Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2016 | Jan. 13, 2017 | |
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 | Dec. 31, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 38,988,343 |
Condensed Statements of Consoli
Condensed Statements of Consolidated Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | ||||
Net Sales | $ 608,123 | $ 610,346 | $ 1,232,971 | $ 1,252,250 |
Cost of Sales | 435,667 | 437,179 | 882,185 | 898,071 |
Gross Profit | 172,456 | 173,167 | 350,786 | 354,179 |
Selling, Distribution and Administrative, including depreciation | 134,800 | 134,805 | 269,912 | 274,791 |
Operating Income | 37,656 | 38,362 | 80,874 | 79,388 |
Interest Expense, net | 2,100 | 2,158 | 4,246 | 4,345 |
Other (Income) Expense, net | (211) | 55 | (609) | 1,059 |
Income Before Income Taxes | 35,767 | 36,149 | 77,237 | 73,984 |
Income Tax Expense | 11,682 | 12,202 | 25,781 | 25,746 |
Net Income | $ 24,085 | $ 23,947 | $ 51,456 | $ 48,238 |
Net Income Per Share - Basic | $ 0.62 | $ 0.61 | $ 1.32 | $ 1.22 |
Net Income Per Share - Diluted | 0.61 | 0.61 | 1.31 | 1.22 |
Cash dividends per common share | $ 0.28 | $ 0.27 | $ 0.56 | $ 0.54 |
Weighted average common shares outstanding for basic computation | 38,985 | 39,262 | 39,015 | 39,437 |
Dilutive effect of potential common shares | 386 | 223 | 337 | 224 |
Weighted average common shares outstanding for diluted computation | 39,371 | 39,485 | 39,352 | 39,661 |
Condensed Statements of Consol3
Condensed Statements of Consolidated Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net income per the condensed statements of consolidated income | $ 24,085 | $ 23,947 | $ 51,456 | $ 48,238 |
Other comprehensive loss, before tax: | ||||
Foreign currency translation adjustments | (9,930) | (6,743) | (12,279) | (34,259) |
Postemployment benefits: | ||||
Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs | 125 | 127 | 252 | 257 |
Unrealized (loss) gain on investment securities available for sale | 40 | (13) | 66 | (63) |
Total of other comprehensive loss, before tax | (9,765) | (6,629) | (11,961) | (34,065) |
Income tax expense related to items of other comprehensive income | 54 | 44 | 115 | 78 |
Other comprehensive loss, net of tax | (9,819) | (6,673) | (12,076) | (34,143) |
Comprehensive income, net of tax | $ 14,266 | $ 17,274 | $ 39,380 | $ 14,095 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Current assets | ||
Cash and cash equivalents | $ 62,857 | $ 59,861 |
Accounts receivable, less allowances of $10,583 and $11,034 | 336,716 | 347,857 |
Inventories | 349,020 | 338,221 |
Other current assets | 33,839 | 35,582 |
Total current assets | 782,432 | 781,521 |
Property, less accumulated depreciation of $164,742 and $161,466 | 105,279 | 107,765 |
Identifiable intangibles, net | 173,460 | 191,240 |
Goodwill | 203,963 | 202,700 |
Deferred tax assets | 12,424 | 12,277 |
Other assets | 16,958 | 16,522 |
TOTAL ASSETS | 1,294,516 | 1,312,025 |
Current liabilities | ||
Accounts payable | 137,499 | 148,543 |
Current portion of long-term debt | 3,248 | 3,247 |
Compensation and related benefits | 44,427 | 57,187 |
Other current liabilities | 52,048 | 65,306 |
Total current liabilities | 237,222 | 274,283 |
Long-term debt | 323,940 | 324,583 |
Postemployment benefits | 20,603 | 21,322 |
Other liabilities | 31,342 | 33,921 |
TOTAL LIABILITIES | 613,107 | 654,109 |
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; 39,010 and 39,057 outstanding, respectively | 10,000 | 10,000 |
Additional paid-in capital | 162,639 | 162,529 |
Retained earnings | 985,297 | 944,821 |
Treasury shares—at cost (15,203 and 15,156 shares) | (378,905) | (373,888) |
Accumulated other comprehensive income (loss) | (97,622) | (85,546) |
TOTAL SHAREHOLDERS’ EQUITY | 681,409 | 657,916 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 1,294,516 | $ 1,312,025 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Current Assets: | ||
Accounts Receivable, less allowances | $ 10,583 | $ 11,034 |
Noncurrent Assets: | ||
Property, less accumulated depreciation | $ 164,742 | $ 161,466 |
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 |
Common stock, shares outstanding | 39,010,000 | 39,057,000 |
Treasury shares | 15,203,000 | 15,156,000 |
Condensed Statements of Consol6
Condensed Statements of Consolidated Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows from Operating Activities | ||
Net income | $ 51,456 | $ 48,238 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property | 7,487 | 8,010 |
Amortization of intangibles | 12,331 | 12,325 |
Unrealized foreign exchange transactions loss | 272 | 65 |
Amortization of stock options and appreciation rights | 1,180 | 939 |
(Gain) loss on sale of property | (1,581) | 51 |
Other share-based compensation expense | 1,278 | 954 |
Changes in operating assets and liabilities, net of acquisitions | (27,252) | (38,187) |
Other, net | 487 | 1,451 |
Net Cash provided by Operating Activities | 45,658 | 33,846 |
Cash Flows from Investing Activities | ||
Property purchases | (6,710) | (5,737) |
Proceeds from property sales | 2,648 | 194 |
Acquisition of businesses, net of cash acquired | 0 | (23,250) |
Net Cash used in Investing Activities | (4,062) | (28,793) |
Cash Flows from Financing Activities | ||
Borrowings under revolving credit facility | 1,000 | 18,000 |
Long-term debt borrowings | 0 | 125,000 |
Long-term debt repayments | (1,695) | (97,006) |
Purchases of treasury shares | (5,478) | (27,767) |
Dividends paid | (21,893) | (21,369) |
Excess tax benefits from share-based compensation | 0 | 49 |
Acquisition holdback payments | (7,069) | (10,614) |
Taxes paid for shares withheld | (2,081) | (903) |
Exercise of stock options and appreciation rights | 195 | 264 |
Net Cash used in Financing Activities | (37,021) | (14,346) |
Effect of Exchange Rate Changes on Cash | (1,579) | (4,543) |
Increase (decrease) in Cash and Cash Equivalents | 2,996 | (13,836) |
Cash and Cash Equivalents at Beginning of Period | 59,861 | 69,470 |
Cash and Cash Equivalents at End of Period | $ 62,857 | $ 55,634 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Dec. 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 December 31, 2016 , and the results of its operations for the three and six month periods ended December 31, 2016 and 2015 and its cash flows for the six month periods ended December 31, 2016 and 2015 , have been included. The condensed consolidated balance sheet as of June 30, 2016 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, 2016 . Operating results for the three and six month periods ended December 31, 2016 are not necessarily indicative of the results that may be expected for the remainder of the fiscal year ending June 30, 2017 . Change in Accounting Principle - Share-based Payment Awards 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 annual and interim financial statement periods beginning after December 15, 2016, with early adoption permitted. The Company early adopted ASU 2016-09 in the first quarter of fiscal 2017. The new standard requires prospective recognition of excess tax benefits and deficiencies resulting from stock-based compensation awards vesting and exercises be recognized in the income statement. Previously, these amounts were recognized in additional paid-in capital. Net excess tax benefits of $575 and $718 for the three and six months ending December 31, 2016 , respectively, were recognized as a reduction of income tax expense. In addition, ASU 2016-09 requires excess tax benefits and deficiencies to be prospectively excluded from the assumed future