Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2022 | Jan. 13, 2023 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2022 | |
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 | 38,599,687 | |
Document and Entity Information [Abstract] | ||
Entity Central Index Key | 0000109563 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Statements of Consoli
Condensed Statements of Consolidated Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,060,280 | $ 876,874 | $ 2,122,685 | $ 1,768,555 |
Cost of sales | 751,775 | 619,249 | 1,507,397 | 1,255,590 |
Gross profit | 308,505 | 257,625 | 615,288 | 512,965 |
Selling, distribution and administrative expense, including depreciation | 195,612 | 179,448 | 395,863 | 360,174 |
Operating income | 112,893 | 78,177 | 219,425 | 152,791 |
Interest expense, net | 6,185 | 7,007 | 12,665 | 14,397 |
Other expense (income), net | 758 | (869) | 1,766 | (1,181) |
Income before income taxes | 105,950 | 72,039 | 204,994 | 139,575 |
Income tax expense | 25,493 | 15,013 | 47,657 | 29,580 |
Net income | $ 80,457 | $ 57,026 | $ 157,337 | $ 109,995 |
Net income per share - basic | $ 2.09 | $ 1.48 | $ 4.08 | $ 2.86 |
Net income per share - diluted | $ 2.05 | $ 1.46 | $ 4.02 | $ 2.81 |
Weighted average common shares outstanding for basic computation | 38,579 | 38,456 | 38,552 | 38,479 |
Dilutive effect of potential common shares | 629 | 666 | 610 | 625 |
Weighted average common shares outstanding for diluted computation | 39,208 | 39,122 | 39,162 | 39,104 |
Condensed Statements of Conso_2
Condensed Statements of Consolidated Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net income per the condensed statements of consolidated income | $ 80,457 | $ 57,026 | $ 157,337 | $ 109,995 |
Other comprehensive income, before tax: | ||||
Foreign currency translation adjustments | 5,929 | (783) | (5,508) | (7,965) |
Post-employment benefits: | ||||
Reclassification of net actuarial losses and prior service cost into other expense (income), net and included in net periodic pension costs | 10 | 75 | 18 | 150 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Settlement and Curtailment Gain (Loss), before Tax | 1,031 | 0 | 1,031 | 0 |
Unrealized gain on cash flow hedge | 548 | 4,867 | 12,858 | 5,463 |
Reclassification of interest from cash flow hedge into interest expense, net | (715) | 2,585 | 81 | 5,170 |
Total other comprehensive income, before tax | 6,803 | 6,744 | 8,480 | 2,818 |
Income tax expense related to items of other comprehensive income | 259 | 1,856 | 3,571 | 2,661 |
Other comprehensive income, net of tax | 6,544 | 4,888 | 4,909 | 157 |
Comprehensive income, net of tax | $ 87,001 | $ 61,914 | $ 162,246 | $ 110,152 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Current assets | ||
Cash and cash equivalents | $ 165,538 | $ 184,474 |
Accounts receivable, net | 654,510 | 656,429 |
Inventories | 523,021 | 449,821 |
Other current assets | 79,183 | 68,805 |
Total current assets | 1,422,252 | 1,359,529 |
Property, less accumulated depreciation of $222,086 and $215,015 | 112,790 | 111,896 |
Operating lease assets, net | 105,797 | 108,052 |
Identifiable intangibles, net | 246,739 | 250,590 |
Goodwill | 572,319 | 563,205 |
Other assets | 63,007 | 59,316 |
TOTAL ASSETS | 2,522,904 | 2,452,588 |
Current liabilities | ||
Accounts payable | 250,407 | 259,463 |
Current portion of long-term debt | 25,189 | 40,174 |
Compensation and related benefits | 73,873 | 91,166 |
Other current liabilities | 97,736 | 108,824 |
Total current liabilities | 447,205 | 499,627 |
Long-term debt | 624,052 | 649,150 |
Other liabilities | 155,771 | 154,456 |
TOTAL LIABILITIES | 1,227,028 | 1,303,233 |
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 | 184,795 | 183,822 |
Retained earnings | 1,643,874 | 1,499,676 |
Treasury shares—at cost (15,614 and 15,714 shares, respectively) | 475,407 | 471,848 |
Accumulated other comprehensive loss | (67,386) | (72,295) |
TOTAL SHAREHOLDERS’ EQUITY | 1,295,876 | 1,149,355 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 2,522,904 | $ 2,452,588 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Noncurrent Assets: | ||
Property, less accumulated depreciation | $ 222,086 | $ 215,015 |
Shareholders’ Equity | ||
Preferred stock, shares authorized | 2,500 | |
Common stock, shares authorized | 80,000 | |
Common stock, shares issued | 54,213 | |
Treasury shares | 15,614 | 15,714 |
Condensed Statements of Conso_3
Condensed Statements of Consolidated Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Net income | $ 157,337,000 | $ 109,995,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property | 11,033,000 | 10,863,000 |
Amortization of intangibles | 15,519,000 | 16,205,000 |
Provision for losses on accounts receivable | 9,573,000 | 1,328,000 |
Amortization of stock options and appreciation rights | 1,871,000 | 2,516,000 |
Other share-based compensation expense | 4,001,000 | 3,268,000 |
Changes in operating assets and liabilities, net of acquisitions | (111,542,000) | (61,066,000) |
Other, net | 1,031,000 | (1,845,000) |
Net Cash provided by Operating Activities | 88,823,000 | 81,264,000 |
Cash Flows from Investing Activities | ||
Acquisition of businesses, net of cash acquired | (25,516,000) | (6,974,000) |
Capital expenditures | (12,817,000) | (7,510,000) |
Proceeds from property sales | 128,000 | 442,000 |
Cash payments for loans on company-owned life insurance | 0 | 14,835,000 |
Net Cash used in Investing Activities | (38,205,000) | (28,877,000) |
Cash Flows from Financing Activities | ||
Net borrowings under revolving credit facility | 0 | 442,592,000 |
Long-term debt repayments | 40,123,000 | 550,371,000 |
Interest rate swap settlement receipts (payments) | (2,684,000) | 3,294,000 |
Payment of debt issuance costs | 0 | (1,794,000) |
Purchases of treasury shares | (716,000) | (10,064,000) |
Dividends paid | (26,259,000) | (25,465,000) |
Acquisition holdback payments | 1,510,000 | 1,070,000 |
Exercise of stock appreciation rights and options | 127,000 | 116,000 |
Taxes paid for shares withheld for equity awards | (3,340,000) | (4,093,000) |
Net Cash used in Financing Activities | (69,137,000) | (153,443,000) |
Effect of Exchange Rate Changes on Cash | (417,000) | (1,846,000) |
Decrease in Cash and Cash Equivalents | (18,936,000) | (102,902,000) |
Cash and Cash Equivalents at Beginning of Period | 184,474,000 | 257,745,000 |
Cash and Cash Equivalents at End of Period | $ 165,538,000 | $ 154,843,000 |
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, 2021 | 38,516 | ||||||||||||||||||
Beginning balance at Jun. 30, 2021 | $ 10,000 | $ 177,014 | $ 1,294,413 | $ (455,789) | $ (93,092) | $ 932,546 | |||||||||||||
Net income | $ 52,969 | 52,969 | |||||||||||||||||
Other comprehensive (loss) income | (4,731) | (4,731) | |||||||||||||||||
Cash Dividends per Common Share | $ 0.33 | ||||||||||||||||||
Cash dividends | |||||||||||||||||||
Treasury Stock, Shares, Acquired | (77) | ||||||||||||||||||
Treasury Stock, Value, Acquired, Cost Method | (6,537) | (6,537) | |||||||||||||||||
Exercise of stock appreciation rights and options, shares | 3 | ||||||||||||||||||
Performance share awards, shares | 5 | ||||||||||||||||||
Restricted stock units, shares | 12 | ||||||||||||||||||
Additional Paid in Capital, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units | $ (116) | $ (222) | $ (572) | ||||||||||||||||
Exercise of stock appreciation rights and options | $ (8) | ||||||||||||||||||
Performance share awards | $ (73) | ||||||||||||||||||
Restricted stock units | $ (120) | ||||||||||||||||||
Total Shareholders' Equity, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units | $ (108) | $ (295) | $ (692) | ||||||||||||||||
Compensation expense | 1,563 | 1,907 | 1,563 | 1,907 | |||||||||||||||
Stockholders' Equity, Other Shares | (2) | ||||||||||||||||||
Other | (7) | (45) | (52) | ||||||||||||||||
Ending balance, shares at Sep. 30, 2021 | 38,457 | ||||||||||||||||||
Ending balance at Sep. 30, 2021 | $ 10,000 | 179,574 | 1,347,375 | (462,556) | (97,823) | 976,570 | |||||||||||||
Beginning balance, shares at Jun. 30, 2021 | 38,516 | ||||||||||||||||||
Beginning balance at Jun. 30, 2021 | $ 10,000 | 177,014 | 1,294,413 | (455,789) | (93,092) | 932,546 | |||||||||||||
Net income | $ 109,995 | ||||||||||||||||||
Other comprehensive (loss) income | $ 157 | 157 | |||||||||||||||||
Cash Dividends per Common Share | $ 0.33 | ||||||||||||||||||
Ending balance, shares at Dec. 31, 2021 | 38,453 | ||||||||||||||||||
Ending balance at Dec. 31, 2021 | $ 10,000 | 180,248 | 1,391,655 | (467,279) | (92,935) | 1,021,689 | |||||||||||||
Beginning balance, shares at Sep. 30, 2021 | 38,457 | ||||||||||||||||||
Beginning balance at Sep. 30, 2021 | $ 10,000 | 179,574 | 1,347,375 | (462,556) | (97,823) | 976,570 | |||||||||||||
Net income | $ 57,026 | 57,026 | |||||||||||||||||
Other comprehensive (loss) income | 4,888 | 4,888 | 4,888 | ||||||||||||||||
Cash dividends | (12,759) | (12,759) | |||||||||||||||||
Treasury Stock, Shares, Acquired | (35) | ||||||||||||||||||
Treasury Stock, Value, Acquired, Cost Method | (3,527) | (3,527) | |||||||||||||||||
Exercise of stock appreciation rights and options, shares | 35 | ||||||||||||||||||
Additional Paid in Capital, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units | (1,639) | ||||||||||||||||||
Exercise of stock appreciation rights and options | (832) | ||||||||||||||||||
Total Shareholders' Equity, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units | (2,471) | ||||||||||||||||||
Compensation expense | 1,705 | 609 | 1,705 | 609 | |||||||||||||||
Stockholders' Equity, Other Shares | (4) | ||||||||||||||||||
Other | (1) | 13 | (364) | (352) | |||||||||||||||
