TECHNOLOGIES INC | ' |
Entity Central Index Key | '0000109563 | ' |
Current Fiscal Year End Date | '--06-30 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Dec-13 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 41,965,748 |
Condensed_Statements_of_Consol
Condensed Statements of Consolidated Income (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net Sales | $581,949 | $589,517 | $1,187,254 | $1,200,036 |
Cost of Sales | 418,566 | 426,598 | 854,076 | 872,584 |
Gross Profit | 163,383 | 162,919 | 333,178 | 327,452 |
Selling, Distribution and Administrative, including depreciation | 123,546 | 122,350 | 253,802 | 242,565 |
Operating Income | 39,837 | 40,569 | 79,376 | 84,887 |
Interest (Income) Expense, net | -152 | 15 | -91 | 40 |
Other Income, net | -270 | -427 | -1,361 | -886 |
Income Before Income Taxes | 40,259 | 40,981 | 80,828 | 85,733 |
Income Tax Expense | 14,350 | 13,938 | 28,075 | 29,158 |
Net Income | $25,909 | $27,043 | $52,753 | $56,575 |
Net Income Per Share - Basic | $0.62 | $0.64 | $1.25 | $1.35 |
Net Income Per Share - Diluted | $0.61 | $0.64 | $1.24 | $1.33 |
Cash dividends per common share | $0.23 | $0.21 | $0.46 | $0.42 |
Weighted average common shares outstanding for basic computation | 42,076 | 42,052 | 42,116 | 42,009 |
Dilutive effect of potential common shares | 386 | 442 | 431 | 477 |
Weighted average common shares outstanding for diluted computation | 42,462 | 42,494 | 42,547 | 42,486 |
Condensed_Statements_of_Consol1
Condensed Statements of Consolidated Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income per the condensed statements of consolidated income | $25,909 | $27,043 | $52,753 | $56,575 |
Other comprehensive income (loss), before tax: | ' | ' | ' | ' |
Foreign currency translation adjustments | -7,410 | -594 | -6,860 | 8,408 |
Postemployment benefits: | ' | ' | ' | ' |
Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs | 96 | 218 | 191 | 436 |
Unrealized gain (loss) on investment securities available for sale | 65 | 0 | 99 | 23 |
Total of other comprehensive income (loss), before tax | -7,249 | -376 | -6,570 | 8,867 |
Income tax expense related to items of other comprehensive income | 61 | 85 | 109 | 179 |
Other comprehensive income (loss), net of tax | -7,310 | -461 | -6,679 | 8,688 |
Comprehensive income, net of tax | $18,599 | $26,582 | $46,074 | $65,263 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $66,584 | $73,164 |
Accounts receivable, less allowances of $7,335 and $7,737 | 305,936 | 329,880 |
Inventories | 323,257 | 281,417 |
Other current assets | 54,702 | 52,819 |
Total current assets | 750,479 | 737,280 |
Property, less accumulated depreciation of $163,179 and $157,506 | 80,056 | 83,243 |
Intangibles, net | 91,669 | 91,267 |
Goodwill | 111,356 | 106,849 |
Deferred tax assets | 20,463 | 21,026 |
Other assets | 20,136 | 19,041 |
TOTAL ASSETS | 1,074,159 | 1,058,706 |
Current liabilities | ' | ' |
Accounts payable | 140,869 | 136,575 |
Short-term debt | 15,000 | 0 |
Compensation and related benefits | 48,769 | 63,899 |
Other current liabilities | 46,216 | 45,426 |
Total current liabilities | 250,854 | 245,900 |
Postemployment benefits | 25,405 | 30,919 |
Other liabilities | 24,421 | 22,272 |
TOTAL LIABILITIES | 300,680 | 299,091 |
Shareholders’ Equity | ' | ' |
Preferred stock—no par value; 2,500 shares authorized; none issued or outstanding | ' | ' |
Common stock—no par value; 80,000 shares authorized; 54,213 shares issued | 10,000 | 10,000 |
Additional paid-in capital | 155,299 | 153,893 |
Income retained for use in the business | 857,638 | 824,362 |
Treasury shares—at cost (12,224 and 12,044 shares) | -239,358 | -225,219 |
Accumulated other comprehensive income (loss) | -10,100 | -3,421 |
TOTAL SHAREHOLDERS’ EQUITY | 773,479 | 759,615 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $1,074,159 | $1,058,706 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Current Assets: | ' | ' |
Accounts Receivable, less allowances | $7,335 | $7,737 |
Noncurrent Assets: | ' | ' |
Property, less accumulated depreciation | $163,179 | $157,506 |
Shareholders’ Equity | ' | ' |
Preferred stock, par value | $0 | $0 |
Preferred stock, shares authorized | 2,500,000 | 2,500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0 | $0 |
Common stock, shares authorized | 80,000,000 | 80,000,000 |
Common stock, shares issued | 54,213,000 | 54,213,000 |
Treasury shares | 12,224,000 | 12,044,000 |
Condensed_Statements_of_Consol2
Condensed Statements of Consolidated Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows from Operating Activities | ' | ' |
Net income | $52,753 | $56,575 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization of property | 6,792 | 6,036 |
Amortization of intangibles | 6,330 | 6,207 |
Unrealized foreign exchange transactions gain (loss) | 79 | -620 |
Amortization of stock options and appreciation rights | 931 | 1,197 |
Gain on sale of property | -10 | -193 |
Other share-based compensation expense | 2,286 | 1,982 |
Changes in operating assets and liabilities, net of acquisitions | -36,996 | -42,766 |
Other, net | 498 | 468 |
Net Cash provided by Operating Activities | 32,663 | 28,886 |
Cash Flows from Investing Activities | ' | ' |
Property purchases | -4,126 | -6,843 |
Proceeds from property sales | 324 | 429 |
Net cash paid for acquisition of businesses, net of cash acquired | -17,000 | -66,055 |
Net Cash used in Investing Activities | -20,802 | -72,469 |
Cash Flows from Financing Activities | ' | ' |
Borrowings under revolving credit facility | 15,000 | 33,000 |
Purchases of treasury shares | -13,838 | 0 |
Dividends paid | -19,471 | -17,737 |
Excess tax benefits from share-based compensation | 2,057 | 1,461 |
Acquisition holdback payments | -1,032 | -1,845 |
Exercise of stock options and appreciation rights | 97 | 497 |
Net Cash provided by (used in) Financing Activities | -17,187 | 15,376 |
Effect of Exchange Rate Changes on Cash | -1,254 | 1,610 |
Decrease in Cash and Cash Equivalents | -6,580 | -26,597 |
Cash and Cash Equivalents at Beginning of Period | 73,164 | 78,442 |
Cash and Cash Equivalents at End of Period | $66,584 | $51,845 |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
BASIS OF PRESENTATION | ' |
BASIS OF PRESENTATION | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the financial position of Applied Industrial Technologies, Inc. (the “Company”, or “Applied”) as of December 31, 2013, and the results of its operations for the three and six month periods ended December 31, 2013 and 2012 and its cash flows for the six months ended December 31, 2013 and 2012, have been included. The condensed consolidated balance sheet as of June 30, 2013 has been derived from the audited consolidated financial statements at that date. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended June 30, 2013. | |