proceeds in the calculation of diluted shares, resulting in an insignificant increase in diluted weighted average shares outstanding for the six months ending December 31, 2016 , which did not have a material impact on earnings per share. The Company has elected to continue to estimate the number of stock-based awards expected to vest, as permitted by ASU 2016-09, rather than electing to account for forfeitures as they occur. The standard requires that excess tax benefits from share based compensation awards be reported as operating activities in the consolidated statements of cash flows. Previously, these cash flows were included in financing activities. We have elected to apply this change on a prospective basis, resulting in an increase in net cash provided by operating activities and net cash used in financing activities of $575 and $718 for the three and six months ending December 31, 2016 , respectively. ASU 2016-09 requires that employee taxes paid when an employer withholds shares for tax-withholding purposes be reported as financing activities in the consolidated statements of cash flows. Previously, these cash flows were included in operating activities. This change was required to be applied on a retrospective basis. As such, the consolidated statements of cash flows for the prior periods were revised. This change resulted in an increase in net cash provided by operating activities and in net cash used in financing activities of $903 for the six months ending December 31, 2015 . Change in Accounting Principle - Debt Issue Costs 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, rather than as an asset. This update is effective for annual financial statement periods beginning after December 15, 2015, and interim periods within those fiscal years. As required, the Company adopted ASU 2015-03 in the first quarter of fiscal 2017 and has applied the new standard retrospectively. The retrospective adoption of ASU 2015-03 resulted in the reclassification as of June 30, 2016 of unamortized debt issue costs of $105 from other current assets to a reduction of current portion of long-term debt and $399 from other assets to a reduction of long-term debt on the Company's condensed consolidated balance sheets. Change in Accounting Principle - Measurement-period Adjustments for Business Combinations 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 to 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 annual and interim financial statement periods beginning after December 15, 2015, and is applied prospectively to adjustments to provisional amounts that occur after the effective date of this update, with early adoption permitted. The Company adopted ASU 2015-16 in the first quarter of fiscal 2017. The adoption of this update did not have a material impact on the financial statements of the Company. 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. Recently Issued Accounting Guidance In May 2014, the FASB issued its final standard on the recognition of revenue from contracts with customers. 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 annual and interim 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 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 annual and interim 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 June 2016, the FASB issued its final standard on measurement of credit losses on financial instruments. This standard, issued as ASU 2016-13, requires that an entity measure impairment of certain financial instruments, including trade receivables, based on expected losses rather than incurred losses. This update is effective for annual and interim financial statement periods beginning after December 15, 2019, with early adoption permitted for financial statement periods beginning after December 15, 2018. The Company has not yet determined the impact of this pronouncement on its financial statements and related disclosures. In August 2016, the FASB issued its final standard on the classification of certain cash receipts and cash payments within the statement of cash flows. This standard, issued as ASU 2016-15, makes a number of changes meant to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows. This update is effective for annual and interim financial statement periods beginning after December 15, 2018, with early adoption permitted. The Company has not yet determined the impact of this pronouncement on its financial statements and related disclosures. In October 2016, the FASB issued its final standard on the income tax consequences of intra-entity transfers of assets other than inventory. This standard, issued as ASU 2016-16, requires that an entity recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs and eliminates the exception for an intra-entity transfer of an asset other than inventory. This update is effective for annual and interim financial statement periods beginning after December 15, 2017, 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 | 6 Months Ended |
Dec. 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 June 14, 2016, the Company acquired 100% of the outstanding stock of Seals Unlimited ("Seals"), a distributor of sealing, fastener, and hose products located in Burlington, Ontario. 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. Seals, HUB, and Atlantic Fasteners are all 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 $65,900 , net tangible assets acquired were $22,700 , and intangibles including goodwill were $43,200 based upon estimated fair values at the acquisition dates. The estimated fair values related to Seals are preliminary and subject to adjustment. The total combined consideration includes $3,300 of acquisition holdback payments, of which $625 was paid during the first quarter of fiscal 2017. The remaining balance of $2,675 is 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 using available cash and 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 condensed consolidated financial statements. |
Goodwill and Intangibles
Goodwill and Intangibles | 6 Months Ended |
Dec. 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 fiscal year ended June 30, 2016 and the six month period ended December 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 18,683 3,285 21,968 Impairment (64,794 ) — (64,794 ) Other, primarily currency translation (8,880 ) — (8,880 ) Balance at June 30, 2016 $ 198,486 $ 4,214 $ 202,700 Goodwill added during the period 3,220 — 3,220 Other, primarily currency translation (1,513 ) (444 ) (1,957 ) Balance at December 31, 2016 $ 200,193 $ 3,770 $ 203,963 On July 1, 2016, the Company enacted a change in its management reporting structure which changed the composition of the Canada service center reporting unit. This triggering event required the Company to perform an interim goodwill impairment test for the Canada service center reporting unit. The Company performed step one of the goodwill impairment test for the Canada service center reporting unit as of July 1, 2016 and determined that the reporting unit had excess fair value of approximately $8,000 or 5% when compared to its carrying amount of approximately $163,000 . The fair value of the reporting unit in accordance with step one of the goodwill impairment test was 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. The techniques used in the Company's impairment test 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 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. In conjunction with this management change, $2,628 of goodwill was reallocated from