Applied Industrial (AIT) 10-Q 26 Jan 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2017	Jan. 12, 2018
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, 2017
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		38,674,663

Condensed Statements of Consoli

Condensed Statements of Consolidated Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Income Statement [Abstract]
Net Sales	$ 667,187	$ 608,123	$ 1,347,888	$ 1,232,971
Cost of Sales	478,827	435,667	967,104	882,185
Gross Profit	188,360	172,456	380,784	350,786
Selling, Distribution and Administrative, including depreciation	141,645	134,600	282,232	269,511
Operating Income	46,715	37,856	98,552	81,275
Interest Expense, net	2,139	2,100	4,305	4,246
Other Income, net	(20)	(11)	(731)	(208)
Income Before Income Taxes	44,596	35,767	94,978	77,237
Income Tax Expense	13,646	11,682	30,307	25,781
Net Income	$ 30,950	$ 24,085	$ 64,671	$ 51,456
Net Income Per Share - Basic	$ 0.80	$ 0.62	$ 1.67	$ 1.32
Net Income Per Share - Diluted	0.79	0.61	1.65	1.31
Cash dividends per common share	$ 0.29	$ 0.28	$ 0.58	$ 0.56
Weighted average common shares outstanding for basic computation	38,716	38,985	38,824	39,015
Dilutive effect of potential common shares	490	386	446	337
Weighted average common shares outstanding for diluted computation	39,206	39,371	39,270	39,352

Condensed Statements of Consol3

Condensed Statements of Consolidated Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Net income per the condensed statements of consolidated income	$ 30,950	$ 24,085	$ 64,671	$ 51,456
Other comprehensive (loss) income, before tax:
Foreign currency translation adjustments	(6,031)	(9,930)	2,128	(12,279)
Postemployment benefits:
Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs	(22)	125	(36)	252
Unrealized gain on investment securities available for sale	46	40	42	66
Total of other comprehensive (loss) income, before tax	(6,007)	(9,765)	2,134	(11,961)
Income tax expense related to items of other comprehensive income	57	54	46	115
Other comprehensive (loss) income, net of tax	(6,064)	(9,819)	2,088	(12,076)
Comprehensive income, net of tax	$ 24,886	$ 14,266	$ 66,759	$ 39,380

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Dec. 31, 2017	Jun. 30, 2017
Current assets
Cash and cash equivalents	$ 85,324	$ 105,057
Accounts receivable, less allowances of $9,650 and $9,628	393,706	390,931
Inventories	386,943	345,145
Other current assets	37,538	41,409
Total current assets	903,511	882,542
Property, less accumulated depreciation of $171,604 and $166,143	111,962	108,068
Identifiable intangibles, net	153,432	163,562
Goodwill	209,001	206,135
Deferred tax assets	9,543	8,985
Other assets	18,433	18,303
TOTAL ASSETS	1,405,882	1,387,595
Current liabilities
Accounts payable	165,634	180,614
Current portion of long-term debt	6,378	4,814
Compensation and related benefits	48,726	58,785
Other current liabilities	50,889	65,540
Total current liabilities	271,627	309,753
Long-term debt	306,579	286,769
Postemployment benefits	14,022	16,715
Other liabilities	34,392	29,102
TOTAL LIABILITIES	626,620	642,339
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; 38,674 and 39,041 outstanding, respectively	10,000	10,000
Additional paid-in capital	166,008	164,655
Retained earnings	1,087,156	1,033,751
Treasury shares—at cost (15,539 and 15,172 shares)	(404,288)	(381,448)
Accumulated other comprehensive loss	(79,614)	(81,702)
TOTAL SHAREHOLDERS’ EQUITY	779,262	745,256
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 1,405,882	$ 1,387,595

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Dec. 31, 2017	Jun. 30, 2017
Current Assets:
Accounts Receivable, less allowances	$ 9,650	$ 9,628
Noncurrent Assets:
Property, less accumulated depreciation	$ 171,604	$ 166,143
Shareholders’ Equity
Preferred stock, par value	$ 0	$ 0
Preferred stock, shares authorized	2,500	2,500
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0	$ 0
Common stock, shares authorized	80,000	80,000
Common stock, shares issued	54,213	54,213
Common stock, shares outstanding	38,674	39,041
Treasury shares	15,539	15,172

Condensed Statements of Consol6

Condensed Statements of Consolidated Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash Flows from Operating Activities
Net income	$ 64,671	$ 51,456
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property	8,008	7,487
Amortization of intangibles	11,526	12,331
Unrealized foreign exchange transactions (gain) loss	(610)	272
Amortization of stock options and appreciation rights	1,013	1,180
Gain on sale of property	(333)	(1,581)
Other share-based compensation expense	1,577	1,278
Changes in operating assets and liabilities, net of acquisitions	(65,007)	(27,252)
Other, net	339	487
Net Cash provided by Operating Activities	21,184	45,658
Cash Flows from Investing Activities
Property purchases	(11,460)	(6,710)
Proceeds from property sales	596	2,648
Acquisition of businesses, net of cash acquired	(5,014)	0
Net Cash used in Investing Activities	(15,878)	(4,062)
Cash Flows from Financing Activities
Net borrowings under revolving credit facility	23,000	1,000
Long-term debt repayments	(1,679)	(1,695)
Purchases of treasury shares	(22,778)	(5,478)
Dividends paid	(22,571)	(21,893)
Acquisition holdback payments	(319)	(7,069)
Taxes paid for shares withheld	(1,298)	(2,081)
Exercise of stock options and appreciation rights	0	195
Net Cash used in Financing Activities	(25,645)	(37,021)
Effect of Exchange Rate Changes on Cash	606	(1,579)
(Decrease) increase in Cash and Cash Equivalents	(19,733)	2,996
Cash and Cash Equivalents at Beginning of Period	105,057	59,861
Cash and Cash Equivalents at End of Period	$ 85,324	$ 62,857