Ending balance, shares at Dec. 31, 2021 | 38,453 | ||||||||||||||||||
Ending balance at Dec. 31, 2021 | $ 10,000 | 180,248 | 1,391,655 | (467,279) | (92,935) | 1,021,689 | |||||||||||||
Beginning balance, shares at Jun. 30, 2022 | 38,499 | ||||||||||||||||||
Beginning balance at Jun. 30, 2022 | 1,149,355 | $ 10,000 | 183,822 | 1,499,676 | (471,848) | (72,295) | 1,149,355 | ||||||||||||
Net income | $ 76,880 | 76,880 | |||||||||||||||||
Other comprehensive (loss) income | (1,635) | (1,635) | |||||||||||||||||
Cash Dividends per Common Share | $ 0.34 | ||||||||||||||||||
Cash dividends | |||||||||||||||||||
Treasury Stock, Shares, Acquired | (8) | ||||||||||||||||||
Treasury Stock, Value, Acquired, Cost Method | (716) | (716) | |||||||||||||||||
Exercise of stock appreciation rights and options, shares | 21 | ||||||||||||||||||
Performance share awards, shares | 23 | ||||||||||||||||||
Restricted stock units, shares | 33 | ||||||||||||||||||
Additional Paid in Capital, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units | (860) | $ (1,290) | $ (1,668) | ||||||||||||||||
Exercise of stock appreciation rights and options | (366) | ||||||||||||||||||
Performance share awards | $ (758) | ||||||||||||||||||
Restricted stock units | $ (902) | ||||||||||||||||||
Total Shareholders' Equity, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units | (1,226) | $ (2,048) | $ (2,570) | ||||||||||||||||
Compensation expense | 1,939 | 1,424 | 1,939 | 1,424 | |||||||||||||||
Stockholders' Equity, Other Shares | 3 | ||||||||||||||||||
Other | (19) | (5) | 61 | 37 | |||||||||||||||
Ending balance, shares at Sep. 30, 2022 | 38,571 | ||||||||||||||||||
Ending balance at Sep. 30, 2022 | $ 10,000 | 183,348 | 1,576,551 | (474,529) | (73,930) | 1,221,440 | |||||||||||||
Beginning balance, shares at Jun. 30, 2022 | 38,499 | ||||||||||||||||||
Beginning balance at Jun. 30, 2022 | $ 1,149,355 | $ 10,000 | 183,822 | 1,499,676 | (471,848) | (72,295) | 1,149,355 | ||||||||||||
Net income | 157,337 | ||||||||||||||||||
Other comprehensive (loss) income | 4,909 | 4,909 | |||||||||||||||||
Ending balance, shares at Dec. 31, 2022 | 38,599 | ||||||||||||||||||
Ending balance at Dec. 31, 2022 | 1,295,876 | $ 10,000 | 184,795 | 1,643,874 | (475,407) | (67,386) | 1,295,876 | ||||||||||||
Beginning balance, shares at Sep. 30, 2022 | 38,571 | ||||||||||||||||||
Beginning balance at Sep. 30, 2022 | $ 10,000 | 183,348 | 1,576,551 | (474,529) | (73,930) | 1,221,440 | |||||||||||||
Net income | 80,457 | 80,457 | |||||||||||||||||
Other comprehensive (loss) income | $ 6,544 | 6,544 | 6,544 | ||||||||||||||||
Cash Dividends per Common Share | $ 0.34 | ||||||||||||||||||
Cash dividends | (13,175) | (13,175) | |||||||||||||||||
Exercise of stock appreciation rights and options, shares | 28 | ||||||||||||||||||
Additional Paid in Capital, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units | (1,061) | ||||||||||||||||||
Exercise of stock appreciation rights and options | $ (878) | ||||||||||||||||||
Total Shareholders' Equity, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units | (1,939) | ||||||||||||||||||
Compensation expense | 2,062 | $ 447 | 2,062 | $ 447 | |||||||||||||||
Stockholders' Equity, Other Shares | |||||||||||||||||||
Other | (1) | 41 | 40 | ||||||||||||||||
Ending balance, shares at Dec. 31, 2022 | 38,599 | ||||||||||||||||||
Ending balance at Dec. 31, 2022 | $ 1,295,876 | $ 10,000 | $ 184,795 | $ 1,643,874 | $ (475,407) | $ (67,386) | $ 1,295,876 |
Condensed Statements of Share_2
Condensed Statements of Shareholder's Equity Condensed Statements of Shareholders' Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Cash Dividends per Common Share | $ 0.34 | $ 0.34 | $ 0.33 | $ 0.33 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the financial position of Applied Industrial Technologies, Inc. (the “Company”, or “Applied”) as of December 31, 2022, and the results of its operations and its cash flows for the six month periods ended December 31, 2022 and 2021, have been included. The condensed consolidated balance sheet as of June 30, 2022 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, 2022. Operating results for the six month period ended December 31, 2022 are not necessarily indicative of the results that may be expected for the remainder of the fiscal year ending June 30, 2023. 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 fiscal 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. LIFO expense of $8,853 and $4,675 in the three months ended December 31, 2022 and 2021, respectively, and $17,913 and $8,246 in the six months ended December 31, 2022 and 2021, respectively, is recorded in cost of sales in the condensed statements of consolidated income. Reportable Segments The Company has two reportable segments: Service Center Based Distribution and Engineered Solutions (formerly known as Fluid Power & Flow Control). The Company changed the reportable segment name to Engineered Solutions in the first quarter of fiscal 2023. There was no change in the composition of either reportable segment. These reportable segments contain the Company's various operating segments which have been aggregated based upon similar economic and operating characteristics. The Service Center Based Distribution segment operates through local service centers and distribution centers with a focus on providing products and services addressing the maintenance and repair of motion control infrastructure and production equipment. Products primarily include industrial bearings, motors, belting, drives, couplings, pumps, linear motion products, hydraulic and pneumatic components, filtration supplies, and hoses, as well as other related supplies for general operational needs of customers’ machinery and equipment. The Engineered Solutions segment includes our operations that specialize in distributing, engineering, designing, integrating, and repairing hydraulic and pneumatic fluid power technologies, and engineered flow control products and services. This segment also includes our operations that focus on advanced automation solutions including machine vision, robotics, motion control, industrial networking, and smart technologies. Qualified Defined Benefit Retirement Plan The Company's qualified defined benefit retirement plan, which provided benefits to certain hourly employees at retirement, was frozen in April 2018. These employees did not participate in the Company's Retirement Savings Plan. The Company terminated the plan effective February 28, 2022. Participants elected to receive benefits as either a lump sum payment or through an annuity contract and the settlement of $8,895 was paid from plan assets in the second quarter of fiscal 2023. As a result of the plan termination, the Company recognized a loss of $1,184 in the three months ended December 31, 2022, which is recorded in other expense (income), net in the condensed statements of consolidated income. The Company has determined that activity related to the qualified defined benefit retirement plan is not material to the consolidated financial statements. |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition | 6 Months Ended |
Dec. 31, 2022 | |
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 six months ended December 31, 2022 and 2021. Other countries consist of Mexico, Australia, New Zealand, and Singapore. Three Months Ended December 31, 2022 2021 Service Center Based Distribution Engineered Solutions Total Service Center Based Distribution Engineered Solutions Total Geographic Areas: United States $ 581,452 $ 347,745 $ 929,197 $ 474,412 $ 282,355 $ 756,767 Canada 74,702 — 74,702 66,263 — 66,263 Other countries 49,238 7,143 56,381 46,543 7,301 53,844 Total $ 705,392 $ 354,888 $ 1,060,280 $ 587,218 $ 289,656 $ 876,874 Six Months Ended December 31, 2022 2021 Service Center Based Distribution Engineered Solutions Total Service Center Based Distribution Engineered Solutions Total Geographic Areas: United States $ 1,166,332 $ 684,354 $ 1,850,686 $ 953,576 $ 567,399 $ 1,520,975 Canada 154,472 — 154,472 140,829 — 140,829 Other countries 102,576 14,951 117,527 93,684 13,067 106,751 Total $ 1,423,380 $ 699,305 $ 2,122,685 $ 1,188,089 $ 580,466 $ 1,768,555 The following tables present the Company’s percentage of revenue by reportable segment and major customer industry for the three and six months ended December 31, 2022 and 2021: Three Months Ended December 31, 2022 2021 Service Center Based Distribution Engineered Solutions Total Service Center Based Distribution Engineered Solutions Total General Industry 33.4 % 42.3 % 36.3 % 35.1 % 40.9 % 36.9 % Industrial Machinery 10.3 % 27.4 % 16.0 % 10.5 % 29.0 % 16.6 % Metals 10.6 % 7.4 % 9.5 % 11.1 % 7.1 % 9.8 % Food 13.1 % 2.2 % 9.4 % 12.6 % 2.2 % 9.2 % Forest Products 11.9 % 2.4 % 8.8 % 10.7 % 2.1 % 7.9 % Chem/Petrochem 3.0 % 12.9 % 6.4 % 3.1 % 13.8 % 6.6 % Cement & Aggregate 7.9 % 1.3 % 5.7 % 7.1 % 0.9 % 5.1 % Oil & Gas 6.3 % 1.2 % 4.6 % 5.4 % 1.2 % 4.0 % Transportation 3.5 % 2.9 % 3.3 % 4.4 % 2.8 % 3.9 % Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % Six Months Ended December 31, 2022 2021 Service Center Based Distribution Engineered Solutions Total Service Center Based Distribution Engineered Solutions Total General Industry 33.7 % 41.0 % 36.1 % 34.8 % 39.9 % 36.6 % Industrial Machinery 10.2 % 27.3 % 15.8 % 10.4 % 29.0 % 16.5 % Metals 10.7 % 7.6 % 9.7 % 11.1 % 7.2 % 9.8 % Food 12.9 % 2.5 % 9.5 % 12.6 % 2.4 % 9.2 % Forest Products 11.9 % 2.5 % 8.8 % 10.5 % 2.3 % 7.8 % Chem/Petrochem 2.9 % 13.4 % 6.3 % 3.3 % 13.8 % 6.7 % Cement & Aggregate 7.8 % 1.4 % 5.7 % 7.8 % 1.0 % 5.6 % Oil & Gas 6.3 % 1.3 % 4.7 % 5.3 % 1.2 % 3.9 % Transportation 3.6 % 3.0 % 3.4 % 4.2 % 3.2 % 3.9 % 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 six months ended December 31, 2022 and 2021: Three Months Ended December 31, 2022 2021 Service Center Based Distribution Engineered Solutions Total Service Center Based Distribution Engineered Solutions Total Power Transmission 37.5 % 10.1 % 28.4 % 36.6 % 10.4 % 27.9 % General Maintenance: Hose Products & Other 21.0 % 23.6 % 21.8 % 21.5 % 19.9 % 21.0 % Fluid Power 13.3 % 34.8 % 20.5 % 13.0 % 37.4 % 21.1 % Bearings, Linear & Seals 28.2 % 0.5 % 18.9 % 28.9 % 0.5 % 19.5 % Specialty Flow Control — % 31.0 % 10.4 % — % 31.8 % 10.5 % Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % Six Months Ended December 31, 2022 2021 Service Center Based Distribution Engineered Solutions Total Service Center Based Distribution Engineered Solutions Total Power Transmission 37.5 % 10.1 % 28.5 % 37.1 % 10.2 % 28.3 % General Maintenance; Hose Products & Other 21.2 % 19.6 % 20.6 % 21.1 % 19.4 % 20.5 % Fluid Power 13.1 % 35.1 % 20.4 % 12.9 % 37.5 % 21.0 % Bearings, Linear & Seals 28.2 % 0.4 % 19.0 % 28.9 % 0.5 % 19.6 % Specialty Flow Control — % 34.8 % 11.5 % — % 32.4 % 10.6 % 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: December 31, 2022 June 30, 2022 $ Change % Change Contract assets $ 15,586 $ 18,050 $ (2,464) (13.7) % 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 | 6 Months Ended |