the Canada service center reporting unit to the U.S. service center reporting unit based on the relative fair value as of July 1, 2016. At December 31, 2016 and June 30, 2016 , accumulated goodwill impairment losses, subsequent to fiscal year 2002, totaled $36,605 related to the Fluid Power Businesses segment and totaled $64,794 related to the Service Center Based Distribution segment. During the six months ended December 31, 2016 , the Company recorded an adjustment to the preliminary estimated fair value of intangible assets related to the HUB acquisition. The fair values of the customer relationships and trade names intangible assets were decreased by $2,636 and $584 , respectively, with a corresponding total increase to goodwill of $3,220 . The changes to the preliminary estimated fair values resulted in a decrease to amortization expense of $156 during the six months ended December 31, 2016 , which is recorded in selling, distribution and administrative expense on the condensed statements of consolidated income. The Company’s identifiable intangible assets resulting from business combinations are amortized over their estimated period of benefit and consist of the following: December 31, 2016 Amount Accumulated Amortization Net Book Value Finite-Lived Identifiable Intangibles: Customer relationships $ 231,953 $ 91,601 $ 140,352 Trade names 43,411 17,565 25,846 Vendor relationships 13,772 8,307 5,465 Non-competition agreements 4,582 2,785 1,797 Total Identifiable Intangibles $ 293,718 $ 120,258 $ 173,460 June 30, 2016 Amount Accumulated Amortization Net Book Value Finite-Lived Identifiable Intangibles: Customer relationships $ 239,132 $ 84,566 $ 154,566 Trade names 44,430 16,099 28,331 Vendor relationships 14,042 8,003 6,039 Non-competition agreements 4,700 2,396 2,304 Total Identifiable Intangibles $ 302,304 $ 111,064 $ 191,240 Amounts include the impact of foreign currency translation. Fully amortized amounts are written off. Due to continued softness in the upstream oil and gas industry, management also assessed long-lived intangible assets related to the Reliance asset group for impairment during the first quarter of fiscal 2017. The sum of the undiscounted cash flows exceeded the carrying value of the asset group of $100,664 by 8% , therefore, no impairment was recognized. Changes in future results, assumptions, and estimates after the measurement date may lead to an outcome where 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 intangible assets have fallen below their carrying values. Estimated future amortization expense by fiscal year (based on the Company’s identifiable intangible assets as of December 31, 2016 ) for the next five years is as follows: $12,200 for the remainder of 2017 , $22,200 for 2018 , $20,500 for 2019 , $18,700 for 2020 , $17,200 for 2021 and $14,900 for 2022 . |
Debt (Notes)
Debt (Notes) | 6 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | DEBT Revolving Credit Facility & Term Loan In December 2015, the Company entered into a 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. Fees on this facility range from 0.09% to 0.175% per year based upon the Company's leverage ratio at each quarter end. Borrowings under this agreement carry variable interest rates tied to either LIBOR or prime at the Company's discretion. At December 31, 2016 and June 30, 2016 , the Company had $121,875 and $123,438 , respectively, outstanding under the term loan, and $34,000 and $33,000 , respectively, outstanding under the revolver. Unused lines under this facility, net of outstanding letters of credit of $2,704 and $2,707 to secure certain insurance obligations, totaled $213,296 and $214,293 at December 31, 2016 and June 30, 2016 , respectively, and are available to fund future acquisitions or other capital and operating requirements. The interest rate on the term loan was 1.81% as of December 31, 2016 and 1.50% as of June 30, 2016 . The weighted average interest rate on the revolving credit facility outstanding was 2.28% as of December 31, 2016 and 1.44% as of June 30, 2016 . Additionally, the Company had letters of credit outstanding with a separate bank, not associated with the revolving credit agreement, in the amount of $2,698 as of December 31, 2016 and June 30, 2016 , 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 the 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 December 31, 2016 and June 30, 2016 , $1,764 and $1,896 was outstanding, respectively. At December 31, 2016 and June 30, 2016 , 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 December 31, 2016 , $50,000 in additional financing was available under this facility. Unamortized debt issue costs of $105 are included as a reduction of current portion of long-term debt on the condensed consolidated balance sheets as of December 31, 2016 and June 30, 2016 . Unamortized debt issue costs of $347 and $399 are included as a reduction of long-term debt on the condensed consolidated balance sheets as of December 31, 2016 and June 30, 2016 , respectively. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Marketable securities measured at fair value at December 31, 2016 and June 30, 2016 totaled $9,888 and $9,097 , 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 December 31, 2016 (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 December 31, 2016 and June 30, 2016 (Level 2 in the fair value hierarchy). |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS' EQUITY Accumulated Other Comprehensive (Loss) Income Changes in the accumulated other comprehensive (loss) income, are comprised of the following: Three Months Ended December 31, 2016 Foreign currency translation adjustment Unrealized (loss) gain on securities available for sale Postemployment benefits Total Accumulated other comprehensive income (loss) Balance at September 30, 2016 $ (84,034 ) $ (23 ) $ (3,746 ) $ (87,803 ) Other comprehensive (loss) income (9,930 ) 34 — (9,896 ) Amounts reclassified from accumulated other comprehensive (loss) income — — 77 77 Net current-period other comprehensive (loss) income, net of taxes (9,930 ) 34 77 (9,819 ) Balance at December 31, 2016 $ (93,964 ) $ 11 $ (3,669 ) $ (97,622 ) Three Months Ended December 31, 2015 Foreign currency translation adjustment Unrealized loss on securities available for sale Postemployment benefits Total Accumulated other comprehensive income (loss) Balance at September 30, 2015 $ (84,760 ) $ (37 ) $ (2,844 ) $ (87,641 ) Other comprehensive loss (6,743 ) (8 ) — (6,751 ) Amounts reclassified from accumulated other comprehensive (loss) income — — 78 78 Net current-period other comprehensive (loss) income, net of taxes (6,743 ) (8 ) 78 (6,673 ) Balance at December 31, 2015 $ (91,503 ) $ (45 ) $ (2,766 ) $ (94,314 ) Six Months Ended December 31, 2016 Foreign currency translation adjustment Unrealized (loss) gain on securities available for sale Postemployment benefits Total Accumulated other comprehensive income (loss) Balance at July 1, 2016 $ (81,685 ) $ (38 ) $ (3,823 ) $ (85,546 ) Other comprehensive (loss) income (12,279 ) 49 — (12,230 ) Amounts reclassified from accumulated other comprehensive (loss) income — — 154 154 Net current-period other comprehensive (loss) income, net of taxes (12,279 ) 49 154 (12,076 ) Balance at December 31, 2016 $ (93,964 ) $ 11 $ (3,669 ) $ (97,622 ) Six Months Ended December 31, 2015 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 (34,259 ) (41 ) — (34,300 ) Amounts reclassified from accumulated other comprehensive (loss) income — — 157 157 Net current-period other comprehensive (loss) income, net of taxes (34,259 ) (41 ) 157 (34,143 ) Balance at December 31, 2015 $ (91,503 ) $ (45 ) $ (2,766 ) $ (94,314 ) Other Comprehensive (Loss) Income Details of other comprehensive (loss) income are as follows: Three Months Ended December 31, 2016 2015 Pre-Tax Amount Tax Expense Net Amount Pre-Tax Amount Tax Expense (Benefit) Net Amount Foreign currency translation adjustments $ (9,930 ) $ — $ (9,930 ) $ (6,743 ) $ — $ (6,743 ) Postemployment benefits: Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs 125 48 77 127 49 78 Unrealized gain (loss) on investment securities available for sale 40 6 34 (13 ) (5 ) (8 ) Other comprehensive (loss) income $ (9,765 ) $ 54 $ (9,819 ) $ (6,629 ) $ 44 $ (6,673 ) Six Months Ended December 31, 2016 2015 Pre-Tax Amount Tax Expense Net Amount Pre-Tax Amount Tax Expense (Benefit) Net Amount Foreign currency translation adjustments $ (12,279 ) $ — $ (12,279 ) $ (34,259 ) $ — $ (34,259 ) Postemployment benefits: Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs 252 98 154 257 100 157 Unrealized gain (loss) on investment securities available for sale 66 17 49 (63 ) (22 ) (41 ) Other comprehensive (loss) income $ (11,961 ) $ 115 $ (12,076 ) $ (34,065 ) $ 78 $ (34,143 ) Anti-dilutive Common Stock Equivalents In the three month periods ended December 31, 2016 and 2015 , stock options and stock appreciation rights related to 258 and 702 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 six month periods ended December 31, 2016 and 2015 , stock options and stock appreciation rights related to 602 and 776 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 | 6 Months Ended |
Dec. 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 December 31, 2016 2015 2016 2015 Components of net periodic cost: Service cost $ 32 $ 23 $ 7 $ 6 Interest cost 173 216 16 19 Expected return on plan assets (115 ) (123 ) — — Recognized net actuarial loss (gain) 218 229 (46 ) (53 ) Amortization of prior service cost 21 21 (67 ) (68 ) Net periodic cost $ 329 $ 366 $ (90 ) $ (96 ) Pension Benefits Retiree Health Care Benefits Six Months Ended December 31, 2016 2015 2016 2015 Components of net periodic cost: Service cost $ 63 $ 46 $ 14 $ 12 Interest cost 346 432 32 38 Expected return on plan assets (230 ) (246 ) — — Recognized net actuarial loss (gain) 436 457 (91 ) (106 ) Amortization of prior service cost 43 43 (135 ) (136 ) Net periodic cost $ 658 $ 732 $ (180 ) $ (192 ) The Company contributed $400 to its pension benefit plans and $90 to its retiree health care plans in the six months ended December 31, 2016 . Expected contributions for the remainder of fiscal 2017 are $350 for the pension benefit plans to fund scheduled retirement payments and $90 for retiree health care plans. |
Segment and Geographic Informat
Segment and Geographic Information | 6 Months Ended |
Dec. 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 $5,264 and $5,666 , in the three months ended December 31, 2016 and 2015 , respectively, and $10,528 and $11,234 in the six months ended December 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 December 31, 2016 Net sales $ 501,950 $ 106,173 $ 608,123 Operating income for reportable segments 21,209 10,578 31,787 Depreciation and amortization of property 3,522 315 3,837 Capital expenditures 3,616 95 3,711 December 31, 2015 Net sales $ 507,906 $ 102,440 $ 610,346 Operating income for reportable segments 28,401 8,745 37,146 Depreciation and amortization of property 3,695 385 4,080 Capital expenditures 2,424 201 2,625 Six Months Ended Service Center Based Distribution Fluid Power Businesses Total December 31, 2016 Net sales $ 1,017,583 $ 215,388 $ 1,232,971 Operating income for reportable segments 46,855 22,406 69,261 Assets used in business 1,084,878 209,638 1,294,516 Depreciation and amortization of property 6,842 645 7,487 Capital expenditures 6,242 468 6,710 December 31, 2015 Net sales $ 1,041,513 $ 210,737 $ 1,252,250 Operating income for reportable segments 57,302 19,007 76,309 Assets used in business 1,143,601 206,794 1,350,395 Depreciation and amortization of property 7,312 698 8,010 Capital expenditures 5,311 426 5,737 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 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, 2016 2015 2016 2015 Operating income for reportable segments $ 31,787 $ 37,146 $ 69,261 $ 76,309 Adjustment for: Intangible amortization—Service Center Based Distribution 4,670 4,714 9,432 9,286 Intangible amortization—Fluid Power Businesses 1,424 1,528 2,899 3,039 Corporate and other (income) expense, net (11,963 ) (7,458 ) (23,944 ) (15,404 ) Total operating income 37,656 38,362 80,874 79,388 Interest expense, net 2,100 2,158 4,246 4,345 Other (income) expense, net (211 ) 55 (609 ) 1,059 Income before income taxes $ 35,767 $ 36,149 $ 77,237 $ 73,984 The change in corporate and other (income) expense, net is due to changes in the amounts and levels 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 Six Months Ended December 31, December 31, 2016 2015 2016 2015 Geographic Areas: United States $ 511,095 $ 509,399 $ 1,036,561 $ 1,047,768 Canada 62,204 67,647 124,785 133,880 Other countries 34,824 33,300 71,625 70,602 Total $ 608,123 $ 610,346 $ 1,232,971 $ 1,252,250 Other countries consist of Mexico, Australia and New Zealand. |
Other (Income) Expense, Net
Other (Income) Expense, Net | 6 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 2016 2015 Unrealized (gain) loss on assets held in rabbi trust for a non-qualified deferred compensation plan $ (114 ) $ (275 ) $ (444 ) $ 179 Foreign currency transactions (gain) loss (193 ) 148 (343 ) 671 Other, net 96 182 178 209 Total other (income) expense, net $ (211 ) $ 55 $ (609 ) $ 1,059 |
Subsequent Events (Notes)
Subsequent Events (Notes) | 6 Months Ended |
Dec. 31, 2016 | |
Subsequent Event [Line Items] | |
Subsequent Events [Text Block] | 10. SUBSEQUENT EVENTS We have evaluated events and transactions occurring subsequent to December 31, 2016 through the date the financial statements were issued. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Change in Accounting Principle - Share-based Payment Awards 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 annual and interim financial statement periods beginning after December 15, 2016, with early adoption permitted. The Company early adopted ASU 2016-09 in the first quarter of fiscal 2017. The new standard requires prospective recognition of excess tax benefits and deficiencies resulting from stock-based compensation awards vesting and exercises be recognized in the income statement. Previously, these amounts were recognized in additional paid-in capital. Net excess tax benefits of $575 and $718 for the three and six months ending December 31, 2016 , respectively, were recognized as a reduction of income tax expense. In addition, ASU 2016-09 requires excess tax benefits and deficiencies to be prospectively excluded from the assumed future proceeds in the calculation of diluted shares, resulting in an insignificant increase in diluted weighted average shares outstanding for the six months ending December 31, 2016 , which did not have a material impact on earnings per share. The Company has elected to continue to estimate the number of stock-based awards expected to vest, as permitted by ASU 2016-09, rather than electing to account for forfeitures as they occur. The standard requires that excess tax benefits from share based compensation awards be reported as operating activities in the consolidated statements of cash flows. Previously, these cash flows were