Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2020 | Apr. 17, 2020 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-2299 | |
Entity Registrant Name | APPLIED INDUSTRIAL TECHNOLOGIES, INC. | |
Entity Incorporation, State or Country Code | OH | |
Entity Tax Identification Number | 34-0117420 | |
Entity Address, Address Line One | One Applied Plaza | |
Entity Address, City or Town | Cleveland | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 44115 | |
City Area Code | 216 | |
Local Phone Number | 426-4000 | |
Title of 12(b) Security | Common Stock, without par value | |
Trading Symbol | AIT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 38,707,000 | |
Document and Entity Information [Abstract] | ||
Entity Central Index Key | 0000109563 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Statements of Consoli
Condensed Statements of Consolidated Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 830,797 | $ 885,443 | $ 2,520,576 | $ 2,589,996 |
Cost of sales | 594,045 | 629,884 | 1,791,130 | 1,839,724 |
Gross profit | 236,752 | 255,559 | 729,446 | 750,272 |
Selling, distribution and administrative expense, including depreciation | 183,702 | 189,456 | 556,485 | 556,865 |
Goodwill & intangible impairment | 131,000 | 131,000 | ||
Goodwill & intangible impairment | 31,594 | 31,594 | ||
Operating (loss) income | (77,950) | 34,509 | 41,961 | 161,813 |
Interest expense, net | 8,805 | 9,947 | 28,447 | 30,001 |
Other income, net | (1,428) | (1,256) | (1,643) | (549) |
(Loss) income before income taxes | (85,327) | 25,818 | 15,157 | 132,361 |
Income tax (benefit) expense | (2,550) | 9,283 | 21,104 | 28,171 |
Net (loss) income | $ (82,777) | $ 16,535 | $ (5,947) | $ 104,190 |
Net (loss) income per share - basic | $ (2.14) | $ 0.43 | $ (0.15) | $ 2.69 |
Net (loss) income per share - diluted | $ (2.14) | $ 0.42 | $ (0.15) | $ 2.66 |
Weighted average common shares outstanding for basic computation | 38,682 | 38,643 | 38,647 | 38,701 |
Dilutive effect of potential common shares | 0 | 396 | 0 | 521 |
Weighted average common shares outstanding for diluted computation | 38,682 | 39,039 | 38,647 | 39,222 |
Condensed Statements of Conso_2
Condensed Statements of Consolidated Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Net (loss) income per the condensed statements of consolidated income | $ (82,777) | $ 16,535 | $ (5,947) | $ 104,190 |
Other comprehensive loss, before tax: | ||||
Foreign currency translation adjustments | (28,767) | 2,945 | (27,356) | (1,611) |
Post-employment benefits: | ||||
Reclassification of net actuarial gains and prior service cost into other income, net and included in net periodic pension costs | (17) | (77) | (50) | (230) |
Cumulative effect of adopting accounting standard | 0 | 0 | 0 | (50) |
Unrealized loss on cash flow hedge | (13,891) | (6,941) | (14,249) | (6,941) |
Reclassification of interest from cash flow hedge into interest expense | 1,017 | 85 | 2,350 | 85 |
Total other comprehensive loss, before tax | (41,658) | (3,988) | (39,305) | (8,747) |
Income tax benefit related to items of other comprehensive loss | (3,711) | (1,626) | (3,684) | (1,976) |
Other comprehensive loss, net of tax | (37,947) | (2,362) | (35,621) | (6,771) |
Comprehensive (loss) income, net of tax | $ (120,724) | $ 14,173 | $ (41,568) | $ 97,419 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Current assets | ||
Cash and cash equivalents | $ 165,464 | $ 108,219 |
Accounts receivable, net | 524,081 | 540,902 |
Inventories | 421,201 | 447,555 |
Other current assets | 51,773 | 51,462 |
Total current assets | 1,162,519 | 1,148,138 |
Property, less accumulated depreciation of $187,292 and $181,066 | 123,770 | 124,303 |
Operating lease assets, net | 86,617 | 0 |
Identifiable intangibles, net | 352,864 | 368,866 |
Goodwill | 539,495 | 661,991 |
Other assets | 24,264 | 28,399 |
TOTAL ASSETS | 2,289,529 | 2,331,697 |
Current liabilities | ||
Accounts payable | 214,253 | 237,289 |
Current portion of long-term debt | 78,642 | 49,036 |
Compensation and related benefits | 69,051 | 67,978 |
Other current liabilities | 85,915 | 69,491 |
Total current liabilities | 447,861 | 423,794 |
Long-term debt | 864,758 | 908,850 |
Other liabilities | 146,350 | 102,019 |
TOTAL LIABILITIES | 1,458,969 | 1,434,663 |
Shareholders’ Equity | ||
Preferred stock—no par value; 2,500 shares authorized; none issued or outstanding | 0 | 0 |
Common stock—no par value; 80,000 shares authorized; 54,213 shares issued | 10,000 | 10,000 |
Additional paid-in capital | 174,830 | 172,931 |
Retained earnings | 1,195,411 | 1,229,148 |
Treasury shares—at cost (15,506 and 15,616 shares, respectively) | (414,174) | (415,159) |
Accumulated other comprehensive loss | (135,507) | (99,886) |
TOTAL SHAREHOLDERS’ EQUITY | 830,560 | 897,034 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 2,289,529 | $ 2,331,697 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Noncurrent Assets: | ||
Property, less accumulated depreciation | $ 187,292 | $ 181,066 |
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 | 38,707,000 | 38,597,000 |
Treasury shares | 15,506,000 | 15,616,000 |
Condensed Statements of Conso_3
Condensed Statements of Consolidated Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash Flows from Operating Activities | ||
Net (loss) income | $ (5,947) | $ 104,190 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property | 15,997 | 15,045 |
Amortization of intangibles | 31,671 | 31,823 |
Goodwill & intangible impairment | 131,000 | |
Goodwill & intangible impairment | 31,594 | |
Unrealized foreign exchange transactions (gain) loss | 2,635 | (40) |
Amortization of stock options and appreciation rights | 2,217 | 1,831 |
Gain on sale of property | 1,274 | 258 |
Other share-based compensation expense | 2,046 | 3,716 |
Changes in operating assets and liabilities, net of acquisitions | 1,406 | (106,367) |
Other, net | (4,857) | (4,448) |
Net Cash provided by Operating Activities | 169,624 | 77,166 |
Cash Flows from Investing Activities | ||
Acquisition of businesses, net of cash acquired | (37,237) | (37,526) |
Property purchases | (16,223) | (11,711) |
Proceeds from property sales | 1,809 | 649 |
Other | 0 | (391) |
Net Cash used in Investing Activities | (51,651) | (48,197) |
Cash Flows from Financing Activities | ||
Net repayments under revolving credit facility | 0 | (500) |
Long-term debt borrowings | 25,000 | 175,000 |
Long-term debt repayments | 39,803 | 156,803 |
Payment of debt issuance costs | (22) | (775) |
Purchases of treasury shares | 0 | 11,158 |
Dividends paid | (36,420) | (35,254) |
Acquisition holdback payments | 2,440 | 2,609 |
Exercise of stock options and appreciation rights | 330 | 0 |
Taxes paid for shares withheld for equity awards | (2,604) | (3,371) |
Net Cash used in Financing Activities | (55,959) | (35,470) |
Effect of Exchange Rate Changes on Cash | (4,769) | (282) |
Increase (decrease) in Cash and Cash Equivalents | 57,245 | (6,783) |
Cash and Cash Equivalents at Beginning of Period | 108,219 | 54,150 |
Cash and Cash Equivalents at End of Period | $ 165,464 | $ 47,367 |
Condensed Statements of Shareho
Condensed Statements of Shareholder's Equity Condensed Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Common Stock [Member]Stock Options and Stock Appreciation Rights [ Member] | Common Stock [Member]Performance Shares [Member] | Common Stock [Member]Restricted Stock Units (RSUs) [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member]Stock Options and Stock Appreciation Rights [ Member] | Additional Paid-in Capital [Member]Performance Shares [Member] | Additional Paid-in Capital [Member]Restricted Stock Units (RSUs) [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Treasury Stock [Member]Stock Options and Stock Appreciation Rights [ Member] | Treasury Stock [Member]Performance Shares [Member] | Treasury Stock [Member]Restricted Stock Units (RSUs) [Member] | Total Accumulated Other Comprehensive Income (Loss) [Member] | Parent [Member] | Parent [Member]Stock Options and Stock Appreciation Rights [ Member] | Parent [Member]Performance Shares [Member] | Parent [Member]Restricted Stock Units (RSUs) [Member] |
Beginning balance, shares at Jun. 30, 2018 | 38,703 | ||||||||||||||||||
Beginning balance at Jun. 30, 2018 | $ 10,000 | $ 169,383 | $ 1,129,678 | $ (403,875) | $ (90,223) | $ 814,963 | |||||||||||||
Net income | $ 48,938 | 48,938 | |||||||||||||||||
Other comprehensive (loss) income | 5,347 | 5,347 | |||||||||||||||||
Cumulative effect of adopting accounting standards | Adjustments for New Accounting Pronouncement [Member] | 3,056 | 3,056 | |||||||||||||||||
Cash dividends | (13) | (13) | |||||||||||||||||
Exercise of stock appreciation rights and options, shares | 17 | ||||||||||||||||||
Performance share awards, shares | 18 | ||||||||||||||||||
Restricted stock units, shares | 16 | ||||||||||||||||||
Additional Paid in Capital, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units | $ (855) | $ (844) | $ (760) | ||||||||||||||||
Exercise of stock appreciation rights and options | $ (210) | ||||||||||||||||||
Performance share awards | $ (301) | ||||||||||||||||||
Restricted stock units | $ (198) | ||||||||||||||||||
Total Shareholders' Equity, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units | $ (1,065) | $ (1,145) | $ (958) | ||||||||||||||||
Compensation expense | 1,043 | 651 | 1,043 | 651 | |||||||||||||||
Other | 24 | (35) | (11) | ||||||||||||||||
Ending balance, shares at Sep. 30, 2018 | 38,754 | ||||||||||||||||||
Ending balance at Sep. 30, 2018 | $ 10,000 | 168,618 | 1,181,683 | (404,619) | (84,876) | 870,806 | |||||||||||||
Beginning balance, shares at Jun. 30, 2018 | 38,703 | ||||||||||||||||||
Beginning balance at Jun. 30, 2018 | $ 10,000 | 169,383 | 1,129,678 | (403,875) | (90,223) | 814,963 | |||||||||||||
Net income | 104,190 | ||||||||||||||||||
Other comprehensive (loss) income | (6,771) | (6,771) | |||||||||||||||||
Ending balance, shares at Mar. 31, 2019 | 38,593 | ||||||||||||||||||
Ending balance at Mar. 31, 2019 | $ 10,000 | 171,734 | 1,213,314 | (415,206) | (96,994) | 882,848 | |||||||||||||
Beginning balance, shares at Sep. 30, 2018 | 38,754 | ||||||||||||||||||
Beginning balance at Sep. 30, 2018 | $ 10,000 | 168,618 | 1,181,683 | (404,619) | (84,876) | 870,806 | |||||||||||||
Net income | 38,717 | 38,717 | |||||||||||||||||
Other comprehensive (loss) income | (9,756) | (9,756) | |||||||||||||||||
Cash dividends | (11,651) | (11,651) | |||||||||||||||||
Restricted stock units, shares | 3 | ||||||||||||||||||
Additional Paid in Capital, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units | (7) | (140) | |||||||||||||||||
Exercise of stock appreciation rights and options | (1) | ||||||||||||||||||
Restricted stock units | 31 | ||||||||||||||||||
Total Shareholders' Equity, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units | (6) | (109) | |||||||||||||||||
Compensation expense | 1,308 | 606 | 1,308 | 606 | |||||||||||||||
Other | (1) | 1 | |||||||||||||||||
Ending balance, shares at Dec. 31, 2018 | 38,757 | ||||||||||||||||||
Ending balance at Dec. 31, 2018 | $ 10,000 | 170,385 | 1,208,748 | (404,586) | (94,632) | 889,915 | |||||||||||||
Net income | 16,535 | 16,535 | |||||||||||||||||
Other comprehensive (loss) income | $ (2,362) | (2,362) | (2,362) | ||||||||||||||||
Cash dividends | (11,979) | (11,979) | |||||||||||||||||
Treasury Stock, Shares, Acquired | (192) | ||||||||||||||||||
Treasury Stock, Value, Acquired, Cost Method | (11,158) | (11,158) | |||||||||||||||||
Exercise of stock appreciation rights and options, shares | 13 | ||||||||||||||||||
Additional Paid in Capital, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units | (197) | ||||||||||||||||||
Exercise of stock appreciation rights and options | (149) | ||||||||||||||||||
Total Shareholders' Equity, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units | (48) | ||||||||||||||||||
Compensation expense | 1,365 | 574 | 1,365 | 574 | |||||||||||||||
Stockholders' Equity, Other Shares | 15 | ||||||||||||||||||
Other | (393) | 10 | 389 | 6 | |||||||||||||||
Ending balance, shares at Mar. 31, 2019 | 38,593 | ||||||||||||||||||
Ending balance at Mar. 31, 2019 | $ 10,000 | 171,734 | 1,213,314 | (415,206) | (96,994) | 882,848 | |||||||||||||
Beginning balance, shares at Jun. 30, 2019 | 38,597 | 38,597 | |||||||||||||||||
Beginning balance at Jun. 30, 2019 | $ 897,034 | $ 10,000 | 172,931 | 1,229,148 | (415,159) | (99,886) | 897,034 | ||||||||||||
Net income | $ 38,799 | 38,799 | |||||||||||||||||
Other comprehensive (loss) income | (5,247) | (5,247) | |||||||||||||||||
Cumulative effect of adopting accounting standards | Adjustments for New Accounting Pronouncement [Member] | (3,275) | (3,275) | |||||||||||||||||
Cash dividends | (20) | (20) | |||||||||||||||||
Exercise of stock appreciation rights and options, shares | 5 | ||||||||||||||||||
Performance share awards, shares | 36 | ||||||||||||||||||
Restricted stock units, shares | 16 | ||||||||||||||||||
Additional Paid in Capital, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units | (177) | $ (1,540) | $ (631) | ||||||||||||||||
Exercise of stock appreciation rights and options | (61) | ||||||||||||||||||
Performance share awards | $ (362) | ||||||||||||||||||
Restricted stock units | $ 200 | ||||||||||||||||||
Total Shareholders' Equity, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units | (116) | $ (1,178) | $ (431) | ||||||||||||||||
Compensation expense | 919 | 773 | 919 | 773 | |||||||||||||||
Stockholders' Equity, Other Shares | 2 | ||||||||||||||||||
Other | (52) | (4) | 23 | (33) | |||||||||||||||
Ending balance, shares at Sep. 30, 2019 | 38,656 | ||||||||||||||||||
Ending balance at Sep. 30, 2019 | $ 10,000 | 172,223 | 1,264,648 | (414,513) | (105,133) | 927,225 | |||||||||||||
