APPLIED INDUSTRIAL TECHNOLOGIES INC, 10-K filed on 8/16/2024
Annual Report
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Document and Entity Information - USD ($)
$ in Thousands
12 Months Ended
Jun. 30, 2024
Aug. 02, 2024
Dec. 31, 2023
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Jun. 30, 2024    
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 1 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 Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
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    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 6,623,721
Entity Common Stock, Shares Outstanding (actual number)   38,358,730  
Entity Central Index Key 0000109563    
Current Fiscal Year End Date --06-30    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Amendment Flag false    
Auditor Name Deloitte & Touche LLP    
Auditor Firm ID 34    
Auditor Location Cleveland, Ohio    
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Commitments and Contingencies
12 Months Ended
Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
The Company is a party to various pending judicial and administrative proceedings. Based on circumstances currently known, the Company does not expect that the ultimate resolution of any of these matters will have, either individually or in the aggregate, a material adverse effect on the Company’s consolidated financial position, results of operations, or cash flows.
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Statements of Consolidated Income - USD ($)
$ in Thousands
12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Income Statement [Abstract]      
Net sales $ 4,479,406 $ 4,412,794 $ 3,810,676
Cost of sales 3,142,753 3,125,829 2,703,760
Gross profit 1,336,653 1,286,965 1,106,916
Selling, distribution and administrative expense, including depreciation 840,830 813,814 749,058
Operating income 495,823 473,151 357,858
Interest expense 20,544 24,790 26,785
Interest income (17,713) (3,151) (522)
Other (income) expense, net (5,138) 1,701 1,805
Income before income taxes 498,130 449,811 329,790
Income tax expense 112,368 103,072 72,376
Net income $ 385,762 $ 346,739 $ 257,414
Net income per share — basic $ 9.98 $ 8.98 $ 6.69
Net income per share — diluted $ 9.83 $ 8.84 $ 6.58
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Statements of Consolidated Comprehensive Income - USD ($)
$ in Thousands
12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Statement of Comprehensive Income [Abstract]      
Net income per the statements of consolidated income $ 385,762 $ 346,739 $ 257,414
Other comprehensive (loss) income, before tax:      
Foreign currency translation adjustments (12,544) 7,723 (9,862)
Post-employment benefits:      
Actuarial (loss) gain on re-measurement (134) 405 2,839
Termination of pension plan 0 1,031 0
Reclassification of net actuarial (gains) losses and prior service cost into other (income) expense, net and included in net periodic pension costs (117) 36 300
Unrealized gain on cash flow hedge 5,958 18,174 26,204
Reclassification of interest from cash flow hedge into interest expense (18,683) (7,285) 11,361
Total other comprehensive (loss) income, before tax (25,520) 20,084 30,842
Income tax (benefit) expense related to items of other comprehensive income (3,250) 3,085 10,045
Other comprehensive (loss) income, net of tax (22,270) 16,999 20,797
Comprehensive income $ 363,492 $ 363,738 $ 278,211
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Consolidated Balance Sheets - USD ($)
shares in Thousands, $ in Thousands
Jun. 30, 2024
Jun. 30, 2023
Current assets    
Cash and cash equivalents $ 460,617 $ 344,036
Accounts receivable, net 724,878 708,395
Inventories 488,258 501,184
Other current assets 96,148 93,192
Total current assets 1,769,901 1,646,807
Property — at cost    
Land 14,160 14,219
Buildings 115,262 109,884
Equipment, including computers and software 233,745 219,979
Total property — at cost 363,167 344,082
Less accumulated depreciation 244,640 229,041
Property — net 118,527 115,041
Operating lease assets, net 133,289 100,677
Identifiable intangibles, net 245,870 235,549
Goodwill 619,395 578,418
Other assets 64,928 66,840
Total Assets 2,951,910 2,743,332
Current liabilities    
Accounts payable 266,949 301,685
Current portion of long-term debt 25,055 25,170
Compensation and related benefits 93,204 98,740
Other current liabilities 115,892 114,749
Total current liabilities 501,100 540,344
Long-term debt 572,279 596,926
Other liabilities 189,750 147,625
Total Liabilities 1,263,129 1,284,895
Shareholders’ Equity    
Preferred stock — no par value; 2,500 shares authorized; none issued or outstanding $ 0 0
Preferred Stock, Shares Authorized 2,500  
Common stock — no par value; 80,000 shares authorized; 54,213 shares issued; 38,409 and 38,657 shares outstanding, respectively $ 10,000 $ 10,000
Common Stock, Shares authorized 80,000  
Common Stock, Shares, Issued 54,213  
Common Stock, Shares, Outstanding 38,409 38,657
Additional paid-in capital $ 193,778 $ 188,646
Retained earnings 2,121,838 1,792,632
Treasury shares — at cost (15,804 and 15,556 shares, respectively) $ (559,269) $ (477,545)
Treasury Stock, Shares 15,804 15,556
Accumulated other comprehensive loss $ (77,566) $ (55,296)
Total Shareholders’ Equity 1,688,781 1,458,437
Total Liabilities and Shareholders’ Equity $ 2,951,910 $ 2,743,332
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Statements of Consolidated Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Net income $ 385,762 $ 346,739 $ 257,414
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization of property 23,431 22,266 21,676
Amortization of intangibles 28,923 30,805 31,879
Amortization of stock appreciation rights and options 3,448 2,785 3,284
Deferred income taxes (1,074) (5,716) 15,176
(Recoveries of) provision for losses on accounts receivable (205) 5,619 3,193
Other share-based compensation expense 9,496 9,576 8,558
Other (1,309) 1,145 (1,752)
Changes in operating assets and liabilities, net of acquisitions:      
Accounts receivable (1,925) (51,059) (145,519)
Inventories 18,387 (42,977) (92,425)
Other operating assets (25,897) (25,254) (4,982)
Accounts payable (39,272) 37,682 53,597
Other operating liabilities (28,372) 12,355 37,471
Cash provided by Operating Activities 371,393 343,966 187,570
Cash Flows from Investing Activities      
Cash paid for acquisition of businesses, net of cash acquired (72,090) (35,785) (6,964)
Capital expenditures (24,864) (26,476) (18,124)
Proceeds from property sales 576 1,428 1,107
Life insurance proceeds 971 0 3,158
Cash payments for loans on company-owned life insurance 0 0 (14,835)
Cash used in Investing Activities (95,407) (60,833) (35,658)
Cash Flows from Financing Activities      
Repayments under revolving credit facility 0 27,000 0
Borrowings under revolving credit facility 408 0 410,592
Long-term debt repayments (25,251) (40,247) (550,493)
Interest rate swap settlement receipts (payments) 14,470 8,800 (5,703)
Payment of debt issuance costs 0 0 (1,956)
Purchases of treasury shares (73,388) (716) (13,784)
Dividends paid (55,879) (53,446) (51,805)
Acquisition holdback payments (681) (1,510) (2,361)
Exercise of stock appreciation rights and options 127 127 555
Taxes paid for shares withheld (16,274) (12,896) (8,074)
Cash used in Financing Activities (156,468) (126,888) (223,029)
Effect of exchange rate changes on cash (2,937) 3,317 (2,154)
Increase (decrease) in cash and cash equivalents 116,581 159,562 (73,271)
Cash and cash equivalents at beginning of year 344,036 184,474 257,745
Cash and Cash Equivalents at End of Year 460,617 344,036 184,474
Cash paid during the year for:      
Income taxes 116,311 108,084 53,301
Interest (includes interest rate swap settlements) $ 23,978 $ 22,567 $ 20,164
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Statements of Consolidated Shareholders' Equity - USD ($)
shares in Thousands, $ in Thousands
Total
Stock Options and Stock Appreciation Rights [ Member]
Common Stock
Additional Paid-in Capital
Additional Paid-in Capital
Stock Options and Stock Appreciation Rights [ Member]
Additional Paid-in Capital
Performance Shares [Member]
Additional Paid-in Capital
Restricted Stock Units (RSUs) [Member]
Retained Earnings
Treasury Shares- at Cost
Treasury Shares- at Cost
Stock Options and Stock Appreciation Rights [ Member]
Treasury Shares- at Cost
Performance Shares [Member]
Treasury Shares- at Cost
Restricted Stock Units (RSUs) [Member]
Accumulated Other Comprehensive Income (Loss)
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 $ 257,414                         257,414      
Other comprehensive income (loss) $ 20,797                       20,797 20,797      
Cash dividends per share $ 1.34                                
Cash dividends - $1.34, $1.38, and $1.44 per share for 2022, 2023, and 2024 respectively               (52,175)           (52,175)      
Purchases of common stock for treasury, shares     (149)                            
Purchases of common stock for treasury                 (13,784)         (13,784)      
Treasury shares issued for:                                  
Exercise of stock appreciation rights and options, shares     104                            
Additional Paid in Capital, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units         $ (3,945) $ (222) $ (598)                    
Stock Issued During Period, Value, Stock Options Exercised                   $ (2,132)              
Performance share awards, shares     5                            
Performance share awards                     $ (73)            
Restricted stock units, shares     12                            
Restricted stock units                       $ (138)          
Total Shareholders' Equity, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units                             $ (6,077) $ (295) $ (736)
Compensation expense       8,558 3,284                 8,558 3,284    
Other, shares     11                            
Other       (269)       24 68         (177)      
Ending balance, shares at Jun. 30, 2022     38,499                            
Ending balance at Jun. 30, 2022     $ 10,000 183,822       1,499,676 (471,848)       (72,295) 1,149,355      
Net income $ 346,739                         346,739      
Other comprehensive income (loss) $ 16,999                       16,999 16,999      
Cash dividends per share $ 1.38                                
Cash dividends - $1.34, $1.38, and $1.44 per share for 2022, 2023, and 2024 respectively               (53,887)           (53,887)      
Purchases of common stock for treasury, shares     (8)                            
Purchases of common stock for treasury                 (716)         (716)      
Treasury shares issued for:                                  
Exercise of stock appreciation rights and options, shares     92                            
Additional Paid in Capital, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units         (4,256) (1,290) (1,712)                    
Stock Issued During Period, Value, Stock Options Exercised                   (3,773)              
Performance share awards, shares     23                            
Performance share awards                     (758)            
Restricted stock units, shares     34                            
Restricted stock units                       (932)          
Total Shareholders' Equity, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units                             (8,029) (2,048) (2,644)
Compensation expense       9,576 2,785                 9,576 2,785    
Other, shares     17                            
Other       (279)       104 482         307      
Ending balance, shares at Jun. 30, 2023 38,657   38,657                            
Ending balance at Jun. 30, 2023 $ 1,458,437   $ 10,000 188,646       1,792,632 (477,545)       (55,296) 1,458,437      
Net income 385,762                         385,762      
Other comprehensive income (loss) $ (22,270)                       (22,270) (22,270)      
Cash dividends per share $ 1.44                                
Cash dividends - $1.34, $1.38, and $1.44 per share for 2022, 2023, and 2024 respectively               (56,560)           (56,560)      
Purchases of common stock for treasury, shares     (398)                            
Purchases of common stock for treasury                 (73,388)         (73,388)      
Treasury shares issued for:                                  
Exercise of stock appreciation rights and options, shares   188 73                            
Additional Paid in Capital, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units         (3,611) $ (3,072) $ (905)                    
Stock Issued During Period, Value, Stock Options Exercised                   $ (3,886)              
Performance share awards, shares     54                            
Performance share awards                     $ (3,487)            
Restricted stock units, shares     16                            
Restricted stock units                       $ (1,108)          
Total Shareholders' Equity, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units                             (7,497) $ (6,559) $ (2,013)
Compensation expense       9,496 $ 3,448                 9,496 $ 3,448    
Other, shares     7                            
Other       (224)       4 145         (75)      
Ending balance, shares at Jun. 30, 2024 38,409   38,409                            
Ending balance at Jun. 30, 2024 $ 1,688,781   $ 10,000 $ 193,778       $ 2,121,838 $ (559,269)       $ (77,566) $ 1,688,781      
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Business and Accounting Policies
12 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Business Description and Accounting Policies BUSINESS AND ACCOUNTING POLICIES
Business
Applied Industrial Technologies, Inc. and subsidiaries (the “Company,” “Applied,” "us," "we," or "our") is a leading value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies. Our leading brands, specialized services, and comprehensive knowledge serve MRO (Maintenance, Repair & Operations) and OEM (Original Equipment Manufacturer) end users in virtually all industrial markets through our multi-channel capabilities that provide choice, convenience, and expertise. Although the Company does not generally manufacture the products it sells, it does assemble and repair certain products and systems.
Consolidation
The consolidated financial statements include the accounts of Applied Industrial Technologies, Inc. and its subsidiaries. Intercompany transactions and balances have been eliminated in consolidation.
Foreign Currency
The financial statements of the Company’s Canadian, Mexican, Australian, and New Zealand subsidiaries are measured using local currencies as their functional currencies. Assets and liabilities are translated into U.S. dollars at current exchange rates, while income and expenses are translated at average exchange rates. Translation gains and losses are reported in other comprehensive income (loss) in the statements of consolidated comprehensive income. Gains and losses resulting from transactions denominated in foreign currencies are included in the statements of consolidated income as a component of other expense (income), net.
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the period. Actual results may differ from the estimates and assumptions used in preparing the consolidated financial statements.
Cash and Cash Equivalents
The Company considers all short-term, highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents are carried at cost, which approximates fair value.
Marketable Securities
The primary marketable security investments of the Company include money market and mutual funds held in a rabbi trust for a non-qualified deferred compensation plan. These are included in other assets in the consolidated balance sheets, are classified as trading securities, and are reported at fair value based on quoted market prices. Changes in the fair value of the investments during the period are recorded in other expense (income), net in the statements of consolidated income.
Concentration of Credit Risk
The Company has a broad customer base representing many diverse industries across North America, Australia, New Zealand, Singapore, and Costa Rica. As such, the Company does not believe that a significant concentration of credit risk exists in its accounts receivable. The Company’s cash and cash equivalents consist of deposits with commercial banks and regulated non-bank subsidiaries. While the Company monitors the creditworthiness of these institutions, a crisis in the financial systems could limit access to funds and/or result in the loss of principal. The terms of these deposits and investments provide that all monies are available to the Company upon demand.
Accounts Receivable
Accounts receivable are stated at their estimated net realizable value and consist of amounts billed or billable and currently due from customers.
Allowances for Doubtful Accounts
The Company maintains an allowance for doubtful accounts, which reflects management’s best estimate of probable losses based on an analysis of customer accounts, known troubled accounts, historical experience with write-offs, and other currently available evidence. Initially, the Company estimates an allowance for doubtful accounts as a percentage of net sales based on historical bad debt experience. This initial estimate is adjusted based on recent trends of customers and industries estimated to be greater credit risks, trends within the entire customer
pool, and changes in the overall aging of accounts receivable. Accounts are written off against the allowance when it becomes evident collection will not occur. While the Company has a large customer base that is geographically dispersed, a general economic downturn in any of the industry segments in which the Company operates could result in higher than expected defaults, and therefore, the need to revise estimates for bad debts. The allowance for doubtful accounts was $13,063 and $22,334 at June 30, 2024 and June 30, 2023, respectively.
Inventories
Inventories are valued at average cost, using the last-in, first-out (LIFO) method for U.S. inventories and the average cost method for foreign inventories. The Company adopted the link chain dollar value LIFO method of accounting for U.S. inventories in fiscal 1974. At June 30, 2024, approximately 14.9% of the Company’s domestic inventory dollars relate to LIFO layers added in the 1970s. The Company maintains five LIFO pools based on the following product groupings: bearings, power transmission products, rubber products, fluid power products, and other products. LIFO layers and/or liquidations are determined consistently year-to-year.
The Company evaluates the recoverability of its slow moving and inactive inventories at least quarterly. The Company estimates the recoverable cost of such inventory by product type while considering factors such as its age, historic and current demand trends, the physical condition of the inventory, as well as assumptions regarding future demand. The Company’s ability to recover its cost for slow moving or obsolete inventory can be affected by such factors as general market conditions, future customer demand, and relationships with suppliers. Historically, the Company’s inventories have demonstrated long shelf lives, are not highly susceptible to obsolescence, and, in certain instances, can be eligible for return under supplier return programs.
Supplier Purchasing Programs
The Company enters into agreements with certain suppliers providing inventory purchase incentives. The Company’s inventory purchase incentive arrangements are unique to each supplier and are generally annual programs ending at either the Company’s fiscal year end or the supplier’s year end; however, program length and ending dates can vary. Incentives are received in the form of cash or credits against purchases upon attainment of specified purchase volumes and are received either monthly, quarterly, or annually. The incentives are generally a specified percentage of the Company’s net purchases based upon achieving specific purchasing volume levels. These percentages can increase or decrease based on changes in the volume of purchases. The Company accrues for the receipt of these inventory purchase incentives based upon cumulative purchases of inventory. The percentage level utilized is based upon the estimated total volume of purchases expected during the life of the program. Supplier programs are analyzed each quarter to determine the appropriateness of the amount of purchase incentives accrued. Upon program completion, differences between estimates and actual incentives subsequently received have not been material. Benefits under these supplier purchasing programs are recognized under the Company’s inventory accounting methods as a reduction of cost of sales when the inventories representing these purchases are recorded as cost of sales. Accrued incentives expected to be settled as a credit against future purchases are reported on the consolidated balance sheets as an offset to amounts due to the related supplier.
Property and Related Depreciation and Amortization
Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets and is included in selling, distribution, and administrative expense in the accompanying statements of consolidated income. Buildings, building improvements and leasehold improvements are depreciated over ten to thirty years or the life of the lease if a shorter period, and equipment is depreciated over three to ten years. The Company capitalizes internal use software development costs in accordance with guidance on accounting for costs of computer software developed or obtained for internal use. Amortization of software begins when it is ready for its intended use, and is computed on a straight-line basis over the estimated useful life of the software, generally not to exceed twelve years. Capitalized software and hardware costs are classified as property on the consolidated balance sheets. The carrying values of property and equipment are reviewed for impairment when events or changes in circumstances indicate that the asset group's recorded value cannot be recovered from undiscounted future cash flows. Impairment losses, if any, would be measured based upon the difference between the carrying amount of an asset group and its fair value.
Goodwill and Intangible Assets
Goodwill is recognized as the excess cost of an acquired entity over the net amount assigned to assets acquired and liabilities assumed. Goodwill is not amortized. Goodwill is reviewed for impairment annually as of January 1 or whenever changes in conditions indicate an evaluation should be completed. These conditions could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. The Company utilizes the income and market approaches to determine the fair value of reporting units. Evaluating impairment requires significant judgment by management,
including estimated future operating results, estimated future cash flows, the long-term rate of growth of the business, and determination of an appropriate discount rate. While the Company uses available information to prepare the estimates and evaluations, actual results could differ significantly.
