Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2016 | Apr. 15, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | APPLIED INDUSTRIAL TECHNOLOGIES INC | |
Entity Central Index Key | 109,563 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 39,027,435 |
Condensed Statements of Consoli
Condensed Statements of Consolidated Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||||
Net Sales | $ 633,172 | $ 679,994 | $ 1,885,422 | $ 2,074,021 |
Cost of Sales | 458,379 | 492,631 | 1,356,450 | 1,496,013 |
Gross Profit | 174,793 | 187,363 | 528,972 | 578,008 |
Selling, Distribution and Administrative, including depreciation | 143,031 | 143,591 | 417,822 | 441,264 |
Goodwill Impairment | 64,794 | 0 | 64,794 | 0 |
Operating (Loss) Income | (33,032) | 43,772 | 46,356 | 136,744 |
Interest Expense, net | 2,359 | 2,121 | 6,704 | 5,738 |
Other Expense (Income), net | 65 | (887) | 1,124 | (263) |
(Loss) Income Before Income Taxes | (35,456) | 42,538 | 38,528 | 131,269 |
Income Tax Expense | 9,272 | 13,928 | 35,018 | 43,830 |
Net (Loss) Income | $ (44,728) | $ 28,610 | $ 3,510 | $ 87,439 |
Net (Loss) Income Per Share - Basic | $ (1.14) | $ 0.70 | $ 0.09 | $ 2.12 |
Net (Loss) Income Per Share - Diluted | (1.14) | 0.70 | 0.09 | 2.11 |
Cash dividends per common share | $ 0.28 | $ 0.27 | $ 0.82 | $ 0.77 |
Weighted average common shares outstanding for basic computation | 39,107 | 40,800 | 39,328 | 41,168 |
Dilutive effect of potential common shares | 0 | 267 | 220 | 309 |
Weighted average common shares outstanding for diluted computation | 39,107 | 41,067 | 39,548 | 41,477 |
Condensed Statements of Consol3
Condensed Statements of Consolidated Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Condensed Statements of Consolidated Comprehensive Income [Abstract] | ||||
Net (loss) income per the condensed statements of consolidated income | $ (44,728) | $ 28,610 | $ 3,510 | $ 87,439 |
Other comprehensive income (loss), before tax: | ||||
Foreign currency translation adjustments | 13,014 | (26,105) | (21,245) | (62,768) |
Postemployment benefits: | ||||
Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs | 130 | 71 | 387 | 214 |
Unrealized gain (loss) on investment securities available for sale | 39 | (9) | (24) | 44 |
Total of other comprehensive income (loss), before tax | 13,183 | (26,043) | (20,882) | (62,510) |
Income tax expense related to items of other comprehensive income | 65 | 24 | 143 | 98 |
Other comprehensive income (loss), net of tax | 13,118 | (26,067) | (21,025) | (62,608) |
Comprehensive (loss) income, net of tax | $ (31,610) | $ 2,543 | $ (17,515) | $ 24,831 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Current assets | ||
Cash and cash equivalents | $ 62,932 | $ 69,470 |
Accounts receivable, less allowances of $11,479 and $10,621 | 354,553 | 376,305 |
Inventories | 346,979 | 362,419 |
Other current assets | 39,377 | 37,816 |
Total current assets | 803,841 | 846,010 |
Property, less accumulated depreciation of $162,425 and $164,343 | 108,132 | 104,447 |
Identifiable intangibles, net | 195,726 | 198,828 |
Goodwill | 199,236 | 254,406 |
Deferred tax assets | 10,109 | 10,980 |
Other assets | 17,295 | 17,885 |
TOTAL ASSETS | 1,334,339 | 1,432,556 |
Current liabilities | ||
Accounts payable | 134,871 | 179,825 |
Current portion of long term debt | 3,351 | 3,349 |
Compensation and related benefits | 51,401 | 63,780 |
Other current liabilities | 62,852 | 63,118 |
Total current liabilities | 252,475 | 310,072 |
Long-term debt | 367,820 | 317,646 |
Postemployment benefits | 19,282 | 19,627 |
Other liabilities | 37,920 | 43,883 |
TOTAL LIABILITIES | 677,497 | 691,228 |
Shareholders’ Equity | ||
Preferred stock—no par value; 2,500 shares authorized; none issued or outstanding | 0 | 0 |
Common stock—no par value; 80,000 shares authorized; 54,213 shares issued | 10,000 | 10,000 |
Additional paid-in capital | 161,735 | 160,072 |
Retained earnings | 940,696 | 969,548 |
Treasury shares—at cost (15,186 and 14,308 shares) | (374,393) | (338,121) |
Accumulated other comprehensive loss | (81,196) | (60,171) |
TOTAL SHAREHOLDERS’ EQUITY | 656,842 | 741,328 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 1,334,339 | $ 1,432,556 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Current Assets: | ||
Accounts Receivable, less allowances | $ 11,479 | $ 10,621 |
Noncurrent Assets: | ||
Property, less accumulated depreciation | $ 162,425 | $ 164,343 |
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 | 15,186,000 | 14,308,000 |
Condensed Statements of Consol6
Condensed Statements of Consolidated Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash Flows from Operating Activities | ||
Net income | $ 3,510 | $ 87,439 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property | 12,041 | 12,792 |
Amortization of intangibles | 19,065 | 19,412 |
Goodwill Impairment | 64,794 | 0 |
Unrealized foreign exchange transactions loss (gain) | 494 | (790) |
Amortization of stock options and appreciation rights | 1,241 | 1,381 |
Loss on sale of property | 275 | 45 |
Other share-based compensation expense | 2,073 | 1,123 |
Changes in operating assets and liabilities, net of acquisitions | (16,231) | (83,601) |
Other, net | 3,097 | 1,511 |
Net Cash provided by Operating Activities | 90,359 | 39,312 |
Cash Flows from Investing Activities | ||
Property purchases | (9,441) | (11,009) |
Proceeds from property sales | 372 | 451 |
Acquisition of businesses, net of cash acquired | (56,142) | (166,479) |
Net Cash used in Investing Activities | (65,211) | (177,037) |
Cash Flows from Financing Activities | ||
Borrowings under revolving credit facility | 23,000 | 51,000 |
Long-term debt borrowings | 125,000 | 170,238 |
Long-term debt repayments | (97,826) | (2,274) |
Purchases of treasury shares | (37,464) | (59,235) |
Dividends paid | (32,342) | (31,807) |
Acquisition holdback payments | (10,658) | (995) |
Other, net | 1,191 | 770 |
Net Cash (used in) provided by Financing Activities | (29,099) | 127,697 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (2,587) | (5,996) |
Decrease in Cash and Cash Equivalents | (6,538) | (16,024) |
Cash and Cash Equivalents at Beginning of Period | 69,470 | 71,189 |
Cash and Cash Equivalents at End of Period | $ 62,932 | $ 55,165 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 , and the results of its operations for the three and nine month periods ended March 31, 2016 and 2015 and its cash flows for the nine month periods ended March 31, 2016 and 2015 , have been included. The condensed consolidated balance sheet as of June 30, 2015 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, 2015 . Operating results for the three and nine month periods ended March 31, 2016 are not necessarily indicative of the results that may be expected for the remainder of the fiscal year ending June 30, 2016 . Change in Accounting Principle - Deferred Income Taxes In November 2015, the FASB issued its final standard on the simplification of the presentation of deferred income taxes. The standard, issued as ASU 2015-17, requires that deferred tax liabilities and assets be classified as non-current in the condensed consolidated balance sheet. This update is effective for financial statement periods beginning after December 15, 2016, and interim periods within those fiscal years, with early adoption permitted. The Company early adopted ASU 2015-17 in the second quarter of fiscal 2016. The Company applied the new standard retrospectively to the prior period presented in the Condensed Consolidated Balance Sheets; the impact of this change in accounting principle on balances previously reported as of June 30, 2015 was as follows: As of June 30, 2015 Balance Sheet Line Item As Previously Reported Restated Change Other current assets $ 51,111 $ 37,816 $ (13,295 ) Deferred tax assets $ 97 $ 10,980 $ 10,883 Other liabilities $ 46,295 $ 43,883 $ (2,412 ) 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. Other Recently Adopted Accounting Guidance In June 2014, the FASB issued its final standard on accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The standard, issued as ASU 2014-12, clarifies that a performance target that affects vesting and that can be achieved after the requisite service period, should be treated as a performance condition. The update is effective for financial statement periods beginning after December 15, 2015, with early adoption permitted. The Company adopted ASU 2014-12 in the first quarter of fiscal 2016. The adoption of this update did not have an impact on the financial statements of the Company. New Accounting Pronouncements In May 2014, the FASB issued its final standard on the recognition of revenue from contracts with customers. In April 2015, the FASB issued its final standard on simplifying the presentation of debt issue costs. This standard, issued as ASU 2015-03, requires that all costs incurred to issue debt be presented