Basis of Presentation

Basis of Presentation	6 Months Ended
	Dec. 31, 2017
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, 2017 , and the results of its operations for the three and six month periods ended December 31, 2017 and 2016 and its cash flows for the six month periods ended December 31, 2017 and 2016 , have been included. The condensed consolidated balance sheet as of June 30, 2017 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, 2017 . Operating results for the three and six month periods ended December 31, 2017 are not necessarily indicative of the results that may be expected for the remainder of the fiscal year ending June 30, 2018 . Change in Accounting Principle - Net Periodic and Post-retirement Benefit Costs In March 2017, the FASB issued its final standard on improving the presentation of net periodic pension and postretirement benefit costs. This standard, issued as ASU 2017-07, requires that an employer report the service cost component for defined benefit plans and postretirement plans in the same line item in the income statement as other compensation costs arising from services rendered by the employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. This update is effective for annual financial statement periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted as of the beginning of an annual period. The Company early adopted ASU 2017-07 in the first quarter of fiscal 2018. The impact of the adoption of this guidance resulted in the reclassification of the other components of net benefit cost from selling, distribution, and administrative expense to other income, net in the condensed statements of consolidated income, resulting in an increase to operating income. There is no impact to income before income taxes, net income, or net income per share. The amounts reclassified resulted in an increase in operating income of $200 and $401 for the three and six months ended December 31, 2016 , respectively. 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 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. In January 2017, the FASB issued its final standard on simplifying the test for goodwill impairment. This standard, issued as ASU 2017-04, eliminates step 2 from the goodwill impairment test and instead requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge would be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to that reporting unit. This update is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. Upon adoption, the Company will apply this guidance prospectively to its annual and interim goodwill impairment tests and disclose the change in accounting principle. In May 2017, the FASB issued its final standard on scope of modification accounting. This standard, issued as 2017-09, provides guidance about which change to the terms or conditions of a share-based payment award require an entity to apply modification accounting. 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, 2017
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 2018 Acquisition On July 3, 2017, the Company acquired 100% of the outstanding stock of DICOFASA, a distributor of accessories and components for hydraulic systems and lubrication, located in Puebla, Mexico. DICOFASA is included in the Service Center Based Distribution segment. The purchase price for the acquisition was $5,920 , net tangible assets acquired were $3,460 , and goodwill was $2,460 based upon preliminary estimated fair values at the acquisition date, which are subject to adjustment. The purchase price includes $906 of acquisition holdback payments. Due to changes in foreign currency exchange rates, the balance of $837 is included in other current liabilities and other liabilities on the condensed consolidated balance sheets as of December 31, 2017, which will be paid on the first three anniversaries of the acquisition with interest at a fixed rate of 1.5% per annum. The Company funded this acquisition using available cash. The acquisition price and the results of operations for the acquired entity are not material in relation to the Company's consolidated financial statements. Fiscal 2017 Acquisition On March 3, 2017, the Company acquired substantially all of the net assets of Sentinel Fluid Controls ("Sentinel"), a distributor of hydraulic and lubrication components, systems and solutions operating from four locations. Sentinel is included in the Fluid Power Businesses segment. The purchase price for the acquisition was $3,755 , net tangible assets acquired were $3,130 , and goodwill was $625 based upon estimated fair values at the acquisition date. The purchase price included $982 of acquisition holdback payments. The remaining balance of $807 is included in other current liabilities and other liabilities on the condensed consolidated balance sheets, which will be paid plus interest at various times in the future. The Company funded the amount paid for the acquisition at closing using available cash. The acquisition price and the results of operations for the acquired entity are not material in relation to the Company's consolidated financial statements.

Goodwill and Intangibles

Goodwill and Intangibles	6 Months Ended
	Dec. 31, 2017
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, 2017 and the six month period ended December 31, 2017 are as follows: Service Centers Fluid Power Total Balance at July 1, 2016 $ 198,486 $ 4,214 $ 202,700 Goodwill acquired during the period 3,220 625 3,845 Other, primarily currency translation 34 (444 ) (410 ) Balance at June 30, 2017 $ 201,740 $ 4,395 $ 206,135 Goodwill acquired during the period 2,460 — 2,460 Other, primarily currency translation 406 — 406 Balance at December 31, 2017 $ 204,606 $ 4,395 $ 209,001 During the first quarter of fiscal 2017 , 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 has six ( 6 ) reporting units for which an annual goodwill impairment assessment was performed as of January 1, 2017. The Company concluded that all of the reporting units’ fair value exceeded their carrying amounts by at least 20% as of January 1, 2017. The fair values of the reporting units in accordance with 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 utilizes an analysis of comparable publicly traded companies. The techniques used in the Company's impairment tests have incorporated a number of assumptions that the Company believes to be reasonable and to reflect known market conditions at the measurement dates. 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. At December 31, 2017 and June 30, 2017 , accumulated goodwill impairment losses, subsequent to fiscal year 2002, totaled $64,794 related to the Service Center Based Distribution segment and $36,605 related to the Fluid Power Businesses segment. 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, 2017 Amount Accumulated Amortization Net Book Value Finite-Lived Identifiable Intangibles: Customer relationships $ 235,076 $ 110,325 $ 124,751 Trade names 44,028 20,882 23,146 Vendor relationships 11,513 7,023 4,490 Non-competition agreements 3,685 2,640 1,045 Total Identifiable Intangibles $ 294,302 $ 140,870 $ 153,432 June 30, 2017 Amount Accumulated Amortization Net Book Value Finite-Lived Identifiable Intangibles: Customer relationships $ 235,009 $ 102,414 $ 132,595 Trade names 43,873 19,295 24,578 Vendor relationships 14,152 9,141 5,011 Non-competition agreements 3,788 2,410 1,378 Total Identifiable Intangibles $ 296,822 $ 133,260 $ 163,562 Amounts include the impact of foreign currency translation. Fully amortized amounts are written off. Estimated future amortization expense by fiscal year (based on the Company’s identifiable intangible assets as of December 31, 2017 ) for the next five years is as follows: $11,300 for the remainder of 2018 , $20,900 for 2019 , $19,100 for 2020 , $17,500 for 2021 , $16,100 for 2022 and $14,500 for 2023 .

