Document and Entity Information
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 |
Commitments and Contingencies
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. |
Statements of Consolidated Inco
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 |
Statements of Consolidated Comp
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 |
Consolidated Balance Sheets
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 |
Statements of Consolidated Cash
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 |
Statements of Consolidated Shar
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 |
Business and Accounting Policie
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 three 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. |
Revenue Recognition Revenue Rec
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 Distribution Engineered Solutions Total Geographic Areas: United States $ 2,540,427 $ 1,391,762 $ 3,932,189 Canada 310,210 — 310,210 Other Countries 205,918 31,089 237,007 Total $ 3,056,555 $ 1,422,851 $ 4,479,406 Year Ended June 30, 2023 Service Center Based Distribution Engineered Solutions Total Geographic Areas: United States $ 2,441,281 $ 1,419,140 $ 3,860,421 Canada 315,499 — 315,499 Other Countries 210,062 26,812 236,874 Total $ 2,966,842 $ 1,445,952 $ 4,412,794 Year Ended June 30, 2022 Service Center Based Distribution Engineered Solutions Total Geographic Areas: United States $ 2,081,566 $ 1,218,184 $ 3,299,750 Canada 291,530 — 291,530 Other Countries 192,508 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 Distribution Engineered Solutions Total General Industry 35.0 % 38.7 % 36.2 % Industrial Machinery 8.2 % 24.2 % 13.3 % Food 15.0 % 2.8 % 11.1 % Metals 10.9 % 7.9 % 10.0 % Forest Products 12.0 % 3.2 % 9.2 % Chem/Petrochem 2.7 % 16.0 % 6.9 % Cement & Aggregate 7.4 % 1.3 % 5.5 % Oil & Gas 5.1 % 1.7 % 4.0 % Transportation 3.7 % 4.2 % 3.8 % Total 100.0 % 100.0 % 100.0 % Year Ended June 30, 2023 Service Center Based Distribution Engineered Solutions Total General Industry 34.0 % 41.2 % 36.2 % Industrial Machinery 9.8 % 26.1 % 15.2 % Food 13.2 % 2.7 % 9.8 % Metals 10.6 % 7.5 % 9.6 % Forest Products 12.1 % 2.8 % 9.1 % Chem/Petrochem 2.8 % 13.9 % 6.4 % Cement & Aggregate 7.8 % 1.3 % 5.7 % Oil & Gas 6.0 % 1.4 % 4.5 % Transportation 3.7 % 3.1 % 3.5 % Total 100.0 % 100.0 % 100.0 % Year Ended June 30, 2022 Service Center Based Distribution Engineered Solutions Total General Industry 34.9 % 40.1 % 36.7 % Industrial Machinery 10.3 % 28.3 % 16.2 % Food 12.6 % 2.5 % 9.3 % Metals 11.2 % 7.4 % 9.9 % Forest Products 10.8 % 2.4 % 8.0 % Chem/Petrochem 3.1 % 13.8 % 6.6 % Cement & Aggregate 7.6 % 1.0 % 5.5 % Oil & Gas 5.4 % 1.2 % 4.0 % Transportation 4.1 % 3.3 % 3.8 % Total 100.0 % 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 Distribution Engineered Solutions Total Power Transmission 37.7 % 11.3 % 29.4 % Fluid Power 14.1 % 36.3 % 21.1 % General Maintenance; Hose Products 22.1 % 17.2 % 20.5 % Bearings, Linear & Seals 26.1 % 0.4 % 18.0 % Specialty Flow Control — % 34.8 % 11.0 % Total 100.0 % 100.0 % 100.0 % Year Ended June 30, 2023 Service Center Based Distribution Engineered Solutions Total Power Transmission 37.3 % 10.6 % 28.5 % Fluid Power 13.3 % 34.3 % 20.2 % General Maintenance; Hose Products 21.1 % 19.3 % 20.6 % Bearings, Linear & Seals 28.3 % 0.4 % 19.1 % Specialty Flow Control — % 35.4 % 11.6 % Total 100.0 % 100.0 % 100.0 % Year Ended June 30, 2022 Service Center Based Distribution Engineered Solutions Total Power Transmission 37.1 % 10.6 % 28.4 % Fluid Power 12.8 % 37.2 % 20.8 % General Maintenance; Hose Products 20.9 % 18.9 % 20.3 % Bearings, Linear & Seals 29.2 % 0.4 % 19.8 % Specialty Flow Control — % 32.9 % 10.7 % Total 100.0 % 100.0 % 100.0 % Contract Assets The Company’s contract assets consist of un-billed amounts resulting from contracts for which revenue is recognized over time using the cost-to-cost method, and for which revenue recognized exceeds the amount billed to the customer. Activity related to contract assets, which are included in other current assets on the consolidated balance sheet, is as follows: June 30, 2024 June 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. |
Business Combinations
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 segm ent. 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. |
Inventories
Inventories | 12 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consist of the following: June 30, 2024 2023 U.S. inventories at average cost $ 557,313 $ 558,299 Foreign inventories at average cost 156,873 158,165 714,186 716,464 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 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. |
Goodwill and Intangibles