in the balance sheet as a direct reduction from the carrying value of the debt, similar to the presentation of debt discounts. This update is effective for financial statement periods beginning after December 15, 2015, and interim periods within those fiscal years, with early adoption permitted. The impact of the adoption of this guidance will result in the reclassification of the unamortized debt issuance costs on the consolidated balance sheets, which were $531 and $394 at March 31, 2016 and June 30, 2015 , respectively. In July 2015, the FASB issued its final standard on simplifying the measurement of inventory. This standard, issued as ASU 2015-11, specifies that an entity should measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The new standard does not apply to inventory that is measured using LIFO; therefore, it is not applicable to the Company's U.S. inventory values, but does apply to the Company's foreign inventories which are valued using the average cost method. The update is effective for financial statement periods beginning after December 15, 2016, with earlier application permitted. The Company has not yet determined the impact of this pronouncement on its financial statements and related disclosures. In September 2015, the FASB issued its final standard on simplifying the accounting for measurement-period adjustments for business combinations. This standard, issued as ASU 2015-16, requires that an entity that is the acquirer in a business combination that identifies adjustments to provisional amounts during the measurement period recognize those adjustments in the reporting period in which the amounts are determined. This update further requires that the acquirer record, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The update is effective for financial statement periods beginning after December 15, 2015, and should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this update, with early adoption permitted. When adjustments to provisional amounts occur in the future, the Company will make the adjustments in the appropriate period and include the required disclosures. In January 2016, the FASB issued its final standard on financial instruments. This standard, issued as ASU 2016-01, enhances the reporting model for financial instruments to provide users of financial statements with more decision-useful information and addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The update is effective for financial statement periods beginning after December 15, 2017, with earlier application permitted for only certain aspects of the standard; earlier application of the remaining aspects is not permitted. The Company has not yet determined the impact of this pronouncement on its financial statements and related disclosures. In February 2016, the FASB issued its final standard on accounting for leases. This standard, issued as ASU 2016-02, requires that an entity that is a lessee recognize lease assets and lease liabilities on the balance sheet for all leases and disclose key information about leasing arrangements. The core principle of this update is that a "lessee should recognize the assets and liabilities that arise from leases." This update is effective for financial statement periods beginning after December 15, 2018, with earlier application permitted. The Company has not yet determined the impact of this pronouncement on its financial statements and related disclosures. In March 2016, the FASB issued its final standard on simplifying the accounting for share-based payment awards. This standard, issued as ASU 2016-09, simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification on the statement of cash flows, and accounting for forfeitures. This update is effective for financial statement periods beginning after December 15, 2016, with early adoption permitted. The Company has not yet determined the impact of this pronouncement on its financial statements and related disclosures. |
Business Combinations
Business Combinations | 9 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | BUSINESS COMBINATIONS The operating results of all acquired entities are included within the consolidated operating results of the Company from the date of each respective acquisition. Fiscal 2016 Acquisitions On January 4, 2016, the Company acquired substantially all of the net assets of HUB Industrial Supply ("HUB"), a distributor of consumable industrial products operating from three locations - Lake City, FL, Indianapolis, IN, and Las Vegas, NV. On August 3, 2015, the Company acquired substantially all of the net assets of Atlantic Fasteners Co., Inc. ("Atlantic Fasteners"), a distributor of C-Class consumables including industrial fasteners and related industrial supplies located in Agawam, MA. HUB and Atlantic Fasteners are both included in the Service Center Based Distribution segment. On October 1, 2015, the Company acquired substantially all of the net assets of S.G. Morris Co. ("SGM"). SGM, headquartered in Cleveland, OH, is a distributor of hydraulic components throughout Ohio, Western Pennsylvania and West Virginia and is included in the Fluid Power Businesses Segment. The total combined consideration for these acquisitions was approximately $59,900 , net tangible assets acquired were $22,100 , and intangibles including goodwill were $37,800 based upon preliminary estimated fair values at the acquisition dates, which are subject to adjustment. The total combined consideration includes $3,750 of acquisition holdback payments, included in other current liabilities and other liabilities on the condensed consolidated balance sheets, which will be paid plus interest at various times through October 2018. The Company funded the amounts paid for the acquisitions at closing from borrowings under the revolving credit facility at variable interest rates. The acquisition prices and the results of operations for the acquired entities are not material in relation to the Company's consolidated financial statements. Fiscal 2015 Acquisitions On July 1, 2014, the Company acquired 100% of the outstanding stock of Knox Oil Field Supply Inc. (“Knox”), headquartered in San Angelo, Texas, for total consideration of $132,000 , including cash paid of $118,000 at closing. The primary reason for the acquisition of Knox is to complement and expand the Company’s capabilities to serve the upstream oil and gas industry in the United States. As a distributor of oilfield supplies and related services, this business is included in the Service Center Based Distribution Segment. The Company funded the acquisition by drawing $120,000 from the previously uncommitted shelf facility with Prudential Investment Management at a fixed interest rate of 3.19% with an average seven year life. The remaining $14,000 purchase price will be paid as acquisition holdback payments on the first three anniversaries of the acquisition with interest at a fixed rate of 1.50% ; $7,100 was paid on the first anniversary in the first quarter of fiscal 2016. The following table summarizes the consideration transferred, assets acquired, and liabilities assumed in connection with the acquisition of Knox based on their estimated fair values at the acquisition date: Knox Acquisition Accounts receivable $ 19,100 Inventories 18,800 Property 3,900 Identifiable intangible assets 58,500 Goodwill 63,200 Total assets acquired 163,500 Accounts payable and accrued liabilities 7,200 Deferred income taxes 24,300 Net assets acquired $ 132,000 Purchase price 132,800 Reconciliation of fair value transferred: Working Capital Adjustments (800 ) Total Consideration $ 132,000 None of the goodwill acquired is deductible for income tax purposes. The goodwill recognized is attributable primarily to expected synergies and other benefits that the Company believes will result from the acquisition of Knox. Other acquisitions during fiscal 2015 include the acquisition of substantially all of the net assets of Rodamientos y Derivados del Norte S.A. de C.V., a Mexican distributor of bearings and power transmission products and related products, and Great Southern Bearings / Northam Bearings, a Western Australia distributor of bearings and power transmission products on July 1, 2014 as well as Ira Pump and Supply Inc. ("Ira Pump") a Texas distributor of oilfield pumps and supplies on November 3, 2014. These companies are included in the Service Center Based Distribution Segment. The total combined consideration for these acquistions was approximately $54,900 . Net tangible assets acquired were $21,000 and intangibles including goodwill were $33,900 , based upon estimated fair values at the acquisition dates. The Company funded these acquisitions from borrowings under our existing debt facilities. Total acquisition holdback payments of $6,900 are being paid at various times through July 2017. The results of operations for the Mexican, Australian and Ira Pump acquisitions are not material for any period presented. |