Debt (Notes)

Debt (Notes)	6 Months Ended
	Dec. 31, 2017
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, 2017 and June 30, 2017 , the Company had $118,750 and $120,313 , respectively, outstanding under the term loan. At December 31, 2017 , the Company had $23,000 outstanding under the revolver. No amount was outstanding under the revolver at June 30, 2017 . Unused lines under this facility, net of outstanding letters of credit of $2,459 and $2,441 to secure certain insurance obligations, totaled $224,541 and $247,559 at December 31, 2017 and June 30, 2017 , respectively, and are available to fund future acquisitions or other capital and operating requirements. The interest rate on the term loan was 2.63% as of December 31, 2017 and 2.25% as of June 30, 2017 . The weighted average interest rate on the revolving credit facility outstanding was 3.60% as of December 31, 2017 . 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, 2017 and June 30, 2017 , in order to secure certain insurance obligations. Other Long-Term Borrowings At December 31, 2017 and June 30, 2017 , 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, 2017 , $50,000 in additional financing was available under this facility. 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, 2017 and June 30, 2017 , $1,554 and $1,669 was outstanding, respectively. 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, 2017 and June 30, 2017 . Unamortized debt issue costs of $242 and $294 are included as a reduction of long-term debt on the condensed consolidated balance sheets as of December 31, 2017 and June 30, 2017 , respectively.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Dec. 31, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS Marketable securities measured at fair value at December 31, 2017 and June 30, 2017 totaled $11,193 and $10,481 , 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 Company's fixed interest rate debt outstanding under its unsecured shelf facility agreement with Prudential Investment Management approximated its carrying value at both December 31, 2017 and June 30, 2017 (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, 2017 and June 30, 2017 (Level 2 in the fair value hierarchy).

Income Taxes (Notes)

Income Taxes (Notes)	6 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	INCOME TAXES On December 22, 2017, the Tax Cuts and Jobs Act (the "Act") was enacted in the U.S., making significant changes to U.S. tax law. The Act reduces the U.S. federal corporate income tax rate from 35% to 21% , requires companies to pay a one-time transition tax on certain un-remitted earnings of foreign subsidiaries that were previously tax deferred, generally eliminates U.S. federal income tax on dividends from foreign subsidiaries, and creates new taxes on certain foreign-sourced earnings. In the quarter ended December 31, 2017 , the Company revised its estimated annual effective tax rate to reflect the change in the federal statutory rate from 35% to 21% . The rate change is administratively effective as of the beginning of our fiscal year, resulting in the Company using a blended statutory rate for the annual period of 28.06% . The corporate income tax rate change had a favorable impact to the Company of $5,906 for the six months ended December 31, 2017 . The SEC staff issued SAB 118, which provides guidance on accounting for the tax effects of the Act for which the accounting under ASC 740 is incomplete. To the extent that a company's accounting for certain income tax effects of the Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before enactment of the Act. Accordingly, as of December 31, 2017 , we have not completed our accounting for the tax effects of the Act. However, we have made a reasonable estimate of the one-time transition tax and recognized a provisional tax liability of $3,867 . We also re-measured the applicable deferred tax assets and liabilities based on the rates at which they are expected to reverse. However, we are still analyzing certain aspects of the Act and refining our calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. The provisional amount recorded related to the re-measurement of our deferred tax balance was not material to the Company's condensed consolidated financial statements. Overall, the Act resulted in a net tax benefit of $1,966 . Such amount was recorded as a discrete tax benefit and is included as a component of income tax expense in the condensed statements of consolidated income for the quarter and six months ending December 31, 2017 .

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Dec. 31, 2017
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 amounts shown net of taxes: Three Months Ended December 31, 2017 Foreign currency translation adjustment Unrealized gain on securities available for sale Postemployment benefits Total Accumulated other comprehensive income (loss) Balance at September 30, 2017 $ (71,288 ) $ 18 $ (2,280 ) $ (73,550 ) Other comprehensive (loss) income (6,067 ) 17 — (6,050 ) Amounts reclassified from accumulated other comprehensive (loss) income — — (14 ) (14 ) Net current-period other comprehensive (loss) income (6,067 ) 17 (14 ) (6,064 ) Balance at December 31, 2017 $ (77,355 ) $ 35 $ (2,294 ) $ (79,614 ) 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 (9,930 ) 34 77 (9,819 ) Balance at December 31, 2016 $ (93,964 ) $ 11 $ (3,669 ) $ (97,622 ) Six Months Ended December 31, 2017 Foreign currency translation adjustment Unrealized (loss) gain on securities available for sale Postemployment benefits Total Accumulated other comprehensive income (loss) Balance at July 1, 2017 $ (79,447 ) $ 21 $ (2,276 ) $ (81,702 ) Other comprehensive income 2,092 14 — 2,106 Amounts reclassified from accumulated other comprehensive (loss) income — — (18 ) (18 ) Net current-period other comprehensive income (loss) 2,092 14 (18 ) 2,088 Balance at December 31, 2017 $ (77,355 ) $ 35 $ (2,294 ) $ (79,614 ) Six Months Ended December 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, 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 (12,279 ) 49 154 (12,076 ) Balance at December, 31, 2016 $ (93,964 ) $ 11 $ (3,669 ) $ (97,622 ) Other Comprehensive (Loss) Income Details of other comprehensive (loss) income are as follows: Three Months Ended December 31, 2017 2016 Pre-Tax Amount Tax Expense (Benefit) Net Amount Pre-Tax Amount Tax Expense Net Amount Foreign currency translation adjustments $ (6,031 ) $ 36 $ (6,067 ) $ (9,930 ) $ — $ (9,930 ) Postemployment benefits: Reclassification of actuarial (gains) losses and prior service cost into other income, net and included in net periodic pension costs (22 ) (8 ) (14 ) 125 48 77 Unrealized gain on investment securities available for sale 46 29 17 40 6 34 Other comprehensive (loss) income $ (6,007 ) $ 57 $ (6,064 ) $ (9,765 ) $ 54 $ (9,819 ) Six Months Ended December 31, 2017 2016 Pre-Tax Amount Tax Expense (Benefit) Net Amount Pre-Tax Amount Tax Expense Net Amount Foreign currency translation adjustments $ 2,128 $ 36 $ 2,092 $ (12,279 ) $ — $ (12,279 ) Postemployment benefits: Reclassification of actuarial (gains) losses and prior service cost into other income, net and included in net periodic pension costs (36 ) (18 ) (18 ) 252 98 154 Unrealized gain on investment securities available for sale 42 28 14 66 17 49 Other comprehensive income (loss) $ 2,134 $ 46 $ 2,088 $ (11,961 ) $ 115 $ (12,076 ) Anti-dilutive Common Stock Equivalents In the three month periods ended December 31, 2017 and 2016 , stock options and stock appreciation rights related to 234 and 258 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, 2017 and 2016 , stock options and stock appreciation rights related to 274 and 602 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, 2017
Retirement Benefits [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, 2017 2016 2017 2016 Components of net periodic cost: Service cost $ 31 $ 32 $ 4 $ 7 Interest cost 184 173 13 16 Expected return on plan assets (119 ) (115 ) — — Recognized net actuarial loss (gain) 106 218 (38 ) (46 ) Amortization of prior service cost 7 21 (92 ) (67 ) Net periodic cost $ 209 $ 329 $ (113 ) $ (90 ) Pension Benefits Retiree Health Care Benefits Six Months Ended December 31, 2017 2016 2017 2016 Components of net periodic cost: Service cost $ 62 $ 63 $ 9 $ 14 Interest cost 367 346 26 32 Expected return on plan assets (237 ) (230 ) — — Recognized net actuarial loss (gain) 212 436 (77 ) (91 ) Amortization of prior service cost 14 43 (184 ) (135 ) Net periodic cost $ 418 $ 658 $ (226 ) $ (180 ) In accordance with the Company's adoption of ASU 2017-07, the Company reports the service cost component of the net periodic post-employment costs in the same line item in the income statement as other compensation costs arising from services rendered by the employees during the period. The other components of net periodic post-employment costs are presented in the income statement separately from the service cost component and outside a subtotal of income from operations. Therefore, $35 and $39 and $71 and $77 of service costs are included in selling, distribution and administrative expense, and $61 and $200 and $121 and $401 of net other periodic post-employment costs are included in other income, net in the condensed statements of consolidated income for the three and six months ended December 31, 2017 and 2016 , respectively. The Company contributed $1,000 to its pension benefit plans and $95 to its retiree health care plans in the six months ended December 31, 2017 . Expected contributions for the remainder of fiscal 2018 are $1,820 for the pension benefit plans to fund scheduled retirement payments and $95 for retiree health care plans.