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 Distribution Engineered Solutions Total Balance at July 1, 2022 $ 211,010 $ 352,195 $ 563,205 Goodwill acquired during the year — 14,517 14,517 Other, primarily currency translation 221 475 696 Balance at June 30, 2023 211,231 367,187 578,418 Goodwill acquired during the year 9,712 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, 2024 Amount Accumulated Net Finite-Lived Intangibles: Customer relationships $ 394,114 $ 205,422 $ 188,692 Trade names 88,848 34,891 53,957 Other 4,946 1,725 3,221 Total Intangibles $ 487,908 $ 242,038 $ 245,870 June 30, 2023 Amount Accumulated Net Finite-Lived Intangibles: Customer relationships $ 364,572 $ 188,804 $ 175,768 Trade names 108,301 50,823 57,478 Vendor relationships 9,861 9,744 117 Other 3,347 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 Allocation Weighted-Average Life Customer relationships $ 35,131 20.0 Trade names 3,810 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. |
Debt
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, 2024 2023 Revolving credit facility $ 384,000 $ 383,592 Trade receivable securitization facility 188,300 188,300 Series D Notes — 25,000 Series E Notes 25,000 25,000 Other 105 356 Total debt $ 597,405 $ 622,248 Less: unamortized debt issuance costs 71 152 $ 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 Year Aggregate Maturity 2025 $ 25,105 2026 — 2027 572,300 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. |
Derivatives Derivatives
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. |
Fair Value Measurements
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). |
Income Taxes
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, 2024 2023 2022 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 Provision The provision for income taxes consists of: Year Ended June 30, 2024 2023 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 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, 2024 2023 2022 Statutory income tax rate 21.0 % 21.0 % 21.0 % Effects of: State and local taxes 4.0 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 operations 0.3 0.2 0.4 Non-deductibles/Deductible dividend 0.9 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 rate 22.6 % 22.9 % 21.9 % Consolidated Balance Sheets Significant components of the Company’s deferred tax assets and liabilities are as follows: June 30, 2024 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: 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. D uring 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, 2024 2023 2022 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 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. |
Shareholders' Equity
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 benefits Cash flow hedge Total 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 income 7,639 1,082 13,759 22,480 Amounts reclassified from accumulated other comprehensive loss — 24 (5,505) (5,481) Net current-period other comprehensive income 7,639 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, 2024 2023 2022 Pre-Tax Amount Tax (Benefit) Expense Net Amount Pre-Tax Amount Tax Expense (Benefit) Net Amount Pre-Tax Amount Tax Expense Net 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 hedge 5,958 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, 2024 2023 2022 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 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. |
Share - Based Compensation
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, 2024 2023 2022 SARs $ 3,448 $ 2,785 $ 3,284 Performance shares 4,232 5,302 4,549 Restricted stock and RSUs 5,264 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, 2024 Average Expected Period of Expected Recognition (Years) SARs $ 5,113 2.6 Performance shares 6,415 1.7 Restricted stock and RSUs 3,050 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: 2024 2023 2022 Expected life, in years 6.0 6.2 6.4 Risk free interest rate 4.1 % 2.9 % 1.0 % Dividend yield 1.0 % 1.3 % 1.5 % Volatility 37.0 % 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 : Shares Weighted-Average Year Ended June 30, 2024 (Shares in thousands) Outstanding, beginning of year 816 $ 70.11 Granted 102 143.72 Exercised (188) 61.25 Forfeited (18) 83.67 Outstanding, end of year 712 $ 82.65 Exercisable at end of year 472 $ 65.93 Expected to vest at end of year 706 $ 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 year 159 $ 66.74 Awarded 42 99.79 Vested (100) 53.50 Non-vested, end of year 101 $ 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 year 143 $ 83.35 Granted 29 151.53 Forfeitures (4) 84.96 Vested (38) 81.50 Non-vested, end of year 130 $ 99.05 |
Leases
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, 2024 2023 Operating lease assets, net $ 133,289 $ 100,677 Operating lease liabilities Other current liabilities $ 33,466 $ 31,173 Other liabilities 104,143 72,704 Total operating lease liabilities $ 137,609 $ 103,877 June 30, 2024 2023 Weighted average remaining lease term (years) 5.5 4.9 Weighted average incremental borrowing rate 4.51 % 3.67 % Year Ended June 30, 2024 2023 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 Year Maturity of Operating Lease Liabilities 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 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. |