Beginning balance, shares at Jun. 30, 2019 | 38,597 | 38,597 | |||||||||||||||||
Beginning balance at Jun. 30, 2019 | $ 897,034 | $ 10,000 | 172,931 | 1,229,148 | (415,159) | (99,886) | 897,034 | ||||||||||||
Net income | (5,947) | ||||||||||||||||||
Other comprehensive (loss) income | $ (35,621) | (35,621) | |||||||||||||||||
Ending balance, shares at Mar. 31, 2020 | 38,707 | 38,707 | |||||||||||||||||
Ending balance at Mar. 31, 2020 | $ 830,560 | $ 10,000 | 174,830 | 1,195,411 | (414,174) | (135,507) | 830,560 | ||||||||||||
Beginning balance, shares at Sep. 30, 2019 | 38,656 | ||||||||||||||||||
Beginning balance at Sep. 30, 2019 | $ 10,000 | 172,223 | 1,264,648 | (414,513) | (105,133) | 927,225 | |||||||||||||
Net income | 38,031 | 38,031 | |||||||||||||||||
Other comprehensive (loss) income | 7,573 | 7,573 | |||||||||||||||||
Cash dividends | (12,017) | (12,017) | |||||||||||||||||
Exercise of stock appreciation rights and options, shares | 22 | ||||||||||||||||||
Additional Paid in Capital, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units | (185) | ||||||||||||||||||
Exercise of stock appreciation rights and options | (47) | ||||||||||||||||||
Total Shareholders' Equity, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units | (232) | ||||||||||||||||||
Compensation expense | 918 | 721 | 918 | 721 | |||||||||||||||
Other | 23 | (1) | 22 | ||||||||||||||||
Ending balance, shares at Dec. 31, 2019 | 38,678 | ||||||||||||||||||
Ending balance at Dec. 31, 2019 | $ 10,000 | 173,677 | 1,290,685 | (414,561) | (97,560) | 962,241 | |||||||||||||
Net income | (82,777) | (82,777) | |||||||||||||||||
Other comprehensive (loss) income | $ (37,947) | (37,947) | (37,947) | ||||||||||||||||
Cash dividends | (12,423) | (12,423) | |||||||||||||||||
Exercise of stock appreciation rights and options, shares | 14 | ||||||||||||||||||
Additional Paid in Capital, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units | (378) | ||||||||||||||||||
Exercise of stock appreciation rights and options | $ (16) | ||||||||||||||||||
Total Shareholders' Equity, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units | (394) | ||||||||||||||||||
Compensation expense | 209 | $ 723 | 209 | $ 723 | |||||||||||||||
Stockholders' Equity, Other Shares | 15 | ||||||||||||||||||
Other | 599 | (74) | 403 | 928 | |||||||||||||||
Ending balance, shares at Mar. 31, 2020 | 38,707 | 38,707 | |||||||||||||||||
Ending balance at Mar. 31, 2020 | $ 830,560 | $ 10,000 | $ 174,830 | $ 1,195,411 | $ (414,174) | $ (135,507) | $ 830,560 |
Condensed Statements of Share_2
Condensed Statements of Shareholder's Equity Condensed Statements of Shareholders' Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | |||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | |
Cash Dividends per Common Share | $ 0.32 | $ 0.31 | $ 0.31 | $ 0.31 | $ 0.30 | $ 0.30 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the financial position of Applied Industrial Technologies, Inc. (the “Company”, or “Applied”) as of March 31, 2020 , and the results of its operations and its cash flows for the nine month periods ended March 31, 2020 and 2019 , have been included. The condensed consolidated balance sheet as of June 30, 2019 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, 2019 . Operating results for the nine month period ended March 31, 2020 are not necessarily indicative of the results that may be expected for the remainder of the fiscal year ending June 30, 2020 . Inventory The Company uses the 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 Adopted Accounting Guidance Reference Rate Reform In March 2020, the FASB issued its final standard on the facilitation of the effects of reference rate reform on financial reporting. This standard, issued as ASU 2020-04, provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. This update is effective as of March 12, 2020 through December 31, 2022. The Company adopted the new guidance as it became effective in third quarter of fiscal 2020. The adoption of this guidance did not have a material impact on the Company's financial statements or related disclosures. Leases 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. This update is effective for annual financial statement periods beginning after December 15, 2018, with earlier application permitted. In July 2018, the FASB issued ASU 2018-10 which clarifies the guidance in ASU 2016-02 and ASU 2018-11 which provides entities with an additional transition method option for adopting the new standard. In December 2018 and January 2019, the FASB issued ASU 2018-20 and ASU 2019-01, respectively, which further clarify the guidance. The Company adopted the new guidance effective July 1, 2019 using the optional transition method, which required application of the new guidance to only those leases that existed at the date of adoption. The Company elected the “package of practical expedients,” which permitted the Company to not reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. Adoption of the new standard resulted in the recognition of right-of-use (ROU) assets and lease liabilities of $83,533 and $89,778 , respectively, on July 1, 2019. The difference between the ROU assets and lease liabilities related primarily to the impairment of certain leases in Canada and the United States. In addition, the adoption resulted in an adjustment to opening retained earnings of approximately $3,275 , net of tax, on July 1, 2019 primarily due to the impairment of the leases. The standard did not have a material impact on the Company’s condensed statements of consolidated income or cash flows. Cash Flows 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 adopted the new guidance in the first quarter of fiscal 2020. The adoption of this guidance did not have a material impact on the Company's financial statements or related disclosures. Recently Issued Accounting Guidance 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. In November 2018, April 2019, May 2019, November 2019, and February 2020, the FASB issued ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-11 and ASU 2020-02, respectively, which clarify the guidance in ASU 2016-13. The Company has not yet determined the impact of these pronouncements on its financial statements and related disclosures. In December 2019, the FASB issued its final standard on simplifying the accounting for income taxes. This standard, issued as ASU 2019-12, makes a number of changes meant to add or clarify guidance on accounting for income taxes. This update is effective for annual and interim financial statement periods beginning after December 15, 2021, with early adoption permitted in any interim period for which financial statements have not yet been filed. The Company has not yet determined the impact of these pronouncements on its financial statements and related disclosures. |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition | 9 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | REVENUE RECOGNITION Disaggregation of Revenues The following tables present the Company's net sales by reportable segment and by geographic areas based on the location of the facility shipping the product for the three and nine months ended March 31, 2020 and 2019 . Other countries consist of Mexico, Australia, New Zealand, and Singapore. Three Months Ended March 31, 2020 2019 Service Center Based Distribution Fluid Power & Flow Control Total Service Center Based Distribution Fluid Power & Flow Control Total Geographic Areas: United States $ 473,069 $ 251,913 $ 724,982 $ 520,180 $ 251,922 $ 772,102 Canada 59,912 — 59,912 66,725 — 66,725 Other countries 41,387 4,516 45,903 43,533 3,083 46,616 Total $ 574,368 $ 256,429 $ 830,797 $ 630,438 $ 255,005 $ 885,443 Nine Months Ended March 31, 2020 2019 Service Center Based Distribution Fluid Power & Flow Control Total Service Center Based Distribution Fluid Power & Flow Control Total Geographic Areas: United States $ 1,433,133 $ 755,175 $ 2,188,308 $ 1,490,289 $ 756,433 $ 2,246,722 Canada 193,755 — 193,755 204,401 — 204,401 Other countries 126,428 12,085 138,513 129,095 9,778 138,873 Total $ 1,753,316 $ 767,260 $ 2,520,576 $ 1,823,785 $ 766,211 $ 2,589,996 The following tables present the Company’s percentage of revenue by reportable segment and major customer industry for the three and nine months ended March 31, 2020 and 2019 : Three Months Ended March 31, 2020 2019 Service Center Based Distribution Fluid Power & Flow Control Total Service Center Based Distribution Fluid Power & Flow Control Total General Industry 34.8 % 39.9 % 36.4 % 35.8 % 41.7 % 37.5 % Industrial Machinery 9.9 % 24.7 % 14.5 % 10.2 % 24.2 % 14.2 % Metals 11.1 % 6.5 % 9.7 % 12.0 % 8.6 % 11.0 % Food 12.0 % 3.1 % 9.3 % 10.5 % 2.5 % 8.2 % Forest Products 9.8 % 5.7 % 8.5 % 7.0 % 3.6 % 6.0 % Chem/Petrochem 3.3 % 12.8 % 6.2 % 2.8 % 12.8 % 5.7 % Oil & Gas 7.3 % 1.3 % 5.4 % 10.1 % 2.3 % 7.9 % Cement & Aggregate 7.2 % 1.3 % 5.4 % 6.9 % 1.0 % 5.2 % Transportation 4.6 % 4.7 % 4.6 % 4.7 % 3.3 % 4.3 % Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % Nine Months Ended March 31, 2020 2019 Service Center Based Distribution Fluid Power & Flow Control Total Service Center Based Distribution Fluid Power & Flow Control Total General Industry 34.6 % 41.6 % 36.7 % 35.9 % 44.0 % 38.2 % Industrial Machinery 9.7 % 23.7 % 13.9 % 9.7 % 22.0 % 13.3 % Metals 11.3 % 7.4 % 10.1 % 12.2 % 8.3 % 11.1 % Food 11.6 % 2.9 % 9.0 % 10.4 % 2.5 % 8.1 % Forest Products 9.0 % 3.9 % 7.4 % 7.6 % 3.0 % 6.3 % Chem/Petrochem 3.2 % 13.3 % 6.3 % 3.1 % 14.1 % 6.3 % Oil & Gas 8.7 % 1.7 % 6.6 % 10.0 % 2.2 % 7.7 % Cement & Aggregate 7.2 % 1.1 % 5.4 % 6.5 % 1.0 % 4.9 % Transportation 4.7 % 4.4 % 4.6 % 4.6 % 2.9 % 4.1 % Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % The following tables present the Company’s percentage of revenue by reportable segment and product line for the three and nine months ended March 31, 2020 and 2019 : Three Months Ended March 31, 2020 2019 Service Center Based Distribution Fluid Power & Flow Control Total Service Center Based Distribution Fluid Power & Flow Control Total Power Transmission 34.8 % 8.5 % 26.6 % 34.5 % 2.3 % 25.2 % Fluid Power 13.3 % 40.5 % 21.7 % 13.5 % 41.3 % 21.5 % General Maintenance; Hose Products 24.0 % 12.2 % 20.4 % 24.7 % 4.7 % 18.9 % Bearings, Linear & Seals 27.9 % 0.3 % 19.4 % 27.3 % 0.4 % 19.6 % Specialty Flow Control — % 38.5 % 11.9 % — % 51.3 % 14.8 % Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % Nine Months Ended March 31, 2020 2019 Service Center Based Distribution Fluid Power & Flow Control Total Service Center Based Distribution Fluid Power & Flow Control Total Power Transmission 34.7 % 9.9 % 27.2 % 33.8 % 1.7 % 24.3 % Fluid Power 13.3 % 38.4 % 20.9 % 13.7 % 39.0 % 21.2 % General Maintenance; Hose Products 25.5 % 11.1 % 21.1 % 26.0 % 5.0 % 19.7 % Bearings, Linear & Seals 26.5 % 0.3 % 18.6 % 26.5 % 0.3 % 18.8 % Specialty Flow Control — % 40.3 % 12.2 % — % 54.0 % 16.0 % Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % Contract Assets The Company’s contract assets consist of un-billed amounts resulting from contracts for which revenue is recognized over time using the cost-to-cost method, and for which revenue recognized exceeds the amount billed to the customer. Activity related to contract assets, which are included in other current assets on the condensed consolidated balance sheet, is as follows: March 31, 2020 June 30, 2019 $ Change % Change Contract assets $ 7,690 $ 8,920 $ (1,230 ) (13.8 )% The difference between the opening and closing balances of the Company's contract assets primarily results from the timing difference between the Company's performance and when the customer is billed. |
Business Combinations
Business Combinations | 9 Months Ended |
Mar. 31, 2020 | |
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 2020 Acquisition On August 21, 2019, the Company acquired 100% of the outstanding shares of Olympus Controls, a Portland, Oregon automation solutions provider - including design, assembly, integration, and distribution - of motion control, machine vision, and robotic technologies. Olympus Controls is included in the Fluid Power & Flow Control segment. The purchase price for the acquisition was $36,642 , net tangible assets acquired were $9,540 , and intangible assets including goodwill was $27,102 based upon estimated fair values at the acquisition date. 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 2019 Acquisitions On March 4, 2019, the Company acquired substantially all of the net assets of MilRoc Distribution (MilRoc) and Woodward Steel (Woodward). MilRoc is an Oklahoma based distributor of oilfield specific products, namely pumps and valves, as well as equipment repair services and industrial parts to the oil & gas industry. Woodward is an Oklahoma based steel supplier to the oil & gas and agriculture industries. MilRoc and Woodward are both included in the Service Center Based Distribution segment. The purchase price for the acquisition was $35,000 , net tangible assets acquired were $17,788 , and intangible assets including goodwill was $17,212 based upon estimated fair values at the acquisition date. The purchase price includes acquisition holdback payments of $4,375 , of which $1,666 was paid during the nine months ended March 31, 2020 . The remaining balance of $2,709 is included in other current liabilities and other liabilities on the condensed consolidated balance sheet as of March 31, 2020 , and will be paid on the second and third anniversaries of the acquisition date with interest at a fixed rate of 2.0% 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. On November 2, 2018, the Company acquired substantially all of the net assets of Fluid Power Sales, Inc. (FPS), a Baldwinsville, New York based manufacturer and distributor of fluid power components, specializing in the engineering and fabrication of manifolds and power units. FPS is included in the Fluid Power & Flow Control segment. The purchase price for the acquisition was $8,066 , net tangible assets acquired were $4,151 , and goodwill was $3,915 based upon estimated fair values at the acquisition date. The purchase price includes $1,200 of acquisition holdback payments, of which $600 was paid during the nine months ended March 31, 2020 . The remaining balance of $600 is included in other current liabilities on the condensed consolidated balance sheet as of March 31, 2020 , and will be paid on the second anniversary of the acquisition date 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. |