Segment and Geographic Informat

Segment and Geographic Information	6 Months Ended
	Dec. 31, 2017
Segment Reporting [Abstract]
SEGMENT AND GEOGRAPHIC INFORMATION	SEGMENT AND GEOGRAPHIC INFORMATION Effective July 1, 2017, the Company completed a number of changes to its organizational structure that resulted in a change in how the Company manages its businesses, allocates resources and measures performance. As a result, the Company has revised its reportable segments to reflect how management currently reviews financial information and makes operating decisions. All Canadian and Mexican subsidiaries are now grouped under the Service Center Based Distribution segment. All prior-period amounts have been adjusted to reflect the reportable segment change. 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 $5,664 and $5,264 , in the three months ended December 31, 2017 and 2016 , respectively, and $11,755 and $10,528 in the six months ended December 31, 2017 and 2016, respectively, have been eliminated in the Segment Financial Information tables below. Three Months Ended Service Center Based Distribution Fluid Power Businesses Total December 31, 2017 Net sales $ 555,607 $ 111,580 $ 667,187 Operating income for reportable segments 30,006 13,824 43,830 Depreciation and amortization of property 3,802 279 4,081 Capital expenditures 4,822 302 5,124 December 31, 2016 Net sales $ 514,334 $ 93,789 $ 608,123 Operating income for reportable segments 22,087 9,700 31,787 Depreciation and amortization of property 3,608 229 3,837 Capital expenditures 3,344 367 3,711 Six Months Ended Service Center Based Distribution Fluid Power Businesses Total December 31, 2017 Net sales $ 1,124,520 $ 223,368 $ 1,347,888 Operating income for reportable segments 63,728 27,114 90,842 Assets used in business 1,199,704 206,178 1,405,882 Depreciation and amortization of property 7,471 537 8,008 Capital expenditures 10,370 1,090 11,460 December 31, 2016 Net sales $ 1,043,564 $ 189,407 $ 1,232,971 Operating income for reportable segments 49,083 20,178 69,261 Assets used in business 1,146,232 148,284 1,294,516 Depreciation and amortization of property 7,024 463 7,487 Capital expenditures 6,268 442 6,710 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, 2017 2016 2017 2016 Operating income for reportable segments $ 43,830 $ 31,787 $ 90,842 $ 69,261 Adjustment for: Intangible amortization—Service Center Based Distribution 4,425 4,752 8,937 9,598 Intangible amortization—Fluid Power Businesses 1,270 1,342 2,589 2,733 Corporate and other income, net (8,580 ) (12,163 ) (19,236 ) (24,345 ) Total operating income 46,715 37,856 98,552 81,275 Interest expense, net 2,139 2,100 4,305 4,246 Other income, net (20 ) (11 ) (731 ) (208 ) Income before income taxes $ 44,596 $ 35,767 $ 94,978 $ 77,237 The change in corporate and other income, net is due to changes in the amounts and levels of certain supplier support benefits as well as 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, 2017 2016 2017 2016 Geographic Areas: United States $ 557,031 $ 508,542 $ 1,124,576 $ 1,031,909 Canada 67,479 62,204 134,296 124,785 Other countries 42,677 37,377 89,016 76,277 Total $ 667,187 $ 608,123 $ 1,347,888 $ 1,232,971 Other countries consist of Mexico, Australia, New Zealand, and Singapore.

Other (Income) Expense, Net

Other (Income) Expense, Net	6 Months Ended
	Dec. 31, 2017
Other Income and Expenses [Abstract]
OTHER (INCOME) EXPENSE, NET	OTHER INCOME, NET Other income, net consists of the following: Three Months Ended Six Months Ended December 31, December 31, 2017 2016 2017 2016 Unrealized gain on assets held in rabbi trust for a non-qualified deferred compensation plan $ (417 ) $ (114 ) $ (784 ) $ (444 ) Foreign currency transactions loss (gain) 260 (193 ) (51 ) (343 ) Net other periodic post-employment costs 61 200 121 401 Other, net 76 96 (17 ) 178 Total other income, net $ (20 ) $ (11 ) $ (731 ) $ (208 )

Subsequent Events (Notes)

Subsequent Events (Notes)	6 Months Ended
	Dec. 31, 2017
Subsequent Event [Line Items]
Subsequent Events [Text Block]	11. SUBSEQUENT EVENTS We have evaluated events and transactions occurring subsequent to December 31, 2017 through the date the financial statements were issued. On January 9, 2018, the Company entered into a definitive agreement to acquire 100% of the outstanding stock of FCX Performance, Inc. ("FCX") headquartered in Columbus, Ohio, for a purchase price of approximately $768,000 . The acquisition is expected to close January 31, 2018, as the U.S. Federal Trade Commission granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. The transaction will be financed with a new credit facility comprised of a $780,000 Term Loan A and $250,000 revolver, effective with the transaction closing. As a distributor of highly engineered valves, instruments, pumps and lifecycle services to MRO (Maintenance, Repair & Operations) and OEM (Original Equipment Manufacturer) customers across diverse industrial and process end markets, this business will be included in the Fluid Power Businesses Segment.