The Company recognizes acquired identifiable intangible assets such as customer relationships, trade names, vendor relationships, and non-competition agreements apart from goodwill. Customer relationship identifiable intangibles are amortized using the sum-of-the-years-digits method or the expected cash flow method over estimated useful lives consistent with assumptions used in the determination of their value. Amortization of all other finite-lived identifiable intangible assets is computed using the straight-line method over the estimated period of benefit. Amortization of identifiable intangible assets is included in selling, distribution and administrative expense in the accompanying statements of consolidated income. Identifiable intangible assets with finite lives are reviewed for impairment when changes in conditions indicate carrying value may not be recoverable. If circumstances require a finite-lived intangible asset be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by the asset to the carrying value of the asset. If the carrying value of the finite-lived intangible asset is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value determined through a discounted cash flow model. Identifiable intangible assets with indefinite lives are reviewed for impairment on an annual basis or whenever changes in conditions indicate an evaluation should be completed. The Company does not currently have any indefinite-lived identifiable intangible assets.
Self-Insurance Liabilities
The Company maintains business insurance programs with significant self-insured retention covering workers’ compensation, business, automobile, general product liability and other claims. The Company accrues estimated losses including those incurred but not reported using actuarial calculations, models and assumptions based on historical loss experience. The Company also maintains a self-insured health benefits plan which provides medical benefits to U.S. based employees electing coverage under the plan. The Company estimates its reserve for all unpaid medical claims, including those incurred but not reported, based on historical experience, adjusted as necessary based upon management’s reasoned judgment.
Revenue Recognition
The Company primarily sells purchased products distributed through its network of service centers and recognizes revenue at a point in time when control of the product transfers to the customer, typically upon shipment from an Applied facility or directly from a supplier. For products that ship directly from suppliers to customers, Applied generally acts as the principal in the transaction and recognizes revenue on a gross basis. Revenue recognized over time is not significant. Revenue is measured as the amount of consideration expected to be received in exchange for the products and services provided, net of allowances for product returns, variable consideration, and any taxes collected from customers that will be remitted to governmental authorities. Shipping and handling costs are recognized in net sales when they are billed to the customer. The Company has elected to account for shipping and handling activities as fulfillment costs. There are no significant costs associated with obtaining customer contracts.
Payment terms with customers vary by the type and location of the customer and the products or services offered. The Company does not adjust the promised amount of consideration for the effects of significant financing components based on the expectation that the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Arrangements with customers that include payment terms extending beyond one year are not significant.
The Company’s products are generally sold with a right of return and may include variable consideration in the form of incentives, discounts, credits, or rebates. Product returns are estimated based on historical return rates. The returns reserve was $10,815 and $12,635 at June 30, 2024 and June 30, 2023, respectively.
The Company estimates and recognizes variable consideration based on historical experience to determine the expected amount to which the Company will be entitled in exchange for transferring the promised goods or services to a customer. The Company records variable consideration as an adjustment to the transaction price in the period it is incurred. The realization of variable consideration occurs within a short period of time from product delivery; therefore, the time value of money effect is not significant.
Shipping and Handling Costs
The Company records freight payments to third parties in cost of sales and internal delivery costs in selling, distribution and administrative expense in the accompanying statements of consolidated income. Internal delivery costs in selling, distribution and administrative expense were approximately $24,620, $22,170, and $17,890 for the fiscal years ended June 30, 2024, 2023, and 2022, respectively.
Income Taxes
Income taxes are determined based upon income and expenses recorded for financial reporting purposes. Deferred income taxes are recorded for estimated future tax effects of differences between the bases of assets and liabilities for financial reporting and income tax purposes, giving consideration to enacted tax laws. Uncertain tax positions meeting a more-likely-than-not recognition threshold are recognized in accordance with Accounting Standards Codification (ASC) Topic 740 - Income Taxes. The Company recognizes accrued interest and penalties related to unrecognized income tax benefits in the provision for income taxes.
Share-Based Compensation
Share-based compensation represents the cost related to share-based awards granted to employees under the 2023 Long-Term Performance Plan, the 2019 Long-Term Performance Plan, or the 2015 Long-Term Performance Plan. The Company measures share-based compensation cost at the grant date, based on the estimated fair value of the award and recognizes the cost over the requisite service period. Non-qualified stock appreciation rights (SARs) and stock options are granted with an exercise price equal to the closing market price of the Company’s common stock at the date of grant and the fair values are determined using a Black-Scholes option pricing model, which incorporates assumptions regarding the expected volatility, the expected option life, the risk-free interest rate and the expected dividend yield. SARs and stock option awards generally vest over four years of continuous service and have ten-year contractual terms. The fair value of restricted stock awards, restricted stock units (RSUs), and performance shares are based on the closing market price of Company common stock on the grant date.
Treasury Shares
Shares of common stock repurchased by the Company are recorded at cost as treasury shares and result in a reduction of shareholders’ equity in the consolidated balance sheets. The Company uses the weighted-average cost method for determining the cost of shares reissued. The difference between the cost of the shares and the reissuance price is added to or deducted from additional paid-in capital.
Derivatives
The Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting, and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.
In accordance with the FASB’s fair value measurement guidance, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio.
Retirement Savings Plan
Substantially all U.S. employees participate in the Applied Industrial Technologies, Inc. Retirement Savings Plan, a 401(k) plan. Participants may elect 401(k) contributions of up to 50% of their compensation, subject to Internal Revenue Code maximums. The Company partially matches 401(k) contributions by participants. The Company’s expense for matching of employees’ 401(k) contributions was $9,670, $9,989 and $9,149 during 2024, 2023 and 2022, respectively.
Deferred Compensation Plans
The Company maintains deferred compensation plans that enable certain employees of the Company to defer receipt of a portion of their compensation. Rabbi trusts have been established to hold and provide a measure of security for investments that fund benefits payments under these plans. Assets held in these rabbi trusts consist of investments in money market and mutual funds and Company common stock.
Post-employment Benefit Plans
The Company provides the following post-employment benefits which, except for the Qualified Defined Benefit Retirement Plan and Key Executive Restoration Plan, are unfunded:
Supplemental Executive Retirement Benefits Plan
The Company has a non-qualified pension plan to provide supplemental retirement benefits to certain officers. Benefits are payable and determinable at retirement based upon a percentage of the participant’s historical compensation. The Executive Organization and Compensation Committee of the Board of Directors froze participant benefits (credited service and final average earnings) and entry into the Supplemental Executive Retirement Benefits Plan (SERP) effective December 31, 2011. The Company recorded net periodic benefit costs associated with the SERP of $289, $399, and $450 in fiscal 2024, 2023, and 2022, respectively. The Company expects to make payments of approximately $1,300 under the SERP in fiscal 2025 and 2026, respectively.
Key Executive Restoration Plan
In fiscal 2012, the Company adopted the Key Executive Restoration Plan (KERP), a funded, non-qualified deferred compensation plan, to replace the SERP. The Company recorded $446, $456, and $514 of expense associated with this plan in fiscal 2024, 2023, and 2022, respectively.
Qualified Defined Benefit Retirement Plan
The Company's qualified defined benefit retirement plan provided benefits to certain hourly employees at retirement based on length of service and date of retirement. The plan accruals were frozen as of April 16, 2018, and employees were permitted to participate in the Retirement Savings Plan, following that date. The Company terminated the defined benefit retirement 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 year ended June 30, 2023, which was recorded in other (income) expense, net in the statements of consolidated income. The Company recorded net periodic costs associated with this plan of $282 in fiscal 2022.
Retiree Health Care Benefits
The Company provides health care benefits, through third-party policies, to eligible retired employees who pay a specified monthly premium. Premium payments are based upon current insurance rates for the type of coverage provided and are adjusted annually. Certain monthly health care premium payments are partially subsidized by the Company. Additionally, in conjunction with a fiscal 1998 acquisition, the Company assumed the obligation for a post-retirement medical benefit plan which provides health care benefits to eligible retired employees at no cost to the individual. The Company recorded net periodic benefits associated with these plans of $186, $113, and $123 in fiscal 2024, 2023, and 2022, respectively.
The Company has determined that the related disclosures under ASC Topic 715 - Compensation, Retirement Benefits, for these post-employment benefit plans are not material to the consolidated financial statements.
Leases
The Company leases facilities for certain service centers, warehouses, distribution centers, and office space. The Company also leases office equipment and vehicles. All leases are classified as operating. The Company’s leases expire at various dates through 2036, with terms ranging from 1 year to 15 years. Many of the Company’s real estate leases contain renewal provisions to extend lease terms up to 5 years. The exercise of renewal options is solely at the Company’s discretion. The Company’s lease agreements do not contain material variable lease payments, residual value guarantees, or restrictive covenants. The Company does not recognize right-of-use assets or lease liabilities for short-term leases with initial terms of 12 months or less. Leased vehicles comprise the majority of the Company’s short-term leases. All other leases are recorded on the balance sheet with right-of-use assets representing the right to use the underlying asset for the lease term and lease liabilities representing lease payment obligations. The Company’s leases do not provide implicit rates; therefore the Company uses its incremental borrowing rate as the discount rate for measuring lease liabilities. Non-lease components are accounted for separately from lease components. The Company’s operating lease expense is recognized on a straight-line basis over the lease term and is recorded in selling, distribution, and administrative expense on the statements of consolidated income.
Recently Issued Accounting Guidance
In December 2023, the FASB issued its final standard to improve income tax disclosures. This standard, issued as ASU 2023-09, requires public business entities to annually disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. This update is effective for
annual periods beginning after December 15, 2024. The Company has not yet determined the impact of this pronouncement on its financial statements and related disclosures.
In November 2023, the FASB issued its final standard to improve reportable segment disclosures. This standard, issued as ASU 2023-07, requires enhanced disclosures about significant segment expenses, enhances interim disclosure requirements, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, provides new segment disclosure requirements for entities with a single reportable segment, and contains other disclosure requirements. This update is effective for all public entities for fiscal years beginning after December 15, 2023, with the interim disclosure requirements being effective for fiscal years beginning after December 15, 2024. The Company has not yet determined the impact of this pronouncement on its financial statements and related disclosures.
v3.24.2.u1
Revenue Recognition Revenue Recognition
12 Months Ended
Jun. 30, 2024
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 years ended June 30, 2024, 2023, and 2022. Other countries consist of Mexico, Australia, New Zealand, Singapore, and Costa Rica.
Year Ended June 30, 2024
Service Center Based DistributionEngineered SolutionsTotal
Geographic Areas:
United States$2,540,427 $1,391,762 $3,932,189 
Canada310,210  310,210 
Other Countries205,918 31,089 237,007 
Total$3,056,555 $1,422,851 $4,479,406 
Year Ended June 30, 2023
Service Center Based DistributionEngineered SolutionsTotal
Geographic Areas:
United States$2,441,281 $1,419,140 $3,860,421 
Canada315,499 — 315,499 
Other Countries210,062 26,812 236,874 
Total$2,966,842 $1,445,952 $4,412,794 
Year Ended June 30, 2022
Service Center Based DistributionEngineered SolutionsTotal
Geographic Areas:
United States$2,081,566 $1,218,184 $3,299,750 
Canada291,530 — 291,530 
Other Countries192,508 26,888 219,396 
Total$2,565,604 $1,245,072 $3,810,676 
The following tables present the Company’s percentage of revenue by reportable segment and major customer industry for the years ended June 30, 2024, 2023, and 2022:
 Year Ended June 30, 2024
Service Center Based DistributionEngineered SolutionsTotal
General Industry35.0 %38.7 %36.2 %
Industrial Machinery8.2 %24.2 %13.3 %
Food15.0 %2.8 %11.1 %
Metals10.9 %7.9 %10.0 %
Forest Products12.0 %3.2 %9.2 %
Chem/Petrochem2.7 %16.0 %6.9 %
Cement & Aggregate7.4 %1.3 %5.5 %
Oil & Gas5.1 %1.7 %4.0 %
Transportation3.7 %4.2 %3.8 %
Total100.0 %100.0 %100.0 %
 Year Ended June 30, 2023
Service Center Based DistributionEngineered SolutionsTotal
General Industry34.0 %41.2 %36.2 %
Industrial Machinery9.8 %26.1 %15.2 %
Food13.2 %2.7 %9.8 %
Metals10.6 %7.5 %9.6 %
Forest Products12.1 %2.8 %9.1 %
Chem/Petrochem2.8 %13.9 %6.4 %
Cement & Aggregate7.8 %1.3 %5.7 %
Oil & Gas6.0 %1.4 %4.5 %
Transportation3.7 %3.1 %3.5 %
Total100.0 %100.0 %100.0 %
Year Ended June 30, 2022
Service Center Based DistributionEngineered SolutionsTotal
General Industry34.9 %40.1 %36.7 %
Industrial Machinery10.3 %28.3 %16.2 %
Food12.6 %2.5 %9.3 %
Metals11.2 %7.4 %9.9 %
Forest Products10.8 %2.4 %8.0 %
Chem/Petrochem3.1 %13.8 %6.6 %
Cement & Aggregate7.6 %1.0 %5.5 %
Oil & Gas5.4 %1.2 %4.0 %
Transportation4.1 %3.3 %3.8 %
Total100.0 %100.0 %100.0 %
The following tables present the Company’s percentage of revenue by reportable segment and product line for the years ended June 30, 2024, 2023, and 2022:
 Year Ended June 30, 2024
Service Center Based DistributionEngineered SolutionsTotal
Power Transmission37.7 %11.3 %29.4 %
Fluid Power14.1 %36.3 %21.1 %
General Maintenance; Hose Products22.1 %17.2 %20.5 %
Bearings, Linear & Seals26.1 %0.4 %18.0 %
Specialty Flow Control %34.8 %11.0 %
Total100.0 %100.0 %100.0 %
 Year Ended June 30, 2023
Service Center Based DistributionEngineered SolutionsTotal
Power Transmission37.3 %10.6 %28.5 %
Fluid Power13.3 %34.3 %20.2 %
General Maintenance; Hose Products21.1 %19.3 %20.6 %
Bearings, Linear & Seals28.3 %0.4 %19.1 %
Specialty Flow Control— %35.4 %11.6 %
Total100.0 %100.0 %100.0 %
Year Ended June 30, 2022
Service Center Based DistributionEngineered SolutionsTotal
Power Transmission37.1 %10.6 %28.4 %
Fluid Power12.8 %37.2 %20.8 %
General Maintenance; Hose Products20.9 %18.9 %20.3 %
Bearings, Linear & Seals29.2 %0.4 %19.8 %
Specialty Flow Control— %32.9 %10.7 %
Total100.0 %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 consolidated balance sheet, is as follows:
June 30, 2024June 30, 2023$ Change% Change
Contract assets$12,648 $17,911 $(5,263)(29.4)%
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.
v3.24.2.u1
Business Combinations
12 Months Ended
Jun. 30, 2024
Business Combinations [Abstract]  
BUSINESS COMBINATIONS 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 2024 Acquisitions
On May 1, 2024, the Company acquired 100% of the outstanding shares of Grupo Kopar (Kopar), a Monterrey, Mexico based provider of emerging automation technologies and engineered solutions. Kopar is included in the Engineered Solutions segment. The purchase price for the acquisition was $61,225, net liabilities assumed were $2,529, and intangible assets including goodwill were $63,754 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.
On September 1, 2023, the Company acquired substantially all of the net assets of Bearing Distributors, Inc. (BDI), a Columbia, South Carolina based provider of bearings, power transmission, and industrial motion products, and related service and repair capabilities. BDI is included in the Service Center Based Distribution segment. The purchase price for the acquisition was $17,926, net tangible assets acquired were $4,086, and intangible assets including goodwill were $13,840 based upon preliminary estimated fair values at the acquisition date, which are subject to adjustment. The purchase price includes $1,800 of acquisition holdback payments, which are included in other current liabilities and other liabilities on the consolidated balance sheet as of June 30, 2024, and which will be paid on the first and second anniversaries of the acquisition date with interest at a fixed rate of 3.0% per annum. The Company funded this acquisition using available cash. The acquisition price and the results of operations for the acquired entity are not material in relation to the Company's consolidated financial statements.
On August 1, 2023, the Company acquired substantially all of the net assets of Cangro Industries, Inc. (Cangro), a Farmingdale, New York based provider of bearings, power transmission, industrial motion, and related service and repair capabilities. Cangro is included in the Service Center Based Distribution segment. The purchase price for the acquisition was $6,219, net tangible assets acquired were $2,175, and intangible assets including goodwill were $4,044 based upon preliminary estimated fair values at the acquisition date, which are subject to adjustment. The purchase price includes $930 of acquisition holdback payments, which are included in other current liabilities and other liabilities on the consolidated balance sheet as of June 30, 2024, and which will be paid on the first, second, and third anniversaries of the acquisition date with interest at a fixed rate of 1.0% 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.
Fiscal 2023 Acquisitions
On March 31, 2023, the Company acquired substantially all of the net assets of Advanced Motion Systems Inc. (AMS), a western New York based provider of automation products, services, and engineered solutions focused on a full range of machine vision, robotics, and motion control products and technologies. AMS is included in the Engineered Solutions segment. The purchase price for the acquisition was $10,118, net tangible assets acquired were $1,768, and intangible assets including goodwill were $8,350 based upon estimated fair values at the acquisition date. The Company funded this acquisition using available cash. The acquisition price and the results of operations for the acquired entity are not material in relation to the Company's consolidated financial statements.
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 $25,617, net tangible assets acquired were $3,639, and intangible assets including goodwill were $21,978 based upon estimated fair values at the acquisition date. The Company funded this acquisition using available cash. The acquisition price and the results of operations for the acquired entity are not material in relation to the Company's consolidated financial statements.
Fiscal 2022 Acquisitions
On August 18, 2021, the Company acquired substantially all of the net assets of R.R. Floody Company (Floody), a Rockford, Illinois 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 included $1,000 of acquisition holdback payments, of which $500 was paid during the year-ended June 30, 2023, and the remaining $500 was paid during the year-ended June 30, 2024. 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.
v3.24.2.u1
Inventories
12 Months Ended
Jun. 30, 2024
Inventory Disclosure [Abstract]  
INVENTORIES INVENTORIES
Inventories consist of the following:
June 30,20242023
U.S. inventories at average cost$557,313 $558,299 
Foreign inventories at average cost156,873 158,165 
714,186 716,464 
Less: Excess of average cost over LIFO cost for U.S. inventories225,928 215,280 
Inventories on consolidated balance sheets$488,258 $501,184 
The overall impact of LIFO layer liquidations increased gross profit by $1,160, $127, and $501 in fiscal 2024, fiscal 2023, and fiscal 2022, respectively.
v3.24.2.u1
Goodwill and Intangibles
12 Months Ended
Jun. 30, 2024
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 years ended June 30, 2024 and 2023 are as follows:
Service Center Based DistributionEngineered SolutionsTotal
Balance at July 1, 2022$211,010 $352,195 $563,205 
Goodwill acquired during the year— 14,517 14,517 
Other, primarily currency translation221 475 696 
Balance at June 30, 2023211,231 367,187 578,418 
Goodwill acquired during the year9,712 32,634 42,346 
Other, primarily currency translation(1,369) (1,369)
Balance at June 30, 2024$219,574 $399,821 $619,395 
During the first quarter of fiscal 2024, the Company recorded an adjustment to the preliminary estimated fair value of intangible assets related to the AMS acquisition. The fair value of the trade name was reduced by $1,249, with a corresponding increase to goodwill of $1,249. During the second quarter of fiscal 2024, the Company recorded an adjustment to the preliminary estimated fair value of intangible assets related to the BDI acquisition. The fair value of the trade name was reduced by $2,130, and the fair value of the customer relationship was increased by $70, with a corresponding combined increase to goodwill of $2,060.