Goodwill and Intangibles
Goodwill and Intangibles | 9 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLES | GOODWILL AND INTANGIBLES The changes in the carrying amount of goodwill for both the Service Center Based Distribution segment and the Fluid Power Businesses segment for the nine month period ended March 31, 2016 are as follows: Service Centers Fluid Power Total Balance at July 1, 2015 $ 253,477 $ 929 $ 254,406 Goodwill acquired during the period 14,939 3,259 18,198 Impairment (64,794 ) — (64,794 ) Other, primarily currency translation (8,574 ) — (8,574 ) Balance at March 31, 2016 $ 195,048 $ 4,188 $ 199,236 The Company has seven (7) reporting units for which an annual goodwill impairment assessment was performed as of January 1, 2016. The Company concluded that five (5) of the reporting units’ fair value substantially exceeded their carrying amounts. The carrying value for two (2) reporting units (Canada service center and Australia/New Zealand service center) exceeded the fair value, indicating there may be goodwill impairment. The fair values of the reporting units in accordance with Step one of the goodwill impairment test were determined using the Income and Market approaches. The income approach employs the discounted cash flow method reflecting projected cash flows expected to be generated by market participants and then adjusted for time value of money factors. The Market approach utilized an analysis of comparable publicly traded companies. Step two of the goodwill impairment test compares the fair value of the reporting unit goodwill with the carrying amount of goodwill. The implied fair value of goodwill is determined in the same manner as in a business combination. The fair value of the reporting unit from Step one is allocated to all of the assets and liabilities of the reporting unit, including unrecognized intangible assets, as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was the purchase price paid to acquire the reporting unit. Step two of the goodwill impairment test for the Canada service center reporting unit was completed in the third quarter of fiscal 2016. The analysis resulted in a goodwill impairment of $56,022 for the Canada service center reporting unit. The non-cash impairment charge is the result of the overall decline in the industrial economy in Canada coupled with the substantial and sustained decline in the oil and gas sector during calendar year 2015. This has led to reduced spending by customers and reduced revenue expectations. The uncertainty regarding the oil and gas industries and overall industrial economy in Canada has also led the reporting unit to reduce expectations. The remaining goodwill for the Canada service center reporting unit at March 31, 2016 is $28,039 . Step two of the goodwill impairment test for the Australia/New Zealand reporting unit was completed in the third quarter of fiscal 2016. The analysis concluded that all of the Australia/New Zealand reporting unit’s goodwill was impaired, and therefore the Company recorded a non-cash impairment expense of $8,772 in the third quarter of fiscal 2016. The impairment charge is primarily the result of the decline in the mining and extraction industries in Australia, reduced spending by customers, and the effects of reduced revenue expectations. The techniques used in the Company's impairment test have incorporated a number of assumptions that the Company believes to be reasonable and to reflect known market conditions at the measurement date. Assumptions in estimating future cash flows are subject to a degree of judgment. The Company makes all efforts to forecast future cash flows as accurately as possible with the information available at the measurement date. The Company evaluates the appropriateness of its assumptions and overall forecasts by comparing projected results of upcoming years with actual results of preceding years. Key Level 3 based assumptions relate to pricing trends, inventory costs, customer demand, and revenue growth. A number of benchmarks from independent industry and other economic publications were also used. Changes in future results, assumptions, and estimates after the measurement date may lead to an outcome where additional impairment charges would be required in future periods. Specifically, actual results may vary from the Company’s forecasts and such variations may be material and unfavorable, thereby triggering the need for future impairment tests where the conclusions may differ in reflection of prevailing market conditions. Further, continued adverse market conditions could result in the recognition of additional impairment if the Company determines that the fair values of its reporting units have fallen below their carrying values. At March 31, 2016 , accumulated goodwill impairment losses, subsequent to fiscal year 2002, totaled $36,605 related to the Fluid Power Businesses segment and $64,794 related to the Service Center Based Distribution segment. The Company’s identifiable intangible assets resulting from business combinations are amortized over their estimated period of benefit and consist of the following: March 31, 2016 Amount Accumulated Amortization Net Book Value Finite-Lived Identifiable Intangibles: Customer relationships $ 236,637 $ 79,541 $ 157,096 Trade names 45,143 15,422 29,721 Vendor relationships 14,217 7,873 6,344 Non-competition agreements 4,867 2,302 2,565 Total Identifiable Intangibles $ 300,864 $ 105,138 $ 195,726 June 30, 2015 Amount Accumulated Amortization Net Book Value Finite-Lived Identifiable Intangibles: Customer relationships $ 225,332 $ 65,789 $ 159,543 Trade names 42,689 13,187 29,502 Vendor relationships 14,465 7,258 7,207 Non-competition agreements 4,578 2,002 2,576 Total Identifiable Intangibles $ 287,064 $ 88,236 $ 198,828 Amounts include the impact of foreign currency translation. Fully amortized amounts are written off. During the nine month period ended March 31, 2016 , the Company acquired identifiable intangible assets with a preliminary acquisition cost allocation and weighted-average life as follows: Acquisition Cost Allocation Weighted-Average Life Customer relationships $ 15,341 15.0 Trade names 3,459 15.0 Non-competition agreements 765 5.0 Total Intangibles Acquired $ 19,565 14.6 Estimated future amortization expense by fiscal year (based on the Company’s identifiable intangible assets as of March 31, 2016 ) for the next five years is as follows: $6,700 for the remainder of 2016 , $24,700 for 2017 , $22,500 for 2018 , $20,700 for 2019 , $18,900 for 2020 and $17,400 for 2021 . |
Debt (Notes)
Debt (Notes) | 9 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | DEBT In December 2015, the Company entered into a new five-year credit facility with a group of banks expiring in December 2020. This agreement provides for a $125,000 unsecured term loan and a $250,000 unsecured revolving credit facility. Borrowings under this agreement carry variable interest rates tied to either LIBOR or prime at the Company's discretion. At March 31, 2016 , the Company had $124,219 outstanding under the term loan and $75,000 outstanding under the revolver. Unused lines under this facility, net of outstanding letters of credit of $3,718 to secure certain insurance obligations, totaled $171,282 at March 31, 2016 , and are available to fund future acquisitions or other capital and operating requirements. The interest rate on the term loan as of March 31, 2016 was 1.44% . The weighted average interest rate on the revolving credit facility outstanding as of March 31, 2016 was 1.37% . The new credit facility replaced the Company's previous term loan and revolving credit facility agreements. The Company had $96,875 outstanding at June 30, 2015 under the previous term loan agreement, which carried a variable interest rate tied to LIBOR and was 1.19% at June 30, 2015 . At June 30, 2015 , the Company had $52,000 outstanding under the previous revolving credit facility. Unused lines under this facility, net of outstanding letters of credit of $3,764 to secure certain insurance obligations, totaled $94,236 at June 30, 2015 and were available to fund future acquisitions or other capital and operating requirements. The weighted average interest rate on the revolving credit facility outstanding as of June 30, 2015 was 1.15% . Additionally, the Company had letters of credit outstanding with a separate bank, not associated with the revolving credit agreement, in the amount of $2,000 as of March 31, 2016 and $1,841 as of June 30, 2015 , in order to secure certain insurance obligations. Other Long-Term Borrowings In April 2014, the Company assumed $2,359 of debt as a part of its headquarters facility acquisition. The 1.5% fixed interest rate note is held by the State of Ohio Development Services Agency, maturing in May 2024. At March 31, 2016 and June 30, 2015 , $1,952 and $2,120 was outstanding, respectively. At March 31, 2016 and June 30, 2015 , the Company had borrowings outstanding under its unsecured shelf facility agreement with Prudential Investment Management of $170,000 . The "Series C" notes have a principal amount of $120,000 and carry a fixed interest rate of 3.19% , and are due in equal principal payments in July 2020, 2021 and 2022. The "Series D" notes have a principal amount of $50,000 and carry a fixed interest rate of 3.21% , and are due in equal principal payments in October 2019 and 2023. As of March 31, 2016 , $50,000 in additional financing was available under this facility. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Marketable securities measured at fair value at March 31, 2016 and June 30, 2015 totaled $8,845 and $9,330 , respectively. 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 accompanying condensed consolidated balance sheets and their fair values are based upon quoted market prices in an active market (Level 1 in the fair value hierarchy). The fair value of the debt outstanding under the shelf facility agreement with Prudential Investment Management approximates carrying value at both March 31, 2016 and June 30, 2015 . (Level 2 in the fair value hierarchy) The revolving credit facility and the term loan contain variable interest rates and their carrying values approximated fair value at both March 31, 2016 and June 30, 2015 (Level 2 in the fair value hierarchy). |
Income Taxes Income Taxes
Income Taxes Income Taxes | 9 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 6. INCOME TAXES The effective income tax rate was a negative 26.2% for the quarter ended March 31, 2016 compared to 32.7% for the quarter ended March 31, 2015 . The effective income tax rate was 90.9% for the nine months ended March 31, 2016 compared to 33.4% for the prior year period ended March 31, 2015 . The current year effective tax rates are due to the recording of $64,794 of goodwill impairment during the quarter, of which $61,252 is not tax deductible. The goodwill impairment decreased the effective tax rate for the quarter ended March 31, 2016 by 61.2% and increased the effective tax rate for the nine months ended March 31, 2016 by 56.0% . The remaining increase in the effective tax rates, adjusted for goodwill impairment, between the current and prior year periods was due to lower foreign earnings and discrete tax items negatively impacting the rate. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 Foreign currency translation adjustment Unrealized (loss) gain on securities available for sale Postemployment benefits Total Accumulated other comprehensive income (loss) Balance at December 31, 2015 $ (91,503 ) $ (45 ) $ (2,766 ) $ (94,314 ) Other comprehensive income 13,014 25 — 13,039 Amounts reclassified from accumulated other comprehensive income (loss) — — 79 79 Net current-period other comprehensive income, net of taxes 13,014 25 79 13,118 Balance at March 31, 2016 $ (78,489 ) $ (20 ) $ (2,687 ) $ (81,196 ) Nine Months Ended March 31, 2016 Foreign currency translation adjustment Unrealized loss on securities available for sale Postemployment benefits Total Accumulated other comprehensive income (loss) Balance at July 1, 2015 $ (57,244 ) $ (4 ) $ (2,923 ) $ (60,171 ) Other comprehensive loss (21,245 ) (16 ) — (21,261 ) Amounts reclassified from accumulated other comprehensive income (loss) — — 236 236 Net current-period other comprehensive (loss) income, net of taxes (21,245 ) (16 ) 236 (21,025 ) Balance at March 31, 2016 $ (78,489 ) $ (20 ) $ (2,687 ) $ (81,196 ) Other Comprehensive Income (Loss) Details of other comprehensive income (loss) are as follows: Three Months Ended March 31, 2016 2015 Pre-Tax Amount Tax Expense Net Amount Pre-Tax Amount Tax Expense (Benefit) Net Amount Foreign currency translation adjustments $ 13,014 $ — $ 13,014 $ (26,105 ) $ — $ (26,105 ) Postemployment benefits: Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs 130 51 79 71 27 44 Unrealized gain (loss) on investment securities available for sale 39 14 25 (9 ) (3 ) (6 ) Other comprehensive income (loss) $ 13,183 $ 65 $ 13,118 $ (26,043 ) $ 24 $ (26,067 ) Nine Months Ended March 31, 2016 2015 Pre-Tax Amount Tax Expense (Benefit) Net Amount Pre-Tax Amount Tax Expense Net Amount Foreign currency translation adjustments $ (21,245 ) $ — $ (21,245 ) $ (62,768 ) $ — $ (62,768 ) Postemployment benefits: Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs 387 151 236 214 83 131 Unrealized gain (loss) on investment securities available for sale (24 ) (8 ) (16 ) 44 15 29 Other comprehensive income (loss) $ (20,882 ) $ 143 $ (21,025 ) $ (62,510 ) $ 98 $ (62,608 ) Anti-dilutive Common Stock Equivalents In the three month period ended March 31, 2015 , stock options and stock appreciation rights related to 450 thousand shares of common stock were not included in the computation of diluted earnings per share for the periods then ended as they were anti-dilutive. In the nine month periods ended March 31, 2016 and 2015 , stock options and stock appreciation rights related to 775 and 487 thousand shares of common stock 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 | 9 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 2015 2016 2015 Components of net periodic cost: Service cost $ 23 $ 24 $ 5 $ 13 Interest cost 216 224 18 24 Expected return on plan assets (122 ) (124 ) — — Recognized net actuarial loss (gain) 228 140 (52 ) (22 ) Amortization of prior service cost 21 21 (67 ) (68 ) Net periodic cost $ 366 $ 285 $ (96 ) $ (53 ) Pension Benefits Retiree Health Care Benefits Nine Months Ended March 31, 2016 2015 2016 2015 Components of net periodic cost: Service cost $ 69 $ 73 $ 17 $ 39 Interest cost 648 672 56 71 Expected return on plan assets (368 ) (371 ) — — Recognized net actuarial loss (gain) 685 419 (158 ) (66 ) Amortization of prior service cost 64 64 (203 ) (203 ) Net periodic cost $ 1,098 $ 857 $ (288 ) $ (159 ) The Company contributed $5,085 to its pension benefit plans and $128 to its retiree health care plans in the nine months ended March 31, 2016 . Expected contributions for the remainder of fiscal 2016 are $220 for the pension benefit plans to fund scheduled retirement payments and $40 for retiree health care plans. |
Segment and Geographic Informat
Segment and Geographic Information | 9 Months Ended |
Mar. 31, 2016 | |
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. Intercompany sales primarily from the Fluid Power Businesses segment to the Service Center Based Distribution segment of $5,574 and $6,124 , in the three months ended March 31, 2016 and 2015 , respectively, and $16,032 and $17,760 in the nine months ended March 31, 2016 and 2015, respectively, have been eliminated in the Segment Financial Information tables below. Three Months Ended Service Center Based Distribution Fluid Power Businesses Total March 31, 2016 Net sales $ 524,074 $ 109,098 $ 633,172 Operating income for reportable segments 22,465 9,701 32,166 Depreciation and amortization of property 3,710 321 4,031 Capital expenditures 3,472 232 3,704 March 31, 2015 Net sales $ 557,088 $ 122,906 $ 679,994 Operating income for reportable segments 33,788 11,751 45,539 Depreciation and amortization of property 4,129 332 4,461 Capital expenditures 2,801 402 3,203 Nine Months Ended Service Center Based Distribution Fluid Power Businesses Total March 31, 2016 Net sales $ 1,565,587 $ 319,835 $ 1,885,422 Operating income for reportable segments 79,767 28,708 108,475 Assets used in business 1,124,228 210,111 1,334,339 Depreciation and amortization of property 11,023 1,018 12,041 Capital expenditures 8,783 658 9,441 March 31, 2015 Net sales $ 1,701,722 $ 372,299 $ 2,074,021 Operating income for reportable segments 105,903 36,908 142,811 Assets used in business 1,256,266 209,887 1,466,153 Depreciation and amortization of property 11,741 1,051 12,792 Capital expenditures 9,875 1,134 11,009 Enterprise resource planning system (ERP) related assets are included in assets used in business and capital expenditures within the Service Center Based Distribution segment. A reconciliation of operating (loss) income for reportable segments to consolidated (loss) income before income taxes is as follows: Three Months Ended Nine Months Ended March 31, March 31, 2016 2015 2016 2015 Operating income for reportable segments $ 32,166 $ 45,539 $ 108,475 $ 142,811 Adjustment for: Intangible amortization—Service Center Based Distribution 5,284 4,811 14,568 14,696 Intangible amortization—Fluid Power Businesses 1,457 1,542 4,497 4,716 Goodwill Impairment—Service Center Based Distribution 64,794 — 64,794 — Corporate and other income, net (6,337 ) (4,586 ) (21,740 ) (13,345 ) Total operating (loss) income (33,032 ) 43,772 46,356 136,744 Interest expense, net 2,359 2,121 6,704 5,738 Other expense (income), net 65 (887 ) 1,124 (263 ) (Loss) Income before income taxes $ (35,456 ) $ 42,538 $ 38,528 $ 131,269 The change in corporate and other income, net is due to changes in the amounts of certain supplier support benefits and 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 Nine Months Ended March 31, March 31, 2016 2015 2016 2015 Geographic Areas: United States $ 537,931 $ 562,563 $ 1,585,699 $ 1,673,927 Canada 60,553 79,957 194,434 282,661 Other countries 34,688 37,474 105,289 117,433 Total $ 633,172 $ 679,994 $ 1,885,422 $ 2,074,021 Other countries consist of Mexico, Australia and New Zealand. |