Operating results for the three and six month periods ended December 31, 2013 are not necessarily indicative of the results that may be expected for the remainder of the fiscal year ending June 30, 2014. | |
Change in Accounting Principle - Alignment of Canadian Subsidiary Reporting | |
Effective July 1, 2013, the Company aligned the consolidation of the Company’s Canadian subsidiary in the consolidated financial statements which previously included results on a one month reporting lag. The Company believes that this change in accounting principle is preferable as it provides contemporaneous reporting within our consolidated financial statements. In accordance with applicable accounting literature, the elimination of a one month reporting lag of a subsidiary is treated as a change in accounting principle and requires retrospective application. The Company has determined that the effect of this change is not material to the financial statements for all periods presented and therefore, the Company has not presented retrospective application of this change. The net impact of the lag elimination of $1.2 million of income for the month of June 2013 has been included within “Other (Income) Expense, net” on the Statement of Consolidated Income for the six months ended December 31, 2013. The three months ended December 31, 2013 reflect the same results, had the financial statements been retrospectively adjusted. The six months ended December 31, 2013 reflect the same results, had the financial statements been retrospectively adjusted, with the exception of net income which would have decreased $1.2 million. Net sales, operating income and net income for the three months ended December 31, 2012, would have decreased by $1.4 million, $0.4 million and $0.3 million respectively had the financial statements been retrospectively adjusted. Net sales, operating income and net income for the six months ended December 31, 2012, would have decreased by $2.9 million, $1.2 million and $1.2 million respectively had the financial statements been retrospectively adjusted. | |
Inventory | |
The Company uses the last-in, first-out (LIFO) method of valuing U.S. inventories. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs and are subject to the final year-end LIFO inventory determination. | |
Reclassifications | |
Certain reclassifications have been made to the prior year financial statements to conform to the 2014 presentation. |
Business_Combinations
Business Combinations | 6 Months Ended |
Dec. 31, 2013 | |
Business Combinations [Abstract] | ' |
Business Combination Disclosure [Text Block] | ' |
BUSINESS COMBINATIONS | |
In December 2013, the Company acquired substantially all of the net assets of Texas Oilpatch Services Corporation, a Texas distributor of bearings, oil seals, power transmission products, and related replacement parts to the oilfield industry. The acquired business is included in the Service Center Based Distribution segment from December 31, 2013. | |
The results of operations for this acquisition are not material for any period presented. |
Goodwill_and_Intangibles
Goodwill and Intangibles | 6 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
GOODWILL AND INTANGIBLES | ' | ||||||||||||
GOODWILL AND INTANGIBLES | |||||||||||||
The changes in the carrying amount of goodwill for the six month period ended December 31, 2013 are as follows: | |||||||||||||
Service Center Based Distribution | Fluid Power Businesses | Total | |||||||||||
Balance at July 1, 2013 | $ | 105,920 | $ | 929 | $ | 106,849 | |||||||
Goodwill acquired during the period | 5,590 | 5,590 | |||||||||||
Other, primarily currency translation | (1,083 | ) | (1,083 | ) | |||||||||
Balance at December 31, 2013 | $ | 110,427 | $ | 929 | $ | 111,356 | |||||||
At December 31, 2013, accumulated goodwill impairment losses, subsequent to fiscal year 2002, totaled $36,605 and related to the Fluid Power Businesses segment. | |||||||||||||
The Company’s intangible assets resulting from business combinations are amortized over their estimated period of benefit and consist of the following: | |||||||||||||
December 31, 2013 | Amount | Accumulated | Net Book | ||||||||||
Amortization | Value | ||||||||||||
Finite-Lived Intangibles: | |||||||||||||
Customer relationships | $ | 107,226 | $ | 43,022 | $ | 64,204 | |||||||
Trade names | 26,486 | 9,436 | 17,050 | ||||||||||
Vendor relationships | 15,297 | 5,977 | 9,320 | ||||||||||
Non-competition agreements | 2,789 | 1,694 | 1,095 | ||||||||||
Total Intangibles | $ | 151,798 | $ | 60,129 | $ | 91,669 | |||||||
June 30, 2013 | Amount | Accumulated | Net Book | ||||||||||
Amortization | Value | ||||||||||||
Finite-Lived Intangibles: | |||||||||||||
Customer relationships | $ | 100,854 | $ | 38,844 | $ | 62,010 | |||||||
Trade names | 26,690 | 8,643 | 18,047 | ||||||||||
Vendor relationships | 15,433 | 5,443 | 9,990 | ||||||||||
Non-competition agreements | 4,743 | 3,523 | 1,220 | ||||||||||
Total Intangibles | $ | 147,720 | $ | 56,453 | $ | 91,267 | |||||||
Amounts include the impact of foreign currency translation. Fully amortized amounts are written off. | |||||||||||||
During the six month period ended December 31, 2013, the Company acquired intangible assets with a preliminary acquisition cost allocation and weighted-average life as follows: | |||||||||||||
Acquisition Cost Allocation | Weighted-Average Life | ||||||||||||
Customer relationships | $ | 7,000 | 20 years | ||||||||||
Trade names | 120 | 5 years | |||||||||||
Non-competition agreements | 250 | 5 years | |||||||||||
Total Intangibles Acquired | $ | 7,370 | 19 years | ||||||||||
Estimated future amortization expense by fiscal year (based on the Company’s intangible assets as of December 31, 2013) is as follows: $6,500 for the remainder of 2014, $12,000 for 2015, $11,000 for 2016, $10,200 for 2017, $9,000 for 2018 and $8,000 for 2019. |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended |
Dec. 31, 2013 | |
Fair Value Disclosures [Abstract] | ' |
FAIR VALUE MEASUREMENTS | ' |
FAIR VALUE MEASUREMENTS | |
Marketable securities measured at fair value at December 31, 2013 and June 30, 2013 totaled $11,582 and $10,483. These marketable securities are held in a rabbi trust for a non-qualified deferred compensation plan. The marketable securities are included in other assets on the condensed consolidated balance sheets and their fair values were based upon quoted market prices (Level 1 in the fair value hierarchy). |
Shareholders_Equity
Shareholders' Equity | 6 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||||||||||||
SHAREHOLDERS' EQUITY | ' | ||||||||||||||||||||||||
SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||
Changes in the accumulated other comprehensive income (loss), are comprised of the following: | |||||||||||||||||||||||||
Three Months Ended December 31, 2013 | |||||||||||||||||||||||||
Foreign currency translation adjustment | Unrealized gain (loss) on securities available for sale | Postemployment benefits | Total Accumulated other comprehensive income (loss) | ||||||||||||||||||||||
Balance at September 30, 2013 | $ | 910 | $ | (29 | ) | $ | (3,671 | ) | $ | (2,790 | ) | ||||||||||||||
Other comprehensive income (loss) | (7,410 | ) | 42 | (7,368 | ) | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | — | 58 | 58 | |||||||||||||||||||||
Net current-period other comprehensive income (loss), net of taxes | (7,410 | ) | 42 | 58 | (7,310 | ) | |||||||||||||||||||
Balance at December 31, 2013 | $ | (6,500 | ) | $ | 13 | $ | (3,613 | ) | $ | (10,100 | ) | ||||||||||||||
Six Months Ended December 31, 2013 | |||||||||||||||||||||||||
Foreign currency translation adjustment | Unrealized gain (loss) on securities available for sale | Postemployment benefits | Total Accumulated other comprehensive income (loss) | ||||||||||||||||||||||
Balance at July 1, 2013 | $ | 360 | $ | (52 | ) | $ | (3,729 | ) | $ | (3,421 | ) | ||||||||||||||
Other comprehensive income (loss) | (6,860 | ) | 65 | (6,795 | ) | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | — | 116 | 116 | |||||||||||||||||||||
Net current-period other comprehensive income (loss), net of taxes | (6,860 | ) | 65 | 116 | (6,679 | ) | |||||||||||||||||||
Balance at December 31, 2013 | $ | (6,500 | ) | $ | 13 | $ | (3,613 | ) | $ | (10,100 | ) | ||||||||||||||
Other Comprehensive Income (Loss) | |||||||||||||||||||||||||
Details of other comprehensive income (loss) are as follows: | |||||||||||||||||||||||||
Three Months Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Pre-Tax Amount | Tax Expense (Benefit) | Net Amount | Pre-Tax Amount | Tax Expense (Benefit) | Net Amount | ||||||||||||||||||||
Foreign currency translation adjustments | $ | (7,410 | ) | $ | — | $ | (7,410 | ) | $ | (594 | ) | $ | — | $ | (594 | ) | |||||||||
Postemployment benefits: | |||||||||||||||||||||||||
Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs | 96 | 38 | 58 | 218 | 85 | 133 | |||||||||||||||||||
Unrealized gain (loss) on investment securities available for sale | 65 | 23 | 42 | — | — | — | |||||||||||||||||||
Other comprehensive income (loss) | $ | (7,249 | ) | $ | 61 | $ | (7,310 | ) | $ | (376 | ) | $ | 85 | $ | (461 | ) | |||||||||
Six Months Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Pre-Tax Amount | Tax Expense (Benefit) | Net Amount | Pre-Tax Amount | Tax Expense (Benefit) | Net Amount | ||||||||||||||||||||
Foreign currency translation adjustments | $ | (6,860 | ) | $ | — | $ | (6,860 | ) | $ | 8,408 | $ | — | $ | 8,408 | |||||||||||
Postemployment benefits: | |||||||||||||||||||||||||
Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs | 191 | 75 | 116 | 436 | 170 | 266 | |||||||||||||||||||
Unrealized gain (loss) on investment securities available for sale | 99 | 34 | 65 | 23 | 9 | 14 | |||||||||||||||||||
Other comprehensive income (loss) | $ | (6,570 | ) | $ | 109 | $ | (6,679 | ) | $ | 8,867 | $ | 179 | $ | 8,688 | |||||||||||
Antidilutive Common Stock Equivalents | |||||||||||||||||||||||||
In the three and six month periods ended December 31, 2013 and 2012, respectively, stock options and stock appreciation rights related to the acquisition of 272 and 171 shares of common stock in the three month periods and 272 and 171 shares of common stock in the six month periods were not included in the computation of diluted earnings per share for the periods then ended as they were anti-dilutive. |
Benefit_Plans
Benefit Plans | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
BENEFIT PLANS | ' | ||||||||||||||||
BENEFIT PLANS | |||||||||||||||||
The following table provides summary disclosures of the net periodic postemployment costs recognized for the Company’s postemployment benefit plans: | |||||||||||||||||
Pension Benefits | Retiree Health Care | ||||||||||||||||
Benefits | |||||||||||||||||
Three Months Ended December 31, | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Components of net periodic cost: | |||||||||||||||||
Service cost | $ | 19 | $ | 20 | $ | 12 | $ | 20 | |||||||||
Interest cost | 295 | 315 | 34 | 47 | |||||||||||||
Expected return on plan assets | (104 | ) | (101 | ) | — | — | |||||||||||
Recognized net actuarial loss (gain) | 153 | 184 | (10 | ) | (14 | ) | |||||||||||
Amortization of prior service cost | 19 | 21 | (67 | ) | 27 | ||||||||||||
Net periodic cost | $ | 382 | $ | 439 | $ | (31 | ) | $ | 80 | ||||||||
Pension Benefits | Retiree Health Care | ||||||||||||||||
Benefits | |||||||||||||||||
Six Months Ended December 31, 2013 | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Components of net periodic cost: | |||||||||||||||||
Service cost | $ | 38 | $ | 39 | $ | 24 | $ | 40 | |||||||||
Interest cost | 590 | 630 | 69 | 94 | |||||||||||||
Expected return on plan assets | (208 | ) | (202 | ) | — | — | |||||||||||
Recognized net actuarial loss (gain) | 306 | 368 | (19 | ) | (27 | ) | |||||||||||
Amortization of prior service cost | 39 | 42 | (135 | ) | 54 | ||||||||||||
Net periodic cost | $ | 765 | $ | 877 | $ | (61 | ) | $ | 161 | ||||||||
The Company contributed $5,295 to its pension benefit plans and $100 to its retiree health care plans in the six months ended December 31, 2013. Expected contributions for the remainder of fiscal 2014 are $1,400 for the pension benefit plans to fund scheduled retirement payments and $150 for retiree health care plans. |
Segment_and_Geographic_Informa
Segment and Geographic Information | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
SEGMENT AND GEOGRAPHIC INFORMATION | ' | ||||||||||||||||
SEGMENT AND GEOGRAPHIC INFORMATION | |||||||||||||||||
The accounting policies of the Company’s reportable segments are generally the same as those used to prepare the condensed consolidated financial statements. Sales primarily from the Fluid Power Businesses segment to the Service Center Based Distribution segment of $5,681 and $4,803, in the three months ended December 31, 2013 and 2012, respectively, and $11,110 and $8,732 in the six months ended December 31, 2013 and 2012, respectively, have been eliminated in the Segment Financial Information tables below. | |||||||||||||||||
Three Months Ended | Service Center Based Distribution | Fluid Power Businesses | Total | ||||||||||||||
December 31, 2013 | |||||||||||||||||
Net sales | $ | 465,955 | $ | 115,994 | $ | 581,949 | |||||||||||