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	Change in Accounting Principle - Net Periodic and Post-retirement Benefit Costs In March 2017, the FASB issued its final standard on improving the presentation of net periodic pension and postretirement benefit costs. This standard, issued as ASU 2017-07, requires that an employer report the service cost component for defined benefit plans and postretirement plans in the same line item in the income statement as other compensation costs arising from services rendered by the employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. This update is effective for annual financial statement periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted as of the beginning of an annual period. The Company early adopted ASU 2017-07 in the first quarter of fiscal 2018. The impact of the adoption of this guidance resulted in the reclassification of the other components of net benefit cost from selling, distribution, and administrative expense to other income, net in the condensed statements of consolidated income, resulting in an increase to operating income. There is no impact to income before income taxes, net income, or net income per share. The amounts reclassified resulted in an increase in operating income of $200 and $401 for the three and six months ended December 31, 2016 , respectively.
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 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. In January 2017, the FASB issued its final standard on simplifying the test for goodwill impairment. This standard, issued as ASU 2017-04, eliminates step 2 from the goodwill impairment test and instead requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge would be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to that reporting unit. This update is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. Upon adoption, the Company will apply this guidance prospectively to its annual and interim goodwill impairment tests and disclose the change in accounting principle. In May 2017, the FASB issued its final standard on scope of modification accounting. This standard, issued as 2017-09, provides guidance about which change to the terms or conditions of a share-based payment award require an entity to apply modification accounting. 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, 2017
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, 2017 and the six month period ended December 31, 2017 are as follows: Service Centers Fluid Power Total Balance at July 1, 2016 $ 198,486 $ 4,214 $ 202,700 Goodwill acquired during the period 3,220 625 3,845 Other, primarily currency translation 34 (444 ) (410 ) Balance at June 30, 2017 $ 201,740 $ 4,395 $ 206,135 Goodwill acquired during the period 2,460 — 2,460 Other, primarily currency translation 406 — 406 Balance at December 31, 2017 $ 204,606 $ 4,395 $ 209,001
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, 2017 Amount Accumulated Amortization Net Book Value Finite-Lived Identifiable Intangibles: Customer relationships $ 235,076 $ 110,325 $ 124,751 Trade names 44,028 20,882 23,146 Vendor relationships 11,513 7,023 4,490 Non-competition agreements 3,685 2,640 1,045 Total Identifiable Intangibles $ 294,302 $ 140,870 $ 153,432 June 30, 2017 Amount Accumulated Amortization Net Book Value Finite-Lived Identifiable Intangibles: Customer relationships $ 235,009 $ 102,414 $ 132,595 Trade names 43,873 19,295 24,578 Vendor relationships 14,152 9,141 5,011 Non-competition agreements 3,788 2,410 1,378 Total Identifiable Intangibles $ 296,822 $ 133,260 $ 163,562 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, 2017
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 amounts shown net of taxes: Three Months Ended December 31, 2017 Foreign currency translation adjustment Unrealized gain on securities available for sale Postemployment benefits Total Accumulated other comprehensive income (loss) Balance at September 30, 2017 $ (71,288 ) $ 18 $ (2,280 ) $ (73,550 ) Other comprehensive (loss) income (6,067 ) 17 — (6,050 ) Amounts reclassified from accumulated other comprehensive (loss) income — — (14 ) (14 ) Net current-period other comprehensive (loss) income (6,067 ) 17 (14 ) (6,064 ) Balance at December 31, 2017 $ (77,355 ) $ 35 $ (2,294 ) $ (79,614 ) 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 (9,930 ) 34 77 (9,819 ) Balance at December 31, 2016 $ (93,964 ) $ 11 $ (3,669 ) $ (97,622 ) Six Months Ended December 31, 2017 Foreign currency translation adjustment Unrealized (loss) gain on securities available for sale Postemployment benefits Total Accumulated other comprehensive income (loss) Balance at July 1, 2017 $ (79,447 ) $ 21 $ (2,276 ) $ (81,702 ) Other comprehensive income 2,092 14 — 2,106 Amounts reclassified from accumulated other comprehensive (loss) income — — (18 ) (18 ) Net current-period other comprehensive income (loss) 2,092 14 (18 ) 2,088 Balance at December 31, 2017 $ (77,355 ) $ 35 $ (2,294 ) $ (79,614 ) Six Months Ended December 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, 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 (12,279 ) 49 154 (12,076 ) Balance at December, 31, 2016 $ (93,964 ) $ 11 $ (3,669 ) $ (97,622 )
Schedule of Comprehensive Income (Loss) [Table Text Block]	Details of other comprehensive (loss) income are as follows: Three Months Ended December 31, 2017 2016 Pre-Tax Amount Tax Expense (Benefit) Net Amount Pre-Tax Amount Tax Expense Net Amount Foreign currency translation adjustments $ (6,031 ) $ 36 $ (6,067 ) $ (9,930 ) $ — $ (9,930 ) Postemployment benefits: Reclassification of actuarial (gains) losses and prior service cost into other income, net and included in net periodic pension costs (22 ) (8 ) (14 ) 125 48 77 Unrealized gain on investment securities available for sale 46 29 17 40 6 34 Other comprehensive (loss) income $ (6,007 ) $ 57 $ (6,064 ) $ (9,765 ) $ 54 $ (9,819 ) Six Months Ended December 31, 2017 2016 Pre-Tax Amount Tax Expense (Benefit) Net Amount Pre-Tax Amount Tax Expense Net Amount Foreign currency translation adjustments $ 2,128 $ 36 $ 2,092 $ (12,279 ) $ — $ (12,279 ) Postemployment benefits: Reclassification of actuarial (gains) losses and prior service cost into other income, net and included in net periodic pension costs (36 ) (18 ) (18 ) 252 98 154 Unrealized gain on investment securities available for sale 42 28 14 66 17 49 Other comprehensive income (loss) $ 2,134 $ 46 $ 2,088 $ (11,961 ) $ 115 $ (12,076 )