Dec. 31, 2022 | |
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 2023 Acquisitions On November 1, 2022, the Company acquired substantially all of the net assets of Automation, Inc., a Minneapolis, Minnesota based provider of automation products, services, and engineered solutions focused on machine vision, collaborative and mobile robotics, motion control, intelligent sensors, pneumatics, and other related products and solutions. Automation, Inc. is included in the Engineered Solutions segment. The purchase price for the acquisition was $25,516, net tangible assets acquired were $3,801, and intangible assets including goodwill were $21,715 based upon preliminary estimated fair values at the acquisition date, which are subject to adjustment. 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 2022 Acquisitions On August 18, 2021, the Company acquired substantially all of the net assets of R.R. Floody Company (Floody), a Rockford, Illinois based provider of high technology solutions for advanced factory automation. Floody is included in the Engineered Solutions segment. The purchase price for the acquisition was $8,038, net tangible assets acquired were $1,040, and intangible assets including goodwill were $6,998 based upon estimated fair values at the acquisition date. The purchase price includes $1,000 of acquisition holdback payments, of which $500 was paid during the six months ended December 31, 2022. The remaining balance of $500 is included in other current liabilities on the condensed consolidated balance sheet as of December 31, 2022, and will be paid on the second anniversary 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. |
Goodwill and Intangibles
Goodwill and Intangibles | 6 Months Ended |
Dec. 31, 2022 | |
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 Engineered Solutions segment for the fiscal year ended June 30, 2022 and the six month period ended December 31, 2022 are as follows: Service Center Based Distribution Engineered Solutions Total Balance at June 30, 2021 $ 212,296 $ 347,781 $ 560,077 Goodwill acquired during the period — 3,984 3,984 Other, primarily currency translation (1,286) 430 (856) Balance at June 30, 2022 $ 211,010 $ 352,195 $ 563,205 Goodwill acquired during the period — 9,955 9,955 Other, primarily currency translation (1,258) 417 (841) Balance at December 31, 2022 $ 209,752 $ 362,567 $ 572,319 The Company has eight (8) reporting units for which an annual goodwill impairment assessment was performed as of January 1, 2022. The Company concluded that all of the the reporting units’ fair values exceeded their carrying amounts by at least 25% as of January 1, 2022. At December 31, 2022 and June 30, 2022, accumulated goodwill impairment losses subsequent to fiscal year 2002 totaled $64,794 related to the Service Center Based Distribution segment and $167,605 related to the Engineered Solutions segment. The Company’s identifiable intangible assets resulting from business combinations are amortized over their estimated period of benefit and consist of the following: December 31, 2022 Amount Accumulated Net Book Finite-Lived Identifiable Intangibles: Customer relationships $ 361,770 $ 177,401 $ 184,369 Trade names 108,033 48,211 59,822 Vendor relationships 9,861 9,416 445 Other 3,021 918 2,103 Total Identifiable Intangibles $ 482,685 $ 235,946 $ 246,739 June 30, 2022 Amount Accumulated Net Book Finite-Lived Identifiable Intangibles: Customer relationships $ 353,836 $ 166,623 $ 187,213 Trade names 105,629 44,637 60,992 Vendor relationships 11,320 10,533 787 Other 2,321 723 1,598 Total Identifiable Intangibles $ 473,106 $ 222,516 $ 250,590 Fully amortized amounts are written off. During the six month period ended December 31, 2022, 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 $ 8,700 20.0 Trade names 2,360 15.0 Other 700 6.7 Total Identifiable Intangibles $ 11,760 18.2 Identifiable intangible assets with finite lives are reviewed for impairment when changes in conditions indicate carrying value may not be recoverable. Estimated future amortization expense by fiscal year (based on the Company’s identifiable intangible assets as of December 31, 2022) for the next five years is as follows: $15,200 for the remainder of 2023, $27,300 for 2024, $25,100 for 2025, $23,300 for 2026, $21,500 for 2027 and $20,000 for 2028. |
Debt
Debt | 6 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | DEBT A summary of long-term debt, including the current portion, follows: December 31, 2022 June 30, 2022 Revolving credit facility $ 410,592 410,592 Trade receivable securitization facility 188,300 188,300 Series C notes — 40,000 Series D notes 25,000 25,000 Series E notes 25,000 25,000 Other 480 603 Total debt $ 649,372 $ 689,495 Less: unamortized debt issuance costs 131 171 $ 649,241 $ 689,324 Revolving Credit Facility & Term Loan In December 2021, the Company entered into a revolving credit facility with a group of banks to refinance the existing credit facility as well as provide funds for ongoing working capital and other general corporate purposes. This agreement provides a $900,000 unsecured revolving credit facility and an uncommitted accordion feature which allows the Company to request an increase in the borrowing commitments, or incremental term loans, under the credit facility in aggregate principal amounts of up to $500,000. Borrowings under this agreement bear interest, at the Company's election, at either the base rate plus a margin that ranges from 0 to 55 basis points based on net leverage ratio or LIBOR plus a margin that ranges from 80 to 155 basis points based on the net leverage ratio. Unused lines under this facility, net of outstanding letters of credit of $200 to secure certain insurance obligations, totaled $489,208 at December 31, 2022 and June 30, 2022, and were available to fund future acquisitions or other capital and operating requirements. The interest rate on the revolving credit facility was 5.35% and 2.81% as of December 31, 2022 and June 30, 2022, respectively. Additionally, the Company had letters of credit outstanding with separate banks, not associated with the revolving credit agreement, in the amount of $4,046 and $4,735 as of December 31, 2022 and June 30, 2022, 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”). On March 26, 2021, the Company amended the AR Securitization Facility to expand the eligible receivables, which increased the maximum availability to $250,000 and increased the fees on the AR Securitization Facility to 0.98% per year. 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 $250,000 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 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. The interest rate on the AR Securitization Facility as of December 31, 2022 and June 30, 2022 was 5.36% and 2.60%, respectively. The termination date of the AR Securitization Facility is March 26, 2024. Unsecured Shelf Facility At December 31, 2022 and June 30, 2022, the Company had borrowings outstanding under its unsecured shelf facility agreement with Prudential Investment Management of $50,000 and $90,000, respectively. 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 carried a fixed interest rate of 3.19%, and the remaining principal balance of $40,000 was paid in July 2022. The "Series D" notes have a remaining principal amount of $25,000, carry a fixed interest rate of 3.21%, and are due in October 2023. The “Series E” notes have a principal amount of $25,000, carry a fixed interest rate of 3.08%, and are due in October 2024. |
Derivatives Derivatives
Derivatives Derivatives | 6 Months Ended |
Dec. 31, 2022 | |