Operating income for reportable segments | 25,569 | 10,364 | 35,933 | ||||||||||||||
Depreciation and amortization of property | 2,988 | 373 | 3,361 | ||||||||||||||
Capital expenditures | 2,340 | 215 | 2,555 | ||||||||||||||
December 31, 2012 | |||||||||||||||||
Net sales | $ | 480,476 | $ | 109,041 | $ | 589,517 | |||||||||||
Operating income for reportable segments | 28,367 | 8,615 | 36,982 | ||||||||||||||
Depreciation and amortization of property | 2,565 | 449 | 3,014 | ||||||||||||||
Capital expenditures | 2,880 | 71 | 2,951 | ||||||||||||||
Six Months Ended | Service Center Based Distribution | Fluid Power Businesses | Total | ||||||||||||||
December 31, 2013 | |||||||||||||||||
Net sales | $ | 958,027 | $ | 229,227 | $ | 1,187,254 | |||||||||||
Operating income for reportable segments | 53,941 | 19,821 | 73,762 | ||||||||||||||
Assets used in business | 864,996 | 209,163 | 1,074,159 | ||||||||||||||
Depreciation and amortization of property | 5,987 | 805 | 6,792 | ||||||||||||||
Capital expenditures | 3,734 | 392 | 4,126 | ||||||||||||||
December 31, 2012 | |||||||||||||||||
Net sales | $ | 978,302 | $ | 221,734 | $ | 1,200,036 | |||||||||||
Operating income for reportable segments | 62,088 | 19,151 | 81,239 | ||||||||||||||
Assets used in business | 834,839 | 202,787 | 1,037,626 | ||||||||||||||
Depreciation and amortization of property | 5,129 | 907 | 6,036 | ||||||||||||||
Capital expenditures | 6,594 | 249 | 6,843 | ||||||||||||||
Enterprise Resource Planning system (ERP) related assets are included in assets used in business and capital expenditures within the Service Center Based Distribution segment. Expenses associated with the ERP are included in Corporate and other expense (income) net, line in the reconciliation of operating income for reportable segments to the consolidated income before income taxes table below. | |||||||||||||||||
A reconciliation of operating income for reportable segments to the condensed consolidated income before income taxes is as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Operating income for reportable segments | $ | 35,933 | $ | 36,982 | $ | 73,762 | $ | 81,239 | |||||||||
Adjustment for: | |||||||||||||||||
Intangible amortization—Service Center Based Distribution | 1,887 | 1,304 | 3,382 | 2,527 | |||||||||||||
Intangible amortization—Fluid Power Businesses | 1,194 | 1,847 | 2,948 | 3,680 | |||||||||||||
Corporate and other expense (income), net | (6,985 | ) | (6,738 | ) | (11,944 | ) | (9,855 | ) | |||||||||
Total operating income | 39,837 | 40,569 | 79,376 | 84,887 | |||||||||||||
Interest (income) expense, net | (152 | ) | 15 | (91 | ) | 40 | |||||||||||
Other (income) expense, net | (270 | ) | (427 | ) | (1,361 | ) | (886 | ) | |||||||||
Income before income taxes | $ | 40,259 | $ | 40,981 | $ | 80,828 | $ | 85,733 | |||||||||
The change in corporate and other expense (income), net is due to changes in the amounts and levels of expenses being allocated to the segments. The expenses being allocated include corporate charges for working capital, logistics support and other items. | |||||||||||||||||
Net sales are presented in geographic areas based on the location of the facility shipping the product and are as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Geographic Areas: | |||||||||||||||||
United States | $ | 479,488 | $ | 478,318 | $ | 980,539 | $ | 977,854 | |||||||||
Canada | 67,770 | 74,140 | 137,517 | 148,351 | |||||||||||||
Other countries | 34,691 | 37,059 | 69,198 | 73,831 | |||||||||||||
Total | $ | 581,949 | $ | 589,517 | $ | 1,187,254 | $ | 1,200,036 | |||||||||
Other countries consisted of Mexico, Australia and New Zealand. |
Other_Income_Expense_Net
Other (Income) Expense, Net | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Other Income and Expenses [Abstract] | ' | ||||||||||||||||
OTHER (INCOME) EXPENSE, NET | ' | ||||||||||||||||
OTHER (INCOME) EXPENSE , NET | |||||||||||||||||
Other (income) expense, net consists of the following: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Unrealized (gain) loss on assets held in rabbi trust for a nonqualified deferred compensation plan | $ | (649 | ) | $ | (140 | ) | $ | (1,245 | ) | $ | (580 | ) | |||||
Foreign currency transaction (gains) losses | 302 | (343 | ) | 907 | (425 | ) | |||||||||||
Elimination of one-month Canadian reporting lag effective July 1, 2013 | — | — | (1,167 | ) | — | ||||||||||||
Other, net | 77 | 56 | 144 | 119 | |||||||||||||
Total other income, net | $ | (270 | ) | $ | (427 | ) | $ | (1,361 | ) | $ | (886 | ) |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 6 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | ' |
Change in Accounting Principle - Alignment of Canadian Subsidiary Reporting | |
Effective July 1, 2013, the Company aligned the consolidation of the Company’s Canadian subsidiary in the consolidated financial statements which previously included results on a one month reporting lag. The Company believes that this change in accounting principle is preferable as it provides contemporaneous reporting within our consolidated financial statements. In accordance with applicable accounting literature, the elimination of a one month reporting lag of a subsidiary is treated as a change in accounting principle and requires retrospective application. The Company has determined that the effect of this change is not material to the financial statements for all periods presented and therefore, the Company has not presented retrospective application of this change. The net impact of the lag elimination of $1.2 million of income for the month of June 2013 has been included within “Other (Income) Expense, net” on the Statement of Consolidated Income for the six months ended December 31, 2013. The three months ended December 31, 2013 reflect the same results, had the financial statements been retrospectively adjusted. The six months ended December 31, 2013 reflect the same results, had the financial statements been retrospectively adjusted, with the exception of net income which would have decreased $1.2 million. Net sales, operating income and net income for the three months ended December 31, 2012, would have decreased by $1.4 million, $0.4 million and $0.3 million respectively had the financial statements been retrospectively adjusted. Net sales, operating income and net income for the six months ended December 31, 2012, would have decreased by $2.9 million, $1.2 million and $1.2 million respectively had the financial statements been retrospectively adjusted. | |
Inventory | ' |
Inventory | |
The Company uses the last-in, first-out (LIFO) method of valuing U.S. inventories. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs and are subject to the final year-end LIFO inventory determination | |