Other (Income) Expense, Net
Other (Income) Expense, Net | 9 Months Ended |
Mar. 31, 2016 | |
Other Income and Expenses [Abstract] | |
OTHER (INCOME) EXPENSE, NET | OTHER EXPENSE (INCOME), NET Other expense (income), net consists of the following: Three Months Ended Nine Months Ended March 31, March 31, 2016 2015 2016 2015 Unrealized (gain) loss on assets held in rabbi trust for a nonqualified deferred compensation plan $ (75 ) $ (245 ) $ 104 $ (418 ) Foreign currency transactions loss (gain) 307 (474 ) 978 153 Other, net (167 ) (168 ) 42 2 Total other expense (income), net $ 65 $ (887 ) $ 1,124 $ (263 ) |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Change in Accounting Principle - Deferred Income Taxes In November 2015, the FASB issued its final standard on the simplification of the presentation of deferred income taxes. The standard, issued as ASU 2015-17, requires that deferred tax liabilities and assets be classified as non-current in the condensed consolidated balance sheet. This update is effective for financial statement periods beginning after December 15, 2016, and interim periods within those fiscal years, with early adoption permitted. The Company early adopted ASU 2015-17 in the second quarter of fiscal 2016. The Company applied the new standard retrospectively to the prior period presented in the Condensed Consolidated Balance Sheets; the impact of this change in accounting principle on balances previously reported as of June 30, 2015 was as follows: As of June 30, 2015 Balance Sheet Line Item As Previously Reported Restated Change Other current assets $ 51,111 $ 37,816 $ (13,295 ) Deferred tax assets $ 97 $ 10,980 $ 10,883 Other liabilities $ 46,295 $ 43,883 $ (2,412 ) Other Recently Adopted Accounting Guidance In June 2014, the FASB issued its final standard on accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The standard, issued as ASU 2014-12, clarifies that a performance target that affects vesting and that can be achieved after the requisite service period, should be treated as a performance condition. The update is effective for financial statement periods beginning after December 15, 2015, with early adoption permitted. The Company adopted ASU 2014-12 in the first quarter of fiscal 2016. The adoption of this update did not have an impact on the financial statements of the Company. |
Inventory, Policy [Policy Text Block] | 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. |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | New Accounting Pronouncements In May 2014, the FASB issued its final standard on the recognition of revenue from contracts with customers. In April 2015, the FASB issued its final standard on simplifying the presentation of debt issue costs. This standard, issued as ASU 2015-03, requires that all costs incurred to issue debt be presented in the balance sheet as a direct reduction from the carrying value of the debt, similar to the presentation of debt discounts. This update is effective for financial statement periods beginning after December 15, 2015, and interim periods within those fiscal years, with early adoption permitted. The impact of the adoption of this guidance will result in the reclassification of the unamortized debt issuance costs on the consolidated balance sheets, which were $531 and $394 at March 31, 2016 and June 30, 2015 , respectively. In July 2015, the FASB issued its final standard on simplifying the measurement of inventory. This standard, issued as ASU 2015-11, specifies that an entity should measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The new standard does not apply to inventory that is measured using LIFO; therefore, it is not applicable to the Company's U.S. inventory values, but does apply to the Company's foreign inventories which are valued using the average cost method. The update is effective for financial statement periods beginning after December 15, 2016, with earlier application permitted. The Company has not yet determined the impact of this pronouncement on its financial statements and related disclosures. In September 2015, the FASB issued its final standard on simplifying the accounting for measurement-period adjustments for business combinations. This standard, issued as ASU 2015-16, requires that an entity that is the acquirer in a business combination that identifies adjustments to provisional amounts during the measurement period recognize those adjustments in the reporting period in which the amounts are determined. This update further requires that the acquirer record, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The update is effective for financial statement periods beginning after December 15, 2015, and should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this update, with early adoption permitted. When adjustments to provisional amounts occur in the future, the Company will make the adjustments in the appropriate period and include the required disclosures. In January 2016, the FASB issued its final standard on financial instruments. This standard, issued as ASU 2016-01, enhances the reporting model for financial instruments to provide users of financial statements with more decision-useful information and addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The update is effective for financial statement periods beginning after December 15, 2017, with earlier application permitted for only certain aspects of the standard; earlier application of the remaining aspects is not permitted. The Company has not yet determined the impact of this pronouncement on its financial statements and related disclosures. In February 2016, the FASB issued its final standard on accounting for leases. This standard, issued as ASU 2016-02, requires that an entity that is a lessee recognize lease assets and lease liabilities on the balance sheet for all leases and disclose key information about leasing arrangements. The core principle of this update is that a "lessee should recognize the assets and liabilities that arise from leases." This update is effective for financial statement periods beginning after December 15, 2018, with earlier application permitted. The Company has not yet determined the impact of this pronouncement on its financial statements and related disclosures. In March 2016, the FASB issued its final standard on simplifying the accounting for share-based payment awards. This standard, issued as ASU 2016-09, simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification on the statement of cash flows, and accounting for forfeitures. This update is effective for financial statement periods beginning after December 15, 2016, with early adoption permitted. The Company has not yet determined the impact of this pronouncement on its financial statements and related disclosures. |
Basis of Presentation Basis of
Basis of Presentation Basis of Presentation (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Adjustments for New Accounting Pronouncement [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement, Early Adoption [Table Text Block] | As of June 30, 2015 Balance Sheet Line Item As Previously Reported Restated Change Other current assets $ 51,111 $ 37,816 $ (13,295 ) Deferred tax assets $ 97 $ 10,980 $ 10,883 Other liabilities $ 46,295 $ 43,883 $ (2,412 ) |
Business Combinations Business
Business Combinations Business Combinations (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the consideration transferred, assets acquired, and liabilities assumed in connection with the acquisition of Knox based on their estimated fair values at the acquisition date: Knox Acquisition Accounts receivable $ 19,100 Inventories 18,800 Property 3,900 Identifiable intangible assets 58,500 Goodwill 63,200 Total assets acquired 163,500 Accounts payable and accrued liabilities 7,200 Deferred income taxes 24,300 Net assets acquired $ 132,000 Purchase price 132,800 Reconciliation of fair value transferred: Working Capital Adjustments (800 ) Total Consideration $ 132,000 None of the goodwill acquired is deductible for income tax purposes. The goodwill recognized is attributable primarily to expected synergies and other benefits that the Company believes will result from the acquisition of Knox. |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill by reportable segment | Service Centers Fluid Power Total Balance at July 1, 2015 $ 253,477 $ 929 $ 254,406 Goodwill acquired during the period 14,939 3,259 18,198 Impairment (64,794 ) — (64,794 ) Other, primarily currency translation (8,574 ) — (8,574 ) Balance at March 31, 2016 $ 195,048 $ 4,188 $ 199,236 |