Goodwill and Intangibles
Goodwill and Intangibles | 9 Months Ended |
Mar. 31, 2020 | |
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 & Flow Control segment for the fiscal year ended June 30, 2019 and the nine month period ended March 31, 2020 are as follows: Service Center Based Distribution Fluid Power & Flow Control Total Balance at July 1, 2018 $ 203,084 $ 443,559 $ 646,643 Goodwill acquired during the period 9,943 4,798 14,741 Other, primarily currency translation 607 — 607 Balance at June 30, 2019 $ 213,634 $ 448,357 $ 661,991 Goodwill adjusted/acquired during the period (3,393 ) 14,667 11,274 Impairment — (131,000 ) (131,000 ) Other, primarily currency translation (2,770 ) — (2,770 ) Balance at March 31, 2020 $ 207,471 $ 332,024 $ 539,495 During the first quarter of fiscal 2020, the Company recorded an adjustment to the preliminary estimated fair value of intangible assets related to the MilRoc/Woodward acquisition. The fair values of the customer relationships, trade name, and non-compete intangible assets were increased by $1,524 , $1,809 , and $60 , respectively, with a corresponding total decrease to goodwill of $3,393 . The changes to the preliminary estimated fair values resulted in an increase to amortization expense of $303 during the nine months ended March 31, 2020 , which is recorded in selling, distribution, and administrative expense on the condensed statements of consolidated income. During the second quarter of fiscal 2020, the Company recorded an adjustment to the preliminary estimated fair value of intangible assets related to the Olympus Controls acquisition. The trade name and other intangible assets were increased by $4,260 and $980 , respectively, with a corresponding decrease to the customer relationship intangible asset of $5,504 and an increase to goodwill of $264 . The changes to the preliminary estimated fair values resulted in a decrease to amortization expense of $24 during the nine months ended March 31, 2020 , which is recorded in selling, distribution, and administrative expense on the condensed statements of consolidated income. The Company has eight ( 8 ) reporting units for which an annual goodwill impairment assessment was performed as of January 1, 2020. The Company concluded that seven ( 7 ) of the reporting units’ fair value exceeded their carrying amounts by at least 10% as of January 1, 2020. Specifically, the Canada reporting unit's fair value exceeded its carrying value by 12% , and the Mexico reporting unit's fair value exceeded its carrying value by 14% . The Canada and Mexico reporting units have goodwill balances of $26,328 and $4,945 , respectively, as of March 31, 2020 . The carrying value of the final reporting unit, which is comprised of the FCX Performance Inc. (FCX) operations, exceeded the fair value, resulting in goodwill impairment of $131,000 . The non-cash impairment charge is the result of the overall decline in the industrial economy, specifically slower demand in FCX's end markets. This has led to reduced spending by customers and reduced revenue expectations. The remaining goodwill for the FCX reporting unit as of March 31, 2020 is $309,012 . Because the carrying value of the FCX reporting unit approximated fair value of the reporting unit after the impairment was recorded, a future decline in the estimated cash flows could result in an additional impairment loss. A future decline in the estimated cash flows could result from a significant or extended decline in various end markets. 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, and requires management to make significant estimates and assumptions related to forecasts of future revenues, operating margins, and discount rates. The market approach utilizes an analysis of comparable publicly traded companies and requires management to make significant estimates and assumptions related to the forecasts of future revenues, earnings before interest, taxes, depreciation, and amortization (EBITDA) and multiples that are applied to management’s forecasted revenues and EBITDA estimates. The techniques used in the Company's impairment test have incorporated a number of assumptions that the Company believes to be reasonable and to reflect known market conditions at the measurement date. Assumptions in estimating future cash flows are subject to a degree of judgment. The Company makes all efforts to forecast future cash flows as accurately as possible with the information available at the measurement date. The Company evaluates the appropriateness of its assumptions and overall forecasts by comparing projected results of upcoming years with actual results of preceding years. Key Level 3 based assumptions relate to pricing trends, inventory costs, customer demand, and revenue growth. A number of benchmarks from independent industry and other economic publications were also used. Changes in future results, assumptions, and estimates after the measurement date may lead to an outcome where additional impairment charges would be required in future periods. Specifically, actual results may vary from the Company’s forecasts and such variations may be material and unfavorable, thereby triggering the need for future impairment tests where the conclusions may differ in reflection of prevailing market conditions. Further, continued adverse market conditions could result in the recognition of additional impairment if the Company determines that the fair values of its reporting units have fallen below their carrying values. Certain events or circumstances that could reasonably be expected to negatively affect the underlying key assumptions and ultimately impact the estimated fair value of the Company’s reporting units may include such items as: (i) a decrease in expected future cash flows, specifically, a decrease in sales volume driven by a prolonged weakness in customer demand or other pressures adversely affecting our long-term sales trends; (ii) inability to achieve the sales from our strategic growth initiatives. At March 31, 2020 and June 30, 2019 , accumulated goodwill impairment losses subsequent to fiscal year 2002 totaled $64,794 related to the Service Center Based Distribution segment. At March 31, 2020 and June 30, 2019 , accumulated goodwill impairment losses subsequent to fiscal year 2002 totaled $167,605 and $36,605 , respectively, related to the Fluid Power & Flow Control segment. The Company’s identifiable intangible assets resulting from business combinations are amortized over their estimated period of benefit and consist of the following: March 31, 2020 Amount Accumulated Amortization Net Book Value Finite-Lived Identifiable Intangibles: Customer relationships $ 425,187 $ 154,683 $ 270,504 Trade names 111,242 32,666 78,576 Vendor relationships 11,193 8,629 2,564 Other 2,066 846 1,220 Total Identifiable Intangibles $ 549,688 $ 196,824 $ 352,864 June 30, 2019 Amount Accumulated Amortization Net Book Value Finite-Lived Identifiable Intangibles: Customer relationships $ 422,367 $ 135,879 $ 286,488 Trade names 105,946 27,232 78,714 Vendor relationships 11,367 8,156 3,211 Other 2,702 2,249 453 Total Identifiable Intangibles $ 542,382 $ 173,516 $ 368,866 Amounts include the impact of foreign currency translation. Fully amortized amounts are written off. During the nine month period ended March 31, 2020 , the Company acquired identifiable intangible assets with a preliminary acquisition cost allocation and weighted-average life as follows: Acquisition Cost Allocation Weighted-Average Life Customer relationships $ 7,160 20.0 Trade names 4,260 15.0 Other 980 6.8 Total Intangibles Acquired $ 12,400 17.2 Due to a sustained decline in economic conditions in the upstream oil and gas industry in western Canada, management also assessed the long-lived intangible assets related to the Reliance asset group in Canada for impairment during the third quarter of fiscal 2019 . The Reliance asset group is located in western Canada and primarily serves customers in the upstream oil and gas industry. The asset group carrying value exceeded the sum of the undiscounted cash flows, indicating impairment. The fair value of the asset group was then determined using the Income approach, and the analysis resulted in the measurement of a full impairment loss of $31,594 , which was recorded in the three months ended March 31, 2019 . Estimated future amortization expense by fiscal year (based on the Company’s identifiable intangible assets as of March 31, 2020 ) for the next five years is as follows: $10,000 for the remainder of 2020 , $38,200 for 2021 , $36,100 for 2022 , $33,900 for 2023 , $29,700 for 2024 and $26,200 for 2025 . |
Debt Debt
Debt Debt | 9 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | DEBT Revolving Credit Facility & Term Loan In January 2018, the Company refinanced its existing credit facility and entered into a new five-year credit facility with a group of banks expiring in January 2023 . This agreement provides for a $780,000 unsecured term loan and a $250,000 unsecured revolving credit facility. Fees on this facility range from 0.10% to 0.20% 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 March 31, 2020 and June 30, 2019 , the Company had $599,000 and $613,625 , respectively, outstanding under the term loan. The interest rate on the term loan as of March 31, 2020 and June 30, 2019 was 2.75% and 4.19% , respectively. The Company had no amount outstanding under the revolver at March 31, 2020 or June 30, 2019 . Unused lines under this facility, net of outstanding letters of credit of $1,786 and $3,215 , respectively, to secure certain insurance obligations, totaled $248,214 and $246,785 at March 31, 2020 and June 30, 2019 , respectively, and were available to fund future acquisitions or other capital and operating requirements. Additionally, the Company had letters of credit outstanding with separate banks, not associated with the revolving credit agreement, in the amount of $3,788 and $2,698 as of March 31, 2020 and June 30, 2019 , respectively, in order to secure certain insurance obligations. Trade Receivable Securitization Facility In August 2018, the Company established a trade receivable securitization facility (the “AR Securitization Facility”) with a termination date of August 31, 2021 . The maximum availability under the AR Securitization Facility is $175,000 . Availability is further subject to changes in the credit ratings of our customers, customer concentration levels or certain characteristics of the accounts receivable being transferred and, therefore, at certain times, we may not be able to fully access the $175,000 of funding available under the AR Securitization Facility. The AR Securitization Facility effectively increases the Company’s borrowing capacity by collateralizing a portion of the amount of the Service Center Based Distribution reportable segment’s U.S. operations’ trade accounts receivable. The Company uses the proceeds from the AR Securitization Facility as an alternative to other forms of debt, effectively reducing borrowing costs. Borrowings under this facility carry variable interest rates tied to LIBOR and fees on the AR Securitization Facility are 0.90% per year. As of March 31, 2020 , and June 30, 2019 , the Company borrowed $175,000 under the AR Securitization Facility. The interest rate on the AR Securitization Facility as of March 31, 2020 and June 30, 2019 was 2.52% and 3.33% , respectively. Other Long-Term Borrowings At March 31, 2020 and June 30, 2019 , the Company had borrowings outstanding under its unsecured shelf facility agreement with Prudential Investment Management of $170,000 . Fees on this facility range from 0.25% to 1.25% per year based on the Company's leverage ratio at each quarter end. The "Series C" notes have a principal amount of $120,000 , 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% . A $25,000 principal payment was made on the "Series D" notes in October 2019, and the remaining principal balance of $25,000 is due in October 2023. On October 30, 2019, the Company amended its unsecured shelf facility agreement with Prudential Investment Management to authorize the issuance of “Series E” notes, which have a principal amount of $25,000 , carry a fixed interest rate of 3.08% , and are due October 30, 2024. In 2014, the Company assumed $2,359 of debt as a part of the headquarters facility acquisition. The 1.50% fixed interest rate note is held by the State of Ohio Development Services Agency, maturing in May 2024. At March 31, 2020 and June 30, 2019 , $1,026 and $1,204 was outstanding, respectively. Unamortized debt issue costs of $598 and $577 are included as a reduction of current portion of long-term debt on the condensed consolidated balance sheets as of March 31, 2020 and June 30, 2019 , respectively. Unamortized debt issue costs of $1,028 and $1,366 are included as a reduction of long-term debt on the condensed consolidated balance sheets as of March 31, 2020 and June 30, 2019 , respectively. |