The Company has eight (8) reporting units for which an annual goodwill impairment assessment was performed as of January 1, 2024.  Based on the assessment performed, the Company concluded that the fair value of all of the reporting units exceeded their carrying amount as of January 1, 2024, therefore no impairment exists.
At June 30, 2024 and 2023, 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:
June 30, 2024AmountAccumulated
Amortization
Net
Book Value
Finite-Lived Intangibles:
Customer relationships$394,114 $205,422 $188,692 
Trade names88,848 34,891 53,957 
Other4,946 1,725 3,221 
Total Intangibles$487,908 $242,038 $245,870 
June 30, 2023AmountAccumulated
Amortization
Net
Book Value
Finite-Lived Intangibles:
Customer relationships$364,572 $188,804 $175,768 
Trade names108,301 50,823 57,478 
Vendor relationships9,861 9,744 117 
Other3,347 1,161 2,186 
Total Intangibles$486,081 $250,532 $235,549 
Amounts include the impact of foreign currency translation. Fully amortized amounts are written off.
During fiscal 2024, the Company acquired identifiable intangible assets with an acquisition cost allocation and weighted-average life as follows:
Acquisition Cost AllocationWeighted-Average Life
Customer relationships$35,131 20.0
Trade names3,810 13.3
Other 1,600 6.7
Total Intangibles Acquired$40,541 18.9
Identifiable intangible assets with finite lives are reviewed for impairment when changes in conditions indicate carrying value may not be recoverable.
Amortization of identifiable intangibles totaled $28,923, $30,805, and $31,879 in fiscal 2024, 2023, and 2022, respectively, and is included in selling, distribution and administrative expense in the statements of consolidated income. Future amortization expense based on the Company’s identifiable intangible assets as of June 30, 2024 is estimated to be $29,300 for 2025, $27,300 for 2026, $25,200 for 2027, $23,400 for 2028, and $21,800 for 2029.
v3.24.2.u1
Debt
12 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
DEBT DEBT
A summary of long-term debt, including the current portion, follows:
June 30,20242023
Revolving credit facility$384,000 $383,592 
Trade receivable securitization facility188,300 188,300 
Series D Notes 25,000 
Series E Notes25,000 25,000 
Other105 356 
Total debt$597,405 $622,248 
Less: unamortized debt issuance costs71 152 
$597,334 $622,096 
Revolving Credit Facility & Term Loan
In December 2021, the Company entered into a five-year 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. The revolving credit facility 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. In May 2023, the Company and the administrative agent entered into an amendment to the credit facility to replace LIBOR with SOFR as a reference rate available for use in the computation of interest. 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 the net leverage ratio or SOFR plus a margin that ranges from 80 to 155 basis points based on the net leverage ratio. Available borrowing under this facility, without exercising the accordion feature and net of outstanding letters of credit of $200 to secure certain insurance obligations, totaled $515,800 and $516,208 at June 30, 2024 and June 30, 2023, respectively, and were available to fund future acquisitions or other capital and operating requirements. The interest rate on the revolving credit facility was 6.24% and 6.11% as of June 30, 2024 and June 30, 2023, respectively.
Additionally, the Company had letters of credit outstanding not associated with the revolving credit agreement, in the amount of $4,046 as of June 30, 2024 and June 30, 2023 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. On August 4, 2023, the Company amended the AR Securitization Facility, extended the term to August 4, 2026, and reduced drawn fees to 0.90% 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. In May 2023, the Company entered into an amendment to the AR Securitization Facility to replace LIBOR with SOFR as a reference rate available for use in the computation of interest, therefore borrowings under this facility carry variable interest rates tied to SOFR. The interest rate on the AR Securitization Facility as of June 30, 2024 and June 30, 2023 was 6.35% and 6.16%, respectively.
Unsecured Shelf Facility
At June 30, 2024 and June 30, 2023, the Company had borrowings outstanding under its unsecured shelf facility agreement with Prudential Investment Management of $25,000 and $50,000, 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 D" notes carried a fixed interest rate of 3.21%, and the remaining principal balance of $25,000 was paid 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.
Other Long-Term Borrowing
In 2014, the Company assumed $2,359 of debt as a part of the headquarters facility acquisition. The 1.50% fixed interest rate note is held by the State of Ohio Development Services Agency and matures in November 2024.
The table below summarizes the aggregate maturities of amounts outstanding under long-term borrowing arrangements for each of the next five years:
 Fiscal YearAggregate Maturity
2025$25,105 
2026— 
2027572,300 
2028— 
2029— 
Covenants
The credit facility and the unsecured shelf facility contain restrictive covenants regarding liquidity, net worth, financial ratios, and other covenants. At June 30, 2024, the most restrictive of these covenants required that the Company have net indebtedness less than 3.75 times consolidated income before interest, taxes, depreciation and amortization (as defined). At June 30, 2024, the Company's net indebtedness was less than 0.3 times consolidated income before interest, taxes, depreciation and amortization (as defined). The Company was in compliance with all financial covenants at June 30, 2024.
v3.24.2.u1
Derivatives Derivatives
12 Months Ended
Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Disclosure [Text Block] DERIVATIVES
Risk Management Objective of Using Derivatives
The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings.
Cash Flow Hedges of Interest Rate Risk
The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.
For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive loss and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive loss related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt.
In January 2019, the Company entered into an interest rate swap to mitigate variability in forecasted interest payments on $463,000 of the Company’s U.S. dollar-denominated unsecured variable rate debt. The 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 fiscal 2021, the Company completed a transaction to amend and extend the interest rate swap agreement which resulted in an extension of the maturity date to January 31, 2026 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. In May 2023, the Company entered into bilateral agreements with its swap counterparties to transition its interest rate swap agreements to SOFR, and further decreased the weighted average fixed pay rate to 1.58%. The Company made various ASC 848 elections related to changes in critical terms of the hedging relationship due to reference rate reform to not result in a dedesignation of the hedging relationship. As of May 31, 2023, the Company's interest rate swap agreement was indexed to SOFR.
The interest rate swap converted $384,000 of variable rate debt to a rate of 2.48% as of June 30, 2024 and to a rate of 2.59% as of June 30, 2023. The fair value (Level 2 in the fair value hierarchy) of the interest rate cash flow hedge was $18,081 and $27,044 as of June 30, 2024 and June 30, 2023, respectively, which is included in other current assets and other assets in the consolidated balance sheet. Amounts reclassified from other comprehensive (loss) income, before tax, to interest expense totaled $(18,683), $(7,285), and $11,361 for fiscal 2024, 2023, and 2022, respectively.
v3.24.2.u1
Fair Value Measurements
12 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Marketable securities measured at fair value at June 30, 2024 and June 30, 2023 totaled $22,519 and $18,637, 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 consolidated balance sheets and their fair values were valued using quoted market prices (Level 1 in the fair value hierarchy).
As of June 30, 2024, the carrying value of the Company's fixed interest rate debt outstanding under its unsecured shelf facility agreement with Prudential Investment Management approximates fair value (Level 2 in the fair value hierarchy).
The revolving credit facility contains variable interest rates and its carrying value approximates fair value (Level 2 in the fair value hierarchy).
v3.24.2.u1
Income Taxes
12 Months Ended
Jun. 30, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Income Before Income Taxes
The components of income before income taxes are as follows:
Year Ended June 30,202420232022
U.S.$467,785 $423,316 $287,367 
Foreign30,345 26,495 42,423 
Income before income taxes$498,130 $449,811 $329,790 
Provision
The provision for income taxes consists of:
Year Ended June 30,202420232022
Current:
Federal$86,501 $84,294 $40,608 
State and local23,016 19,026 10,188 
Foreign3,925 5,468 6,404 
Total current113,442 108,788 57,200 
Deferred:
Federal(791)(1,881)12,467 
State and local1,159 (84)2,659 
Foreign(1,442)(3,751)50 
Total deferred(1,074)(5,716)15,176 
Total$112,368 $103,072 $72,376 
Effective Tax Rates
The following reconciles the U.S. federal statutory income tax rate to the Company’s effective income tax rate:
Year Ended June 30,202420232022
Statutory income tax rate21.0 %21.0 %21.0 %
Effects of:
State and local taxes4.0 3.5 3.3 
Stock compensation(1.2)(1.0)(1.5)
GILTI/FDII(0.4)(0.2)0.2 
R & D credit(0.4)(0.4)(0.4)
U.S. tax on foreign income, net(0.1)— (0.4)
Impact of foreign operations0.3 0.2 0.4 
Non-deductibles/Deductible dividend0.9 0.6 0.2 
Interest deduction(0.4)(0.4)(0.6)
Valuation allowance(0.7)(0.6)(0.6)
Other, net(0.4)0.2 0.3 
Effective income tax rate22.6 %22.9 %21.9 %
Consolidated Balance Sheets
Significant components of the Company’s deferred tax assets and liabilities are as follows:
June 30,20242023
Deferred tax assets:
Compensation liabilities not currently deductible$18,646 $17,726 
Other expenses and reserves not currently deductible15,008 18,215 
Leases34,771 26,345 
Net operating loss carryforwards 6,340 6,809 
Capitalization of R&D costs17,584 11,646 
Other300 381 
Total deferred tax assets$92,649 $81,122 
Less: Valuation allowance(158)(3,459)
Deferred tax assets, net of valuation allowance$92,491 $77,663 
Deferred tax liabilities:
Inventories$(18,086)$(15,174)
Goodwill and intangibles(63,733)(52,463)
Leases(34,473)(26,179)
Hedging instrument(5,965)(9,081)
Depreciation and differences in property bases(10,506)(9,757)
Total deferred tax liabilities(132,763)(112,654)
Net deferred tax liabilities$(40,272)$(34,991)
Net deferred tax liabilities are classified as follows:
Other assets$11,306 $9,990 
Other liabilities(51,578)(44,981)
Net deferred tax liabilities$(40,272)$(34,991)
As of June 30, 2024 and 2023, the Company had foreign net operating loss carryforwards of approximately $24,627 and $29,374, respectively, the tax benefit of which is approximately $6,146 and $6,440, respectively. These loss carryforwards will expire at various dates beginning in 2036. As of June 30, 2024 and 2023, the Company had state net operating loss carryforwards, the tax benefit of which is approximately $194 and $466, respectively, which will expire at various dates beginning in 2034.
Valuation allowances are provided against deferred tax assets where it is considered more-likely-than-not that the Company will not realize the benefit of such assets. The remaining net deferred tax asset is the amount management believes is more-likely-than-not of being realized. The realization of these deferred tax assets can be impacted by changes to tax laws, statutory tax rates and future income levels. The Company evaluates the realization of its deferred tax assets each quarter throughout the year. During the years ended June 30, 2024 and 2023, the Company recorded a net tax benefit related to the change in valuation allowances of $3,283 and $2,657, respectively. The total valuation allowance provided against the deferred tax assets is $158 and $3,415 as of June 30, 2024 and 2023, respectively.
As of June 30, 2024, the Company had accumulated undistributed earnings of non-U.S. subsidiaries of approximately $186,420. The vast majority of such earnings have previously been subjected to the one-time transition tax or the Global Intangible Low Taxed Income (GILTI) inclusion. Therefore, any additional taxes due with respect to such earnings or the excess of the amount for financial reporting over the tax basis of our foreign investments would generally be limited to foreign withholding and state income taxes. In addition, we expect foreign tax credits would be available to either offset or partially reduce the tax cost in the event of a distribution. We intend, however, to indefinitely reinvest these earnings and expect future U.S. cash generation to be sufficient to meet future U.S. cash needs.
Unrecognized Income Tax Benefits
The Company and its subsidiaries file income tax returns in U.S. federal, various state, local, and foreign jurisdictions. The following table sets forth the changes in the amount of unrecognized tax benefits for the years ended June 30, 2024, 2023, and 2022:
Year Ended June 30,202420232022
Unrecognized Income Tax Benefits at beginning of the year$4,821 $4,926 $5,230 
Current year tax positions105 622 505 
Prior year tax positions(412)(86)(83)
Expirations of statutes of limitations(1,466)(641)(726)
Unrecognized Income Tax Benefits at end of year$3,048 $4,821 $4,926 
The Company recognizes interest and penalties related to uncertain tax positions in the provision for income taxes. During 2024, 2023, and 2022, the Company recognized $296, $239, and $(362) of expense (income), respectively, for interest and penalties related to unrecognized income tax benefits in its statements of consolidated income. The Company had a liability for penalties and interest of $1,411, $1,115, and $876 as of June 30, 2024, 2023, and 2022, respectively. The Company anticipates a decrease to unrecognized income tax benefits within the next twelve months of approximately $2,250, of which all would affect the effective income tax rate. Included in the balance of unrecognized income tax benefits at June 30, 2024, 2023, and 2022 are $2,946, $4,722, and $4,813 respectively, of income tax benefits that, if recognized, would affect the effective income tax rate.
The Company is subject to U.S. federal income tax examinations for the tax years 2019 through 2024 and to state and local income tax examinations for the tax years 2018 through 2024. In addition, the Company is subject to foreign income tax examinations for the tax years 2017 through 2024.
The Company’s unrecognized income tax benefits are included in other liabilities in the consolidated balance sheets since payment of cash is not expected within one year, or as a reduction of a deferred tax asset.
v3.24.2.u1
Shareholders' Equity
12 Months Ended
Jun. 30, 2024
Stockholders' Equity Note [Abstract]  
SHAREHOLDERS' EQUITY SHAREHOLDERS’ EQUITY
Treasury Shares
At June 30, 2024, 128 shares of the Company’s common stock held as treasury shares were restricted as collateral under escrow arrangements relating to change in control and director and officer indemnification agreements.
Accumulated Other Comprehensive Loss
Changes in the accumulated other comprehensive loss for the years ended June 30, 2024, 2023, and 2022, are composed of the following amounts, shown net of taxes:
Foreign currency translation adjustment Post-employment benefitsCash flow hedgeTotal accumulated other comprehensive loss
Balance at July 1, 2021$(80,838)$(3,673)$(8,581)$(93,092)
Other comprehensive (loss) income(9,900)2,142 19,770 12,012 
Amounts reclassified from accumulated other comprehensive loss— 228 8,557 8,785 
Net current-period other comprehensive (loss) income(9,900)2,370 28,327 20,797 
Balance at June 30, 2022(90,738)(1,303)19,746 (72,295)
Other comprehensive income7,639 1,082 13,759 22,480 
Amounts reclassified from accumulated other comprehensive loss— 24 (5,505)(5,481)
Net current-period other comprehensive income7,639 1,106 8,254 16,999 
Balance at June 30, 2023(83,099)(197)28,000 (55,296)
Other comprehensive (loss) income(12,467)(101)4,499 (8,069)
Amounts reclassified from accumulated other comprehensive loss (93)(14,108)(14,201)
Net current-period other comprehensive loss(12,467)(194)(9,609)(22,270)
Balance at June 30, 2024$(95,566)$(391)$18,391 $(77,566)
Other Comprehensive (Loss) Income
Details of other comprehensive (loss) income are as follows:
Year Ended June 30,202420232022
Pre-Tax AmountTax (Benefit) ExpenseNet AmountPre-Tax AmountTax Expense (Benefit)Net AmountPre-Tax AmountTax ExpenseNet Amount
Foreign currency translation adjustments
$(12,544)$(77)$(12,467)$7,723 $84 $7,639 $(9,862)$38 $(9,900)
Post-employment benefits:
Actuarial (loss) gain on
    re-measurement
(134)(33)(101)405 100 305 2,839 697 2,142 
Reclassification of actuarial losses and prior service cost into other (income) expense, net and included in net periodic pension costs(117)(24)(93)36 12 24 300 72 228 
Termination of pension plan   1,031 254 777 — — — 
Unrealized gain on cash flow hedge5,958 1,459 4,499 18,174 4,415 13,759 26,204 6,434 19,770 
Reclassification of interest from cash flow hedge into interest expense
(18,683)(4,575)(14,108)(7,285)(1,780)(5,505)11,361 2,804 8,557 
Other comprehensive (loss) income$(25,520)$(3,250)$(22,270)$20,084 $3,085 $16,999 $30,842 $10,045 $20,797 
Net Income Per Share
Basic net income per share is based on the weighted-average number of common shares outstanding. Diluted net income per share includes the dilutive effect of potential common shares outstanding. Under the two-class method of computing net income per share, non-vested share-based payment awards that contain rights to receive non-forfeitable dividends are considered participating securities. The Company’s participating securities include Restricted Stock Units ("RSUs") and restricted stock awards. The Company calculated basic and diluted net income per share under both the treasury stock method and the two-class method. For the years presented there were no material differences in the net income per share amounts calculated using the two methods. Accordingly, the treasury stock method is disclosed below.
The following table presents amounts used in computing net income per share and the effect on the weighted-average number of shares of dilutive potential common shares:
Year Ended June 30,202420232022
Net Income$385,762 $346,739 $257,414 
Average Shares Outstanding: 
Weighted-average common shares outstanding for basic computation38,672 38,592 38,471 
Dilutive effect of potential common shares585 628 634 
Weighted-average common shares outstanding for dilutive computation39,257 39,220 39,105 
Net Income Per Share — Basic$9.98 $8.98 $6.69 
Net Income Per Share — Diluted$9.83 $8.84 $6.58 
Stock awards relating to 99, 84 and 106 shares of common stock were outstanding at June 30, 2024, 2023 and 2022, respectively, but were not included in the computation of diluted earnings per share for the fiscal years then ended as they were anti-dilutive.
v3.24.2.u1
Share - Based Compensation
12 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement, Noncash Expense [Abstract]  
SHARE-BASED COMPENSATION SHARE-BASED COMPENSATION
Share-Based Incentive Plans
Following approval by the Company's shareholders in October 2023, the 2023 Long-Term Performance Plan (the "2023 Plan") replaced the 2019 Long-Term Performance Plan. The 2023 Plan, which expires in 2028, provides for granting of SARs, stock options, stock awards, cash awards, and such other awards or combination thereof as the Executive Organization and Compensation Committee or, in the case of director awards, the Corporate Governance & Sustainability Committee of the Board of Directors (together referred to as the "Committee") may determine to officers, other key employees and members of the Board of Directors. Grants are generally made at regularly scheduled committee meetings. Compensation costs charged to expense under award programs paid (or to be paid) with shares (including SARs, performance shares, restricted stock, and RSUs) are summarized in the table below:
Year Ended June 30,202420232022
SARs$3,448 $2,785 $3,284 
Performance shares4,232 5,302 4,549 
Restricted stock and RSUs5,264 4,274 4,009 
Total compensation costs under award programs$12,944 $12,361 $11,842 
Such amounts are included in selling, distribution, and administrative expense in the accompanying statements of consolidated income. The total income tax benefit recognized in the statements of consolidated income for share-based compensation plans was $5,885, $7,886, and $5,105 for fiscal 2024, 2023, and 2022, respectively. It has been the practice of the Company to issue shares from treasury to satisfy requirements of awards paid with shares.