included in financing activities. We have elected to apply this change on a prospective basis, resulting in an increase in net cash provided by operating activities and net cash used in financing activities of $575 and $718 for the three and six months ending December 31, 2016 , respectively. ASU 2016-09 requires that employee taxes paid when an employer withholds shares for tax-withholding purposes be reported as financing activities in the consolidated statements of cash flows. Previously, these cash flows were included in operating activities. This change was required to be applied on a retrospective basis. As such, the consolidated statements of cash flows for the prior periods were revised. This change resulted in an increase in net cash provided by operating activities and in net cash used in financing activities of $903 for the six months ending December 31, 2015 . Change in Accounting Principle - Debt Issue Costs 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, rather than as an asset. This update is effective for annual financial statement periods beginning after December 15, 2015, and interim periods within those fiscal years. As required, the Company adopted ASU 2015-03 in the first quarter of fiscal 2017 and has applied the new standard retrospectively. The retrospective adoption of ASU 2015-03 resulted in the reclassification as of June 30, 2016 of unamortized debt issue costs of $105 from other current assets to a reduction of current portion of long-term debt and $399 from other assets to a reduction of long-term debt on the Company's condensed consolidated balance sheets. Change in Accounting Principle - Measurement-period Adjustments for Business Combinations 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 to 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 annual and interim financial statement periods beginning after December 15, 2015, and is applied prospectively to adjustments to provisional amounts that occur after the effective date of this update, with early adoption permitted. The Company adopted ASU 2015-16 in the first quarter of fiscal 2017. The adoption of this update did not have a material 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] | Recently Issued Accounting Guidance In May 2014, the FASB issued its final standard on the recognition of revenue from contracts with customers. 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 annual and interim 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 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 annual and interim 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 June 2016, the FASB issued its final standard on measurement of credit losses on financial instruments. This standard, issued as ASU 2016-13, requires that an entity measure impairment of certain financial instruments, including trade receivables, based on expected losses rather than incurred losses. This update is effective for annual and interim financial statement periods beginning after December 15, 2019, with early adoption permitted for financial statement periods beginning after December 15, 2018. The Company has not yet determined the impact of this pronouncement on its financial statements and related disclosures. In August 2016, the FASB issued its final standard on the classification of certain cash receipts and cash payments within the statement of cash flows. This standard, issued as ASU 2016-15, makes a number of changes meant to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows. This update is effective for annual and interim financial statement periods beginning after December 15, 2018, with early adoption permitted. The Company has not yet determined the impact of this pronouncement on its financial statements and related disclosures. In October 2016, the FASB issued its final standard on the income tax consequences of intra-entity transfers of assets other than inventory. This standard, issued as ASU 2016-16, requires that an entity recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs and eliminates the exception for an intra-entity transfer of an asset other than inventory. This update is effective for annual and interim financial statement periods beginning after December 15, 2017, with early adoption permitted. The Company has not yet determined the impact of this pronouncement on its financial statements and related disclosures. |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
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 both the Service Center Based Distribution segment and the Fluid Power Businesses segment for the fiscal year ended June 30, 2016 and the six month period ended December 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 18,683 3,285 21,968 Impairment (64,794 ) — (64,794 ) Other, primarily currency translation (8,880 ) — (8,880 ) Balance at June 30, 2016 $ 198,486 $ 4,214 $ 202,700 Goodwill added during the period 3,220 — 3,220 Other, primarily currency translation (1,513 ) (444 ) (1,957 ) Balance at December 31, 2016 $ 200,193 $ 3,770 $ 203,963 |
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: December 31, 2016 Amount Accumulated Amortization Net Book Value Finite-Lived Identifiable Intangibles: Customer relationships $ 231,953 $ 91,601 $ 140,352 Trade names 43,411 17,565 25,846 Vendor relationships 13,772 8,307 5,465 Non-competition agreements 4,582 2,785 1,797 Total Identifiable Intangibles $ 293,718 $ 120,258 $ 173,460 June 30, 2016 Amount Accumulated Amortization Net Book Value Finite-Lived Identifiable Intangibles: Customer relationships $ 239,132 $ 84,566 $ 154,566 Trade names 44,430 16,099 28,331 Vendor relationships 14,042 8,003 6,039 Non-competition agreements 4,700 2,396 2,304 Total Identifiable Intangibles $ 302,304 $ 111,064 $ 191,240 Amounts include the impact of foreign currency translation. Fully amortized amounts are written off. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated Other Comprehensive (Loss) Income Changes in the accumulated other comprehensive (loss) income, are comprised of the following: Three Months Ended December 31, 2016 Foreign currency translation adjustment Unrealized (loss) gain on securities available for sale Postemployment benefits Total Accumulated other comprehensive income (loss) Balance at September 30, 2016 $ (84,034 ) $ (23 ) $ (3,746 ) $ (87,803 ) Other comprehensive (loss) income (9,930 ) 34 — (9,896 ) Amounts reclassified from accumulated other comprehensive (loss) income — — 77 77 Net current-period other comprehensive (loss) income, net of taxes (9,930 ) 34 77 (9,819 ) Balance at December 31, 2016 $ (93,964 ) $ 11 $ (3,669 ) $ (97,622 ) Three Months Ended December 31, 2015 Foreign currency translation adjustment Unrealized loss on securities available for sale Postemployment benefits Total Accumulated other comprehensive income (loss) Balance at September 30, 2015 $ (84,760 ) $ (37 ) $ (2,844 ) $ (87,641 ) Other comprehensive loss (6,743 ) (8 ) — (6,751 ) Amounts reclassified from accumulated other comprehensive (loss) income — — 78 78 Net current-period other comprehensive (loss) income, net of taxes (6,743 ) (8 ) 78 (6,673 ) Balance at December 31, 2015 $ (91,503 ) $ (45 ) $ (2,766 ) $ (94,314 ) Six Months Ended December 31, 2016 Foreign currency translation adjustment Unrealized (loss) gain on securities available for sale Postemployment benefits Total Accumulated other comprehensive income (loss) Balance at July 1, 2016 $ (81,685 ) $ (38 ) $ (3,823 ) $ (85,546 ) Other comprehensive (loss) income (12,279 ) 49 — (12,230 ) Amounts reclassified from accumulated other comprehensive (loss) income — — 154 154 Net current-period other comprehensive (loss) income, net of taxes (12,279 ) 49 154 (12,076 ) Balance at December 31, 2016 $ (93,964 ) $ 11 $ (3,669 ) $ (97,622 ) Six Months Ended December 31, 2015 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 (34,259 ) (41 ) — (34,300 ) Amounts reclassified from accumulated other comprehensive (loss) income — — 157 157 Net current-period other comprehensive (loss) income, net of taxes (34,259 ) (41 ) 157 (34,143 ) Balance at December 31, 2015 $ (91,503 ) $ (45 ) $ (2,766 ) $ (94,314 ) |