Segment Information
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 Engineered Solutions Total Year Ended June 30, 2024 Net sales $ 3,056,555 $ 1,422,851 $ 4,479,406 Operating income for reportable segments 400,182 206,844 607,026 Assets used in the business 1,865,269 1,086,641 2,951,910 Depreciation and amortization of property 17,700 5,731 23,431 Capital expenditures 18,040 6,824 24,864 Year Ended June 30, 2023 Net sales $ 2,966,842 $ 1,445,952 $ 4,412,794 Operating income for reportable segments 373,439 203,404 576,843 Assets used in the business 1,736,393 1,006,939 2,743,332 Depreciation and amortization of property 17,932 4,334 22,266 Capital expenditures 15,390 11,086 26,476 Year Ended June 30, 2022 Net sales $ 2,565,604 $ 1,245,072 $ 3,810,676 Operating income for reportable segments 301,881 156,644 458,525 Assets used in the business 1,455,293 997,295 2,452,588 Depreciation and amortization of property 17,509 4,167 21,676 Capital expenditures 14,486 3,638 18,124 A reconciliation of operating income for reportable segments to the consolidated income before income taxes Year Ended June 30, 2024 2023 2022 Operating income for reportable segments $ 607,026 $ 576,843 $ 458,525 Adjustments for: Intangible amortization — Service Center Based Distribution 3,188 2,857 3,435 Intangible amortization — Engineered Solutions 25,735 27,948 28,444 Corporate and other expense, net 82,280 72,887 68,788 Total 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 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, 2024 2023 Long-Lived Assets: United States $ 209,987 $ 176,025 Canada 26,436 29,817 Other Countries 15,393 9,876 Total $ 251,816 $ 215,718 |
Other Income, Net
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, 2024 2023 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 (162) 22 Total other (income) expense, net $ (5,138) $ 1,701 $ 1,805 |
Subsequent Events Subsequent Ev
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 |
Schedule II - Valuation and Qua
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 A COLUMN B COLUMN C COLUMN D COLUMN E DESCRIPTION Balance 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 reserve 12,635 — (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 reserve 10,522 — 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 reserve 9,772 — 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. |
Pay vs Performance Disclosure
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 |
Insider Trading Arrangements
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 |
Business and Accounting Polic_2
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 |
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 |
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 three |
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. |
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. |
Revenue Recognition Revenue R_2
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 Distribution Engineered Solutions Total Geographic Areas: United States $ 2,540,427 $ 1,391,762 $ 3,932,189 Canada 310,210 — 310,210 Other Countries 205,918 31,089 237,007 Total $ 3,056,555 $ 1,422,851 $ 4,479,406 Year Ended June 30, 2023 Service Center Based Distribution Engineered Solutions Total Geographic Areas: United States $ 2,441,281 $ 1,419,140 $ 3,860,421 Canada 315,499 — 315,499 Other Countries 210,062 26,812 236,874 Total $ 2,966,842 $ 1,445,952 $ 4,412,794 Year Ended June 30, 2022 Service Center Based Distribution Engineered Solutions Total Geographic Areas: United States $ 2,081,566 $ 1,218,184 $ 3,299,750 Canada 291,530 — 291,530 Other Countries 192,508 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 Distribution Engineered Solutions Total General Industry 35.0 % 38.7 % 36.2 % Industrial Machinery 8.2 % 24.2 % 13.3 % Food 15.0 % 2.8 % 11.1 % Metals 10.9 % 7.9 % 10.0 % Forest Products 12.0 % 3.2 % 9.2 % Chem/Petrochem 2.7 % 16.0 % 6.9 % Cement & Aggregate 7.4 % 1.3 % 5.5 % Oil & Gas 5.1 % 1.7 % 4.0 % Transportation 3.7 % 4.2 % 3.8 % Total 100.0 % 100.0 % 100.0 % Year Ended June 30, 2023 Service Center Based Distribution Engineered Solutions Total General Industry 34.0 % 41.2 % 36.2 % Industrial Machinery 9.8 % 26.1 % 15.2 % Food 13.2 % 2.7 % 9.8 % Metals 10.6 % 7.5 % 9.6 % Forest Products 12.1 % 2.8 % 9.1 % Chem/Petrochem 2.8 % 13.9 % 6.4 % Cement & Aggregate 7.8 % 1.3 % 5.7 % Oil & Gas 6.0 % 1.4 % 4.5 % Transportation 3.7 % 3.1 % 3.5 % Total 100.0 % 100.0 % 100.0 % Year Ended June 30, 2022 Service Center Based Distribution Engineered Solutions Total General Industry 34.9 % 40.1 % 36.7 % Industrial Machinery 10.3 % 28.3 % 16.2 % Food 12.6 % 2.5 % 9.3 % Metals 11.2 % 7.4 % 9.9 % Forest Products 10.8 % 2.4 % 8.0 % Chem/Petrochem 3.1 % 13.8 % 6.6 % Cement & Aggregate 7.6 % 1.0 % 5.5 % Oil & Gas 5.4 % 1.2 % 4.0 % Transportation 4.1 % 3.3 % 3.8 % Total 100.0 % 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 Distribution Engineered Solutions Total Power Transmission 37.7 % 11.3 % 29.4 % Fluid