The aggregate unrecognized compensation cost for share-based award programs with the potential to be paid at June 30, 2024 is summarized in the table below:
June 30,2024Average Expected Period of Expected Recognition (Years)
SARs$5,113 2.6
Performance shares6,415 1.7
Restricted stock and RSUs3,050 2.1
Total unrecognized compensation costs under award programs$14,578 2.1
Cost of these programs will be recognized as expense over the weighted-average remaining vesting period of 2.1 years. The aggregate number of shares of common stock which may be awarded under the 2023 Plan is 1,600; shares available for future grants at June 30, 2024 were 1,584.
Stock Appreciation Rights and Stock Options
The weighted-average assumptions used for SARs grants issued in fiscal 2024, 2023, and 2022 are:
202420232022
Expected life, in years6.06.26.4
Risk free interest rate4.1 %2.9 %1.0 %
Dividend yield1.0 %1.3 %1.5 %
Volatility37.0 %35.5 %34.3 %
Per share fair value of SARs granted during the year$55.65$35.98$26.18
The expected life is based upon historical exercise experience of the officers, other key employees, and members of the Board of Directors. The risk free interest rate is based upon U.S. Treasury zero-coupon bonds with remaining terms equal to the expected life of the SARs. The assumed dividend yield has been estimated based upon the Company’s historical results and expectations for changes in dividends and stock prices. The volatility assumption is calculated based upon historical daily price observations of the Company’s common stock for a period equal to the expected life.
SARs are redeemable solely in Company common stock. The exercise price of stock option awards may be settled by the holder with cash or by tendering Company common stock.
A summary of SARs and stock options activity is presented below:
SharesWeighted-Average
Exercise Price
Year Ended June 30, 2024
(Shares in thousands)
Outstanding, beginning of year816 $70.11 
Granted102 143.72 
Exercised(188)61.25 
Forfeited(18)83.67 
Outstanding, end of year712 $82.65 
Exercisable at end of year472 $65.93 
Expected to vest at end of year706 $82.29 
The weighted-average remaining contractual terms for SARs and stock options outstanding, exercisable, and expected to vest at June 30, 2024 were 5.8, 4.6, and 5.8 years, respectively. The aggregate intrinsic values of SARs and stock options outstanding, exercisable, and expected to vest at June 30, 2024 were $79,326 $60,488, and $78,921, respectively. The aggregate intrinsic value of the SARs and stock options exercised during fiscal 2024, 2023, and 2022 was $19,700, $20,170, and $17,015, respectively.
The total fair value of shares vested during fiscal 2024, 2023, and 2022 was $2,550, $2,691, and $2,341, respectively.
Performance Shares
Performance shares are paid in shares of Applied stock at the end of a three-year period provided the Company achieves goals established by the Committee. The number of Applied shares payable will vary depending on the level of the goals achieved.
A summary of non-vested performance shares activity at June 30, 2024 is presented below:
Shares
Weighted-Average
Grant-Date
Fair Value
Year Ended June 30, 2024
(Shares in thousands)
Non-vested, beginning of year159 $66.74 
Awarded42 99.79 
Vested(100)53.50 
Non-vested, end of year101 $93.73 
The Committee set three one-year goals for each of the 2024, 2023, and 2022 grants. Each fiscal year during the three-year term has its own separate goals, tied to the Company’s earnings before interest, tax, depreciation, and amortization (EBITDA) and after-tax return on assets (ROA). Achievement during any particular fiscal year is awarded and “banked” for payout at the end of the three-year term. For the outstanding grants as of June 30, 2024, the maximum number of shares that could be earned in future periods was 53.
Restricted Stock and Restricted Stock Units
Under the 2023 Plan, restricted stock award recipients have voting rights with respect to their shares, but are restricted from selling or transferring the shares prior to vesting; dividends are accrued and paid upon vesting. Restricted stock awards vest over periods of one to four years. RSUs are grants valued in shares of Applied stock, but shares are not issued until the grants vest three to five years from the award date, assuming continued employment with Applied; dividend equivalents on RSUs are accrued and paid upon vesting.
A summary of the status of the Company’s non-vested restricted stock and RSUs at June 30, 2024 is presented below:
Shares
Weighted-Average
Grant-Date
Fair Value
Year Ended June 30, 2024
(Share amounts in thousands)
Non-vested, beginning of year143 $83.35 
Granted29 151.53 
Forfeitures(4)84.96 
Vested(38)81.50 
Non-vested, end of year130 $99.05 
v3.24.2.u1
Leases
12 Months Ended
Jun. 30, 2024
Leases [Abstract]  
Lessee, Operating Leases LEASES
The Company’s operating lease expense is recognized on a straight-line basis over the lease term and is recorded in selling, distribution and administrative expense on the statements of consolidated income. Operating lease costs and short-term lease costs were $38,905 and $12,683, respectively, for the year ended June 30, 2024 and $35,982 and $9,153, respectively, for the year ended June 30, 2023. Variable lease costs and sublease income were not material.
Information related to operating leases is as follows:
June 30,20242023
Operating lease assets, net$133,289 $100,677 
Operating lease liabilities
Other current liabilities$33,466 $31,173 
Other liabilities104,143 72,704 
Total operating lease liabilities$137,609 $103,877 
June 30,20242023
Weighted average remaining lease term (years)5.54.9
Weighted average incremental borrowing rate4.51 %3.67 %
Year Ended June 30,20242023
Cash paid for operating leases
$38,130 $35,545 
Right of use assets obtained in exchange for new operating lease liabilities$67,535 $30,605 

The table below summarizes the aggregate maturities of liabilities pertaining to operating leases with terms greater than one year for each of the next five years:
Fiscal YearMaturity of Operating Lease Liabilities
2025$38,617 
202633,357 
202726,843 
202819,466 
202914,208 
Thereafter23,456 
Total lease payments155,947 
Less interest18,338 
Present value of lease liabilities$137,609 
The Company maintains lease agreements for many of the operating facilities of businesses it acquires from previous owners. In many cases, the previous owners of the business acquired become employees of Applied and occupy
management positions within those businesses. The payments under lease agreements of this nature totaled $2,250 in 2024, $1,500 in 2023, and $2,100 in 2022.
v3.24.2.u1
Segment Information
12 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The Company's reportable segments are: Service Center Based Distribution and Engineered Solutions. 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, and smart technologies.
The accounting policies of the Company’s reportable segments are generally the same as those described in Note 1. Intercompany sales, primarily from the Engineered Solutions segment to the Service Center Based Distribution segment of $52,574, $48,450, and $37,163, in 2024, 2023, and 2022, respectively, have been eliminated in the following table.
Segment Financial Information
Service Center
Based Distribution
Engineered SolutionsTotal
Year Ended June 30, 2024
Net sales$3,056,555 $1,422,851 $4,479,406 
Operating income for reportable segments400,182 206,844 607,026 
Assets used in the business1,865,269 1,086,641 2,951,910 
Depreciation and amortization of property17,700 5,731 23,431 
Capital expenditures18,040 6,824 24,864 
Year Ended June 30, 2023
Net sales$2,966,842 $1,445,952 $4,412,794 
Operating income for reportable segments373,439 203,404 576,843 
Assets used in the business1,736,393 1,006,939 2,743,332 
Depreciation and amortization of property17,932 4,334 22,266 
Capital expenditures15,390 11,086 26,476 
Year Ended June 30, 2022
Net sales$2,565,604 $1,245,072 $3,810,676 
Operating income for reportable segments301,881 156,644 458,525 
Assets used in the business1,455,293 997,295 2,452,588 
Depreciation and amortization of property17,509 4,167 21,676 
Capital expenditures14,486 3,638 18,124 
A reconciliation of operating income for reportable segments to the consolidated income before income taxes
is as follows:
Year Ended June 30,202420232022
Operating income for reportable segments$607,026 $576,843 $458,525 
Adjustments for:
Intangible amortization — Service Center Based Distribution3,188 2,857 3,435 
Intangible amortization — Engineered Solutions25,735 27,948 28,444 
Corporate and other expense, net82,280 72,887 68,788 
Total operating income495,823 473,151 357,858 
Interest expense, net2,831 21,639 26,263 
Other (income) expense, net(5,138)1,701 1,805 
Income before income taxes$498,130 $449,811 $329,790 
Fluctuations in corporate and other expense, net, are 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.
Geographic Information
Long-lived assets are based on physical locations and are composed of the net book value of property and right of use assets. Information by geographic area is as follows:
June 30,20242023
Long-Lived Assets:
United States$209,987 $176,025 
Canada26,436 29,817 
Other Countries15,393 9,876 
Total$251,816 $215,718 
v3.24.2.u1
Other Income, Net
12 Months Ended
Jun. 30, 2024
Other Income and Expenses [Abstract]  
OTHER EXPENSE (INCOME), NET OTHER (INCOME) EXPENSE, NET
Other (income) expense, net, consists of the following:
Year Ended June 30,202420232022
Unrealized (gain) loss on assets held in rabbi trust for a non-qualified deferred compensation plan$(3,300)$(2,223)$2,612 
Foreign currency transaction (gains) losses(1,099)3,284 (65)
Net other periodic post-employment costs114 1,470 610 
Life insurance income, net(855)(668)(1,374)
Other, net2 (162)22 
Total other (income) expense, net$(5,138)$1,701 $1,805 
v3.24.2.u1
Subsequent Events Subsequent Events
12 Months Ended
Jun. 30, 2024
Subsequent Events [Abstract]  
Subsequent Events [Text Block] SUBSEQUENT EVENTS
We have evaluated events and transactions occurring subsequent to June 30, 2024 through the date the financial statements were issued.
On August 1, 2024, the Company acquired substantially all of the net assets of Total Machine Solutions (TMS) and 100% of the outstanding shares of Stanley Proctor. TMS is a Fairfield, NJ provider of electrical and mechanical power transmission products and solutions including bearings, drives, motors, conveyor components, and related repair services. The purchase price for TMS was $6,500 and it is included in the Service Center Based Distribution segment. Stanley Proctor, based in Twinsburg, OH, provides hydraulic, pneumatic, measurement, control, and instrumentation components, as well as fluid power engineered systems. The purchase price for Stanley Proctor was $3,200 and it is included in the Engineered Solutions segment. The Company funded both acquisitions using available cash.
v3.24.2.u1
Schedule II - Valuation and Qualifying Accounts
12 Months Ended
Jun. 30, 2024
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
VALUATION AND QUALIFYING ACCOUNTS
APPLIED INDUSTRIAL TECHNOLOGIES, INC. & SUBSIDIARIES
SCHEDULE II
VALUATION AND QUALIFYING ACCOUNTS
YEARS ENDED JUNE 30, 2024, 2023, AND 2022
(in thousands)
COLUMN ACOLUMN BCOLUMN C COLUMN D COLUMN E
DESCRIPTIONBalance at Beginning of Period(Deductions) Additions Charged to Cost and Expenses (Deductions) Additions Charged to Other Accounts Deductions from Reserve Balance at End of Period
Year Ended June 30, 2024       
Reserve deducted from assets to which it applies —
Accounts receivable:
Allowance for doubtful accounts$22,334 $(205)$— $9,066 (B)$13,063 
Returns reserve12,635 — (1,820)(A)— 10,815 
$34,969 $(205)$(1,820)$9,066 $23,878 
Year Ended June 30, 2023       
Reserve deducted from assets to which it applies —
Accounts receivable:
Allowance for doubtful accounts$17,522 $5,619 $— $807 (B)$22,334 
Returns reserve10,522 — 2,113 (A)— 12,635 
$28,044 $5,619 $2,113 $807 $34,969 
Year Ended June 30, 2022       
Reserve deducted from assets to which it applies —
Accounts receivable:
Allowance for doubtful accounts$16,455 $3,193 $— $2,126 (B)$17,522 
Returns reserve9,772 — 750 (A)— 10,522 
$26,227 $3,193 $750 $2,126 $28,044 
(A)Amounts in the years ending June 30, 2024, 2023 and 2022 represent reserves recorded for the return of merchandise by customers. The Company adopted ASC 606 - Revenue from Contracts with Customers effective July 1, 2018 which requires the Company's sales returns reserve to be established at the gross sales value with an asset established for the value of the expected product to be returned.
(B)Amounts represent uncollectible accounts charged off.
v3.24.2.u1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Pay vs Performance Disclosure      
Net income per the statements of consolidated income $ 385,762 $ 346,739 $ 257,414
v3.24.2.u1
Insider Trading Arrangements
3 Months Ended
Jun. 30, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.2.u1
Business and Accounting Policies (Policies)
12 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Business
Business
Applied Industrial Technologies, Inc. and subsidiaries (the “Company,” “Applied,” "us," "we," or "our") is a leading value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies. Our leading brands, specialized services, and comprehensive knowledge serve MRO (Maintenance, Repair & Operations) and OEM (Original Equipment Manufacturer) end users in virtually all industrial markets through our multi-channel capabilities that provide choice, convenience, and expertise. Although the Company does not generally manufacture the products it sells, it does assemble and repair certain products and systems.
Consolidation
Consolidation
The consolidated financial statements include the accounts of Applied Industrial Technologies, Inc. and its subsidiaries. Intercompany transactions and balances have been eliminated in consolidation.
Foreign Currency
Foreign Currency
The financial statements of the Company’s Canadian, Mexican, Australian, and New Zealand subsidiaries are measured using local currencies as their functional currencies. Assets and liabilities are translated into U.S. dollars at current exchange rates, while income and expenses are translated at average exchange rates. Translation gains and losses are reported in other comprehensive income (loss) in the statements of consolidated comprehensive income. Gains and losses resulting from transactions denominated in foreign currencies are included in the statements of consolidated income as a component of other expense (income), net.
Estimates
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the period. Actual results may differ from the estimates and assumptions used in preparing the consolidated financial statements.
Cash and Cash Equivalents
Cash and Cash Equivalents
The Company considers all short-term, highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents are carried at cost, which approximates fair value.
Marketable Securities
Marketable Securities
The primary marketable security investments of the Company include money market and mutual funds held in a rabbi trust for a non-qualified deferred compensation plan. These are included in other assets in the consolidated balance sheets, are classified as trading securities, and are reported at fair value based on quoted market prices. Changes in the fair value of the investments during the period are recorded in other expense (income), net in the statements of consolidated income.
Concentration Risk, Credit Risk, Policy
Concentration of Credit Risk
The Company has a broad customer base representing many diverse industries across North America, Australia, New Zealand, Singapore, and Costa Rica. As such, the Company does not believe that a significant concentration of credit risk exists in its accounts receivable. The Company’s cash and cash equivalents consist of deposits with commercial banks and regulated non-bank subsidiaries. While the Company monitors the creditworthiness of these institutions, a crisis in the financial systems could limit access to funds and/or result in the loss of principal. The terms of these deposits and investments provide that all monies are available to the Company upon demand.
Accounts Receivable
Accounts Receivable
Accounts receivable are stated at their estimated net realizable value and consist of amounts billed or billable and currently due from customers.
Allowances for Doubtful Accounts
Allowances for Doubtful Accounts
The Company maintains an allowance for doubtful accounts, which reflects management’s best estimate of probable losses based on an analysis of customer accounts, known troubled accounts, historical experience with write-offs, and other currently available evidence. Initially, the Company estimates an allowance for doubtful accounts as a percentage of net sales based on historical bad debt experience. This initial estimate is adjusted based on recent trends of customers and industries estimated to be greater credit risks, trends within the entire customer
pool, and changes in the overall aging of accounts receivable. Accounts are written off against the allowance when it becomes evident collection will not occur. While the Company has a large customer base that is geographically dispersed, a general economic downturn in any of the industry segments in which the Company operates could result in higher than expected defaults, and therefore, the need to revise estimates for bad debts. The allowance for doubtful accounts was $13,063 and $22,334 at June 30, 2024 and June 30, 2023, respectively.
Inventories
Inventories
Inventories are valued at average cost, using the last-in, first-out (LIFO) method for U.S. inventories and the average cost method for foreign inventories. The Company adopted the link chain dollar value LIFO method of accounting for U.S. inventories in fiscal 1974. At June 30, 2024, approximately 14.9% of the Company’s domestic inventory dollars relate to LIFO layers added in the 1970s. The Company maintains five LIFO pools based on the following product groupings: bearings, power transmission products, rubber products, fluid power products, and other products. LIFO layers and/or liquidations are determined consistently year-to-year.
The Company evaluates the recoverability of its slow moving and inactive inventories at least quarterly. The Company estimates the recoverable cost of such inventory by product type while considering factors such as its age, historic and current demand trends, the physical condition of the inventory, as well as assumptions regarding future demand. The Company’s ability to recover its cost for slow moving or obsolete inventory can be affected by such factors as general market conditions, future customer demand, and relationships with suppliers. Historically, the Company’s inventories have demonstrated long shelf lives, are not highly susceptible to obsolescence, and, in certain instances, can be eligible for return under supplier return programs.
Supplier Purchasing Programs
Supplier Purchasing Programs
The Company enters into agreements with certain suppliers providing inventory purchase incentives. The Company’s inventory purchase incentive arrangements are unique to each supplier and are generally annual programs ending at either the Company’s fiscal year end or the supplier’s year end; however, program length and ending dates can vary. Incentives are received in the form of cash or credits against purchases upon attainment of specified purchase volumes and are received either monthly, quarterly, or annually. The incentives are generally a specified percentage of the Company’s net purchases based upon achieving specific purchasing volume levels. These percentages can increase or decrease based on changes in the volume of purchases. The Company accrues for the receipt of these inventory purchase incentives based upon cumulative purchases of inventory. The percentage level utilized is based upon the estimated total volume of purchases expected during the life of the program. Supplier programs are analyzed each quarter to determine the appropriateness of the amount of purchase incentives accrued. Upon program completion, differences between estimates and actual incentives subsequently received have not been material. Benefits under these supplier purchasing programs are recognized under the Company’s inventory accounting methods as a reduction of cost of sales when the inventories representing these purchases are recorded as cost of sales. Accrued incentives expected to be settled as a credit against future purchases are reported on the consolidated balance sheets as an offset to amounts due to the related supplier.
Property and related Depreciation and Amortization
Property and Related Depreciation and Amortization
Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets and is included in selling, distribution, and administrative expense in the accompanying statements of consolidated income. Buildings, building improvements and leasehold improvements are depreciated over ten to thirty years or the life of the lease if a shorter period, and equipment is depreciated over three to ten years. The Company capitalizes internal use software development costs in accordance with guidance on accounting for costs of computer software developed or obtained for internal use. Amortization of software begins when it is ready for its intended use, and is computed on a straight-line basis over the estimated useful life of the software, generally not to exceed twelve years. Capitalized software and hardware costs are classified as property on the consolidated balance sheets. The carrying values of property and equipment are reviewed for impairment when events or changes in circumstances indicate that the asset group's recorded value cannot be recovered from undiscounted future cash flows. Impairment losses, if any, would be measured based upon the difference between the carrying amount of an asset group and its fair value.