Schedule of Comprehensive Income (Loss) [Table Text Block] | Details of other comprehensive (loss) income are as follows: Three Months Ended December 31, 2016 2015 Pre-Tax Amount Tax Expense Net Amount Pre-Tax Amount Tax Expense (Benefit) Net Amount Foreign currency translation adjustments $ (9,930 ) $ — $ (9,930 ) $ (6,743 ) $ — $ (6,743 ) Postemployment benefits: Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs 125 48 77 127 49 78 Unrealized gain (loss) on investment securities available for sale 40 6 34 (13 ) (5 ) (8 ) Other comprehensive (loss) income $ (9,765 ) $ 54 $ (9,819 ) $ (6,629 ) $ 44 $ (6,673 ) Six Months Ended December 31, 2016 2015 Pre-Tax Amount Tax Expense Net Amount Pre-Tax Amount Tax Expense (Benefit) Net Amount Foreign currency translation adjustments $ (12,279 ) $ — $ (12,279 ) $ (34,259 ) $ — $ (34,259 ) Postemployment benefits: Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs 252 98 154 257 100 157 Unrealized gain (loss) on investment securities available for sale 66 17 49 (63 ) (22 ) (41 ) Other comprehensive (loss) income $ (11,961 ) $ 115 $ (12,076 ) $ (34,065 ) $ 78 $ (34,143 ) |
Benefit Plans (Tables)
Benefit Plans (Tables) | 6 Months Ended |
Dec. 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 December 31, 2016 2015 2016 2015 Components of net periodic cost: Service cost $ 32 $ 23 $ 7 $ 6 Interest cost 173 216 16 19 Expected return on plan assets (115 ) (123 ) — — Recognized net actuarial loss (gain) 218 229 (46 ) (53 ) Amortization of prior service cost 21 21 (67 ) (68 ) Net periodic cost $ 329 $ 366 $ (90 ) $ (96 ) Pension Benefits Retiree Health Care Benefits Six Months Ended December 31, 2016 2015 2016 2015 Components of net periodic cost: Service cost $ 63 $ 46 $ 14 $ 12 Interest cost 346 432 32 38 Expected return on plan assets (230 ) (246 ) — — Recognized net actuarial loss (gain) 436 457 (91 ) (106 ) Amortization of prior service cost 43 43 (135 ) (136 ) Net periodic cost $ 658 $ 732 $ (180 ) $ (192 ) |
Segment and Geographic Inform21
Segment and Geographic Information (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment financial information | Three Months Ended Service Center Based Distribution Fluid Power Businesses Total December 31, 2016 Net sales $ 501,950 $ 106,173 $ 608,123 Operating income for reportable segments 21,209 10,578 31,787 Depreciation and amortization of property 3,522 315 3,837 Capital expenditures 3,616 95 3,711 December 31, 2015 Net sales $ 507,906 $ 102,440 $ 610,346 Operating income for reportable segments 28,401 8,745 37,146 Depreciation and amortization of property 3,695 385 4,080 Capital expenditures 2,424 201 2,625 Six Months Ended Service Center Based Distribution Fluid Power Businesses Total December 31, 2016 Net sales $ 1,017,583 $ 215,388 $ 1,232,971 Operating income for reportable segments 46,855 22,406 69,261 Assets used in business 1,084,878 209,638 1,294,516 Depreciation and amortization of property 6,842 645 7,487 Capital expenditures 6,242 468 6,710 December 31, 2015 Net sales $ 1,041,513 $ 210,737 $ 1,252,250 Operating income for reportable segments 57,302 19,007 76,309 Assets used in business 1,143,601 206,794 1,350,395 Depreciation and amortization of property 7,312 698 8,010 Capital expenditures 5,311 426 5,737 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 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, 2016 2015 2016 2015 Operating income for reportable segments $ 31,787 $ 37,146 $ 69,261 $ 76,309 Adjustment for: Intangible amortization—Service Center Based Distribution 4,670 4,714 9,432 9,286 Intangible amortization—Fluid Power Businesses 1,424 1,528 2,899 3,039 Corporate and other (income) expense, net (11,963 ) (7,458 ) (23,944 ) (15,404 ) Total operating income 37,656 38,362 80,874 79,388 Interest expense, net 2,100 2,158 4,246 4,345 Other (income) expense, net (211 ) 55 (609 ) 1,059 Income before income taxes $ 35,767 $ 36,149 $ 77,237 $ 73,984 The change in corporate and other (income) expense, net is due to changes in the amounts and levels 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 Six Months Ended December 31, December 31, 2016 2015 2016 2015 Geographic Areas: United States $ 511,095 $ 509,399 $ 1,036,561 $ 1,047,768 Canada 62,204 67,647 124,785 133,880 Other countries 34,824 33,300 71,625 70,602 Total $ 608,123 $ 610,346 $ 1,232,971 $ 1,252,250 Other countries consist of Mexico, Australia and New Zealand |
Other (Income) Expense, Net (Ta
Other (Income) Expense, Net (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 2016 2015 Unrealized (gain) loss on assets held in rabbi trust for a non-qualified deferred compensation plan $ (114 ) $ (275 ) $ (444 ) $ 179 Foreign currency transactions (gain) loss (193 ) 148 (343 ) 671 Other, net 96 182 178 209 Total other (income) expense, net $ (211 ) $ 55 $ (609 ) $ 1,059 |
Basis of Presentation Change in
Basis of Presentation Change in Accounting Principle (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2016 | |
Payments Related to Tax Withholding for Share-based Compensation | $ 2,081 | $ 903 | ||
Deferred Finance Costs, Current, Net | $ 105 | 105 | ||
Deferred Finance Costs, Noncurrent, Net | 347 | 347 | ||
Adjustments for New Accounting Principle, Early Adoption [Member] | ||||
Excess Tax Benefit from Share-based Compensation, Operating Activities | $ 575 | $ 718 | ||
Payments Related to Tax Withholding for Share-based Compensation | $ 903 | |||
Adjustments for New Accounting Pronouncement [Member] | ||||
Deferred Finance Costs, Current, Net | $ 105 | |||
Deferred Finance Costs, Noncurrent, Net | $ 399 |
Business Combinations Business
Business Combinations Business Combinations Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2016 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 14, 2016 | |
Seals Unlimited [Member] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||
FY2016 Acquisitions Seals, HUB, SG Morris, & Atlantic Fasteners [Member] [Domain] | ||||
Total Consideration | $ 65,900 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 22,700 | |||
Intangible Assets, Net (Including Goodwill) | 43,200 | |||
Funding from Holdback Payments | 3,300 | |||
Atlantic Fasteners & S.G. Morris Acquisitions [Member] | ||||
Funding from Holdback Payments | $ 2,675 | |||
Atlantic Fasteners Acquisition [Member] | ||||
Funding from Holdback Payments | $ 625 |
Goodwill and Intangibles (Detai
Goodwill and Intangibles (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2016 | Jun. 30, 2016 | |
Changes in the carrying amount of goodwill by reportable segment | ||
Balance at June 30, 2016 | $ 202,700 | $ 254,406 |
Goodwill acquired during the period | 21,968 | |
Impairment | (64,794) | |
Goodwill added during the period | 3,220 | |
Other, primarily currency translation | (1,957) | (8,880) |
Balance at December 31, 2016 | 203,963 | 202,700 |
Service Center Based Distribution Segment [Member] | ||
Changes in the carrying amount of goodwill by reportable segment | ||