Benefit Plans (Tables)

Benefit Plans (Tables)	6 Months Ended
	Dec. 31, 2017
Retirement Benefits [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, 2017 2016 2017 2016 Components of net periodic cost: Service cost $ 31 $ 32 $ 4 $ 7 Interest cost 184 173 13 16 Expected return on plan assets (119 ) (115 ) — — Recognized net actuarial loss (gain) 106 218 (38 ) (46 ) Amortization of prior service cost 7 21 (92 ) (67 ) Net periodic cost $ 209 $ 329 $ (113 ) $ (90 ) Pension Benefits Retiree Health Care Benefits Six Months Ended December 31, 2017 2016 2017 2016 Components of net periodic cost: Service cost $ 62 $ 63 $ 9 $ 14 Interest cost 367 346 26 32 Expected return on plan assets (237 ) (230 ) — — Recognized net actuarial loss (gain) 212 436 (77 ) (91 ) Amortization of prior service cost 14 43 (184 ) (135 ) Net periodic cost $ 418 $ 658 $ (226 ) $ (180 )

Segment and Geographic Inform22

Segment and Geographic Information (Tables)	6 Months Ended
	Dec. 31, 2017
Segment Reporting [Abstract]
Segment financial information	Three Months Ended Service Center Based Distribution Fluid Power Businesses Total December 31, 2017 Net sales $ 555,607 $ 111,580 $ 667,187 Operating income for reportable segments 30,006 13,824 43,830 Depreciation and amortization of property 3,802 279 4,081 Capital expenditures 4,822 302 5,124 December 31, 2016 Net sales $ 514,334 $ 93,789 $ 608,123 Operating income for reportable segments 22,087 9,700 31,787 Depreciation and amortization of property 3,608 229 3,837 Capital expenditures 3,344 367 3,711 Six Months Ended Service Center Based Distribution Fluid Power Businesses Total December 31, 2017 Net sales $ 1,124,520 $ 223,368 $ 1,347,888 Operating income for reportable segments 63,728 27,114 90,842 Assets used in business 1,199,704 206,178 1,405,882 Depreciation and amortization of property 7,471 537 8,008 Capital expenditures 10,370 1,090 11,460 December 31, 2016 Net sales $ 1,043,564 $ 189,407 $ 1,232,971 Operating income for reportable segments 49,083 20,178 69,261 Assets used in business 1,146,232 148,284 1,294,516 Depreciation and amortization of property 7,024 463 7,487 Capital expenditures 6,268 442 6,710
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, 2017 2016 2017 2016 Operating income for reportable segments $ 43,830 $ 31,787 $ 90,842 $ 69,261 Adjustment for: Intangible amortization—Service Center Based Distribution 4,425 4,752 8,937 9,598 Intangible amortization—Fluid Power Businesses 1,270 1,342 2,589 2,733 Corporate and other income, net (8,580 ) (12,163 ) (19,236 ) (24,345 ) Total operating income 46,715 37,856 98,552 81,275 Interest expense, net 2,139 2,100 4,305 4,246 Other income, net (20 ) (11 ) (731 ) (208 ) Income before income taxes $ 44,596 $ 35,767 $ 94,978 $ 77,237 The change in corporate and other income, net is due to changes in the amounts and levels of certain supplier support benefits as well as 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, 2017 2016 2017 2016 Geographic Areas: United States $ 557,031 $ 508,542 $ 1,124,576 $ 1,031,909 Canada 67,479 62,204 134,296 124,785 Other countries 42,677 37,377 89,016 76,277 Total $ 667,187 $ 608,123 $ 1,347,888 $ 1,232,971 Other countries consist of Mexico, Australia, New Zealand

Other (Income) Expense, Net (Ta

Other (Income) Expense, Net (Tables)	6 Months Ended
	Dec. 31, 2017
Other Income and Expenses [Abstract]
Other (income) expense, net	Other income, net consists of the following: Three Months Ended Six Months Ended December 31, December 31, 2017 2016 2017 2016 Unrealized gain on assets held in rabbi trust for a non-qualified deferred compensation plan $ (417 ) $ (114 ) $ (784 ) $ (444 ) Foreign currency transactions loss (gain) 260 (193 ) (51 ) (343 ) Net other periodic post-employment costs 61 200 121 401 Other, net 76 96 (17 ) 178 Total other income, net $ (20 ) $ (11 ) $ (731 ) $ (208 )

Basis of Presentation Change in

Basis of Presentation Change in Accounting Principle (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Net other periodic post-employment costs	$ 61	$ 200	$ 121	$ 401
Adjustments for New Accounting Pronouncement [Member]
Net other periodic post-employment costs		$ 200		$ 401

Business Combinations Business

Business Combinations Business Combinations Textuals (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2017	Jun. 30, 2017	Jul. 03, 2017
DICOFASA [Member]
Business Acquisition, Percentage of Voting Interests Acquired			100.00%
Total Consideration	$ 5,920
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net	3,460
Intangible Assets, Net (Including Goodwill)	2,460
Funding from Holdback Payments			$ 906
Debt Instrument, Interest Rate, Stated Percentage			1.50%
DICOFASA [Member] | Other Liabilities [Member]
Funding from Holdback Payments	$ 837
Sentinel Fluid Controls [Member]
Total Consideration		$ 3,755
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net		3,130
Intangible Assets, Net (Including Goodwill)		625
Funding from Holdback Payments		982
Sentinel Fluid Controls [Member] | Other Liabilities [Member]
Funding from Holdback Payments		$ 807

Goodwill and Intangibles (Detai

Goodwill and Intangibles (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Dec. 31, 2017	Jun. 30, 2017
Changes in the carrying amount of goodwill by reportable segment
Balance at beginning of period	$ 206,135	$ 202,700
Goodwill acquired during the period	2,460	3,845
Other, primarily currency translation	406	(410)
Balance at end of period	209,001	206,135
Service Center Based Distribution Segment [Member]
Changes in the carrying amount of goodwill by reportable segment
Balance at beginning of period	201,740	198,486
Goodwill acquired during the period	2,460	3,220
Other, primarily currency translation	406	34
Balance at end of period	204,606	201,740
Fluid Power Businesses Segment [Member]
Changes in the carrying amount of goodwill by reportable segment
Balance at beginning of period	4,395	4,214
Goodwill acquired during the period	0	625
Other, primarily currency translation	0	(444)
Balance at end of period	$ 4,395	$ 4,395