Goodwill and Intangible Assets
Goodwill and Intangible Assets
Goodwill is recognized as the excess cost of an acquired entity over the net amount assigned to assets acquired and liabilities assumed. Goodwill is not amortized. Goodwill is reviewed for impairment annually as of January 1 or whenever changes in conditions indicate an evaluation should be completed. These conditions could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. The Company utilizes the income and market approaches to determine the fair value of reporting units. Evaluating impairment requires significant judgment by management,
including estimated future operating results, estimated future cash flows, the long-term rate of growth of the business, and determination of an appropriate discount rate. While the Company uses available information to prepare the estimates and evaluations, actual results could differ significantly.
The Company recognizes acquired identifiable intangible assets such as customer relationships, trade names, vendor relationships, and non-competition agreements apart from goodwill. Customer relationship identifiable intangibles are amortized using the sum-of-the-years-digits method or the expected cash flow method over estimated useful lives consistent with assumptions used in the determination of their value. Amortization of all other finite-lived identifiable intangible assets is computed using the straight-line method over the estimated period of benefit. Amortization of identifiable intangible assets is included in selling, distribution and administrative expense in the accompanying statements of consolidated income. Identifiable intangible assets with finite lives are reviewed for impairment when changes in conditions indicate carrying value may not be recoverable. If circumstances require a finite-lived intangible asset be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by the asset to the carrying value of the asset. If the carrying value of the finite-lived intangible asset is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value determined through a discounted cash flow model. Identifiable intangible assets with indefinite lives are reviewed for impairment on an annual basis or whenever changes in conditions indicate an evaluation should be completed. The Company does not currently have any indefinite-lived identifiable intangible assets.
Self-Insurance Liabilities
Self-Insurance Liabilities
The Company maintains business insurance programs with significant self-insured retention covering workers’ compensation, business, automobile, general product liability and other claims. The Company accrues estimated losses including those incurred but not reported using actuarial calculations, models and assumptions based on historical loss experience. The Company also maintains a self-insured health benefits plan which provides medical benefits to U.S. based employees electing coverage under the plan. The Company estimates its reserve for all unpaid medical claims, including those incurred but not reported, based on historical experience, adjusted as necessary based upon management’s reasoned judgment.
Revenue Recognition
Revenue Recognition
The Company primarily sells purchased products distributed through its network of service centers and recognizes revenue at a point in time when control of the product transfers to the customer, typically upon shipment from an Applied facility or directly from a supplier. For products that ship directly from suppliers to customers, Applied generally acts as the principal in the transaction and recognizes revenue on a gross basis. Revenue recognized over time is not significant. Revenue is measured as the amount of consideration expected to be received in exchange for the products and services provided, net of allowances for product returns, variable consideration, and any taxes collected from customers that will be remitted to governmental authorities. Shipping and handling costs are recognized in net sales when they are billed to the customer. The Company has elected to account for shipping and handling activities as fulfillment costs. There are no significant costs associated with obtaining customer contracts.
Payment terms with customers vary by the type and location of the customer and the products or services offered. The Company does not adjust the promised amount of consideration for the effects of significant financing components based on the expectation that the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Arrangements with customers that include payment terms extending beyond one year are not significant.
The Company’s products are generally sold with a right of return and may include variable consideration in the form of incentives, discounts, credits, or rebates. Product returns are estimated based on historical return rates. The returns reserve was $10,815 and $12,635 at June 30, 2024 and June 30, 2023, respectively.
The Company estimates and recognizes variable consideration based on historical experience to determine the expected amount to which the Company will be entitled in exchange for transferring the promised goods or services to a customer. The Company records variable consideration as an adjustment to the transaction price in the period it is incurred. The realization of variable consideration occurs within a short period of time from product delivery; therefore, the time value of money effect is not significant.
Shipping and Handling Costs
The Company records freight payments to third parties in cost of sales and internal delivery costs in selling, distribution and administrative expense in the accompanying statements of consolidated income. Internal delivery costs in selling, distribution and administrative expense were approximately $24,620, $22,170, and $17,890 for the fiscal years ended June 30, 2024, 2023, and 2022, respectively.
Income Taxes
Income Taxes
Income taxes are determined based upon income and expenses recorded for financial reporting purposes. Deferred income taxes are recorded for estimated future tax effects of differences between the bases of assets and liabilities for financial reporting and income tax purposes, giving consideration to enacted tax laws. Uncertain tax positions meeting a more-likely-than-not recognition threshold are recognized in accordance with Accounting Standards Codification (ASC) Topic 740 - Income Taxes. The Company recognizes accrued interest and penalties related to unrecognized income tax benefits in the provision for income taxes.
Share-Based Compensation
Share-Based Compensation
Share-based compensation represents the cost related to share-based awards granted to employees under the 2023 Long-Term Performance Plan, the 2019 Long-Term Performance Plan, or the 2015 Long-Term Performance Plan. The Company measures share-based compensation cost at the grant date, based on the estimated fair value of the award and recognizes the cost over the requisite service period. Non-qualified stock appreciation rights (SARs) and stock options are granted with an exercise price equal to the closing market price of the Company’s common stock at the date of grant and the fair values are determined using a Black-Scholes option pricing model, which incorporates assumptions regarding the expected volatility, the expected option life, the risk-free interest rate and the expected dividend yield. SARs and stock option awards generally vest over four years of continuous service and have ten-year contractual terms. The fair value of restricted stock awards, restricted stock units (RSUs), and performance shares are based on the closing market price of Company common stock on the grant date.
Treasury Shares
Treasury Shares
Shares of common stock repurchased by the Company are recorded at cost as treasury shares and result in a reduction of shareholders’ equity in the consolidated balance sheets. The Company uses the weighted-average cost method for determining the cost of shares reissued. The difference between the cost of the shares and the reissuance price is added to or deducted from additional paid-in capital.
Derivatives
Derivatives
The Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting, and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.
In accordance with the FASB’s fair value measurement guidance, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio.
Retirement Savings Plan, Deferred Compensation Plans, and Post-employment Benefit Plans
Retirement Savings Plan
Substantially all U.S. employees participate in the Applied Industrial Technologies, Inc. Retirement Savings Plan, a 401(k) plan. Participants may elect 401(k) contributions of up to 50% of their compensation, subject to Internal Revenue Code maximums. The Company partially matches 401(k) contributions by participants. The Company’s expense for matching of employees’ 401(k) contributions was $9,670, $9,989 and $9,149 during 2024, 2023 and 2022, respectively.
Deferred Compensation Plans
The Company maintains deferred compensation plans that enable certain employees of the Company to defer receipt of a portion of their compensation. Rabbi trusts have been established to hold and provide a measure of security for investments that fund benefits payments under these plans. Assets held in these rabbi trusts consist of investments in money market and mutual funds and Company common stock.
Post-employment Benefit Plans
The Company provides the following post-employment benefits which, except for the Qualified Defined Benefit Retirement Plan and Key Executive Restoration Plan, are unfunded:
Supplemental Executive Retirement Benefits Plan
The Company has a non-qualified pension plan to provide supplemental retirement benefits to certain officers. Benefits are payable and determinable at retirement based upon a percentage of the participant’s historical compensation. The Executive Organization and Compensation Committee of the Board of Directors froze participant benefits (credited service and final average earnings) and entry into the Supplemental Executive Retirement Benefits Plan (SERP) effective December 31, 2011. The Company recorded net periodic benefit costs associated with the SERP of $289, $399, and $450 in fiscal 2024, 2023, and 2022, respectively. The Company expects to make payments of approximately $1,300 under the SERP in fiscal 2025 and 2026, respectively.
Key Executive Restoration Plan
In fiscal 2012, the Company adopted the Key Executive Restoration Plan (KERP), a funded, non-qualified deferred compensation plan, to replace the SERP. The Company recorded $446, $456, and $514 of expense associated with this plan in fiscal 2024, 2023, and 2022, respectively.
Qualified Defined Benefit Retirement Plan
The Company's qualified defined benefit retirement plan provided benefits to certain hourly employees at retirement based on length of service and date of retirement. The plan accruals were frozen as of April 16, 2018, and employees were permitted to participate in the Retirement Savings Plan, following that date. The Company terminated the defined benefit retirement 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 year ended June 30, 2023, which was recorded in other (income) expense, net in the statements of consolidated income. The Company recorded net periodic costs associated with this plan of $282 in fiscal 2022.
Retiree Health Care Benefits
The Company provides health care benefits, through third-party policies, to eligible retired employees who pay a specified monthly premium. Premium payments are based upon current insurance rates for the type of coverage provided and are adjusted annually. Certain monthly health care premium payments are partially subsidized by the Company. Additionally, in conjunction with a fiscal 1998 acquisition, the Company assumed the obligation for a post-retirement medical benefit plan which provides health care benefits to eligible retired employees at no cost to the individual. The Company recorded net periodic benefits associated with these plans of $186, $113, and $123 in fiscal 2024, 2023, and 2022, respectively.
The Company has determined that the related disclosures under ASC Topic 715 - Compensation, Retirement Benefits, for these post-employment benefit plans are not material to the consolidated financial statements.
Leases
Leases
The Company leases facilities for certain service centers, warehouses, distribution centers, and office space. The Company also leases office equipment and vehicles. All leases are classified as operating. The Company’s leases expire at various dates through 2036, with terms ranging from 1 year to 15 years. Many of the Company’s real estate leases contain renewal provisions to extend lease terms up to 5 years. The exercise of renewal options is solely at the Company’s discretion. The Company’s lease agreements do not contain material variable lease payments, residual value guarantees, or restrictive covenants. The Company does not recognize right-of-use assets or lease liabilities for short-term leases with initial terms of 12 months or less. Leased vehicles comprise the majority of the Company’s short-term leases. All other leases are recorded on the balance sheet with right-of-use assets representing the right to use the underlying asset for the lease term and lease liabilities representing lease payment obligations. The Company’s leases do not provide implicit rates; therefore the Company uses its incremental borrowing rate as the discount rate for measuring lease liabilities. Non-lease components are accounted for separately from lease components. The Company’s operating lease expense is recognized on a straight-line basis over the lease term and is recorded in selling, distribution, and administrative expense on the statements of consolidated income.
Recently Issued Accounting Guidance
Recently Issued Accounting Guidance
In December 2023, the FASB issued its final standard to improve income tax disclosures. This standard, issued as ASU 2023-09, requires public business entities to annually disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. This update is effective for
annual periods beginning after December 15, 2024. The Company has not yet determined the impact of this pronouncement on its financial statements and related disclosures.
In November 2023, the FASB issued its final standard to improve reportable segment disclosures. This standard, issued as ASU 2023-07, requires enhanced disclosures about significant segment expenses, enhances interim disclosure requirements, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, provides new segment disclosure requirements for entities with a single reportable segment, and contains other disclosure requirements. This update is effective for all public entities for fiscal years beginning after December 15, 2023, with the interim disclosure requirements being effective for fiscal years beginning after December 15, 2024. The Company has not yet determined the impact of this pronouncement on its financial statements and related disclosures.
v3.24.2.u1
Revenue Recognition Revenue Recognition (Tables)
12 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue from External Customers by Geographic Areas [Table Text Block]
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 years ended June 30, 2024, 2023, and 2022. Other countries consist of Mexico, Australia, New Zealand, Singapore, and Costa Rica.
Year Ended June 30, 2024
Service Center Based DistributionEngineered SolutionsTotal
Geographic Areas:
United States$2,540,427 $1,391,762 $3,932,189 
Canada310,210  310,210 
Other Countries205,918 31,089 237,007 
Total$3,056,555 $1,422,851 $4,479,406 
Year Ended June 30, 2023
Service Center Based DistributionEngineered SolutionsTotal
Geographic Areas:
United States$2,441,281 $1,419,140 $3,860,421 
Canada315,499 — 315,499 
Other Countries210,062 26,812 236,874 
Total$2,966,842 $1,445,952 $4,412,794 
Year Ended June 30, 2022
Service Center Based DistributionEngineered SolutionsTotal
Geographic Areas:
United States$2,081,566 $1,218,184 $3,299,750 
Canada291,530 — 291,530 
Other Countries192,508 26,888 219,396 
Total$2,565,604 $1,245,072 $3,810,676 
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 years ended June 30, 2024, 2023, and 2022:
 Year Ended June 30, 2024
Service Center Based DistributionEngineered SolutionsTotal
General Industry35.0 %38.7 %36.2 %
Industrial Machinery8.2 %24.2 %13.3 %
Food15.0 %2.8 %11.1 %
Metals10.9 %7.9 %10.0 %
Forest Products12.0 %3.2 %9.2 %
Chem/Petrochem2.7 %16.0 %6.9 %
Cement & Aggregate7.4 %1.3 %5.5 %
Oil & Gas5.1 %1.7 %4.0 %
Transportation3.7 %4.2 %3.8 %
Total100.0 %100.0 %100.0 %
 Year Ended June 30, 2023
Service Center Based DistributionEngineered SolutionsTotal
General Industry34.0 %41.2 %36.2 %
Industrial Machinery9.8 %26.1 %15.2 %
Food13.2 %2.7 %9.8 %
Metals10.6 %7.5 %9.6 %
Forest Products12.1 %2.8 %9.1 %
Chem/Petrochem2.8 %13.9 %6.4 %
Cement & Aggregate7.8 %1.3 %5.7 %
Oil & Gas6.0 %1.4 %4.5 %
Transportation3.7 %3.1 %3.5 %
Total100.0 %100.0 %100.0 %
Year Ended June 30, 2022
Service Center Based DistributionEngineered SolutionsTotal
General Industry34.9 %40.1 %36.7 %
Industrial Machinery10.3 %28.3 %16.2 %
Food12.6 %2.5 %9.3 %
Metals11.2 %7.4 %9.9 %
Forest Products10.8 %2.4 %8.0 %
Chem/Petrochem3.1 %13.8 %6.6 %
Cement & Aggregate7.6 %1.0 %5.5 %
Oil & Gas5.4 %1.2 %4.0 %
Transportation4.1 %3.3 %3.8 %
Total100.0 %100.0 %100.0 %
The following tables present the Company’s percentage of revenue by reportable segment and product line for the years ended June 30, 2024, 2023, and 2022:
 Year Ended June 30, 2024
Service Center Based DistributionEngineered SolutionsTotal
Power Transmission37.7 %11.3 %29.4 %
Fluid Power14.1 %36.3 %21.1 %
General Maintenance; Hose Products22.1 %17.2 %20.5 %
Bearings, Linear & Seals26.1 %0.4 %18.0 %
Specialty Flow Control %34.8 %11.0 %
Total100.0 %100.0 %100.0 %
 Year Ended June 30, 2023
Service Center Based DistributionEngineered SolutionsTotal
Power Transmission37.3 %10.6 %28.5 %
Fluid Power13.3 %34.3 %20.2 %
General Maintenance; Hose Products21.1 %19.3 %20.6 %
Bearings, Linear & Seals28.3 %0.4 %19.1 %
Specialty Flow Control— %35.4 %11.6 %
Total100.0 %100.0 %100.0 %
Year Ended June 30, 2022
Service Center Based DistributionEngineered SolutionsTotal
Power Transmission37.1 %10.6 %28.4 %
Fluid Power12.8 %37.2 %20.8 %
General Maintenance; Hose Products20.9 %18.9 %20.3 %
Bearings, Linear & Seals29.2 %0.4 %19.8 %
Specialty Flow Control— %32.9 %10.7 %
Total100.0 %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 consolidated balance sheet, is as follows:
June 30, 2024June 30, 2023$ Change% Change
Contract assets$12,648 $17,911 $(5,263)(29.4)%
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.