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 these objectives, 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, net 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 notional amount declines over time. 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. During the quarter ended December 31, 2020, the Company completed a transaction to amend and extend the interest rate swap agreement which resulted in an extension of the maturity date by an additional three years and a decrease of the weighted average fixed pay rate from 2.61% to 1.63%. The pay-fixed interest rate swap is considered a hybrid instrument with a financing component and an embedded at-market derivative that was designated as a cash flow hedge. The interest rate swap converted $384,000 of variable rate debt to a rate of 2.54% as of December 31, 2022. The interest rate swap converted $409,000 of variable rate debt to a rate of 2.75% as of June 30, 2022. The fair value (Level 2 in the fair value hierarchy) of the interest rate cash flow hedge was $27,975 and $17,827 as of December 31, 2022 and June 30, 2022, respectively, which is included in other current assets and other assets in the condensed consolidated balance sheet. Amounts reclassified from other comprehensive income, before tax to interest expense, net totaled $(715) and $2,585 for the three months ended December 31, 2022 and 2021, respectively, and $81 and $5,170 for the six months ended December 31, 2022 and 2021, respectively. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Marketable securities measured at fair value at December 31, 2022 and June 30, 2022 totaled $16,751 and $15,317, 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 December 31, 2022 and June 30, 2022, 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 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 | 6 Months Ended |
Dec. 31, 2022 | |
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 December 31, 2022 Foreign currency translation adjustment Post-employment benefits Cash flow hedge Total Accumulated other comprehensive (loss) income Balance at September 30, 2022 $ (102,259) $ (1,297) $ 29,626 $ (73,930) Other comprehensive income 5,885 777 414 7,076 Amounts reclassified from accumulated other comprehensive (loss) income — 7 (539) (532) Net current-period other comprehensive income (loss) 5,885 784 (125) 6,544 Balance at December 31, 2022 $ (96,374) $ (513) $ 29,501 $ (67,386) Three Months Ended December 31, 2021 Foreign currency translation adjustment Post-employment benefits Cash flow hedge Total Accumulated other comprehensive (loss) income Balance at September 30, 2021 $ (88,026) $ (3,616) $ (6,181) $ (97,823) Other comprehensive (loss) income (791) — 3,672 2,881 Amounts reclassified from accumulated other comprehensive (loss) income — 57 1,950 2,007 Net current-period other comprehensive (loss) income (791) 57 5,622 4,888 Balance at December 31, 2021 $ (88,817) $ (3,559) $ (559) $ (92,935) Six Months Ended December 31, 2022 Foreign currency translation adjustment Post-employment benefits Cash flow hedge Total Accumulated other comprehensive (loss) income Balance at June 30, 2022 $ (90,738) $ (1,303) $ 19,746 $ (72,295) Other comprehensive (loss) income (5,636) 777 9,694 4,835 Amounts reclassified from accumulated other comprehensive (loss) income — 13 61 74 Net current-period other comprehensive (loss) income (5,636) 790 9,755 4,909 Balance at December 31, 2022 $ (96,374) $ (513) $ 29,501 $ (67,386) Six Months Ended December 31, 2021 Foreign currency translation adjustment Post-employment benefits Cash flow hedge Total Accumulated other comprehensive (loss) income Balance at June 30, 2021 $ (80,838) $ (3,673) $ (8,581) $ (93,092) Other comprehensive (loss) income (7,979) — 4,122 (3,857) Amounts reclassified from accumulated other comprehensive (loss) income — 114 3,900 4,014 Net current-period other comprehensive (loss) income (7,979) 114 8,022 157 Balance at December 31, 2021 $ (88,817) $ (3,559) $ (559) $ (92,935) Other Comprehensive Income Details of other comprehensive income are as follows: Three Months Ended December 31, 2022 2021 Pre-Tax Amount Tax Expense (Benefit) Net Amount Pre-Tax Amount Tax Expense Net Amount Foreign currency translation adjustments $ 5,929 $ 44 $ 5,885 $ (783) $ 8 $ (791) Post-employment benefits: Reclassification of net actuarial losses and prior service cost into other expense (income), net and included in net periodic pension costs 10 3 7 75 18 57 Termination of pension plan 1,031 254 777 — — — Unrealized gain on cash flow hedge 548 134 414 4,867 1,195 3,672 Reclassification of interest from cash flow hedge into interest expense, net (715) (176) (539) 2,585 635 1,950 Other comprehensive income $ 6,803 $ 259 $ 6,544 $ 6,744 $ 1,856 $ 4,888 Six Months Ended December 31, 2022 2021 Pre-Tax Amount Tax Expense Net Amount Pre-Tax Amount Tax Expense Net Amount Foreign currency translation adjustments $ (5,508) $ 128 $ (5,636) $ (7,965) $ 14 $ (7,979) Post-employment benefits: Reclassification of net actuarial losses and prior service cost into other expense (income), net and included in net periodic pension costs 18 5 13 150 36 114 Termination of pension plan 1,031 254 777 — — — Unrealized gain on cash flow hedge 12,858 3,164 9,694 5,463 1,341 4,122 Reclassification of interest from cash flow hedge into interest expense, net 81 20 61 5,170 1,270 3,900 Other comprehensive income $ 8,480 $ 3,571 $ 4,909 $ 2,818 $ 2,661 $ 157 Anti-dilutive Common Stock Equivalents In the three month periods ended December 31, 2022 and 2021, stock options and stock appreciation rights related to 82 and 78 shares of common stock, respectively, were not included in the computation of diluted earnings per share for the period then ended as they were anti-dilutive. In the six month periods ended December 31, 2022 and 2021, stock |
Segment Information
Segment Information | 6 Months Ended |
Dec. 31, 2022 | |
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 $8,853 and $4,675 in the three months ended December 31, 2022 and 2021, respectively, and $17,913 and $8,246 in the six months ended December 31, 2022 and 2021, respectively, is recorded in cost of sales in the condensed statements of consolidated income, and is included in operating income for the related reportable segment, as the Company allocates LIFO expense between the segments. Intercompany sales, primarily from the Engineered Solutions segment to the Service Center Based Distribution segment, of $11,695 and $8,859, in the three months ended December 31, 2022 and 2021, respectively, and $22,213 and $16,991 in the six months ended December 31, 2022 and 2021 respectively, have been eliminated in the Segment Financial Information tables below. Three Months Ended Service Center Based Distribution Engineered Solutions Total December 31, 2022 Net sales $ 705,392 $ 354,888 $ 1,060,280 Operating income for reportable segments 86,484 51,626 138,110 Depreciation and amortization of property 4,474 1,078 5,552 Capital expenditures 4,751 2,512 7,263 December 31, 2021 Net sales $ 587,218 $ 289,656 $ 876,874 Operating income for reportable segments 67,450 36,426 103,876 Depreciation and amortization of property 4,371 1,065 5,436 Capital expenditures 3,039 850 3,889 Six Months Ended Service Center Based Distribution Engineered Solutions Total December 31, 2022 Net sales $ 1,423,380 $ 699,305 $ 2,122,685 Operating income for reportable segments 175,293 97,160 272,453 Assets used in business 1,454,040 1,068,864 2,522,904 Depreciation and amortization of property 8,923 2,110 11,033 Capital expenditures 8,316 4,501 12,817 December 31, 2021 Net sales $ 1,188,089 $ 580,466 $ 1,768,555 Operating income for reportable segments 132,103 71,231 203,334 Assets used in business 1,265,567 960,142 2,225,709 Depreciation and amortization of property 8,750 2,113 10,863 Capital expenditures 6,136 1,374 7,510 A reconciliation of operating income for reportable segments to the condensed consolidated income before income taxes is as follows: Three Months Ended Six Months Ended December 31, December 31, 2022 2021 2022 2021 Operating income for reportable segments $ 138,110 $ 103,876 $ 272,453 $ 203,334 Adjustment for: Intangible amortization—Service Center Based Distribution 730 881 1,488 1,773 Intangible amortization—Engineered Solutions 7,084 7,203 14,031 14,432 Corporate and other expense, net 17,403 17,615 37,509 34,338 Total operating income 112,893 78,177 219,425 152,791 Interest expense, net 6,185 7,007 12,665 14,397 Other expense (income), net 758 (869) 1,766 (1,181) Income before income taxes $ 105,950 $ 72,039 $ 204,994 $ 139,575 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 | 6 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
OTHER EXPENSE (INCOME), NET | OTHER EXPENSE (INCOME), NET Other expense (income), net consists of the following: Three Months Ended Six Months Ended December 31, December 31, 2022 2021 2022 2021 Unrealized gain on assets held in rabbi trust for a non-qualified deferred compensation plan $ (1,065) $ (1,031) $ (238) $ (940) Foreign currency transactions loss (gain) 700 217 928 (350) Net other periodic post-employment costs 1,176 153 1,319 305 Life insurance income, net (104) (113) (215) (154) Other, net 51 (95) (28) (42) Total other expense (income), net $ 758 $ (869) $ 1,766 $ (1,181) |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Dec. 31, 2022 | |
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 fiscal 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. LIFO expense of $8,853 and $4,675 in the three months ended December 31, 2022 and 2021, respectively, and $17,913 and $8,246 in the six months ended December 31, 2022 and 2021, respectively, is recorded in cost of sales in the condensed statements of consolidated income. |
Revenue Recognition Revenue R_2
Revenue Recognition Revenue Recognition (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