Goodwill and Intangibles (Det27

Goodwill and Intangibles (Details 1) - USD ($) $ in Thousands	Dec. 31, 2017	Jun. 30, 2017
Amortization details resulting from business combinations
Amount	$ 294,302	$ 296,822
Accumulated Amortization	140,870	133,260
Net Book Value	153,432	163,562
Customer relationships
Amortization details resulting from business combinations
Amount	235,076	235,009
Accumulated Amortization	110,325	102,414
Net Book Value	124,751	132,595
Trade names
Amortization details resulting from business combinations
Amount	44,028	43,873
Accumulated Amortization	20,882	19,295
Net Book Value	23,146	24,578
Vendor relationships
Amortization details resulting from business combinations
Amount	11,513	14,152
Accumulated Amortization	7,023	9,141
Net Book Value	4,490	5,011
Non-competition agreements
Amortization details resulting from business combinations
Amount	3,685	3,788
Accumulated Amortization	2,640	2,410
Net Book Value	$ 1,045	$ 1,378

Goodwill and Intangibles (Det28

Goodwill and Intangibles (Details Textuals) $ in Thousands	6 Months Ended	12 Months Ended
	Dec. 31, 2016USD ($)	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)
Goodwill [Line Items]
Number of Reporting Units		6
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount		20.00%
Goodwill and Intangibles (Textuals) [Abstract]
Amortization expense for the remainder of 2018			$ 11,300
Amortization expense for 2019			20,900
Amortization expense for 2020			19,100
Amortization expense for 2021			17,500
Amortization expense for 2022			16,100
Amortization expense for 2023			14,500
Measurement period adjustment impact [Domain]
Goodwill [Line Items]
Amortization	$ 156
Service Center Based Distribution Segment [Member]
Goodwill [Line Items]
Goodwill, Purchase Accounting Adjustments		$ 3,220
Accumulated goodwill impairment losses			64,794
Fluid Power Businesses [Member]
Goodwill [Line Items]
Accumulated goodwill impairment losses			$ 36,605
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

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2017	Jun. 30, 2017
Line of Credit Facility [Line Items]
Letters of Credit Outstanding, Amount	$ 2,698
Debt Issuance Costs, Current, Net	105
Debt Issuance Costs, Noncurrent, Net	242	$ 294
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	23,000
Letters of Credit Outstanding, Amount	2,459	2,441
Line of Credit Facility, Remaining Borrowing Capacity	$ 224,541	247,559
Debt, Weighted Average Interest Rate	3.60%
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	$ 118,750	$ 120,313
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate	2.63%	2.25%
Prudential Facility [Domain]
Line of Credit Facility [Line Items]
Long-term Debt	$ 170,000
Debt Instrument, Unused Borrowing Capacity, Amount	50,000
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 - 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%
State of Ohio Assumed Debt [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Face Amount	$ 2,359
Long-term Debt	$ 1,554	$ 1,669
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate	1.50%

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Jun. 30, 2017
Level 1 [Member] | Recurring [Member]
Fair Value Measurements (Textuals) [Line Items]
Marketable securities	$ 11,193	$ 10,481

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Dec. 31, 2017	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent		28.06%	35.00%
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent	21.00%
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount		$ 5,906
Tax Cuts and Jobs Act - Transition tax amount		3,867
Tax Cuts and Jobs Act - Net Tax Benefit		$ 1,966

Shareholders' Equity Accumulate

Shareholders' Equity Accumulated Other Comprehensive Income (Loss) [Table] (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period			$ (81,702)
Other Comprehensive Loss, Unrealized loss on securities available for sale	$ 17	$ 34	14	$ 49
Amounts reclassified from accumulated other comprehensive (loss) income	(14)	77	(18)	154
Net current-period other comprehensive (loss) income, Foreign Currency Translation Adjustment	(6,067)	(9,930)	2,092	(12,279)
Net current-period other comprehensive (loss) income, Total accumulated other comprehensive income (loss)	(6,064)	(9,819)	2,088	(12,076)
Balance at end of period	(79,614)		(79,614)
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(71,288)	(84,034)	(79,447)	(81,685)
Other Comprehensive Loss, Foreign Currency Translation Adjustment	(6,067)	(9,930)	2,092	(12,279)
Amounts reclassified from accumulated other comprehensive (loss) income	0	0	0	0
Net current-period other comprehensive (loss) income, Foreign Currency Translation Adjustment	(6,067)	(9,930)	2,092	(12,279)
Balance at end of period	(77,355)	(93,964)	(77,355)	(93,964)
Unrealized gain (loss) on securities available for sale [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	18	(23)	21	(38)
Other Comprehensive Loss, Unrealized loss on securities available for sale	17	34	14	49
Amounts reclassified from accumulated other comprehensive (loss) income	0	0	0	0
Net current-period other comprehensive (loss) income, Unrealized gain (loss) on securities available for sale	17	34	14	49
Balance at end of period	35	11	35	11
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(2,280)	(3,746)	(2,276)	(3,823)
Other Comprehensive Loss, Postemployment Benefits,	0	0	0	0
Net current-period other comprehensive (loss) income, Postemployment benefits	(14)	77	(18)	154
Balance at end of period	(2,294)	(3,669)	(2,294)	(3,669)
AOCI Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(73,550)	(87,803)	(81,702)	(85,546)
Other Comprehensive Loss, Total accumulated other comprehensive income (loss)	(6,050)	(9,896)	2,106	(12,230)
Net current-period other comprehensive (loss) income, Total accumulated other comprehensive income (loss)	(6,064)	(9,819)	2,088	(12,076)
Balance at end of period	$ (79,614)	$ (97,622)	$ (79,614)	$ (97,622)

Shareholders' Equity (Details 1

Shareholders' Equity (Details 1 ) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Other comprehensive income (loss):
Foreign currency translation adjustments, before Tax	$ (6,031)	$ (9,930)	$ 2,128	$ (12,279)
Foreign currency translation adjustments, Tax	36	0	36	0
Foreign currency translation adjustments, net of Tax	(6,067)	(9,930)	2,092	(12,279)
Postemployment benefits:
Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs, before Tax	(22)	125	(36)	252
Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs, Tax	(8)	48	(18)	98
Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs, net of Tax	(14)	77	(18)	154
Unrealized gain on investment securities available for sale, before Tax	46	40	42	66
Unrealized gain on investment securities available for sale, Tax	29	6	28	17
Unrealized gain on investment securities available for sale, Net of Tax	17	34	14	49
Other comprehensive (loss) income, before tax	(6,007)	(9,765)	2,134	(11,961)
Other comprehensive (loss) income, Tax	57	54	46	115
Other comprehensive (loss) income, net of tax	$ (6,064)	$ (9,819)	$ 2,088	$ (12,076)