v3.24.2.u1
Inventories (Tables)
12 Months Ended
Jun. 30, 2024
Inventory Disclosure [Abstract]  
Items of Inventories
Inventories consist of the following:
June 30,20242023
U.S. inventories at average cost$557,313 $558,299 
Foreign inventories at average cost156,873 158,165 
714,186 716,464 
Less: Excess of average cost over LIFO cost for U.S. inventories225,928 215,280 
Inventories on consolidated balance sheets$488,258 $501,184 
v3.24.2.u1
Goodwill and Intangibles (Tables)
12 Months Ended
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill [Table Text Block]
The changes in the carrying amount of goodwill for both the Service Center Based Distribution segment and the Engineered Solutions segment for the years ended June 30, 2024 and 2023 are as follows:
Service Center Based DistributionEngineered SolutionsTotal
Balance at July 1, 2022$211,010 $352,195 $563,205 
Goodwill acquired during the year— 14,517 14,517 
Other, primarily currency translation221 475 696 
Balance at June 30, 2023211,231 367,187 578,418 
Goodwill acquired during the year9,712 32,634 42,346 
Other, primarily currency translation(1,369) (1,369)
Balance at June 30, 2024$219,574 $399,821 $619,395 
Schedule of Finite-Lived Intangible Assets [Table Text Block]
The Company's identifiable intangible assets resulting from business combinations are amortized over their estimated period of benefit and consist of the following:
June 30, 2024AmountAccumulated
Amortization
Net
Book Value
Finite-Lived Intangibles:
Customer relationships$394,114 $205,422 $188,692 
Trade names88,848 34,891 53,957 
Other4,946 1,725 3,221 
Total Intangibles$487,908 $242,038 $245,870 
June 30, 2023AmountAccumulated
Amortization
Net
Book Value
Finite-Lived Intangibles:
Customer relationships$364,572 $188,804 $175,768 
Trade names108,301 50,823 57,478 
Vendor relationships9,861 9,744 117 
Other3,347 1,161 2,186 
Total Intangibles$486,081 $250,532 $235,549 
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block]
During fiscal 2024, the Company acquired identifiable intangible assets with an acquisition cost allocation and weighted-average life as follows:
Acquisition Cost AllocationWeighted-Average Life
Customer relationships$35,131 20.0
Trade names3,810 13.3
Other 1,600 6.7
Total Intangibles Acquired$40,541 18.9
v3.24.2.u1
Debt Debt (Tables)
12 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
Schedule of Debt
A summary of long-term debt, including the current portion, follows:
June 30,20242023
Revolving credit facility$384,000 $383,592 
Trade receivable securitization facility188,300 188,300 
Series D Notes 25,000 
Series E Notes25,000 25,000 
Other105 356 
Total debt$597,405 $622,248 
Less: unamortized debt issuance costs71 152 
$597,334 $622,096 
Schedule of Maturities of Long-term Debt [Table Text Block]
The table below summarizes the aggregate maturities of amounts outstanding under long-term borrowing arrangements for each of the next five years:
 Fiscal YearAggregate Maturity
2025$25,105 
2026— 
2027572,300 
2028— 
2029— 
v3.24.2.u1
Income Taxes (Tables)
12 Months Ended
Jun. 30, 2024
Income Tax Disclosure [Abstract]  
Components of income before income taxes
The components of income before income taxes are as follows:
Year Ended June 30,202420232022
U.S.$467,785 $423,316 $287,367 
Foreign30,345 26,495 42,423 
Income before income taxes$498,130 $449,811 $329,790 
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]
The provision for income taxes consists of:
Year Ended June 30,202420232022
Current:
Federal$86,501 $84,294 $40,608 
State and local23,016 19,026 10,188 
Foreign3,925 5,468 6,404 
Total current113,442 108,788 57,200 
Deferred:
Federal(791)(1,881)12,467 
State and local1,159 (84)2,659 
Foreign(1,442)(3,751)50 
Total deferred(1,074)(5,716)15,176 
Total$112,368 $103,072 $72,376 
Reconciliations of federal statutory income tax rate and Company's effective income tax rate
The following reconciles the U.S. federal statutory income tax rate to the Company’s effective income tax rate:
Year Ended June 30,202420232022
Statutory income tax rate21.0 %21.0 %21.0 %
Effects of:
State and local taxes4.0 3.5 3.3 
Stock compensation(1.2)(1.0)(1.5)
GILTI/FDII(0.4)(0.2)0.2 
R & D credit(0.4)(0.4)(0.4)
U.S. tax on foreign income, net(0.1)— (0.4)
Impact of foreign operations0.3 0.2 0.4 
Non-deductibles/Deductible dividend0.9 0.6 0.2 
Interest deduction(0.4)(0.4)(0.6)
Valuation allowance(0.7)(0.6)(0.6)
Other, net(0.4)0.2 0.3 
Effective income tax rate22.6 %22.9 %21.9 %
Components of the Company's net deferred tax assets
Significant components of the Company’s deferred tax assets and liabilities are as follows:
June 30,20242023
Deferred tax assets:
Compensation liabilities not currently deductible$18,646 $17,726 
Other expenses and reserves not currently deductible15,008 18,215 
Leases34,771 26,345 
Net operating loss carryforwards 6,340 6,809 
Capitalization of R&D costs17,584 11,646 
Other300 381 
Total deferred tax assets$92,649 $81,122 
Less: Valuation allowance(158)(3,459)
Deferred tax assets, net of valuation allowance$92,491 $77,663 
Deferred tax liabilities:
Inventories$(18,086)$(15,174)
Goodwill and intangibles(63,733)(52,463)
Leases(34,473)(26,179)
Hedging instrument(5,965)(9,081)
Depreciation and differences in property bases(10,506)(9,757)
Total deferred tax liabilities(132,763)(112,654)
Net deferred tax liabilities$(40,272)$(34,991)
Net deferred tax liabilities are classified as follows:
Other assets$11,306 $9,990 
Other liabilities(51,578)(44,981)
Net deferred tax liabilities$(40,272)$(34,991)
Reconciliation of the Company's total gross unrecognized income tax benefits
The Company and its subsidiaries file income tax returns in U.S. federal, various state, local, and foreign jurisdictions. The following table sets forth the changes in the amount of unrecognized tax benefits for the years ended June 30, 2024, 2023, and 2022:
Year Ended June 30,202420232022
Unrecognized Income Tax Benefits at beginning of the year$4,821 $4,926 $5,230 
Current year tax positions105 622 505 
Prior year tax positions(412)(86)(83)
Expirations of statutes of limitations(1,466)(641)(726)
Unrecognized Income Tax Benefits at end of year$3,048 $4,821 $4,926 
v3.24.2.u1
Shareholders' Equity (Tables)
12 Months Ended
Jun. 30, 2024
Stockholders' Equity Note [Abstract]  
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]
Changes in the accumulated other comprehensive loss for the years ended June 30, 2024, 2023, and 2022, are composed of the following amounts, shown net of taxes:
Foreign currency translation adjustment Post-employment benefitsCash flow hedgeTotal accumulated other comprehensive loss
Balance at July 1, 2021$(80,838)$(3,673)$(8,581)$(93,092)
Other comprehensive (loss) income(9,900)2,142 19,770 12,012 
Amounts reclassified from accumulated other comprehensive loss— 228 8,557 8,785 
Net current-period other comprehensive (loss) income(9,900)2,370 28,327 20,797 
Balance at June 30, 2022(90,738)(1,303)19,746 (72,295)
Other comprehensive income7,639 1,082 13,759 22,480 
Amounts reclassified from accumulated other comprehensive loss— 24 (5,505)(5,481)
Net current-period other comprehensive income7,639 1,106 8,254 16,999 
Balance at June 30, 2023(83,099)(197)28,000 (55,296)
Other comprehensive (loss) income(12,467)(101)4,499 (8,069)
Amounts reclassified from accumulated other comprehensive loss (93)(14,108)(14,201)
Net current-period other comprehensive loss(12,467)(194)(9,609)(22,270)
Balance at June 30, 2024$(95,566)$(391)$18,391 $(77,566)
Schedule of Comprehensive Income (Loss)
Details of other comprehensive (loss) income are as follows:
Year Ended June 30,202420232022
Pre-Tax AmountTax (Benefit) ExpenseNet AmountPre-Tax AmountTax Expense (Benefit)Net AmountPre-Tax AmountTax ExpenseNet Amount
Foreign currency translation adjustments
$(12,544)$(77)$(12,467)$7,723 $84 $7,639 $(9,862)$38 $(9,900)
Post-employment benefits:
Actuarial (loss) gain on
    re-measurement
(134)(33)(101)405 100 305 2,839 697 2,142 
Reclassification of actuarial losses and prior service cost into other (income) expense, net and included in net periodic pension costs(117)(24)(93)36 12 24 300 72 228 
Termination of pension plan   1,031 254 777 — — — 
Unrealized gain on cash flow hedge5,958 1,459 4,499 18,174 4,415 13,759 26,204 6,434 19,770 
Reclassification of interest from cash flow hedge into interest expense
(18,683)(4,575)(14,108)(7,285)(1,780)(5,505)11,361 2,804 8,557 
Other comprehensive (loss) income$(25,520)$(3,250)$(22,270)$20,084 $3,085 $16,999 $30,842 $10,045 $20,797 
Computation of basic and diluted earnings per share
Year Ended June 30,202420232022
Net Income$385,762 $346,739 $257,414 
Average Shares Outstanding: 
Weighted-average common shares outstanding for basic computation38,672 38,592 38,471 
Dilutive effect of potential common shares585 628 634 
Weighted-average common shares outstanding for dilutive computation39,257 39,220 39,105 
Net Income Per Share — Basic$9.98 $8.98 $6.69 
Net Income Per Share — Diluted$9.83 $8.84 $6.58 
v3.24.2.u1
Share - Based Compensation (Tables)
12 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement, Noncash Expense [Abstract]  
Schedule of share based compensation expense
Following approval by the Company's shareholders in October 2023, the 2023 Long-Term Performance Plan (the "2023 Plan") replaced the 2019 Long-Term Performance Plan. The 2023 Plan, which expires in 2028, provides for granting of SARs, stock options, stock awards, cash awards, and such other awards or combination thereof as the Executive Organization and Compensation Committee or, in the case of director awards, the Corporate Governance & Sustainability Committee of the Board of Directors (together referred to as the "Committee") may determine to officers, other key employees and members of the Board of Directors. Grants are generally made at regularly scheduled committee meetings. Compensation costs charged to expense under award programs paid (or to be paid) with shares (including SARs, performance shares, restricted stock, and RSUs) are summarized in the table below:
Year Ended June 30,202420232022
SARs$3,448 $2,785 $3,284 
Performance shares4,232 5,302 4,549 
Restricted stock and RSUs5,264 4,274 4,009 
Total compensation costs under award programs$12,944 $12,361 $11,842 
Schedule of Unrecognized Compensation Cost, Nonvested Awards [Table Text Block]
The aggregate unrecognized compensation cost for share-based award programs with the potential to be paid at June 30, 2024 is summarized in the table below:
June 30,2024Average Expected Period of Expected Recognition (Years)
SARs$5,113 2.6
Performance shares6,415 1.7
Restricted stock and RSUs3,050 2.1
Total unrecognized compensation costs under award programs$14,578 2.1
Weighted-average assumptions used for SARs and stock option grants issued
The weighted-average assumptions used for SARs grants issued in fiscal 2024, 2023, and 2022 are:
202420232022
Expected life, in years6.06.26.4
Risk free interest rate4.1 %2.9 %1.0 %
Dividend yield1.0 %1.3 %1.5 %
Volatility37.0 %35.5 %34.3 %
Per share fair value of SARs granted during the year$55.65$35.98$26.18
Summary of SARs and stock option activity
A summary of SARs and stock options activity is presented below:
SharesWeighted-Average
Exercise Price
Year Ended June 30, 2024
(Shares in thousands)
Outstanding, beginning of year816 $70.11 
Granted102 143.72 
Exercised(188)61.25 
Forfeited(18)83.67 
Outstanding, end of year712 $82.65 
Exercisable at end of year472 $65.93 
Expected to vest at end of year706 $82.29 
Schedule of Nonvested Performance-Based Units Activity
A summary of non-vested performance shares activity at June 30, 2024 is presented below:
Shares
Weighted-Average
Grant-Date
Fair Value
Year Ended June 30, 2024
(Shares in thousands)
Non-vested, beginning of year159 $66.74 
Awarded42 99.79 
Vested(100)53.50 
Non-vested, end of year101 $93.73 
Schedule of Nonvested Restricted Stock Units Activity
A summary of the status of the Company’s non-vested restricted stock and RSUs at June 30, 2024 is presented below:
Shares
Weighted-Average
Grant-Date
Fair Value
Year Ended June 30, 2024
(Share amounts in thousands)
Non-vested, beginning of year143 $83.35 
Granted29 151.53 
Forfeitures(4)84.96 
Vested(38)81.50 
Non-vested, end of year130 $99.05 
v3.24.2.u1
Leases (Tables)
12 Months Ended
Jun. 30, 2024
Leases [Abstract]  
Lease, Cost
Information related to operating leases is as follows:
June 30,20242023
Operating lease assets, net$133,289 $100,677 
Operating lease liabilities
Other current liabilities$33,466 $31,173 
Other liabilities104,143 72,704 
Total operating lease liabilities$137,609 $103,877 
June 30,20242023
Weighted average remaining lease term (years)5.54.9
Weighted average incremental borrowing rate4.51 %3.67 %
Year Ended June 30,20242023
Cash paid for operating leases
$38,130 $35,545 
Right of use assets obtained in exchange for new operating lease liabilities$67,535 $30,605 
Lessee, Operating Lease, Liability, Maturity
The table below summarizes the aggregate maturities of liabilities pertaining to operating leases with terms greater than one year for each of the next five years:
Fiscal YearMaturity of Operating Lease Liabilities
2025$38,617 
202633,357 
202726,843 
202819,466 
202914,208 
Thereafter23,456 
Total lease payments155,947 
Less interest18,338 
Present value of lease liabilities$137,609 
v3.24.2.u1
Segment Information (Tables)
12 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Segment financial information
Segment Financial Information
Service Center
Based Distribution
Engineered SolutionsTotal
Year Ended June 30, 2024
Net sales$3,056,555 $1,422,851 $4,479,406 
Operating income for reportable segments400,182 206,844 607,026 
Assets used in the business1,865,269 1,086,641 2,951,910 
Depreciation and amortization of property17,700 5,731 23,431 
Capital expenditures18,040 6,824 24,864 
Year Ended June 30, 2023
Net sales$2,966,842 $1,445,952 $4,412,794 
Operating income for reportable segments373,439 203,404 576,843 
Assets used in the business1,736,393 1,006,939 2,743,332 
Depreciation and amortization of property17,932 4,334 22,266 
Capital expenditures15,390 11,086 26,476 
Year Ended June 30, 2022
Net sales$2,565,604 $1,245,072 $3,810,676 
Operating income for reportable segments301,881 156,644 458,525 
Assets used in the business1,455,293 997,295 2,452,588 
Depreciation and amortization of property17,509 4,167 21,676 
Capital expenditures14,486 3,638 18,124 
Reconciliation of operating income for reportable segments to the consolidated income before income taxes
A reconciliation of operating income for reportable segments to the consolidated income before income taxes
is as follows:
Year Ended June 30,202420232022
Operating income for reportable segments$607,026 $576,843 $458,525 
Adjustments for:
Intangible amortization — Service Center Based Distribution3,188 2,857 3,435 
Intangible amortization — Engineered Solutions25,735 27,948 28,444 
Corporate and other expense, net82,280 72,887 68,788 
Total operating income495,823 473,151 357,858 
Interest expense, net2,831 21,639 26,263 
Other (income) expense, net(5,138)1,701 1,805 
Income before income taxes$498,130 $449,811 $329,790 
Information by geographic area
June 30,20242023
Long-Lived Assets:
United States$209,987 $176,025 
Canada26,436 29,817 
Other Countries15,393 9,876 
Total$251,816 $215,718 
v3.24.2.u1
Other Income, Net (Tables)
12 Months Ended
Jun. 30, 2024
Other Income and Expenses [Abstract]  
Other Expense (Income), net
Other (income) expense, net, consists of the following:
Year Ended June 30,202420232022
Unrealized (gain) loss on assets held in rabbi trust for a non-qualified deferred compensation plan$(3,300)$(2,223)$2,612 
Foreign currency transaction (gains) losses(1,099)3,284 (65)
Net other periodic post-employment costs114 1,470 610 
Life insurance income, net(855)(668)(1,374)
Other, net2 (162)22 
Total other (income) expense, net$(5,138)$1,701 $1,805 
v3.24.2.u1
Business and Accounting Policies Textuals (Details)
$ in Thousands
12 Months Ended
Jun. 30, 2024
USD ($)
Jun. 30, 2023
USD ($)
Jun. 30, 2022
USD ($)
Allowance for Doubtful Accounts Receivable, Current $ 13,063 $ 22,334  
Company's domestic inventory relate to LIFO layers 14.90%    
Number of LIFO pools maintained (in pools) 5    
Revenue Recognition, Sales Returns Reserve $ 10,815 12,635  
Shipping and Handling Costs $ 24,620 22,170 $ 17,890
Vesting period of SARs and stock option awards 4 years    
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent 50.00%    
Defined Contribution Plan, Cost $ 9,670 9,989 9,149
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) 289 399 450
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months $ 1,300    
Defined Benefit Plan, Plan Assets, Payment for Settlement   8,895  
Lessee, Operating Lease, Renewal Term 5 years    
KERP [Member]      
Defined Contribution Plan, Cost $ 446 456 514
Pension Plan [Member]      
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)     282
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement   1,184  
Other Postretirement Benefits Plan      
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) $ 186 $ (113) $ (123)
Computer Software, Intangible Asset [Member]      
Finite-Lived Intangible Asset, Useful Life 12 years    
Buildings,BuildingsImprovementsandLeaseholdImprovementsMinimumUsefulLife [Member]      
Property, Plant and Equipment, Useful Life 10 years    
Buildings,BuildingsImprovementsandLeaseholdImprovements MaximumUsefulLife [Member]      
Property, Plant and Equipment, Useful Life 30 years    
PropertyandEquipmentMinimumUsefulLife [Member]      
Property, Plant and Equipment, Useful Life 3 years    
PropertyandEquipmentMaximumUsefulLife [Member]      
Property, Plant and Equipment, Useful Life 10 years    
Minimum [Member]      
Lessee, Operating Lease, Term of Contract 1 year    
Maximum [Member]      
Lessee, Operating Lease, Term of Contract 15 years    
v3.24.2.u1
Revenue Recognition Revenue Recognition (Details 1) - USD ($)
$ in Thousands
12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Disaggregation of Revenue [Line Items]      
Net sales $ 4,479,406 $ 4,412,794 $ 3,810,676
UNITED STATES      
Disaggregation of Revenue [Line Items]      
Net sales 3,932,189 3,860,421 3,299,750
CANADA      
Disaggregation of Revenue [Line Items]      
Net sales 310,210 315,499 291,530
Other Countries [Member]      
Disaggregation of Revenue [Line Items]      
Net sales 237,007 236,874 219,396
Service Center Based Distribution Segment [Member]      
Disaggregation of Revenue [Line Items]      
Net sales 3,056,555 2,966,842 2,565,604
Service Center Based Distribution Segment [Member] | UNITED STATES      
Disaggregation of Revenue [Line Items]      
Net sales 2,540,427 2,441,281 2,081,566
Service Center Based Distribution Segment [Member] | CANADA      
Disaggregation of Revenue [Line Items]      
Net sales 310,210 315,499 291,530
Service Center Based Distribution Segment [Member] | Other Countries [Member]      
Disaggregation of Revenue [Line Items]      
Net sales 205,918 210,062 192,508
Engineered Solutions Segment      
Disaggregation of Revenue [Line Items]      
Net sales 1,422,851 1,445,952 1,245,072
Engineered Solutions Segment | UNITED STATES      
Disaggregation of Revenue [Line Items]      
Net sales 1,391,762 1,419,140 1,218,184
Engineered Solutions Segment | CANADA      
Disaggregation of Revenue [Line Items]      
Net sales 0 0 0
Engineered Solutions Segment | Other Countries [Member]      
Disaggregation of Revenue [Line Items]      
Net sales $ 31,089 $ 26,812 $ 26,888
v3.24.2.u1
Revenue Recognition Revenue Recognition (Details 2)
12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
General Industry [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Customer Industry, Percent 36.20% 36.20% 36.70%
Industrial Machinery [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Customer Industry, Percent 13.30% 15.20% 16.20%
Food [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Customer Industry, Percent 11.10% 9.80% 9.30%
Metals [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Customer Industry, Percent 10.00% 9.60% 9.90%
Forest Products [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Customer Industry, Percent 9.20% 9.10% 8.00%
Chem/Petrochem [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Customer Industry, Percent 6.90% 6.40% 6.60%
Cement & Aggregate [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Customer Industry, Percent 5.50% 5.70% 5.50%
Oil & Gas [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Customer Industry, Percent 4.00% 4.50% 4.00%
Transportation [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Customer Industry, Percent 3.80% 3.50% 3.80%
Total      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Customer Industry, Percent 100.00% 100.00% 100.00%
Service Center Based Distribution Segment [Member] | General Industry [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Customer Industry, Percent 35.00% 34.00% 34.90%
Service Center Based Distribution Segment [Member] | Industrial Machinery [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Customer Industry, Percent 8.20% 9.80% 10.30%
Service Center Based Distribution Segment [Member] | Food [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Customer Industry, Percent 15.00% 13.20% 12.60%
Service Center Based Distribution Segment [Member] | Metals [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Customer Industry, Percent 10.90% 10.60% 11.20%
Service Center Based Distribution Segment [Member] | Forest Products [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Customer Industry, Percent 12.00% 12.10% 10.80%
Service Center Based Distribution Segment [Member] | Chem/Petrochem [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Customer Industry, Percent 2.70% 2.80% 3.10%
Service Center Based Distribution Segment [Member] | Cement & Aggregate [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Customer Industry, Percent 7.40% 7.80% 7.60%
Service Center Based Distribution Segment [Member] | Oil & Gas [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Customer Industry, Percent 5.10% 6.00% 5.40%
Service Center Based Distribution Segment [Member] | Transportation [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Customer Industry, Percent 3.70% 3.70% 4.10%
Service Center Based Distribution Segment [Member] | Total      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Customer Industry, Percent 100.00% 100.00% 100.00%
Engineered Solutions Segment | General Industry [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Customer Industry, Percent 38.70% 41.20% 40.10%
Engineered Solutions Segment | Industrial Machinery [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Customer Industry, Percent 24.20% 26.10% 28.30%
Engineered Solutions Segment | Food [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Customer Industry, Percent 2.80% 2.70% 2.50%
Engineered Solutions Segment | Metals [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Customer Industry, Percent 7.90% 7.50% 7.40%
Engineered Solutions Segment | Forest Products [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Customer Industry, Percent 3.20% 2.80% 2.40%
Engineered Solutions Segment | Chem/Petrochem [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Customer Industry, Percent 16.00% 13.90% 13.80%
Engineered Solutions Segment | Cement & Aggregate [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Customer Industry, Percent 1.30% 1.30% 1.00%
Engineered Solutions Segment | Oil & Gas [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Customer Industry, Percent 1.70% 1.40% 1.20%
Engineered Solutions Segment | Transportation [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Customer Industry, Percent 4.20% 3.10% 3.30%
Engineered Solutions Segment | Total      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Customer Industry, Percent 100.00% 100.00% 100.00%
v3.24.2.u1
Revenue Recognition Revenue Recognition (Details 3)
12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Product Line, Percent 100.00% 100.00% 100.00%
Power Transmission [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Product Line, Percent 29.40% 28.50% 28.40%
Fluid Power [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Product Line, Percent 21.10% 20.20% 20.80%
General Maintenance; Hose Products [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Product Line, Percent 20.50% 20.60% 20.30%
Bearings, Linear & Seals [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Product Line, Percent 18.00% 19.10% 19.80%
Specialty Flow Control [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Product Line, Percent 11.00% 11.60% 10.70%
Service Center Based Distribution Segment [Member]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Product Line, Percent 100.00% 100.00% 100.00%
Service Center Based Distribution Segment [Member] | Power Transmission [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Product Line, Percent 37.70% 37.30% 37.10%
Service Center Based Distribution Segment [Member] | Fluid Power [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Product Line, Percent 14.10% 13.30% 12.80%
Service Center Based Distribution Segment [Member] | General Maintenance; Hose Products [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Product Line, Percent 22.10% 21.10% 20.90%
Service Center Based Distribution Segment [Member] | Bearings, Linear & Seals [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Product Line, Percent 26.10% 28.30% 29.20%
Service Center Based Distribution Segment [Member] | Specialty Flow Control [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Product Line, Percent 0.00% 0.00% 0.00%
Engineered Solutions Segment      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Product Line, Percent 100.00% 100.00% 100.00%
Engineered Solutions Segment | Power Transmission [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Product Line, Percent 11.30% 10.60% 10.60%
Engineered Solutions Segment | Fluid Power [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Product Line, Percent 36.30% 34.30% 37.20%
Engineered Solutions Segment | General Maintenance; Hose Products [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Product Line, Percent 17.20% 19.30% 18.90%
Engineered Solutions Segment | Bearings, Linear & Seals [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Product Line, Percent 0.40% 0.40% 0.40%
Engineered Solutions Segment | Specialty Flow Control [Domain]      
Disaggregation of Revenue [Line Items]      
Disaggregated Revenue by Product Line, Percent 34.80% 35.40% 32.90%
v3.24.2.u1
Revenue Recognition Revenue Recognition (Details 4) - USD ($)
$ in Thousands
12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]    
Contract assets $ 12,648 $ 17,911
Contract Assets Period $ Change $ (5,263)  
Contract Assets Period % Change (29.40%)  
v3.24.2.u1
Business Combinations Textuals (Details) - USD ($)
$ in Thousands
12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
May 01, 2024
Sep. 01, 2023
Aug. 01, 2023
Mar. 31, 2023
Nov. 01, 2022
Aug. 18, 2021
Business Acquisition [Line Items]                  
Repayments of Other Debt $ 681 $ 1,510 $ 2,361            
Grupo Kopar                  
Business Acquisition [Line Items]                  
Business Acquisition, Percentage of Voting Interests Acquired       100.00%          
Business Combination, Consideration Transferred 61,225                
Net tangible assets acquired / liabilities assumed       $ (2,529)          
Intangible Assets, Net (Including Goodwill)       $ 63,754          
Bearing Distributors, Inc.                  