Derivatives Derivatives
Derivatives Derivatives | 9 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | DERIVATIVES Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive loss and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive loss related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. In January 2019, the Company entered into an interest rate swap to mitigate variability in forecasted interest payments on $463,000 of the Company’s U.S. dollar-denominated unsecured variable rate debt. The interest rate swap effectively converts a portion of the floating rate interest payment into a fixed rate interest payment. The Company designated the interest rate swap as a pay-fixed, receive-floating interest rate swap instrument and is accounting for this derivative as a cash flow hedge. The interest rate swap converts $431,000 of variable rate debt to a rate of 4.36% as of March 31, 2020 , and as of June 30, 2019 converted $463,000 of variable rate debt to a rate of 4.36% . The fair value (Level 2 in the fair value hierarchy) of the interest rate cash flow hedge was $26,102 and $14,202 as of March 31, 2020 and June 30, 2019 , respectively, which is included in other current liabilities and other liabilities in the condensed consolidated balance sheet, respectively. Realized losses related to the interest rate cash flow hedge were not material during the nine months ended March 31, 2020 . |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Marketable securities measured at fair value at March 31, 2020 and June 30, 2019 totaled $10,345 and $11,246 , respectively. The majority of 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 were determined using quoted market prices (Level 1 in the fair value hierarchy). As of March 31, 2020 and June 30, 2019 , the carrying values of the Company's fixed interest rate debt outstanding under its unsecured shelf facility agreement with Prudential Investment Management approximated fair value (Level 2 in the fair value hierarchy). The revolving credit facility, the term loan and the AR Securitization Facility contain variable interest rates and their carrying values approximate fair value (Level 2 in the fair value hierarchy). |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS' EQUITY Accumulated Other Comprehensive Loss Changes in the accumulated other comprehensive loss are comprised of the following amounts, shown net of taxes: Three Months Ended March 31, 2020 Foreign currency translation adjustment Post-employment benefits Cash flow hedge Total Accumulated other comprehensive (loss) income Balance at January 1, 2020 $ (84,687 ) $ (2,877 ) $ (9,996 ) $ (97,560 ) Other comprehensive income (28,257 ) — (10,440 ) (38,697 ) Amounts reclassified from accumulated other comprehensive (loss) income — (13 ) 763 750 Net current-period other comprehensive income (loss) (28,257 ) (13 ) (9,677 ) (37,947 ) Balance at March 31, 2020 $ (112,944 ) $ (2,890 ) $ (19,673 ) $ (135,507 ) Three Months Ended March 31, 2019 Foreign currency translation adjustment Post-employment benefits Cash flow hedge Total Accumulated other comprehensive (loss) income Balance at January 1, 2019 $ (92,220 ) $ (2,412 ) $ — $ (94,632 ) Other comprehensive income 2,767 — (5,136 ) (2,369 ) Amounts reclassified from accumulated other comprehensive (loss) income — (56 ) 63 7 Net current-period other comprehensive loss 2,767 (56 ) (5,073 ) (2,362 ) Balance at March 31, 2019 $ (89,453 ) $ (2,468 ) $ (5,073 ) $ (96,994 ) Nine Months Ended March 31, 2020 Foreign currency translation adjustment Post-employment benefits Cash flow hedge Total Accumulated other comprehensive (loss) income Balance at July 1, 2019 $ (86,330 ) $ (2,852 ) $ (10,704 ) $ (99,886 ) Other comprehensive income (loss) (26,614 ) — (10,740 ) (37,354 ) Amounts reclassified from accumulated other comprehensive (loss) income — (38 ) 1,771 1,733 Net current-period other comprehensive income (loss) (26,614 ) (38 ) (8,969 ) (35,621 ) Balance at March 31, 2020 $ (112,944 ) $ (2,890 ) $ (19,673 ) $ (135,507 ) Nine Months Ended March 31, 2019 Foreign currency translation adjustment Unrealized gain (loss) on securities available for sale Post-employment benefits Cash flow hedge Total Accumulated other comprehensive (loss) income Balance at July 1, 2018 $ (87,974 ) $ 50 $ (2,299 ) $ — $ (90,223 ) Other comprehensive loss (1,479 ) — — (5,136 ) (6,615 ) Amounts reclassified from accumulated other comprehensive (loss) income — — (169 ) 63 (106 ) Cumulative effect of adopting accounting standard — (50 ) — — (50 ) Net current-period other comprehensive loss (1,479 ) (50 ) (169 ) (5,073 ) (6,771 ) Balance at March 31, 2019 $ (89,453 ) $ — $ (2,468 ) $ (5,073 ) $ (96,994 ) Other Comprehensive Loss Details of other comprehensive loss are as follows: Three Months Ended March 31, 2020 2019 Pre-Tax Amount Tax (Benefit) Expense Net Amount Pre-Tax Amount Tax Expense (Benefit) Net Amount Foreign currency translation adjustments $ (28,767 ) $ (510 ) $ (28,257 ) $ 2,945 $ 178 $ 2,767 Post-employment benefits: Reclassification of net actuarial gains and prior service cost into other income, net and included in net periodic pension costs (17 ) (4 ) (13 ) (77 ) (21 ) (56 ) Unrealized loss on cash flow hedge (13,891 ) (3,451 ) (10,440 ) (6,941 ) (1,805 ) (5,136 ) Reclassification of interest from cash flow hedge into interest expense 1,017 254 763 85 22 63 Other comprehensive loss $ (41,658 ) $ (3,711 ) $ (37,947 ) $ (3,988 ) $ (1,626 ) $ (2,362 ) Nine Months Ended March 31, 2020 2019 Pre-Tax Amount Tax (Benefit) Expense Net Amount Pre-Tax Amount Tax (Benefit) Expense Net Amount Foreign currency translation adjustments $ (27,356 ) $ (742 ) $ (26,614 ) $ (1,611 ) $ (132 ) $ (1,479 ) Post-employment benefits: Reclassification of net actuarial gains and prior service cost into other income, net and included in net periodic pension costs (50 ) (12 ) (38 ) (230 ) (61 ) (169 ) Cumulative effect of adopting accounting standard — — — (50 ) — (50 ) Unrealized loss on cash flow hedge (14,249 ) (3,509 ) (10,740 ) (6,941 ) (1,805 ) (5,136 ) Reclassification of interest from cash flow hedge into interest expense 2,350 579 1,771 85 22 63 Other comprehensive loss $ (39,305 ) $ (3,684 ) $ (35,621 ) $ (8,747 ) $ (1,976 ) $ (6,771 ) Anti-dilutive Common Stock Equivalents In the three and nine month periods ended March 31, 2019 , stock options and stock appreciation rights related to 467 and 255 |
Leases Leases
Leases Leases | 9 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | LEASES The Company leases facilities for certain service centers, warehouses, distribution centers and office space. The Company also leases office equipment and vehicles. All leases are classified as operating. The Company’s leases expire at various dates through 2031, with terms ranging from 1 year to 15 years. Many of the Company’s real estate leases contain renewal provisions to extend lease terms up to 5 years. The exercise of renewal options is solely at the Company’s discretion. The Company’s lease agreements do not contain material variable lease payments, residual value guarantees or restrictive covenants. The Company does not recognize right-of-use assets or lease liabilities for short-term leases with initial terms of 12 months or less. Leased vehicles comprise the majority of the Company’s short-term leases. All other leases are recorded on the balance sheet with right-of-use assets representing the right to use the underlying asset for the lease term and lease liabilities representing lease payment obligations. The Company’s leases do not provide implicit rates; therefore the Company uses its incremental borrowing rate as the discount rate for measuring lease liabilities. Non-lease components are accounted for separately from lease components. The Company’s operating lease expense is recognized on a straight-line basis over the lease term and is recorded in selling, distribution and administrative expense on the condensed statements of consolidated income. Operating lease costs and short-term lease costs were $8,350 and $2,703 for the three months ended March 31, 2020 , respectively, and were $25,078 and $8,043 for the nine months ended March 31, 2020 , respectively. Variable lease costs and sublease income were not material. Information related to operating leases is as follows: March 31, 2020 Operating lease assets, net $ 86,617 Operating lease liabilities Other current liabilities $ 28,710 Other liabilities 62,850 Total operating lease liabilities $ 91,560 March 31, 2020 Weighted average remaining lease term (years) 4.6 Weighted average incremental borrowing rate 3.40 % Three Months Ended March 31, 2020 Nine Months Ended March 31, 2020 Cash paid for operating leases $ 8,902 $ 26,186 Right of use assets obtained in exchange for new operating lease liabilities $ 9,464 $ 27,909 The table below summarizes the aggregate maturities of liabilities pertaining to operating leases with terms greater than one year for each of the next five years: Fiscal Year Maturity of Operating Lease Liabilities 2020 $ 8,310 2021 28,005 2022 21,187 2023 14,899 2024 11,351 Thereafter 14,850 Total lease payments 98,602 Less interest (7,042 ) Present value of lease liabilities $ 91,560 The table below summarizes the future minimum annual rental commitments for operating leases accounted for in accordance with Accounting Standards Codification Topic 840, Leases, as of June 30, 2019 : Fiscal Year Operating Leases 2020 $ 33,707 2021 23,407 2022 16,420 2023 10,653 2024 7,838 Thereafter 12,135 Total minimum lease payments $ 104,160 |
Segment Information
Segment Information | 9 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The accounting policies of the Company’s reportable segments are generally the same as those used to prepare the condensed consolidated financial statements. LIFO expense of $1,950 and $3,650 in the three months ended March 31, 2020 and 2019 , respectively, and $4,237 and $7,997 in the nine months ended March 31, 2020 and 2019 , respectively, is recorded in cost of sales in the condensed statements of income, and is included in operating income for the Service Center Based Distribution segment. The Company allocates LIFO expense between the segments in the fourth quarter of its fiscal year. Intercompany sales, primarily from the Fluid Power & Flow Control segment to the Service Center Based Distribution segment, of $7,685 and $7,328 , in the three months ended March 31, 2020 and 2019 , respectively, and $22,434 and $21,013 in the nine months ended March 31, 2020 and 2019 , respectively, have been eliminated in the Segment Financial Information tables below. Three Months Ended Service Center Based Distribution Fluid Power & Flow Control Total March 31, 2020 Net sales $ 574,368 $ 256,429 $ 830,797 Operating income for reportable segments 53,014 26,449 79,463 Depreciation and amortization of property 4,373 1,007 5,380 Capital expenditures 3,588 670 4,258 March 31, 2019 Net sales $ 630,438 $ 255,005 $ 885,443 Operating income for reportable segments 64,763 25,837 90,600 Depreciation and amortization of property 3,969 1,057 5,026 Capital expenditures 4,024 591 4,615 Nine Months Ended Service Center Based Distribution Fluid Power & Flow Control Total March 31, 2020 Net sales $ 1,753,316 $ 767,260 $ 2,520,576 Operating income for reportable segments 167,279 82,755 250,034 Assets used in business 1,310,754 978,775 2,289,529 Depreciation and amortization of property 12,831 3,166 15,997 Capital expenditures 14,022 2,201 16,223 March 31, 2019 Net sales $ 1,823,785 $ 766,211 $ 2,589,996 Operating income for reportable segments 185,889 85,960 271,849 Assets used in business 1,252,161 1,070,649 2,322,810 Depreciation and amortization of property 11,791 3,254 15,045 Capital expenditures 9,724 1,987 11,711 A reconciliation of operating income for reportable segments to the condensed consolidated income before income taxes is as follows: Three Months Ended Nine Months Ended March 31, March 31, 2020 2019 2020 2019 Operating income for reportable segments $ 79,463 $ 90,600 $ 250,034 $ 271,849 Adjustment for: Intangible amortization—Service Center Based Distribution 3,811 2,794 9,697 10,785 Intangible amortization—Fluid Power & Flow Control 7,291 7,117 21,974 21,038 Intangible impairment—Service Center Based Distribution — 31,594 — 31,594 Goodwill Impairment—Fluid Power & Flow Control 131,000 — 131,000 — Corporate and other expense, net 15,311 14,586 45,402 46,619 Total operating (loss) income (77,950 ) 34,509 41,961 161,813 Interest expense, net 8,805 9,947 28,447 30,001 Other income, net (1,428 ) (1,256 ) (1,643 ) (549 ) (Loss) income before income taxes $ (85,327 ) $ 25,818 $ 15,157 $ 132,361 The change in corporate and other expense, net is due to changes in corporate expenses, as well as in the amounts and levels of certain expenses being allocated to the segments. The expenses being allocated include corporate charges for working capital, logistics support and other items. |
Other Income, Net
Other Income, Net | 9 Months Ended |