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 six months ended December 31, 2022 and 2021. Other countries consist of Mexico, Australia, New Zealand, and Singapore. Three Months Ended December 31, 2022 2021 Service Center Based Distribution Engineered Solutions Total Service Center Based Distribution Engineered Solutions Total Geographic Areas: United States $ 581,452 $ 347,745 $ 929,197 $ 474,412 $ 282,355 $ 756,767 Canada 74,702 — 74,702 66,263 — 66,263 Other countries 49,238 7,143 56,381 46,543 7,301 53,844 Total $ 705,392 $ 354,888 $ 1,060,280 $ 587,218 $ 289,656 $ 876,874 Six Months Ended December 31, 2022 2021 Service Center Based Distribution Engineered Solutions Total Service Center Based Distribution Engineered Solutions Total Geographic Areas: United States $ 1,166,332 $ 684,354 $ 1,850,686 $ 953,576 $ 567,399 $ 1,520,975 Canada 154,472 — 154,472 140,829 — 140,829 Other countries 102,576 14,951 117,527 93,684 13,067 106,751 Total $ 1,423,380 $ 699,305 $ 2,122,685 $ 1,188,089 $ 580,466 $ 1,768,555 |
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 six months ended December 31, 2022 and 2021: Three Months Ended December 31, 2022 2021 Service Center Based Distribution Engineered Solutions Total Service Center Based Distribution Engineered Solutions Total General Industry 33.4 % 42.3 % 36.3 % 35.1 % 40.9 % 36.9 % Industrial Machinery 10.3 % 27.4 % 16.0 % 10.5 % 29.0 % 16.6 % Metals 10.6 % 7.4 % 9.5 % 11.1 % 7.1 % 9.8 % Food 13.1 % 2.2 % 9.4 % 12.6 % 2.2 % 9.2 % Forest Products 11.9 % 2.4 % 8.8 % 10.7 % 2.1 % 7.9 % Chem/Petrochem 3.0 % 12.9 % 6.4 % 3.1 % 13.8 % 6.6 % Cement & Aggregate 7.9 % 1.3 % 5.7 % 7.1 % 0.9 % 5.1 % Oil & Gas 6.3 % 1.2 % 4.6 % 5.4 % 1.2 % 4.0 % Transportation 3.5 % 2.9 % 3.3 % 4.4 % 2.8 % 3.9 % Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % Six Months Ended December 31, 2022 2021 Service Center Based Distribution Engineered Solutions Total Service Center Based Distribution Engineered Solutions Total General Industry 33.7 % 41.0 % 36.1 % 34.8 % 39.9 % 36.6 % Industrial Machinery 10.2 % 27.3 % 15.8 % 10.4 % 29.0 % 16.5 % Metals 10.7 % 7.6 % 9.7 % 11.1 % 7.2 % 9.8 % Food 12.9 % 2.5 % 9.5 % 12.6 % 2.4 % 9.2 % Forest Products 11.9 % 2.5 % 8.8 % 10.5 % 2.3 % 7.8 % Chem/Petrochem 2.9 % 13.4 % 6.3 % 3.3 % 13.8 % 6.7 % Cement & Aggregate 7.8 % 1.4 % 5.7 % 7.8 % 1.0 % 5.6 % Oil & Gas 6.3 % 1.3 % 4.7 % 5.3 % 1.2 % 3.9 % Transportation 3.6 % 3.0 % 3.4 % 4.2 % 3.2 % 3.9 % 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 six months ended December 31, 2022 and 2021: Three Months Ended December 31, 2022 2021 Service Center Based Distribution Engineered Solutions Total Service Center Based Distribution Engineered Solutions Total Power Transmission 37.5 % 10.1 % 28.4 % 36.6 % 10.4 % 27.9 % General Maintenance: Hose Products & Other 21.0 % 23.6 % 21.8 % 21.5 % 19.9 % 21.0 % Fluid Power 13.3 % 34.8 % 20.5 % 13.0 % 37.4 % 21.1 % Bearings, Linear & Seals 28.2 % 0.5 % 18.9 % 28.9 % 0.5 % 19.5 % Specialty Flow Control — % 31.0 % 10.4 % — % 31.8 % 10.5 % Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % Six Months Ended December 31, 2022 2021 Service Center Based Distribution Engineered Solutions Total Service Center Based Distribution Engineered Solutions Total Power Transmission 37.5 % 10.1 % 28.5 % 37.1 % 10.2 % 28.3 % General Maintenance; Hose Products & Other 21.2 % 19.6 % 20.6 % 21.1 % 19.4 % 20.5 % Fluid Power 13.1 % 35.1 % 20.4 % 12.9 % 37.5 % 21.0 % Bearings, Linear & Seals 28.2 % 0.4 % 19.0 % 28.9 % 0.5 % 19.6 % Specialty Flow Control — % 34.8 % 11.5 % — % 32.4 % 10.6 % 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: December 31, 2022 June 30, 2022 $ Change % Change Contract assets $ 15,586 $ 18,050 $ (2,464) (13.7) % 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) | 6 Months Ended |
Dec. 31, 2022 | |
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 Engineered Solutions segment for the fiscal year ended June 30, 2022 and the six month period ended December 31, 2022 are as follows: Service Center Based Distribution Engineered Solutions Total Balance at June 30, 2021 $ 212,296 $ 347,781 $ 560,077 Goodwill acquired during the period — 3,984 3,984 Other, primarily currency translation (1,286) 430 (856) Balance at June 30, 2022 $ 211,010 $ 352,195 $ 563,205 Goodwill acquired during the period — 9,955 9,955 Other, primarily currency translation (1,258) 417 (841) Balance at December 31, 2022 $ 209,752 $ 362,567 $ 572,319 |
Schedule of Intangible Assets | The Company’s identifiable intangible assets resulting from business combinations are amortized over their estimated period of benefit and consist of the following: December 31, 2022 Amount Accumulated Net Book Finite-Lived Identifiable Intangibles: Customer relationships $ 361,770 $ 177,401 $ 184,369 Trade names 108,033 48,211 59,822 Vendor relationships 9,861 9,416 445 Other 3,021 918 2,103 Total Identifiable Intangibles $ 482,685 $ 235,946 $ 246,739 June 30, 2022 Amount Accumulated Net Book Finite-Lived Identifiable Intangibles: Customer relationships $ 353,836 $ 166,623 $ 187,213 Trade names 105,629 44,637 60,992 Vendor relationships 11,320 10,533 787 Other 2,321 723 1,598 Total Identifiable Intangibles $ 473,106 $ 222,516 $ 250,590 Fully amortized amounts are written off. |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | During the six month period ended December 31, 2022, 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 $ 8,700 20.0 Trade names 2,360 15.0 Other 700 6.7 Total Identifiable Intangibles $ 11,760 18.2 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | A summary of long-term debt, including the current portion, follows: December 31, 2022 June 30, 2022 Revolving credit facility $ 410,592 410,592 Trade receivable securitization facility 188,300 188,300 Series C notes — 40,000 Series D notes 25,000 25,000 Series E notes 25,000 25,000 Other 480 603 Total debt $ 649,372 $ 689,495 Less: unamortized debt issuance costs 131 171 $ 649,241 $ 689,324 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
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 December 31, 2022 Foreign currency translation adjustment Post-employment benefits Cash flow hedge Total Accumulated other comprehensive (loss) income Balance at September 30, 2022 $ (102,259) $ (1,297) $ 29,626 $ (73,930) Other comprehensive income 5,885 777 414 7,076 Amounts reclassified from accumulated other comprehensive (loss) income — 7 (539) (532) Net current-period other comprehensive income (loss) 5,885 784 (125) 6,544 Balance at December 31, 2022 $ (96,374) $ (513) $ 29,501 $ (67,386) Three Months Ended December 31, 2021 Foreign currency translation adjustment Post-employment benefits Cash flow hedge Total Accumulated other comprehensive (loss) income Balance at September 30, 2021 $ (88,026) $ (3,616) $ (6,181) $ (97,823) Other comprehensive (loss) income (791) — 3,672 2,881 Amounts reclassified from accumulated other comprehensive (loss) income — 57 1,950 2,007 Net current-period other comprehensive (loss) income (791) 57 5,622 4,888 Balance at December 31, 2021 $ (88,817) $ (3,559) $ (559) $ (92,935) Six Months Ended December 31, 2022 Foreign currency translation adjustment Post-employment benefits Cash flow hedge Total Accumulated other comprehensive (loss) income Balance at June 30, 2022 $ (90,738) $ (1,303) $ 19,746 $ (72,295) Other comprehensive (loss) income (5,636) 777 9,694 4,835 Amounts reclassified from accumulated other comprehensive (loss) income — 13 61 74 Net current-period other comprehensive (loss) income (5,636) 790 9,755 4,909 Balance at December 31, 2022 $ (96,374) $ (513) $ 29,501 $ (67,386) Six Months Ended December 31, 2021 Foreign currency translation adjustment Post-employment benefits Cash flow hedge Total Accumulated other comprehensive (loss) income Balance at June 30, 2021 $ (80,838) $ (3,673) $ (8,581) $ (93,092) Other comprehensive (loss) income (7,979) — 4,122 (3,857) Amounts reclassified from accumulated other comprehensive (loss) income — 114 3,900 4,014 Net current-period other comprehensive (loss) income (7,979) 114 8,022 157 Balance at December 31, 2021 $ (88,817) $ (3,559) $ (559) $ (92,935) |
Schedule of Comprehensive Income (Loss) [Table Text Block] | Other Comprehensive Income Details of other comprehensive income are as follows: Three Months Ended December 31, 2022 2021 Pre-Tax Amount Tax Expense (Benefit) Net Amount Pre-Tax Amount Tax Expense Net Amount Foreign currency translation adjustments $ 5,929 $ 44 $ 5,885 $ (783) $ 8 $ (791) Post-employment benefits: Reclassification of net actuarial losses and prior service cost into other expense (income), net and included in net periodic pension costs 10 3 7 75 18 57 Termination of pension plan 1,031 254 777 — — — Unrealized gain on cash flow hedge 548 134 414 4,867 1,195 3,672 Reclassification of interest from cash flow hedge into interest expense, net (715) (176) (539) 2,585 635 1,950 Other comprehensive income $ 6,803 $ 259 $ 6,544 $ 6,744 $ 1,856 $ 4,888 Six Months Ended December 31, 2022 2021 Pre-Tax Amount Tax Expense Net Amount Pre-Tax Amount Tax Expense Net Amount Foreign currency translation adjustments $ (5,508) $ 128 $ (5,636) $ (7,965) $ 14 $ (7,979) Post-employment benefits: Reclassification of net actuarial losses and prior service cost into other expense (income), net and included in net periodic pension costs 18 5 13 150 36 114 Termination of pension plan 1,031 254 777 — — — Unrealized gain on cash flow hedge 12,858 3,164 9,694 5,463 1,341 4,122 Reclassification of interest from cash flow hedge into interest expense, net 81 20 61 5,170 1,270 3,900 Other comprehensive income $ 8,480 $ 3,571 $ 4,909 $ 2,818 $ 2,661 $ 157 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment financial information | Three Months Ended Service Center Based Distribution Engineered Solutions Total December 31, 2022 Net sales $ 705,392 $ 354,888 $ 1,060,280 Operating income for reportable segments 86,484 51,626 138,110 Depreciation and amortization of property 4,474 1,078 5,552 Capital expenditures 4,751 2,512 7,263 December 31, 2021 Net sales $ 587,218 $ 289,656 $ 876,874 Operating income for reportable segments 67,450 36,426 103,876 Depreciation and amortization of property 4,371 1,065 5,436 Capital expenditures 3,039 850 3,889 Six Months Ended Service Center Based Distribution Engineered Solutions Total December 31, 2022 Net sales $ 1,423,380 $ 699,305 $ 2,122,685 Operating income for reportable segments 175,293 97,160 272,453 Assets used in business 1,454,040 1,068,864 2,522,904 Depreciation and amortization of property 8,923 2,110 11,033 Capital expenditures 8,316 4,501 12,817 December 31, 2021 Net sales $ 1,188,089 $ 580,466 $ 1,768,555 Operating income for reportable segments 132,103 71,231 203,334 Assets used in business 1,265,567 960,142 2,225,709 Depreciation and amortization of property 8,750 2,113 10,863 Capital expenditures 6,136 1,374 7,510 |