Power 14.1 % 36.3 % 21.1 % General Maintenance; Hose Products 22.1 % 17.2 % 20.5 % Bearings, Linear & Seals 26.1 % 0.4 % 18.0 % Specialty Flow Control — % 34.8 % 11.0 % Total 100.0 % 100.0 % 100.0 % Year Ended June 30, 2023 Service Center Based Distribution Engineered Solutions Total Power Transmission 37.3 % 10.6 % 28.5 % Fluid Power 13.3 % 34.3 % 20.2 % General Maintenance; Hose Products 21.1 % 19.3 % 20.6 % Bearings, Linear & Seals 28.3 % 0.4 % 19.1 % Specialty Flow Control — % 35.4 % 11.6 % Total 100.0 % 100.0 % 100.0 % Year Ended June 30, 2022 Service Center Based Distribution Engineered Solutions Total Power Transmission 37.1 % 10.6 % 28.4 % Fluid Power 12.8 % 37.2 % 20.8 % General Maintenance; Hose Products 20.9 % 18.9 % 20.3 % Bearings, Linear & Seals 29.2 % 0.4 % 19.8 % Specialty Flow Control — % 32.9 % 10.7 % Total 100.0 % 100.0 % 100.0 % |
Contract with Customer, Asset and Liability [Table Text Block] | Contract Assets The Company’s contract assets consist of un-billed amounts resulting from contracts for which revenue is recognized over time using the cost-to-cost method, and for which revenue recognized exceeds the amount billed to the customer. Activity related to contract assets, which are included in other current assets on the consolidated balance sheet, is as follows: June 30, 2024 June 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. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Items of Inventories | Inventories consist of the following: June 30, 2024 2023 U.S. inventories at average cost $ 557,313 $ 558,299 Foreign inventories at average cost 156,873 158,165 714,186 716,464 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 |
Goodwill and Intangibles (Table
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 Distribution Engineered Solutions Total Balance at July 1, 2022 $ 211,010 $ 352,195 $ 563,205 Goodwill acquired during the year — 14,517 14,517 Other, primarily currency translation 221 475 696 Balance at June 30, 2023 211,231 367,187 578,418 Goodwill acquired during the year 9,712 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, 2024 Amount Accumulated Net Finite-Lived Intangibles: Customer relationships $ 394,114 $ 205,422 $ 188,692 Trade names 88,848 34,891 53,957 Other 4,946 1,725 3,221 Total Intangibles $ 487,908 $ 242,038 $ 245,870 June 30, 2023 Amount Accumulated Net Finite-Lived Intangibles: Customer relationships $ 364,572 $ 188,804 $ 175,768 Trade names 108,301 50,823 57,478 Vendor relationships 9,861 9,744 117 Other 3,347 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 Allocation Weighted-Average Life Customer relationships $ 35,131 20.0 Trade names 3,810 13.3 Other 1,600 6.7 Total Intangibles Acquired $ 40,541 18.9 |
Debt Debt (Tables)
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, 2024 2023 Revolving credit facility $ 384,000 $ 383,592 Trade receivable securitization facility 188,300 188,300 Series D Notes — 25,000 Series E Notes 25,000 25,000 Other 105 356 Total debt $ 597,405 $ 622,248 Less: unamortized debt issuance costs 71 152 $ 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 Year Aggregate Maturity 2025 $ 25,105 2026 — 2027 572,300 2028 — 2029 — |
Income Taxes (Tables)
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, 2024 2023 2022 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 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The provision for income taxes consists of: Year Ended June 30, 2024 2023 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 |
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, 2024 2023 2022 Statutory income tax rate 21.0 % 21.0 % 21.0 % Effects of: State and local taxes 4.0 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 operations 0.3 0.2 0.4 Non-deductibles/Deductible dividend 0.9 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 rate 22.6 % 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, 2024 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: 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, 2024 2023 2022 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 |
Shareholders' Equity (Tables)
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 benefits Cash flow hedge Total 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 income 7,639 1,082 13,759 22,480 Amounts reclassified from accumulated other comprehensive loss — 24 (5,505) (5,481) Net current-period other comprehensive income 7,639 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, 2024 2023 2022 Pre-Tax Amount Tax (Benefit) Expense Net Amount Pre-Tax Amount Tax Expense (Benefit) Net Amount Pre-Tax Amount Tax Expense Net 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 hedge 5,958 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, 2024 2023 2022 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 |
Share - Based Compensation (Tab