Reclassifications [Text Block] | ' |
Reclassifications | |
Certain reclassifications have been made to the prior year financial statements to conform to the 2014 presentation |
Goodwill_and_Intangibles_Table
Goodwill and Intangibles (Tables) | 6 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Changes in the carrying amount of goodwill by reportable segment | ' | ||||||||||||
The changes in the carrying amount of goodwill for the six month period ended December 31, 2013 are as follows: | |||||||||||||
Service Center Based Distribution | Fluid Power Businesses | Total | |||||||||||
Balance at July 1, 2013 | $ | 105,920 | $ | 929 | $ | 106,849 | |||||||
Goodwill acquired during the period | 5,590 | 5,590 | |||||||||||
Other, primarily currency translation | (1,083 | ) | (1,083 | ) | |||||||||
Balance at December 31, 2013 | $ | 110,427 | $ | 929 | $ | 111,356 | |||||||
At December 31, 2013, accumulated goodwill impairment losses, subsequent to fiscal year 2002, totaled $36,605 and related to the Fluid Power Businesses segment. | |||||||||||||
Schedule of Intangible Assets | ' | ||||||||||||
The Company’s intangible assets resulting from business combinations are amortized over their estimated period of benefit and consist of the following: | |||||||||||||
December 31, 2013 | Amount | Accumulated | Net Book | ||||||||||
Amortization | Value | ||||||||||||
Finite-Lived Intangibles: | |||||||||||||
Customer relationships | $ | 107,226 | $ | 43,022 | $ | 64,204 | |||||||
Trade names | 26,486 | 9,436 | 17,050 | ||||||||||
Vendor relationships | 15,297 | 5,977 | 9,320 | ||||||||||
Non-competition agreements | 2,789 | 1,694 | 1,095 | ||||||||||
Total Intangibles | $ | 151,798 | $ | 60,129 | $ | 91,669 | |||||||
June 30, 2013 | Amount | Accumulated | Net Book | ||||||||||
Amortization | Value | ||||||||||||
Finite-Lived Intangibles: | |||||||||||||
Customer relationships | $ | 100,854 | $ | 38,844 | $ | 62,010 | |||||||
Trade names | 26,690 | 8,643 | 18,047 | ||||||||||
Vendor relationships | 15,433 | 5,443 | 9,990 | ||||||||||
Non-competition agreements | 4,743 | 3,523 | 1,220 | ||||||||||
Total Intangibles | $ | 147,720 | $ | 56,453 | $ | 91,267 | |||||||
Amounts include the impact of foreign currency translation. Fully amortized amounts are written off. | |||||||||||||
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | ' | ||||||||||||
During the six month period ended December 31, 2013, the Company acquired intangible assets with a preliminary acquisition cost allocation and weighted-average life as follows: | |||||||||||||
Acquisition Cost Allocation | Weighted-Average Life | ||||||||||||
Customer relationships | $ | 7,000 | 20 years | ||||||||||
Trade names | 120 | 5 years | |||||||||||
Non-competition agreements | 250 | 5 years | |||||||||||
Total Intangibles Acquired | $ | 7,370 | 19 years | ||||||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | ||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||
Changes in the accumulated other comprehensive income (loss), are comprised of the following: | |||||||||||||||||||||||||
Three Months Ended December 31, 2013 | |||||||||||||||||||||||||
Foreign currency translation adjustment | Unrealized gain (loss) on securities available for sale | Postemployment benefits | Total Accumulated other comprehensive income (loss) | ||||||||||||||||||||||
Balance at September 30, 2013 | $ | 910 | $ | (29 | ) | $ | (3,671 | ) | $ | (2,790 | ) | ||||||||||||||
Other comprehensive income (loss) | (7,410 | ) | 42 | (7,368 | ) | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | — | 58 | 58 | |||||||||||||||||||||
Net current-period other comprehensive income (loss), net of taxes | (7,410 | ) | 42 | 58 | (7,310 | ) | |||||||||||||||||||
Balance at December 31, 2013 | $ | (6,500 | ) | $ | 13 | $ | (3,613 | ) | $ | (10,100 | ) | ||||||||||||||
Six Months Ended December 31, 2013 | |||||||||||||||||||||||||
Foreign currency translation adjustment | Unrealized gain (loss) on securities available for sale | Postemployment benefits | Total Accumulated other comprehensive income (loss) | ||||||||||||||||||||||
Balance at July 1, 2013 | $ | 360 | $ | (52 | ) | $ | (3,729 | ) | $ | (3,421 | ) | ||||||||||||||
Other comprehensive income (loss) | (6,860 | ) | 65 | (6,795 | ) | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | — | 116 | 116 | |||||||||||||||||||||
Net current-period other comprehensive income (loss), net of taxes | (6,860 | ) | 65 | 116 | (6,679 | ) | |||||||||||||||||||
Balance at December 31, 2013 | $ | (6,500 | ) | $ | 13 | $ | (3,613 | ) | $ | (10,100 | ) | ||||||||||||||
Schedule of Comprehensive Income (Loss) [Table Text Block] | ' | ||||||||||||||||||||||||
Details of other comprehensive income (loss) are as follows: | |||||||||||||||||||||||||
Three Months Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Pre-Tax Amount | Tax Expense (Benefit) | Net Amount | Pre-Tax Amount | Tax Expense (Benefit) | Net Amount | ||||||||||||||||||||
Foreign currency translation adjustments | $ | (7,410 | ) | $ | — | $ | (7,410 | ) | $ | (594 | ) | $ | — | $ | (594 | ) | |||||||||
Postemployment benefits: | |||||||||||||||||||||||||
Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs | 96 | 38 | 58 | 218 | 85 | 133 | |||||||||||||||||||
Unrealized gain (loss) on investment securities available for sale | 65 | 23 | 42 | — | — | — | |||||||||||||||||||
Other comprehensive income (loss) | $ | (7,249 | ) | $ | 61 | $ | (7,310 | ) | $ | (376 | ) | $ | 85 | $ | (461 | ) | |||||||||
Six Months Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Pre-Tax Amount | Tax Expense (Benefit) | Net Amount | Pre-Tax Amount | Tax Expense (Benefit) | Net Amount | ||||||||||||||||||||
Foreign currency translation adjustments | $ | (6,860 | ) | $ | — | $ | (6,860 | ) | $ | 8,408 | $ | — | $ | 8,408 | |||||||||||
Postemployment benefits: | |||||||||||||||||||||||||
Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs | 191 | 75 | 116 | 436 | 170 | 266 | |||||||||||||||||||
Unrealized gain (loss) on investment securities available for sale | 99 | 34 | 65 | 23 | 9 | 14 | |||||||||||||||||||
Other comprehensive income (loss) | $ | (6,570 | ) | $ | 109 | $ | (6,679 | ) | $ | 8,867 | $ | 179 | $ | 8,688 | |||||||||||
Benefit_Plans_Tables
Benefit Plans (Tables) | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Net periodic costs | ' | ||||||||||||||||
The following table provides summary disclosures of the net periodic postemployment costs recognized for the Company’s postemployment benefit plans: | |||||||||||||||||
Pension Benefits | Retiree Health Care | ||||||||||||||||
Benefits | |||||||||||||||||
Three Months Ended December 31, | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Components of net periodic cost: | |||||||||||||||||