Mar. 31, 2020 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME, NET | OTHER INCOME, NET Other income, net consists of the following: Three Months Ended Nine Months Ended March 31, March 31, 2020 2019 2020 2019 Unrealized loss (gain) on assets held in rabbi trust for a non-qualified deferred compensation plan $ 2,182 $ (1,075 ) $ 1,361 $ (238 ) Foreign currency transactions (gain) loss (3,501 ) 63 (3,167 ) 97 Net other periodic post-employment benefits (30 ) (22 ) (90 ) (66 ) Life insurance (income) expense, net (194 ) (187 ) 165 (380 ) Other, net 115 (35 ) 88 38 Total other income, net $ (1,428 ) $ (1,256 ) $ (1,643 ) $ (549 ) |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Inventory, Policy [Policy Text Block] | Inventory The Company uses the 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. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Guidance Reference Rate Reform In March 2020, the FASB issued its final standard on the facilitation of the effects of reference rate reform on financial reporting. This standard, issued as ASU 2020-04, provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. This update is effective as of March 12, 2020 through December 31, 2022. The Company adopted the new guidance as it became effective in third quarter of fiscal 2020. The adoption of this guidance did not have a material impact on the Company's financial statements or related disclosures. Leases 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. This update is effective for annual financial statement periods beginning after December 15, 2018, with earlier application permitted. In July 2018, the FASB issued ASU 2018-10 which clarifies the guidance in ASU 2016-02 and ASU 2018-11 which provides entities with an additional transition method option for adopting the new standard. In December 2018 and January 2019, the FASB issued ASU 2018-20 and ASU 2019-01, respectively, which further clarify the guidance. The Company adopted the new guidance effective July 1, 2019 using the optional transition method, which required application of the new guidance to only those leases that existed at the date of adoption. The Company elected the “package of practical expedients,” which permitted the Company to not reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. Adoption of the new standard resulted in the recognition of right-of-use (ROU) assets and lease liabilities of $83,533 and $89,778 , respectively, on July 1, 2019. The difference between the ROU assets and lease liabilities related primarily to the impairment of certain leases in Canada and the United States. In addition, the adoption resulted in an adjustment to opening retained earnings of approximately $3,275 , net of tax, on July 1, 2019 primarily due to the impairment of the leases. The standard did not have a material impact on the Company’s condensed statements of consolidated income or cash flows. Cash Flows 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 adopted the new guidance in the first quarter of fiscal 2020. The adoption of this guidance did not have a material impact on the Company's financial statements or related disclosures. |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | Recently Issued Accounting Guidance 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. In November 2018, April 2019, May 2019, November 2019, and February 2020, the FASB issued ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-11 and ASU 2020-02, respectively, which clarify the guidance in ASU 2016-13. The Company has not yet determined the impact of these pronouncements on its financial statements and related disclosures. In December 2019, the FASB issued its final standard on simplifying the accounting for income taxes. This standard, issued as ASU 2019-12, makes a number of changes meant to add or clarify guidance on accounting for income taxes. This update is effective for annual and interim financial statement periods beginning after December 15, 2021, with early adoption permitted in any interim period for which financial statements have not yet been filed. The Company has not yet determined the impact of these pronouncements on its financial statements and related disclosures. |
Leases Leases (Policies)
Leases Leases (Policies) | 9 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Lessee, Leases [Policy Text Block] | The Company leases facilities for certain service centers, warehouses, distribution centers and office space. The Company also leases office equipment and vehicles. All leases are classified as operating. The Company’s leases expire at various dates through 2031, with terms ranging from 1 year to 15 years. Many of the Company’s real estate leases contain renewal provisions to extend lease terms up to 5 years. The exercise of renewal options is solely at the Company’s discretion. The Company’s lease agreements do not contain material variable lease payments, residual value guarantees or restrictive covenants. The Company does not recognize right-of-use assets or lease liabilities for short-term leases with initial terms of 12 months or less. Leased vehicles comprise the majority of the Company’s short-term leases. All other leases are recorded on the balance sheet with right-of-use assets representing the right to use the underlying asset for the lease term and lease liabilities representing lease payment obligations. The Company’s leases do not provide implicit rates; therefore the Company uses its incremental borrowing rate as the discount rate for measuring lease liabilities. Non-lease components are accounted for separately from lease components. The Company’s operating lease expense is recognized on a straight-line basis over the lease term and is recorded in selling, distribution and administrative expense on the condensed statements of consolidated income. Operating lease costs and short-term lease costs were $8,350 and $2,703 for the three months ended March 31, 2020 , respectively, and were $25,078 and $8,043 for the nine months ended March 31, 2020 , respectively. Variable lease costs and sublease income were not material. |
Revenue Recognition Revenue R_2
Revenue Recognition Revenue Recognition (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from External Customers by Geographic Areas [Table Text Block] | The following tables present the Company's net sales by reportable segment and by geographic areas based on the location of the facility shipping the product for the three and nine months ended March 31, 2020 and 2019 . Other countries consist of Mexico, Australia, New Zealand, and Singapore. Three Months Ended March 31, 2020 2019 Service Center Based Distribution Fluid Power & Flow Control Total Service Center Based Distribution Fluid Power & Flow Control Total Geographic Areas: United States $ 473,069 $ 251,913 $ 724,982 $ 520,180 $ 251,922 $ 772,102 Canada 59,912 — 59,912 66,725 — 66,725 Other countries 41,387 4,516 45,903 43,533 3,083 46,616 Total $ 574,368 $ 256,429 $ 830,797 $ 630,438 $ 255,005 $ 885,443 Nine Months Ended March 31, 2020 2019 Service Center Based Distribution Fluid Power & Flow Control Total Service Center Based Distribution Fluid Power & Flow Control Total Geographic Areas: United States $ 1,433,133 $ 755,175 $ 2,188,308 $ 1,490,289 $ 756,433 $ 2,246,722 Canada 193,755 — 193,755 204,401 — 204,401 Other countries 126,428 12,085 138,513 129,095 9,778 138,873 Total $ 1,753,316 $ 767,260 $ 2,520,576 $ 1,823,785 $ 766,211 $ 2,589,996 |
Disaggregation of Revenue [Table Text Block] | The following tables present the Company’s percentage of revenue by reportable segment and major customer industry for the three and nine months ended March 31, 2020 and 2019 : Three Months Ended March 31, 2020 2019 Service Center Based Distribution Fluid Power & Flow Control Total Service Center Based Distribution Fluid Power & Flow Control Total General Industry 34.8 % 39.9 % 36.4 % 35.8 % 41.7 % 37.5 % Industrial Machinery 9.9 % 24.7 % 14.5 % 10.2 % 24.2 % 14.2 % Metals 11.1 % 6.5 % 9.7 % 12.0 % 8.6 % 11.0 % Food 12.0 % 3.1 % 9.3 % 10.5 % 2.5 % 8.2 % Forest Products 9.8 % 5.7 % 8.5 % 7.0 % 3.6 % 6.0 % Chem/Petrochem 3.3 % 12.8 % 6.2 % 2.8 % 12.8 % 5.7 % Oil & Gas 7.3 % 1.3 % 5.4 % 10.1 % 2.3 % 7.9 % Cement & Aggregate 7.2 % 1.3 % 5.4 % 6.9 % 1.0 % 5.2 % Transportation 4.6 % 4.7 % 4.6 % 4.7 % 3.3 % 4.3 % Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % Nine Months Ended March 31, 2020 2019 Service Center Based Distribution Fluid Power & Flow Control Total Service Center Based Distribution Fluid Power & Flow Control Total General Industry 34.6 % 41.6 % 36.7 % 35.9 % 44.0 % 38.2 % Industrial Machinery 9.7 % 23.7 % 13.9 % 9.7 % 22.0 % 13.3 % Metals 11.3 % 7.4 % 10.1 % 12.2 % 8.3 % 11.1 % Food 11.6 % 2.9 % 9.0 % 10.4 % 2.5 % 8.1 % Forest Products 9.0 % 3.9 % 7.4 % 7.6 % 3.0 % 6.3 % Chem/Petrochem 3.2 % 13.3 % 6.3 % 3.1 % 14.1 % 6.3 % Oil & Gas 8.7 % 1.7 % 6.6 % 10.0 % 2.2 % 7.7 % Cement & Aggregate 7.2 % 1.1 % 5.4 % 6.5 % 1.0 % 4.9 % Transportation 4.7 % 4.4 % 4.6 % 4.6 % 2.9 % 4.1 % Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % The following tables present the Company’s percentage of revenue by reportable segment and product line for the three and nine months ended March 31, 2020 and 2019 : Three Months Ended March 31, 2020 2019 Service Center Based Distribution Fluid Power & Flow Control Total Service Center Based Distribution Fluid Power & Flow Control Total Power Transmission 34.8 % 8.5 % 26.6 % 34.5 % 2.3 % 25.2 % Fluid Power 13.3 % 40.5 % 21.7 % 13.5 % 41.3 % 21.5 % General Maintenance; Hose Products 24.0 % 12.2 % 20.4 % 24.7 % 4.7 % 18.9 % Bearings, Linear & Seals 27.9 % 0.3 % 19.4 % 27.3 % 0.4 % 19.6 % Specialty Flow Control — % 38.5 % 11.9 % — % 51.3 % 14.8 % Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % Nine Months Ended March 31, 2020 2019 Service Center Based Distribution Fluid Power & Flow Control Total Service Center Based Distribution Fluid Power & Flow Control Total Power Transmission 34.7 % 9.9 % 27.2 % 33.8 % 1.7 % 24.3 % Fluid Power 13.3 % 38.4 % 20.9 % 13.7 % 39.0 % 21.2 % General Maintenance; Hose Products 25.5 % 11.1 % 21.1 % 26.0 % 5.0 % 19.7 % Bearings, Linear & Seals 26.5 % 0.3 % 18.6 % 26.5 % 0.3 % 18.8 % Specialty Flow Control — % 40.3 % 12.2 % — % 54.0 % 16.0 % Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % |
Contract with Customer, Asset and Liability [Table Text Block] | Contract Assets The Company’s contract assets consist of un-billed amounts resulting from contracts for which revenue is recognized over time using the cost-to-cost method, and for which revenue recognized exceeds the amount billed to the customer. Activity related to contract assets, which are included in other current assets on the condensed consolidated balance sheet, is as follows: March 31, 2020 June 30, 2019 $ Change % Change Contract assets $ 7,690 $ 8,920 $ (1,230 ) (13.8 )% The difference between the opening and closing balances of the Company's contract assets primarily results from the timing difference between the Company's performance and when the customer is billed. |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
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 & Flow Control segment for the fiscal year ended June 30, 2019 and the nine month period ended March 31, 2020 are as follows: Service Center Based Distribution Fluid Power & Flow Control Total Balance at July 1, 2018 $ 203,084 $ 443,559 $ 646,643 Goodwill acquired during the period 9,943 4,798 14,741 Other, primarily currency translation 607 — 607 Balance at June 30, 2019 $ 213,634 $ 448,357 $ 661,991 Goodwill adjusted/acquired during the period (3,393 ) 14,667 11,274 Impairment — (131,000 ) (131,000 ) Other, primarily currency translation (2,770 ) — (2,770 ) Balance at March 31, 2020 $ 207,471 $ 332,024 $ 539,495 |
Schedule of Intangible Assets | The Company’s identifiable intangible assets resulting from business combinations are amortized over their estimated period of benefit and consist of the following: March 31, 2020 Amount Accumulated Amortization Net Book Value Finite-Lived Identifiable Intangibles: Customer relationships $ 425,187 $ 154,683 $ 270,504 Trade names 111,242 32,666 78,576 Vendor relationships 11,193 8,629 2,564 Other 2,066 846 1,220 Total Identifiable Intangibles $ 549,688 $ 196,824 $ 352,864 June 30, 2019 Amount Accumulated Amortization Net Book Value Finite-Lived Identifiable Intangibles: Customer relationships $ 422,367 $ 135,879 $ 286,488 Trade names 105,946 27,232 78,714 Vendor relationships 11,367 8,156 3,211 Other 2,702 2,249 453 Total Identifiable Intangibles $ 542,382 $ 173,516 $ 368,866 Amounts include the impact of foreign currency translation. Fully amortized amounts are written off. |
Schedule of Acquired Indefinite-lived Intangible Assets by Major Class [Table Text Block] | During the nine month period ended March 31, 2020 , the Company acquired identifiable intangible assets with a preliminary acquisition cost allocation and weighted-average life as follows: Acquisition Cost Allocation Weighted-Average Life Customer relationships $ 7,160 20.0 Trade names 4,260 15.0 Other 980 6.8 Total Intangibles Acquired $ 12,400 17.2 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated Other Comprehensive Loss Changes in the accumulated other comprehensive loss are comprised of the following amounts, shown net of taxes: Three Months Ended March 31, 2020 Foreign currency translation adjustment Post-employment benefits Cash flow hedge Total Accumulated other comprehensive (loss) income Balance at January 1, 2020 $ (84,687 ) $ (2,877 ) $ (9,996 ) $ (97,560 ) Other comprehensive income (28,257 ) — (10,440 ) (38,697 ) Amounts reclassified from accumulated other comprehensive (loss) income — (13 ) 763 750 Net current-period other comprehensive income (loss) (28,257 ) (13 ) (9,677 ) (37,947 ) Balance at March 31, 2020 $ (112,944 ) $ (2,890 ) $ (19,673 ) $ (135,507 ) Three Months Ended March 31, 2019 Foreign currency translation adjustment Post-employment benefits Cash flow hedge Total Accumulated other comprehensive (loss) income Balance at January 1, 2019 $ (92,220 ) $ (2,412 ) $ — $ (94,632 ) Other comprehensive income 2,767 — (5,136 ) (2,369 ) Amounts reclassified from accumulated other comprehensive (loss) income — (56 ) 63 7 Net current-period other comprehensive loss 2,767 (56 ) (5,073 ) (2,362 ) Balance at March 31, 2019 $ (89,453 ) $ (2,468 ) $ (5,073 ) $ (96,994 ) Nine Months Ended March 31, 2020 Foreign currency translation adjustment Post-employment benefits Cash flow hedge Total Accumulated other comprehensive (loss) income Balance at July 1, 2019 $ (86,330 ) $ (2,852 ) $ (10,704 ) $ (99,886 ) Other comprehensive income (loss) (26,614 ) — (10,740 ) (37,354 ) Amounts reclassified from accumulated other comprehensive (loss) income — (38 ) 1,771 1,733 Net current-period other comprehensive income (loss) (26,614 ) (38 ) (8,969 ) (35,621 ) Balance at March 31, 2020 $ (112,944 ) $ (2,890 ) $ (19,673 ) $ (135,507 ) Nine Months Ended March 31, 2019 Foreign currency translation adjustment Unrealized gain (loss) on securities available for sale Post-employment benefits Cash flow hedge Total Accumulated other comprehensive (loss) income Balance at July 1, 2018 $ (87,974 ) $ 50 $ (2,299 ) $ — $ (90,223 ) Other comprehensive loss (1,479 ) — — (5,136 ) (6,615 ) Amounts reclassified from accumulated other comprehensive (loss) income — — (169 ) 63 (106 ) Cumulative effect of adopting accounting standard — (50 ) — — (50 ) Net current-period other comprehensive loss (1,479 ) (50 ) (169 ) (5,073 ) (6,771 ) Balance at March 31, 2019 $ (89,453 ) $ — $ (2,468 ) $ (5,073 ) $ (96,994 ) |