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, 2024 2023 2022 SARs $ 3,448 $ 2,785 $ 3,284 Performance shares 4,232 5,302 4,549 Restricted stock and RSUs 5,264 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, 2024 Average Expected Period of Expected Recognition (Years) SARs $ 5,113 2.6 Performance shares 6,415 1.7 Restricted stock and RSUs 3,050 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: 2024 2023 2022 Expected life, in years 6.0 6.2 6.4 Risk free interest rate 4.1 % 2.9 % 1.0 % Dividend yield 1.0 % 1.3 % 1.5 % Volatility 37.0 % 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 : Shares Weighted-Average Year Ended June 30, 2024 (Shares in thousands) Outstanding, beginning of year 816 $ 70.11 Granted 102 143.72 Exercised (188) 61.25 Forfeited (18) 83.67 Outstanding, end of year 712 $ 82.65 Exercisable at end of year 472 $ 65.93 Expected to vest at end of year 706 $ 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 year 159 $ 66.74 Awarded 42 99.79 Vested (100) 53.50 Non-vested, end of year 101 $ 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 year 143 $ 83.35 Granted 29 151.53 Forfeitures (4) 84.96 Vested (38) 81.50 Non-vested, end of year 130 $ 99.05 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Lease, Cost | Information related to operating leases is as follows: June 30, 2024 2023 Operating lease assets, net $ 133,289 $ 100,677 Operating lease liabilities Other current liabilities $ 33,466 $ 31,173 Other liabilities 104,143 72,704 Total operating lease liabilities $ 137,609 $ 103,877 June 30, 2024 2023 Weighted average remaining lease term (years) 5.5 4.9 Weighted average incremental borrowing rate 4.51 % 3.67 % Year Ended June 30, 2024 2023 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 Year Maturity of Operating Lease Liabilities 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 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment financial information | Segment Financial Information Service Center Engineered Solutions Total Year Ended June 30, 2024 Net sales $ 3,056,555 $ 1,422,851 $ 4,479,406 Operating income for reportable segments 400,182 206,844 607,026 Assets used in the business 1,865,269 1,086,641 2,951,910 Depreciation and amortization of property 17,700 5,731 23,431 Capital expenditures 18,040 6,824 24,864 Year Ended June 30, 2023 Net sales $ 2,966,842 $ 1,445,952 $ 4,412,794 Operating income for reportable segments 373,439 203,404 576,843 Assets used in the business 1,736,393 1,006,939 2,743,332 Depreciation and amortization of property 17,932 4,334 22,266 Capital expenditures 15,390 11,086 26,476 Year Ended June 30, 2022 Net sales $ 2,565,604 $ 1,245,072 $ 3,810,676 Operating income for reportable segments 301,881 156,644 458,525 Assets used in the business 1,455,293 997,295 2,452,588 Depreciation and amortization of property 17,509 4,167 21,676 Capital expenditures 14,486 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 Year Ended June 30, 2024 2023 2022 Operating income for reportable segments $ 607,026 $ 576,843 $ 458,525 Adjustments for: Intangible amortization — Service Center Based Distribution 3,188 2,857 3,435 Intangible amortization — Engineered Solutions 25,735 27,948 28,444 Corporate and other expense, net 82,280 72,887 68,788 Total 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 |
Information by geographic area | June 30, 2024 2023 Long-Lived Assets: United States $ 209,987 $ 176,025 Canada 26,436 29,817 Other Countries 15,393 9,876 Total $ 251,816 $ 215,718 |
Other Income, Net (Tables)
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, 2024 2023 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 (162) 22 Total other (income) expense, net $ (5,138) $ 1,701 $ 1,805 |
Business and Accounting Polic_3
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% | ||
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 |
Revenue Recognition Revenue R_3
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 |
Revenue Recognition Revenue R_4
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% | 9.60% | 9.90% |
Forest Products [Domain] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregated Revenue by Customer Industry, Percent | 9.20% | 9.10% | 8% |
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% | 4.50% | 4% |
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% | 100% | 100% |
Service Center Based Distribution Segment [Member] | General Industry [Domain] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregated Revenue by Customer Industry, Percent | 35% | 34% | 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% | 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% | 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% | 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% | 100% | 100% |
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% | 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% |
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% | 100% | 100% |
Revenue Recognition Revenue R_5
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% | 100% | 100% |
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% | 19.10% | 19.80% |