Service cost | $ | 19 | $ | 20 | $ | 12 | $ | 20 | |||||||||
Interest cost | 295 | 315 | 34 | 47 | |||||||||||||
Expected return on plan assets | (104 | ) | (101 | ) | — | — | |||||||||||
Recognized net actuarial loss (gain) | 153 | 184 | (10 | ) | (14 | ) | |||||||||||
Amortization of prior service cost | 19 | 21 | (67 | ) | 27 | ||||||||||||
Net periodic cost | $ | 382 | $ | 439 | $ | (31 | ) | $ | 80 | ||||||||
Pension Benefits | Retiree Health Care | ||||||||||||||||
Benefits | |||||||||||||||||
Six Months Ended December 31, 2013 | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Components of net periodic cost: | |||||||||||||||||
Service cost | $ | 38 | $ | 39 | $ | 24 | $ | 40 | |||||||||
Interest cost | 590 | 630 | 69 | 94 | |||||||||||||
Expected return on plan assets | (208 | ) | (202 | ) | — | — | |||||||||||
Recognized net actuarial loss (gain) | 306 | 368 | (19 | ) | (27 | ) | |||||||||||
Amortization of prior service cost | 39 | 42 | (135 | ) | 54 | ||||||||||||
Net periodic cost | $ | 765 | $ | 877 | $ | (61 | ) | $ | 161 | ||||||||
Segment_and_Geographic_Informa1
Segment and Geographic Information (Tables) | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment financial information | ' | ||||||||||||||||
Three Months Ended | Service Center Based Distribution | Fluid Power Businesses | Total | ||||||||||||||
December 31, 2013 | |||||||||||||||||
Net sales | $ | 465,955 | $ | 115,994 | $ | 581,949 | |||||||||||
Operating income for reportable segments | 25,569 | 10,364 | 35,933 | ||||||||||||||
Depreciation and amortization of property | 2,988 | 373 | 3,361 | ||||||||||||||
Capital expenditures | 2,340 | 215 | 2,555 | ||||||||||||||
December 31, 2012 | |||||||||||||||||
Net sales | $ | 480,476 | $ | 109,041 | $ | 589,517 | |||||||||||
Operating income for reportable segments | 28,367 | 8,615 | 36,982 | ||||||||||||||
Depreciation and amortization of property | 2,565 | 449 | 3,014 | ||||||||||||||
Capital expenditures | 2,880 | 71 | 2,951 | ||||||||||||||
Six Months Ended | Service Center Based Distribution | Fluid Power Businesses | Total | ||||||||||||||
December 31, 2013 | |||||||||||||||||
Net sales | $ | 958,027 | $ | 229,227 | $ | 1,187,254 | |||||||||||
Operating income for reportable segments | 53,941 | 19,821 | 73,762 | ||||||||||||||
Assets used in business | 864,996 | 209,163 | 1,074,159 | ||||||||||||||
Depreciation and amortization of property | 5,987 | 805 | 6,792 | ||||||||||||||
Capital expenditures | 3,734 | 392 | 4,126 | ||||||||||||||
December 31, 2012 | |||||||||||||||||
Net sales | $ | 978,302 | $ | 221,734 | $ | 1,200,036 | |||||||||||
Operating income for reportable segments | 62,088 | 19,151 | 81,239 | ||||||||||||||
Assets used in business | 834,839 | 202,787 | 1,037,626 | ||||||||||||||
Depreciation and amortization of property | 5,129 | 907 | 6,036 | ||||||||||||||
Capital expenditures | 6,594 | 249 | 6,843 | ||||||||||||||
Reconciliation of operating income for reportable segments to the consolidated income before income taxes | ' | ||||||||||||||||
A reconciliation of operating income for reportable segments to the condensed consolidated income before income taxes is as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Operating income for reportable segments | $ | 35,933 | $ | 36,982 | $ | 73,762 | $ | 81,239 | |||||||||
Adjustment for: | |||||||||||||||||
Intangible amortization—Service Center Based Distribution | 1,887 | 1,304 | 3,382 | 2,527 | |||||||||||||
Intangible amortization—Fluid Power Businesses | 1,194 | 1,847 | 2,948 | 3,680 | |||||||||||||
Corporate and other expense (income), net | (6,985 | ) | (6,738 | ) | (11,944 | ) | (9,855 | ) | |||||||||
Total operating income | 39,837 | 40,569 | 79,376 | 84,887 | |||||||||||||
Interest (income) expense, net | (152 | ) | 15 | (91 | ) | 40 | |||||||||||
Other (income) expense, net | (270 | ) | (427 | ) | (1,361 | ) | (886 | ) | |||||||||
Income before income taxes | $ | 40,259 | $ | 40,981 | $ | 80,828 | $ | 85,733 | |||||||||
Net sales are presented in geographic areas | ' | ||||||||||||||||
Net sales are presented in geographic areas based on the location of the facility shipping the product and are as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Geographic Areas: | |||||||||||||||||
United States | $ | 479,488 | $ | 478,318 | $ | 980,539 | $ | 977,854 | |||||||||
Canada | 67,770 | 74,140 | 137,517 | 148,351 | |||||||||||||
Other countries | 34,691 | 37,059 | 69,198 | 73,831 | |||||||||||||
Total | $ | 581,949 | $ | 589,517 | $ | 1,187,254 | $ | 1,200,036 | |||||||||
Other countries consisted of Mexico, Australia and New Zealand |
Other_Income_Expense_Net_Table
Other (Income) Expense, Net (Tables) | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Other Income and Expenses [Abstract] | ' | ||||||||||||||||
Other expense (income), net | ' | ||||||||||||||||
Other (income) expense, net consists of the following: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Unrealized (gain) loss on assets held in rabbi trust for a nonqualified deferred compensation plan | $ | (649 | ) | $ | (140 | ) | $ | (1,245 | ) | $ | (580 | ) | |||||
Foreign currency transaction (gains) losses | 302 | (343 | ) | 907 | (425 | ) | |||||||||||
Elimination of one-month Canadian reporting lag effective July 1, 2013 | — | — | (1,167 | ) | — | ||||||||||||
Other, net | 77 | 56 | 144 | 119 | |||||||||||||
Total other income, net | $ | (270 | ) | $ | (427 | ) | $ | (1,361 | ) | $ | (886 | ) |
Basis_of_Presentation_Changes_
Basis of Presentation Changes in Accounting Principle (Details) (USD $) | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended |
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | |
Net Sales Impact [Member] [Member] | Net Sales Impact [Member] [Member] | Operating Income Impact [Member] | Operating Income Impact [Member] | Net Income Impact [Member] | Net Income Impact [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' | ' | ' | ' | ' | ' | ' |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | $1,167,000 | ' | ' | ' | ' | ' | ' |
Impact of Retrospective Adjustment | ' | $1,400,000 | $2,900,000 | $400,000 | $1,200,000 | $300,000 | $1,200,000 |
Goodwill_and_Intangibles_Detai
Goodwill and Intangibles (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Changes in the carrying amount of goodwill by reportable segment | ' |
Balance at July 1, 2013 | $106,849 |
Goodwill acquired during the period | 5,590 |
Other, primarily currency translation | -1,083 |
Balance at December 31, 2013 | 111,356 |
Service Center Based Distribution Segment [Member] | ' |
Changes in the carrying amount of goodwill by reportable segment | ' |
Balance at July 1, 2013 | 105,920 |