Business Acquisition [Line Items]                  
Business Combination, Consideration Transferred 17,926                
Net tangible assets acquired / liabilities assumed         $ 4,086        
Intangible Assets, Net (Including Goodwill)         13,840        
Funding from Holdback Payments         $ 1,800        
Debt Instrument, Interest Rate, Stated Percentage         3.00%        
Cangro Industries, Inc.                  
Business Acquisition [Line Items]                  
Business Combination, Consideration Transferred 6,219                
Net tangible assets acquired / liabilities assumed           $ 2,175      
Intangible Assets, Net (Including Goodwill)           4,044      
Funding from Holdback Payments           $ 930      
Debt Instrument, Interest Rate, Stated Percentage           1.00%      
Advanced Motion Systems, Inc                  
Business Acquisition [Line Items]                  
Business Combination, Consideration Transferred   10,118              
Net tangible assets acquired / liabilities assumed             $ 1,768    
Intangible Assets, Net (Including Goodwill)             $ 8,350    
Automation, Inc                  
Business Acquisition [Line Items]                  
Business Combination, Consideration Transferred   25,617              
Net tangible assets acquired / liabilities assumed               $ 3,639  
Intangible Assets, Net (Including Goodwill)               $ 21,978  
R.R. Floody                  
Business Acquisition [Line Items]                  
Business Combination, Consideration Transferred     $ 8,038            
Net tangible assets acquired / liabilities assumed                 $ 1,040
Intangible Assets, Net (Including Goodwill)                 6,998
Funding from Holdback Payments                 $ 1,000
Repayments of Other Debt $ 500 $ 500              
v3.24.2.u1
Inventories (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Jun. 30, 2023
Inventory [Line Items]    
U.S. inventories at average cost $ 557,313 $ 558,299
Foreign inventories at average cost 156,873 158,165
Inventory, Gross, Total 714,186 716,464
Less: Excess of average cost over LIFO cost for U.S. inventories 225,928 215,280
Inventories on consolidated balance sheets $ 488,258 $ 501,184
v3.24.2.u1
Inventories Inventories Textuals (Details) - USD ($)
$ in Thousands
12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Inventory Disclosure [Abstract]      
Effect of LIFO Inventory Liquidation on Income $ 1,160 $ 127 $ 501
v3.24.2.u1
Goodwill and Intangibles (Details) - USD ($)
$ in Thousands
12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Changes in the carrying amount of goodwill by reportable segment    
Goodwill, beginning balance $ 578,418 $ 563,205
Goodwill acquired during the year 42,346 14,517
Other, primarily currency translation (1,369) 696
Goodwill, ending balance 619,395 578,418
Service Center Based Distribution Segment [Member]    
Changes in the carrying amount of goodwill by reportable segment    
Goodwill, beginning balance 211,231 211,010
Goodwill acquired during the year 9,712 0
Other, primarily currency translation (1,369) 221
Goodwill, ending balance 219,574 211,231
Engineered Solutions Segment    
Changes in the carrying amount of goodwill by reportable segment    
Goodwill, beginning balance 367,187 352,195
Goodwill acquired during the year 32,634 14,517
Other, primarily currency translation 0 475
Goodwill, ending balance $ 399,821 $ 367,187
v3.24.2.u1
Goodwill and Intangibles (Details 1) - USD ($)
$ in Thousands
Jun. 30, 2024
Jun. 30, 2023
Finite-Lived Intangible Assets [Line Items]    
Amount $ 487,908 $ 486,081
Accumulated Amortization 242,038 250,532
Net Book Value 245,870 235,549
Customer Relationships [Member]    
Finite-Lived Intangible Assets [Line Items]    
Amount 394,114 364,572
Accumulated Amortization 205,422 188,804
Net Book Value 188,692 175,768
Trade Names [Member]    
Finite-Lived Intangible Assets [Line Items]    
Amount 88,848 108,301
Accumulated Amortization 34,891 50,823
Net Book Value 53,957 57,478
Vendor Relationships [Member]    
Finite-Lived Intangible Assets [Line Items]    
Amount   9,861
Accumulated Amortization   9,744
Net Book Value   117
Other Intangible Assets    
Finite-Lived Intangible Assets [Line Items]    
Amount 4,946 3,347
Accumulated Amortization 1,725 1,161
Net Book Value $ 3,221 $ 2,186
v3.24.2.u1
Goodwill and Intangibles (Details 2)
$ in Thousands
12 Months Ended
Jun. 30, 2024
USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]  
Acquisition Cost Allocation $ 40,541
Weighted-Average Life (in years) 18 years 10 months 24 days
Customer Relationships [Member]  
Acquired Finite-Lived Intangible Assets [Line Items]  
Acquisition Cost Allocation $ 35,131
Weighted-Average Life (in years) 20 years
Trade Names [Member]  
Acquired Finite-Lived Intangible Assets [Line Items]  
Acquisition Cost Allocation $ 3,810
Weighted-Average Life (in years) 13 years 3 months 18 days
Other Intangible Assets  
Acquired Finite-Lived Intangible Assets [Line Items]  
Acquisition Cost Allocation $ 1,600
Weighted-Average Life (in years) 6 years 8 months 12 days
v3.24.2.u1
Goodwill and Intangibles Textuals (Details 3)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2023
USD ($)
Sep. 30, 2023
USD ($)
Jun. 30, 2024
USD ($)
Jun. 30, 2023
USD ($)
Jun. 30, 2022
USD ($)
Goodwill Textuals          
Number of Reporting Units     8    
Amortization of intangibles     $ 28,923 $ 30,805 $ 31,879
Goodwill and Intangibles (Textuals) [Abstract]          
Amortization Expense for For 2025     29,300    
Amortization Expense for For 2026     27,300    
Amortization Expense for For 2027     25,200    
Amortization Expense for For 2028     23,400    
Amortization Expense for For 2029     21,800    
Advanced Motion Systems, Inc | Trade Names [Member]          
Goodwill Textuals          
Finite-Lived Intangible Assets, Purchase Accounting Adjustments   $ 1,249      
Bearing Distributors, Inc. | Trade Names [Member]          
Goodwill Textuals          
Finite-Lived Intangible Assets, Purchase Accounting Adjustments $ 2,130        
Bearing Distributors, Inc. | Customer Relationships [Member]          
Goodwill Textuals          
Finite-Lived Intangible Assets, Purchase Accounting Adjustments 70        
Service Center Based Distribution Segment [Member]          
Goodwill Textuals          
Accumulated goodwill impairment losses     64,794    
Amortization of intangibles     3,188 2,857 3,435
Service Center Based Distribution Segment [Member] | Bearing Distributors, Inc.          
Goodwill Textuals          
Goodwill, Purchase Accounting Adjustments $ 2,060        
Engineered Solutions Segment          
Goodwill Textuals          
Accumulated goodwill impairment losses     167,605    
Amortization of intangibles     $ 25,735 $ 27,948 $ 28,444
Engineered Solutions Segment | Advanced Motion Systems, Inc          
Goodwill Textuals          
Goodwill, Purchase Accounting Adjustments   $ 1,249      
v3.24.2.u1
Debt Debt (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Jun. 30, 2023
Debt Instrument [Line Items]    
Revolving credit facility $ 384,000 $ 383,592
Total debt 597,405 622,248
Less: unamortized debt issuance costs 71 152
Debt, Long-term and Short-term, Combined Amount 597,334 622,096
Asset-backed Securities, Securitized Loans and Receivables [Member]    
Debt Instrument [Line Items]    
Trade receivable securitization facility 188,300 188,300
Prudential Facility - Series D [Member]    
Debt Instrument [Line Items]    
Long-term Debt 0 25,000
Prudential Facility - Series E    
Debt Instrument [Line Items]    
Long-term Debt 25,000 25,000
State of Ohio Assumed Debt [Member]    
Debt Instrument [Line Items]    
Long-term Debt $ 105 $ 356
v3.24.2.u1
Debt (Details 1)
$ in Thousands
Jun. 30, 2024
USD ($)
Debt Disclosure [Abstract]  
2025 $ 25,105
2026 0
2027 572,300
2028 0
2029 $ 0
v3.24.2.u1
Debt Textuals (Details) - USD ($)
$ in Thousands
12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Debt Instrument [Line Items]    
Letters of Credit Outstanding, Amount $ 4,046  
Line of Credit Facility, Remaining Borrowing Capacity 515,800 $ 516,208
Asset-backed Securities, Securitized Loans and Receivables [Member]    
Debt Instrument [Line Items]    
Debt Instrument, Face Amount $ 250,000  
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate 6.35% 6.16%
Debt Instrument, Interest Rate, Stated Percentage 0.90% 0.98%
Prudential Facility [Member]    
Debt Instrument [Line Items]    
Long-term Debt $ 25,000 $ 50,000
Prudential Facility [Member] | Minimum [Member]    
Debt Instrument [Line Items]    
Debt Instrument, Interest Rate, Stated Percentage 0.25%  
Prudential Facility [Member] | Maximum [Member]    
Debt Instrument [Line Items]    
Debt Instrument, Interest Rate, Stated Percentage 1.25%  
Prudential Facility - Series D [Member]    
Debt Instrument [Line Items]    
Long-term Debt $ 0 25,000
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate 3.21%  
Prudential Facility - Series E    
Debt Instrument [Line Items]    
Long-term Debt $ 25,000 25,000
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate 3.08%  
State of Ohio Assumed Debt [Member]    
Debt Instrument [Line Items]    
Debt Instrument, Face Amount $ 2,359  
Long-term Debt $ 105 $ 356
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate 1.50%  
Revolving Credit Facility [Member]    
Debt Instrument [Line Items]    
Line of Credit Facility, Maximum Borrowing Capacity $ 900,000  
Debt Instrument, Face Amount 500,000  
Letters of Credit Outstanding, Amount $ 200  
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate 6.24% 6.11%
Revolving Credit Facility [Member] | Minimum [Member]    
Debt Instrument [Line Items]    
VariableInterestRateLIBORPlusMargin 0.00%  
Variable interest rate, SOFR plus margin 8000.00%  
Revolving Credit Facility [Member] | Maximum [Member]    
Debt Instrument [Line Items]    
VariableInterestRateLIBORPlusMargin 5500.00%  
Variable interest rate, SOFR plus margin 15500.00%  
v3.24.2.u1
Derivatives Derivatives Textuals (Details) - USD ($)
$ in Thousands
12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]        
Derivative, Amount of Hedged Item $ 384,000   $ 463,000  
Derivative, Fixed Interest Rate 1.58%   1.63% 2.61%
Derivative, Variable Interest Rate 2.48% 2.59%    
Interest Rate Cash Flow Hedge Asset at Fair Value $ 18,081 $ 27,044    
Reclassification of interest from cash flow hedge into interest expense $ (18,683) $ (7,285) $ 11,361  
v3.24.2.u1
Fair Value Measurements (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Jun. 30, 2023
Fair Value, Inputs, Level 1 [Member]    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Marketable securities $ 22,519 $ 18,637
v3.24.2.u1
Income Taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Components of income before income taxes      
U.S. $ 467,785 $ 423,316 $ 287,367
Foreign 30,345 26,495 42,423
Income before income taxes $ 498,130 $ 449,811 $ 329,790
v3.24.2.u1
Income Taxes (Details 1) - USD ($)
$ in Thousands
12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Current:      
Federal $ 86,501 $ 84,294 $ 40,608
State and local 23,016 19,026 10,188
Foreign 3,925 5,468 6,404
Total current 113,442 108,788 57,200
Deferred:      
Federal (791) (1,881) 12,467
State and local 1,159 (84) 2,659
Foreign (1,442) (3,751) 50
Total deferred (1,074) (5,716) 15,176
Total $ 112,368 $ 103,072 $ 72,376
v3.24.2.u1
Income Taxes (Details 2)
12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Reconciliations of federal statutory income tax rate and Company's effective income tax rate:      
Statutory income tax rate 21.00% 21.00% 21.00%
State and local taxes 4.00% 3.50% 3.30%
Stock compensation (1.20%) (1.00%) (1.50%)
GILTI/FDII (0.40%) (0.20%) 0.20%
R & D credit (0.40%) (0.40%) (0.40%)
U.S. tax on foreign income, net (0.10%) 0.00% (0.40%)
Impact of foreign operations 0.30% 0.20% 0.40%
Non-deductibles/Deductible dividend 0.90% 0.60% 0.20%
Interest deduction (0.40%) (0.40%) (0.60%)
Valuation allowance (0.70%) (0.60%) (0.60%)
Other, net (0.40%) 0.20% 0.30%
Effective income tax rate 22.60% 22.90% 21.90%
v3.24.2.u1
Income Taxes (Details 3) - USD ($)
$ in Thousands
Jun. 30, 2024
Jun. 30, 2023
Deferred tax assets:    
Compensation liabilities not currently deductible $ 18,646 $ 17,726
Other expenses and reserves not currently deductible 15,008 18,215
Leases 34,771 26,345
Net operating loss carryforwards 6,340 6,809
Capitalization of R&D costs 17,584 11,646
Other 300 381
Total deferred tax assets 92,649 81,122
Less: Valuation allowance (158) (3,459)
Deferred tax assets, net of valuation allowance 92,491 77,663
Deferred tax liabilities:    
Inventories (18,086) (15,174)
Goodwill and intangibles (63,733) (52,463)
Leases (34,473) (26,179)
Hedging instrument (5,965) (9,081)
Depreciation and differences in property bases (10,506) (9,757)
Total deferred tax liabilities (132,763) (112,654)
Net deferred tax liabilities (40,272) (34,991)
Net deferred tax liabilities are classified as follows:    
Net deferred tax liabilities (40,272) (34,991)
Other Assets    
Net deferred tax liabilities are classified as follows:    
Other assets 11,306 9,990
Other Liabilities [Member]    
Net deferred tax liabilities are classified as follows:    
Other liabilities $ 51,578 $ 44,981
v3.24.2.u1
Income Taxes (Details 4) - USD ($)
$ in Thousands
12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Reconciliation of the Company's total gross unrecognized income tax benefits      
Unrecognized Income Tax Benefits at beginning of the year $ 4,821 $ 4,926 $ 5,230
Current year tax positions 105 622 505
Prior year tax positions (412) (86) (83)
Expirations of statutes of limitations (1,466) (641) (726)
Unrecognized Income Tax Benefits at end of year $ 3,048 $ 4,821 $ 4,926
v3.24.2.u1
Income Taxes Textuals (Details 5) - USD ($)
$ in Thousands
12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Deferred Tax Assets, Operating Loss Carryforwards, Foreign $ 24,627 $ 29,374  
Operating Loss Carryforwards 6,146 6,440  
Deferred Tax Assets, Operating Loss Carryforwards, State and Local 194 466  
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount 3,283 2,657  
Deferred Tax Assets, Valuation Allowance 158 3,459  
Undistributed Earnings Of Foreign Subsidiaries On Which No Provision Has Been Made For Income Taxes 186,420    
Income Tax Examination, Penalties and Interest Expense 296 239 $ (362)
Income Tax Examination, Penalties and Interest Accrued 1,411 1,115 876
Decrease in Unrecognized Tax Benefits is Reasonably Possible 2,250    
Unrecognized income tax benefits that would affect the effective income tax rate $ 2,946 4,722 $ 4,813
MEXICO      
Deferred Tax Assets, Valuation Allowance   $ 3,415  
v3.24.2.u1
Shareholders' Equity (Details) - USD ($)
$ in Thousands
12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Beginning Balance $ (55,296)    
Other comprehensive income (loss), Cash flow hedge 4,499 $ 13,759 $ 19,770
Amounts reclassified from accumulated other comprehensive loss, post-employment benefits (93) 24 228
Amounts reclassified from accumulated other comprehensive loss, cash flow hedge (14,108) (5,505) 8,557
Net current-period other comprehensive income (loss), Foreign currency translation adjustment (12,467) 7,639 (9,900)
Net current-period other comprehensive loss (22,270) 16,999 20,797
Ending Balance (77,566) (55,296)  
Reclassification out of Accumulated Other Comprehensive Income [Member]      
Amounts reclassified from accumulated other comprehensive loss (14,201) (5,481) 8,785
Amounts reclassified from accumulated other comprehensive loss, post-employment benefits (93) 24 228
Amounts reclassified from accumulated other comprehensive loss, cash flow hedge (14,108) (5,505) 8,557
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]      
Beginning Balance (83,099) (90,738) (80,838)
Other comprehensive income (loss), foreign currency translation adjustment, net of tax (12,467) 7,639 (9,900)
Amounts reclassified from accumulated other comprehensive loss 0 0 0
Net current-period other comprehensive income (loss), Foreign currency translation adjustment (12,467) 7,639 (9,900)
Ending Balance (95,566) (83,099) (90,738)
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]      
Beginning Balance (197) (1,303) (3,673)
Other comprehensive income (loss), postemployment benefits (101) 1,082 2,142
Net current-period other comprehensive income (loss), Post-employment benefits (194) 1,106 2,370
Ending Balance (391) (197) (1,303)
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]      
Beginning Balance 28,000 19,746 (8,581)
Other comprehensive income (loss), Cash flow hedge 4,499 13,759 19,770
Net current-period other comprehensive income (loss), Cash flow hedge (9,609) 8,254 28,327
Ending Balance 18,391 28,000 19,746
AOCI Attributable to Parent [Member]      
Beginning Balance (55,296) (72,295) (93,092)
Other comprehensive income (loss), Total accumulated other comprehensive (loss) income (8,069) 22,480 12,012
Net current-period other comprehensive loss (22,270) 16,999 20,797
Ending Balance $ (77,566) $ (55,296) $ (72,295)