Schedule of Comprehensive Income (Loss) [Table Text Block] | Other Comprehensive Loss Details of other comprehensive loss are as follows: Three Months Ended March 31, 2020 2019 Pre-Tax Amount Tax (Benefit) Expense Net Amount Pre-Tax Amount Tax Expense (Benefit) Net Amount Foreign currency translation adjustments $ (28,767 ) $ (510 ) $ (28,257 ) $ 2,945 $ 178 $ 2,767 Post-employment benefits: Reclassification of net actuarial gains and prior service cost into other income, net and included in net periodic pension costs (17 ) (4 ) (13 ) (77 ) (21 ) (56 ) Unrealized loss on cash flow hedge (13,891 ) (3,451 ) (10,440 ) (6,941 ) (1,805 ) (5,136 ) Reclassification of interest from cash flow hedge into interest expense 1,017 254 763 85 22 63 Other comprehensive loss $ (41,658 ) $ (3,711 ) $ (37,947 ) $ (3,988 ) $ (1,626 ) $ (2,362 ) Nine Months Ended March 31, 2020 2019 Pre-Tax Amount Tax (Benefit) Expense Net Amount Pre-Tax Amount Tax (Benefit) Expense Net Amount Foreign currency translation adjustments $ (27,356 ) $ (742 ) $ (26,614 ) $ (1,611 ) $ (132 ) $ (1,479 ) Post-employment benefits: Reclassification of net actuarial gains and prior service cost into other income, net and included in net periodic pension costs (50 ) (12 ) (38 ) (230 ) (61 ) (169 ) Cumulative effect of adopting accounting standard — — — (50 ) — (50 ) Unrealized loss on cash flow hedge (14,249 ) (3,509 ) (10,740 ) (6,941 ) (1,805 ) (5,136 ) Reclassification of interest from cash flow hedge into interest expense 2,350 579 1,771 85 22 63 Other comprehensive loss $ (39,305 ) $ (3,684 ) $ (35,621 ) $ (8,747 ) $ (1,976 ) $ (6,771 ) |
Leases Leases (Tables)
Leases Leases (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | Information related to operating leases is as follows: March 31, 2020 Operating lease assets, net $ 86,617 Operating lease liabilities Other current liabilities $ 28,710 Other liabilities 62,850 Total operating lease liabilities $ 91,560 |
Lease, Cost [Table Text Block] | March 31, 2020 Weighted average remaining lease term (years) 4.6 Weighted average incremental borrowing rate 3.40 % Three Months Ended March 31, 2020 Nine Months Ended March 31, 2020 Cash paid for operating leases $ 8,902 $ 26,186 Right of use assets obtained in exchange for new operating lease liabilities $ 9,464 $ 27,909 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The table below summarizes the aggregate maturities of liabilities pertaining to operating leases with terms greater than one year for each of the next five years: Fiscal Year Maturity of Operating Lease Liabilities 2020 $ 8,310 2021 28,005 2022 21,187 2023 14,899 2024 11,351 Thereafter 14,850 Total lease payments 98,602 Less interest (7,042 ) Present value of lease liabilities $ 91,560 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The table below summarizes the future minimum annual rental commitments for operating leases accounted for in accordance with Accounting Standards Codification Topic 840, Leases, as of June 30, 2019 : Fiscal Year Operating Leases 2020 $ 33,707 2021 23,407 2022 16,420 2023 10,653 2024 7,838 Thereafter 12,135 Total minimum lease payments $ 104,160 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment financial information | Three Months Ended Service Center Based Distribution Fluid Power & Flow Control Total March 31, 2020 Net sales $ 574,368 $ 256,429 $ 830,797 Operating income for reportable segments 53,014 26,449 79,463 Depreciation and amortization of property 4,373 1,007 5,380 Capital expenditures 3,588 670 4,258 March 31, 2019 Net sales $ 630,438 $ 255,005 $ 885,443 Operating income for reportable segments 64,763 25,837 90,600 Depreciation and amortization of property 3,969 1,057 5,026 Capital expenditures 4,024 591 4,615 Nine Months Ended Service Center Based Distribution Fluid Power & Flow Control Total March 31, 2020 Net sales $ 1,753,316 $ 767,260 $ 2,520,576 Operating income for reportable segments 167,279 82,755 250,034 Assets used in business 1,310,754 978,775 2,289,529 Depreciation and amortization of property 12,831 3,166 15,997 Capital expenditures 14,022 2,201 16,223 March 31, 2019 Net sales $ 1,823,785 $ 766,211 $ 2,589,996 Operating income for reportable segments 185,889 85,960 271,849 Assets used in business 1,252,161 1,070,649 2,322,810 Depreciation and amortization of property 11,791 3,254 15,045 Capital expenditures 9,724 1,987 11,711 |
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 Nine Months Ended March 31, March 31, 2020 2019 2020 2019 Operating income for reportable segments $ 79,463 $ 90,600 $ 250,034 $ 271,849 Adjustment for: Intangible amortization—Service Center Based Distribution 3,811 2,794 9,697 10,785 Intangible amortization—Fluid Power & Flow Control 7,291 7,117 21,974 21,038 Intangible impairment—Service Center Based Distribution — 31,594 — 31,594 Goodwill Impairment—Fluid Power & Flow Control 131,000 — 131,000 — Corporate and other expense, net 15,311 14,586 45,402 46,619 Total operating (loss) income (77,950 ) 34,509 41,961 161,813 Interest expense, net 8,805 9,947 28,447 30,001 Other income, net (1,428 ) (1,256 ) (1,643 ) (549 ) (Loss) income before income taxes $ (85,327 ) $ 25,818 $ 15,157 $ 132,361 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Other (income) expense, net | Other income, net consists of the following: Three Months Ended Nine Months Ended March 31, March 31, 2020 2019 2020 2019 Unrealized loss (gain) on assets held in rabbi trust for a non-qualified deferred compensation plan $ 2,182 $ (1,075 ) $ 1,361 $ (238 ) Foreign currency transactions (gain) loss (3,501 ) 63 (3,167 ) 97 Net other periodic post-employment benefits (30 ) (22 ) (90 ) (66 ) Life insurance (income) expense, net (194 ) (187 ) 165 (380 ) Other, net 115 (35 ) 88 38 Total other income, net $ (1,428 ) $ (1,256 ) $ (1,643 ) $ (549 ) |
Basis of Presentation Change in
Basis of Presentation Change in Accounting Principle (Details) - Accounting Standards Update 2016-02 [Member] $ in Thousands | 9 Months Ended |
Mar. 31, 2020USD ($) | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 83,533 |
Other Liabilities [Member] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 89,778 |
Retained Earnings [Member] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 3,275 |
Revenue Recognition Revenue R_3
Revenue Recognition Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 830,797 | $ 885,443 | $ 2,520,576 | $ 2,589,996 |
UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 724,982 | 772,102 | 2,188,308 | 2,246,722 |
CANADA | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 59,912 | 66,725 | 193,755 | 204,401 |
Other Countries [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 45,903 | 46,616 | 138,513 | 138,873 |
Service Center Based Distribution Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 574,368 | 630,438 | 1,753,316 | 1,823,785 |
Service Center Based Distribution Segment [Member] | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 473,069 | 520,180 | 1,433,133 | 1,490,289 |
Service Center Based Distribution Segment [Member] | CANADA | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 59,912 | 66,725 | 193,755 | 204,401 |
Service Center Based Distribution Segment [Member] | Other Countries [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 41,387 | 43,533 | 126,428 | 129,095 |
Fluid Power & Flow Control Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 256,429 | 255,005 | 767,260 | 766,211 |
Fluid Power & Flow Control Segment [Member] | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 251,913 | 251,922 | 755,175 | 756,433 |
Fluid Power & Flow Control Segment [Member] | CANADA | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Fluid Power & Flow Control Segment [Member] | Other Countries [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 4,516 | $ 3,083 | $ 12,085 | $ 9,778 |
Revenue Recognition Revenue R_4
Revenue Recognition Revenue Recognition (Details 1) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
General Industry [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 36.40% | 37.50% | 36.70% | 38.20% |
Industrial Machinery [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 14.50% | 14.20% | 13.90% | 13.30% |
Metals [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 9.70% | 11.00% | 10.10% | 11.10% |
Food [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 9.30% | 8.20% | 9.00% | 8.10% |
Forest Products [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 8.50% | 6.00% | 7.40% | 6.30% |
Chem/Petrochem [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 6.20% | 5.70% | 6.30% | 6.30% |
Oil & Gas [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 5.40% | 7.90% | 6.60% | 7.70% |
Cement & Aggregate [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 5.40% | 5.20% | 5.40% | 4.90% |
Transportation [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 4.60% | 4.30% | 4.60% | 4.10% |
Total | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 100.00% | 100.00% | 100.00% | 100.00% |
Service Center Based Distribution Segment [Member] | General Industry [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 34.80% | 35.80% | 34.60% | 35.90% |
Service Center Based Distribution Segment [Member] | Industrial Machinery [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 9.90% | 10.20% | 9.70% | 9.70% |
Service Center Based Distribution Segment [Member] | Metals [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 11.10% | 12.00% | 11.30% | 12.20% |
Service Center Based Distribution Segment [Member] | Food [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 12.00% | 10.50% | 11.60% | 10.40% |
Service Center Based Distribution Segment [Member] | Forest Products [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 9.80% | 7.00% | 9.00% | 7.60% |
Service Center Based Distribution Segment [Member] | Chem/Petrochem [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 3.30% | 2.80% | 3.20% | 3.10% |
Service Center Based Distribution Segment [Member] | Oil & Gas [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 7.30% | 10.10% | 8.70% | 10.00% |
Service Center Based Distribution Segment [Member] | Cement & Aggregate [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 7.20% | 6.90% | 7.20% | 6.50% |
Service Center Based Distribution Segment [Member] | Transportation [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 4.60% | 4.70% | 4.70% | 4.60% |
Service Center Based Distribution Segment [Member] | Total | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 100.00% | 100.00% | 100.00% | 100.00% |
Fluid Power & Flow Control Segment [Member] | General Industry [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 39.90% | 41.70% | 41.60% | 44.00% |
Fluid Power & Flow Control Segment [Member] | Industrial Machinery [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 24.70% | 24.20% | 23.70% | 22.00% |
Fluid Power & Flow Control Segment [Member] | Metals [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 6.50% | 8.60% | 7.40% | 8.30% |
Fluid Power & Flow Control Segment [Member] | Food [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 3.10% | 2.50% | 2.90% | 2.50% |
Fluid Power & Flow Control Segment [Member] | Forest Products [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 5.70% | 3.60% | 3.90% | 3.00% |
Fluid Power & Flow Control Segment [Member] | Chem/Petrochem [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 12.80% | 12.80% | 13.30% | 14.10% |
Fluid Power & Flow Control Segment [Member] | Oil & Gas [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 1.30% | 2.30% | 1.70% | 2.20% |
Fluid Power & Flow Control Segment [Member] | Cement & Aggregate [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 1.30% | 1.00% | 1.10% | 1.00% |
Fluid Power & Flow Control Segment [Member] | Transportation [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 4.70% | 3.30% | 4.40% | 2.90% |
Fluid Power & Flow Control Segment [Member] | Total | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 100.00% | 100.00% | 100.00% | 100.00% |
Revenue Recognition Revenue R_5
Revenue Recognition Revenue Recognition (Details 2) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 100.00% | 100.00% | 100.00% | 100.00% |
Power Transmission [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 26.60% | 25.20% | 27.20% | 24.30% |
Fluid Power [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 21.70% | 21.50% | 20.90% | 21.20% |
General Maintenance; Hose Products [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 20.40% | 18.90% | 21.10% | 19.70% |
Bearings, Linear & Seals [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 19.40% | 19.60% | 18.60% | 18.80% |