Specialty Flow Control [Domain] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregated Revenue by Product Line, Percent | 11% | 11.60% | 10.70% |
Service Center Based Distribution Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregated Revenue by Product Line, Percent | 100% | 100% | 100% |
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% | 0% | 0% |
Engineered Solutions Segment | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregated Revenue by Product Line, Percent | 100% | 100% | 100% |
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% |
Revenue Recognition Revenue R_6
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%) |
Business Combinations Textuals
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% | ||||||||
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% | ||||||||
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% | ||||||||
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 |
Inventories (Details)
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 |
Inventories Inventories Textual
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 |
Goodwill and Intangibles (Detai
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 |
Goodwill and Intangibles (Det_2
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 |
Goodwill and Intangibles (Det_3
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 |
Goodwill and Intangibles Textua
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 |
Debt Debt (Details)
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 |
Debt (Details 1)
Debt (Details 1) $ in Thousands | Jun. 30, 2024 USD ($) |
Debt Disclosure [Abstract] | |
2025 | $ 25,105 |
2026 | 0 |
2027 | 572,300 |
2028 | 0 |
2029 | $ 0 |
Debt Textuals (Details)
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% | |
Variable interest rate, SOFR plus margin | 8,000% | |
Revolving Credit Facility [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
VariableInterestRateLIBORPlusMargin | 5,500% | |
Variable interest rate, SOFR plus margin | 15,500% |
Derivatives Derivatives Textual
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 |
Fair Value Measurements (Detail
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 |
Income Taxes (Details)
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 |
Income Taxes (Details 1)
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 |
Income Taxes (Details 2)
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% | 21% | 21% |
State and local taxes | 4% | 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% | (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% |
Income Taxes (Details 3)
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 |
Income Taxes (Details 4)
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 |
Income Taxes Textuals (Details
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 |
Shareholders' Equity (Details)
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) |
Shareholders' Equity OCI (Detai
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 |
Shareholders' Equity Net Income
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 |
Shareholders' Equity Textuals (
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 |
Share - Based Compensation (Det
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 |
Share - Based Compensation (D_2
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 |
Share - Based Compensation (D_3
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% |
Dividend yield | 1% | 1.30% | 1.50% |
Volatility | 37% | 35.50% | 34.30% |
Per share fair value of SAR's and stock options granted during the year | $ 55.65 | $ 35.98 | $ 26.18 |
Share - Based Compensation (D_4
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 |
Share - Based Compensation (D_5
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 |
Share - Based Compensation (D_6
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 |
Share - Based Compensation Text
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 |
Leases (Details)
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 |
Leases (Details 1)
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 |
Leases Leases Textuals (Details
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 |
Segment Information (Details)
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 |
Segment Information (Details 1)
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 |
Segment Information (Details 2)
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 |
Segment Information Textuals (D
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 |
Other Income, Net (Details)
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 |
Subsequent Events Textuals (Det
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% | |
Business Combination, Consideration Transferred | $ 3,200 | |
Total Machine Solutions | ||
Subsequent Event [Line Items] | ||
Business Combination, Consideration Transferred | $ 6,500 |
Schedule II - Valuation and Q_2
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. Amounts represent uncollectible accounts charged off. |