Goodwill acquired during the period | 5,590 |
Other, primarily currency translation | -1,083 |
Balance at December 31, 2013 | 110,427 |
Fluid Power Businesses Segment [Member] | ' |
Changes in the carrying amount of goodwill by reportable segment | ' |
Balance at July 1, 2013 | 929 |
Goodwill acquired during the period | ' |
Other, primarily currency translation | ' |
Balance at December 31, 2013 | $929 |
Goodwill_and_Intangibles_Detai1
Goodwill and Intangibles (Details 1) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Amortization details resulting from business combinations | ' | ' |
Amount | $151,798 | $147,720 |
Accumulated Amortization | 60,129 | 56,453 |
Net Book Value | 91,669 | 91,267 |
Total Intangible | 91,669 | 91,267 |
Customer relationships | ' | ' |
Amortization details resulting from business combinations | ' | ' |
Amount | 107,226 | 100,854 |
Accumulated Amortization | 43,022 | 38,844 |
Net Book Value | 64,204 | 62,010 |
Trade names | ' | ' |
Amortization details resulting from business combinations | ' | ' |
Amount | 26,486 | 26,690 |
Accumulated Amortization | 9,436 | 8,643 |
Net Book Value | 17,050 | 18,047 |
Vendor relationships | ' | ' |
Amortization details resulting from business combinations | ' | ' |
Amount | 15,297 | 15,433 |
Accumulated Amortization | 5,977 | 5,443 |
Net Book Value | 9,320 | 9,990 |
Non-competition agreements | ' | ' |
Amortization details resulting from business combinations | ' | ' |
Amount | 2,789 | 4,743 |
Accumulated Amortization | 1,694 | 3,523 |
Net Book Value | $1,095 | $1,220 |
Goodwill_and_Intangibles_Goodw
Goodwill and Intangibles Goodwill and Intangibles (Details 2) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Acquisition Cost Allocation | $7,370 |
Weighted-Average Life | '19 years |
Customer Relationships [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Acquisition Cost Allocation | 7,000 |
Weighted-Average Life | '20 years |
Trade Names [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Acquisition Cost Allocation | 120 |
Weighted-Average Life | '5 years |
Noncompete Agreements [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Acquisition Cost Allocation | $250 |
Weighted-Average Life | '5 years |
Goodwill_and_Intangibles_Detai2
Goodwill and Intangibles (Details Textuals) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Goodwill and Intangibles (Textuals) [Abstract] | ' |
Amortization expense for the remainder of 2014 | $6,500 |
Amortization expense for 2015 | 12,000 |
Amortization expense for 2016 | 11,000 |
Amortization expense for 2017 | 10,200 |
Amortization expense for 2018 | 9,000 |
Amortization expense for 2019 | 8,000 |
Fluid Power Businesses [Member] | ' |
Goodwill [Line Items] | ' |
Accumulated goodwill impairment losses | $36,605 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Level 1 [Member], Recurring [Member], USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Level 1 [Member] | Recurring [Member] | ' | ' |
Fair Value Measurements (Textuals) [Line Items] | ' | ' |
Marketable securities | $11,582 | $10,483 |
Shareholders_Equity_Details_Te
Shareholders' Equity (Details Textuals ) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Balance at beginning of period | ' | ' | ($3,421) | ' |
Other comprehensive income (loss), unrealized gain (loss) on securities available for sale) | 42 | 0 | 65 | 14 |
Net current-period other comprehensive income (loss), net of taxes, foreign currency translation adjustment | -7,410 | -594 | -6,860 | 8,408 |
Net current-period other comprehensive income (loss), net of taxes, total accumulated other comprehensive income (loss) | -7,310 | -461 | -6,679 | 8,688 |
Balance at December 31, 2013 | -10,100 | ' | -10,100 | ' |
Foreign Currency Translation Adjustment [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Balance at beginning of period | 910 | ' | 360 | ' |
Other comprehensive income (loss), foreign currency translation adjustment | -7,410 | ' | -6,860 | ' |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | ' | 0 | ' |
Net current-period other comprehensive income (loss), net of taxes, foreign currency translation adjustment | -7,410 | ' | -6,860 | ' |
Balance at December 31, 2013 | -6,500 | ' | -6,500 | ' |
Unrealized gain (loss) on securities available for sale [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Balance at beginning of period | -29 | ' | -52 | ' |
Other comprehensive income (loss), unrealized gain (loss) on securities available for sale) | 42 | ' | 65 | ' |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | ' | 0 | ' |
Net current-period other comprehensive income (loss), net of taxes, Unrealized gain (loss) on securities available for sale | 42 | ' | 65 | ' |
Balance at December 31, 2013 | 13 | ' | 13 | ' |
Postemployment benefits [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Balance at beginning of period | -3,671 | ' | -3,729 | ' |
Other Comprehensive Income (Loss), Postemployment Benefits, Net of Tax, Before Reclassification Adjustments | ' | ' | ' | ' |
Amounts reclassified from accumulated other comprehensive income (loss) | 58 | ' | 116 | ' |
Net current-period other comprehensive income (loss), net of taxes, postemployment benefits | 58 | ' | 116 | ' |
Balance at December 31, 2013 | -3,613 | ' | -3,613 | ' |
Total Accumulated other comprehensive income (loss) [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Balance at beginning of period | -2,790 | ' | -3,421 | ' |
Other comprehensive income (loss), total accumulated other comprehensive income (loss) | -7,368 | ' | -6,795 | ' |
Amounts reclassified from accumulated other comprehensive income (loss) | 58 | ' | 116 | ' |
Net current-period other comprehensive income (loss), net of taxes, total accumulated other comprehensive income (loss) | -7,310 | ' | -6,679 | ' |
Balance at December 31, 2013 | ($10,100) | ' | ($10,100) | ' |
Shareholders_Equity_Other_Comp
Shareholders' Equity Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Equity [Abstract] | ' | ' | ' | ' |
Foreign currency translation adjustments, before Tax | ($7,410) | ($594) | ($6,860) | $8,408 |
Foreign currency translation adjustments, Tax | 0 | 0 | 0 | 0 |
Foreign currency translation adjustments, Net of Tax | -7,410 | -594 | -6,860 | 8,408 |
Postemployment benefits: | ' | ' | ' | ' |
Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs, before tax | 96 | 218 | 191 | 436 |
Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs, tax | 38 | 85 | 75 | 170 |
Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs, net of tax | 58 | 133 | 116 | 266 |
Unrealized gain (loss) on investment securities available for sale, before Tax | 65 | 0 | 99 | 23 |
Unrealized gain (loss) on investment securities available for sale, Tax | 23 | 0 | 34 | 9 |