Reconciliation of operating income for reportable segments to the consolidated income before income taxes | A reconciliation of operating income for reportable segments to the condensed consolidated income before income taxes is as follows: Three Months Ended Six Months Ended December 31, December 31, 2022 2021 2022 2021 Operating income for reportable segments $ 138,110 $ 103,876 $ 272,453 $ 203,334 Adjustment for: Intangible amortization—Service Center Based Distribution 730 881 1,488 1,773 Intangible amortization—Engineered Solutions 7,084 7,203 14,031 14,432 Corporate and other expense, net 17,403 17,615 37,509 34,338 Total operating income 112,893 78,177 219,425 152,791 Interest expense, net 6,185 7,007 12,665 14,397 Other expense (income), net 758 (869) 1,766 (1,181) Income before income taxes $ 105,950 $ 72,039 $ 204,994 $ 139,575 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other expense (income), net | Other expense (income), net consists of the following: Three Months Ended Six Months Ended December 31, December 31, 2022 2021 2022 2021 Unrealized gain on assets held in rabbi trust for a non-qualified deferred compensation plan $ (1,065) $ (1,031) $ (238) $ (940) Foreign currency transactions loss (gain) 700 217 928 (350) Net other periodic post-employment costs 1,176 153 1,319 305 Life insurance income, net (104) (113) (215) (154) Other, net 51 (95) (28) (42) Total other expense (income), net $ 758 $ (869) $ 1,766 $ (1,181) |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Inventory, LIFO Reserve, Period Charge | $ 8,853 | $ 4,675 | $ 17,913 | $ 8,246 |
Defined Benefit Plan, Plan Assets, Payment for Settlement | 8,895 | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ 1,184 |
Revenue Recognition Revenue R_3
Revenue Recognition Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 1,060,280 | $ 876,874 | $ 2,122,685 | $ 1,768,555 |
UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 929,197 | 756,767 | 1,850,686 | 1,520,975 |
CANADA | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 74,702 | 66,263 | 154,472 | 140,829 |
Other Countries [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 56,381 | 53,844 | 117,527 | 106,751 |
Service Center Based Distribution Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 705,392 | 587,218 | 1,423,380 | 1,188,089 |
Service Center Based Distribution Segment [Member] | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 581,452 | 474,412 | 1,166,332 | 953,576 |
Service Center Based Distribution Segment [Member] | CANADA | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 74,702 | 66,263 | 154,472 | 140,829 |
Service Center Based Distribution Segment [Member] | Other Countries [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 49,238 | 46,543 | 102,576 | 93,684 |
Engineered Solutions Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 354,888 | 289,656 | 699,305 | 580,466 |
Engineered Solutions Segment [Member] | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 347,745 | 282,355 | 684,354 | 567,399 |
Engineered Solutions Segment [Member] | CANADA | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Engineered Solutions Segment [Member] | Other Countries [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 7,143 | $ 7,301 | $ 14,951 | $ 13,067 |
Revenue Recognition Revenue R_4
Revenue Recognition Revenue Recognition (Details 1) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
General Industry [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 36.30% | 36.90% | 36.10% | 36.60% |
Industrial Machinery [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 16% | 16.60% | 15.80% | 16.50% |
Metals [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 9.50% | 9.80% | 9.70% | 9.80% |
Food [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 9.40% | 9.20% | 9.50% | 9.20% |
Forest Products [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 8.80% | 7.90% | 8.80% | 7.80% |
Chem/Petrochem [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 6.40% | 6.60% | 6.30% | 6.70% |
Cement & Aggregate [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 5.70% | 5.10% | 5.70% | 5.60% |
Oil & Gas [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 4.60% | 4% | 4.70% | 3.90% |
Transportation [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 3.30% | 3.90% | 3.40% | 3.90% |
Total | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 100% | 100% | 100% | 100% |
Service Center Based Distribution Segment [Member] | General Industry [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 33.40% | 35.10% | 33.70% | 34.80% |
Service Center Based Distribution Segment [Member] | Industrial Machinery [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 10.30% | 10.50% | 10.20% | 10.40% |
Service Center Based Distribution Segment [Member] | Metals [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 10.60% | 11.10% | 10.70% | 11.10% |
Service Center Based Distribution Segment [Member] | Food [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 13.10% | 12.60% | 12.90% | 12.60% |
Service Center Based Distribution Segment [Member] | Forest Products [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 11.90% | 10.70% | 11.90% | 10.50% |
Service Center Based Distribution Segment [Member] | Chem/Petrochem [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 3% | 3.10% | 2.90% | 3.30% |
Service Center Based Distribution Segment [Member] | Cement & Aggregate [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 7.90% | 7.10% | 7.80% | 7.80% |
Service Center Based Distribution Segment [Member] | Oil & Gas [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 6.30% | 5.40% | 6.30% | 5.30% |
Service Center Based Distribution Segment [Member] | Transportation [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 3.50% | 4.40% | 3.60% | 4.20% |
Service Center Based Distribution Segment [Member] | Total | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 100% | 100% | 100% | 100% |
Engineered Solutions Segment [Member] | General Industry [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 42.30% | 40.90% | 41% | 39.90% |
Engineered Solutions Segment [Member] | Industrial Machinery [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 27.40% | 29% | 27.30% | 29% |
Engineered Solutions Segment [Member] | Metals [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 7.40% | 7.10% | 7.60% | 7.20% |
Engineered Solutions Segment [Member] | Food [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 2.20% | 2.20% | 2.50% | 2.40% |
Engineered Solutions Segment [Member] | Forest Products [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 2.40% | 2.10% | 2.50% | 2.30% |
Engineered Solutions Segment [Member] | Chem/Petrochem [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 12.90% | 13.80% | 13.40% | 13.80% |
Engineered Solutions Segment [Member] | Cement & Aggregate [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 1.30% | 0.90% | 1.40% | 1% |
Engineered Solutions Segment [Member] | Oil & Gas [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 1.20% | 1.20% | 1.30% | 1.20% |
Engineered Solutions Segment [Member] | Transportation [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 2.90% | 2.80% | 3% | 3.20% |
Engineered Solutions Segment [Member] | Total | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Customer Industry, Percent | 100% | 100% | 100% | 100% |
Revenue Recognition Revenue R_5
Revenue Recognition Revenue Recognition (Details 2) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 100% | 100% | 100% | 100% |
Power Transmission [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 28.40% | 27.90% | 28.50% | 28.30% |
General Maintenance; Hose Products [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 21.80% | 21% | 20.60% | 20.50% |
Fluid Power [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 20.50% | 21.10% | 20.40% | 21% |
Bearings, Linear & Seals [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 18.90% | 19.50% | 19% | 19.60% |
Specialty Flow Control [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 10.40% | 10.50% | 11.50% | 10.60% |
Service Center Based Distribution Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 100% | 100% | 100% | 100% |
Service Center Based Distribution Segment [Member] | Power Transmission [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 37.50% | 36.60% | 37.50% | 37.10% |
Service Center Based Distribution Segment [Member] | General Maintenance; Hose Products [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 21% | 21.50% | 21.20% | 21.10% |
Service Center Based Distribution Segment [Member] | Fluid Power [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 13.30% | 13% | 13.10% | 12.90% |
Service Center Based Distribution Segment [Member] | Bearings, Linear & Seals [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 28.20% | 28.90% | 28.20% | 28.90% |