Balance at June 30, 2016 | 198,486 | 253,477 |
Goodwill acquired during the period | 18,683 | |
Impairment | (64,794) | |
Goodwill added during the period | 3,220 | |
Other, primarily currency translation | (1,513) | (8,880) |
Balance at December 31, 2016 | 200,193 | 198,486 |
Fluid Power Businesses Segment [Member] | ||
Changes in the carrying amount of goodwill by reportable segment | ||
Balance at June 30, 2016 | 4,214 | 929 |
Goodwill acquired during the period | 3,285 | |
Impairment | 0 | |
Goodwill added during the period | 0 | |
Other, primarily currency translation | (444) | 0 |
Balance at December 31, 2016 | $ 3,770 | $ 4,214 |
Goodwill and Intangibles (Det26
Goodwill and Intangibles (Details 1) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Amortization details resulting from business combinations | ||
Amount | $ 293,718 | $ 302,304 |
Accumulated Amortization | 120,258 | 111,064 |
Net Book Value | 173,460 | 191,240 |
Customer relationships | ||
Amortization details resulting from business combinations | ||
Amount | 231,953 | 239,132 |
Accumulated Amortization | 91,601 | 84,566 |
Net Book Value | 140,352 | 154,566 |
Trade names | ||
Amortization details resulting from business combinations | ||
Amount | 43,411 | 44,430 |
Accumulated Amortization | 17,565 | 16,099 |
Net Book Value | 25,846 | 28,331 |
Vendor relationships | ||
Amortization details resulting from business combinations | ||
Amount | 13,772 | 14,042 |
Accumulated Amortization | 8,307 | 8,003 |
Net Book Value | 5,465 | 6,039 |
Non-competition agreements | ||
Amortization details resulting from business combinations | ||
Amount | 4,582 | 4,700 |
Accumulated Amortization | 2,785 | 2,396 |
Net Book Value | $ 1,797 | $ 2,304 |
Goodwill and Intangibles (Det27
Goodwill and Intangibles (Details Textuals) - USD ($) $ in Thousands | 6 Months Ended | |||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | |
Goodwill [Line Items] | ||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 8.00% | |||
Goodwill | $ 203,963 | $ 202,700 | $ 254,406 | |
Goodwill, Purchase Accounting Adjustments | 3,220 | |||
Other Intangible Assets, Net | $ 100,664 | |||
Goodwill and Intangibles (Textuals) [Abstract] | ||||
Amortization expense for the remainder of 2017 | 12,200 | |||
Amortization expense for 2018 | 22,200 | |||
Amortization expense for 2019 | 20,500 | |||
Amortization expense for 2020 | 18,700 | |||
Amortization expense for 2021 | 17,200 | |||
Amortization expense for 2022 | 14,900 | |||
Measurement period adjustment impact [Domain] | ||||
Goodwill [Line Items] | ||||
Amortization | 156 | |||
Customer Relationships [Member] | ||||
Goodwill [Line Items] | ||||
Finite-Lived Intangible Assets, Purchase Accounting Adjustments | 2,636 | |||
Trade Names [Member] | ||||
Goodwill [Line Items] | ||||
Finite-Lived Intangible Assets, Purchase Accounting Adjustments | 584 | |||
Fluid Power Businesses [Member] | ||||
Goodwill [Line Items] | ||||
Accumulated goodwill impairment losses | 36,605 | |||
Service Center Based Distribution Segment [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill | 200,193 | $ 198,486 | $ 253,477 | |
Accumulated goodwill impairment losses | 64,794 | |||
Goodwill, Purchase Accounting Adjustments | $ 3,220 | |||
Canada Service Centers reporting unit [Member] | ||||
Goodwill [Line Items] | ||||
Reporting Unit, Amount of Fair Value in Excess of Carrying Amount | $ 8,000 | |||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 5.00% | |||
Goodwill | $ 163,000 | |||
U.S. Service Centers reporting unit [Domain] | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 2,628 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2016 | Jun. 30, 2016 | |
Line of Credit Facility [Line Items] | ||
Letters of Credit Outstanding, Amount | $ 2,698 | |
Deferred Finance Costs, Current, Net | 105 | |
Deferred Finance Costs, Noncurrent, Net | 347 | |
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 | 34,000 | $ 33,000 |
Letters of Credit Outstanding, Amount | 2,704 | 2,707 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 213,296 | $ 214,293 |
Debt, Weighted Average Interest Rate | 2.28% | 1.44% |
Revolving Credit Facility [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Commitment Fee Percentage | 0.09% | |
Revolving Credit Facility [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Commitment Fee Percentage | 0.175% | |
Long-term Debt [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Face Amount | $ 125,000 | |
Long-term Debt | $ 121,875 | $ 123,438 |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 1.81% | 1.50% |
State of Ohio Assumed Debt [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Face Amount | $ 2,359 | |
Long-term Debt | $ 1,764 | $ 1,896 |
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 | |
Debt Instrument, Unused Borrowing Capacity, Amount | 50,000 | |
Prudential Facility [Domain] | Prudential Facility - Series C [Member] | ||
Line of Credit Facility [Line Items] | ||
Long-term Debt | $ 120,000 | |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.19% | |
Prudential Facility [Domain] | Prudential Facility - Series D [Member] | ||
Line of Credit Facility [Line Items] | ||
Long-term Debt | $ 50,000 | |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.21% | |
Adjustments for New Accounting Pronouncement [Member] | ||
Line of Credit Facility [Line Items] | ||
Deferred Finance Costs, Current, Net | 105 | |
Deferred Finance Costs, Noncurrent, Net | $ 399 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Level 1 [Member] | Recurring [Member] | ||
Fair Value Measurements (Textuals) [Line Items] | ||
Marketable securities | $ 9,888 | $ 9,097 |
Shareholders' Equity Accumulate
Shareholders' Equity Accumulated Other Comprehensive Income (Loss) [Table] (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | $ (85,546) | |||
Other Comprehensive Loss, Unrealized loss on securities available for sale | $ 34 | $ (8) | 49 | $ (41) |
Amounts reclassified from accumulated other comprehensive income (loss) | 77 | 78 | 154 | 157 |
Net current-period other comprehensive (loss) income, net of taxes, Foreign Currency Translation Adjustment | (9,930) | (6,743) | (12,279) | (34,259) |
Net current-period other comprehensive (loss) income, net of taxes, Total accumulated other comprehensive income (loss) | (9,819) | (6,673) | (12,076) | (34,143) |
Balance at end of period | (97,622) | (97,622) | ||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | (84,034) | (84,760) | (81,685) | (57,244) |
Other Comprehensive Loss, Foreign Currency Translation Adjustment | (9,930) | (6,743) | (12,279) | (34,259) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Net current-period other comprehensive (loss) income, net of taxes, Foreign Currency Translation Adjustment | (9,930) | (6,743) | (12,279) | (34,259) |
Balance at end of period | (93,964) | (91,503) | (93,964) | (91,503) |
Unrealized loss (gain) on securities available for sale [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | (23) | (37) | (38) | (4) |
Other Comprehensive Loss, Unrealized loss on securities available for sale | 34 | (8) | 49 | (41) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Net current-period other comprehensive (loss) income, net of taxes, Unrealized gain (loss) on securities available for sale | 34 | (8) | 49 | (41) |
Balance at end of period | 11 | (45) | 11 | (45) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | (3,746) | (2,844) | (3,823) | (2,923) |
Other Comprehensive Loss, Postemployment Benefits, | 0 | 0 | 0 | 0 |