Schedule of Intangible Assets | The Company’s identifiable intangible assets resulting from business combinations are amortized over their estimated period of benefit and consist of the following: March 31, 2016 Amount Accumulated Amortization Net Book Value Finite-Lived Identifiable Intangibles: Customer relationships $ 236,637 $ 79,541 $ 157,096 Trade names 45,143 15,422 29,721 Vendor relationships 14,217 7,873 6,344 Non-competition agreements 4,867 2,302 2,565 Total Identifiable Intangibles $ 300,864 $ 105,138 $ 195,726 June 30, 2015 Amount Accumulated Amortization Net Book Value Finite-Lived Identifiable Intangibles: Customer relationships $ 225,332 $ 65,789 $ 159,543 Trade names 42,689 13,187 29,502 Vendor relationships 14,465 7,258 7,207 Non-competition agreements 4,578 2,002 2,576 Total Identifiable Intangibles $ 287,064 $ 88,236 $ 198,828 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 nine month period ended March 31, 2016 , the Company acquired identifiable intangible assets with a preliminary acquisition cost allocation and weighted-average life as follows: Acquisition Cost Allocation Weighted-Average Life Customer relationships $ 15,341 15.0 Trade names 3,459 15.0 Non-competition agreements 765 5.0 Total Intangibles Acquired $ 19,565 14.6 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 Foreign currency translation adjustment Unrealized (loss) gain on securities available for sale Postemployment benefits Total Accumulated other comprehensive income (loss) Balance at December 31, 2015 $ (91,503 ) $ (45 ) $ (2,766 ) $ (94,314 ) Other comprehensive income 13,014 25 — 13,039 Amounts reclassified from accumulated other comprehensive income (loss) — — 79 79 Net current-period other comprehensive income, net of taxes 13,014 25 79 13,118 Balance at March 31, 2016 $ (78,489 ) $ (20 ) $ (2,687 ) $ (81,196 ) Nine Months Ended March 31, 2016 Foreign currency translation adjustment Unrealized loss on securities available for sale Postemployment benefits Total Accumulated other comprehensive income (loss) Balance at July 1, 2015 $ (57,244 ) $ (4 ) $ (2,923 ) $ (60,171 ) Other comprehensive loss (21,245 ) (16 ) — (21,261 ) Amounts reclassified from accumulated other comprehensive income (loss) — — 236 236 Net current-period other comprehensive (loss) income, net of taxes (21,245 ) (16 ) 236 (21,025 ) Balance at March 31, 2016 $ (78,489 ) $ (20 ) $ (2,687 ) $ (81,196 ) |
Schedule of Comprehensive Income (Loss) [Table Text Block] | Details of other comprehensive income (loss) are as follows: Three Months Ended March 31, 2016 2015 Pre-Tax Amount Tax Expense Net Amount Pre-Tax Amount Tax Expense (Benefit) Net Amount Foreign currency translation adjustments $ 13,014 $ — $ 13,014 $ (26,105 ) $ — $ (26,105 ) Postemployment benefits: Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs 130 51 79 71 27 44 Unrealized gain (loss) on investment securities available for sale 39 14 25 (9 ) (3 ) (6 ) Other comprehensive income (loss) $ 13,183 $ 65 $ 13,118 $ (26,043 ) $ 24 $ (26,067 ) Nine Months Ended March 31, 2016 2015 Pre-Tax Amount Tax Expense (Benefit) Net Amount Pre-Tax Amount Tax Expense Net Amount Foreign currency translation adjustments $ (21,245 ) $ — $ (21,245 ) $ (62,768 ) $ — $ (62,768 ) Postemployment benefits: Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs 387 151 236 214 83 131 Unrealized gain (loss) on investment securities available for sale (24 ) (8 ) (16 ) 44 15 29 Other comprehensive income (loss) $ (20,882 ) $ 143 $ (21,025 ) $ (62,510 ) $ 98 $ (62,608 ) |
Benefit Plans (Tables)
Benefit Plans (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 2015 2016 2015 Components of net periodic cost: Service cost $ 23 $ 24 $ 5 $ 13 Interest cost 216 224 18 24 Expected return on plan assets (122 ) (124 ) — — Recognized net actuarial loss (gain) 228 140 (52 ) (22 ) Amortization of prior service cost 21 21 (67 ) (68 ) Net periodic cost $ 366 $ 285 $ (96 ) $ (53 ) Pension Benefits Retiree Health Care Benefits Nine Months Ended March 31, 2016 2015 2016 2015 Components of net periodic cost: Service cost $ 69 $ 73 $ 17 $ 39 Interest cost 648 672 56 71 Expected return on plan assets (368 ) (371 ) — — Recognized net actuarial loss (gain) 685 419 (158 ) (66 ) Amortization of prior service cost 64 64 (203 ) (203 ) Net periodic cost $ 1,098 $ 857 $ (288 ) $ (159 ) |
Segment and Geographic Inform23
Segment and Geographic Information (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment financial information | Three Months Ended Service Center Based Distribution Fluid Power Businesses Total March 31, 2016 Net sales $ 524,074 $ 109,098 $ 633,172 Operating income for reportable segments 22,465 9,701 32,166 Depreciation and amortization of property 3,710 321 4,031 Capital expenditures 3,472 232 3,704 March 31, 2015 Net sales $ 557,088 $ 122,906 $ 679,994 Operating income for reportable segments 33,788 11,751 45,539 Depreciation and amortization of property 4,129 332 4,461 Capital expenditures 2,801 402 3,203 Nine Months Ended Service Center Based Distribution Fluid Power Businesses Total March 31, 2016 Net sales $ 1,565,587 $ 319,835 $ 1,885,422 Operating income for reportable segments 79,767 28,708 108,475 Assets used in business 1,124,228 210,111 1,334,339 Depreciation and amortization of property 11,023 1,018 12,041 Capital expenditures 8,783 658 9,441 March 31, 2015 Net sales $ 1,701,722 $ 372,299 $ 2,074,021 Operating income for reportable segments 105,903 36,908 142,811 Assets used in business 1,256,266 209,887 1,466,153 Depreciation and amortization of property 11,741 1,051 12,792 Capital expenditures 9,875 1,134 11,009 Enterprise resource planning system (ERP) related assets are included in assets used in business and capital expenditures within the Service Center Based Distribution segment. |
Reconciliation of operating income for reportable segments to the consolidated income before income taxes | A reconciliation of operating (loss) income for reportable segments to consolidated (loss) income before income taxes is as follows: Three Months Ended Nine Months Ended March 31, March 31, 2016 2015 2016 2015 Operating income for reportable segments $ 32,166 $ 45,539 $ 108,475 $ 142,811 Adjustment for: Intangible amortization—Service Center Based Distribution 5,284 4,811 14,568 14,696 Intangible amortization—Fluid Power Businesses 1,457 1,542 4,497 4,716 Goodwill Impairment—Service Center Based Distribution 64,794 — 64,794 — Corporate and other income, net (6,337 ) (4,586 ) (21,740 ) (13,345 ) Total operating (loss) income (33,032 ) 43,772 46,356 136,744 Interest expense, net 2,359 2,121 6,704 5,738 Other expense (income), net 65 (887 ) 1,124 (263 ) (Loss) Income before income taxes $ (35,456 ) $ 42,538 $ 38,528 $ 131,269 The change in corporate and other income, net is due to changes in the amounts of certain supplier support benefits and 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 | Net sales are presented in geographic areas based on the location of the facility shipping the product and are as follows: Three Months Ended Nine Months Ended March 31, March 31, 2016 2015 2016 2015 Geographic Areas: United States $ 537,931 $ 562,563 $ 1,585,699 $ 1,673,927 Canada 60,553 79,957 194,434 282,661 Other countries 34,688 37,474 105,289 117,433 Total $ 633,172 $ 679,994 $ 1,885,422 $ 2,074,021 Other countries consist of Mexico, Australia and New Zealand. |
Other (Income) Expense, Net (Ta
Other (Income) Expense, Net (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Other expense (income), net | Other expense (income), net consists of the following: Three Months Ended Nine Months Ended March 31, March 31, 2016 2015 2016 2015 Unrealized (gain) loss on assets held in rabbi trust for a nonqualified deferred compensation plan $ (75 ) $ (245 ) $ 104 $ (418 ) Foreign currency transactions loss (gain) 307 (474 ) 978 153 Other, net (167 ) (168 ) 42 2 Total other expense (income), net $ 65 $ (887 ) $ 1,124 $ (263 ) |
Basis of Presentation Basis o25
Basis of Presentation Basis of Presentation (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Other current assets | $ 39,377 | $ 37,816 |
Other liabilities | 37,920 | 43,883 |
Unamortized Debt Issuance Expense | $ 531 | 394 |
Scenario, Previously Reported [Member] | ||
Other current assets | 51,111 | |
Deferred tax assets | 97 | |
Other liabilities | 46,295 | |
Restatement Adjustment [Member] | ||
Other current assets | 37,816 | |
Deferred tax assets | 10,980 | |
Other liabilities | 43,883 | |
New Accounting Pronouncement, Early Adoption, Effect [Member] | ||
Other current assets | (13,295) | |