Service Center Based Distribution Segment [Member] | Specialty Flow Control [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 0% | 0% | 0% | 0% |
Engineered Solutions Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 100% | 100% | 100% | 100% |
Engineered Solutions Segment [Member] | Power Transmission [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 10.10% | 10.40% | 10.10% | 10.20% |
Engineered Solutions Segment [Member] | General Maintenance; Hose Products [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 23.60% | 19.90% | 19.60% | 19.40% |
Engineered Solutions Segment [Member] | Fluid Power [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 34.80% | 37.40% | 35.10% | 37.50% |
Engineered Solutions Segment [Member] | Bearings, Linear & Seals [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 0.50% | 0.50% | 0.40% | 0.50% |
Engineered Solutions Segment [Member] | Specialty Flow Control [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated Revenue by Product Line, Percent | 31% | 31.80% | 34.80% | 32.40% |
Revenue Recognition Revenue R_6
Revenue Recognition Revenue Recognition (Details 3) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2022 | Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Contract Assets | $ 15,586 | $ 18,050 |
Contract Assets Period $ Change | $ (2,464) | |
Contract Assets Period % Change | (13.70%) |
Business Combinations Business
Business Combinations Business Combinations Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | Nov. 01, 2022 | Aug. 18, 2021 | |
Acquisition holdback payments | $ 1,510 | $ 1,070 | ||||
Automation, Inc | ||||||
Total Consideration | $ 25,516 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 3,801 | |||||
Intangible Assets, Net (Including Goodwill) | $ 21,715 | |||||
RR Floody | ||||||
Total Consideration | $ 8,038 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 1,040 | |||||
Intangible Assets, Net (Including Goodwill) | 6,998 | |||||
Funding from Holdback Payments | $ 1,000 | |||||
Acquisition holdback payments | 500 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 2% | |||||
RR Floody | Other Current Liabilities [Member] | ||||||
Funding from Holdback Payments | $ 500 | $ 500 |
Goodwill and Intangibles (Detai
Goodwill and Intangibles (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Jun. 30, 2022 | |
Changes in the carrying amount of goodwill by reportable segment | ||
Balance at beginning of period | $ 563,205 | $ 560,077 |
Goodwill acquired during the period | 9,955 | 3,984 |
Other, primarily currency translation | (841) | (856) |
Balance at end of period | 572,319 | 563,205 |
Service Center Based Distribution Segment [Member] | ||
Changes in the carrying amount of goodwill by reportable segment | ||
Balance at beginning of period | 211,010 | 212,296 |
Goodwill acquired during the period | 0 | 0 |
Other, primarily currency translation | (1,258) | (1,286) |
Balance at end of period | 209,752 | 211,010 |
Engineered Solutions Segment [Member] | ||
Changes in the carrying amount of goodwill by reportable segment | ||
Balance at beginning of period | 352,195 | 347,781 |
Goodwill acquired during the period | 9,955 | 3,984 |
Other, primarily currency translation | 417 | 430 |
Balance at end of period | $ 362,567 | $ 352,195 |
Goodwill and Intangibles (Det_2
Goodwill and Intangibles (Details 1) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Amortization details resulting from business combinations | ||
Amount | $ 482,685 | $ 473,106 |
Accumulated Amortization | 235,946 | 222,516 |
Net Book Value | 246,739 | 250,590 |
Customer relationships | ||
Amortization details resulting from business combinations | ||
Amount | 361,770 | 353,836 |
Accumulated Amortization | 177,401 | 166,623 |
Net Book Value | 184,369 | 187,213 |
Trade names | ||
Amortization details resulting from business combinations | ||
Amount | 108,033 | 105,629 |
Accumulated Amortization | 48,211 | 44,637 |
Net Book Value | 59,822 | 60,992 |
Vendor relationships | ||
Amortization details resulting from business combinations | ||
Amount | 9,861 | 11,320 |
Accumulated Amortization | 9,416 | 10,533 |
Net Book Value | 445 | 787 |
Other Intangible Assets | ||
Amortization details resulting from business combinations | ||
Amount | 3,021 | 2,321 |
Accumulated Amortization | 918 | 723 |
Net Book Value | $ 2,103 | $ 1,598 |
Goodwill and Intangibles (Det_3
Goodwill and Intangibles (Details2) | 6 Months Ended |
Dec. 31, 2022 USD ($) | |
Acquired Indefinite-lived Intangible Assets [Line Items] | |
Acquisition Cost Allocation | $ 11,760,000 |
Weighted-Average Life | 18 years 2 months 12 days |
Customer Relationships [Member] | |
Acquired Indefinite-lived Intangible Assets [Line Items] | |
Acquisition Cost Allocation | $ 8,700,000 |
Weighted-Average Life | 20 years |
Trade Names [Member] | |
Acquired Indefinite-lived Intangible Assets [Line Items] | |
Acquisition Cost Allocation | $ 2,360,000 |
Weighted-Average Life | 15 years |
Other Intangible Assets [Member] | |
Acquired Indefinite-lived Intangible Assets [Line Items] | |
Acquisition Cost Allocation | $ 700,000 |
Weighted-Average Life | 6 years 8 months 12 days |
Goodwill and Intangibles (Det_4
Goodwill and Intangibles (Details Textuals) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Dec. 31, 2022 USD ($) | Jan. 01, 2022 | |
Goodwill [Line Items] | |||
Number of Reporting Units | 8 | ||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 25% | ||
Goodwill and Intangibles (Textuals) [Abstract] | |||
Amortization expense for the remainder of 2023 | $ 15,200 | ||
Amortization expense for 2024 | 27,300 | ||
Amortization expense for 2025 | 25,100 | ||
Amortization expense for 2026 | 23,300 | ||
Amortization expense for 2027 | 21,500 | ||
Amortization expense for 2028 | 20,000 | ||
Service Center Based Distribution Segment [Member] | |||
Goodwill [Line Items] | |||
Accumulated goodwill impairment losses | 64,794 | ||
Engineered Solutions Segment [Member] | |||
Goodwill [Line Items] | |||
Accumulated goodwill impairment losses | $ 167,605 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Long-term Debt Instruments [Line Items] | ||
Total debt | $ 649,372 | $ 689,495 |
Less: unamortized debt issuance costs | 131 | 171 |
Debt, Long-term and Short-term, Combined Amount | 649,241 | 689,324 |
Asset-backed Securities, Securitized Loans and Receivables [Member] | ||
Long-term Debt Instruments [Line Items] | ||
Trade receivable securitization facility | 188,300 | 188,300 |
Prudential Facility - Series C [Member] | ||
Long-term Debt Instruments [Line Items] | ||
Long-term Debt | 0 | 40,000 |
Prudential Facility - Series D [Member] | ||
Long-term Debt Instruments [Line Items] | ||
Long-term Debt | 25,000 | 25,000 |
Prudential Facility - Series E [Member] [Member] | ||
Long-term Debt Instruments [Line Items] | ||
Long-term Debt | 25,000 | 25,000 |
State of Ohio Assumed Debt [Member] | ||
Long-term Debt Instruments [Line Items] | ||
Long-term Debt | 480 | 603 |
Revolving Credit Facility [Member] | ||
Long-term Debt Instruments [Line Items] | ||
Revolving credit facility | $ 410,592 | $ 410,592 |
Debt (Textuals) (Details)
Debt (Textuals) (Details) - USD ($) | 6 Months Ended | |
Dec. 31, 2022 | Jun. 30, 2022 | |
Long-term Debt Instruments [Line Items] | ||
Letters of Credit Outstanding, Amount | $ 4,046,000 | $ 4,735,000 |
Asset-backed Securities, Securitized Loans and Receivables [Member] | ||
Long-term Debt Instruments [Line Items] | ||
Debt Instrument, Face Amount | $ 250,000,000 | |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 5.36% | 2.60% |
Debt Instrument, Fee | $ 0.0098 | |
Prudential Facility [Domain] | ||
Long-term Debt Instruments [Line Items] | ||
Long-term Debt | $ 50,000,000 | $ 90,000,000 |
Prudential Facility [Domain] | Minimum [Member] | ||
Long-term Debt Instruments [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 0.25% | |
Prudential Facility [Domain] | Maximum [Member] | ||
Long-term Debt Instruments [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.25% | |
Prudential Facility - Series C [Member] | ||
Long-term Debt Instruments [Line Items] | ||
Long-term Debt | $ 0 | 40,000,000 |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.19% | |
Prudential Facility - Series D [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 | 3.21% | |
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% | |
State of Ohio Assumed Debt [Member] | ||
Long-term Debt Instruments [Line Items] | ||
Debt Instrument, Face Amount | $ 2,359,000 | |
Long-term Debt | $ 480,000 | $ 603,000 |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 1.50% | |
Revolving Credit Facility [Member] | ||
Long-term Debt Instruments [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 900,000,000 | |
Debt Instrument, Face Amount | 500,000,000 | |
Letters of Credit Outstanding, Amount | 200,000 | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 489,208,000 | |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 5.35% | 2.81% |
Revolving Credit Facility [Member] | Minimum [Member] | ||
Long-term Debt Instruments [Line Items] | ||
Variable interest rate, base rate plus margin | 0% | |
Variable interest rate, LIBOR plus margin | 8,000% | |
Revolving Credit Facility [Member] | Maximum [Member] | ||
Long-term Debt Instruments [Line Items] | ||
Variable interest rate, base rate plus margin | 5,500% | |
Variable interest rate, LIBOR plus margin | 15,500% |
Derivatives Derivatives (Detail
Derivatives Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | |
Derivative [Line Items] | |||||||
Derivative, Amount of Hedged Item | $ 384,000 | $ 384,000 | $ 409,000 | $ 463,000 | |||
Derivative, Fixed Interest Rate | 1.63% | 1.63% | 2.61% | ||||