Shareholders' Equity Shareholde

Shareholders' Equity Shareholders Equity Details Textuals (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Statement of Stockholders' Equity [Abstract]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	234	258	274	602

Benefit Plans (Details)

Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Components of net periodic cost:
Service cost	$ 35	$ 39	$ 71	$ 77
Pension Benefits [Member]
Components of net periodic cost:
Service cost	31	32	62	63
Interest cost	184	173	367	346
Expected return on plan assets	(119)	(115)	(237)	(230)
Recognized net actuarial loss (gain)	106	218	212	436
Amortization of prior service cost	7	21	14	43
Net periodic cost	209	329	418	658
Retiree Health Care Benefits [Member]
Components of net periodic cost:
Service cost	4	7	9	14
Interest cost	13	16	26	32
Expected return on plan assets	0	0	0	0
Recognized net actuarial loss (gain)	(38)	(46)	(77)	(91)
Amortization of prior service cost	(92)	(67)	(184)	(135)
Net periodic cost	$ (113)	$ (90)	$ (226)	$ (180)

Benefit Plans (Details Textuals

Benefit Plans (Details Textuals) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Service Cost	$ 35	$ 39	$ 71	$ 77
Net other periodic post-employment costs	61	200	121	401
Pension Plans, Defined Benefit [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Service Cost	31	32	62	63
Benefit Plans (Textuals) [Abstract]
Contribution to benefit plan			1,000
Expected contribution to benefit plans for remainder of fiscal year	1,820		1,820
Retiree Health Care Benefits [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Service Cost	4	$ 7	9	$ 14
Benefit Plans (Textuals) [Abstract]
Contribution to benefit plan			95
Expected contribution to benefit plans for remainder of fiscal year	$ 95		$ 95

Segment and Geographic Inform37

Segment and Geographic Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Jun. 30, 2017
Segment financial information
Net sales	$ 667,187	$ 608,123	$ 1,347,888	$ 1,232,971
Operating income for reportable segments	46,715	37,856	98,552	81,275
Assets used in business	1,405,882	1,294,516	1,405,882	1,294,516	$ 1,387,595
Depreciation and amortization of property	4,081	3,837	8,008	7,487
Capital expenditures	5,124	3,711	11,460	6,710
Operating Segments [Member]
Segment financial information
Operating income for reportable segments	43,830	31,787	90,842	69,261
Service Center Based Distribution [Member]
Segment financial information
Net sales	555,607	514,334	1,124,520	1,043,564
Operating income for reportable segments	30,006	22,087	63,728	49,083
Assets used in business	1,199,704	1,146,232	1,199,704	1,146,232
Depreciation and amortization of property	3,802	3,608	7,471	7,024
Capital expenditures	4,822	3,344	10,370	6,268
Fluid Power Businesses [Member]
Segment financial information
Net sales	111,580	93,789	223,368	189,407
Operating income for reportable segments	13,824	9,700	27,114	20,178
Assets used in business	206,178	148,284	206,178	148,284
Depreciation and amortization of property	279	229	537	463
Capital expenditures	$ 302	$ 367	$ 1,090	$ 442

Segment and Geographic Inform38

Segment and Geographic Information (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of operating income for reportable segments to the consolidated income before income taxes
Total operating income	$ 46,715	$ 37,856	$ 98,552	$ 81,275
Adjustment for:
Intangible amortization			11,526	12,331
Corporate and other income, net	(8,580)	(12,163)	(19,236)	(24,345)
Interest Expense, net	2,139	2,100	4,305	4,246
Other Income, net	(20)	(11)	(731)	(208)
Income before income taxes	44,596	35,767	94,978	77,237
Operating Segments [Member]
Reconciliation of operating income for reportable segments to the consolidated income before income taxes
Total operating income	43,830	31,787	90,842	69,261
Service Center Based Distribution [Member]
Reconciliation of operating income for reportable segments to the consolidated income before income taxes
Total operating income	30,006	22,087	63,728	49,083
Adjustment for:
Intangible amortization	4,425	4,752	8,937	9,598
Fluid Power Businesses [Member]
Reconciliation of operating income for reportable segments to the consolidated income before income taxes
Total operating income	13,824	9,700	27,114	20,178
Adjustment for:
Intangible amortization	$ 1,270	$ 1,342	$ 2,589	$ 2,733

Segment and Geographic Inform39

Segment and Geographic Information (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Net sales are presented in geographic areas
Net Sales	$ 667,187	$ 608,123	$ 1,347,888	$ 1,232,971
United States
Net sales are presented in geographic areas
Net Sales	557,031	508,542	1,124,576	1,031,909
Canada
Net sales are presented in geographic areas
Net Sales	67,479	62,204	134,296	124,785
Other countries
Net sales are presented in geographic areas
Net Sales	$ 42,677	$ 37,377	$ 89,016	$ 76,277

Segment and Geographic Inform40

Segment and Geographic Information (Details Textuals) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Net sales	$ 667,187	$ 608,123	$ 1,347,888	$ 1,232,971
Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Net sales	$ 5,664	$ 5,264	$ 11,755	$ 10,528

Other (Income) Expense, Net (De

Other (Income) Expense, Net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Other Income and Expenses [Abstract]
Unrealized gain on assets held in rabbi trust for a non-qualified deferred compensation plan	$ (417)	$ (114)	$ (784)	$ (444)
Foreign currency transactions loss (gain)	260	(193)	(51)	(343)
Net other periodic post-employment costs	61	200	121	401
Other, net	76	96	(17)	178
Total other income, net	$ (20)	$ (11)	$ (731)	$ (208)

Subsequent Events (Details)

Subsequent Events (Details) - FCX Performance, Inc [Member] - Subsequent Event [Member] $ in Thousands	Jan. 09, 2018USD ($)
Subsequent Event [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired	100.00%
Business Combination, Purchase Price	$ 768,000
Debt Instrument, Face Amount	780,000
Line of Credit Facility, Maximum Borrowing Capacity	$ 250,000