Deferred tax assets | 10,883 | |
Other liabilities | $ (2,412) |
Business Combinations Busines26
Business Combinations Business Combinations Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | Mar. 31, 2016 | Jul. 01, 2014 | |
Atlantic Fasteners, S.G. Morris & HUB Acquisitions [Member] [Member] | ||||
Total Consideration | $ 59,900 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 22,100 | |||
Goodwill plus Intangibles Acquired | 37,800 | |||
Atlantic Fasteners & S.G. Morris Acquisitions [Member] | ||||
Acquisition Holdback Payable | 3,750 | |||
Knox Acquisition [Member] | ||||
Total Consideration | $ 132,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 132,000 | |||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||
Cash Paid at Closing | $ 118,000 | |||
Funding from Holdback Payments | 14,000 | |||
Debt Instrument, Interest Rate During Period | 1.50% | |||
Payments to Acquire Businesses, Gross | $ 7,100 | $ 132,800 | ||
Rodensa, GSB & Ira Acquisition [Member] [Member] | ||||
Total Consideration | $ 54,900 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 21,000 | |||
Goodwill plus Intangibles Acquired | 33,900 | |||
Funding from Holdback Payments | 6,900 | |||
Prudential Facility [Member] | ||||
Long-term Debt | $ 170,000 | $ 120,000 | ||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.19% |
Business Combinations Knox - Fa
Business Combinations Knox - Fair Value of Assets Acquired (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Mar. 31, 2016 | Jun. 30, 2015 | Jul. 01, 2014 | |
Goodwill | $ 199,236 | $ 254,406 | ||
Knox Acquisition [Member] | ||||
Accounts receivable | $ 19,100 | |||
Inventories | 18,800 | |||
Property | 3,900 | |||
Identifiable intangible assets | 58,500 | |||
Goodwill | 63,200 | |||
Total assets acquired | 163,500 | |||
Accounts payable and accrued liabilities | 7,200 | |||
Deferred income taxes | 24,300 | |||
Net assets acquired | $ 132,000 | |||
Purchase price | $ 7,100 | 132,800 | ||
Working Capital Adjustments | (800) | |||
Total Consideration | $ 132,000 |
Goodwill and Intangibles (Detai
Goodwill and Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Changes in the carrying amount of goodwill by reportable segment | ||||
Balance at July 1, 2015 | $ 254,406 | |||
Goodwill acquired during the period | 18,198 | |||
Impairment | $ (64,794) | $ 0 | (64,794) | $ 0 |
Other, primarily currency translation | (8,574) | |||
Balance at March 31, 2016 | 199,236 | 199,236 | ||
Service Center Based Distribution Segment [Member] | ||||
Changes in the carrying amount of goodwill by reportable segment | ||||
Balance at July 1, 2015 | 253,477 | |||
Goodwill acquired during the period | 14,939 | |||
Impairment | (64,794) | |||
Other, primarily currency translation | (8,574) | |||
Balance at March 31, 2016 | 195,048 | 195,048 | ||
Fluid Power Businesses Segment [Member] | ||||
Changes in the carrying amount of goodwill by reportable segment | ||||
Balance at July 1, 2015 | 929 | |||
Goodwill acquired during the period | 3,259 | |||
Impairment | 0 | |||
Other, primarily currency translation | 0 | |||
Balance at March 31, 2016 | $ 4,188 | $ 4,188 |
Goodwill and Intangibles (Det29
Goodwill and Intangibles (Details 1) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Amortization details resulting from business combinations | ||
Amount | $ 300,864 | $ 287,064 |
Accumulated Amortization | 105,138 | 88,236 |
Net Book Value | 195,726 | 198,828 |
Total Identifiable Intangible | 195,726 | 198,828 |
Customer relationships | ||
Amortization details resulting from business combinations | ||
Amount | 236,637 | 225,332 |
Accumulated Amortization | 79,541 | 65,789 |
Net Book Value | 157,096 | 159,543 |
Trade names | ||
Amortization details resulting from business combinations | ||
Amount | 45,143 | 42,689 |
Accumulated Amortization | 15,422 | 13,187 |
Net Book Value | 29,721 | 29,502 |
Vendor relationships | ||
Amortization details resulting from business combinations | ||
Amount | 14,217 | 14,465 |
Accumulated Amortization | 7,873 | 7,258 |
Net Book Value | 6,344 | 7,207 |
Non-competition agreements | ||
Amortization details resulting from business combinations | ||
Amount | 4,867 | 4,578 |
Accumulated Amortization | 2,302 | 2,002 |
Net Book Value | $ 2,565 | $ 2,576 |
Goodwill and Intangibles Goodwi
Goodwill and Intangibles Goodwill and Intangibles (Details 2) $ in Thousands | 9 Months Ended |
Mar. 31, 2016USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquisition Cost Allocation | $ 19,565 |
Weighted-Average Life | 14 years 7 months |
Customer Relationships [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquisition Cost Allocation | $ 15,341 |
Weighted-Average Life | 15 years |
Trade Names [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquisition Cost Allocation | $ 3,459 |
Weighted-Average Life | 15 years |
Noncompete Agreements [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquisition Cost Allocation | $ 765 |
Weighted-Average Life | 5 years |
Goodwill and Intangibles (Det31
Goodwill and Intangibles (Details Textuals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | |
Goodwill [Line Items] | |||||
Goodwill Impairment | $ 64,794 | $ 0 | $ 64,794 | $ 0 | |
Goodwill | 199,236 | 199,236 | $ 254,406 | ||
Goodwill and Intangibles (Textuals) [Abstract] | |||||
Amortization expense for the remainder of 2016 | 6,700 | 6,700 | |||
Amortization expense for 2017 | 24,700 | 24,700 | |||
Amortization expense for 2018 | 22,500 | 22,500 | |||
Amortization expense for 2019 | 20,700 | 20,700 | |||
Amortization expense for 2020 | 18,900 | 18,900 | |||
Amortization expense for 2021 | 17,400 | 17,400 | |||
Fluid Power Businesses [Member] | |||||
Goodwill [Line Items] | |||||
Accumulated goodwill impairment losses | 36,605 | 36,605 | |||
Service Center Based Distribution Segment [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill Impairment | 64,794 | ||||
Goodwill | 195,048 | 195,048 | $ 253,477 | ||
Accumulated goodwill impairment losses | 64,794 | 64,794 | |||
Canada Service Centers reporting unit [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill Impairment | 56,022 | ||||
Goodwill | $ 28,039 | 28,039 | |||
Australia/New Zealand reporting unit [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill Impairment | $ 8,772 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 | Jul. 01, 2014 |
Line of Credit Facility [Line Items] | |||
Letters of Credit Outstanding, Amount | $ 2,000 | $ 1,841 | |
Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 250,000 | ||
Line of Credit Facility, Amount Outstanding | 75,000 | 52,000 | |
Letters of Credit Outstanding, Amount | 3,718 | 3,764 | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 171,282 | $ 94,236 | |
Debt, Weighted Average Interest Rate | 1.37% | 1.15% | |
Term Loan [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Face Amount | $ 125,000 | ||
Long-term Debt | $ 124,219 | $ 96,875 | |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 1.44% | 1.19% | |
State of Ohio Assumed Debt [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Face Amount | $ 2,359 | ||
Long-term Debt | $ 1,952 | $ 2,120 | |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 1.50% | ||
Prudential Facility [Domain] | |||
Line of Credit Facility [Line Items] | |||
Long-term Debt | $ 170,000 | $ 120,000 | |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.19% | ||
Debt Instrument, Unused Borrowing Capacity, Amount | 50,000 | ||
Prudential Facility - Series D [Domain] | Prudential Facility [Domain] | |||
Line of Credit Facility [Line Items] | |||
Long-term Debt | $ 50,000 | ||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.21% | ||
Prudential Facility - Series C [Member] | Prudential Facility [Domain] | |||
Line of Credit Facility [Line Items] | |||
Long-term Debt | $ 120,000 | ||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.19% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Level 1 [Member] | Recurring [Member] | ||
Fair Value Measurements (Textuals) [Line Items] | ||
Marketable securities | $ 8,845 | $ 9,330 |
Income Taxes Income Taxes (Deta
Income Taxes Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate Reconciliation, Percent | (26.20%) | 32.70% | 90.90% | 33.40% |
Goodwill Impairment | $ 64,794 | $ 0 | $ 64,794 | $ 0 |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses, Amount | $ 61,252 | |||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses, Percent | 61.20% | 56.00% |
Shareholders' Equity Accumulate
Shareholders' Equity Accumulated Other Comprehensive Income (Loss) [Table] (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | $ (60,171) | |||
Other Comprehensive Income (Loss), Unrealized gain (loss) on securities available for sale | $ 25 | $ (6) | (16) | $ 29 |
Net current-period other comprehensive income (loss), net of taxes, Foreign Currency Translation Adjustment | 13,014 | (26,105) | (21,245) | (62,768) |