Derivative, Variable Interest Rate | 2.54% | 2.54% | 2.75% | ||||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 27,975 | $ 27,975 | $ 17,827 | ||||
Reclassification of interest from cash flow hedge into interest expense, net | $ (715) | $ 2,585 | $ 81 | $ 5,170 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Level 1 [Member] | Recurring [Member] | ||
Fair Value Measurements (Textuals) [Line Items] | ||
Marketable securities | $ 16,751 | $ 15,317 |
Shareholders' Equity Accumulate
Shareholders' Equity Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance at beginning of period | $ (72,295) | $ (72,295) | ||||
Other comprehensive income (loss), Cash flow hedge | $ 414 | $ 3,672 | 9,694 | $ 4,122 | ||
Amounts reclassified from accumulated other comprehensive (loss) income, Cash flow hedge | (539) | 1,950 | 61 | 3,900 | ||
Net current-period other comprehensive income (loss), net of taxes, Foreign Currency Translation Adjustment | 5,885 | (791) | (5,636) | (7,979) | ||
Net current-period other comprehensive income (loss), net of taxes, Total accumulated other comprehensive income (loss) | 6,544 | 4,888 | 4,909 | 157 | ||
Balance at end of period | (67,386) | (67,386) | ||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Amounts reclassified from accumulated other comprehensive (loss) income, Foreign currency translation adjustment | 0 | 0 | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive (loss) income, Postemployment benefits | 7 | 57 | 13 | 114 | ||
Amounts reclassified from accumulated other comprehensive (loss) income, Cash flow hedge | (539) | 1,950 | 61 | 3,900 | ||
Amounts reclassified from accumulated other comprehensive (loss) income | (532) | 2,007 | 74 | 4,014 | ||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance at beginning of period | (102,259) | (90,738) | (88,026) | $ (80,838) | (90,738) | (80,838) |
Other comprehensive income (loss), Foreign Currency Translation Adjustment | 5,885 | (791) | (5,636) | (7,979) | ||
Net current-period other comprehensive income (loss), net of taxes, Foreign Currency Translation Adjustment | 5,885 | (791) | (5,636) | (7,979) | ||
Balance at end of period | (96,374) | (102,259) | (88,817) | (88,026) | (96,374) | (88,817) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance at beginning of period | (1,297) | (1,303) | (3,616) | (3,673) | (1,303) | (3,673) |
Other comprehensive income (loss), Postemployment Benefits, | 777 | 0 | 777 | 0 | ||
Net current-period other comprehensive income (loss), net of taxes, Postemployment benefits | 784 | 57 | 790 | 114 | ||
Balance at end of period | (513) | (1,297) | (3,559) | (3,616) | (513) | (3,559) |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance at beginning of period | 29,626 | 19,746 | (6,181) | (8,581) | 19,746 | (8,581) |
Other comprehensive income (loss), Cash flow hedge | 414 | 3,672 | 9,694 | 4,122 | ||
Net current-period other comprehensive income (loss), net of taxes, Cash flow hedge | (125) | 5,622 | 9,755 | 8,022 | ||
Balance at end of period | 29,501 | 29,626 | (559) | (6,181) | 29,501 | (559) |
AOCI Attributable to Parent [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance at beginning of period | (73,930) | (72,295) | (97,823) | (93,092) | (72,295) | (93,092) |
Other comprehensive income (loss), Total accumulated other comprehensive income (loss) | 7,076 | 2,881 | 4,835 | (3,857) | ||
Net current-period other comprehensive income (loss), net of taxes, Total accumulated other comprehensive income (loss) | 6,544 | (1,635) | 4,888 | (4,731) | 4,909 | 157 |
Balance at end of period | $ (67,386) | $ (73,930) | $ (92,935) | $ (97,823) | $ (67,386) | $ (92,935) |
Shareholders' Equity (Details)
Shareholders' Equity (Details) 1 - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, before Tax | $ 5,929 | $ (783) | $ (5,508) | $ (7,965) |
Foreign currency translation adjustments, Tax | 44 | 8 | 128 | 14 |
Foreign currency translation adjustments, Net of Tax | 5,885 | (791) | (5,636) | (7,979) |
Post-employment benefits: | ||||
Reclassification of net actuarial losses and prior service cost into other expense (income), net and included in net periodic pension costs, before Tax | 10 | 75 | 18 | 150 |
Reclassification of net actuarial losses and prior service cost into other expense (income), net and included in net periodic pension costs, Tax | 3 | 18 | 5 | 36 |
Reclassification of net actuarial losses and prior service cost into other expense (income), net and included in net periodic pension costs, Net of Tax | 7 | 57 | 13 | 114 |
Termination of Pension Plan, before Tax | 1,031 | 0 | 1,031 | 0 |
Termination of Pension Plan, Tax | 254 | 0 | 254 | 0 |
Termination of Pension Plan, Net of Tax | 777 | 0 | 777 | 0 |
Unrealized gain on cash flow hedge, before Tax | 548 | 4,867 | 12,858 | 5,463 |
Unrealized gain on cash flow hedge, Tax | 134 | 1,195 | 3,164 | 1,341 |
Unrealized gain on cash flow hedge, Net of Tax | 414 | 3,672 | 9,694 | 4,122 |
Reclassification of interest from cash flow hedge into interest expense, before Tax | 715 | (2,585) | (81) | (5,170) |
Reclassification of interest from cash flow hedge into interest expense, Tax | (176) | 635 | 20 | 1,270 |
Reclassification of interest from cash flow hedge into interest expense, Net of Tax | (539) | 1,950 | 61 | 3,900 |
Other comprehensive income, before tax | 6,803 | 6,744 | 8,480 | 2,818 |
Other comprehensive income, tax | 259 | 1,856 | 3,571 | 2,661 |
Other comprehensive income, net of tax | $ 6,544 | $ 4,888 | $ 4,909 | $ 157 |
Shareholders' Equity (Textuals)
Shareholders' Equity (Textuals) (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 82 | 78 | 109 | 108 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 1,060,280 | $ 876,874 | $ 2,122,685 | $ 1,768,555 | |
Operating income for reportable segments | 112,893 | 78,177 | 219,425 | 152,791 | |
Assets used in business | 2,522,904 | 2,225,709 | 2,522,904 | 2,225,709 | $ 2,452,588 |
Depreciation and amortization of property | 5,552 | 5,436 | 11,033 | 10,863 | |
Capital expenditures | 7,263 | 3,889 | 12,817 | 7,510 | |
Service Center Based Distribution Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 705,392 | 587,218 | 1,423,380 | 1,188,089 | |
Operating income for reportable segments | 86,484 | 67,450 | 175,293 | 132,103 | |
Assets used in business | 1,454,040 | 1,265,567 | 1,454,040 | 1,265,567 | |
Depreciation and amortization of property | 4,474 | 4,371 | 8,923 | 8,750 | |
Capital expenditures | 4,751 | 3,039 | 8,316 | 6,136 | |
Engineered Solutions Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 354,888 | 289,656 | 699,305 | 580,466 | |
Operating income for reportable segments | 51,626 | 36,426 | 97,160 | 71,231 | |
Assets used in business | 1,068,864 | 960,142 | 1,068,864 | 960,142 | |
Depreciation and amortization of property | 1,078 | 1,065 | 2,110 | 2,113 | |
Capital expenditures | 2,512 | 850 | 4,501 | 1,374 | |
Reportable Segments Total | |||||
Segment Reporting Information [Line Items] | |||||
Operating income for reportable segments | $ 138,110 | $ 103,876 | $ 272,453 | $ 203,334 |
Segment Information (Details 1)
Segment Information (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of operating income for reportable segments to the consolidated income before income taxes | ||||
Operating income for reportable segments | $ 112,893 | $ 78,177 | $ 219,425 | $ 152,791 |
Adjustment for: | ||||
Intangible amortization | 15,519 | 16,205 | ||
Corporate and other expense, net | 17,403 | 17,615 | 37,509 | 34,338 |
Operating income | 112,893 | 78,177 | 219,425 | 152,791 |
Interest expense, net | 6,185 | 7,007 | 12,665 | 14,397 |
Other expense (income), net | 758 | (869) | 1,766 | (1,181) |
Income before income taxes | 105,950 | 72,039 | 204,994 | 139,575 |
Reportable Segments Total | ||||
Reconciliation of operating income for reportable segments to the consolidated income before income taxes | ||||
Operating income for reportable segments | 138,110 | 103,876 | 272,453 | 203,334 |
Adjustment for: | ||||
Operating income | 138,110 | 103,876 | 272,453 | 203,334 |
Service Center Based Distribution Segment [Member] | ||||
Reconciliation of operating income for reportable segments to the consolidated income before income taxes | ||||
Operating income for reportable segments | 86,484 | 67,450 | 175,293 | 132,103 |
Adjustment for: | ||||
Intangible amortization | 730 | 881 | 1,488 | 1,773 |
Operating income | 86,484 | 67,450 | 175,293 | 132,103 |
Engineered Solutions Segment [Member] | ||||
Reconciliation of operating income for reportable segments to the consolidated income before income taxes | ||||
Operating income for reportable segments | 51,626 | 36,426 | 97,160 | 71,231 |
Adjustment for: | ||||
Intangible amortization | 7,084 | 7,203 | 14,031 | 14,432 |
Operating income | $ 51,626 | $ 36,426 | $ 97,160 | $ 71,231 |
Segment Information (Details Te
Segment Information (Details Textuals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | ||||
Inventory, LIFO Reserve, Period Charge | $ 8,853 | $ 4,675 | $ 17,913 | $ 8,246 |
Net sales | 1,060,280 | 876,874 | 2,122,685 | 1,768,555 |
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 11,695 | $ 8,859 | $ 22,213 | $ 16,991 |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | ||||
Unrealized gain on assets held in rabbi trust for a non-qualified deferred compensation plan | $ (1,065) | $ (1,031) | $ (238) | $ (940) |
Foreign currency transactions loss (gain) | 700 | 217 | 928 | (350) |
Net other periodic post-employment costs | 1,176 | 153 | 1,319 | 305 |
Life insurance income, net | (104) | (113) | (215) | (154) |
Other, net | 51 | (95) | (28) | (42) |
Total other expense (income), net | $ 758 | $ (869) | $ 1,766 | $ (1,181) |