Net current-period other comprehensive (loss) income, net of taxes, Postemployment benefits | 77 | 78 | 154 | 157 |
Balance at end of period | (3,669) | (2,766) | (3,669) | (2,766) |
AOCI Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | (87,803) | (87,641) | (85,546) | (60,171) |
Other Comprehensive Loss, Total accumulated other comprehensive income (loss) | (9,896) | (6,751) | (12,230) | (34,300) |
Net current-period other comprehensive (loss) income, net of taxes, Total accumulated other comprehensive income (loss) | (9,819) | (6,673) | (12,076) | (34,143) |
Balance at end of period | $ (97,622) | $ (94,314) | $ (97,622) | $ (94,314) |
Shareholders' Equity (Details 1
Shareholders' Equity (Details 1 ) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, before Tax | $ (9,930) | $ (6,743) | $ (12,279) | $ (34,259) |
Foreign currency translation adjustments, Tax | 0 | 0 | 0 | 0 |
Foreign currency translation adjustments, net of Tax | (9,930) | (6,743) | (12,279) | (34,259) |
Postemployment benefits: | ||||
Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs, before Tax | 125 | 127 | 252 | 257 |
Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs, Tax | 48 | 49 | 98 | 100 |
Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs, net of Tax | 77 | 78 | 154 | 157 |
Unrealized gain (loss) on investment securities available for sale, before Tax | 40 | (13) | 66 | (63) |
Unrealized gain (loss) on investment securities available for sale, Tax | 6 | (5) | 17 | (22) |
Unrealized gain (loss) on investment securities available for sale, Net of Tax | 34 | (8) | 49 | (41) |
Other comprehensive (loss) income, before tax | (9,765) | (6,629) | (11,961) | (34,065) |
Other comprehensive (loss) income, Tax | 54 | 44 | 115 | 78 |
Other comprehensive (loss) income, net of tax | $ (9,819) | $ (6,673) | $ (12,076) | $ (34,143) |
Shareholders' Equity Shareholde
Shareholders' Equity Shareholders Equity Details Textuals (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 258 | 702 | 602 | 776 |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Benefits [Member] | ||||
Components of net periodic cost: | ||||
Service cost | $ 32 | $ 23 | $ 63 | $ 46 |
Interest cost | 173 | 216 | 346 | 432 |
Expected return on plan assets | (115) | (123) | (230) | (246) |
Recognized net actuarial loss (gain) | 218 | 229 | 436 | 457 |
Amortization of prior service cost | 21 | 21 | 43 | 43 |
Net periodic cost | 329 | 366 | 658 | 732 |
Retiree Health Care Benefits [Member] | ||||
Components of net periodic cost: | ||||
Service cost | 7 | 6 | 14 | 12 |
Interest cost | 16 | 19 | 32 | 38 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Recognized net actuarial loss (gain) | (46) | (53) | (91) | (106) |
Amortization of prior service cost | (67) | (68) | (135) | (136) |
Net periodic cost | $ (90) | $ (96) | $ (180) | $ (192) |
Benefit Plans (Details Textuals
Benefit Plans (Details Textuals) $ in Thousands | 6 Months Ended |
Dec. 31, 2016USD ($) | |
Pension Plans, Defined Benefit [Member] | |
Benefit Plans (Textuals) [Abstract] | |
Contribution to benefit plan | $ 400 |
Expected contribution to benefit plans for remainder of fiscal year | 350 |
Retiree Health Care Benefits [Member] | |
Benefit Plans (Textuals) [Abstract] | |
Contribution to benefit plan | 90 |
Expected contribution to benefit plans for remainder of fiscal year | $ 90 |
Segment and Geographic Inform35
Segment and Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2016 | |
Segment financial information | |||||
Net sales | $ 608,123 | $ 610,346 | $ 1,232,971 | $ 1,252,250 | |
Operating income for reportable segments | 37,656 | 38,362 | 80,874 | 79,388 | |
Assets used in business | 1,294,516 | 1,350,395 | 1,294,516 | 1,350,395 | $ 1,312,025 |
Depreciation and amortization of property | 3,837 | 4,080 | 7,487 | 8,010 | |
Capital expenditures | 3,711 | 2,625 | 6,710 | 5,737 | |
Operating Segments [Member] | |||||
Segment financial information | |||||
Operating income for reportable segments | 31,787 | 37,146 | 69,261 | 76,309 | |
Service Center Based Distribution [Member] | |||||
Segment financial information | |||||
Net sales | 501,950 | 507,906 | 1,017,583 | 1,041,513 | |
Operating income for reportable segments | 21,209 | 28,401 | 46,855 | 57,302 | |
Assets used in business | 1,084,878 | 1,143,601 | 1,084,878 | 1,143,601 | |
Depreciation and amortization of property | 3,522 | 3,695 | 6,842 | 7,312 | |
Capital expenditures | 3,616 | 2,424 | 6,242 | 5,311 | |
Fluid Power Businesses [Member] | |||||
Segment financial information | |||||
Net sales | 106,173 | 102,440 | 215,388 | 210,737 | |
Operating income for reportable segments | 10,578 | 8,745 | 22,406 | 19,007 | |
Assets used in business | 209,638 | 206,794 | 209,638 | 206,794 | |
Depreciation and amortization of property | 315 | 385 | 645 | 698 | |
Capital expenditures | $ 95 | $ 201 | $ 468 | $ 426 |
Segment and Geographic Inform36
Segment and Geographic Information (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of operating income for reportable segments to the consolidated income before income taxes | ||||
Total operating income | $ 37,656 | $ 38,362 | $ 80,874 | $ 79,388 |
Adjustment for: | ||||
Intangible amortization | 12,331 | 12,325 | ||
Corporate and other (income) expense, net | (11,963) | (7,458) | (23,944) | (15,404) |
Interest Expense, net | 2,100 | 2,158 | 4,246 | 4,345 |
Other (Income) Expense, net | (211) | 55 | (609) | 1,059 |
Income before income taxes | 35,767 | 36,149 | 77,237 | 73,984 |
Operating Segments [Member] | ||||
Reconciliation of operating income for reportable segments to the consolidated income before income taxes | ||||
Total operating income | 31,787 | 37,146 | 69,261 | 76,309 |
Service Center Based Distribution [Member] | ||||
Reconciliation of operating income for reportable segments to the consolidated income before income taxes | ||||
Total operating income | 21,209 | 28,401 | 46,855 | 57,302 |
Adjustment for: | ||||
Intangible amortization | 4,670 | 4,714 | 9,432 | 9,286 |
Fluid Power Businesses [Member] | ||||
Reconciliation of operating income for reportable segments to the consolidated income before income taxes | ||||
Total operating income | 10,578 | 8,745 | 22,406 | 19,007 |
Adjustment for: | ||||
Intangible amortization | $ 1,424 | $ 1,528 | $ 2,899 | $ 3,039 |
Segment and Geographic Inform37
Segment and Geographic Information (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net sales are presented in geographic areas | ||||
Net Sales | $ 608,123 | $ 610,346 | $ 1,232,971 | $ 1,252,250 |
United States | ||||
Net sales are presented in geographic areas | ||||
Net Sales | 511,095 | 509,399 | 1,036,561 | 1,047,768 |
Canada | ||||
Net sales are presented in geographic areas | ||||
Net Sales | 62,204 | 67,647 | 124,785 | 133,880 |
Other countries | ||||
Net sales are presented in geographic areas | ||||
Net Sales | $ 34,824 | $ 33,300 | $ 71,625 | $ 70,602 |
Segment and Geographic Inform38
Segment and Geographic Information (Details Textuals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment and Geographic Information (Textuals) [Abstract] | ||||
Sales primarily from businesses segment | $ 5,264 | $ 5,666 | $ 10,528 | $ 11,234 |
Other (Income) Expense, Net (De
Other (Income) Expense, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | ||||
Unrealized (gain) loss on assets held in rabbi trust for a nonqualified deferred compensation plan | $ (114) | $ (275) | $ (444) | $ 179 |
Foreign currency transactions (gain) loss | (193) | 148 | (343) | 671 |
Other, net | 96 | 182 | 178 | 209 |
Total other (income) expense, net | $ (211) | $ 55 | $ (609) | $ 1,059 |