v3.24.2.u1
Shareholders' Equity OCI (Details) - USD ($)
$ in Thousands
12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Other comprehensive income (loss):      
Foreign currency translation adjustment pre-tax amount $ (12,544) $ 7,723 $ (9,862)
Foreign currency translation adjustment, tax expense (benefit) (77) 84 38
Foreign Currency Translation Adjustment, Net Amount (12,467) 7,639 (9,900)
Actuarial gain on remeasurement, pre-tax amount (134) 405 2,839
Actuarial gain on remeasurement, tax expense (benefit) (33) 100 697
Actuarial gain on remeasurement, net amount (101) 305 2,142
Reclassification of actuarial losses and prior service cost into other expense (income), net and included in net periodic pension costs, pre-tax amount (117) 36 300
Reclassification of actuarial losses and prior service cost into other expense (income), net and included in net periodic pension costs, tax expense (benefit) (24) 12 72
Reclassification of actuarial losses and prior service cost into other expense (income), net and included in net periodic pension costs, net amount (93) 24 228
Termination of pension plan, Pre-Tax Amount 0 1,031 0
Termination of pension plan, Tax Expense 0 254 0
Termination of pension plan, Net Amount 0 777 0
Unrealized gain on cash flow hedge, Pre-tax amount 5,958 18,174 26,204
Unrealized gain on cash flow hedge, Tax expense (1,459) (4,415) (6,434)
Unrealized gain on cash flow hedge, Net amount 4,499 13,759 19,770
Reclassification of interest from cash flow hedge into interest expense, Pre-tax amount 18,683 7,285 (11,361)
Reclassification of interest from cash flow hedge into interest expense, tax expense (benefit) 4,575 1,780 (2,804)
Reclassification of interest from cash flow hedge into interest expense, net amount (14,108) (5,505) 8,557
Other Comprehensive Income (Loss), pre-tax amount (25,520) 20,084 30,842
Other Comprehensive Income (Loss), tax expense (benefit) (3,250) 3,085 10,045
Other comprehensive income (loss) $ (22,270) $ 16,999 $ 20,797
v3.24.2.u1
Shareholders' Equity Net Income Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Earnings Per Share [Abstract]      
Net income $ 385,762 $ 346,739 $ 257,414
Average Shares Outstanding:      
Weighted-average common shares outstanding for basic computation 38,672 38,592 38,471
Dilutive effect of potential common shares 585 628 634
Weighted-average common shares outstanding for dilutive computation 39,257 39,220 39,105
Net income per share — basic $ 9.98 $ 8.98 $ 6.69
Net income per share — diluted $ 9.83 $ 8.84 $ 6.58
v3.24.2.u1
Shareholders' Equity Textuals (Details) - shares
shares in Thousands
12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Stockholders' Equity Note [Abstract]      
Common stock held as treasury shares restricted as (in shares) 128    
Antidilutive Stock options and appreciation rights relating to the acquisition of shares of common stock not included in the computation of diluted earnings per share (in shares) 99 84 106
v3.24.2.u1
Share - Based Compensation (Details) - USD ($)
$ in Thousands
12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Compensation costs charged to expense under award programs      
Total compensation costs under award programs $ 12,944 $ 12,361 $ 11,842
Stock Options and Stock Appreciation Rights [ Member]      
Compensation costs charged to expense under award programs      
Total compensation costs under award programs 3,448 2,785 3,284
Performance Shares [Member]      
Compensation costs charged to expense under award programs      
Total compensation costs under award programs 4,232 5,302 4,549
Restricted stock and Restricted Stock units [Member]      
Compensation costs charged to expense under award programs      
Total compensation costs under award programs $ 5,264 $ 4,274 $ 4,009
v3.24.2.u1
Share - Based Compensation (Details 1)
$ in Thousands
12 Months Ended
Jun. 30, 2024
USD ($)
Schedule Of Unrecognized Compensation Cost Nonvested Awards Table Text Block [Line Items]  
Total unrecognized compensation costs under award programs $ 14,578
Expected Period for Recognition 2 years 1 month 6 days
Stock Options and Stock Appreciation Rights [ Member]  
Schedule Of Unrecognized Compensation Cost Nonvested Awards Table Text Block [Line Items]  
Total unrecognized compensation costs under award programs $ 5,113
Expected Period for Recognition 2 years 7 months 6 days
Performance Shares [Member]  
Schedule Of Unrecognized Compensation Cost Nonvested Awards Table Text Block [Line Items]  
Total unrecognized compensation costs under award programs $ 6,415
Expected Period for Recognition 1 year 8 months 12 days
Restricted stock and Restricted Stock units [Member]  
Schedule Of Unrecognized Compensation Cost Nonvested Awards Table Text Block [Line Items]  
Total unrecognized compensation costs under award programs $ 3,050
Expected Period for Recognition 2 years 1 month 6 days
v3.24.2.u1
Share - Based Compensation (Details 2) - Stock Options and Stock Appreciation Rights [ Member] - $ / shares
12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Weighted-average assumptions used for SARs and stock option grants issued      
Expected life, in years 6 years 6 years 2 months 12 days 6 years 4 months 24 days
Risk free interest rate 4.10% 2.90% 1.00%
Dividend yield 1.00% 1.30% 1.50%
Volatility 37.00% 35.50% 34.30%
Per share fair value of SAR's and stock options granted during the year $ 55.65 $ 35.98 $ 26.18
v3.24.2.u1
Share - Based Compensation (Details 3) - Stock Options and Stock Appreciation Rights [ Member]
shares in Thousands
12 Months Ended
Jun. 30, 2024
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]  
Outstanding, beginning of year, Shares | shares 816
Granted, Shares | shares 102
Exercised, Shares | shares (188)
Forfeited, Shares | shares (18)
Outstanding, end of year, Shares | shares 712
Exercisable at end of year, Shares | shares 472
Expected to Vest at end of year, Shares | shares 706
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]  
Outstanding, beginning of year, Weighted-Average Exercise Price | $ / shares $ 70.11
Granted, Weighted-Average Exercise Price | $ / shares 143.72
Exercised, Weighted-Average Exercise Price | $ / shares 61.25
Forfeited, Weighted-Average Exercise Price | $ / shares 83.67
Outstanding, end of year, Weighted-Average Exercise Price | $ / shares 82.65
Exercisable at end of year, Weighted-Average Exercise Price | $ / shares 65.93
Expected to Vest at end of year, Weighted-Average Exercise Price | $ / shares $ 82.29
v3.24.2.u1
Share - Based Compensation (Details 4) - Performance shares [Member]
shares in Thousands
12 Months Ended
Jun. 30, 2024
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]  
Beginning Balance, Shares | shares 159
Granted, shares | shares 42
Vested, Shares | shares (100)
Ending Balance, Shares | shares 101
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]  
Beginning Balance, Weighted-Average Grant-Date Fair Value | $ / shares $ 66.74
Granted, Weighted-Average Grant-Date Fair Value | $ / shares 99.79
Vested, Weighted-Average Grant- Date Fair Value | $ / shares 53.50
Ending Balance, Weighted-Average Grant-Date Fair Value | $ / shares $ 93.73
v3.24.2.u1
Share - Based Compensation (Details 5) - Restricted stock and Restricted Stock units [Member]
shares in Thousands
12 Months Ended
Jun. 30, 2024
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Beginning Balance, Shares | shares 143
Beginning Balance, Weighted-Average Grant-Date Fair Value | $ / shares $ 83.35
Granted, shares | shares 29
Granted, Weighted-Average Exercise Price | $ / shares $ 151.53
Forfeited, Shares | shares (4)
Forfeitures, Weighted-Average Grant-Date Fair Value | $ / shares $ 84.96
Vested, Shares | shares (38)
Vested, Weighted-Average Grant- Date Fair Value | $ / shares $ 81.50
Ending Balance, Shares | shares 130
Ending Balance, Weighted-Average Grant-Date Fair Value | $ / shares $ 99.05
v3.24.2.u1
Share - Based Compensation Textuals (Details) - USD ($)
shares in Thousands, $ in Thousands
12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition 2 years 1 month 6 days    
Aggregate number of shares of common stock awarded under the 2023 Plan 1,600    
Shares available for future grants 1,584    
Stock Compensation Plan [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense $ 5,885 $ 7,886 $ 5,105
Stock Options and Stock Appreciation Rights [ Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition 2 years 7 months 6 days    
Weighted-average remaining contractual terms for SARs/stock options outstanding 5 years 9 months 18 days    
Weighted-average remaining contractual terms for SARs/stock options exercisable 4 years 7 months 6 days    
Weighted-average remaining contractual terms for SARs/stock options expected to vest 5 years 9 months 18 days    
Aggregate intrinsic values of SARs and stock options outstanding $ 79,326    
Aggregate intrinsic values of SARs/stock options exercisable 60,488    
Aggregate intrinsic values of SARs/stock options expected to vest 78,921    
Aggregate intrinsic values of SARs/stock options exercised during period 19,700 20,170 17,015
Total fair value of shares vested $ 2,550 $ 2,691 $ 2,341
Performance Shares [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition 1 year 8 months 12 days    
Shares available for future grants 53    
v3.24.2.u1
Leases (Details) - USD ($)
$ in Thousands
12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Leases [Abstract]    
Operating lease assets, net $ 133,289 $ 100,677
Other current liabilities Other Liabilities, Current Other Liabilities, Current
Other liabilities Other Liabilities, Noncurrent Other Liabilities, Noncurrent
Total operating lease liabilities Other Liabilities Other Liabilities
Weighted average remaining lease term (years) 5 years 6 months 4 years 10 months 24 days
Weighted average incremental borrowing rate 4.51% 3.67%
Cash paid for operating leases $ 38,130 $ 35,545
Right of use assets obtained in exchange for new operating lease liabilities $ 67,535 $ 30,605
v3.24.2.u1
Leases (Details 1)
$ in Thousands
Jun. 30, 2024
USD ($)
Lessee, Operating Lease, Liability, Payment, Due  
2025 $ 38,617
2026 33,357
2027 26,843
2028 19,466
2029 14,208
Thereafter 23,456
Total lease payments 155,947
Less interest 18,338
Present value of lease liabilities $ 137,609
v3.24.2.u1
Leases Leases Textuals (Details) - USD ($)
$ in Thousands
12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Leases [Abstract]      
Operating Lease, Cost $ 38,905 $ 35,982  
Short-term Lease, Cost 12,683 9,153  
Related Party Transaction, Amounts of Transaction $ 2,250 $ 1,500 $ 2,100
v3.24.2.u1
Segment Information (Details) - USD ($)
$ in Thousands
12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Segment financial information      
Net sales $ 4,479,406 $ 4,412,794 $ 3,810,676
Operating income for reportable segments 495,823 473,151 357,858
Assets used in the business 2,951,910 2,743,332 2,452,588
Depreciation and amortization of property 23,431 22,266 21,676
Capital expenditures 24,864 26,476 18,124
Service Center Based Distribution Segment [Member]      
Segment financial information      
Net sales 3,056,555 2,966,842 2,565,604
Operating income for reportable segments 400,182 373,439 301,881
Assets used in the business 1,865,269 1,736,393 1,455,293
Depreciation and amortization of property 17,700 17,932 17,509
Capital expenditures 18,040 15,390 14,486
Engineered Solutions Segment      
Segment financial information      
Net sales 1,422,851 1,445,952 1,245,072
Operating income for reportable segments 206,844 203,404 156,644
Assets used in the business 1,086,641 1,006,939 997,295
Depreciation and amortization of property 5,731 4,334 4,167
Capital expenditures 6,824 11,086 3,638
Reportable Segments      
Segment financial information      
Operating income for reportable segments $ 607,026 $ 576,843 $ 458,525
v3.24.2.u1
Segment Information (Details 1) - USD ($)
$ in Thousands
12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Reconciliation of operating income for reportable segments to the consolidated income before income taxes      
Operating income for reportable segments $ 495,823 $ 473,151 $ 357,858
Adjustments for:      
Intangible amortization 28,923 30,805 31,879
Operating income 495,823 473,151 357,858
Interest expense, net 2,831 21,639 26,263
Other (income) expense, net (5,138) 1,701 1,805
Income before income taxes 498,130 449,811 329,790
Reportable Segments      
Reconciliation of operating income for reportable segments to the consolidated income before income taxes      
Operating income for reportable segments 607,026 576,843 458,525
Adjustments for:      
Operating income 607,026 576,843 458,525
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 400,182 373,439 301,881
Adjustments for:      
Intangible amortization 3,188 2,857 3,435
Operating income 400,182 373,439 301,881
Engineered Solutions Segment      
Reconciliation of operating income for reportable segments to the consolidated income before income taxes      
Operating income for reportable segments 206,844 203,404 156,644
Adjustments for:      
Intangible amortization 25,735 27,948 28,444
Operating income 206,844 203,404 156,644
Corporate and Other [Member]      
Adjustments for:      
Corporate and other expense, net $ 82,280 $ 72,887 $ 68,788
v3.24.2.u1
Segment Information (Details 2) - USD ($)
$ in Thousands
Jun. 30, 2024
Jun. 30, 2023
Revenues From External Customers and Long Lived Assets [Line Items]    
Long-Lived Assets $ 251,816 $ 215,718
United States [Member]    
Revenues From External Customers and Long Lived Assets [Line Items]    
Long-Lived Assets 209,987 176,025
Canada [Member]    
Revenues From External Customers and Long Lived Assets [Line Items]    
Long-Lived Assets 26,436 29,817
Other Countries [Member]    
Revenues From External Customers and Long Lived Assets [Line Items]    
Long-Lived Assets $ 15,393 $ 9,876
v3.24.2.u1
Segment Information Textuals (Details 3) - USD ($)
$ in Thousands
12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Segment Reporting Information [Line Items]      
Net sales $ 4,479,406 $ 4,412,794 $ 3,810,676
Intersegment Eliminations [Member]      
Segment Reporting Information [Line Items]      
Net sales $ 52,574 $ 48,450 $ 37,163
v3.24.2.u1
Other Income, Net (Details) - USD ($)
$ in Thousands
12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Unrealized (gain) loss on assets held in rabbi trust for a non-qualified deferred compensation plan $ (3,300) $ (2,223) $ 2,612
Foreign currency transaction (gains) losses (1,099) 3,284 (65)
Net other periodic post-employment costs 114 1,470 610
Life insurance income, net (855) (668) (1,374)
Other, net 2   22
Other, net   (162)  
Total other (income) expense, net $ (5,138) $ 1,701 $ 1,805
v3.24.2.u1
Subsequent Events Textuals (Details) - Subsequent Event [Member] - USD ($)
$ in Thousands
12 Months Ended
Jun. 30, 2025
Aug. 01, 2024
Stanley Proctor    
Subsequent Event [Line Items]    
Business Acquisition, Percentage of Voting Interests Acquired   100.00%
Business Combination, Consideration Transferred $ 3,200  
Total Machine Solutions    
Subsequent Event [Line Items]    
Business Combination, Consideration Transferred $ 6,500  
v3.24.2.u1
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($)
$ in Thousands
12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
SEC Schedule, 12-09, Allowance, Credit Loss [Member]      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at beginning of period $ 34,969 $ 28,044 $ 26,227
(Deductions) Additions charged to costs and expenses   5,619 3,193
(Deductions) Additions Charged to Other Accounts (1,820) 2,113 750
Deductions from reserves 9,066 807 2,126
Balance at end of period 23,878 34,969 28,044
SEC Schedule, 12-09, Valuation Allowances and Reserves, Addition, Recovery (205)    
Allowance for Doubtful Account [Member]      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at beginning of period 22,334 17,522 16,455
(Deductions) Additions charged to costs and expenses   5,619 3,193
(Deductions) Additions Charged to Other Accounts 0 0 0
Deductions from reserves 9,066 807 2,126
Balance at end of period 13,063 22,334 17,522
SEC Schedule, 12-09, Valuation Allowances and Reserves, Addition, Recovery (205)    
Sales Returns and Allowances [Member]      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at beginning of period 12,635 10,522 9,772
(Deductions) Additions charged to costs and expenses 0 0 0
(Deductions) Additions Charged to Other Accounts [1] (1,820) 2,113 750
Deductions from reserves [2] 0 0 0
Balance at end of period $ 10,815 $ 12,635 $ 10,522
[1]
(A)Amounts in the years ending June 30, 2024, 2023 and 2022 represent reserves recorded for the return of merchandise by customers. The Company adopted ASC 606 - Revenue from Contracts with Customers effective July 1, 2018 which requires the Company's sales returns reserve to be established at the gross sales value with an asset established for the value of the expected product to be returned.
(B)Amounts represent uncollectible accounts charged off.
[2] Amounts represent uncollectible accounts charged off.