Specialty Flow Control [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 11.90% | 14.80% | 12.20% | 16.00% |
Service Center Based Distribution Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 100.00% | 100.00% | 100.00% | 100.00% |
Service Center Based Distribution Segment [Member] | Power Transmission [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 34.80% | 34.50% | 34.70% | 33.80% |
Service Center Based Distribution Segment [Member] | Fluid Power [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 13.30% | 13.50% | 13.30% | 13.70% |
Service Center Based Distribution Segment [Member] | General Maintenance; Hose Products [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 24.00% | 24.70% | 25.50% | 26.00% |
Service Center Based Distribution Segment [Member] | Bearings, Linear & Seals [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 27.90% | 27.30% | 26.50% | 26.50% |
Service Center Based Distribution Segment [Member] | Specialty Flow Control [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 0.00% | 0.00% | 0.00% | 0.00% |
Fluid Power & Flow Control Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 100.00% | 100.00% | 100.00% | 100.00% |
Fluid Power & Flow Control Segment [Member] | Power Transmission [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 8.50% | 2.30% | 9.90% | 1.70% |
Fluid Power & Flow Control Segment [Member] | Fluid Power [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 40.50% | 41.30% | 38.40% | 39.00% |
Fluid Power & Flow Control Segment [Member] | General Maintenance; Hose Products [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 12.20% | 4.70% | 11.10% | 5.00% |
Fluid Power & Flow Control Segment [Member] | Bearings, Linear & Seals [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 0.30% | 0.40% | 0.30% | 0.30% |
Fluid Power & Flow Control Segment [Member] | Specialty Flow Control [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 38.50% | 51.30% | 40.30% | 54.00% |
Revenue Recognition Revenue R_6
Revenue Recognition Revenue Recognition (Details 3) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Contract Assets | $ 7,690 | $ 8,920 |
Contract Assets Period $ Change | $ (1,230) | |
Contract Assets Period % Change | (13.80%) |
Business Combinations Business
Business Combinations Business Combinations Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Jun. 30, 2019 | Aug. 21, 2019 | Mar. 04, 2019 | Nov. 02, 2018 | |
Olympus Controls [Member] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||||
Total Consideration | $ 36,642 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 9,540 | ||||
Intangible Assets, Net (Including Goodwill) | $ 27,102 | ||||
MilRoc [Member] [Domain] | |||||
Total Consideration | $ 35,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 17,788 | ||||
Intangible Assets, Net (Including Goodwill) | 17,212 | ||||
Funding from Holdback Payments | 1,666 | $ 4,375 | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | ||||
Fluid Power Sales [Member] | |||||
Total Consideration | 8,066 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 4,151 | ||||
Intangible Assets, Net (Including Goodwill) | 3,915 | ||||
Funding from Holdback Payments | 600 | $ 1,200 | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | ||||
Other Current Liabilities [Member] | MilRoc [Member] [Domain] | |||||
Funding from Holdback Payments | $ 2,709 | ||||
Other Current Liabilities [Member] | Fluid Power Sales [Member] | |||||
Funding from Holdback Payments | $ 600 |
Goodwill and Intangibles (Detai
Goodwill and Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2019 | |
Changes in the carrying amount of goodwill by reportable segment | |||||
Balance at beginning of period | $ 661,991 | $ 646,643 | $ 646,643 | ||
Goodwill adjusted/acquired during the period | 11,274 | 14,741 | |||
Impairment | $ (131,000) | (131,000) | |||
Other, primarily currency translation | (2,770) | 607 | |||
Balance at March 31, 2020 | 539,495 | 539,495 | 661,991 | ||
Service Center Based Distribution Segment [Member] | |||||
Changes in the carrying amount of goodwill by reportable segment | |||||
Balance at beginning of period | 213,634 | 203,084 | 203,084 | ||
Goodwill adjusted/acquired during the period | (3,393) | 9,943 | |||
Impairment | 0 | ||||
Other, primarily currency translation | (2,770) | 607 | |||
Balance at March 31, 2020 | 207,471 | 207,471 | 213,634 | ||
Fluid Power & Flow Control Segment [Member] | |||||
Changes in the carrying amount of goodwill by reportable segment | |||||
Balance at beginning of period | 448,357 | 443,559 | 443,559 | ||
Goodwill adjusted/acquired during the period | 14,667 | 4,798 | |||
Impairment | (131,000) | $ 0 | (131,000) | $ 0 | |
Other, primarily currency translation | 0 | 0 | |||
Balance at March 31, 2020 | $ 332,024 | $ 332,024 | $ 448,357 |
Goodwill and Intangibles (Det_2
Goodwill and Intangibles (Details 1) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Amortization details resulting from business combinations | ||
Amount | $ 549,688 | $ 542,382 |
Accumulated Amortization | 196,824 | 173,516 |
Net Book Value | 352,864 | 368,866 |
Customer relationships | ||
Amortization details resulting from business combinations | ||
Amount | 425,187 | 422,367 |
Accumulated Amortization | 154,683 | 135,879 |
Net Book Value | 270,504 | 286,488 |
Trade names | ||
Amortization details resulting from business combinations | ||
Amount | 111,242 | 105,946 |
Accumulated Amortization | 32,666 | 27,232 |
Net Book Value | 78,576 | 78,714 |
Vendor relationships | ||
Amortization details resulting from business combinations | ||
Amount | 11,193 | 11,367 |
Accumulated Amortization | 8,629 | 8,156 |
Net Book Value | 2,564 | 3,211 |
Non-competition agreements | ||
Amortization details resulting from business combinations | ||
Amount | 2,066 | 2,702 |
Accumulated Amortization | 846 | 2,249 |
Net Book Value | $ 1,220 | $ 453 |
Goodwill and Intangibles Goodwi
Goodwill and Intangibles Goodwill and Intangibles (Details 2) $ in Thousands | 9 Months Ended |
Mar. 31, 2020USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 12,400 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 17 years 2 months 12 days |
Customer Relationships [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 7,160 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 20 years |
Trade Names [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 4,260 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years |
Other Intangible Assets [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 980 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years 9 months 18 days |
Goodwill and Intangibles (Det_3
Goodwill and Intangibles (Details Textuals) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | |
Goodwill [Line Items] | ||||||
Finite-Lived Intangible Assets, Gross | $ (549,688) | $ (549,688) | $ (542,382) | |||
Intangible amortization | $ 31,671 | $ 31,823 | ||||
Number of Reporting Units | 7 | 8 | ||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 10.00% | 10.00% | ||||
Goodwill | $ 539,495 | $ 539,495 | 661,991 | $ 646,643 | ||
Impairment | 131,000 | 131,000 | ||||
Impairment of Intangible Assets, Finite-lived | $ 31,594 | 31,594 | ||||
Goodwill and Intangibles (Textuals) [Abstract] | ||||||
Amortization expense for the remainder of 2020 | 10,000 | 10,000 | ||||
Amortization expense for 2021 | 38,200 | 38,200 | ||||
Amortization expense for 2022 | 36,100 | 36,100 | ||||
Amortization expense for 2023 | 33,900 | 33,900 | ||||
Amortization expense for 2024 | 29,700 | 29,700 | ||||
Amortization expense for 2025 | 26,200 | 26,200 | ||||
Service Center Based Distribution Segment [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 207,471 | 207,471 | 213,634 | 203,084 | ||
Impairment | 0 | |||||
Accumulated goodwill impairment losses | 64,794 | 64,794 | ||||
Fluid Power & Flow Control Segment [Member] | ||||||
Goodwill [Line Items] | ||||||
Intangible amortization | 7,291 | 7,117 | 21,974 | 21,038 | ||
Goodwill | 332,024 | 332,024 | 448,357 | $ 443,559 | ||
Impairment | 131,000 | $ 0 | 131,000 | $ 0 | ||
Accumulated goodwill impairment losses | $ 167,605 | $ 167,605 | 36,605 | |||
CANADA | ||||||
Goodwill [Line Items] | ||||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 12.00% | 12.00% | ||||
Goodwill | $ 26,328 | $ 26,328 | ||||
MEXICO | ||||||
Goodwill [Line Items] | ||||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 14.00% | 14.00% | ||||
Goodwill | $ 4,945 | $ 4,945 | ||||
FCX Performance, Inc [Member] [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 309,012 | 309,012 | ||||
FCX Performance, Inc [Member] [Member] | Fluid Power & Flow Control Segment [Member] | ||||||
Goodwill [Line Items] | ||||||
Impairment | 131,000 | |||||
Customer Relationships [Member] | ||||||
Goodwill [Line Items] | ||||||
Finite-Lived Intangible Assets, Gross | (425,187) | (425,187) | (422,367) | |||
Trade Names [Member] | ||||||
Goodwill [Line Items] | ||||||
Finite-Lived Intangible Assets, Gross | (111,242) | (111,242) | (105,946) | |||
Other Intangible Assets [Member] | ||||||
Goodwill [Line Items] | ||||||
Finite-Lived Intangible Assets, Gross | (2,066) | (2,066) | $ (2,702) | |||
MilRoc [Member] [Domain] | ||||||
Goodwill [Line Items] | ||||||
Goodwill, Purchase Accounting Adjustments | 3,393 | |||||
Intangible amortization | 303 | |||||
MilRoc [Member] [Domain] | Customer Relationships [Member] | ||||||
Goodwill [Line Items] | ||||||
Finite-Lived Intangible Assets, Gross | (1,524) | (1,524) | ||||
MilRoc [Member] [Domain] | Trade Names [Member] | ||||||
Goodwill [Line Items] | ||||||
Finite-Lived Intangible Assets, Gross | (1,809) | (1,809) | ||||
MilRoc [Member] [Domain] | Other Intangible Assets [Member] | ||||||
Goodwill [Line Items] | ||||||
Finite-Lived Intangible Assets, Gross | (60) | (60) | ||||
Olympus Controls [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill, Purchase Accounting Adjustments | 264 | |||||
Intangible amortization | 24 | |||||
Olympus Controls [Member] | Customer Relationships [Member] | ||||||
Goodwill [Line Items] | ||||||
Finite-Lived Intangible Assets, Gross | (5,504) | (5,504) | ||||
Olympus Controls [Member] | Trade Names [Member] | ||||||
Goodwill [Line Items] | ||||||
Finite-Lived Intangible Assets, Gross | (4,260) | (4,260) | ||||
Olympus Controls [Member] | Other Intangible Assets [Member] | ||||||
Goodwill [Line Items] | ||||||
Finite-Lived Intangible Assets, Gross | $ (980) | $ (980) |
Debt Debt (Details)
Debt Debt (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2019 | |
Long-term Debt Instruments [Line Items] | ||||
Letters of Credit Outstanding, Amount | $ 3,788,000 | $ 3,788,000 | $ 2,698,000 | |
Long-term debt repayments | 39,803,000 | $ 156,803,000 | ||
Debt Issuance Costs, Gross, Current | 598,000 | 598,000 | 577,000 | |
Debt Issuance Cost, Gross, Noncurrent | 1,028,000 | 1,028,000 | 1,366,000 | |
Revolving Credit Facility [Member] | ||||
Long-term Debt Instruments [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 250,000,000 | 250,000,000 | ||
Letters of Credit Outstanding, Amount | 1,786,000 | 1,786,000 | 3,215,000 | |
Line of Credit Facility, Remaining Borrowing Capacity | 248,214,000 | $ 248,214,000 | 246,785,000 | |
Revolving Credit Facility [Member] | Minimum [Member] | ||||
Long-term Debt Instruments [Line Items] | ||||
Line of Credit Facility, Commitment Fee Percentage | 0.10% | |||
Revolving Credit Facility [Member] | Maximum [Member] | ||||
Long-term Debt Instruments [Line Items] | ||||
Line of Credit Facility, Commitment Fee Percentage | 0.20% | |||
Long-term Debt [Member] | ||||
Long-term Debt Instruments [Line Items] | ||||
Debt Instrument, Face Amount | 780,000,000 | $ 780,000,000 | ||
Long-term Debt | $ 599,000,000 | $ 599,000,000 | $ 613,625,000 | |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 2.75% | 2.75% | 4.19% | |
Asset-backed Securities, Securitized Loans and Receivables [Member] | ||||
Long-term Debt Instruments [Line Items] | ||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 2.52% | 2.52% | 3.33% | |
Principal Amount Outstanding on Loans Securitized or Asset-backed Financing Arrangement | $ 175,000,000 | $ 175,000,000 | ||
Debt Instrument, Fee | 0.0090 | 0.0090 | ||
Prudential Facility [Domain] | ||||
Long-term Debt Instruments [Line Items] | ||||
Debt Instrument, Face Amount | $ 170,000,000 | $ 170,000,000 | ||
Prudential Facility [Domain] | Minimum [Member] | ||||
Long-term Debt Instruments [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 0.25% | 0.25% | ||
Prudential Facility [Domain] | Maximum [Member] | ||||
Long-term Debt Instruments [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1.25% | 1.25% | ||
Prudential Facility - Series C [Member] | ||||
Long-term Debt Instruments [Line Items] | ||||
Long-term Debt | $ 120,000,000 | $ 120,000,000 | ||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.19% | 3.19% | ||
Prudential Facility - Series D [Member] | ||||
Long-term Debt Instruments [Line Items] | ||||
Debt Instrument, Face Amount | $ 50,000,000 | $ 50,000,000 | ||
Long-term Debt | $ 25,000,000 | $ 25,000,000 | ||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.21% | 3.21% | ||
Long-term debt repayments | $ 25,000,000 | |||
Prudential Facility - Series E [Member] [Member] | ||||
Long-term Debt Instruments [Line Items] | ||||
Long-term Debt | $ 25,000,000 | $ 25,000,000 | ||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.08% | 3.08% | ||
State of Ohio Assumed Debt [Member] | ||||
Long-term Debt Instruments [Line Items] | ||||
Debt Instrument, Face Amount | $ 2,359,000 | $ 2,359,000 | ||
Long-term Debt | $ 1,026,000 | $ 1,026,000 | $ 1,204,000 | |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 1.50% | 1.50% |
Derivatives Derivatives (Detail