Net current-period other comprehensive income (loss), net of taxes, Total accumulated other comprehensive income (loss) | 13,118 | $ (26,067) | (21,025) | $ (62,608) |
Balance at March 31, 2016 | (81,196) | (81,196) | ||
Foreign Currency Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | (91,503) | (57,244) | ||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment | 13,014 | (21,245) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | ||
Net current-period other comprehensive income (loss), net of taxes, Foreign Currency Translation Adjustment | 13,014 | (21,245) | ||
Balance at March 31, 2016 | (78,489) | (78,489) | ||
Unrealized gain (loss) on securities available for sale [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | (45) | (4) | ||
Other Comprehensive Income (Loss), Unrealized gain (loss) on securities available for sale | 25 | (16) | ||
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 | 25 | (16) | ||
Balance at March 31, 2016 | (20) | (20) | ||
Postemployment benefits [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | (2,766) | (2,923) | ||
Other Comprehensive Income (Loss), Postemployment Benefits, | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 79 | 236 | ||
Net current-period other comprehensive income (loss), net of taxes, Postemployment benefits | 79 | 236 | ||
Balance at March 31, 2016 | (2,687) | (2,687) | ||
Total Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | (94,314) | (60,171) | ||
Other Comprehensive Income (Loss), Total accumulated other comprehensive income (loss) | 13,039 | (21,261) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 79 | 236 | ||
Net current-period other comprehensive income (loss), net of taxes, Total accumulated other comprehensive income (loss) | 13,118 | (21,025) | ||
Balance at March 31, 2016 | $ (81,196) | $ (81,196) |
Shareholders' Equity (Details 1
Shareholders' Equity (Details 1 ) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, before Tax | $ 13,014 | $ (26,105) | $ (21,245) | $ (62,768) |
Foreign currency translation adjustments, Tax | 0 | 0 | 0 | 0 |
Foreign currency translation adjustments, Net of Tax | 13,014 | (26,105) | (21,245) | (62,768) |
Postemployment benefits: | ||||
Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs, before Tax | 130 | 71 | 387 | 214 |
Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs, Tax | 51 | 27 | 151 | 83 |
Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs, Net Of Tax | 79 | 44 | 236 | 131 |
Unrealized gain (loss) on investment securities available for sale, before Tax | 39 | (9) | (24) | 44 |
Unrealized gain (loss) on investment securities available for sale, Tax | 14 | (3) | (8) | 15 |
Unrealized gain (loss) on investment securities available for sale, Net of Tax | 25 | (6) | (16) | 29 |
Other comprehensive income (loss), before tax | 13,183 | (26,043) | (20,882) | (62,510) |
Other comprehensive income (loss), Tax | 65 | 24 | 143 | 98 |
Other comprehensive income (loss), net of tax | $ 13,118 | $ (26,067) | $ (21,025) | $ (62,608) |
Shareholders' Equity Shareholde
Shareholders' Equity Shareholders Equity Details Textuals (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 450 | 775 | 487 |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Pension Benefits [Member] | ||||
Components of net periodic cost: | ||||
Service cost | $ 23 | $ 24 | $ 69 | $ 73 |
Interest cost | 216 | 224 | 648 | 672 |
Expected return on plan assets | (122) | (124) | (368) | (371) |
Recognized net actuarial loss (gain) | 228 | 140 | 685 | 419 |
Amortization of prior service cost | 21 | 21 | 64 | 64 |
Net periodic cost | 366 | 285 | 1,098 | 857 |
Retiree Health Care Benefits [Member] | ||||
Components of net periodic cost: | ||||
Service cost | 5 | 13 | 17 | 39 |
Interest cost | 18 | 24 | 56 | 71 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Recognized net actuarial loss (gain) | (52) | (22) | (158) | (66) |
Amortization of prior service cost | (67) | (68) | (203) | (203) |
Net periodic cost | $ (96) | $ (53) | $ (288) | $ (159) |
Benefit Plans (Details Textuals
Benefit Plans (Details Textuals) $ in Thousands | 9 Months Ended |
Mar. 31, 2016USD ($) | |
Pension Plans, Defined Benefit [Member] | |
Benefit Plans (Textuals) [Abstract] | |
Contribution to benefit plan | $ 5,085 |
Expected contribution to benefit plans for remainder of fiscal year | 220 |
Retiree Health Care Benefits [Member] | |
Benefit Plans (Textuals) [Abstract] | |
Contribution to benefit plan | 128 |
Expected contribution to benefit plans for remainder of fiscal year | $ 40 |
Segment and Geographic Inform40
Segment and Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | |
Segment financial information | |||||
Net sales | $ 633,172 | $ 679,994 | $ 1,885,422 | $ 2,074,021 | |
Operating income for reportable segments | (33,032) | 43,772 | 46,356 | 136,744 | |
Assets used in business | 1,334,339 | 1,466,153 | 1,334,339 | 1,466,153 | $ 1,432,556 |
Depreciation and amortization of property | 4,031 | 4,461 | 12,041 | 12,792 | |
Capital expenditures | 3,704 | 3,203 | 9,441 | 11,009 | |
Operating Segments [Member] | |||||
Segment financial information | |||||
Operating income for reportable segments | 32,166 | 45,539 | 108,475 | 142,811 | |
Service Center Based Distribution [Member] | |||||
Segment financial information | |||||
Net sales | 524,074 | 557,088 | 1,565,587 | 1,701,722 | |
Operating income for reportable segments | 22,465 | 33,788 | 79,767 | 105,903 | |
Assets used in business | 1,124,228 | 1,256,266 | 1,124,228 | 1,256,266 | |
Depreciation and amortization of property | 3,710 | 4,129 | 11,023 | 11,741 | |
Capital expenditures | 3,472 | 2,801 | 8,783 | 9,875 | |
Fluid Power Businesses [Member] | |||||
Segment financial information | |||||
Net sales | 109,098 | 122,906 | 319,835 | 372,299 | |
Operating income for reportable segments | 9,701 | 11,751 | 28,708 | 36,908 | |
Assets used in business | 210,111 | 209,887 | 210,111 | 209,887 | |
Depreciation and amortization of property | 321 | 332 | 1,018 | 1,051 | |
Capital expenditures | $ 232 | $ 402 | $ 658 | $ 1,134 |
Segment and Geographic Inform41
Segment and Geographic Information (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Reconciliation of operating income for reportable segments to the consolidated income before income taxes | ||||
Total operating income | $ (33,032) | $ 43,772 | $ 46,356 | $ 136,744 |
Adjustment for: | ||||
Intangible amortization | 19,065 | 19,412 | ||
Goodwill Impairment | 64,794 | 0 | 64,794 | 0 |
Corporate and other income, net | (6,337) | (4,586) | (21,740) | (13,345) |
Interest Expense, net | 2,359 | 2,121 | 6,704 | 5,738 |
Other Expense (Income), net | 65 | (887) | 1,124 | (263) |
(Loss) Income before income taxes | (35,456) | 42,538 | 38,528 | 131,269 |
Operating Segments [Member] | ||||
Reconciliation of operating income for reportable segments to the consolidated income before income taxes | ||||
Total operating income | 32,166 | 45,539 | 108,475 | 142,811 |
Service Center Based Distribution [Member] | ||||
Reconciliation of operating income for reportable segments to the consolidated income before income taxes | ||||
Total operating income | 22,465 | 33,788 | 79,767 | 105,903 |
Adjustment for: | ||||
Intangible amortization | 5,284 | 4,811 | 14,568 | 14,696 |
Fluid Power Businesses [Member] | ||||
Reconciliation of operating income for reportable segments to the consolidated income before income taxes | ||||
Total operating income | 9,701 | 11,751 | 28,708 | 36,908 |
Adjustment for: | ||||
Intangible amortization | $ 1,457 | $ 1,542 | $ 4,497 | $ 4,716 |
Segment and Geographic Inform42
Segment and Geographic Information (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Net sales are presented in geographic areas | ||||
Net Sales | $ 633,172 | $ 679,994 | $ 1,885,422 | $ 2,074,021 |
United States | ||||
Net sales are presented in geographic areas | ||||
Net Sales | 537,931 | 562,563 | 1,585,699 | 1,673,927 |
Canada | ||||
Net sales are presented in geographic areas | ||||
Net Sales | 60,553 | 79,957 | 194,434 | 282,661 |
Other countries | ||||
Net sales are presented in geographic areas | ||||
Net Sales | $ 34,688 | $ 37,474 | $ 105,289 | $ 117,433 |
Segment and Geographic Inform43
Segment and Geographic Information (Details Textuals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Segment and Geographic Information (Textuals) [Abstract] | ||||
Sales primarily from businesses segment | $ 5,574 | $ 6,124 | $ 16,032 | $ 17,760 |
Other (Income) Expense, Net (De
Other (Income) Expense, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Other Income and Expenses [Abstract] | ||||
Unrealized (gain) loss on assets held in rabbi trust for a nonqualified deferred compensation plan | $ (75) | $ (245) | $ 104 | $ (418) |
Foreign currency transactions loss (gain) | 307 | (474) | 978 | 153 |
Other, net | (167) | (168) | 42 | 2 |
Total other expense (income), net | $ 65 | $ (887) | $ 1,124 | $ (263) |