Unrealized gain (loss) on investment securities available for sale, Net of Tax | 42 | 0 | 65 | 14 |
Other comprehensive income (loss), before tax | -7,249 | -376 | -6,570 | 8,867 |
Other comprehensive income (loss), tax | 61 | 85 | 109 | 179 |
Other comprehensive income (loss), net of tax | ($7,310) | ($461) | ($6,679) | $8,688 |
Shareholders_Equity_Antidiluti
Shareholders' Equity Antidilutive Shares (Details Textuals) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Equity [Abstract] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 272 | 171 | 272 | 171 |
Benefit_Plans_Details
Benefit Plans (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Benefits [Member] | ' | ' | ' | ' |
Components of net periodic cost: | ' | ' | ' | ' |
Service cost | $19 | $20 | $38 | $39 |
Interest cost | 295 | 315 | 590 | 630 |
Expected return on plan assets | -104 | -101 | -208 | -202 |
Recognized net actuarial loss (gain) | 153 | 184 | 306 | 368 |
Amortization of prior service cost | 19 | 21 | 39 | 42 |
Net periodic cost | 382 | 439 | 765 | 877 |
Retiree Health Care Benefits [Member] | ' | ' | ' | ' |
Components of net periodic cost: | ' | ' | ' | ' |
Service cost | 12 | 20 | 24 | 40 |
Interest cost | 34 | 47 | 69 | 94 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Recognized net actuarial loss (gain) | -10 | -14 | -19 | -27 |
Amortization of prior service cost | -67 | 27 | -135 | 54 |
Net periodic cost | ($31) | $80 | ($61) | $161 |
Benefit_Plans_Details_Textuals
Benefit Plans (Details Textuals) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Jun. 30, 2014 |
Pension Plans, Defined Benefit [Member] | ' | ' |
Benefit Plans (Textuals) [Abstract] | ' | ' |
Contribution to benefit plan | $5,295 | ' |
Expected contribution to benefit plans for remainder of fiscal year | ' | 1,400 |
Retiree Health Care Benefits [Member] | ' | ' |
Benefit Plans (Textuals) [Abstract] | ' | ' |
Contribution to benefit plan | 100 | ' |
Expected contribution to benefit plans for remainder of fiscal year | ' | $150 |
Segment_and_Geographic_Informa2
Segment and Geographic Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 |
Segment financial information | ' | ' | ' | ' | ' |
Net sales | $581,949 | $589,517 | $1,187,254 | $1,200,036 | ' |
Operating income for reportable segments | 39,837 | 40,569 | 79,376 | 84,887 | ' |
Assets used in business | 1,074,159 | 1,037,626 | 1,074,159 | 1,037,626 | 1,058,706 |
Depreciation and amortization of property | 3,361 | 3,014 | 6,792 | 6,036 | ' |
Capital expenditures | 2,555 | 2,951 | 4,126 | 6,843 | ' |
Operating Segments [Member] | ' | ' | ' | ' | ' |
Segment financial information | ' | ' | ' | ' | ' |
Operating income for reportable segments | 35,933 | 36,982 | 73,762 | 81,239 | ' |
Service Center Based Distribution [Member] | ' | ' | ' | ' | ' |
Segment financial information | ' | ' | ' | ' | ' |
Net sales | 465,955 | 480,476 | 958,027 | 978,302 | ' |
Operating income for reportable segments | 25,569 | 28,367 | 53,941 | 62,088 | ' |
Assets used in business | 864,996 | 834,839 | 864,996 | 834,839 | ' |
Depreciation and amortization of property | 2,988 | 2,565 | 5,987 | 5,129 | ' |
Capital expenditures | 2,340 | 2,880 | 3,734 | 6,594 | ' |
Fluid Power Businesses [Member] | ' | ' | ' | ' | ' |
Segment financial information | ' | ' | ' | ' | ' |
Net sales | 115,994 | 109,041 | 229,227 | 221,734 | ' |
Operating income for reportable segments | 10,364 | 8,615 | 19,821 | 19,151 | ' |
Assets used in business | 209,163 | 202,787 | 209,163 | 202,787 | ' |
Depreciation and amortization of property | 373 | 449 | 805 | 907 | ' |
Capital expenditures | $215 | $71 | $392 | $249 | ' |
Segment_and_Geographic_Informa3
Segment and Geographic Information (Details 1) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of operating income for reportable segments to the consolidated income before income taxes | ' | ' | ' | ' |
Total operating income | $39,837 | $40,569 | $79,376 | $84,887 |
Adjustment for: | ' | ' | ' | ' |
Intangible amortization | ' | ' | 6,330 | 6,207 |
Corporate and other expense (income), net | -6,985 | -6,738 | -11,944 | -9,855 |
Interest (Income) Expense, net | -152 | 15 | -91 | 40 |
Other Income, net | -270 | -427 | -1,361 | -886 |
Income before income taxes | 40,259 | 40,981 | 80,828 | 85,733 |
Operating Segments [Member] | ' | ' | ' | ' |
Reconciliation of operating income for reportable segments to the consolidated income before income taxes | ' | ' | ' | ' |
Total operating income | 35,933 | 36,982 | 73,762 | 81,239 |
Service Center Based Distribution [Member] | ' | ' | ' | ' |
Reconciliation of operating income for reportable segments to the consolidated income before income taxes | ' | ' | ' | ' |
Total operating income | 25,569 | 28,367 | 53,941 | 62,088 |
Adjustment for: | ' | ' | ' | ' |
Intangible amortization | 1,887 | 1,304 | 3,382 | 2,527 |
Fluid Power Businesses [Member] | ' | ' | ' | ' |
Reconciliation of operating income for reportable segments to the consolidated income before income taxes | ' | ' | ' | ' |
Total operating income | 10,364 | 8,615 | 19,821 | 19,151 |
Adjustment for: | ' | ' | ' | ' |
Intangible amortization | $1,194 | $1,847 | $2,948 | $3,680 |
Segment_and_Geographic_Informa4
Segment and Geographic Information (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Net sales are presented in geographic areas | ' | ' | ' | ' |
Net Sales | $581,949 | $589,517 | $1,187,254 | $1,200,036 |
United States | ' | ' | ' | ' |
Net sales are presented in geographic areas | ' | ' | ' | ' |
Net Sales | 479,488 | 478,318 | 980,539 | 977,854 |
Canada | ' | ' | ' | ' |
Net sales are presented in geographic areas | ' | ' | ' | ' |
Net Sales | 67,770 | 74,140 | 137,517 | 148,351 |
Other countries | ' | ' | ' | ' |
Net sales are presented in geographic areas | ' | ' | ' | ' |
Net Sales | $34,691 | $37,059 | $69,198 | $73,831 |
Segment_and_Geographic_Informa5
Segment and Geographic Information (Details Textuals) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment and Geographic Information (Textuals) [Abstract] | ' | ' | ' | ' |
Sales primarily from businesses segment | $5,681 | $4,803 | $11,110 | $8,732 |
Other_Income_Expense_Net_Detai
Other (Income) Expense, Net (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Income and Expenses [Abstract] | ' | ' | ' | ' |
Unrealized (gain) loss on assets held in rabbi trust for a nonqualified deferred compensation plan | ($649) | ($140) | ($1,245) | ($580) |
Foreign currency transaction (gains) losses | 302 | -343 | 907 | -425 |
Elimination of one-month Canadian reporting lag effective July 1, 2013 | ' | ' | -1,167 | ' |
Other, net | 77 | 56 | 144 | 119 |
Total other income, net | ($270) | ($427) | ($1,361) | ($886) |