Derivatives Derivatives (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Derivative [Line Items] | ||
Derivative, Amount of Hedged Item | $ 431,000 | $ 463,000 |
Derivative, Fixed Interest Rate | 4.36% | 4.36% |
Interest Rate Cash Flow Hedge Liability at Fair Value | $ 26,102 | $ 14,202 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Level 1 [Member] | Recurring [Member] | ||
Fair Value Measurements (Textuals) [Line Items] | ||
Marketable securities | $ 10,345 | $ 11,246 |
Shareholders' Equity Accumulate
Shareholders' Equity Accumulated Other Comprehensive Income (Loss) [Table] (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Balance at beginning of period | $ (99,886) | $ (99,886) | ||||||
Other comprehensive income (loss), Cash flow hedge | $ (10,440) | $ (5,136) | (10,740) | $ (5,136) | ||||
Amounts reclassified from accumulated other comprehensive (loss) income | (106) | |||||||
Amounts reclassified from accumulated other comprehensive (loss) income, Cash flow hedge | 763 | 63 | 1,771 | 63 | ||||
Net current-period other comprehensive income (loss), net of taxes, Foreign Currency Translation Adjustment | (28,257) | 2,767 | (26,614) | (1,479) | ||||
Net current-period other comprehensive income (loss), net of taxes, Securities Available for Sale | 0 | (50) | ||||||
Net current-period other comprehensive income (loss), net of taxes, Total accumulated other comprehensive income (loss) | (37,947) | (2,362) | (35,621) | (6,771) | ||||
Balance at end of period | (135,507) | (135,507) | ||||||
Adjustments for New Accounting Pronouncement [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Amounts reclassified from accumulated other comprehensive (loss) income | (50) | |||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Amounts reclassified from accumulated other comprehensive (loss) income | 750 | 7 | 1,733 | 0 | ||||
Amounts reclassified from accumulated other comprehensive (loss) income, Postemployment benefits | (13) | (56) | (38) | (169) | ||||
Amounts reclassified from accumulated other comprehensive (loss) income, Cash flow hedge | 763 | 63 | 1,771 | 63 | ||||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Balance at beginning of period | (84,687) | (86,330) | (92,220) | $ (87,974) | (86,330) | (87,974) | ||
Other comprehensive income (loss), Foreign Currency Translation Adjustment | (28,257) | 2,767 | (26,614) | (1,479) | ||||
Amounts reclassified from accumulated other comprehensive (loss) income | 0 | 0 | 0 | 0 | ||||
Net current-period other comprehensive income (loss), net of taxes, Foreign Currency Translation Adjustment | (28,257) | 2,767 | (26,614) | (1,479) | ||||
Balance at end of period | (112,944) | $ (84,687) | (89,453) | $ (92,220) | (112,944) | (89,453) | ||
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Balance at beginning of period | 50 | 50 | ||||||
Other comprehensive income (loss), Unrealized gain (loss) on securities available for sale | 0 | |||||||
Amounts reclassified from accumulated other comprehensive (loss) income | 0 | |||||||
Net current-period other comprehensive income (loss), net of taxes, Securities Available for Sale | (50) | |||||||
Balance at end of period | 0 | 0 | ||||||
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | Adjustments for New Accounting Pronouncement [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Amounts reclassified from accumulated other comprehensive (loss) income | (50) | |||||||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Balance at beginning of period | (2,877) | (2,852) | (2,412) | (2,299) | (2,852) | (2,299) | ||
Other comprehensive income (loss), Postemployment Benefits, | 0 | 0 | 0 | 0 | ||||
Amounts reclassified from accumulated other comprehensive (loss) income | 0 | |||||||
Net current-period other comprehensive income (loss), net of taxes, Postemployment benefits | (13) | (56) | (38) | (169) | ||||
Balance at end of period | (2,890) | (2,877) | (2,468) | (2,412) | (2,890) | (2,468) | ||
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Balance at beginning of period | (9,996) | (10,704) | 0 | (10,704) | ||||
Other comprehensive income (loss), Cash flow hedge | (10,440) | (5,136) | (10,740) | (5,136) | ||||
Net current-period other comprehensive income (loss), net of taxes, Cash flow hedge | (9,677) | (5,073) | (8,969) | (5,073) | ||||
Balance at end of period | (19,673) | (9,996) | (5,073) | 0 | (19,673) | (5,073) | ||
AOCI Attributable to Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Balance at beginning of period | (97,560) | (99,886) | (94,632) | (90,223) | (99,886) | (90,223) | ||
Other comprehensive income (loss), Total accumulated other comprehensive income (loss) | (38,697) | (2,369) | (37,354) | (6,615) | ||||
Net current-period other comprehensive income (loss), net of taxes, Total accumulated other comprehensive income (loss) | (37,947) | 7,573 | $ (5,247) | (2,362) | (9,756) | $ 5,347 | (35,621) | (6,771) |
Balance at end of period | $ (135,507) | $ (97,560) | $ (96,994) | $ (94,632) | $ (135,507) | $ (96,994) |
Shareholders' Equity (Details 1
Shareholders' Equity (Details 1 ) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, before Tax | $ (28,767) | $ 2,945 | $ (27,356) | $ (1,611) |
Foreign currency translation adjustments, Tax | (510) | 178 | (742) | (132) |
Foreign currency translation adjustments, Net of Tax | (28,257) | 2,767 | (26,614) | (1,479) |
Post-employment benefits: | ||||
Reclassification of net actuarial gains and prior service cost into other income, net and included in net periodic pension costs, before Tax | (17) | (77) | (50) | (230) |
Reclassification of net actuarial gains and prior service cost into other income, net and included in net periodic pension costs, Tax | (4) | (21) | (12) | (61) |
Reclassification of net actuarial gains and prior service cost into other income, net and included in net periodic pension costs, Net of Tax | (13) | (56) | (38) | (169) |
Cumulative effect of adopting accounting standard, before tax | 0 | 0 | 0 | (50) |
Cumulative effect of adopting accounting standard, tax | 0 | 0 | ||
Cumulative effect of adopting accounting standard, Net of Tax | 0 | (50) | ||
Unrealized loss on cash flow hedge, before Tax | (13,891) | (6,941) | (14,249) | (6,941) |
Unrealized loss on cash flow hedge, Tax | (3,451) | (1,805) | (3,509) | (1,805) |
Unrealized loss on cash flow hedge, Net of Tax | (10,440) | (5,136) | (10,740) | (5,136) |
Reclassification of interest from cash flow hedge into interest expense | 1,017 | 85 | 2,350 | 85 |
Reclassification of interest from cash flow hedge into interest expense, Tax | 254 | (22) | 579 | (22) |
Reclassification of interest from cash flow hedge into interest expense, Net of Tax | 763 | 63 | 1,771 | 63 |
Other Comprehensive Income (Loss), before Tax | (41,658) | (3,988) | (39,305) | (8,747) |
Other Comprehensive Income (Loss), Tax | (3,711) | (1,626) | (3,684) | (1,976) |
Other Comprehensive Income (Loss), Net of Tax | $ (37,947) | $ (2,362) | $ (35,621) | $ (6,771) |
Shareholders' Equity Shareholde
Shareholders' Equity Shareholders Equity Details Textuals (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended |
Mar. 31, 2019 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 467 | 255 |
Leases Leases (Details)
Leases Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Leases [Abstract] | ||
Operating lease assets, net | $ 86,617 | $ 0 |
Operating lease liabilities [Abstract] | ||
Other current liabilities | 28,710 | |
Other liabilities | 62,850 | |
Total operating lease liabilities | $ 91,560 |
Leases Leases (Details 1)
Leases Leases (Details 1) $ in Thousands | 3 Months Ended | 9 Months Ended |
Mar. 31, 2020USD ($) | Mar. 31, 2020USD ($) | |
Leases [Abstract] | ||
Weighted average remaining lease term (years) | 4 years 7 months 6 days | 4 years 7 months 6 days |
Weighted average incremental borrowing rate | 3.40% | 3.40% |
Cash paid for operating leases | $ 8,902 | $ 26,186 |
Right of use assets obtained in exchange for new operating lease liabilities | $ 9,464 | $ 27,909 |
Leases Leases (Details 2)
Leases Leases (Details 2) $ in Thousands | Mar. 31, 2020USD ($) |
Leases [Abstract] | |
Maturity of Operating Lease Liabilities, 2020 | $ 8,310 |
Maturity of Operating Lease Liabilities, 2021 | 28,005 |
Maturity of Operating Lease Liabilities, 2022 | 21,187 |
Maturity of Operating Lease Liabilities, 2023 | 14,899 |
Maturity of Operating Lease Liabilities, 2024 | 11,351 |
Maturity of Operating Lease Liabilities, Thereafter | 14,850 |
Total lease payments | 98,602 |
Less interest | (7,042) |
Present value of lease liabilities | $ 91,560 |
Leases Leases (Details 3)
Leases Leases (Details 3) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Operating Leases, Future Minimum Payments Due, 2020 | $ 33,707 |
Operating Leases, Future Minimum Payments Due, 2021 | 23,407 |
Operating Leases, Future Minimum Payments Due, 2022 | 16,420 |
Operating Leases, Future Minimum Payments Due, 2023 | 10,653 |
Operating Leases, Future Minimum Payments Due, 2024 | 7,838 |
Operating Leases, Future Minimum Payments, Due Thereafter | 12,135 |
Total minimum lease payments | $ 104,160 |
Leases Leases Textuals (Details
Leases Leases Textuals (Details 4) $ in Thousands | 3 Months Ended | 9 Months Ended |
Mar. 31, 2020USD ($) | Mar. 31, 2020USD ($) | |
Lessee, Operating Lease, Renewal Term | 5 years | 5 years |
Operating Lease, Cost | $ 8,350 | $ 25,078 |
Short-term Lease, Cost | $ 2,703 | $ 8,043 |
Minimum [Member] | ||
Lessee, Operating Lease, Term of Contract | 1 year | 1 year |
Maximum [Member] | ||
Lessee, Operating Lease, Term of Contract | 15 years | 15 years |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 830,797 | $ 885,443 | $ 2,520,576 | $ 2,589,996 | |
Operating income for reportable segments | (77,950) | 34,509 | 41,961 | 161,813 | |
Assets used in business | 2,289,529 | 2,289,529 | $ 2,331,697 | ||
Depreciation and amortization of property | 15,997 | 15,045 | |||
Capital expenditures | 16,223 | 11,711 | |||
Service Center Based Distribution [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 574,368 | 630,438 | 1,753,316 | 1,823,785 | |
Operating income for reportable segments | 53,014 | 64,763 | 167,279 | 185,889 | |
Assets used in business | 1,310,754 | 1,252,161 | 1,310,754 | 1,252,161 | |
Depreciation and amortization of property | 4,373 | 3,969 | 12,831 | 11,791 | |
Capital expenditures | 3,588 | 4,024 | 14,022 | 9,724 | |
Fluid Power & Flow Control Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 256,429 | 255,005 | 767,260 | 766,211 | |
Operating income for reportable segments | 26,449 | 25,837 | 82,755 | 85,960 | |
Assets used in business | 978,775 | 1,070,649 | 978,775 | 1,070,649 | |
Depreciation and amortization of property | 1,007 | 1,057 | 3,166 | 3,254 | |
Capital expenditures | 670 | 591 | 2,201 | 1,987 | |
Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 830,797 | 885,443 | 2,520,576 | 2,589,996 | |
Operating income for reportable segments | 79,463 | 90,600 | 250,034 | 271,849 | |
Assets used in business | 2,289,529 | 2,322,810 | 2,289,529 | 2,322,810 | |
Depreciation and amortization of property | 5,380 | 5,026 | 15,997 | 15,045 | |
Capital expenditures | $ 4,258 | $ 4,615 | $ 16,223 | $ 11,711 |
Segment Information (Details 1)
Segment Information (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Reconciliation of operating income for reportable segments to the consolidated income before income taxes | ||||
Total operating income | $ (77,950) | $ 34,509 | $ 41,961 | $ 161,813 |
Adjustment for: | ||||
Intangible amortization | 31,671 | 31,823 | ||
Goodwill & intangible impairment | 31,594 | 31,594 | ||
Goodwill & intangible impairment | 131,000 | 131,000 | ||
Corporate and other expense, net | 15,311 | 14,586 | 45,402 | 46,619 |
Interest expense, net | 8,805 | 9,947 | 28,447 | 30,001 |
Other income, net | (1,428) | (1,256) | (1,643) | (549) |
(Loss) income before income taxes | (85,327) | 25,818 | 15,157 | 132,361 |
Operating Segments [Member] | ||||
Reconciliation of operating income for reportable segments to the consolidated income before income taxes | ||||
Total operating income | 79,463 | 90,600 | 250,034 | 271,849 |
Service Center Based Distribution [Member] | ||||
Reconciliation of operating income for reportable segments to the consolidated income before income taxes | ||||
Total operating income | 53,014 | 64,763 | 167,279 | 185,889 |
Adjustment for: | ||||
Intangible amortization | 3,811 | 2,794 | 9,697 | 10,785 |
Goodwill & intangible impairment | 0 | 31,594 | 0 | 31,594 |
Fluid Power & Flow Control Segment [Member] | ||||
Reconciliation of operating income for reportable segments to the consolidated income before income taxes | ||||
Total operating income | 26,449 | 25,837 | 82,755 | 85,960 |
Adjustment for: | ||||
Intangible amortization | 7,291 | 7,117 | 21,974 | 21,038 |
Goodwill & intangible impairment | $ 131,000 | $ 0 | $ 131,000 | $ 0 |
Segment Information (Details Te
Segment Information (Details Textuals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||||
Inventory, LIFO Reserve, Period Charge | $ 1,950 | $ 3,650 | $ 4,237 | $ 7,997 |
Net sales | 830,797 | 885,443 | 2,520,576 | 2,589,996 |
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 7,685 | $ 7,328 | $ 22,434 | $ 21,013 |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | ||||
Unrealized loss (gain) on assets held in rabbi trust for a non-qualified deferred compensation plan | $ 2,182 | $ (1,075) | $ 1,361 | $ (238) |
Foreign currency transactions (gain) loss | (3,501) | 63 | (3,167) | 97 |
Net other periodic post-employment benefits | (30) | (22) | (90) | (66) |
Life insurance (income) expense, net | (194) | (187) | 165 | (380) |
Other, net | 115 | (35) | 88 | 38 |
Total other income, net | $ (1,428) | $ (1,256) | $ (1,643) | $ (549) |